Systems Development and IT Adoption

1. Systems Development and IT Adoption Brian Mennecke

2. Change Becomes Constant • Change has become both pervasive and persistent • The pace of change has accelerated due to globalization of the economy and technological advancements • What’s driving this? • E-commerce

3. Managing Change • The ability to manage change is critical to the success of systems development. • The new or modified systems created during systems development will inevitably cause change. • Managing change requires the ability to recognize existing or potential problems.

4. All this leads to the need for change • Business Process Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.

5. BUSINESS PROCESSES Business Process Redesign Six principles for redesigning business processes: Organize business processes around outcomes, not tasks Assign those who use the output to perform the process Integrate information processing into the work that produces the information

6. BUSINESS PROCESSES Business Process Redesign Six principles for redesigning business processes: Create a virtual enterprise by treating geographically distributed resources as though they were centralized Link parallel activities instead of integrating their results Have the people who do the work make all the decisions, and let controls built into the system monitor the process

7. Four Key Wordsfor Reengineering • Fundamental • Radical • Dramatic • Process

8. Fundamental • Why do we do what we do? • Why do we do it the way we do?

9. Radical • Getting to the root of things: not making superficial changes or fiddling with what is already in place • Disregarding all existing structures and procedures and inventing completely new ways of accomplishing work

10. Dramatic • Reengineering isn’t about making marginal or incremental improvements but about achieving quantum leaps in performance • Dramatic improvement demands blowing up the old and replacing it with something new

11. Process • Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer

12. PROCESSES AND TECHNIQUES TO DELIVER INFORMATION SYSTEMS The Information Systems Life Cycle

13. PROCESSES AND TECHNIQUES TO DELIVER INFORMATION SYSTEMS The Information Systems Life Cycle • Definition Phase: • End user and systems analysts conduct analysis of current system and business processes • Analysis is: • Process-oriented • Data-oriented • Business case generated and solution chosen

14. PROCESSES AND TECHNIQUES TO DELIVER INFORMATION SYSTEMS The Information Systems Life Cycle • Construction Phase: • System designed, built, and tested • System logically described, then physically • Technology chosen • Programs, inputs, and outputs designed • Software programmed and tested • User acceptance testing conducted

15. PROCESSES AND TECHNIQUES TO DELIVER INFORMATION SYSTEMS The Information Systems Life Cycle • Implementation Phase: • Business managers and IS professionals install new system • Data and procedures from old system converted

16. Establishing Objectives for Systems Development • Systems development objectives should be supportive of, and aligned with, organizational goals. • There are four kinds of objectives that should be considered: • Performance objectives. • Cost objectives. • Control objectives. • Complexity objectives.

17. Systems Development Methodologies • A key factor in completing a successful systems development project is to adopt a methodology. • A methodology is a way of doing things.

18. Systems Development Methodologies • A systems development methodology is an assortment of rules and standards that govern the approach taken to all tasks associated with systems development. • In structured systems development the systems development tasks are broken down into small, easily managed parts.

19. Systems Development Methodologies • Top-down design means the entire system can be viewed as a layered set of descriptions, each of which could be decomposed, or “peeled back,” to reveal more detailed specifications for smaller parts of the system.

20. Structured Walkthrough • A structured walkthrough is a planned and pre-announced review of the progress of a particular project deliverable--a specific project outcome, a structure chart, or a human procedure. • The walkthrough helps team members review and evaluate the program of components of a structured project.

21. Implementation Phase – Installation Parallel Strategy Parallel Strategy Parallel Strategy Parallel Strategy

22. Trends in Systems Development

23. Operational and Rapid Prototyping • An operational prototype is a prototype that works. • A partially operational prototype has some components that are operational. • A rapid prototype allows system stakeholders and users to see a mockup of the subsystem much faster, which enables earlier changes.

24. Prototyping Methodology • Prototyping approach: • Takes advantage of availability of fourth generation procedural languages and relational database management systems • Enables creation of system (or part of system) more quickly, then revise after users have tried it • Is a type of evolutionary development process

25. Prototyping Methodology • Prototyping used as a replacement to traditional SDLC methodology: • Good when requirements hard to define • Good when system needed quickly • Impractical for large, complex applications

26. Prototyping Methodology Prototyping Advantages and Disadvantages • Advantages: • Only basic requirements needed at front end • Used to develop systems that radically change how work is done, so users can evaluate • Allows firms to explore use of new technology • Working system available for testing more quickly • Less strong top-down commitment needed at front end • Costs and benefits can be derived after experience with initial prototype • Initial user acceptance likely higher

27. Prototyping Methodology Prototyping Advantages and Disadvantages • Disadvantages: • End prototype often lacks security and control features • May not undergo as rigorous testing • Final documentation may be less complete • More difficult to manage user expectations

28. Prototyping Methodology Prototyping within an SDLC Process

29. PROTOTYPING METHODOLOGY Prototyping within an SDLC Process

30. Rapid Application Development (RAD) • Hybrid methodology – aspects of SDLC and prototyping • Goal is to produce a system in less than a year

31. Agile Software Development Discipline • a group of software development methodologies that promotes development iterations, open collaboration, and process adaptability throughout the life-cycle of the project.

32. Agile Software Development Discipline • 4 values: • Simplicity • Communication • Feedback • Courage • Agile techniques are typically focused on enabling quick changes in direction.

33. Customer satisfaction by rapid, continuous delivery of useful software Working software is delivered frequently (weeks rather than months) Working software is the principal measure of progress Even late changes in requirements are welcomed Close, daily cooperation between business people and developers Face-to-face conversation is the best form of communication (Co-location) Projects are built around motivated individuals, who should be trusted Continuous attention to technical excellence and good design Simplicity Self-organizing teams Regular adaptation to changing circumstances Agile Software Development Principles - The Agile Manifesto

34. Success Factors in Systems Development • Clearly defined organizational goals. • A sharp focus on, and clear understanding of, the most important business problems or opportunities. • Clearly defined systems development objectives. • Support of top-level managers. Involvement of users at all stages. • Use of a proven systems development method. • Creating or aligning incremental systems benefits with normal user work activities so as to provide incentives for effective system interaction. • Managing change. • A simple and straightforward design. • Good training programs for all involved.

35. Adoption/Diffusion Theories • To be successful, organizations must be positioned to accept the system and users much want to use the system • Organizational-level (macro) theories • Individual-level (micro) theories

36. Adoption/Diffusion Theories • Rogers (1995) (an ISU Prof at the time) offered a seminal model of diffusion. He proposed that members of a social system make innovation decisions during a 5-step process (The Innovation-Decision Process Theory): • Knowledge – the member(s) develops an awareness of an innovation and some idea of how it functions • Persuasion – the member(s) develops and formalizes an attitude (favorable or unfavorable) about the innovation • Decision – the member(s) engages in a process that lead to a decision about whether to adopt or reject the innovation • Implementation – an innovation is put into use, • Confirmation – the member(s) evaluates the innovation-decision. 

37. Adoption/Diffusion Theories • Roger’s (1995) Individual Innovativeness Theory proposes that individual adopters react differently to adoption decisions based on a stable trait or predisposition • Innovators (2.5%) - risk takers who take the initiative and time to experiment with new things and technologies • Early Adopters (13.5%) – individuals early in the adoption cycle who tend to be respected leaders and set the trend for adoption. • Early Majority (34%) – careful, safe, deliberate decision makers who are unwilling to risk time or other resources • Late Majority (34%) - suspect of or resistant to change. • Laggards (16%)- consistently resist change.

38. Adoption/Diffusion Theories • Rogers (2003) proposed that features of the technology are important in its acceptance. He offered the STORC model: • S - Simplicity vs. complexity of the innovation • T - Trialability, can users test or evaluate the technology and is there the ability to reverse the adoption decision • O - Observability. Can the innovation consequences be observed • R - Relative advantage. Is the innovation superior to what it is replacing. Is it less expensive, more efficient, cheaper? • C - Compatibility. Is the innovation compatible with the culture, organizational structure, requirements, etc.?

39. Adoption/Diffusion Theories • Rogers (1986) noted the ways in which adoption of Information and Communication Technologies (ICT) differs from other types of innovations. • A critical mass of adopters is needed to convince the majority of potential users about the utility of the technology • Regular and repeated use of the technology is necessary • ICT can be used in a variety of ways, and adoption is part of a process that involves evolution in use and application on the part of the adopters

40. Adoption/Diffusion Theories • The Technology Acceptance Model (TAM) predicts that two factors will determine whether users will accept and use a technology (Davis 1989): • Perceived usefulness (PU) - the degree to which a person believes that using a particular system would enhance his or her job performance • Perceived ease-of-use (PEOU) - the degree to which a person believes that using a particular system would be free from effort

41. Adoption/Diffusion Theories • TAM is a derivative of Ajzen and Fishbein’s theory of reasoned action (TRA), which has 3 components • behavioral intention (BI) • Attitude (A) • subjective norm (SN) BI = A +SN

42. Adoption/Diffusion Theories • TAM has been extended to other models, most notably the Unified Theory of Acceptance and Use of Technology (UTAUT). 4 variables are considered: • performance expectancy • effort expectancy • social influence • facilitating conditions)

43. Adoption/Diffusion Theories • Network externalities: network effects exist when a product or service’s value depends on the number of other users who own or use the product or service • A bandwagon effect • Positive feedback loops • Metcalfe's law • Reed’s law Michael L. Katzand & Carl Shapiro (1986). Technology Adoption in the Presence of Network Externalities. The Journal of Political Economy, 1986, vol. 94, no. 4

44. Adoption/Diffusion Theories • Metcalfe's law: the value of a telecommunications network is proportional to the square of the number of users of the system (n²).

45. Adoption/Diffusion Theories • Reed’s law: the utility of large social networks scales exponentially with the size of the network. • Suggests that Metcalf’s law underestimates the network effects because eventually the network effect of potential group membership dominates the overall economics of the system

46. Social Network Adoption • Forester’s Social Technographics ModelMany companies approach social computing as a list of technologies to be deployed as needed – a blog here, a podcast there – to achieve a marketing goal.  But a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for. Forrester categorizes social computing behaviors into a ladder with six levels of participation; we use the term "Social Technographics" to describe analyzing a population according to its participation in these levels. Brands, Web sites, and any other company pursuing social technologies should analyze their customers' Social Technographics first, and then create a social strategy based on that profile.

47. Social Network Adoption • Forester’s Social Technographics Model

48. Social Network Adoption • Andrew Chen’s Entrance and Exit Stages: Chen is a blogger who has some interesting insights on social media adoption and metrics • He cites several “fuzzy stages” that users follow in their use of social media • First experience • Soloing and single user value • Encountering some friends(?) • Hitting critical mass for social • Becoming a site elder

49. Social Network Adoption • These also represent potential exit points • First experience • Soloing and single user value • Encountering some friends(?) • Hitting critical mass for social • Becoming a site elder

50. Social Network Adoption • First experience • "I don't get what this site is about" • "This site is not for people like me" • "The colors/design/icons look weird" • "I already use X for that" • "I don't want to register"