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ISM 6021 MIS Implementing IS

12. Chapter. ISM 6021 MIS Implementing IS. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems. SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE. Linking Information Systems to the Business Plan. Information systems plan

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ISM 6021 MIS Implementing IS

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  1. 12 Chapter ISM 6021 MIS Implementing IS

  2. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Linking Information Systems to the Business Plan • Information systems plan • What form of planning is correct for IS? • Should ISP be formal or informal? • How does environment affect the planning methodology for ISP? • Who should be involved in ISP?

  3. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements • Enterprise Analysis (Business Systems • Planning) • Analysis of organization-wide information requirements • Identifies key entities and attributes

  4. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-1 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Process/Data Class Matrix

  5. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements • Strategic Analysis or Critical Success • Factors • Small number of easily identifiable operational goals • Shaped by industry, firm, manager, and broader environment • Used to determine information requirements of organization

  6. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-2 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Using CSFs to Develop Systems

  7. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Systems Development and Organizational Change • Automation: Speeding up performance • Rationalization of procedures: Streamlining of operating procedures • Business process reengineering: Radical design of business processes • Paradigm shift: Radical reconceptualization

  8. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-3 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Organizational Change Carries Risks and Rewards

  9. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Redesigning Mortgage Processing in the United States Figure 12-4a

  10. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Redesigning Mortgage Processing in the United States Figure 12-4b

  11. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Steps in Effective Reengineering • What steps should be taken in reengineering of business processes? • develop broad strategic vision • measure performance of existing processes as baseline • IT should be allowed to influence process design from start • IT infrastructure should be able to support business process changes

  12. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems OVERVIEW OF SYSTEMS DEVELOPMENT Overview • What are - • Systems development • Systems analysis

  13. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-5 BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) The Systems Development Process

  14. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Traditional Systems Lifecycle • Systems lifecycle • Traditional methodology for developing information system • Partitions systems development process into formal stages that must be completed sequentially

  15. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Prototyping • Prototyping • Process of building experimental system quickly and inexpensively for demonstration and evaluation • Prototype • Preliminary working version of information system for demonstration and evaluation

  16. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages • Application software packages • Set of prewritten, precoded application software programs commercially available for sale or lease • Customization • Modification of software package to meet organization’s unique requirements without destroying the software’s integrity

  17. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-8 ALTERNATIVE SYSTEM-BUILDING APPROACHES The Effects of Customizing a Software Package on Total Implementation Costs

  18. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages • Request for Proposal (RFP) • Detailed list of questions submitted to vendors of software or other services • Determines how well vendor’s product can meet organization’s specific requirements

  19. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Development • What is End-User Development? • Development of information systems by end users with little or no formal assistance from technical specialists • Allows users to specify their own business needs

  20. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-9 ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Versus System Lifecycle Development

  21. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Outsourcing What is Outsourcing? Under what conditions should IT be outsourced? What are advantages and limitations of outsourcing?

  22. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Object-Oriented Software Development • What is Object-Oriented Development? • What are the advantages / disadvantages of OOD and OOP? • Approach for software development • De-emphasizes procedures • Shifts focus from modeling business processes and data to combining data and procedures to create objects

  23. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Rapid Application Development (RAD) • What is RAD? • What are some approaches to RAD? • Process for developing systems in short time period • Uses prototyping, fourth-generation tools, and close teamwork

  24. 13 Chapter Measuring the Value of Systems

  25. Measuring Systems What factors must be considered when measuring the value of systems? What methods are available for capital budgeting and investment analysis?

  26. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Case Example: Primrose, Mendelson, and Hansen • The Payback Method • Measure of time required to pay back the initial investment on a project • Accounting Rate of Return on Investment • (ROI) • Approximates the accounting income earned by the investment

  27. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Case Example: Primrose, Mendelson, and Hansen • Present value • Value of a payment or stream of payments to be received in dollars • Net present value • Amount of money an investment is worth

  28. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Case Example: Primrose, Mendelson, and Hansen • Cost-benefit ratio • Calculates returns from capital expenditure • Profitability index • Compares profitability of alternative investments by dividing the present value of total cash inflow by initial cost

  29. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Case Example: Primrose, Mendelson, and Hansen • Internal Rate of Return (IRR) • Rate of return or profit an investment is expected to earn • Results of the Capital Budgeting • Analysis • Cash flow positive over the time period and returns more benefits than it costs

  30. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Strategic Considerations • Portfolio Analysis • Analysis of portfolio of potential applications within a firm • Determines risks and benefits • Selects among alternatives for information systems

  31. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Strategic Considerations • Scoring Models • Method for deciding among alternative systems based on a system of ratings • Real Options Pricing Models • Models for evaluating information technology investments with uncertain returns

  32. Figure 13-3 Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS A System Portfolio

  33. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Strategic Considerations • Knowledge Value–Added Approach • Focuses on knowledge input into a business process • Determines costs and benefits of changes in business processes from new information systems

  34. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Information Technology Investments and Productivity • Productivity • Measure of firm’s efficiency in converting inputs to outputs • Information Technology • Reduces cost • Increases quality of products and services

  35. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Information System Problem Areas • System failure • Information system does not perform as expected, is not operational at a specified time • Poor design, inaccurate data, excessive expenditure, breakdown in operations

  36. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Causes of Implementation Success and Failure What are the causes of IS project failures? What steps can management take to insure success of IS projects?

  37. Figure 13-5 Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Factors in Information System Success or Failure

  38. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Level of Complexity and Risk • Project size:Larger project has greater risk • Project structure:Clear and straightforward requirements help define outputs and processes • Experience with technology:Project risk rises if project team and information system staff lack required technical expertise

  39. Figure 13-6 Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Consequences of Poor Project Management

  40. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Change Management Challenges for Enterprise Applications, Business Process Reengineering (BPR), and Mergers and Acquisitions • System Challenges of Mergers and • Acquisitions • Integrating systems • Organizational characteristics • Information technology infrastructures

  41. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE The Challenge of Implementing Global Systems • How are global IS problems different? • Identify some global problems impacting the use of IS. • Transborder data flow: Movement of information across international boundaries in any form • Technology Hurdles:Lack of standards and connectivity in hardware, software, and telecommunications

  42. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE The Challenge of Implementing Global Systems • Local User Resistance to Global Systems:Difficult to convince local managers to change their business processes

  43. Figure 13-7 Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change MANAGING IMPLEMENTATION Formal planning and control tools help to manage information systems projects successfully

  44. Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change MANAGING IMPLEMENTATION Managing Global Implementations • Creating a Global Technology • Infrastructure • Build international private network • Rely on value added network service • Use Internet technology • Build global intranets • Use Virtual Private Networks

  45. 14 Chapter IS Security & Control

  46. Essentials of Management Information Systems Chapter 14 Information Systems Security and Control • Why are information systems so vulnerable to destruction, error, abuse, and system quality problems? • What types of controls are available for information systems? • What special measures must be taken to ensure the reliability, availability and security of electronic commerce and digital business processes?

  47. Essentials of Management Information Systems Chapter 14 Information Systems Security and Control SYSTEM VULNERABILITY AND ABUSE Why Systems are Vulnerable • Advances in telecommunications and computer software • Unauthorized access, abuse, or fraud • Hackers • Denial of service attack • Computer virus

  48. Figure 14-1 Essentials of Management Information Systems Chapter 14 Information Systems Security and Control SYSTEM VULNERABILITY AND ABUSE Telecommunication Network Vulnerabilities

  49. Essentials of Management Information Systems Chapter 14 Information Systems Security and Control SYSTEM VULNERABILITY AND ABUSE Concerns for System Builders and Users • Disaster • Destroys computer hardware, programs, data files, and other equipment • Security • Prevents unauthorized access, alteration, theft, or physical damage

  50. Essentials of Management Information Systems Chapter 14 Information Systems Security and Control SYSTEM VULNERABILITY AND ABUSE System Quality Problems: Software and Data • Bugs • Program code defects or errors • Maintenance Nightmare • Maintenance costs high due to organizational change, software complexity, and faulty system analysis and design

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