CHAPTER TWO: DEVELOPMENT OF INFORMATION SYSTEM SOLUTION

2.1. Introduction
Foundation Concepts: Developing Business/IT Solutions introduces the
traditional, prototyping, and end user approaches to the development of
information systems, and discusses the processes and managerial issues in the
implementation of new e-business applications.
The Systems Development Cycle: Business end users and IS specialists may
use a systems approach to help them develop information system solutions to
meet e-business opportunities. This frequently involves a systems development
cycle where IS specialists and end users conceive, design, and implements e-
business systems.
Prototyping: Prototyping is a major alternative methodology to the traditional
information system development cycle. It includes the use of prototyping tools
and methodologies, which promote an iterative, interactive process that
develops prototypes of user interfaces and other information system
components.
End User Development: The application development capabilities built into
many end user software packages have made it easier for end users to develop
their own e-business applications. End users should focus their development
efforts on the system components of business processes that can benefit from
the user of information technology.
Implementing IS: Implementation involves acquisition, testing,
documentation, training, installation, and conversion activities that transform
a newly designed e-business system into an operational system for end users.
Evaluating Hardware, Software, and Services: Business professionals should
know how to evaluate the acquisition of information system resources. IT
vendors’ proposals should be based on specifications developed during the
design stage of systems development. A formal evaluation process reduces the
possibility of incorrect or unnecessary purchases of hardware or software.

2.2. Understanding a Problem or Opportunity

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Developing e-Business System-IS Development: This topic presents a generic

systems approach to problem solving. It deals with how organizations can
develop systematic ways to problem solving. This process is known as
the systems approach. When the systems approach to problem solving is
applied to the development of information system solutions to business
problems, it is called information systems development or application
development. The systems approach can be used to develop e- business
systems and applications that meet the business needs of a company and its
employees and stakeholders.

Figure 2.1: The Systems Approach

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The systems approach to problem solving uses a systems orientation to define

problems and opportunities and develop solutions. Studying a problem and
formulating a solution involves the following interrelated activities:
•Recognize and define a problem or opportunity using
systems thinking.
•Develop and evaluate alternative system solutions.

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•Select the system solution that best meets your requirements.

•Design the selected system solution.
•Implement and evaluate the success of the designed system.
•Steps can overlap each other.
•Activities required for problem solving can be used in more than one step of
the process. The completion of activities in one step may extend into the
performance of another.
•Sometimes you may have to cycle back to a previously completed step.
Systems Thinking: Using systems thinking to understand a problem or
opportunity is one of the most important aspects of the systems approach. The
essence of the discipline of systems thinking is “seeing the fore stand the trees”
in any situation by:
•Seeing interrelationships among systems rather than linear cause-and-effect
chains whenever events occur.
•Seeing processes of change among systems rather than discrete “snapshots” of
change, whenever changes occur. One way of practicing systems thinking is to
try to find systems, subsystems, and components of systems in any situation
you are studying. This viewpoint ensures that important factors and their
interrelationships are considered. This is also known as using a systems
context, or having a systematic view of a situation. For example, the business
organization or business process in which a problem or opportunity arises
could be viewed as a system of:
•Input
•Processing
•Output
•Feedback
•Control
2.3. Developing an Information System Solution
Starting the Systems Development Process

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The first step in the systems development process is the systems investigation
stage. This step may involve consideration of proposals generated by an e-
business planning process. The investigation stage also includes
the preliminary study of proposed information system solutions to meet a
company’s e-business priorities and opportunities. The three steps of the
systems investigation stage involve:
•Determining how to address e-business opportunities and priorities.
•Conducting a feasibility study to determine whether a new or improved e-
business system is a feasible solution.
•Developing a project management plan and obtaining management approval

Figure 2.2: Feasibility Studies

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Because the process of developing can be costly, the systems investigation

stage frequently requires a preliminary study called a feasibility study. A
feasibility study is a preliminary study, where the information needs
of prospective users and the resource requirements, costs, benefits, and
feasibility of a proposed project are determined.
Steps of a Feasibility Study:
•Gather information/data for a feasibility study.
•Formalize a written report including the preliminary specifications and a
developmental plan for the proposed system e-business application.
•Submit the report to management for approval.

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•Begin system analysis (if management approves the recommendations of the

feasibility study).
The Goal of Feasibility Studies is to:
•Evaluate alternative e-business systems solutions.
•Propose the most feasible and desirable e-business application for
development. The feasibility of a system can be evaluated in terms of four
major categories
•Organizational Feasibility:- Focuses on how well a proposed system
supports the e-business priorities of the organization.
•Economic Feasibility:- Focuses on whether expected cost savings, increased
revenue, increased profits, and reductions in required investment, and other
types of benefits will exceed the costs of developing and operating a proposed
system.
Technical Feasibility:- Focuses on the reliabilities/capabilities of the
hardware and software to meet the needs of the proposed system, and whether
they can be acquired or developed in the required time.
Operational Feasibility:- Focuses on the willingness and ability of the
management, employees, customers, suppliers, and others to operate, use, and
support the proposed system.
Cost/Benefit Analysis: Every legitimate solution will have some advantages or
benefits, and some disadvantages or costs. These advantages and
disadvantages are identified when each alternative solution is evaluated. This
process is typically called cost/benefit analysis.
•Tangible Costs: Tangible costs are costs and benefits that can be quantified
(e.g., cost of hardware and software, employee salaries, and other quantifiable
costs needed to develop and implement a solution).
•Intangible Costs: Intangible costs are costs and benefits that cannot be
quantified (e.g., loss of customer goodwill or employee morale caused by errors
and disruptions arising from the installation of a new system).

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•Tangible Benefits: Tangible benefits are favorable results (e.g., decrease in

payroll costs caused by a reduction in personnel or a decrease in inventory
carrying costs caused by a reduction in inventory)
•Intangible Benefits: Intangible benefits are hard to estimate (e.g., better
customer service or faster and more accurate information for management).
Systems Analysis: Systems analysis is an in-depth study of end user
information needs, which produces functional requirements. That is used as the
basis for the design of a new information system. Systems analysis traditionally
involves a detailed study of:
•The information needs of the company and the end users.
•The activities, resources, and products of any present information systems
being used.
•The information systems capabilities required to meet the information needs
of end users, and those of other e- business stakeholders that may use the
system.
Organizational Analysis: Organizational analysis involves evaluating the
organizational and environmental systems and subsystems involved in any
situation. Systems analysis traditionally involves a detailed study of the
organizations:
•Environment
•Management structure
•People
•Business activities
•Environmental systems it deals with
•Current information systems
Analysis of the Present System
Before designing a new system, a detailed analysis of the current system
(manual or automated) must be completed. An analysis of the present system
involves analyzing activities, resources, and the products. You must analyze
how the present system uses:

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•Hardware, software, people resources to convert data resources into

information products, such as reports and displays.
•Document how the information activities of input, processing, output, storage,
and control are being accomplished.
Functional Requirements Analysis: This step of systems analysis is one of the most
difficult. Steps involve:
•Working as a team with IS analysts and end users to determine specific
business information needs.
•Determining the information processing capabilities required for each system
activity (input, processing, output, storage, and control) to meet the
information needs. Goal is to identify WHAT should be done NOT how to do it.
•Develop functional requirements (information requirements that are not tied to
the hardware, software, network, data, and people resources that end users
presently use or might use in the new system).
Figure 2.3: Systems Design

•Systems analysis describes what a system should do to meet the information

needs of users.
• System design specifies how the system will accomplish this objective.
Systems design consists of design activities, which produce systems
specifications satisfying the functional requirements developed in the systems
analysis stage. These specifications are used as the basis for:

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•Software development
•Hardware acquisition
•System testing
•Other activities of the implementation stage
•Systems design can be viewed as the design of three major products, or
deliverables that should result from the design stage. These activities include:
•User interface design
•Data design
•Process design
User Interface Design: User interface design focuses on supporting the
interactions between end users and their computer-based applications.
Designer’s concentrate on:
•The design of attractive and efficient forms of user input and output, such as
easy-to-use Internet or intranet web pages.
•Design is frequently a prototyping process, where working models or
prototypes of user interface methods are designed and modified several times
with feedback from end users.
•Design process produces detailed design specifications for information
products such as display screens, interactive user/computer dialogues, audio
responses, forms, documents, and reports.
Design Tips to Keep in Mind:
•Keep it simple
•Keep it clean
•Organize logically
System Specifications: Formalize the design of an application’s user interface
methods and products, database structures, and processing and control
procedures. Therefore, systems designers will frequently develop hardware,
software, network, data, and personnel specifications for a proposed system.
Systems analysts work with you so they can use your knowledge of your own

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work activities and their knowledge of computer-based systems to specify the

design of a new or improved information system.
The final systems design typically specifies:
•Hardware resources (machines and media)
•Software resources (programs and procedures)
• Network resources (communications media and networks)
•People resources (end users and information systems staff).
•How resources will be used to convert data resources (stored in files and
databases they design) into information products (displays, responses, reports,
and documents
End User Development: In end user development, IS professionals play a
consulting role while you do your own application development. Sometimes a
staff of user consultants may be available to help you and other end users with
your application development efforts. This may include:
•Training in the use of application packages
•Selection of hardware and software
•Assistance in gaining access to organization databases
•Assistance in analysis, design, and implementation

Figure 2.4: Focus on IS Activities

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End user development should focus on the fundamental activities of an

information system:
•Input
•Processing
•Output
•Storage
•Control. In analyzing a potential application, you should focus on:
•Output- What information is needed and in what form should it be presented?
• Input- What data are available, from what sources? And in what form?
•Processing- What operations or transformation processes will be required to
convert the available inputs into the desired output?- What software can best
perform the operations required?
•Storage- Does the application use previously stored data?- Does it create data
that must be stored for future use by this or other applications?
•Control- What controls are needed to protect against accidental loss or
damage?- Is there a need to control access to data used by the application?

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Doing End User Development: In end user development, you and other
business professionals can develop new or improved ways to perform your jobs
without the direct involvement of IS specialists. The application development
capabilities built into a variety of end user software packages have made it
easier for many users to develop their own computer-based solutions
2.4. System Development Life Cycles
The Systems Development Cycle: Using the systems approach to develop
information systems solutions can be viewed as a multistep processed called
the information systems development cycle, also known as the systems
development life cycle (SDLC). The SDLC is composed of five steps, which
include:
•Systems investigation Product: Feasibility Study
•Systems analysis Product: Functional Requirements
•Systems design Product: Systems Specifications
•Systems implementation Product: Operational System
•Systems maintenance Product: Improved System stresses that :
• All the activities involved are highly related and interdependent.
•Several developmental activities can occur at the same time.
•Different parts of a development project can be at different stages of the
development cycle.
•May recycle back at any time to repeat previous activities in order to modify
and improve a system being developed

Figure 2.5: Proto typing

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Prototyping is the rapid development and testing of working models, or proto

types, of new applications in an interactive, iterative process involving both IS
specialists and business professionals.
•Prototyping makes the development process faster and easier for IS specialists
and business professionals.
•Prototyping makes the development process faster and easier, especially for
projects where end user requirements are hard to define. Thus, prototyping is
sometimes called rapid application design (RAD).
•Prototyping has also opened up the application development process to end-
users because it simplifies and accelerates systems design. These
developments are changing the roles of end users and information systems
specialists in systems development.

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The Prototyping Process: Prototyping can be used for both large and small
applications.
•Typically, large e-business systems still require using the traditional systems
development approach, but parts of such systems can frequently be prototyped.
•A prototype of a business application needed by an end user is developed
quickly using a variety of application development software tools. The prototype
system is then repeatedly refined until it is acceptable.
•Prototyping is an iterative, interactive process that combines steps of the
traditional systems development cycle, and allows the rapid development and
testing of a working model.
2.5. Implementing the Information System Solution
Implementing e-Business Systems-Implementation: The implementation process
is the next major stage that follows the investigation, analysis, and design
stages of the systems development process. Therefore, implementation is an
important activity planned by an organization and its end users.
Figure 2.6: Implementing New Systems

The implementation process for newly designed information systems involves a

variety of acquisition, testing, documentation, installation, and conversion
activities. It also involves the training of end users in the operation and use of
the new information system. Thus, implementation is a vital step in ensuring
the success of new systems. Implementation involves a variety of activities,
which include:

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•Acquisition of hardware, software and services.

•Software development or modification.
•Testing of programs, procedures, and hardware.
•System documentation
• Conversion (parallel, pilot, phased, plunge).
•End User training.
Evaluating Hardware, Software, and Services
To evaluate and select hardware and software, computer-using organizations
typically:
•Require suppliers to present bids and proposals based on system
specifications developed during the design stage of systems development.
•Establish minimum acceptable physical and performance characteristics for
all hardware and software requirements.
•Government agencies and most large businesses use a document called an
RFP (request for proposal) or RFQ (request for quotation), which lists all the
required specifications.
•When several competing proposals for hardware or software acquisition need
to be evaluated, a scoring system may be used, giving a numerical score for
each of several evaluation factors. Each competing proposal is assigned points
for each factor, depending on how well it meets the specifications of the
computer user.
•Hardware and software should be demonstrated and evaluated.
•Using special benchmark test programs and test data to evaluate proposed
hardware and software. Special software simulators may also be available that
simulate the processing of typical jobs on several computers and evaluate their
performances.
•Other users are frequently the best source of information needed to evaluate
the claims of manufacturers and suppliers. Good example: Internet
newsgroups.
Figure 2.7: Hard ware Evaluation Factors

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When evaluating computer hardware, you should investigate specific physical

and performance characteristics for each hardware component to be acquired.
This is true whether you are evaluating mainframes, microcomputers,
or peripheral devices. Hardware evaluation factors include:
•Performance
•Cost
•Reliability
•Compatibility
•Technology
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•Ergonomics
•Connectivity
•Scalability
•Software
•Support

Figure 2.8: Soft ware Evaluation Factors

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You should evaluate software according to many factors that are similar to
those used for hardware evaluation. Thus, the factors of performance, cost, reliability,
availability, compatibility, modularity, technology, ergonomics, and support should be
used to evaluate proposed software acquisition. In addition, however, software
evaluation factors should also include evaluating:
•Quality
•Efficiency
•Flexibility
•Security
•Connectivity
•Language

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•Documentation
•Hardware
•Other factors (performance, cost, reliability etc.
Figure 2.9: Evaluating IS Services

Suppliers of hardware and software products and many other firms offer a
variety of IS services to end users and organizations. Some IS services which
are provided free or for a change include:
•e-commerce website development
•Installation or conversion of new hardware and software
•Employee training

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•Hardware maintenance. IS service can be outsourced to an outside company

for a negotiated price? For example:
•Systems integrators take over complete responsibility for an organization’s
computer facilities when an organization outsources its computer operations.
•Systems integrators may assume responsibility for developing and
implementing large systems development projects that involve many vendors
and subcontractors.
•Value-added resellers (VARs) specialize in providing industry-specific
hardware, software, and services from selected manufacturers.
•Other services include systems design, contract programming, and consulting
services. Evaluating IS services includes factors such as:
•Performance
•Systems development
•Maintenance
•Conversion
•Training
•Backup
•Accessibility
•Business position
•Hardware
•Software
Other Implementation Activities
Testing, documentation, and training are keys to successful implementation of
a new e-business system.
Testing:
System testing may involve:
•Testing website performance
•Testing and debugging software
•Testing new hardware
•Review of prototypes of displays, reports, and other output

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•Testing at every stage of the systems development process

Documentation: Developing good user documentation is an important part of
the implementation process.
•Documentation serves as a method of communicating among the people
responsible for developing, implementing, and maintaining a computer-based
system.
•Documentation is extremely important in diagnosing errors and making
changes.
•Documentation involves developing:1. Manuals for operating procedures 2.
Sample data entry display screens 3. Sample forms 4. Sample reports
Training: Training is a vital implementation activity. IS personnel must be sure
that end users are trained to operate a new e-business system or its
implementation will fail. Training may include:
•Activities such as data entry
•All aspects of the proper use of a new system
•Managers and end users must be educated in how the new technology
impacts the company’s business operations and management.
•Training programs for specific hardware devices, software packages, and their
use for specific work activities

Figure 2.10: Conversion Methods

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The initial operation of a new e-business system can be a difficult task. Such
an operation is usually a conversion process in which the personnel,
procedures, equipment, input/output media, and databases of an old
information system must be converted to the requirements of a new system.
Four major forms of system conversion include:
• Parallel Conversion: - Both the old and the new system are operated until
the project development team and end user management agrees to switch
completely over to the new system. It is during this time that the operations
and results of both systems are compared and evaluated. Errors can be
identified and corrected, and the operating problems can be solved before the
old system is abandoned.
• Phased Conversion: - Only parts of a new application or only a few
departments, branch offices, or plant locations at a time are converted. A
phased conversion allows a gradual implementation process to take place
within an organization.
• Pilot Conversion: - Where one department or other work site serves as a test
site. A new system can be tried out at this site until developers feel it can be
implemented throughout the organization.

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• Plunge/Direct Cutover: -Use the system immediately and totally abandons

the old system.
IS Maintenance: Once a system is fully implemented and is being used in
business operations, the maintenance function begins.
System maintenance is the monitoring, evaluating, and modifying of
operational e-business systems to make desirable or necessary improvements.
The maintenance function includes:
•A post implementation review process to ensure that newly implemented
systems meet the e-business objectives established for them.
•Correcting errors in the development or use of the system. This includes a
periodic review or audit of a system to ensure that it is operating properly and
meeting its objectives.
•Making modifications to an e-business system due to changes in the business
organization or the business environment.
Key Terms and Concepts - Defined
Conversion Methods: The process in which the hardware, software, people,
and data resources of an old information system must be converted to the
requirements of a new information system. This usually involves a (1) parallel,
(2) phased, (3) pilot, or (4) plunge conversion process from the old to the new
system.
Cost/Benefit Analysis: Identifying the advantages or benefits and the
disadvantages or costs of a proposed solution.
Documentation: A collection of documents or information that describes a
computer program, information system, or required data processing
operations.
Economic Feasibility: Whether expected cost savings, increased revenue,
increased profits and reductions in required investment exceed the costs of
developing and operating a proposed system.
End User Development: Managers and business specialists can develop their
own computer-based business applications.

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Evaluation Factors - Hardware: Criteria used to evaluate hardware services

Evaluation Factors - IS Services: Criteria used to evaluate IS services
Evaluation Factors - Software: Criteria used to evaluate software services
Feasibility Study: A preliminary study that investigates the information needs
of end users and the objectives, constraints, basic resource requirements,
cost/benefits, and feasibility of proposed projects.
Functional Requirements: A detailed description of user information needs
and the input, processing, output, storage, and control capabilities required to
meet those needs.
Implementation Process: Includes acquisition, testing, training, and
conversion to a new system.
Intangible Benefits: The non-quantifiable benefits of a proposed solution.
Intangible Costs: The non-quantifiable costs of a proposed solution.
Operational Feasibility: The willingness and ability of management,
employees, customers, and suppliers to operate, use, and support a proposed
system.
Organizational Analysis: Evaluating the organizational and environmental
systems and subsystems involved in any situation.
Organizational Feasibility: How well a proposed information system supports
the objectives of an organization’s strategic plan for information systems.
Post Implementation Review: Monitoring and evaluating the results of an
implemented solution or system.
Prototype: A working model. In particular, a working model of an information
system, which includes tentative versions of user, input and output, databases
and files, control methods, and processing routines.
Prototyping: The rapid development and testing of working models, or
prototypes, of new information system applications in an interactive, iterative
process involving both systems analysts and end users.
Systems Analysis: (1) Analyzing in detail the components and requirements of
a system, (2) Analyzing in detail the information needs of an organization, the

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characteristics and components of presently utilized information systems, and

the functional requirements of proposed information systems.
Systems Approach: A systematic process of problem solving based on the
scientific method, which defines problems and opportunities in a systems
context. Data is gathered describing the problem or opportunity, and
alternative solutions are identified and evaluated. Then the best solution is
selected and implemented, and its success evaluated.
Systems Design: Deciding how a proposed information system will meet the
information needs of end users. Includes logical and physical design activities,
and user interface, data and process design activities, which produce system
specifications that satisfy the system requirements developed in the systems
analysis stage.
Systems Development Life Cycle: (1) Conceiving, designing, and
implementing a system, (2) Developing information systems by a process
of investigation, analysis, design, implementation, and maintenance. Also
called information systems development, or application development.
Systems Implementation: The stage of systems development in which
hardware and software are acquired, developed, and installed, the system is
tested and documented, people are trained to operate and use the system, and
an organization converts to the use of a newly developed system.
Systems Investigation: The screening, selection, and preliminary study of a
proposed information system solution to a business problem.
Systems Maintenance: The monitoring, evaluating, and modifying of a system
to make desirable or necessary improvements.
System Specifications: The product of the systems design stage. It consists of
specifications for the hardware, software, facilities, personnel, databases, and
the user interface of a proposed information system.
System Testing: Checking whether hardware and software work properly.
Systems Thinking: Trying to recognize systems and the new interrelationships
and components of systems in any situation.

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Tangible Benefits: The quantifiable benefits of a proposed solution or system.

Tangible Costs: The quantifiable costs of a proposed solution or system.
Technical Feasibility: Whether reliable hardware and software capable of
meeting the needs of a proposed system can be acquired or developed by an
organization in the required time. User Interface, Data, and Process Design:
The three major activities or products of systems design.

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