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a system solution as we describe each step of building a new information system using the problem solving process 370 Part IV Building and Managing Systems ISBN 1 269 41688 X Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall

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Building Information,Systems and Managing C H A P T E R. STUDENT LEARNING OBJECTIVES, After completing this chapter you will be able to answer the. following questions, 1 What are the core problem solving steps for developing new. information systems, 2 What are the alternative methods for building information. 3 What are the principal methodologies for modeling and. designing systems, 4 How should information systems projects be selected and.
5 How should information systems projects be managed. ISBN 1 269 41688 X, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,C HAPTER O UTLINE. Chapter Opening Case A New Ordering System for Girl. Scout Cookies,11 1 Problem Solving and Systems Development. 11 2 Alternative Systems Building Approaches,11 3 Modeling and Designing Systems. 11 4 Project Management, Business Problem Solving Case JetBlue and WestJet A.
Tale of Two IS Projects,A NEW ORDERING SYSTEM FOR GIRL SCOUT COOKIES. Peanut Butter Petites Caramel deLites Thin Mints Girl Scout Cookies are. American favorites Cookie sales are a major source of funding for the Girl Scouts but. collecting counting and organizing the annual avalanche of cookie orders has become. a tremendous challenge, The Girl Scouts traditional cookie ordering process depends on mountains of. paperwork During the peak sales period in January each Girl Scout marked her sales. on an individual order card and turned the card in to the troop leader when she was. finished The troop leader would transfer the information onto a five part form and. give this form to a community volunteer who tabulated the orders From there the. orders data passed to a regional council headquarters where they would be batched. into final orders for the manufacturer ABC Cookies In addition to ordering Girl Scout. volunteers and troop members had to coordinate cookie deliveries from the manufac. turer to regional warehouses to local drop off sites to each scout and to the customers. themselves, The paperwork was overwhelming Order transactions changed hands too many. times creating many opportunities for error All the added columns multiple prices per. box and calculations that had to be made by different people all on a deadline. ISBN 1 269 41688 X,Michael Newman 2011 PhotoEdit Inc. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,370 Part IV Building and Managing Systems.
The Patriots Trail Girl Scout Council representing 65 communities and 18 000 Girl. Scouts in the greater Boston area was one of the first councils to tackle this problem The. council sells over 1 5 million boxes of cookies each year The council initially investigated. building a computerized system using Microsoft Access database management and. application development tools But this alternative would have cost 25 000 to develop and. would have taken at least three to four months to get the system up and running It was. too time consuming complex and expensive for the Girl Scouts In addition to Microsoft. Access software the Girl Scouts would have to purchase a server to run the system plus pay. for networking and Web site maintenance services so the system could be made available. on the Web, After consulting with management consultants Dovetail Associates the council selected. Intuit s QuickBase for Corporate Workgroups QuickBase is a hosted Web based software. service for small businesses and corporate workgroups It is especially well suited for. building simple database applications very quickly and does not require a great deal of. training to use QuickBase is customizable and designed to collect organize and share data. among teams in many different locations, A Dovetail consultant created a working QuickBase prototype with some basic. functions for the Girl Scouts within a few hours It only took two months to build test and. implement the entire system using this software The cost for developing the entire system. was a fraction of the Microsoft Access solution The Girl Scouts do not have to pay for any. hardware software or networking services because QuickBase runs everything for them. on its servers QuickBase costs about 500 per month for organizations with 100 users and. 1 500 per month for organizations with up to 500 users It is very easy to use. The QuickBase solution eliminates paperwork and calculation errors by providing a. clear central source of data for the entire council and easy online entry of cookie orders over. the Web Troop leaders collect the Girl Scouts order cards and enter them directly into the. QuickBase system using their home computers linked to the Web With a few mouse clicks. the council office consolidates the unit totals and transmits the orders electronically to ABC. Cookies As local orders come in local section leaders can track the data in real time. The Patriots Trail Girl Scouts also uses the QuickBase system to manage the Cookie. Cupboard warehouse where volunteers pick up their cookie orders Volunteers use the sys. tem to make reservations so that the warehouse can prepare the orders in advance saving. time and inventory management costs The trucking companies that deliver cookie ship. ments now receive their instructions electronically through QuickBase so that they can cre. ate efficient delivery schedules, Since its implementation the Patriots Trail QuickBase system has cut paperwork by. more than 90 percent reduced errors to 1 percent and reduced the time spent by volunteers. by 50 percent The old system used to take two months to tally the orders and determine. which Scouts should be rewarded for selling the most cookies Now that time has been cut. to 48 hours, Other Girl Scouts councils have implemented similar QuickBase systems to track. sales and achieved similar benefits The Girl Scouts of Greater Los Angeles serving Los. Angeles County and parts of Kern and San Bernardino counties has reduced the paperwork. associated with the sales for 3 5 million boxes of cookies annually by 95 percent. Sources Liz McCann Texting QuickBase Make Selling Girl Scout Cookies Easier in LA March 8 2010. www quickbase intuit com www girlscoutseasternmass org cookies accessed July 15 2011 and Girl Scouts Unite. Behind Order Tracking Customer Relationship Management May 2005. The experience of the Patriots Trail Girl Scout Council illustrates some of the steps. required to design and build new information systems It also illustrates some of the benefits. ISBN 1 269 41688 X, of a new system solution The Girl Scouts had an outdated manual paper based system for.
processing cookie orders that was excessively time consuming and error ridden The Girl. Scouts tried several alternative solutions before opting for a new ordering system based on. the QuickBase software service In this chapter we will examine the Girl Scouts search for. a system solution as we describe each step of building a new information system using the. problem solving process, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 371. 11 1 Problem Solving and Systems Development, We have already described the problem solving process and how it helps us analyze and. understand the role of information systems in business This problem solving process is. especially valuable when we need to build new systems A new information system is built. as a solution to a problem or set of problems the organization perceives it is facing The. problem may be one in which managers and employees believe that the business is not. performing as well as expected or it may come from the realization that the organization. should take advantage of new opportunities to perform more effectively. Let s apply this problem solving process to system building Figure 11 1 illustrates the. four steps we would need to take 1 define and understand the problem 2 develop alterna. tive solutions 3 choose the best solution and 4 implement the solution. Figure 11 1,Developing an,Information System,Developing an informa. tion system solution is,based on the problem,solving process.
ISBN 1 269 41688 X, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,372 Part IV Building and Managing Systems. Before a problem can be solved it first must be properly defined Members of the. organization must agree that a problem actually exists and that it is serious The problem. must be investigated so that it can be better understood Next comes a period of devising. alternative solutions then one of evaluating each alternative and selecting the best solution. The final stage is one of implementing the solution in which a detailed design for the. solution is specified translated into a physical system tested introduced to the organiza. tion and further refined as it is used over time, In the information systems world we have a special name for these activities Figure 11 1. shows that the first three problem solving steps where we identify the problem gather infor. mation devise alternative solutions and make a decision about the best solution are called. systems analysis,DEFINING AND UNDERSTANDING THE PROBLEM. Defining the problem may take some work because various members of the company. may have different ideas about the nature of the problem and its severity What caused the. problem Why is it still around Why wasn t it solved long ago Systems analysts typically. gather facts about existing systems and problems by examining documents work papers. procedures and system operations and by interviewing key users of the system. Information systems problems in the business world typically result from a combination. of people organization and technology factors When identifying a key issue or problem. ask what kind of problem it is Is it a people problem an organizational problem a technol. ogy problem or a combination of these What people organizational and technological. factors contributed to the problem, Once the problem has been defined and analyzed it is possible to make some decisions.
about what should and can be done What are the objectives of a solution to the problem Is. the firm s objective to reduce costs increase sales or improve relationships with customers. suppliers or employees Do managers have sufficient information for decision making. What information is required to achieve these objectives. At the most basic level the information requirements of a new system identify who. needs what information where when and how Requirements analysis carefully defines. the objectives of the new or modified system and develops a detailed description of the. functions that the new system must perform A system designed around the wrong set of. requirements will either have to be discarded because of poor performance or will need. to undergo major modifications Section 11 2 describes alternative approaches to eliciting. requirements that help minimize this problem, Let s return to our opening case about the Girl Scouts The problem here is that the Girl. Scout ordering process is heavily manual and cannot support the large number of volunteers. and cookie orders that must be coordinated As a result cookie ordering is extremely. inefficient with high error rates and volunteers spending excessive time organizing orders. and deliveries, Organizationally the Girl Scouts is a volunteer organization distributed across a large. area with cookie sales as the primary source of revenue The Scouts rely on volunteers. with little or no business or computer experience for sales and management of orders and. deliveries They have almost no financial resources and volunteers are strapped for time. The Girl Scout cookie ordering process requires many steps and coordination of multiple. groups and organizations individual Girl Scouts volunteers the council office the cookie. manufacturing factory trucking companies and the Cookie Cupboard warehouse. The objectives of a solution for the Girl Scouts would be to reduce the amount of time. effort and errors in the cookie ordering process Information requirements for the solution. ISBN 1 269 41688 X, include the ability to rapidly total and organize order transactions for transmittal to ABC. Cookies the ability to track orders by type of cookie troop and individual Girl Scout the. ability to schedule deliveries to the Cookie Cupboard and the ability to schedule order. pickups from the Cookie Cupboard, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 373.
DEVELOPING ALTERNATIVE SOLUTIONS, What alternative solutions are possible for achieving these objectives and meeting these. information requirements The systems analysis lays out the most likely paths to follow. given the nature of the problem Some possible solutions do not require an information. system solution but instead call for an adjustment in management additional training or. refinement of existing organizational procedures Some however do require modifications. to the firm s existing information systems or an entirely new information system. EVALUATING AND CHOOSING SOLUTIONS, The systems analysis includes a feasibility study to determine whether each proposed. solution is feasible or achievable from a financial technical and organizational standpoint. The feasibility study establishes whether each alternative solution is a good investment. whether the technology needed for the system is available and can be handled by the firm s. information systems staff and whether the organization is capable of accommodating the. changes introduced by the system, A written systems proposal report describes the costs and benefits and advantages. and disadvantages of each alternative solution Which solution is best in a financial sense. Which works best for the organization The systems analysis will detail the costs and. benefits of each alternative and the changes that the organization will have to make to use. the solution effectively We provide a detailed discussion of how to determine the business. value of systems and manage change in the following section On the basis of this report. management will select what it believes is the best solution for the company. The Patriots Trail Girl Scouts had three alternative solutions One was to streamline. existing processes continuing to rely on manual procedures However given the large. number of Girl Scouts and cookie orders as well as relationships with manufacturers and. shippers redesigning and streamlining a manual ordering and delivery process would not. have provided many benefits The Girl Scouts needed an automated solution that accurately. tracked thousands of order and delivery transactions reduced paperwork and created a. central real time source of sales data that could be accessed by council headquarters and. individual volunteers, A second alternative was to custom build a cookie ordering system using Microsoft. Access This alternative was considered too time consuming expensive and technically. challenging for the Girl Scouts It required 25 000 in initial programming costs plus the. purchase of hardware and networking equipment to run the system and link it to the Internet. as well as trained staff to run and maintain the system. The third alternative was to rapidly create a system using an application service. provider QuickBase provides templates and tools for creating simple database systems in. very short periods provides the hardware for running the application and Web site and can. be accessed by many different users over the Web This solution did not require the Girl. Scouts to purchase any hardware software or networking technology or to maintain any. information system staff to support the system This last alternative was the most feasible. for the Girl Scouts,IMPLEMENTING THE SOLUTION, The first step in implementing a system solution is to create detailed design specifica.
tions Systems design shows how the chosen solution should be realized The system. design is the model or blueprint for an information system solution and consists of all the. ISBN 1 269 41688 X, specifications that will deliver the functions identified during systems analysis These. specifications should address all of the technical organization and people components. of the system solution Table 11 1 shows some of the design specifications for the Girl. Scouts new system which were based on information requirements for the solution that. was selected, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,374 Part IV Building and Managing Systems. TABLE 11 1 Output Online reports,Design Specifications Hard copy reports. for the Girl Scout Online queries,Cookie System Order transactions for ABC Cookies.
Delivery tickets for the trucking rm,Input Order data entry form. Troop data entry form,Girl Scout data entry form,Shipping delivery data entry form. User interface Graphical Web interface, Database Database with cookie order le delivery le. troop contact le, Processing Calculate order totals by type of cookie and number of boxes. Track orders by troop and individual Girl Scout,Schedule pickups at the Cookie Cupboard.
Update Girl Scout and troop data for address and member. Manual procedures Girl Scouts take orders with paper forms. Troop leaders collect order cards from Scouts and enter the order. data online,Security and controls Online passwords. Control totals,Conversion Input Girl Scout and troop data. Transfer factory and delivery data,Test system,Training and documentation System guide for users. Online practice demonstration,Online training sessions. Training for ABC Cookies and trucking companies to accept data. and instructions automatically from the Girl Scout system. Organizational changes Job design Volunteers no longer have to tabulate orders. Process design Take orders on manual cards but enter them. online into the system, Schedule order pickups from the Cookie Cupboard online.
Completing Implementation, In the final steps of implementing a system solution the following activities would be. ISBN 1 269 41688 X, Hardware selection and acquisition System builders select appropriate hardware for. the application They would either purchase the necessary computers and networking. hardware or lease them from a technology provider, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 375. Software development and programming Software is custom programmed in house. or purchased from an external source such as an outsourcing vendor an application. software package vendor or an application service provider. The Girl Scouts did not have to purchase additional hardware or software QuickBase. offers templates for generating simple database applications Dovetail consultants used the. QuickBase tools to rapidly create the software for the system The system runs on QuickBase. Testing The system is thoroughly tested to ensure it produces the right results The. testing process requires detailed testing of individual computer programs called unit. testing as well as system testing which tests the performance of the information. system as a whole Acceptance testing provides the final certification that the system is. ready to be used in a production setting Information systems tests are evaluated by users. and reviewed by management When all parties are satisfied that the new system meets. their standards the system is formally accepted for installation. The systems development team works with users to devise a systematic test plan The. test plan includes all of the preparations for the series of tests we have just described. Figure 11 2 shows a sample from a test plan that might have been used for the Girl Scout. cookie system The condition being tested is online access of an existing record for a. specific Girl Scout troop, Training and documentation End users and information system specialists require train.
ing so that they will be able to use the new system Detailed documentation showing. how the system works from both a technical and end user standpoint must be prepared. The Girl Scout cookie system provides an online practice area for users to practice. entering data into the system by following step by step instructions Also available on the. Web is a step by step instruction guide for the system that can be downloaded and printed. as a hard copy manual, Conversion is the process of changing from the old to the new system There are three. main conversion strategies the parallel strategy the direct cutover strategy and the. phased approach strategy, In a parallel strategy both the old system and its potential replacement are run together. for a time until everyone is assured that the new one functions correctly The old system. remains available as a backup in case of problems The direct cutover strategy replaces. Figure 11 2,A Sample Test Plan,for the Girl Scout,Cookie System. When developing a test,plan it is imperative,to include the various. conditions to be tested,the requirements for,each condition tested.
and the expected,results Test plans,require input from both. end users and informa,tion systems specialists,ISBN 1 269 41688 X. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,376 Part IV Building and Managing Systems. the old system entirely with the new system on an appointed day carrying the risk that there. is no system to fall back on if problems arise A phased approach introduces the system. in stages such as first introducing the modules for ordering Girl Scout cookies and then. introducing the modules for transmitting orders and instructions to the cookie factory and. Production and maintenance After the new system is installed and conversion is com. plete the system is said to be in production During this stage users and technical. specialists review the solution to determine how well it has met its original objectives. and to decide whether any revisions or modifications are in order Changes in hardware. software documentation or procedures to a production system to correct errors meet. new requirements or improve processing efficiency are termed maintenance. The Girl Scouts continued to improve and refine their QuickBase cookie system The. system was made more efficient for users with slow Internet connections Other recent. enhancements include capabilities for paying for orders more rapidly entering troop. information and initial orders without waiting for a specified starting date and receiving. online confirmation for reservations to pick up orders from the Cookie Cupboard. Managing the Change, Developing a new information systems solution is not merely a matter of installing hardware. and software The business must also deal with the organizational changes that the new. solution will bring about new information new business processes and perhaps new. reporting relationships and decision making power A very well designed solution may not. work unless it is introduced to the organization very carefully The process of planning. change in an organization so that it is implemented in an orderly and effective manner is. so critical to the success or failure of information system solutions that we devote the next. section to a detailed discussion of this topic, To manage the transition from the old manual cookie ordering processes to the new.
system the Girl Scouts would have to inform troop leaders and volunteers about changes. in cookie ordering procedures provide training and provide resources for answering any. questions that arose as parents and volunteers started using the system They would need. to work with ABC Cookies and their shippers on new procedures for transmitting and. delivering orders, The Interactive Session on People provides another real world example of the. problem solving process at work as Honam Petrochemical Corporation in South Korea. develops a new management reporting system As you read this case observe how Honam. handled these problem solving activities defining the problem establishing information. requirements developing a solution selecting technology testing the new system and. managing the change process,11 2 Alternative Systems Building Approaches. There are alternative methods for building systems using the basic problem solving model. we have just described These alternative methods include the traditional systems lifecycle. prototyping end user development application software packages and outsourcing. TRADITIONAL SYSTEMS DEVELOPMENT LIFECYCLE, The systems development lifecycle SDLC is the oldest method for building information. systems The lifecycle methodology is a phased approach to building a system dividing. ISBN 1 269 41688 X, systems development into a series of formal stages as illustrated in Figure 11 3 Although. systems builders can go back and forth among stages in the lifecycle the systems lifecycle. is predominantly a waterfall approach in which tasks in one stage are completed before. work for the next stage begins, Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall.
Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 377. Figure 11 3,The Traditional,Development,The systems develop. ment lifecycle partitions,systems development,into formal stages with. each stage requiring,completion before the,next stage can begin. This approach maintains a very formal division of labor between end users and informa. tion systems specialists Technical specialists such as system analysts and programmers are. responsible for much of the systems analysis design and implementation work end users. are limited to providing information requirements and reviewing the technical staff s work. The lifecycle also emphasizes formal specifications and paperwork so many documents are. generated during the course of a systems project, The systems lifecycle is still used for building large complex systems that require.
rigorous and formal requirements analysis predefined specifications and tight controls. over the systems building process However this approach is also time consuming and. expensive to use Tasks in one stage are supposed to be completed before work for the next. stage begins Activities can be repeated but volumes of new documents must be generated. and steps retraced if requirements and specifications need to be revised This encourages. freezing of specifications relatively early in the development process The lifecycle approach. is also not suitable for many small desktop systems which tend to be less structured and. more individualized,PROTOTYPING, Prototyping consists of building an experimental system rapidly and inexpensively for end. users to evaluate The prototype is a working version of an information system or part of the. system but it is intended as only a preliminary model Users interact with the prototype to. get a better idea of their information requirements refining the prototype multiple times. The chapter opening case describes how Dovetail Associates used QuickBase to create a. prototype that helped the Patriots Trail Girl Scout Council refine the specifications for their. cookie ordering system When the design is finalized the prototype will be converted to a. polished production system Figure 11 4 shows a four step model of the prototyping process. Step 1 Identify the user s basic requirements The system designer usually an information. systems specialist works with the user only long enough to capture the user s basic. information needs, Step 2 Develop an initial prototype The system designer creates a working prototype. ISBN 1 269 41688 X, quickly using tools for rapidly generating software. Step 3 Use the prototype The user is encouraged to work with the system to determine if. the prototype meets his or her needs and to suggest improvements for the prototype. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,378 Part IV Building and Managing Systems. INTERACTIVE SESSION PEOPLE Honam Petrochemical s Quest for Better Management Reports. You may soon hear more about Honam Petrochemical analytics for powerful personalized dashboards based. Corporation Headquartered in Seoul South Korea on SAP s BusinessObjects business intelligence plat. this company manufactures and sells petrochemical form BusinessObjects software tools can be used for. products such as synthetic resins synthetic industrial performance management planning reporting query. materials such as ethylene glycol and ethylene oxide and analysis and enterprise information management. for making polyester automobile antifreeze solutions and provide self service access to data from databases. benzene propylene and ethylene Honam has about and Excel spreadsheets SAP BusinessObjects Web. 2 200 employees and its 2010 revenues exceeded U S Intelligence is an ad hoc query reporting and analy. 6 75 million sis tool that is used to create queries or use existing. Honam s primary market is South Korea but the reports format retrieved information and perform. company has set its sights on becoming a top tier analysis to understand trends and root causes. chemical company throughout Asia and achieving Once Honam s project team determined the. sales of U S 10 billion Honam plans to do this by business intelligence tools for the solution its focus. strengthening its existing businesses extending its turned to determining which data and reports were. overseas business and developing new businesses required by the company s 200 high level users of the. To manage far flung operations in China Hong new system The information systems team started. Kong Moscow and New York City Honam needs by asking executives to list existing reports they were. reliable reports that are able to accurately measure already receiving and to assess the usefulness of each. management performance and provide useful The list was cut to a more manageable size and the. accurate information for increasing sales and reducing executives were asked if there were any additional. costs Honam s existing systems provided managers reports or data from which their organizational groups. with reports to guide their business decisions but in could benefit These findings were very useful in. many cases the data in the reports were outdated and determining the right set of reports and dashboards for. sanitized Individual managers were processing and Honam executives. manipulating the data to make their departments look Once these user requirements were clarified the. better to senior management The report data were information systems team designed a system that. also somewhat outdated and presented periodically could extract data from a SAP NetWeaver Business. Honam s top management wanted anytime access to Warehouse and present them to executives using the. current daily data to obtain an accurate and unbiased SAP BusinessObjects Dashboards software and SAP. view of what was occurring in the sales office or on Crystal Reports an application for designing and gen. the plant floor It did not wanted to be overloaded with erating reports from a wide range of data sources A. unnecessary data so it could focus on the watch up highly intuitive Web based user interface was created. indicators it considered crucial to the business to make the system very accessible This interface was. Executive decision makers did not want to work so simple and well designed that users required very. with last quarter s numbers They wanted up to the little training on how to use the system or access data. minute reports that they could view quickly on their and reports. desktops They also wanted access via the Web or their To encourage users to start working with the system. mobile devices Finally Honam executives wanted members of the information systems department. enterprise wide data that could be accessed and shared visited various manufacturing plants where the system. easily across various business units and functions to was being rolled out and had in depth discussions with. support the company s expansion geographically and executives about the systems benefits as well as how. by product line to use it, These three requirements drove the technology Honam s system went live in January 2011 and.
selection process Honam s information systems team executives started immediately accessing reports. reviewed a number of different software products and and dashboards on a daily weekly and monthly. vendors and selected SAP BusinessObjects Dashboards basis The system enables them to view key per. and SAP BusinessObjects Web Intelligence The formance information such as manufacturing costs. ISBN 1 269 41688 X, company already had seven years experience running by plant transportation costs daily production and. SAP s ERP system so this vendor seemed like an inventory rates and global product price trends and. appropriate choice the information can be displayed visually in dash. SAP BusinessObjects Dashboards is a drag and boards and management cockpits Thirty executives. drop visualization tool designed to create interactive tested mobile devices providing anytime anywhere. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 379. access to the new system Delivery of the information system reduces the time required to collect process. is personalized and differentiated for high level execu and track the data executive decision making takes. tives middle managers and front line employees place more rapidly Honam s information systems. It is still too early to assess the long term business are now ready for global information sharing as the. impact of the system but one benefit was immediate company expands. Executives no longer are limited to sanitized stale Sources David Hannon Searching Beyond Sanitized Data SAPInsider. data in an outdated presentation format Management PROFILES July 2011 David Steier Visualizing Success Analytic User. Interfaces that Drive Business Information Management July August 2011. discussions and decisions are based on timely consis and Honam Petrochemical Strategy and Financial Highlights from ICIS. tent and accurate company wide data Because the www icis com accessed July 21 2011. CASE STUDY QUESTIONS MIS IN ACTION, 1 List and describe the information requirements Visit the Dashboard Insight Web site dashboardin. of Honam s new management system What sight com and review the section on Getting Started. problems was the new system designed to solve with Dashboards Explain why digital dashboards. are so useful to Honam s management and what best,2 To what extent were people problems affecting. practices for building dashboards Honam followed,management decision making at Honam What.
were some of the people organization and,technology issues that had to be addressed by. the new system How did the system s designers,make the system more people friendly. 3 What role did end users play in developing,Honam s new system How did the project team. make sure users were involved What would have,happened to the project if they had not done this. 4 What were the benefits of the new system How,did it change the way Honam ran its business.
How successful was this system solution, Step 4 Revise and enhance the prototype The system builder notes all changes the user. requests and refines the prototype accordingly After the prototype has been revised the. cycle returns to Step 3 Steps 3 and 4 are repeated until the user is satisfied. Prototyping is especially useful in designing an information system s user interface. Because prototyping encourages intense end user involvement throughout the systems. development process it is more likely to produce systems that fulfill user requirements. However rapid prototyping may gloss over essential steps in systems development such. as thorough testing and documentation If the completed prototype works reasonably well. management may not see the need to build a polished production system Some hastily. constructed systems do not easily accommodate large quantities of data or a large number of. users in a production environment,ISBN 1 269 41688 X. END USER DEVELOPMENT, End user development allows end users with little or no formal assistance from technical. specialists to create simple information systems reducing the time and steps required to. produce a finished application Using fourth generation languages graphics languages. and PC software tools end users can access data create reports and develop entire. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc,380 Part IV Building and Managing Systems. Figure 11 4,The Prototyping,The process of devel,oping a prototype.
consists of four steps,Because a prototype can,be developed quickly. and inexpensively,systems builders can,go through several itera. tions repeating steps,3 and 4 to refine and,enhance the prototype. before arriving at the,final operational one, information systems on their own with little or no help from professional systems analysts. or programmers, For example Travel and Transport the sixth largest travel management company in.
the United States used Information Builders WebFOCUS to create an online self service. reporting system for monitoring and managing travel expenditures More than 800 external. clients are able to access information directly on their own to plan track analyze and bud. get their travel expenses and benchmark them against similar companies saving millions of. dollars Information Builders 2011, On the whole end user developed systems are completed more rapidly than those. developed with conventional programming tools Allowing users to specify their own. business needs improves requirements gathering and often leads to a higher level of user. involvement and satisfaction with the system However fourth generation tools still cannot. replace conventional tools for some business applications because they cannot easily handle. the processing of large numbers of transactions or applications with extensive procedural. logic and updating requirements, End user development also poses organizational risks because systems are created. rapidly without a formal development methodology testing and documentation To help. organizations maximize the benefits of end user applications development management. should require cost justification of end user information system projects and establish. hardware software and quality standards for user developed applications. PURCHASING SOLUTIONS APPLICATION SOFTWARE PACKAGES. AND OUTSOURCING, Chapter 4 points out that the software for most systems today is not developed in house. ISBN 1 269 41688 X, but is purchased from external sources Firms may choose to purchase a software package. from a commercial vendor rent the software from a service provider or outsource the. development work to another firm Selection of the software or software service is often. based on a Request for Proposal RFP which is a detailed list of questions submitted. to external vendors to see how well they meet the requirements for the proposed system. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall. Copyright 2013 by Pearson Education Inc, Chapter 11 Building Information Systems and Managing Projects 381.
Application Software Packages, Most new information systems today are built using an application software package or. preprogrammed software components Many applications are common to all business. organizations for example payroll accounts receivable general ledger or inventory. control For such universal functions with standard processes that do not change a. great deal over time a generalized system will fulfill the requirements of many organizations. If a software package can fulfill most of an organization s requirements the company. does not have to write its own software The company saves time and money by using the. prewritten predesigned pretested software programs from the package. Many packages include capabilities for customization to meet unique requirements. not addressed by the package software Customization features allow a software pack. age to be modified to meet an organization s unique requirements without destroying. the integrity of the packaged software However if extensive customization is required. additional programming and customization work may become so expensive and time. consuming that it negates many of the advantages of software packages If the package. cannot be customized the organization will have to adapt to the package and change its. procedures,Outsourcing, If a firm does not want to use its internal resources to build or operate information. systems it can outsource the work to an external organization that specializes in provid. ing these services Software service providers which we describe in Chapter 4 are one. form of outsourcing An example is the Girl Scouts leasing the software and hardware from. QuickBase to run their cookie ordering system Subscribing companies use the software. and computer hardware of the service provider as the technical platform for their systems. In another form of outsourcing a company hires an external vendor to design and create the. software for its system but that company operates the system on its own computers. The outsourcing vendor might be domestic or in another country Domestic outsourcing. is driven primarily by the fact that outsourcing firms possess skills resources and assets. that their clients do not have Installing a new supply chain management system in a very. large company might require hiring an additional 30 to 50 people with specific expertise in. supply chain management software Rather than hire permanent new employees and then. release them after the new system is built it makes more sense and is often less expensive. to outsource this work for a 12 month period, In the case of offshore outsourcing the decision tends to be driven by cost A skilled. programmer in India or Russia earns about U S 10 000 per year compared to 70 000 per. year for a comparable programmer in the United States The Internet and low cost com. munications technology have drastically reduced the expense and difficulty of coordinating. the work of global teams in faraway locations In addition to cost savings many offshore. outsourcing firms offer world class technology assets and skills. For example Chaucer Syndicates a specialist insurer for Lloyd s the world s leading. insurance market contracted with Indian software and service provider Wipro Ltd to. develop a data warehouse and reporting system Chaucer believed Wipro had the technical. expertise industry knowledge and resources to quickly develop a solution that would meet. its regulatory requirements and provide timely and improved analytics and management. reports Wipro 2011, There is a very strong chance that at some point in your career you ll be working with. offshore outsourcers or global teams Your firm is most likely to benefit from outsourc. ing if it takes the time to evaluate all the risks and to make sure outsourcing is appropri. ate for its particular needs Any company that outsources its applications must thoroughly. ISBN 1 269 41688 X, understand the project including its requirements method of implementation source of.
expected benefits cost components and metrics for measuring performance. Many firms underestimate costs for identifying and evaluating vendors of informa. tion technology services for transitioning to a new vendor for improving internal software. development methods to match those of outsourcing vendors and for monitoring vendors. Essentials of Management Information Systems Tenth Edition by Kenneth C Laudon and Jane P Laudon Published by Prentice Hall.

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