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Chapter 12. Implementing Business/IT Solutions. Section 1 Developing Business Systems. II. The Systems Approach. Uses a systems orientation to defining and solving problems and opportunities Problem Solving – there are specific steps in solving any problem

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Chapter 12

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chapter 12

Chapter 12

Implementing Business/IT Solutions


Section 1

Developing Business Systems

ii the systems approach
II. The Systems Approach

Uses a systems orientation to defining and solving problems and opportunities

Problem Solving – there are specific steps in solving any problem

Recognize/Define a Problem or Opportunity – recognize it exists

Develop and Evaluate Alternative System Solutions – what are the different ways to solve this problem?

Select the Best System Solution – decide which alternative is best

Design the Selected System Solution – design the system for the chosen solution

Implement and Evaluate the Success of the Designed System – put the solution into effect and monitor results for the outcome

ii the systems approach4
II. The Systems Approach

Systems Thinking

vi systems design
VI. Systems Design

The Prototyping Process

iv starting the systems development process
IV. Starting the Systems Development Process

Systems development can be very costly, investigations are made to determine whether to proceed

Feasibility Studies – identify needs, resources, costs, benefits

Operational Feasibility – will the proposed system fit existing business environment and objectives?

Technical Feasibility – degree to which current technical resources can be applied to the new system

Human Factors Feasibility – assess the degree of approval/resistance to the new system

iv starting the systems development process9
IV. Starting the Systems Development Process

Economic Feasibility – the extent to which the proposed system will provide positive economic benefits to the organization

Cost/Benefit Analysis – do the benefits justify the costs?

Tangible Costs/Benefits – can be calculated/quantified (hardware, software, increase in payroll)

Intangible Benefits – hard to calculate (customer approval, political feedback)

Legal/Political Feasibility – what are the legal/political ramifications of the new system?

cost benefit analysis
Costs versus Benefits
  • Tangible costs and benefits can be quantified with a high degree of certainty
    • Example: decrease in operating costs
  • Intangible costs and benefits are harder to estimate
    • Example: improved customer service
Cost/Benefit Analysis

Assess Financial Viability Net Present Value

  • PV = Cash flow amount
  • (1 + interest rate)n , where
    • interest rate = required return
    • n = number of years in future
  • NPV =  PV(future cash inflows) –  PV(future cash outflows)

Assess Financial Viability Return on Investment


PV(cash outflows)

Generally, if NPV>=0,

Project is OK

If NPV < 0,

Project is


vi systems design14
VI. Systems Design

Create a new system to solve the problem/opportunity

Prototyping – create working models of the proposed system

The Prototyping Process – prototypes are developed quickly for trial by users to obtain user feedback

User Interface Design – critical because the interface is the part of the systems closest to the user

System Specifications – listing of elements that formalize the design

tracking tasks using gantt chart
Tracking Tasks Using Gantt Chart

Task Week

2 3 4 5 6 7 8 9 10 11 12 13

tracking tasks using pert chart
Tracking Tasks Using PERT Chart

Go to Library

4 weeks

Select and

purchase book

1 week

Skim book

3 weeks

Write Phase One

2 weeks

Go to Bookstore

4 weeks

Write Phase Two

3 weeks

Read book carefully

3 weeks


Section 2

Implementing Strategic Business Systems

ii implementing new systems
II. Implementing New Systems

May be difficult and time-consuming

The Implementation Process

hardware evaluation factors
  • Cost
  • Reliability
  • Compatibility
  • Technology
  • Ergonomics
  • Connectivity
  • Scalability
  • Software
  • Support
Hardware Evaluation Factors
software evaluation factors
  • Efficiency
  • Flexibility
  • Security
  • Connectivity
  • Maintenance
  • Documentation
  • Hardware
Software Evaluation Factors
is services evaluation factors
  • Systems development
  • Maintenance
  • Conversion
  • Training
  • Backup
  • Accessibility
  • Business Position
  • Hardware
  • Software
IS Services Evaluation Factors
v other implementation activities
V. Other Implementation Activities

Testing – testing and debugging are important, does the system work as it should?

Data Conversion – new implementations often require replacing software and databases

Documentation – an important means of communication, often overlooked

Training – training users is vital, usually under-budgeted, and expensive

v other implementation activities23
V. Other Implementation Activities

System Conversion Strategies

v other implementation activities24
V. Other Implementation Activities

System Conversion Strategies – cutting over to the new system

Parallel – most expensive but safest, run both systems until everyone is satisfied, then turn off old system

Pilot – let only a select few users use the new system until they are happy, then implement the new system for everyone; best user representation can be selected for the trials

Phased (Modular) – gradual conversion one module at a time, combines best of both direct and modular while minimizing risks

Direct – simplest but most dangerous method, turn off the old system and turn on the new one

v other implementation activities25
V. Other Implementation Activities

Postimplementation Activities – Use and Maintenance – the longest and most costly phase of a system’s life; correct errors, improve performance, adapt to changes in the business environment

Systems Maintenance – making changes to the system

Corrective – fix errors

Adaptive – adding new functionality

Perfective – improve performance

Preventative – reduce chances of future system failure

Postimplementation Review – ensure the new system meets established business objectives