Solving business problems with IS

I. TOPIC OVERVIEW

  • A Systems Approach to Problem Solving

    • Describes steps to resolve business issues.

  • Developing Information Systems Solutions

    • Activities and products in information systems development cycle.

    • Includes computer-aided and prototyping methodologies.

II. LECTURE NOTES

A. A Systems Approach to Problem Solving

  • Comparison: Scientific Method vs. Systems Approach

    • Scientific Method: Consists of five steps:

      1. Recognize phenomena.

      2. Formulate a hypothesis.

      3. Test the hypothesis.

      4. Evaluate results.

      5. Draw conclusions.

    • Systems Approach: Modification of the scientific method emphasizing systematic processes. Steps include:

      1. Define a problem or opportunity.

      2. Gather data on the issue.

      3. Identify alternative solutions.

      4. Evaluate solutions.

      5. Select the best option.

      6. Implement the chosen solution.

      7. Evaluate the outcome.

    • Steps may overlap; revisiting previous steps may be necessary.

  • Stages of Problem Solving:

    • Understanding a problem or opportunity.

    • Developing a solution.

    • Implementing a solution.

B. Understanding a Problem or Opportunity

  1. Defining Problems and Opportunities:

    • Problem: Basic condition causing undesirable results.

    • Opportunity: Condition offering potential for desirable outcomes.

  2. Gathering Data:

    • Techniques include interviews, questionnaires, observations, document examinations, and model developments.

  3. Identifying Organizational Systems:

    • Business as a System: Understanding a business operation within its environment helps recognize relationships with stakeholders and subsystems.

    • Environmental Systems: Must consider the business's subsystems and external stakeholders' relationships.

    • Decomposition: Identifying boundaries and relationships among subsystems affected by the issue.

  4. Evaluating Selected Systems:

    • Understand system functions by analyzing inputs, processing, outputs, feedback, and controls.

  5. Objectives, Standards, and Constraints:

    • Objectives: Goals that the system aims to achieve clearly stated.

    • Standards: Quantitative measures for assessing performance.

    • Constraints: Restrictions affecting solutions (both internal and external).

C. Developing a Solution

  1. Designing Alternative Solutions:

    • Transition smoothly from defining problems to exploring multiple proposals.

  2. Evaluating Alternative Solutions:

    • Assess based on how well they meet objectives using well-defined evaluation criteria.

    • Cost-Benefit Analysis: Assess both tangible and intangible costs and benefits:

      • Tangible Costs: Hardware, software, salaries.

      • Intangible Costs: Customer goodwill, employee morale.

      • Tangible Benefits: Payroll reduction, inventory cutbacks.

      • Intangible Benefits: Enhanced customer service, improved response rates.

  3. Selecting the Best Solution:

    • Compare alternatives based on criteria to choose the most favorable option.

D. Implementing a Solution

  1. Implementing: Execute the selected solution, often through a defined plan detailing activities and resource requirements.

  2. Post-Implementation Review:

    • Evaluate effectiveness to ensure objectives were met; cycle back as needed.

E. Applying the Systems Approach to Information Systems

  • Various methodologies adapt the systems approach for information systems development, but challenges may arise from:

    1. Conflicts between departments.

    2. Rapid environmental changes.

SECTION II: Developing Information Systems Solutions

A. The Systems Development Cycle

  1. Managerial end-users often lead the development of IS solutions.

  2. The Systems Development Life Cycle (SDLC) includes:

    • Investigation, analysis, design, implementation, and maintenance.

  3. Systems Investigation: Identify problems, conduct feasibility studies.

    • Must include the needs assessment for information systems.

    • Evaluate feasibility in terms of:

      • Organizational.

      • Economic.

      • Technical.

      • Operational.

B. Systems Analysis

  • A detailed review of organizational needs to produce functional requirements for the design of new IS.

  • Analyze existing IS thoroughly: inputs, processing, outputs, storage, control.

C. Systems Design

  1. Create system specifications to meet analyzed requirements, resulting in:

    • User interface design, data design, and process design.

  2. Logical Systems Design: Finalize specifications broadly; Physical Systems Design: Detail executable aspects.

D. Implementation and Maintenance

  1. Execute installation and transition to the new system; may involve parallel, pilot, phased, or immediate transitions.

  2. Systems Maintenance: Address ongoing performance evaluations and necessary adjustments.

E. Computer-Aided Systems Engineering (CASE)

  • Utilizes software tools to streamline the systems development lifecycle, enhancing project management, and iterative processes.

F. Prototyping

  • Engage end-users in rapid, iterative modeling to develop applications effectively.

G. Developing Information System Solutions: Getting Started

  • Leverage problem-solving fundamentals for proposing IS solutions and utilizing tools from the course.

III. KEY TERMS AND CONCEPTS DEFINED

  • Business as a System: A business operates as an open adaptive system.

  • Black Box Approach: Focus on input and output interactions.

  • Computer-Aided Systems Engineering (CASE): Software aiding system development.

  • Cost/Benefit Analysis: Evaluating advantages versus disadvantages of solutions.

  • Intangible Benefits and Costs: Non-quantifiable effects of solutions.

  • Prototyping: Iterative system development method using working models.