1 iadm 410 management information systems what is systems development?

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IADM 410 MANAGEMENT IADM 410 MANAGEMENT INFORMATION SYSTEMSINFORMATION SYSTEMS

What is Systems What is Systems Development?Development?

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Have you started your Project yet?

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Agenda

What is Systems Development (SDLC)? What, why? (30 mins)

Break (10 mins)

Approaches to and Tools of Systems Development? How? (20 mins)

The future (20 mins)

Case Study (40 mins)

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A definition ... Information System

Input

ProcessClassifyArrange

Calculate

Output

Information System

Organisation

EnvironmentCustomers Suppliers

RegulatoryAgencies Competitors

Shareholders

Feedback

Interrelated componets working together to collect, process, store, and disseminateinformation to support decision-making, coordination, control, analysis, and visualisation in an organisation

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A system has a life cycle

Development

Operation (Maintenance)

Obsolescence

Implementation

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A system has a life cycle … that must be re-engineered

Value

Time

Systems development aims at improving / re-engineering systems over time to ensure that they keepon adding value

S-curves

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A traditional methodologyA traditional methodologyfor developing an informationfor developing an informationsystem using a phased approach: system using a phased approach:

Project DefinitionProject DefinitionSystems AnalysisSystems AnalysisDesign Design Programming (Building)Programming (Building)Installation (Implementation)Installation (Implementation)Post-Implementation (Assessment)Post-Implementation (Assessment)

in order to :in order to :

improve service/reduce costsimprove service/reduce costs open new channels open new channels

– thereby transformingthereby transformingcompetitive landscapescompetitive landscapes

A traditional methodologyA traditional methodologyfor developing an informationfor developing an informationsystem using a phased approach: system using a phased approach:

Project DefinitionProject DefinitionSystems AnalysisSystems AnalysisDesign Design Programming (Building)Programming (Building)Installation (Implementation)Installation (Implementation)Post-Implementation (Assessment)Post-Implementation (Assessment)

in order to :in order to :

improve service/reduce costsimprove service/reduce costs open new channels open new channels

– thereby transformingthereby transformingcompetitive landscapescompetitive landscapes

Systems Systems DevelopmenDevelopment Life Cyclet Life Cycle

Systems Systems DevelopmenDevelopment Life Cyclet Life Cycle

A definition ...

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Some Examples

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Some Examples

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… While a global, standardised network was developing

1970s 1990s1980s

EFT

EDI

GroupWare

Internet

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Approaches , Methods and Approaches , Methods and ToolsTools

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Approaches

Traditional Approach (SDLC)

– WCA (Work Centered Analysis)

Alternative approaches:

– Prototyping

– Application Software Packages

– End-user development

– Outsourcing

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Approaches: Prototyping

Process of building an experimental system quickly and inexpensively for demonstration and evaluation so that users can determine information requirements

Prototype = a preliminary working version of an information system for demonstration and evaluation purposes

Identify basicrequirements

Develop a workingprototype

Use the prototype

Revise and Enhance the Prototype

User satisfied

Operationalprototype

Yes

No

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Methodologies and Tools

Development methodology = a collection of methods, one or more for every activity within every phase of a development project

Traditional Structured Methods:

– Structured Methodology– Flowcharting

Recent methods:

– Object-Oriented Software Development

– Computer Aided Software Engineering (CASE)

– Rapid Application Development

– Software Reengineering

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The future …….The future …….

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The simultaneous wide availability of cheap equipment, networks and content creates a virtuous circle

PC distribution is widespread

Handheld internet devices are beginning to be available

Mobile communication is widespread

Communications bandwidth is growing fast

Convergence of PC, PDA and television media is imminent

Wide ranging content provision is imminent

This is set to enable rapid e-business growth

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Suddenly, everybody can communicate and create content

1970s 1990s1980s

EFT

EDI

GroupWare

Internet

WWW

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New Systems Development Process

Redefine common business principles (because of the New Economy)

Define various value creation activities (Core / Non-core)

Separate various level of commitment (High / Low)

Build internal systems for high value / high commitment activities

Insource / Outsource appropriate activities

Establish a system of rewards based on achievement of pre-defined goals

Continuously build and nourish the skills and competencies required for these activities.

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Some terminology – Virtual Company

The most successful businesses become virtual companies

The figure to the left shows an example of a sale in a business that has net used in/outsourcing to become virtual

The next slide shows a business that has become virtual.

Which of the two sales do you think is more efficient and effective?

CaptureOrder

Invoice

Shipped Order

Order FulfillOrder

Billorder

CashCollect

payment

CustomerBusiness

Customer, Salesand Product Info

Database

Product and Inventory Info Database

Customer, Sales andReceivables Info Database

Customer

SalesRep

Fullfilment

clerk

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Some terminology – Virtual Company

CaptureOrder

Shipped Order

Order FulfillOrder

Billorder

Cash

Collect payment

Customer Business

Customer, Salesand Product InfoDatabase

Product and Inventory Info Database

Customer

Sales Rep

Supplier

Intermediary

Fulfillment

A B

C

D

E F

Read the notes (Notes Pages) fora description of the sale process

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Case StudyCase Study

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Systems Development Case Study : Fedex

Read the following case study

– Fedex: Are users involved in your project?

Answer the questions below.

– How does Fedex do business?– Why do you think did so many problems arise with Fedex’s Pilot

Scheduling System?– Identify an example of a prototype in this case study? Why is the

use of a prototype a good thing?– If you were in charge of implementing a new system for Fedex,

how would you prevent such problems?

Use 10 minutes to answer the first question. We will discuss the answer before we break up tonight

Submit your typed answers to the last two questions at the next Workshop (Week 3)

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Federal Express

Fedex

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Some FedEx statistics ...

FedEx is the same size as Fortune 500 Company

620 aircraft; 35,000 vehicles

3.2m packages per day to 210 countries

Major hubs

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FedEx was first to provide access via the Internet ...

7.9 million “hits” in August 98

1.9 million tracked packages

From 145 countries

Links from over 30,000 sites

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PACKAGES.PACKAGES

PROD. AVAIL.

ORDERSORDERS

BuyersBuyers SuppliersSuppliersPROD. AVAIL.

FedEx has moved into their customers value chain

Still fast Still Time Definite Information Intensive

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FedEx Net

Order Administration

EDI messagingfrom

Customer’s own systems

Order Entry Capabilities

Web enabled catalog front-ends

Logistics front-end

EDC OfficeOrder Entry

Logistics Internet based

front-end Virtual replenishment

Lo

gis

tics

Sy

stem

s

FedExShipping

andTrack

&Trace

Glo

bal V

isib

ility

Integrate to othersSAP,

BAAN,Peoplesoft, Manugistics

i2, etc.

P

erf

orm

an

ce

mea

su

rem

en

t &

MIS

re

po

rtin

g

Mail/Phone/Fax

Warehouse Management

Customs Administration

Transportation Management

Billing & Receivables

And for the more technically minded members of our audience ...

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IS HistoryIS History

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Fedex Case Study

Background Federal Express Corp. recently decided to install a new pilot scheduling

system from Ad Opt Technologies of Montreal. The system had received rave reviews from such airlines as Sabena, Air Canada, Northwest, and Delta, so Fedex purchased it and had I in production in three months. Loud pilot protests began immediately. The system did schedule all the routes efficiently, and the pilots were back at their home base at the end. But the pilots had two complaints. The schedules were strange and inconvenient, and the pilots found them difficult to follow. And just as important, pilots had lost the ability to make schedule requests – the old system build schedules from such pilot requests.

The problems arose because the speed of installation left no time to consider the pilots or to adapt the systems the Fedex’s specific needs. The pilots were never consulted before the system was implemented. TWA, however, had tested its system for a year before putting it into production, and had involved their pilot union representatives from the beginning, according to Ad Opt’s CEO, Tom Ivaskiv. At last report the Fedex Problems were being solved slowly, taking many months. One negative effect according to management was the way the system unified the pilots just as they were negotiating a new contract with Fedex. The company and Union found they had another difficult bargaining issue to settle.

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Fedex Case Study Questions

Questions

Why do you think Fedex had so many problems with it’s new Pilot Scheduling System?

Identify an example of a prototype in this case study? Why is the use of a prototype a good thing?

If you were in charge of implementing a new system for Fedex, how would you prevent such problems?

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1 iadm 410 management information systems what is systems development?

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