Information Systems Development MIS331

Information Systems DevelopmentMIS331 Focus on System Design From “What” to “How” MIS331

Agenda • Geometric Truth about Information Systems • Design Strategies • Assessing feasibility of design alternatives • Benefits and costs • tangibles and intangibles • Risk • Resistance MIS331

Now Now Now Now Now Cheap Right Cheap Cheap Cheap Right Right Right Cheap Right The “Balancing” Act (pick any 2) MIS331

Design Strategies • Generating alternatives • The one alternative that is always available is to do nothing. • many non-technology issues should be addressed prior to selection of an automated solution. • standardized policies/procedures • process re-engineering • functional restructuring MIS331

Fixing Things Early • The cost of fixing a mistake made in one phase of the life cycle grows exponentially with each additional life cycle phase in which it goes undiscovered. Dollars Time MIS331

Forces Driving the Use of Vendors in Software Development IT for competitive advantage New class of applications Economics Smaller IS organizations Shortage of the “right kind” of IS professionals Missing skill base MIS331

Feasible Solutions • Defined: • a solution which effectively solves the problem intended to be solved without creating any problems that previously did not exist. • If a solution or alternative is not feasible then it is not a solution. • There are a multitude of solutions, many of them are feasible, and a very few are implementable. MIS331

Assessing Feasibility • Economic • financial benefits and costs • “Can we afford to do this?” • “Can we afford not to do this?” • focus is on both tangible and intangible items • Technical • availability of technology • “Does the technology (HW & SW) exist to do this?” MIS331

Assessing Feasibility • Operational • focus on the operational/organizational changes • “Will this make us better?” • “What changes will this make to our organization?” • “How long will this take to do?” • Human factors • manpower, expertise, labor sources • “Do we have or can we get the personnel to do this?” • Legal/Political • stakeholder and regulatory analysis MIS331

Economic Feasibility • Benefits • tangible benefits • can be measured in dollars with certainty • error reduction • increased sales or revenue • new market shares • cost reductions or savings • intangible benefits • cannot be easily measured in dollars with certainty • increased employee morale • customer satisfaction • competitive or strategic advantage MIS331

Economic Feasibility • Costs • tangible • can be measured in dollars and with certainty • hardware/software • labor • training • intangible NOT! MIS331

Intangible Costs • They just don’t exist • If you can’t quantify the cost somehow then you can’t justify the investment • If you’re wrong about the intangible benefits…So What? • If your wrong about the “intangible costs”…Then What? So…how do we make tangible that which is intangible? We Guess MIS331

“Intangible” Costs Example: • We estimate a 60% probability of a 10% reduction in employee morale during the first six months of service • the problem is we don’t know what 10% reduction in employee morale is worth, but… • we do know how much 100% reduction in employee morale is worth... • how about 100% of revenues? 100% reduction in morale = 100% of revenues 100% reduction in morale = $20,000,000 10% reduction in morale = $2,000,000 .6(10% reduction in morale) = $1,200,000 MIS331

Risk factors • Project Size • Number of people involved • Length of development • Project Structure • New system versus redesign • Degree of organizational change required • User perceptions • Management commitment • User involvement MIS331

Risk Factors • Analysts • Familiarity with required technology • Familiarity with project type • Familiarity with business environment • Users • Familiarity with development process • Familiarity with system objectives MIS331

Next Classes ... • Group A’s presentation on Tuesday, 3/18 • Chapter 7 (second half) for Thursday, 3/20 MIS331

Information Systems Development MIS331