Management Information Systems:

Managing the Digital Firm Learning Objectives

Sixteenth Edition 8.1 How does building new systems produce organizational
change?
8.2 What are the core activities in the systems development
process?
Lecture 8
8.3 What are the principal methodologies for modeling and
Building Information Systems designing systems?
8.4 What are alternative methods for building information
systems?
8.5 What are new approaches for system building in the
digital firm era?

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Figure 13.1 Organizational Change

Carries Risks and Rewards

How does building new systems

DISCUSSION
produce organizational change?

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Systems Development and Systems Development and
Organizational Change (1 of 2) Organizational Change (2 of 2)
• IT-enabled organizational change • Business process redesign
• Automation – Analyze, simplify, and redesign business processes
– Increases efficiency – Reorganize workflow, combine steps, eliminate
repetition
– Replaces manual tasks
• Paradigm shifts
• Rationalization of procedures
– Rethink nature of business
– Streamlines standard operating procedures
– Define new business model
– Often found in programs for making continuous quality
improvements – Change nature of organization

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Business Process Redesign Figure 13.2 As-is Business Process

• Business process management (BPM) for Purchasing a Book from a
– Variety of tools, methodologies to analyze, design, Physical Bookstore
optimize processes
– Used by firms to manage business process redesign
• Steps in BPM
1. Identify processes for change
2. Analyze existing processes
3. Design the new process
4. Implement the new process
5. Continuous measurement

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Figure 13.3 Redesigned Process for
Purchasing a Book Online

What are the core activities in

DISCUSSION the systems development
process?

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Systems Development Figure 13.4 The Systems

• Activities that go into producing an information system Development Process
solution to an organizational problem or opportunity
– Systems analysis
– Systems design
– Programming
– Testing
– Conversion
– Production and maintenance

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Systems Analysis Systems Design
• Analysis of problem to be solved by new system • Describes system specifications that will deliver functions
– Defining the problem identified during systems analysis
– Identifying causes • Should address all managerial, organizational, and
– Specifying solutions technological components of system solution
– Identifying information requirements • Role of end users
• Feasibility study – User information requirements drive system building
• Systems proposal report – Users must have sufficient control over design process
to ensure system reflects their business priorities and
• Information requirements information needs
– Faulty requirements analysis is a leading cause of – Insufficient user involvement in design effort is major
systems failure and high systems development costs cause of system failure

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Completing the Systems Completing the Systems

Development Process (1 of 3) Development Process (2 of 3)
• Programming • Conversion
– System specifications from design stage are translated – Process of changing from old system to new system
into software program code – Four main strategies
• Testing  Parallel strategy
– Ensures system produces right results  Direct cutover
– Unit testing: Tests each program in system separately  Pilot study
– System testing: Test functioning of system as a whole  Phased approach
– Acceptance testing: Makes sure system is ready to be – Requires end-user training
used in production setting – Finalization of detailed documentation showing how
– Test plan: All preparations for series of tests system works from technical and end-user standpoint
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 Conversion strategies  Conversion strategies
Direct Parallel Pilot Phased
conversion conversion conversion conversion
 Turn off old  New and old  Convert to  Incremental
system systems run new system approach to
 Turn on new simultaneousl in single conversion
system y location  Bring in new
 Direct is  Until end  Once system as a
least users are complete in series of
expensive satisfied. pilot location, functional
method  Low risk new system components
 Riskiest  Highest cost in installed in  Lower risk
method method multiple  Takes the most
locations time

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Completing the Systems

Development Process (3 of 3)
• Production and maintenance
– System reviewed to determine if revisions needed
What are the principal
– May include post-implementation audit document
methodologies for modeling
– Maintenance and designing systems?
 Changes in hardware, software, documentation, or procedures DISCUSSION
to a production system to correct errors, meet new - Structured Methodologies
requirements, or improve processing efficiency
- Object-Oriented
Methodologies

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 Structured Methodologies (1 of 2)
• Structured: Techniques are step-by-step, progressive
• Process-oriented: Focusing on modeling processes or
actions that manipulate data
• Separate data from processes
• Data flow diagram (DFD)
– Represents system’s component processes and flow of
data between them
– Logical graphic model of information flow

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Sơ đồ dòng chảy dữ liệu (DFD_Data Flow Diagram)

Data-Flow Diagramming Definitions Business flow Diagram Hệ thống

DFD ở mức ngữ cảnh
(BFD) A

• Context Diagram
– A data-flow diagram (DFD) of the scope of an
organizational system that shows the system Chức năng Chức năng DFD ở mức 0
boundaries, external entities that interact with the 0.B 0.C

system and the major information flows between the

entities and the system
Hoạt động Hoạt động
B.1 B.2 DFD ở mức 1
• Level-O Diagram
– A data-flow diagram (DFD) that represents a system’s
major processes, data flows, and data stores at a Hoạt động Hoạt động Hoạt động
C.1 C.2 C.3
higher level

5.23
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Business Flow Diagram (BFD)
Sơ đồ ngữ cảnh (Context Diagram)

Ví dụ: Sơ đồ BFD

Quản lý thuê băng đĩa

Cấp thẻ Cho Nhận Tạo báo Gửi thư

thuê thuê trả băng cáo khuyến
băng đĩa đĩa mãi
Bộ phận
quản lý

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Sơ đồ dòng chảy dữ liệu (DFD_Data Flow Diagram)

Figure 13.6 Data Flow Diagram for
Mail-in University Registration
System

DFD ở mức nào?

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Object-Oriented Development (1 of 2) Figure 13.8 Class and Inheritance
• Object
– Basic unit of systems analysis and design
– Combines data and the processes that operate on those
data
– Data in object can be accessed only by operations
associated with that object
• Object-oriented modeling
– Based on concepts of class and inheritance
– Objects belong to a certain class and have features of that
class
– May inherit structures and behaviors of a more general,
ancestor class

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Object-Oriented Development (2 of 2) Computer-Aided Software Engineering

• More iterative and incremental than traditional structured • Software tools to automate development and reduce
development repetitive work, including:
– Systems analysis: Interactions between system and – Graphics facilities for producing charts and diagrams
users analyzed to identify objects – Screen and report generators, reporting facilities
– Design phase: Describes how objects will behave and – Analysis and checking tools
interact; grouped into classes, subclasses, and – Data dictionaries
hierarchies – Code and documentation generators
– Implementation: Some classes may be reused from
existing library of classes, others created or inherited • Support iterative design by automating revisions and
changes and providing prototyping facilities
• Objects are reusable
• Require organizational discipline to be used effectively
– Object-oriented development can potentially reduce
time and cost of development
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 Some methods for building information systems
• Traditional Systems Life Cycle
• Prototyping
• End-user development

What are the alternative • Application Software Packages

DISCUSSION methods for building • Outsourcing
information systems

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Traditional Systems Life Cycle Figure 13.9 The Traditional Systems

• Oldest method for building information systems Development Life Cycle
• Phased approach
– Development divided into formal stages
– “Waterfall” approach: One stage finishes before next
stage begins
• Formal division of labor between end users and
information systems specialists
• Emphasizes formal specifications and paperwork
• Still used for building large complex systems
• Can be costly, time-consuming, and inflexible
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Prototyping (1 of 2) Figure 13.10 The Prototyping Process
• Building experimental system rapidly and inexpensively for
end users to evaluate
• Prototype: Working but preliminary version of information
system
– Approved prototype serves as template for final system
• Steps in prototyping
– Identify user requirements
– Develop initial prototype
– Use prototype
– Revise and enhance prototype

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Prototyping (2 of 2) End-User Development (1 of 2)

• Advantages of prototyping • Allows end users to develop simple information systems
– Useful if some uncertainty in requirements or design with little or no help from technical specialists
solutions • Reduces time and steps required to produce finished
– Often used for end-user interface design application
– More likely to fulfill end-user requirements • Tools include
• Disadvantages – User friendly query languages and reporting
– May gloss over essential steps – PC software tools
– May not accommodate large quantities of data or large
number of users
 May not undergo full testing or documentation

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End-User Development (2 of 2) Application Software Packages and
• Advantages Cloud Software Services
– More rapid completion of projects • Application software packages and cloud software services
– High level of user involvement and satisfaction – Save time and money
– Many packages offer customization features
• Disadvantages
• Evaluation criteria for systems analysis include:
– Not designed for processing-intensive applications
– Functions provided, flexibility, user friendliness, required
– Inadequate management and control, testing, resources, database requirements, installation and maintenance
documentation efforts, documentation, vendor quality, and cost
– Loss of control over data • Request for Proposal (RFP)
• Managing end-user development – Detailed list of questions submitted to packaged-software vendors
– Used to evaluate alternative software packages
– Require cost-justification of end-user system projects
– Establish hardware, software, and quality standards
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Outsourcing (1 of 2) Outsourcing (2 of 2)
• Several types • Advantages
– Cloud and SaaS providers – Allows organization flexibility in IT needs
 Subscribing companies use software and computer • Disadvantages
hardware provided by vendors
– Hidden costs, for example:
– External vendors
 Identifying and selecting vendor
 Hired to design, create software
 Transitioning to vendor
 Domestic outsourcing
– Opening up proprietary business processes to third
– Driven by firm’s need for additional skills, party
resources, assets
 Offshore outsourcing
– Driven by cost-savings

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 Rapid Application Development (RAD),
Agile Development, and DevOps
• Rapid application development (RAD)
– Process of creating workable systems in a very short period of
time
What are new approaches for • Joint application design (JAD)
DISCUSSION system-building in the digital – Used to accelerate generation of information requirements and to
firm era? develop initial systems design
• Agile development
– Focuses on rapid delivery of working software by breaking large
project into several small subprojects
• DevOps
– Builds on Agile development principles as an organizational
strategy
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