AIS Chap 8
poor communication
Employees need to understand why change is necessary
• Mary should have been informed of the change that was going to take place, the purpose of the change, and why it was important to the company. Discussing these things with Mary beforehand could have helped the company create an attitude of trust and cooperation and could have set an example for what they expected of Mary. • The company should have allowed Mary to make suggestions concerning the system, especially the things that would help her do her job more efficiently. • Mary should be reassured that she has control over the system and not the other way around and that the system will help her perform her job more effectively. • Education prior to systems implementation could perhaps have helped Mary adapt to the system more readily.
In retrospect, how should Dave have handled the accounting system computerization? (Mary)
master plan
Long-range and authored by steering committee outlining prioritized projects and timetables
all are benefits
NOT one of the tangible or intangible benefits a company might obtain from a new system a. cost saving b. improved customer service and productivity c. improved decision making d. improved data processing e. all are benefits
develop an implementation and conversion plan install hardware and software train personnel test the system complete documentation convert from old to new system deliver operational system
Systems Development Life Cycle (SDLC) - implementation and conversion
fine-tune and do post implementation review operate system modify system do ongoing maintenance deliver improved system
Systems Development Life Cycle (SDLC) - operations and maintenance
design output design database design input develop programs develop procedures design controls deliver developed system
Systems Development Life Cycle (SDLC) - physical design
do initial investigation do systems survey do feasibility study determine information needs and systems requirements deliver systems requirements
Systems Development Life Cycle (SDLC) - systems analysis
personal characteristics and background
age open to technology and comfortable with it
payback period net present value (NPV) internal rate of return (IRR)
capital budgeting
initial investigation, system survey, feasibility study, determination of information needs and systems requirements
correct order of the steps in systems analysis
systems analysis - lowest systems designs - medium systems implementation - highest
cost of systems analysis, systems design, and system implementation
b. operational feasibility
determining whether the organization has access to people who can design, implement, and operate the proposed system is a. technical feasibility b. operational feasibility c. legal feasibility d. scheduling feasibility e. economic feasibility
• Conduct a study to determine whether to continue with the project.
feasibility survey
systems analysis conceptual design physical design implementation and conversion operations and maintenance
five step systems development life cycle (SDLC)
management support satisfy user needs involve users reduce fears, emphasize opportunities avoid emotionalism provide training performance evaluation keep open communications test system prior to implementation keep system simple control user's expections
how to prevent behavioral problems
a. aggression
increased error rates, disruptions, and sabotage are examples of: a. aggression b. avoidance c. projection d. payback
• Define and document the information needs of the users. • Define and document the requirements of the new system.
information needs and system requirements
poor planning
major reason why system failure rates are high
Proper planning provides for achieving goals and objectives For systems development, two plans needed: Master Plan -Long-range and authored by steering committee outlining prioritized projects and timetables Project Development Plan -Specific to a project and authored by the project team identifies people, hardware, software, and financial resources needed
systems development planning - two types of plans
• Study and review the existing organizational structure to determine how it functions. • Collect and review internal documents and reports to determine design, content, use, frequency of preparation, etc. • Develop and use questionnaire forms to determine processing frequencies, input/output volumes, and other information. • Conduct personal interviews to confirm and expand upon data gathered from the questionnaire. • Develop flowcharts, models, and diagrams to document the existing system. • Study external data sources, including companies who develop or who similar systems, consultants specializing in such systems, customers, industry trade associations, and government agencies. • Observe activities to determine how the system
systems survey
systems planning and analysis, bc it is relatively less expensive than the trial-and-error fix done at the implementation stage
the highest cost should be?
master plan
the long-range planning document that specifies what the system will consist of, how it will be developed, who will develop it, how needed resources will be acquired, and its overall vision a. steering committee b. master plan c. systems development life cycle d. project development plan
purchasing department. the people who will actually be using the new system are in the best position to determine the system's information requirements
the purchasing department is designing a new AIS. who is best able to determine departmental information requirements? a. steering committee b. controller c. top management d. purchasing department
true
true or false resistance is often a reaction to the methods of instituting change rather than to change itself
1. fear 2. lack of top management support
two most important reasons systems fail due to change. why people resist change.
master plan project development plan
two plans needed for systems development
economic technical legal scheduling operational
types of feasibility analysis
human element. a system will fail without the support of the people it is designed to serve --- for a variety of reasons, including fear of change, poor communication and training, disruption of work, and lack of top-management support
what is often the most significant problem a company encounters in designing, developing, and implementing a system? a. the human element b. technology c. legal challenges d. planning for the new system
e. all
which is not a reason why companies make changes to their AIS? a. gain a competitive advantage b. increase productivity c. keep up with business growth d. downsize company operations e. all
information systems steering committee project development team programmers systems analysts management users
who is involved in SDLC
information systems steering committee project development team programmers systems analysts management users
who is involved in the Systems Development Life Cycle (SDLC)
fear lack of top management support bad prior experiences poor communication disruption manner change is introduced biases and emotions personal characteristics and back ground
why people resist change
Technology is always changing. From a business perspective, typically a good idea to update (when makes sense). One main reason is IT can provide a competitive advantage (improves efficiency and effectiveness relative to competitors). Lower cost in long run
why update a system?
User or business changes Technology changes To improve business process Create competitive advantage Increase productivity gains Integrate multiple systems Aging systems need replacement
why update systems?
GANTT Chart
A bar chart with project activities on the left-hand side and units of time across the top Graphically shows the entire schedule for a large, complex project
There are advantages and disadvantages to each of the following four options. Students will come to different conclusions based on their background. It is important to bring out the pros and cons of each approach. A few of these are shown below. This problem works well when the instructor determines which students support which alternative and plays them off against each other. 1. Firing can have the following advantages: • The company can hire a more qualified individual who can perform the job more efficiently. • The company can rid itself of an uncooperative employee and replace her with someone with a more positive attitude. Firing can have the following disadvantages: • The company sends messages to other employees and perhaps the community in general that they don't care about their employees as much as they do about profits and operations. This may lower company morale. • The firm may have higher training and hiring costs. • The person hired may cost more and bring unknown problems to the job. 2. Transferring employees can have the following advantages: • The company is less likely to communicate that it does not care for its employees. • The transferred person has experience with the company and may be of greater value to the company in another area than a newly hired person may. • Training and hiring costs remain constant. Transferring can have the following disadvantages: • Employees may resent being transferred and not perform well in their new duties. • Employees may not be qualified for the new job and perform poorly. • If the transferred employee is disgruntled and talks about her situation to her coworkers, it could affect company morale. 3. Persuasion can have the following advantages: • A valuable employee may be retained and her time freed up to perform tasks that are more important. • Hiring and training costs can be kept to a minimum. • The company communicates consideration for its employees. Persuasion can have the following disadvantages: • The employee may never truly adapt, resulting in poor job performance and an increase in errors. • Significant costs may be incurred to constantly train the employee and identify the mistakes made by the employee. • The company may make poor decisions based on incorrect information given by the employee. • It may only serve to increase even further the frustration level that already exists. Mary was eventually fired and another bookkeeper hired. With the new system, there was not enough work to keep the new employee busy full time. Consequently, the employee took over additional tasks that Dave had originally been performing. This freed him up for more creative tasks and to have more personal time. Mary was interviewed several years later. She was employed at another firm and worked extensively with computers. Mary was asked if the company could have done anything to help her adapt to the computer and she said no. She had such a mental block against the computer at the time that she doubted the company could have done anything else to help her. It required several years for her to overcome her fear and learn to use computers.
A hard decision must be made regarding Mary. Significant efforts have been made to train her, but they have been unsuccessful. What would you recommend at this point? Should she be fired? Threatened with the loss of her job? Moved somewhere else in the business? Given additional training?
disruption
Additional requests for information and additional burdens of time is distracting and prompts negative feelings
manner change is introduced
Approaches are different for top level and lower level employees
• Mary should have at least been informed as soon as the decision was made to purchase the system. Preferably, Mary should have been informed at the very start when the company began thinking about the computer system. This would have allowed Mary to give valuable input and to be involved throughout the entire process. • Because Mary was only a bookkeeper and did not fully understand the necessity of the system, she should not have been allowed to make the final decision on acquiring the system. However, if Mary had been involved from the beginning it is possible that she would have been in favor of the system. Even though she should not make the final decision, if her input had been considered it would have helped her accept the decision better. • An effort should have been made to persuade her of the system's viability. If that is unsuccessful then consideration should be given to relocating her within the company. If both previous plans fail then termination is the only alternative available. • Mary should have been given an opportunity for greater input. The company should have solicited her suggestions concerning how the system would best assist her with her job and how the system could achieve success in general terms. This participation would have likely increased Mary's self-esteem and security with the new system and changed her whole outlook about the system.
At what point in the decision-making process should Mary have been informed? Should she have had some say in whether the computer was purchased? If so, what should have been the nature of her input? If Mary had not agreed with Dave's decision to acquire the computer, what should Dave have done?
bad prior experience
Bad experience with prior IS changes
Gantt chart
Bar chart that organizes activities on the left hand side and project time scheduled with a bar drawn to show the progress to date for that particular activity.
payback period
Calculate the number of years required for the net savings to equal the initial cost of investment
internal rate of return
Calculates the interest rate that makes the present value of total costs equal to the present value of total earnings
scheduling
Can the system be developed in the time allotted?
technical
Can we use existing technology?
users
Communicate needs to system developers, help design and test to ensure complete and accurate processing of data
• Greater optimization of organizational resources, increasing productivity and profitability. • More timely information for management decision making. • Easier and quicker access to corporate data. • More technological advancements, which sustains or increases the organization's competitive status and ensures employees of marketable technological skills. • Standardized procedures and operations. Once a procedure or operation is standardized, computers will repeat the same logical procedures.
Describe the benefits companies and employees receive from electronic communications.
systems analysts
Determine information needs, prepare specifications for programmers
If the cash procedures are documented, a review of that documentation will help understand how it is supposed to work. The best way to understand how cash disbursement procedures are actually performed is to interview employees, observe them, and prepare flowcharts and notes.
Determining how cash disbursement procedures are actually performed . which data gathering methods are most appropriate and why
program evaluation and review technique (PERT)
Diagram that depicts all project activities that require time and resources with completion estimates. Determines critical path.
The initial cost of some electronic communication systems is a major capital purchase, requiring special procedures for capital acquisitions. With the increase in technology, the organization will increase its comparative advantage. Small companies who cannot afford the technology may be squeezed out of the market. Employees may experience a loss of confidence and fear change and/or the loss of their jobs
Discuss the organizational impact of introducing new electronic communication systems.
economic
Do benefits of new system justify the costs (time and resources) to implement?
operational
Do we have the people to design and implement the system? Will people use the new system?
legal
Does new system comply with regulations, laws, and contractual obligations?
net present value
Estimate future cash flows with discounted rate for (time value of money)
Observation of procedures, interviews with employees, and documentation reviews (of document or control flowcharts, for example) will all aid in understanding purchase requisition procedures. Each type of procedure will identify different aspects of the internal controls in the purchasing department.
Examining the adequacy of internal controls in the purchase requisition procedure. which data gathering methods are most appropriate and why
Information Systems Steering Committee
Executive level, plans and oversees IS function; facilitates coordination with integration of systems activities
• Verify the nature of the problem and the needs of the users. • Gather the information needed to evaluate the feasibility of the request.
Explain the activities commonly performed during systems analysis. Initial Investigation
• To gain an understanding of the existing system and how it functions. • To determine the constraints of the current system. • To assess the strengths and weaknesses of the existing system and to identify problems that need to be resolved. • To provide design ideas for the new system and to identify available resources. • To provide information about users' information needs.
Explain the purpose and reasons for surveying an organization's existing system.
• They may fear and resist change. This may include the fear that they will be replaced by automation and lose their employment. • They do not know what the system is and how it will help them on the job. • Embarrassment of not knowing how to use the system.
Explain why an employee might resist the introduction of electronic communication systems.
• Apparently, the detectives were not asked what they wanted and/or needed in the new system. If they were asked for input, it was not adequately communicated to system designers or it was ignored. • The system did not provide the service or performance the detectives wanted. • The detectives were not trained on the new system to their satisfaction. They did not feel comfortable using it because they did not understand how to use it.
Identify as many system analysis and design problems as you can.
An in-depth interview with the controller is one way to determine her information needs. However, managers often don't know what information they need; they say they need the information they are now getting and little else. Therefore, the interviewer/analyst must understand the manager's function and the role of that function in the organization. The interviewer should also ask the controller what information she would like to receive that she is not now receiving. Interviewing is an efficient fact-finding technique that allows a prepared and informed interviewer to ask "why" or probing questions to better identify the controller's needs. Reviewing the reports that the controller currently receives is also a good way to identify her needs.
Identifying the controller's information needs. which data gathering methods are most appropriate and why
lack of top management support
If the top management is not supportive why should the employee change?
Interviews with employees and examination of documents will provide good initial sources of information to investigate the problem. Documents will show which accounts are uncollectible and help with an understanding of the company's collection policies. Interviews will help determine why uncollectible accounts have increased.
Investigating an increase in uncollectible accounts. which data gathering methods are most appropriate and why
• Ms. Grey did not give Mr. Young adequate instructions about how to conduct the interview and what information to obtain. A senior consultant must exercise closer supervision and provide better guidance to junior employees. Perhaps Ms. Grey should have performed the interview while Mr. Young observed. • The consultants did not prepare for the interview. They should have studied available documentation to learn what the department does and what the supervisor's job responsibilities are. Then they should have prepared an interview guide listing the topics to be discussed and the questions to be asked. • Mr. Young provided an oral report rather than a written report of his findings. An interviewer should take notes during the interview, and polish them immediately afterward, in order to provide documentation for future analysis and reference. • Mr. Young's opening statements to the supervisor were negative in tone. He should attempt to establish rapport with the interviewee, avoid making negative or threatening statements, and be positive about the goals of the study. • Mr. Young should have asked the supervisor to explain how the department works. Most of the talking should have been done by the supervisor while Mr. Young listened and took notes. • The interview should have been scheduled ahead of time and the department supervisor should have had time to prepare for the interview.
Joanne Grey, a senior consultant, and David Young, a junior consultant, are conducting a systems analysis for a client to determine the feasibility of integrating and automating clerical functions. Joanne had previously worked for the client, but David was a recent hire. The first morning on the job, Joanne directed David to interview a departmental supervisor and learn as much as possible about department operations. David introduced himself and said, "Your company has hired us to study how your department works so we can make recommendations on how to improve its efficiency and lower its cost. I would like to interview you to determine what goes on in your department." David questioned the supervisor for 30 minutes but found him to be uncooperative. David gave Joanne an oral report on how the interview went and what he learned about the department. Describe several flaws in David's approach to obtaining information. How should this task have been performed?
investigate each development activity to define the problem to be solved make a preliminary assessment of feasibility prepare a proposal to conduct systems analysis
Phase 1: systems analysis step 1: initial investigation
develop a more thorough feasibility analysis, especially with respect to economic costs and benefits
Phase 1: systems analysis step 3: feasibility study
identify information needs of users determine objectives and requirements of the new system
Phase 1: systems analysis step 4: information needs and systems requirements
provide management with the findings of the analysis phase
Phase 1: systems analysis step 5: systems analysis report
initial investigation systems survey feasibility study information needs and systems requirements systems analysis report
Phase 1: systems analysis steps
project development team
Plan and monitor project progress
Most software development projects deliver less, cost more, and take longer than expected. Standish Group found that: -70 percent of software development projects were late -54 percent were over budget -66 percent were unsuccessful -30 percent were canceled before completion American Management Systems found that: -75 percent of all large systems are not used -Not used as intended, or -Generate meaningless reports or inaccurate data
Software development problems
project development plan
Specific to a project and authored by the project team identifies people, hardware, software, and financial resources needed
By using a questionnaire, the opinions of many different employees can be gathered. Questionnaires also produce information in a standardized format. A questionnaire allows employees to think about the questions before giving answers and it is more objective than other data gathering methods. Anonymous questionnaires will encourage employees to give honest answers. Questionnaires produce a "breadth" but not a "depth" of information. To go beyond the questions in the questionnaire, interviews should be held with selected employees. The purpose of the interviews is to probe deeper to find out why employees feel as they do.
Surveying employees about the move to a total quality management program. which data gathering methods are most appropriate and why
Systems analysis conceptual design physical design implementation and conversion operations and maintenance
Systems Development Life Cycle (SDLC)
identify and evaluate design alternatives develop design specifications deliver conceptual design requirements
Systems Development Life Cycle (SDLC) - conceptual design
economic feasibility technical feasibility legal feasibility scheduling feasibility operational feasibility
Systems Development Life Cycle (SDLC) - feasibility analysis decision points
Yes, companies with few IS employees should attempt to implement planning programs. This is particularly true if the company or its computer usage is growing. The extent of the planning should be commensurate with the size of the computer facility, reliance on system information, and the potential value of the company's system. Planning produces benefits even if the planning effort is minimal. In the smallest facility, the plan may consist simply of a few pages of thoughts and projects that are prepared and reviewed periodically by the person in charge of the system. It could also consist of a bare bones cost-benefit analysis. A smaller company will typically have fewer funds than a large company will. Therefore, inadequate planning can be more disastrous and financially draining for small companies.
The approach to long-range AIS planning described in this chapter is important for large organizations with extensive investments in computer facilities. Should small organizations with far fewer information systems employees attempt to implement planning programs? Why or why not? Be prepared to defend your position to the class.
• Communication of information as to why the system is being implemented and how it will affect each employee's job. The intent should be to reinforce job security. • Education and training of employees on how to use the system by providing system manuals and designated user support. • Giving employees the opportunity to make suggestions for improving the system.
The steps an organization can take to alleviate this resistance.
management
They get users involved in the process, provide support for development projects, align projects to meet organizations strategic needs
• If the department had involved the police officers early in the planning, analysis, and design process, they could have: o Helped systems analysts identify what they wanted in the new system, helped design the new system, and given constructive feedback on the new system. o Acted as conduits or liaisons to their respective departments by communicating suggestions from their department. They also could have acted as a champion or supporter of the new system to their colleagues. The Chicago Police Department recognized the problems with new systems and took steps to improve system performance and user acceptance. They: • Increased the competence of their information systems group. They were a good team, but lacked the training to manage a project of this magnitude. They recruited people with the correct skills and experience to implement successfully the system. • Increased training for all IS professionals, from entry-level developers to senior managers. • Sent programmers to the field for six weeks to document the user problems and issues. • Instituted joint application design sessions with teams comprised of management, users, and technical staff. • Used police officers to train users in the field, which made a huge difference to the cop on the street. One officer commented, "There is a certain degree of comfort with other police officers." • Limited or no user input • Poor training • Users were not part of the development team.
What could the department have done differently to prevent the officers' complaints?
Employee reaction to the installation of a new information system is often diverse and unpredictable. In many cases, employees must make significant behavioral adjustments to ensure the future success of the new system. These adjustments go well beyond mere surface anxieties such as fear of the unknown. Possible causes of Mary's resistance to computers include (phased as questions): • Is Mary's adverse behavior due to a perceived need to protect her ego? Is she afraid she cannot use the computer properly and would look foolish? • Since Mary was excluded from the decision to automate the office, does she feel resentment and refuse to use a system she wasn't asked to help select? • Is she fearful because computers sometimes cause people to overcommunicate? (i.e., with capabilities such as electronic mail, employees can be reached anywhere and anytime, making it difficult to get away from all the interruptions that are part of the daily grind.) • Is she worried that the computer will impose its own structure on the organization? The computer can considerably narrow that freedom causing people to view the computer as structure and constraint. • Did she have an adverse experience with previous
What do you believe is the real cause of Mary's resistance to computers?
• The company did not involve Mary in the systems change. They did not ask for her ideas, thoughts, or input. Evidently, she was not informed of the change until the computer was moved into her office and the furniture rearranged to make room for it. It would be easy for her to get the feeling she was not a very valued employee of the company. • The company did not explain why the system was being implemented, what the company hoped to achieve with the system, and why it was so important to the company. • The changes to Mary's job and responsibilities were not explained. • Mary was not given any assurance that she would not be replaced by the system. • The company did not alleviate Mary's fear by reassuring her that training would be provided to help her adapt to the new system and her duties. • Running two systems longer than it took to test system reliability was a mistake, as was having Dave do the work.
What events may have contributed to the new system's failure? (Mary)
Most systems analysis work is performed by systems people. However, the management accountant is an important part of the development team and would be of assistance in providing information about various aspects of the system, including: • Management's needs for required reports and their format. • System requirements. • Source documents in use. • The relevance, reliability, and timeliness of input/output data. • The internal controls which exist and which should be incorporated into any new or redesigned system.
What is the management accountant's role in systems analysis?
• Limited or no user input • Poor training • Users were not part of the development team.
What principles of system analysis and design were violated in this case?
Phase 1: systems analysis step 2: systems survey
Which is used study the present system to gain a thorough understand of how it works
programmers
Who writes and tests programs according to analysts specifications
• Tell employees what is going to happen to them as soon as possible. • Institute a hiring freeze so staff can be reduced by attrition. • Retrain displaced employees for other jobs. • Offer early retirement to older employees. • Offer retirement incentives. • Offer displaced employees comparable positions in other divisions of the company. • Hire a personnel-consulting firm to help displaced employees find alternative employment. • Train displaced employees for positions in the new system. • Encourage part-time work or job-sharing. • The communication should be direct, so that the employees are the first to find out and are not subject to the whims of rumors and uncertainty. • The communication should be prompt so the employees have sufficient time to seek other jobs. • Management should offer as much employee assistance as possible to help them find new jobs. This includes recommendations from supervisors, priority consideration for other jobs in the firm, opportunities for positions in the new system, time off to search for a new job, and severance pay. While these actions may be costly, they will provide benefits (cooperation, improved morale in the remaining employees, etc.) that will likely exceed the costs.
You are a consultant advising a firm on the design and implementation of a new system. Management has decided to let several employees go after the system is implemented. Some have many years of company service. how would you advise management to communicate this decision to the affected employees? to the entire staff?
systems planning and analysis
most important part of SDLC
1. Gain an understanding of the existing system (if one exists). 2. Identify and understand problems. 3. Express identified problems in terms of information needs and system requirements. 4. Clearly identify subsystems to be given highest priority. Focus Identify critical success factors. Give special attention to these factors.
objectives of systems analysis
fear
of failure, the unknown, losing status
PERT diagram
planning technique that identifies implementation activities and their relationships, constructs a network of arrows and nodes, and then determines the critical path thru the network
program evaluation and review technique (PERT) Gantt chart
planning techniques
projects were late over budget unsuccessful canceled before completion 75% of all large systems are not used, not used as intended, or generate meaningless reports or inaccurate data
software development problems
