ISYS Chapter 10

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Economic Feasibility

-Assess a systems's costs and benefits. -Analyst must identify all costs and benefits: tangible and intangible. _________________________________________________________ -Tangible Benefits: can be quantified in terms of monthly or annual savings -Tangible Costs: the team tallies tangible development and operating costs for the system and compares them with expected financial benefits of the system. -Intangible Benefits: improved employee morale, better customer satisfaction, more efficient use of human resources, increased flexibility in business operations, and improved communication. _________________________________________________________ After collecting information on costs and benefits, the team can do a *cost-effectiveness analysis.* The most common analysis methods: - payback - net present value (NPV) - return on investment (ROI) - internal rate of return (IRR). The final result of this task is the *cost-benefit analysis (CBA)* report.

Implementation Alternatives

1) Insourcing 2) Self-Sourcing 3) Outsourcing 4) Crowdsourcing

Two major approaches to the analysis and design of information systems:

1) Structured Systems Analysis and Design (SSAD) 2) Object-Oriented

Joint Application Design (JAD)

A collective activity involving users, top management, and IT professionals. Centers on a STRUCTURED WORKSHOP (called a JAD session) where users and system professionals come together to develop an application. Discuss system specifications Results in a final document containing definitions for data elements, workflows, screens, reports, and general system specifications

Request for Information (RFI)

A screening document for gathering vendor information and narrowing the list of potential vendors. An alternative to a full-scale RFP Advantage: - Much quicker Disadvantage: - Information is not as specific or thorough It can help manage the selection of vendors by focusing on the project requirements that are crucial to selecting vendors. Not suitable for complex projects because it can be used only for selecting three or four finalists from a list of candidates.

Request for Proposal (RFP)

A written document with detailed specifications that is used to request bids for equipment, supplies, or services from vendors. Usually prepared during the implementation phase. Advantage: - All vendors get the same information and requirements Disadvantage: - Drafting can take 6 to 12 months Contains detailed information about the: - functional - technical and - business requirements of the proposed information system. A crucial part of this process is comparing bids from single and multiple vendors

Systems Development Life Cycle (SDLC)

Also known as the "waterfall model" A series of well-defined phases performed in sequence that serves as a framework for developing a system or project. Phases of SDLC: 1) Systems Planning 2) Requirements Gathering and Analysis 3) Design 4) Implementation 5) Maintenance In this model, each phase's output (results) becomes the input for the next phase.

Conceptual Design

An overview of the system **Does NOT include hardware or software choices.**

3) Design Phase

Analysts choose the solution that is the most realistic and offers the highest payoff for the organization. Consists of three parts: i) conceptual design ii) logical design iii) physical design Output of this phase: A document with exact specifications for implementing the system, including: - files and databases - forms and reports - documentation - procedures - hardware and software - networking components and - general system specifications. For large projects in particular, CASE tools are helpful and MOST USED in this phase.

2) Requirements Gathering and Analysis (conceptual)

Analysts define the problem and generate alternatives for solving it. During this phase, the team attempts to understand the requirements for the system, analyzes these requirements to determine the main problem with the current system or processes, and looks for ways to solve problems by designing the new system. The team uses the information collected during this phase to: - understand the main problems - define the project's scope (including what it should and should not do) - and create a document called the "SYSTEM SPECIFICATIONS"

Feasibility Study

Analyzes a proposed solution's feasibility and determines how best to present the solution to management. Measure of how beneficial or practical an information system will be to an organization Should be measured continuously throughout the SDLC process It usually has five major dimensions: 1) Economic 2) Technical 3) Operational 4) Scheduling 5) Legal

Phased-in-Phased-out Conversion

As each module of the new system is converted, the corresponding part of the old system is retired. This process continues until the entire system is operational. Although this approach is not suitable in all situations, it can be effective in accounting and finance.

Object-Oriented Approach

Combines process and data analysis, and the line between analysis and design is so thin that analysis and design seem to be a single phase instead of the two distinct phases

Legal Feasibility

Concerned with legal issues including: - political repercussions and - meeting the requirements of the Information Privacy Act.

Technical Feasibility

Concerned with the technology to be used in the system. The team needs to assess whether the technology to support the new system is available or feasible to implement. Lack of technical feasibility: - can also stem from an organization lacking the expertise, time, or personnel to implement the new system - This is also called "a lack of organizational readiness"

Scheduling Feasibility

Concerned with whether the new system can be completed on time. Common Problem: - missing the deadline Minimize the Problem by: - using project management tools

Physical Design

Created for a specific platform, such as: - choosing Dell servers running Ubuntu Linux - Dell laptops running Windows 8 and Internet Explorer - Java for the programming language, and - SQL Server 2014 for the relational DBMS.

PERT and CPM techniques work by determining the ________ for the completion of a series of interrelated activities.

Critical Path

4) Implementation Phase

During this phase the solution is transferred from paper to action, and the team configures the system and procures components for it. Tasks: - Acquiring new equipment - Hiring new employees - Training employees - Planning/designing the system's physical layout - Coding - Testing - Designing security measures and safeguards - Creating a disaster recovery plan When an information system is ready to be converted, designers have several options: i) Parallel ii) Phased-in-Phased-out iii) Plunge (direct cutover) iv) Pilot

Self-Sourcing

End users develop their own information systems, with little or no formal assistance from the information systems team. These users might not know how to write programming code, but they are typically skilled enough to use off-the-shelf software, such as spreadsheet and database packages, to produce custom-built applications. Limitations: Managers concerned about end users' lack of adequate systems analysis and design background, and the loosening of system development standards

2) Requirements Gathering and Analysis (applied)

First Step: - Gathering requirements - Interviews, surveys, observation, and JAD approach Second Step: i) The team determines.... - What the new system should do. (________) - What data is needed for this process to be performed (________) ii) The team creates a document... - called "SYSTEM SPECIFICACTIONS" - document is sent to key users and task force for approval

1) Economic 2) Technical 3) Operational 4) Scheduling 5) Legal

Five major dimensions of a Feasibility Study:

Maintenance Phase

Information system is operating, enhancements and modifications to the system have been developed and tested, and hardware and software components have been added or replaced. The team collects performance data and gathers information on whether the system is meeting its objectives by talking with users, customers, and other people affected by the new system.

Advantage of the JAD approach:

It incorporates varying viewpoints from different functional areas of an organization to help ensure that collected requirements for the application are not too narrow and one-dimensional in focus

Logical Design

Makes the conceptual design more specific by indicating hardware and software, such as: - specifying Linux servers - Windows clients - an object-oriented programming language and - a relational DBMS. These choices usually require changing the conceptual design to fit the platforms and programming languages chosen.

1) Planning Phase

One of the most crucial phases of the SDLC model The systems designer must define the problem the organization faces, taking care not to define symptoms rather than the underlying problem. Analyst assesses the current and future needs of organization or a specific group of users. End result of this phase should giver users and top management a clear view of: - What the problem is - How the I.S. will solve the problem _________________________________________________________ Evaluating all potential systems that need to be implemented. A preliminary analysis of requirements for each is done. A Feasibility study is conducted for each system. Then the organization decides which ones are a "go" and proceeds to the next phase.

Outsourcing

Organization hires an external vendor or consultant who specializes in providing development services. Options: i) Onshore ii) Nearshore iii) Offshore Disadvantages: i) Loss of Control ii) Dependency iii) Vulnerability

Insourcing

Organization's team develops the system internally

1) Systems Planning 2) Requirements Gathering and Analysis 3) Design 4) Implementation 5) Maintenance

Phases of SDLC:

Pilot Conversion

The analyst introduces the system in only a limited area of the organization, such as a division or department. If the system works correctly, it is implemented in the rest of the organization in stages or all at once.

Operational Feasibility

The measure of how well the proposed solution will work in the organization and how internal and external customers will react to it. Major question to answer: - Is the information system is worth implementing?

Parallel Conversion

The old and new systems run simultaneously for a short time to ensure the new system works correctly. However, this approach is costly and can be used only if an operational system is already in place.

Plunge (direct cutover) Conversion

The old system is stopped and the new system is implemented. This approach is risky if there are problems with the new system, but the organization can save on costs by not running the old and new systems concurrently.

Crowdsourcing

The process of outsourcing tasks that are traditionally performed by employees or contractors to a large group of people (a crowd) through an open call. This has become popular with publishers, journalists, editors, and businesses that want to take advantage of the collaborative capabilities offered by Web 2.0. Example: InnoCentive

Project Management Tools and Techniques

These are employed to manage the complexity and keep the implementation plan under budget and on schedule. Helps system analysts: - solve scheduling problems - plan and set goals - highlight potential bottlenecks Software Includes: - Microsoft Project - Micro Planning International's Micro Planner These enable the systems analyst to study the: - cost - time and - resource impact of schedule changes Techniques Used: - PERT (Program Evaluation Review Technique) - CPM (Critical Path Method) - Gantt charts

Critical Path

This includes all those activities that are extremely crucial for the completion of the project, with zero slack time. If any of the activities is delayed, the entire project is delayed. Activities that are not on the critical path are more flexible and can be delayed without delaying the project.

Task force

This is formed to ensure an information system's success, users must have input in first four phases: - planning - requirements-gathering and analysis - design and - implementation Consists of representatives from different departments (including IT), systems analysts, technical advisors, and top management. This team collects user feedback and works toward getting users involved from the beginning. Using a this for designing an information system is similar to using the Joint Application Design (JAD) approach

What is the main goal of an Information System?

To deliver useful information in a timely manner to the right decision maker.

Computer-Aided Systems Engineering (CASE)

Tools that automate parts of the application development process. These tools are particularly helpful for investigation and analysis in large-scale projects because they automate parts of the design phase. Similar to Computer-Aided Design (CAD) tools used by architects and engineers. Their capabilities vary, but generally include: - Graphics tools - Dictionary tools - Prototype tools - Code Generators - Project Management tools CASE tools available: - CA ERwin Process Modeler - Oracle Designer - Visible System's Visible Analyst Outputs: - Specifications documents - Documentation of the analysis, including models and explanations - Design specifications with related documentation - Logical and physical design documents based on the conceptual design - Code modules that can be incorporated into the system

Structured Systems Analysis and Design (SSAD) Approach

Treats process and data independently and is a sequential approach that requires completing the analysis before beginning the design

Cost-Benefit Analysis (CBA)

Used to sell the system to top management Final result of cost-effective analysis Should include the following sections: - executive summary - introduction - scope and purpose - analysis method - recommendations - justifications - implementation plans - summary and - appendix items with supporting detail: > organizational charts > workflow plans > floor plans > statistical information > project sequence diagrams and > timelines or milestone charts.

Data Analysis

What data is needed for this process to be performed

Process Analysis

What the new system should do


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