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Chapter 10
Information Systems Management in Practice 8th Edition
Todays Lecture
Introduction
Project Management
Definition, scope, best practices Change management Risk management To replace or not to? Improvement
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Todays Lecture
Conclusion
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Introduction
What are the management issues surrounding systems development? IS as three separate businesses (lens)
Infrastructure management (operations) Customer relationship (helpdesk) Product innovation (systems development)
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Project Management
Project is a collection of related tasks and activities undertaken to achieve a specific goal within a finite time period (temporal) IT projects are similar to other forms but arguably more difficult
IT project management
Getting the project started Managing the schedule Managing the budget Managing the benefits Managing the risks, opportunities and issues Soliciting feedback and formative evaluation
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Change Management
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More flexibility than mainframe systems Workload (processing) split between client and server
Integration of pizzazz of the PC world with the necessary back-end production strengths of the mainframe world
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Understand semantics of entire process How to implement change Input into training plan Devise communication plan Vice presidents and directors ODR training workshop for sponsors
2009 Pearson Education, Inc. Publishing as Prentice Hall
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Advisory council
Upward job: give feedback on implemented changes Downward job: obtain employee buy-in
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Team studied existing paperwork processing for delivering gas products and invoicing customers Synergy established among IM and business staff
Implemented PODD in place of paper PODD advisory council facilitated upward and downward communication Training program for drivers (less resistance) Sponsors identified and mitigated project risks
2009 Pearson Education, Inc. Publishing as Prentice Hall
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Risk Management
Business risk
1. 2.
3.
Project leader should be business executive How does project leadership affect outcome?
Employees perspective
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Identify and eliminate source of perceived risk Implementing controls to contain potential risk effects Letting others assume risk (outsourcing)
Risk limitation
Risk transfer
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Dow Corning
Case Example: Risk Management Successful ERP implementation (19951999)
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Achieving employee commitment did little to get work processes redesigned Continued through the pilot (ERP cutover in new European subsidiaries)
2009 Pearson Education, Inc. Publishing as Prentice Hall
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Used top-down coordination with an authoritative management style and flexible timelines
Pilots success demonstrated managers resolve and shifted employee perception to the positive Company wide scope created negative shift
Used the Big Bang approach of authoritative management and firm deadlines
ERP implemented in most sites by 1998, so all risk factors turned positive
2009 Pearson Education, Inc. Publishing as Prentice Hall
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Establish the ground rules Foster discipline, planning, documentation and management Obtain and document final user requirements Obtain tenders from all appropriate potential vendors Include vendors in decision making Convert existing data Follow through after implementation
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Extracting and converting data elements from existing systems and formats
Forward Engineering
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Verizon Directories
Case Example: Reverse Engineering Produced, marketed and distributed telephone directories Directory publishing system
Verizon Directories
Blueprint project
Used a graphical tool to reverse engineer a poorly designed database from its physical to its data model, and designed a new data model (blueprint) that is more flexible Employed reengineering tools to reuse data elements in the largest existing database to create a new production scheduling system
Reuse project
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Supply input in a new manner Make new uses of input Allow programs to deal more comprehensively with data Add a Web interface around a blackbox
e.g., FedExs package tracking system
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2.
3.
Recognize a systems potential Clean up the system and make it more efficient Establish a strategic role for the system
Add new functionalities to create business value
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Amazon.com
Case Example: System Rejuvenation Initiated Web Services program (2002)
Access to Amazons state-of-art Web technology platform (pay for what you use) No control over how subscribers use its system, but in return, others are creating gadgets, links, services, and software that Amazon.com cannot accomplish on its own Diversify into e-commerce platform business
Used Web Services to rejuvenate its internal system by giving it a strategic role via XML
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Standard and integrated application development environment Mapping of business requirement to IT strategies
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Commercial packages have many options and features that can be customized Quick availability Outsource IS responsibility to vendors Cost can be expensed (tax benefits)
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Wachovia
Case Example: Replace with a service Legacy contact management system
Incompatible with new systems and not adaptable for new business needs Maintained by consultants ($) Pay by use
Code convoluted and patched; technology antiquated Rare (usually only for very specialized systems)
Alternative to replacement
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Measuring the value of information systems is an ongoing task for IS managers (justify)
Top executives demand specific links between new systems and corporate financial measures (e.g., ROA, revenue)
Is this reasonable?
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Difficult task because IT itself is only one of many factors that contribute to successful use of systems
IT can trigger a series of events toward a goal, but those events are very much dependent on organizational context Can you measure the value of decision support systems or data warehouses? Can you calculate the ROI of e-commerce systems?
Distinguish between different roles of systems Measure what is important to management Assess investments across organizational levels
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1.
2.
3.
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Meeting deadlines and milestones Operating within budget Quality (efficiency, costs) e.g., time and costs reductions
2.
3.
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Identify all indicators management use (besides accounting) to determine corporate performance
Customer relations
e.g., satisfaction
In other words, devise measurements for what management considers its key success factor(s), with regard to information systems
2009 Pearson Education, Inc. Publishing as Prentice Hall
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A Trucking Company
Case Example: Assess Investment Across Organizational Levels Refrigerated carrier business
Sustained 50% loss in market share $10 million IT investment to improve position Satellite tracking and communication system Increased driver productivity (.5 hr/day; $59.60/mth savings) Improved load truck matching (1% deadhead time; $49.68/mth savings) Customers willing to pay premium for ability to communicate (unexpected revenue benefits)
2009 Pearson Education, Inc. Publishing as Prentice Hall
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Measures
A study found that every $1 invested in computers yielded up to $17 in stock market value (and no less than $5) vis--vis
$1 invested in property, plant and equipment (book value) only yielded $1 in stock market value $1 investment in other assets (inventory, liquid assets, and accounts receivables) yielded only $0.70 IT investment creates intangible asset value Know-how, skills, organizational structures
Researchers argument
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Conclusion
Sponsor commitment
Conclusion contd
Information systems difficult to keep up-todate Process of justifying a new system can uncover what is important to management Measuring benefits afterward can help companies spot latent benefits Investors more highly value companies with higher IT investments?
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