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part four: Building Information Systems and Information Systems Management

part four: Building Information Systems and Information Systems Management.

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part four: Building Information Systems and Information Systems Management

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  1. part four: Building Information Systems and Information Systems Management

  2. The section will address the issues such as how to evaluate the value of information systems, how to manage IT projects in business, how to enhance the information systems security and control, how to manage the information resource and infrastructure, and what is the CIO role?

  3. 1.The process of Building Information Systems

  4. System Development Life Cycle (SDLC) • A system development life cycle is a logical process by which systems analysts, software engineers, programmers, and end-users build information systems and computer applications to solve business problems and needs. It is sometimes called an application development life cycle. • A system development life cycle is a systematic and orderly approach to solving system problems.

  5. Planning System analysis System Evaluation System design System maintenance System implementation System Development Life Cycle (SDLC)

  6. System Development Life Cycle (SDLC) • Planning----identify the scope and boundary of the problem, and plan the development strategy and goals. • Analysis----study and analyze the problems, causes, and effects. Then, identify and analyze the requirements that must be fulfilled by any successful solution. • Design----Logical & Physical Specifications for Systems Solution • if necessary, design the solution—not all solution require design.

  7. System Development Life Cycle (SDLC) 4. Implementation----implementation the solution. • It is the most difficult step. It consists of installing the new system(or program), testing, training end users, making adjustments, and converting from old system. 5. Maintenance----provides a method to address changing hardware and software requirement. 6. Evaluation----the effectiveness of the new system.

  8. What is a Systems Analyst? • A systems analyst facilitates the study of the problems and needs of a business to determine how the business system and information technology can best solve the problems and accomplish improvements for the business. • Improved business processes; • Improved information systems; • New or improved computer applications

  9. What is a Systems Analyst? • A systems analyst is a business problem solver. • Business problems: • Situations, either real or anticipated, that require corrective action; • Opportunities to improve a situation despite the absence of complaints; • Directives to change a situation regardless of whether anyone has complained about the current situation.

  10. The Systems Analyst as a facilitator IT Vendors Steering committee User 1 Applications programmers User 2 System Analyst User N Network administrator Mgt/system owner Database administrator Interface design expert

  11. FEASIBILITY • TECHNICAL:Assess hardware, software, technical resources • ECONOMIC: Will benefits outweigh costs? • OPERATIONAL:Is solution desirable within existing conditions? INFORMATION REQUIREMENTS:Detailed statement of new system needs *

  12. SYSTEM DESIGN DETAILS HOW SYSTEM WILL MEET NEEDS: • LOGICAL DESIGN:Components, data as needed by applications • PHYSICAL DESIGN:Physical location of components and data *

  13. DESIGN SPECIFICATIONS • OUTPUT: Medium, content, timing • INPUT: Origins, flow, data entry • USER INTERFACE: Simplicity, efficiency, logic, feedback, errors • DATABASE DESIGN: Logical data relations, volume, speed requirements, file organization & design, record specifications • PROCESSING: Computations, program modules, required reports, timing of outputs • MANUAL PROCEDURES: What activities, who performs them, how, where *

  14. DESIGN SPECIFICATIONS • CONTROLS: Input, processing, output, procedural • SECURITY: Access controls, catastrophe plans, audit trails • DOCUMENTATION: Operations, systems, user • CONVERSION: Transfer files, initiate new procedures, select testing modules, cut over to new system • TRAINING: Select training techniques, develop training modules, identify training facilities *

  15. DESIGN SPECIFICATIONS • ORGANIZATIONAL CHANGES: Task redesign, job design, process design, organization structure design, reporting relationships *

  16. ROLE OF END USERS • USERS DRIVE SYSTEMS EFFORT • MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS • FUNCTIONAL USERS DRIVE SYSTEM NEEDS *

  17. COMPLETING SYSTEM DEVELOPMENT PROCESS • PROGRAMMING:Translating needs to program code • TESTING:Does system produce desired results? • CONVERSION: Changing from the old to the new *

  18. TESTING • UNIT TESTING:Tests each unit separately • SYSTEM TESTING:Do modules function as planned? • ACCEPTANCE TESTING:Final certification TEST PLAN:Preparations for tests to be performed *

  19. CONVERSION • PARALLEL:Old & new run same problems. Give same results? • DIRECT CUTOVER:Risky conversion to new system • PILOT:Introduce into one area. Does it work? Yes: introduce into other area • PHASED:Introduce in stages • CONVERSION PLAN:Schedule for conversion • DOCUMENTATION:Description of how system works *

  20. PRODUCTION & MAINTENANCE • PRODUCTION:Constant review by users & operators. Does it meet goals? • MAINTENANCE:Upkeep, update, corrections over time *

  21. Methods of IS Development • In-house Development • Systems Lifecycle Method • Prototyping Method • Application Software Package • Outsourcing

  22. Methods of IS DevelopmentM1. System Lifecycle method IS Planning IS Analysis IS Design Programming debugging Implementation Testing Convert to new system Maintenance & Evaluation

  23. Project proposal report System proposal report Design specifications Program codes Sys. performance tests Post-impl. audit OPERATIONS Milestone 2 Design solution decision Milestone 3 Design specification Sign-off Milestone 4 Maintenance decision Milestone 1 Project initiation Year1 M1. System Lifecycle method END PRODUCTS STAGES Project definition Systems study Design Programming, Test, debug conversion Post- implementation Year2 3-8 Year span

  24. M1. System Lifecycle method • A system lifecycle method is necessary for large, complex systems & projects, practically when a suitable application package is not available.

  25. CASE: Taste of IT • In 1995, the treasure stand-alone operation for the storage and transport through the list to receive input into the computer, so that the total number of the day Wu-know list.In 1996 established a DOS platform with telephone lines connected to the "original" internal network, so that you can pass some of the country's internal information.The end of 1997, commissioned by the British Tai Naite Beijing has developed systems to spend 10 million yuan. System analysis - design - development (six months). Implementation of system implementation, but also met the new requirements, to do the patch, the development of new applications.

  26. CASE: Taste of IT • In August 1998, for the information system of the second stage - the report is automatically generated to solve internal and customer information inquiries and information service issues.The beginning of 1999 the third phase of information technology ---- the financial system construction, to solve the cost and profit accounting.In 2000, information systems development:

  27. CASE: Taste of IT • Questions: • Why Baogong Chuyun Company used in-house development method to build their information systems? • What advantage and disadvantage are this method?

  28. M1. System Lifecycle method • Can be costly, time consuming • May encourage freezing specifications early in development • May not suitable for small, less structured systems

  29. M2. Prototyping Method • PROTOTYPE: Preliminary working version of Information System for Demonstration, Evaluation Purposes • Prototyping Method is a process of building experimental systems to demonstrate, evaluation approach, users refine needs • ITERATIVE PROCESS • Best for design of end-user interface: How End-user Interacts With System

  30. STEPS IN PROTOTYPING • Identify user’s requirements • Development prototype • Use prototype • Revise & enhance prototype *

  31. M3. Application Software Packages • Application Software Packages: Rewritten, precoded application software, commercially available for sale or lease. • Geared to common requirements • CUSTOMIZATION: Modification of Software to Meet Organization’s Needs • MUST WEIGH COSTS / BENEFITS

  32. CUSTOMIZATION • Modifying software package to meet organization’s unique requirements without destroying integrity of package. RAISES DEVELOPMENT COSTS *

  33. Effects of Customizing Software on Total Implementation Costs 10 8 6 TOTAL IMPLEMENTATION COSTS 4 2 0 0.5 1 2 3 4 5 % LINES OF CODE CONVERTED

  34. SELECTED EXAMPLES OF APPLICATION PROGRAMS ENTERPRISE RESOURCE PLANNING; MATERIAL REQUIREMENT PLANNING;MNAUFACTURING RESOURCE PLANNING;E-COMMERCE, CUSTOMER RELATIONSIP MANAGEMENT; BUSINESS INTELLIGENCE;ACCOUNTS PAYABLE/RECEIVABLE;ARCHITECTURALDESIGN; BANKING;SUPPLY CHAIN MANAGEMENT; COMPUTER-AIDED-DESIGN; DOCUMENT IMAGING; TRAVEL AGENCY;E-MAIL; FINANCIAL CONTROL; FORECASTING; FORMS DESIGN; GRAPHICS;HOTEL MANAGEMENT; HUMAN RESOURCES; INSTALLMENT LOANS;INVENTORY CONTROL; JOB COSTING/SCHEDULING; LIFE INSURANCE; HOTEL MANAGEMENT SYSTEM; MATHEMATICAL / STATISTICAL MODELING; ORDER ENTRY; PAYROLL; PROCESS CONTROL; REAL ESTATE MANAGEMENT;SALES & DISTRIBUTION; SAVINGS SYSTEMS; STOCK MANAGEMENT; TAX ACCOUNTING; UTILITY CONTROLS;WORD PROCESSING *

  35. USE APPLICATION PACKAGES 1. Where Functions are Common to many Companies 2. Where In-House Resources are Scarce 3. The application package is available

  36. Requirement For Proposal(RFP) Detailed list of Questions Submitted to Vendors to Determine if Vendor’s Product meets Organization’s Specific Requirements *

  37. Package evaluation criteria • Functions included • Flexibility • User friendliness • Hardware & Software resources needed • Database/file characteristics • Installation efforts • Maintenance available • Documentation • Vendor quality • COST

  38. Application Package Development Cycle • SYSTEMS ANALYSIS • SYSTEMS DESIGN • PROGRAMMING, TESTING, CONVERSION • PRODUCTION & MAINTENANCE & EVALUATION

  39. Application Package Development : systems analysis • Identify Problem; User Requirements; Alternatives; Vendors review • Package vs. In-House Development • Evaluate Packages • Select Package

  40. Application Package Development : systems design • Tailor Package Features • Train Technical Staff • Prepare Physical Design • Customize Package Design • Business Process & Organizational Procedures

  41. Application Package Development : PROGRAMMING, TESTING, CONVERSION: • Install Package • Implement Modifications • Design Program Interfaces • Documentation • Convert to Package System • Test System • Train Users on Package *

  42. Application Package Development : PRODUCTION & MAINTENANCE: • Correct Problems • Evaluation • Install Updates, Enhancements to Package *

  43. Sophisticated information systems baking——Shanghai, a food information system implementation case

  44. CASE: Cisco ERP Implementation • Questions • What factors had made the difference between success and failure of the Cisco ERP? • How important and what limitation is the ERP to the overall architecture?

  45. M4. OUTSOURCING CONTRACTING: • COMPUTER CENTER OPERATIONS • TELECOMMUNICATIONS NETWORKS • APPLICATION DEVELOPMENT TO EXTERNAL VENDORS *

  46. Type of IT Activity Outsourced • Data-center operations 78% • Application maintenance 52% • Application development 44% • Network management 56% • User support 56% • Telecommunications 12% • Prior Outsourcing ? • Yes---- 24% No----76%

  47. CASE:Shanghai commercial value-added network* • Shanghai is the commercial value-added network five key projects of Shanghai Information Port • Shanghai Shanghai commercial value-added network is an important part of the Golden Card Project • One for circulation, finance and other sectors of the information network of professional services, is currently popular and rapidly growing international data acquisition, processing, value-added processing, information dissemination is an effective mechanism for network services. *Shanghai Shared Data Network Co., Ltd.

  48. The 1st VAN in China Internet Connection Banks Gov. Offices PSTN Payment EDI OLAP ISDN DDN EOS Factories Retailers Intranet Information F R Database E-Commerce Homes Carriers Other Clusters

  49. The company's business Electronic Commerce & Intranet Data processing services Membership Card Business Electronic Data Interchange (EDI) Joint management by the credit card network

  50. Main Merchant • Shanghai Lianhua Supermarket Co., Ltd.（SLHS） • On Haiehuode - in exchange Supermarket Co., Ltd.（AHOLD） • Shanghai First Department Store Co., Ltd. （No.1 DS） • Shanghai Soap Co., Ltd.（No.1 DS） • Shanghai Pudong Yaohan Co., Ltd.（YUOHAI） • Shanghai Lianhua Supermarket Co., Ltd.（LHC） • Convenient commercial Co., Ltd. Shanghai Hong Liang （LHHL） • Co., Ltd. Shanghai Valley convenience store（ LHYG)

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