Chapter 12

1. Chapter 12 Implementing Business/IT Solutions

2. Section 1 Developing Business Systems

3. II. The Systems Approach Uses a systems orientation to defining and solving problems and opportunities Problem Solving – there are specific steps in solving any problem Recognize/Define a Problem or Opportunity – recognize it exists Develop and Evaluate Alternative System Solutions – what are the different ways to solve this problem? Select the Best System Solution – decide which alternative is best Design the Selected System Solution – design the system for the chosen solution Implement and Evaluate the Success of the Designed System – put the solution into effect and monitor results for the outcome

4. II. The Systems Approach Systems Thinking

5. The Systems Development Life Cycle

6. Systems Development Lifecycle (SDLC) - Waterfall Development Methodology

7. VI. Systems Design The Prototyping Process

8. IV. Starting the Systems Development Process Systems development can be very costly, investigations are made to determine whether to proceed Feasibility Studies – identify needs, resources, costs, benefits Operational Feasibility – will the proposed system fit existing business environment and objectives? Technical Feasibility – degree to which current technical resources can be applied to the new system Human Factors Feasibility – assess the degree of approval/resistance to the new system

9. IV. Starting the Systems Development Process Economic Feasibility – the extent to which the proposed system will provide positive economic benefits to the organization Cost/Benefit Analysis – do the benefits justify the costs? Tangible Costs/Benefits – can be calculated/quantified (hardware, software, increase in payroll) Intangible Benefits – hard to calculate (customer approval, political feedback) Legal/Political Feasibility – what are the legal/political ramifications of the new system?

10. IV. Starting the Systems Development Process Feasibility Factors

11. Costs versus Benefits • Tangible costs and benefits can be quantified with a high degree of certainty • Example: decrease in operating costs • Intangible costs and benefits are harder to estimate • Example: improved customer service Cost/Benefit Analysis

12. Assess Financial Viability Net Present Value • PV = Cash flow amount • (1 + interest rate)n , where • interest rate = required return • n = number of years in future • NPV =  PV(future cash inflows) –  PV(future cash outflows)

13. Assess Financial Viability Return on Investment ROI = NPV PV(cash outflows) Generally, if NPV>=0, Project is OK If NPV < 0, Project is unacceptable

14. VI. Systems Design Create a new system to solve the problem/opportunity Prototyping – create working models of the proposed system The Prototyping Process – prototypes are developed quickly for trial by users to obtain user feedback User Interface Design – critical because the interface is the part of the systems closest to the user System Specifications – listing of elements that formalize the design

15. Tracking Tasks Using Gantt Chart Task Week 2 3 4 5 6 7 8 9 10 11 12 13

16. Tracking Tasks Using PERT Chart Go to Library 4 weeks Select and purchase book 1 week Skim book 3 weeks Write Phase One 2 weeks Go to Bookstore 4 weeks Write Phase Two 3 weeks Read book carefully 3 weeks

17. Section 2 Implementing Strategic Business Systems

18. II. Implementing New Systems May be difficult and time-consuming The Implementation Process

19. Performance • Cost • Reliability • Compatibility • Technology • Ergonomics • Connectivity • Scalability • Software • Support Hardware Evaluation Factors

20. Quality • Efficiency • Flexibility • Security • Connectivity • Maintenance • Documentation • Hardware Software Evaluation Factors

21. Performance • Systems development • Maintenance • Conversion • Training • Backup • Accessibility • Business Position • Hardware • Software IS Services Evaluation Factors

22. V. Other Implementation Activities Testing – testing and debugging are important, does the system work as it should? Data Conversion – new implementations often require replacing software and databases Documentation – an important means of communication, often overlooked Training – training users is vital, usually under-budgeted, and expensive

23. V. Other Implementation Activities System Conversion Strategies

24. V. Other Implementation Activities System Conversion Strategies – cutting over to the new system Parallel – most expensive but safest, run both systems until everyone is satisfied, then turn off old system Pilot – let only a select few users use the new system until they are happy, then implement the new system for everyone; best user representation can be selected for the trials Phased (Modular) – gradual conversion one module at a time, combines best of both direct and modular while minimizing risks Direct – simplest but most dangerous method, turn off the old system and turn on the new one

25. V. Other Implementation Activities Postimplementation Activities – Use and Maintenance – the longest and most costly phase of a system’s life; correct errors, improve performance, adapt to changes in the business environment Systems Maintenance – making changes to the system Corrective – fix errors Adaptive – adding new functionality Perfective – improve performance Preventative – reduce chances of future system failure Postimplementation Review – ensure the new system meets established business objectives