EXECUTIVE SUMMARY

The diagram below represent the life cycle for the development of an information system.

SEVEN PHASE OF SOFTWARE DEVELOPMENT LIFE CYCLE

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Software Development Life

Cycle

Information systems are there to support the operational and managerial decision making needs

of an organization. Before we delve into that, I would just like to briefly explain the three major

classes of information systems:

1. Formal information systems: these systems are designed to assist us in achieving our

company goals. They are based on the management and information levels in an

organization.

This Pyramid structure depicts the types of systems that are applicable at their respectable

hierarchical level.

2. Informal information systems: these systems are designed to provide information to the

employees of an organization for solving their work-related problems.

3. Computer-based information systems (CBIS): the computer is the central element of most

of the present day formal and informal information systems. So almost all DSS, MIS and

DPS applications are computer based. Systems analysis and design involves the analysis,

design and implementation of CBIS.

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Decision Support System (DSS)

Management Information System (

MIS)

Data Processing System (DPS)

TABLE OF CONTENTS PAGE

INTRODUCTION TO THE BOARD 6

BACKGROUND OF COOL-CARE MANUFACTURERS 6

CRITICAL ANALYSIS AND EVALUATION OF THE

EXISTING SYSTEM

6 - 7

PART A – SYSTEM ANALYSIS 8 - 9

PART B – SYSTEMS DESIGN AND DEVELOPMENT 9 - 15

PART C – SYSTEMS IMPLEMENTATION 16 - 17

PART D – SYSTEMS MAINTENANCE 17 - 20

BIBLIOGRAPHY 21

APPENDICES 22 - 27

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INTRODUCTION TO THE BOARD

In the executive summary I’ve pointed out the phases that the development of a system will

likely follow. But in this report we would like to draw your attention to the specific phases

which are most crucial. Hence the Systems analysis, design, development, implementation and

maintenance phases will be discussed. We will walk you through the process pointing out the

drawbacks of our current system, then we will suggest recommendations and we will support

those recommendations with advantages. Basically this whole exercise is to assist Cool-Care in

achieving its goals, growing and maintaining a good position in the market and developing

ourselves into a well orientated and developed organization. Hopefully the systems that we

project today will enlighten you on what we need to do. We will not go into depth with

discussing each aspect, but we have included an appendix which explains and goes into more

detail should one require to do so.

Background of Cool-care manufacturers

Cool – Care Manufacturers was established in May 1997 is almost thirteen years in existence.

Cool – Care manufactures compressors which are used in motor vehicle air-conditioning units.

We are based in the capital of Botswana, being Gaborone. The industry that we operate in is not

that big in Botswana, hence the competition is minimal. We do, however, deal with International

companies some of which are Nissan, Toyota, Mazda, Daewoo, Suzuki and Hyundai. Mr.

Michael Tabengwa provides employment to 412 people, which are headed by 4 Departments, out

of which there are 34 managers. Therefore, managers head about ±12 people. Our business

process consists of 4 departments, viz.; Human Resources, Operations, Sales and Finance.

The existing system – a critical analysis and evaluation

Dealing with these companies has given us exposure to the extent that we are able to know and

meet the demands and requirements of these clients. From this information we know that Cool-

Care manufacturers are a medium sized enterprise. There are about 113 personal computers

which imply that not all employees have access to computers, which in some light maybe

acceptable up to the point where obviously we have physical labourers who perform the physical

job of manufacturing and putting the compressors together. The operating system that we are

currently utilizing is Pastel Accounting Software on Microsoft Windows XP. We also do not

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have a current website, nor do our employees have access to the internet or intranet. Our filing

systems are currently manual.

We shall focus on those aspects that we feel should be addressed which are giving us challenges

in our organization.

Our first challenge would be the strategic business challenge that Cool Care faces. We must

admit that our organization is not digitally equipped. We are in existence for thirteen years and

we have not yet adapted and modified our systems to modern day technology. For us, here at

Cool Care, this is challenging in the way that we do not have that competitive edge, we are

digitally backward regarding the information systems that we are currently using, and we have

not made use of the internet as yet. In order for us to combat this challenge in particular we need

to firstly upgrade our information system.

Secondly, the globalization challenge that Cool Care faces is that we require a business process

that will integrate all the functions in our organization. We will aim to manufacture the best

product at the lowest price so that our clients don’t go elsewhere. In brief our business process is

not complicated and it shouldn’t be complicated, but our business process is not complete. The

departments that we do have in operation are: Human Resources, Operations, Sales and Finance.

These are our functional areas and our aim of this project is to increase the efficiency of our

existing process by working smart and automating them. We aim to accomplish this by

introducing an enhanced information system.

Thirdly, the information architecture and infrastructure challenge will be discussed in Part A and

Part B respectfully.

We currently have a Peer to Peer system and it has been proven that although there is no

theoretical limit to the size of this type of network, performance drops significantly and security

becomes a major headache

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Part A

Feasibility study – theory – part A – System analysis

The feasibility study and system investigation forms part of the 2nd stage of the life cycle of a

system. In order to establish the feasibility of a future technical system, it will be necessary for

the analyst to investigate the current system and its work practices. In this way it would become

clear to us about what functions are expected from the new system.

The main purpose of the system investigation is to establish the feasibility of introducing a new

computer system. This will give us a brief overview about the likely costs and benefits of the

proposed system. The feasibility of the project must be done with minimum amount of

expenditure, but then again by having less time spent on the feasibility study one may not have

the true reflection or the most accurate assessment of the study. However, analysts recommend

that there rather be an extensive feasibility study in more unusual and innovative projects. Since

analysts are more familiar with projects such as the computerization of standard accounting

systems, the feasibility study will be reasonably quickly and accurate.

The objectives of a feasibility study are:

To identify the deficiencies of the current system

To determine objectives of the proposed system

To acquire a sense of scope of the system

To identify the responsible users

To determine whether it is feasible to develop the new system

The cost/benefit analysis (see appendix A)

This is the major activity of the feasibility study for determining the economic feasibility of the

project.

The project leader has confirmed that the costs include those of purchasing hardware, system

software, stationery, and so forth. We also note that costs are classified as either tangible or

intangible. Tangible costs would include equipment costs, material costs, personnel costs,

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facility costs, operating costs and perhaps travelling and consultancy costs. Intangible costs

include costs of breakdown of online system, and problems faced by employees during

implementation of the new system. If the whole project is dropped at this stage, there will have

been very little cost to date, which would be classified as sunk cost. See diagram below.

1 2 3 4 5 6 7 8

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Accumulated CostCost of Stage

Key to Table

1. Determination of scope and objectives 5. Detailed design

2. Systems investigation and feasibility 6. Implementation

3. Systems analysis 7. Changeover

4. Systems design 8. Evaluation and maintenance

Part B

The IT Infrastructure designing and development

The following is a list of Software Requirements Specification documents

Functional requirementsPerformance requirementsExternal interface requirements

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Design constraints

This not only involves the hardware and software components, but it also includes the services. The following is a list of services that are needed to computing hardware and software:

Computing services: provide platforms that ensure a coherent digital environment Telecommunications services: determine appropriate data voice, and video that connect

employees, customers and suppliers Data management services: not just store, but manage massive amounts of corporate data

and make it available for users to analyze Application software services: enterprise resource planning, customer relationship

management, supply chain management and knowledge management systems Physical facilities management services: physical installation of computing,

telecommunications, and data management services IT management services: plan and develop infrastructures, coordinate IT services among

business units, account for IT expenditure, and provide project management services IT standards services: develop policies that ensure interoperability of all IT infrastructure

components IT education services: train employees to properly use IT investments IT research and development services: research future IT projects and investments

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This flowchart depicts the infrastructure of Cool-Care

Networking and telecommunication options

The network configuration or topology is the physical shape of the network, the layout of linking stations. A node is a workstation. A bridge is a connection between two similar networks. Protocols are software implementations providing support for network data transmission. A server is a micro or a peripheral performing tasks like data storage within a LAN. Network servers are of several types. A dedicated server is a central computer used only to manage network traffic. A computer that is used as a local workstation is called a non-dedicated server.

The most common types of network topologies are:

The hierarchical topology – the software to control the network is simple and the topology provides a concentration point for control and error resolution. However, it also presents potential bottleneck and reliability problems. Network capabilities may be completely lost if there is a failure at a higher level.

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Internet Platforms

Computer Hardware Platforms

Operating Systems Platforms

Enterprise Software Applications

Networking / Telecommunications

Consultants and System Integrators

Data Management and Storage

The horizontal topology – is popular in LANs. Its advantages include simple traffic flow between devices. This topology permits all devices to receive every transmission; in other words, a single station broadcasts to multiple stations. The biggest disadvantage is that because all computers share a single channel, a failure in the communication channel brings down the whole network. Redundant channels get around this problem. Another disadvantage with this topology is that the absence of concentration point makes it hard to resolve problems; it’s more difficult to isolate faults to any particular component. A bus network usually needs a minimum distance between taps to reduce noise.

The star topology – a very popular configuration. The software for star topology is not complex and controlling traffic is simple. All traffic emanates from the hub or the centre of the star. In a way, the star configuration is like the hierarchical network, but its distributed processing capabilities are more limited. The hub routes data traffic to other components. It also isolates faults, which is relatively simple in the star configuration. Like the hierarchical network the star is subject to bottleneck at the hub and may have serious reliability problems; the problem can be minimized by establishing a redundant backup of the hub node. A star network is best when there is a need to process data at many locations with day end distribution to different remote users. Here, information for general use is sent to the host computer for processing. It’s easy to identify errors in the system, since each communication must go through the central controller. Maintenance is also easy if the central computer fails the network. There’s a high initial cost in setting up the system because in addition to the cost of the host each node requires hook up to the host computer. Expansion is also easy, all we need to do there is run a wire from the terminal to the host.

Data in a ring network flows in a circle, usually in one direction only. Bottlenecks like those found in the hierarchical or star networks, are relatively uncommon. The primary disadvantage is that a single channel ties all the components in a network; the entire network can be lost if the channel between the two nodes fails. Establishing a backup channel can alleviate this problem. The system is always recurrent. A ring network is more reliable and less expensive when there is minimal communication between micros. This type of network is best when there are several users at different locations who have to continually access updated data. This network also permits accountants within the firm to create and update shared databases.

The mesh topology – is very reliable, though complex. Its structure makes it relatively immune to bottlenecks and other failures. The multiplicity of paths makes it relatively easy to route traffic around failed components or busy nodes.

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Servers

A dedicated server computer typically has a faster processor, more memory, and more storage space than a client because it might have to service dozens or even hundreds of users at the same time. High-performance servers also might use two or more processors, use the 64-bit version of the PCI expansion slot for server-optimized network interface cards, and have redundant power supplies. The server runs a special network operating system—such as Windows NT Server, Windows 2000 Server, Windows Server 2003, Linux, Unix, or Novell NetWare—that is designed solely to facilitate the sharing of its resources. These resources can reside on a single server or on a group of servers. When more than one server is used, each server can "specialize" in a particular task (file server, print server, fax server, email server, and so on) or provide redundancy (duplicate servers) in case of server failure. For very demanding computing tasks, several servers can act as a single unit through the use of parallel processing.

LANs and WANs

The major differences between WANs and LANs are that their topologies usually take different shapes. A WAN structure tends to be more irregular. Since an organization generally leases lines at a considerable cost, it tries to keep the lines fully utilized. To do this, data for a geographical area is often routed through one channel; hence the irregular shape of the WAN network.

LANs are flexible, fast, and compatible. They maximize equipment utilization, reduce processing cost, reduce errors, and ease information flow. LANs use ordinary telephone lines, coaxial cables, fiber optics, and other devices like interfaces.

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Communications Security

Communication systems are used to link data between two or more sites. The communication system should be reliable, private and secure. Communication systems are often affected by environmental factors, hardware malfunction, and software problems.

Data storage – files, records and lists

Files may be physically stored on disk in the following ways: Sequentially: records are physically ordered by some field such as employee number, Randomly: records are stored at a physical address computed by an algorithm working on

a field value such as the employee number, Indexed: records are physically stored randomly with a sequentially ordered index field

and a pointer to the physical location of each record, Indexed-sequential: records are physically stored sequentially ordered by some field

together with an index which provides access by some, possibly other, field.

Backup

The best practices for disaster recovery include:

Mind the enterprise architectures Monitor the quality of computer networks that provide data on power suppliers and

demand Make sure the networks can be restored quickly in the case of downtime Set up disaster recovery plans Provide adequate staff training, including verbal communication protocols ‘so that

operators are aware of any IT-related problems that may be affecting their situational awareness of the power grid.’

Security

Security professionals are under increasing pressure to do the job right and cost effectively as networks extend beyond organizations to remote users, partners, and customers, and to cell phones. A good information architecture includes a strong information security plan, along with managing user access and up-to-date antivirus software patches.

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Systems Functionality

This diagram depicts a typical waterfall process

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Identify current and anticipated capacity requirements

Identify current and anticipated storage requirements

REFRESH HARDWARE (SERVER)

Identify components of current peer to peer

Identify components for client/server network

Determine Internet Package by anticipating Internet usage

Engage Internet Service Providers

Upgrade Network

Establish Connection to Internet

Part C – System Implementation

Systems Testing

This is the most vital to the success of a candidate system. Even though during the development phase, programmers test the programs, but it is not generally tested in a systematic way. During the development phase, the programmers concentrate more on removing syntax and some logical errors of programs and neither compare the outputs with requirements nor test the complete system. Programmers use different types of testing but for now we will go through the process of testing. The different types of testing are discussed in Appendix C.

The process of testing

1. Preparation of test plan: this is the first step of testing the process. The plan is a general document for the project which contains the following:

Identification and specification of test unit; Software features to be tested, e.g., performance, design constraints; Techniques used for testing; Preparation of test data; Schedule of each testing unit; Identification of persons responsible for each activity.

2. Specification of test cases: this is the next major step. Here, test data is prepared for testing each and every criteria of a test unit along with the specifications of conditions and expected outputs. Selecting the test cases is a very difficult process for doing it manually. Some data flow analysis tools help in deciding the test cases.

3. Execution and analysis of test cases: all the test cases are executed and analyzed by the analyst to see whether the system is giving expected outputs for all the conditions or not.

4. Special system tests: besides testing the normal execution of system, some special tests are also needed to be performed. These specials tests include:

Peak lead test: this test determines whether the system can work efficiently during peak of its processing demand or not.

Performance test: this test determines the response time of various operations of the system.

Storage test: this test determines the storage capacity of system under all possible situations.

Recovery test: this test determines if data is lost for whatever reason, whether it can be recovered successfully or not.

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Implementation strategy

This stage entails converting the hardware, software, and files to the new system and training the users. The conversion process is the transition from the old system to the new one. It involves converting hardware software and files. There are four strategies for handling the conversion:

a) Direct implementation – where the user stops using the old system and begins using the new one. The risk here is if the old system is discontinued, then there is nothing to fall back on.

b) Parallel implementation – where the old and new systems are operated side by side until the new system has shown that it is reliable, at which time the old system is then discontinued. This is a cautious approach, so if the new system fails, the user can always go back to the old one. The drawback with this method is that the expense increases to keep two systems running at the same time.

c) Phased implementation means that parts of the new system are phased in separately – either at different times or all at once.

d) Pilot implementation – means that the entire system is tried out but by only some users. Once the reliability has been proved, the system is implemented with the rest of the intended users. The pilot approach still has its risks, since all of the users of a particular group are taken off the old system. Hence, the risks are confined to a small part of the organization.

Resolution of problems

Training of staff, online training, classroom training, a call centre to deal with queries

Part D

Maintenance procedures

We know that as a user’s requirements may change in future, it becomes essential for the developer to maintain the system. After completion of the implementation phase, the software is required to be properly maintained. If this is not the case, it may fail too. Therefore, generally more than 50% of total software development time is spent in maintaining the system.

Maintenance entails improving and updating the software in response to the changes in the organization. It includes many activities such as:

Correcting design errors;

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Correcting coding errors; Updating documentation and test data: Adding, modifying or redeveloping the code; Regular acceptance and validation testing.

Maintenance can be quite labour-intensive and expensive with regards to the software development phase. A system may become difficult to be maintained if it is not properly designed. An object-oriented system is considered easier t be maintained due to its feature of reusability of the code. Maintenance costs can be reduced by making a maintenance reduction plan. This plan includes maintenance management and software modification audits. Maintenance Management Audits evaluate the quality of the maintenance effort, while Software Modification Audits evaluate and update the programs.

With regards to outsourcing of software, the norm of most businesses is to purchase these software applications from external sources. There are three external sources of software: software packages from a commercial software vendor, software services from an online service provider, and outsourcing custom application development to an outside software firm, often offshore firms in low-wage areas of the world. If we decide to outsource our software we will require a service level agreement which would state the responsibilities of the service provider and the nature thereof.

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BEFORE ELECTRONIC DATA INTERCHANGE

COOL-CARE MANUFACTURERS TOYOTA (CLIENT)

GOODS

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ORDER

INVOICE/ DELIVERY NOTE

STATEMENT

GOODS RECEIVED NOTE

AFTER ELECTRONIC DATA INTERCHANGE

COOL-CARE MANUFACTURERS TOYOTA (CLIENT)

ELECTRONIC ORDERS

EDI INVOICE/DELIVERY NOTE

GOODS

PAYMENTS

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BIBLIOGRAPHY

Business Driven Technology, 2009, 3rd Ed, by Baltzan, Phillips, Haag, McGraw Hill Business Information Systems, 1998, 3rd Ed, by Graham Curtis Dynamic Auditing, A student edition, 2004,7th Ed., by Marx, Van Der Watt, Bourne,

Hamel, Lexis Nexis, Butterworths Management Information Systems, 2005, by Ashok Arora, Akshaya Bhatia Management Information Systems – Solving business problems with Technology, 2000,

2nd Ed, by Gerald V.Post and David L. Anderson Management Information Systems – Managing the digital firm, 2010, 11th Ed., by

Kenneth C.Laudon, Jane P.Laudon Management Information Systems study guide, 2010, Mancosa

Websites

Upgrading and Repairing PCs, 15th Anniversary Ed. By Scott Mueller, Published by Que on 15 August 2003

Exforsys Inc. by R.Sripriya

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APPENDICES

Appendix A

Analysts usually consider 3 main areas – economic, technical and organizational feasibility.

Economic feasibility

The economic feasibility of a project is basically to determine whether or not the costs

incurred in respect of the project are justified to the benefits expected, and if this is not

the case then the project is unlikely to be undertaken.

The costs that would be associated with a computer project are briefly outlined below:

Systems analysis and design – these are the cost of the analyst which is also taken

into account during the total cost of the project.

Purchase of hardware – we may decide to either lease or rent the hardware if

management feels that purchasing the hardware is too costly.

Software costs – these costs are difficult to estimate due to the fact that

management may decide to either develop the software from scratch to suit our

organization using fourth generation tools (this may be costly) or we may

purchase the software in the form of an application package.

Training costs – if a new project is implemented we need to train our staff to use

the new system.

Installation costs – this cost we will have to incur should we require to build a

new room to lay the cable and alter the working environments.

Conversion and changeover costs – this is basically the changeover that we would

have to undergo to move the data in a secure mode from the old system to the new

system.

Redundancy costs – if management comes to a point where we need to replace

people with computerized systems, then redundancy money has to be paid.

Operating costs will include:

- Maintenance costs for hardware and software;

- Costs of power, paper and so on;

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- Costs associated with personnel to operate the new system – for

example, computer centre staff, data input clerks and so on.

Economic benefits

One must note that benefits will vary from system to system and because the system has

not yet been implemented we cannot measure the benefits, however we know from

research, the following benefits can be expected:

Savings in labour costs – these maybe be predictable allowing for uncertainties in

future wage rates and so on.

Benefits due to faster processing – examples of these might be a reduced debtor

period as a result of speedier debtor processing, or reduced buffer stock due to

better stock control. These may be estimated.

Better decision making – compared to a manual system, the information provided

will be more accurate, quicker and cheaper to retrieve.

Better customer service – although customer service is not really quantifiable, it

gives organizations a competitive advantage.

Error reduction – the benefits of this may be estimated if current losses associated

with erroneous processing are known.

Technical feasibility

With regards to the technicality of the project, we need to plan and project how much

Cool-Care is prepared to invest in a computer solution. The following categories are

important in determining the technical feasibility of a project.

Rule-governed tasks – the tasks to be undertaken must be governed by rules or

else it would be unlikely for the computerization process to take place.

Repetitive tasks – if a task is performed rarely, then we should not invest the time,

money and expertise to develop a program to carry it out.

Complex tasks – these tasks should be broken down into constituent tasks so that

it may become easier and desirable to computerize.

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High degree of accuracy – computers are speedy, efficient and less prone to

errors, than humans.

Speed of response – computers are designed to give fast responses if required to

do so.

Data used for many tasks – data that is captured and saved on computers makes it

easy to access it over and over again and it is also cheap.

Organizational feasibility

Organizational feasibility or operational feasibility concerns the viability of the proposed

system within the operational and organizational environment. These usually differ from

organization to organization and these questions are usually pointed out by the analyst:

Does the organization for which the information system is to be supplied have a

history of acceptance of information technology or has past introduction led to

conflict? We know that Cool-Care has never upgraded or introduced new

information technology to the organization. Since Cool-Care has a flat

organizational structure, it would be easier to introduce a new system

Will the personnel within the organization be able to cope with operating new

technology? We will encounter the problem where elderly staff will have a

problem to adapt to the new system after changing from the manual system. The

training has to be intense across the board for all staff.

Is the organizational structure compatible with the proposed information system?

We currently have a peer to peer system which would not be so difficult to adapt

to since we only have about 113 computers in operation at present.

Steps to follow in the feasibility study:

Form a project team and appoint a project leader

Start preliminary investigation through different fact finding techniques

Prepare the systems flowcharts of the current system

Identify and describe the deficiencies in the current system

Determine objectives of the proposed system

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Prepare the systems flowchart of the proposed system

Identify and enumerate the existing computer systems along with their technical

specifications

Determine the cost and benefits of the proposed system

Identify the responsible users and determine the operational feasibility

Give the oral presentation of the feasibility study

Cost benefit analysis

The selection of an evaluation method: after classification of costs and benefits, the analyst

selects an appropriate method for evaluating them. The common methods of evaluating the costs

and benefits are:

1. Payback method – this is the most common method to determine the time when the

accumulated benefits will equal the initial investment. With this method, the analyst

knows the time, when the money spent on the project will be recovered. With this

method today’s cost is compared with tomorrow’s benefit and thus the time value of

money is not considered.

2. Present value method – this method compares the present value with future values by

considering the time value of invested money.

3. Net benefit method – this is the simplest method of cost/benefit analysis. The main

drawback is that this method does not consider the time value of money.

4. Break-even method – this method is based on the principle of payback method. The cost

of current and candidate systems are compared to find the time when both are equal.

This point is called break-even.

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Information needs and reporting structures

The type of system that we need to design must serve our current set-up here at Cool-Care, but that does not mean that we do not need to prepare ourselves for restructuring. We need to take advantage of the improvements that the new information system will offer. Therefore, we need to also adapt the organization to the information system, and if need be we adapt the information system to the organization.

Some food for thought also would be that the kind of information systems you find in a business firm – and the nature of problems with these systems – often reflects the type of organizational structure we are dealing with.

There are five types of organizational structures, viz.;

1. Entrepreneurial structure – these organizations are usually new and small and are developed in a fast-changing environment.

2. Divisionalized bureaucracy – this is a combination of multiple machine bureaucracies, each one producing a different product or service.

3. Professional bureaucracy – knowledge based organization where goods and services depend on the expertise and knowledge of professionals. The centralized authority is weak.

4. Adhocracy – task force organization that must respond to rapidly changing environments. Consists of large groups of specialists organized into short-lived multidisciplinary terms and has a weak central management.

5. Machine bureaucracy – large bureaucracy that exists in a slowly changing environment that produces standard products. The management and decision-making team are centralized. This is the structure that is applicable to Cool-Care.

Behavioural researchers have theorized that information technology facilitates flattening of hierarchies by broadening the distribution of information to empower lower-level employees and increase management efficiency. (Laudon and Laudon, 2010:116,117)

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