Key Themes in IS Development

1. Chapter 4 Organisational Themes

2. Themes in IS development • Important themes in IS development have arisen over time, partly out of the debate over SDLC • organizational needs: systems approach, strategic IS, BPR, IS planning, project management, stages of growth • modelling of data, processes, objects • engineering and construction of information systems • software engineering • role of people in ISD: participation, expert systems, end-user computing, knowledge management, customer orientation • external development: packages, ERP, outsourcing

3. At the conclusion of this lesson the student will be able to: Describe system thinking. Define human activity system. Determine Information system strategy & ISP Determine Benefit realization Summarize BPR Restate several models pertaining to IS & organizational themes. Learning Objectives

4. a system is a collection of parts which interact with one another a system does something, or is for something the parts function so as to contribute to the operation of the system as a whole (synergy) the behaviour of the whole is not the sum of the behaviours of the parts, but arises from the interaction of the parts (emergence) the parts are organized in a hierarchy systems are open or closed to their environment materials move across the boundary of an open system open systems maintain a balance with the environment (homeostasis) through negative feedback open systems tend to increase in orderliness through internal elaboration (negative entropy) open systems are goal directed but non-deterministic: ends are achievable by a variety of means (equifinality) The concept of system

5. The organization as a system ENVIRONMENT /MARKET targets standards norms.. CONTROL external indicators actual performance OUTPUTS - products - services - waste INPUTS - materials - energy - information - components TRANSFORMATION PROCESSES BOUNDARY

6. Systems thinking (1/4) • Systems • Boundary • Environment • Open systems • Purpose • Soft systems

7. Systems thinking (2/4) • Systems thinking is a mental model that promotes the belief that the component parts of a system will act differently when isolated from its environment or other parts of the system. It includes viewing systems in a holistic manner. It promotes gaining insights into the whole by understanding the linkages and interactions between the elements that comprise the whole "system". • Systems Thinking recognizes that all human activity systems are open systems; therefore, they are affected by the environment in which they exist. Systems Thinking recognizes that in complex systems events are separated by distance and time; therefore, small catalytic events can cause large changes in the system. Systems thinking acknowledges that a change in one area of a system can adversely affect another area of the system; thus, it promotes organizational communication at all levels in order to avoid the silo effect.

8. Systems thinking (3/4) Systems thinkers consider that: • a "system" is a dynamic and complex whole, interacting as a structured functional unit • information flows between the different elements that compose the system • a system is a community situated within an environment • information flows from and to the surrounding environment via semi-permeable membranes or boundaries • systems are often composed of entities seeking equilibrium, but can exhibit oscillating, chaotic, or exponential growth/decay behavior

9. Systems thinking (4/4) • Systems thinking uses a variety of techniques that may be divided into: • Hard systems - involving simulations, often using computers and the techniques of operations research. Useful for problems that can justifiably be quantified. However it cannot easily take into account unquantifiable variables (opinions, culture, politics, etc), and may treat people as being passive, rather than having complex motivations. • Soft systems - Used to tackle systems that cannot easily be quantified, especially those involving people interacting with each other or with "systems". Useful for understanding motivations, viewpoints, and interactions but, naturally, it doesn't give quantified answers. Soft systems is a field that the academic Peter Checkland has done much to develop. Think systemically before proceeding systematically Source: Wikipedia

10. What is systemic thinking? Systemic thinking is: thinking in terms of situation-wide patterns anda simple technique for surfacing those situation-wide patterns What does “systemic” mean? Systemic means “situation-wide” – or “throughout the entire situation”. A systemic problem is a situation-wide problem – a problem that occurs throughout the entire situation. A systemic solution is a situation-wide solution – a solution that applies across the entire situation. The word systemic comes from the recognition that everything is part of a system – in other words, everything interacts with the things around it.  Systemic actually means “system-wide” or “throughout the system”, but many people can’t help thinking that system means “computer system,” so we talk in terms of “situation-wide” patterns instead of “system-wide” patterns. http://www.probsolv.com/prodsol/about/FAQ.html

11. Human Activity System • HAS is an assembly of people and other resources organized into a whole in order to accomplish a purpose. • The people in the system are affected by being in the system, and by their participation in the system they affect the system. People in the system select and carry out activities -- individually and collectively -- that will enable them to attain a collectively identified purpose. Source: http://www.isss.org/primer/bela6.html

13. The structure of human activity (Engeström, 1987, p. 78 from the page: http://www.edu.helsinki.fi/activity/pages/chatanddwr/activitysystem)

14. Information systems strategy • Efficiency • Cost-benefit • Competitive advantage • Effectiveness • Redefine the boundaries of particular industries • Develop new products or services • Change the relationships between suppliers and customers • Establish barriers to deter new entrants to marketplaces

15. Benefit realisation Benefit Realisation is the process of realising actual outcomes by breaking down strategic objectives via programmes and projects then monitoring the outputs to confirm intended benefits have actually been achieved Benefit realisation IS NOT only about whether the project delivered things on time to budget etc.

16. The Levels of Benefit Realisation Organisation success. Project success. Strategies implemented Economic & ‘Customer’ Value add Business Objectives are met financial, performance, Fitness for purpose Time, cost, quality results versus project plan. Project management success.

17. Porter’s framework of competitive strategy

18. Porter’s framework of competitive strategy • It deals with the industry and competitive dynamics • It highlights that competition is not simply concerned with the action of rivals • It facilitates discussion and is based on sound principles of industrial economics • It focuses on the few dominant forces necessary

19. Strategic role of IT (Earl, 1989)

20. IT strategies • Technology driven model • Competitor-driven model

21. Earl’s multiple methodology

22. Current systems audit grid Technical Quality: Reliable? Maintainable? Cost-Efficient? Business Value: Necessary? Easy to use? How often used?

23. Using the Grid Place systems in their boxes, using judgement, and factual analysis. A Low value + Low quality = Get Rid A High value + Low quality = Upgrade A Low value + High quality = Do we need it? A Highvalue + High quality = Ace area

24. Business process re-engineering (BPR) The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed (Hammer & Champy, 1993)

25. Reasonswhy organisations re-engineer • They face severe commercial pressures and have no choice • Competitive forces present problems unless the organisation takes radical steps to re-align business processes with strategic positioning • Management in the organisation regard re-engineering as an opportunity to take a lead over the competition • Publicity about BPR has prompted organisations to follow the lead established by others

26. Outcomes of BPR programmes • Flatter organisational structures • Greater focus on customers • Improved teamwork, leading to a more widespread understanding of the roles of others

27. BPR ‘slash and burn’ (Grover) Unfortunately, many corporations responded to reengineering by performing major work force reductions under the aegis of reengineering. Such efforts were not strategically driven, and led to firms losing vital components of the work force that reduced their ability to be creative and productive ... Optimizing process at the cost of people has been a major problem of reengineering

28. Framework of BPR (Melao and Pidd, 2000)

29. Information systems planning • Long-term planning • Medium-term planning • Short-term planning

30. Tasks of information systems strategy group • An assessment of the strategic goals of the organisation, which could be long-term survival, increasing market share, increasing profits, increasing return on capital, increasing turnover or improving public image • An assessment of the medium-term objectives to be used as a basis for allocating resources, evaluating managers’ performance, monitoring progress towards achieving long-term goals, establishing priorities • An appreciation of the activities in the organisation, such as sales, purchasing, research and development, personnel and finance

31. Tasks of information systems strategy group(continued) • An appreciation of the environment of the organisation, that is, customers, suppliers, government, trade unions and financial institutions, whose actions will affect business performance • An appreciation of the organisational culture relating to values, networks and ‘rites and rituals’ • An appreciation of the managerial structure in terms of the layers of management or matrix structure, types of decision made, the key personnel and types of information needed to support the key personnel in their decision making • An analysis of the roles of key personnel in the organisation

32. Planning guidelines (Lederer and Mendelow, 1989) • Develop a formal plan • Link the information systems plan to the corporate plan • Plan for disaster • Audit new systems • Perform a cost-benefit analysis • Develop staff • Be prepared to change • Ensure information systems development satisfies user needs • Establish credibility through success

33. Stages of growth (Nolan) • Scope of the applications portfolio • Focus of the IT organisation • Focus of IT planning and control • Level of user awareness • R L Nolan’s organizational stages model of IT growth • well known, influential • pattern repeats with each major innovation - no short-cuts! • evolutionary model - shows logic, but not mechanisms of change

34. Stages of growth

35. Features of the Nolan stages organization scattered technical specialists start of user-oriented services middle management control computer centre/ user account teams database admin/ information centre information resource management control absent or lax uncontrolled spread of IT formal project/ operations control more tailored to organization shared data/ linked systems within corporate planning applications selected for efficiency gain proliferate indiscriminately upgraded, restructured rebuilt to fit DBMS becoming more integrated aligned to org. structure users few involved moreinvolved, but lack skill blamed for failures, excluded involved in design, becoming accountable responsible for own systems joint responsibility with IT Dept initiation contagion control integration data admin. maturity initiation contagion control integration data admin. maturity

36. Stages of growth (Hirschheim, et al. (1988) • Delivery • Re-orientation • Re-organisation

37. Stages of growth (Galliers and Sutherland, 1991) • Ad hocracy • Starting the foundations • Centralised dictatorship • Democratic dialectic and cooperation • Enrepreneurial opportunity • Integrated harmonious relationships

38. Flexibility (Evans, 1991) • Pre‑emptive manoeuvres creating options, inflicting surprise or seizing initiatives • Protective manoeuvres insuring against losses, hedging, or creating buffers against adverse conditions • Corrective manoeuvres the ability to recover from adverse situations and learn from mistakes Democratic dialectic and cooperation • Exploitive manoeuvres capitalising on opportunities and consolidating advantages

39. Flexibility • The designers do not know what the information system is to do. • The organisation may not know how user requirements will develop after the information system has been introduced. • The designers may not be certain that the chosen development methodology will deliver precisely what is required.

40. Project management • Critical path or PERT analysis • CoCoMo • Function point analysis • Project 2000 • PRINCE

41. End of Chapter 4 Thank You for Your Attention