#12 Building Inf Systems Ch13

Susanto FE UNAIRSusanto FE UNAIR 11

Building Information Systems Building Information Systems

Management Information SystemsManaging The Digital Firm

10th EditionKeneth C Laudon . Jane P. Laudon


Systems as Planned Organizational ChangeSystems as Planned Organizational Change

The process of building a new The process of building a new information system is one kind of information system is one kind of planned organizational change. System planned organizational change. System builders must understand how a builders must understand how a system will affect the organization as a system will affect the organization as a whole. They must consider how the whole. They must consider how the nature of work groups will change and nature of work groups will change and how much change is needed. how much change is needed.


Four kinds of structural organizational change which are enabled by information technology are:

– Automation: Enables employees to perform their tasks more efficiently and effectively

– Rationalization of procedures: The streamlining of standard operation procedures, eliminating obvious bottlenecks, so that automation can make operating procedures more efficient

– Business process reengineering: Analyzes, simplifieds, and redesigns business processes with a mind to radically reduce business costs

– Paradigm shift: A radical reconceptualization of the nature of the business and the nature of the organization


FIGURE 13-1 ORGANIZATIONAL CHANGE CARRIES RISKS AND REWARDSFIGURE 13-1 ORGANIZATIONAL CHANGE CARRIES RISKS AND REWARDSThe most common forms of organizational change are automation and rationalization. The most common forms of organizational change are automation and rationalization. These relatively slow-moving and slow-changing strategies present modest returns but These relatively slow-moving and slow-changing strategies present modest returns but

little risk. Faster and more comprehensive change—such as reengineering and paradigm little risk. Faster and more comprehensive change—such as reengineering and paradigm shifts—carries high rewards but offers substantial chances of failure. shifts—carries high rewards but offers substantial chances of failure.


Paradigm shifts and re-engineering often fail because Paradigm shifts and re-engineering often fail because extensive organizational change is difficult to extensive organizational change is difficult to orchestrate. However, the rewards of successful orchestrate. However, the rewards of successful paradigm shifts can also be very high.paradigm shifts can also be very high.Business process reengineering involves radical Business process reengineering involves radical restructuring of business processes before applying restructuring of business processes before applying information technology to make them more efficient. information technology to make them more efficient. The mortgage industry has benefited from extensive The mortgage industry has benefited from extensive reengineering of the mortgage application process to reengineering of the mortgage application process to replace "desk-to-desk" sequential work on replace "desk-to-desk" sequential work on documents with a "work cell" approach in which documents with a "work cell" approach in which many people work on the same document many people work on the same document simultaneously. Reengineering sometimes uses simultaneously. Reengineering sometimes uses workflow managementworkflow management software to move software to move documents easily and efficiently between different documents easily and efficiently between different users and locations. users and locations.


FIGURE 13-2 REDESIGNING MORTGAGE PROCESSING IN THE UNITED STATESFIGURE 13-2 REDESIGNING MORTGAGE PROCESSING IN THE UNITED STATESBy redesigning their mortgage processing systems and the mortgage application process, mortgage By redesigning their mortgage processing systems and the mortgage application process, mortgage

banks have been able to reduce the costs of processing the average mortgage from $3,000 to $1,000 banks have been able to reduce the costs of processing the average mortgage from $3,000 to $1,000 and reduce the time of approval from six weeks to one week or less. Some banks are even and reduce the time of approval from six weeks to one week or less. Some banks are even preapproving mortgages and locking interest rates on the same day the customer applies. preapproving mortgages and locking interest rates on the same day the customer applies.


Effective reengineering requires understanding which Effective reengineering requires understanding which business processes need improvement and how this business processes need improvement and how this improvement helps the firm execute its strategy. improvement helps the firm execute its strategy. Identifying the business processes with the highest priority Identifying the business processes with the highest priority includes performing a strategic analysis and identifying includes performing a strategic analysis and identifying pain points, processes that produce the most complaints.pain points, processes that produce the most complaints.

After identification, the business process itself must be After identification, the business process itself must be analyzed in terms of its inputs and outputs, flow of analyzed in terms of its inputs and outputs, flow of products or services, activities, resources, information flow products or services, activities, resources, information flow and structure, and process owners, actors, and decision and structure, and process owners, actors, and decision makers.makers.

Further analysis identifies the process costs and time Further analysis identifies the process costs and time taken to perform the process. Business processes are taken to perform the process. Business processes are typically measured along the following dimensions:typically measured along the following dimensions:

– Process costProcess cost– Process timeProcess time– Process qualityProcess quality– Process flexibility Process flexibility


Once a business process is understood, a variety of Once a business process is understood, a variety of techniques or principles can be used to improve it, such as:techniques or principles can be used to improve it, such as:

Replace sequential steps in the process with Replace sequential steps in the process with parallel stepsparallel stepsEnrich jobs by enhancing decision authority and Enrich jobs by enhancing decision authority and concentrating informationconcentrating informationEnable information sharing throughout to all Enable information sharing throughout to all participantsparticipantsEliminate buffers (decision delays and Eliminate buffers (decision delays and inventories)inventories)Transform batch processing and decision making Transform batch processing and decision making into continuous flowinto continuous flowProcessesProcessesAutomate decision tasks where possible Automate decision tasks where possible


Business process management (BPM) provides a methodology and tools for dealing with the organization's ongoing need to revise its numerous internal and interorganizational business processes.BPM includes work flow management, business process modeling, quality management, change management, and tools for recasting the firm's business processes into a standardized form where they can be continually manipulated. Process-mapping tools are used to identify and document existing processes and to create models of improved processes that can then be translated into software systems. BPM software tools automatically manage processes across the business, extract data from various sources and databases, and generate transactions in multiple related systems. BPM also includes process monitoring and analytics to verify that process performance has been improved and measure the impact of process changes on key business performance indicators.


Quality management is another area of continuous Quality management is another area of continuous process improvement. process improvement. Total quality management (TQM) is a concept that sees quality as a responsibility shared by everyone in the organization. . TQM focuses on making a series of continuous process TQM focuses on making a series of continuous process improvements rather than dramatic bursts of change improvements rather than dramatic bursts of change and is considered more incremental than business and is considered more incremental than business process reengineering. process reengineering. Six sigmaSix sigma is another quality concept, signifying a is another quality concept, signifying a quality goal of 3.4 defects per millions of opportunities.quality goal of 3.4 defects per millions of opportunities.Benchmarking consists of setting strict standards for products, services, and other activities, and then measuring performance against those standards. . Companies may use external industry standards, Companies may use external industry standards, standards set by other companies, internally developed standards set by other companies, internally developed high standards, or some combination of the three. high standards, or some combination of the three.


Overview of Systems DevelopmentOverview of Systems Development

Systems development refers to all the refers to all the activities that go into producing an activities that go into producing an information systems solution to an information systems solution to an organizational problem or opportunity. organizational problem or opportunity. Systems development is a structured kind of Systems development is a structured kind of problem solving with distinct activities problem solving with distinct activities consisting of:consisting of:

– Systems analysis Systems analysis – Systems design Systems design – Programming Programming – Testing Testing – Conversion Conversion – Production and maintenance. Production and maintenance.


FIGURE 13-3 THE SYSTEMS DEVELOPMENT PROCESSFIGURE 13-3 THE SYSTEMS DEVELOPMENT PROCESSBuilding a system can be broken down into six core activities. Building a system can be broken down into six core activities.


Systems analysis involves defining the problem, identifying its involves defining the problem, identifying its causes, specifying the solution, and identifying the information causes, specifying the solution, and identifying the information requirements that must be met by a system solution. System requirements that must be met by a system solution. System analysis also involves a analysis also involves a feasibility study used to determine used to determine whether the proposed solution is achievable, from a financial, whether the proposed solution is achievable, from a financial, technical, and organizational standpoint, given the technical, and organizational standpoint, given the organization's resources and constraints.organization's resources and constraints.One of the most challenging task of the systems analyst is to One of the most challenging task of the systems analyst is to define the specific information requirements that must be met define the specific information requirements that must be met by the system solution selected. by the system solution selected. Information requirements of a new system involve identifying who needs what of a new system involve identifying who needs what information, where, when, and how.information, where, when, and how.

The systems design is the overall plan or model that shows how the system will meet its information requirements. Like a . Like a blueprint of a building or house, a system design consists of all blueprint of a building or house, a system design consists of all the specifications that give the system its form and structure. the specifications that give the system its form and structure. The system designer details the systems specifications that The system designer details the systems specifications that should address all of the managerial, organizational, and should address all of the managerial, organizational, and technical components of the system solution. User information technical components of the system solution. User information requirements drive the entire system building effort, so requirements drive the entire system building effort, so information system design often demands a very high level of information system design often demands a very high level of end-user participation.end-user participation.


During the During the programmingprogramming stage, system specifications that stage, system specifications that were prepared during the design stage are translated into were prepared during the design stage are translated into software program code. software program code. Thorough Thorough testingtesting must be conducted to confirm that the must be conducted to confirm that the system produces the right results. Testing an information system produces the right results. Testing an information system involves three types of activities: system involves three types of activities: – Unit testingUnit testing tests each program separately in the system. tests each program separately in the system.– System testingSystem testing checks the information system as a whole to checks the information system as a whole to

determine if it works as intended.determine if it works as intended.– Acceptance testingAcceptance testing results in user and management final results in user and management final

certification that the system is ready to be used in a certification that the system is ready to be used in a production setting. production setting.

To ensure that all aspects of testing are as comprehensive To ensure that all aspects of testing are as comprehensive as possible, the development team works with users to as possible, the development team works with users to devise a systematic devise a systematic test plantest plan..


FIGURE 13-4 A SAMPLE TEST PLAN TO TEST A RECORD CHANGEFIGURE 13-4 A SAMPLE TEST PLAN TO TEST A RECORD CHANGEWhen developing a test plan, it is imperative to include the various conditions to When developing a test plan, it is imperative to include the various conditions to be tested, the requirements for each condition tested, and the expected results. be tested, the requirements for each condition tested, and the expected results.

Test plans require input from both end users and information systems Test plans require input from both end users and information systems specialists. specialists.


ConversionConversion is the process of changing from is the process of changing from the old system to the new one. There are the old system to the new one. There are four main conversion strategies: four main conversion strategies:

– Parallel strategyParallel strategy: Both the new and old : Both the new and old systems are run together until everyone is systems are run together until everyone is assured that the new system functions assured that the new system functions correctlycorrectly

– Direct cutoverDirect cutover: Replaces the old system with : Replaces the old system with the new one on a specific datethe new one on a specific date

– Pilot studyPilot study: Introduces the new system first to : Introduces the new system first to a limited area of the organization, and when a limited area of the organization, and when the pilot version is working correctly, then the pilot version is working correctly, then installed throughout the rest of the installed throughout the rest of the organizationorganization

– Phased approachPhased approach: Introduces the new system : Introduces the new system in stages, either by functions or by in stages, either by functions or by organizational units organizational units


Moving from an old system to a new one requires that end users be trained to Moving from an old system to a new one requires that end users be trained to use the new system. Detailed use the new system. Detailed documentationdocumentation showing how the system works showing how the system works from both a technical and end-user standpoint is finalized during conversion from both a technical and end-user standpoint is finalized during conversion time for use in training and everyday operations.time for use in training and everyday operations.

The production stage is in effect after the system is installed and conversion is The production stage is in effect after the system is installed and conversion is complete. The system is reviewed to determine if it meets the original complete. The system is reviewed to determine if it meets the original objectives. In some instances, a formal objectives. In some instances, a formal postimplementation auditpostimplementation audit document is prepared. Changes in hardware, software, documentation, or document is prepared. Changes in hardware, software, documentation, or procedures to a production system to correct errors, meet new requirements, procedures to a production system to correct errors, meet new requirements, or improve processing efficiency are termed or improve processing efficiency are termed maintenancemaintenance

Structured methodologies and object-oriented development are the most Structured methodologies and object-oriented development are the most prominent methodologies for modeling and designing systems.prominent methodologies for modeling and designing systems.

StructuredStructured methodologies have been used since the 1970s to document, methodologies have been used since the 1970s to document, analyze, and design information systems. Structured development methods analyze, and design information systems. Structured development methods are process-oriented, focusing primarily on modeling the processes, or actions are process-oriented, focusing primarily on modeling the processes, or actions that capture, store, manipulate, and distribute data as the data flow through a that capture, store, manipulate, and distribute data as the data flow through a system. These methods separate data from processes. A separate system. These methods separate data from processes. A separate programming procedure must be written every time someone wants to take programming procedure must be written every time someone wants to take an action on a particular piece of data.an action on a particular piece of data.


Tools used in structured development include: Tools used in structured development include:

Data flow diagramsData flow diagrams: Offer a logical graphic model of : Offer a logical graphic model of information flow, partitioning a system into modules that information flow, partitioning a system into modules that show manageable levels of detail. It specifies the show manageable levels of detail. It specifies the processes or transformations that occur within each processes or transformations that occur within each module and the interfaces that exist between them. module and the interfaces that exist between them. Leveled data flow diagrams break systems into high-Leveled data flow diagrams break systems into high-level data flows and additional diagrams for subsystems level data flows and additional diagrams for subsystems at lower levels.at lower levels.Data dictionariesData dictionaries: Defines the contents of data flows : Defines the contents of data flows and data stores so that systems builders understand and data stores so that systems builders understand exactly what pieces of data they contain.exactly what pieces of data they contain.Process specificationsProcess specifications: Describe the transformation : Describe the transformation occurring within the lowest level of the data flow occurring within the lowest level of the data flow diagrams. diagrams. Structure chartsStructure charts: Top-down charts showing each level : Top-down charts showing each level of design, its relationship to other levels, and its place in of design, its relationship to other levels, and its place in the overall design structure. the overall design structure.


FIGURE 13-5 DATA FLOW DIAGRAM FOR MAIL-FIGURE 13-5 DATA FLOW DIAGRAM FOR MAIL-IN UNIVERSITY REGISTRATION SYSTEMIN UNIVERSITY REGISTRATION SYSTEM

The system has three processes: Verify availability (1.0), Enroll student (2.0), and The system has three processes: Verify availability (1.0), Enroll student (2.0), and Confirm registration (3.0). The name and content of each of the data flows appear Confirm registration (3.0). The name and content of each of the data flows appear

adjacent to each arrow. There is one external entity in this system: the student. There are adjacent to each arrow. There is one external entity in this system: the student. There are two data stores: the student master file and the course file. two data stores: the student master file and the course file.


FIGURE 13-6 HIGH-LEVEL STRUCTURE CHART FIGURE 13-6 HIGH-LEVEL STRUCTURE CHART FOR A PAYROLL SYSTEMFOR A PAYROLL SYSTEM

This structure chart shows the highest or most abstract level of design This structure chart shows the highest or most abstract level of design for a payroll system, providing an overview of the entire system. for a payroll system, providing an overview of the entire system.


Object-oriented developmentObject-oriented development uses the uses the objectobject as the basic as the basic unit of systems analysis and design. An object combines data unit of systems analysis and design. An object combines data and the specific processes that operate on those data. Data and the specific processes that operate on those data. Data encapsulated in an object can be accessed and modified only encapsulated in an object can be accessed and modified only by the operations, or methods, associated with that object. by the operations, or methods, associated with that object. Instead of passing data to procedures, programs send a Instead of passing data to procedures, programs send a message for an object to perform an operation that is already message for an object to perform an operation that is already embedded in it. The system is modeled as a collection of embedded in it. The system is modeled as a collection of objects and the relationships among them.objects and the relationships among them.

Object-oriented modeling is based on the concepts of class Object-oriented modeling is based on the concepts of class and inheritance. Objects belonging to a certain class, or and inheritance. Objects belonging to a certain class, or general categories of similar objects, have the features of that general categories of similar objects, have the features of that class. Classes of objects in turn can inherit all the structure class. Classes of objects in turn can inherit all the structure and behaviors of a more general class and then add variables and behaviors of a more general class and then add variables and behaviors unique to each object. and behaviors unique to each object.


FIGURE 13-7 CLASS AND INHERITANCEFIGURE 13-7 CLASS AND INHERITANCEThis figure illustrates how classes inherit the common This figure illustrates how classes inherit the common

features of their superclass. features of their superclass.


The phases of object-oriented development are similar to those of The phases of object-oriented development are similar to those of conventional systems development, consisting of analysis, design, and conventional systems development, consisting of analysis, design, and implementation. However, object-oriented development is more iterative implementation. However, object-oriented development is more iterative and incremental than traditional structured development.and incremental than traditional structured development.In object-oriented development, a system is implemented by translating In object-oriented development, a system is implemented by translating the design into program code, reusing classes that are already available in the design into program code, reusing classes that are already available in a library of reusable software objects and adding new ones created during a library of reusable software objects and adding new ones created during the object-oriented design phase. Implementation may also involve the the object-oriented design phase. Implementation may also involve the creation of an object-oriented database. Because objects are reusable, creation of an object-oriented database. Because objects are reusable, object-oriented development could potentially reduce the time and cost of object-oriented development could potentially reduce the time and cost of writing software because organizations can reuse software objects that writing software because organizations can reuse software objects that have already been created as building blocks for other applications.have already been created as building blocks for other applications.

Computer-aided software engineering (CASE)Computer-aided software engineering (CASE), sometimes called , sometimes called computer aided systems engineering, is the automation of step-by-step computer aided systems engineering, is the automation of step-by-step methodologies for software and systems development to reduce repetitive methodologies for software and systems development to reduce repetitive work. CASE tools attempt to increase productivity and quality by work. CASE tools attempt to increase productivity and quality by facilitating the creation and revision of design specifications and program facilitating the creation and revision of design specifications and program code. CASE tools provide automated facilities for producing charts and code. CASE tools provide automated facilities for producing charts and diagrams, screen and report generators, data dictionaries, analysis and diagrams, screen and report generators, data dictionaries, analysis and checking tools, code generators, and document generators. The best CASE checking tools, code generators, and document generators. The best CASE tools enforce common methods and standards, improve communication tools enforce common methods and standards, improve communication between users and technical specialists, organize and correlate design between users and technical specialists, organize and correlate design elements, automate tedious and error-prone portions of analysis and elements, automate tedious and error-prone portions of analysis and design, and automate code generation, testing, and control rollout. design, and automate code generation, testing, and control rollout.


Alternative System-Building ApproachesThere are Alternative System-Building ApproachesThere are alternative methods for building an information system. alternative methods for building an information system. They include:They include:

– Systems lifecycle Systems lifecycle – Prototyping Prototyping – Application software packages Application software packages – End-user development End-user development – Outsourcing Outsourcing

The The systems lifecyclesystems lifecycle is a traditional methodology that is a traditional methodology that uses a phased approach to building a system, dividing uses a phased approach to building a system, dividing systems development into formal stages, roughly systems development into formal stages, roughly corresponding to the stages of systems development. corresponding to the stages of systems development. Each stage consists of basic activities that must be Each stage consists of basic activities that must be performed before the next stage can begin. Technical performed before the next stage can begin. Technical specialists are responsible for much of the systems specialists are responsible for much of the systems analysis, design, and implementation work; end users analysis, design, and implementation work; end users are limited to providing information requirements and are limited to providing information requirements and reviewing the work of the technical staff.reviewing the work of the technical staff.


PrototypingPrototyping is the process of building an is the process of building an experimental system quickly and inexpensively for experimental system quickly and inexpensively for demonstration and evaluation so that end users can demonstration and evaluation so that end users can better define information requirements. The better define information requirements. The prototypeprototype is a preliminary model that is refined is a preliminary model that is refined until it meets end-user requirements. The process until it meets end-user requirements. The process of repeating the steps to build a system over and of repeating the steps to build a system over and over again is called an iterative process. over again is called an iterative process. Prototyping is more explicitly Prototyping is more explicitly iterativeiterative than the than the conventional life cycle and it actively promotes conventional life cycle and it actively promotes system design changes.system design changes.The four-step model of the prototyping process The four-step model of the prototyping process consists of the following:consists of the following:

– Identify the user's basic requirements Identify the user's basic requirements – Develop a working prototype Develop a working prototype – Use the prototype Use the prototype – Revise and enhance the prototype Revise and enhance the prototype


FIGURE 13-8 THE PROTOTYPING PROCESSFIGURE 13-8 THE PROTOTYPING PROCESSThe process of developing a prototype can be broken down into four steps. Because a The process of developing a prototype can be broken down into four steps. Because a

prototype can be developed quickly and inexpensively, systems builders can go through prototype can be developed quickly and inexpensively, systems builders can go through several iterations, repeating steps 3 and 4, to refine and enhance the prototype before several iterations, repeating steps 3 and 4, to refine and enhance the prototype before

arriving at the final operational one. arriving at the final operational one.


Prototyping is most useful when some Prototyping is most useful when some uncertainty exists about user requirements uncertainty exists about user requirements or a design solution. It is especially valuable or a design solution. It is especially valuable for the design of the for the design of the end-user interfaceend-user interface of of an information system such as on-line an information system such as on-line display and data entry screens. End-user display and data entry screens. End-user involvement means that the system is more involvement means that the system is more likely to fill user requirements. However, likely to fill user requirements. However, rapid prototyping can gloss over essential rapid prototyping can gloss over essential programming and documentation steps, or programming and documentation steps, or be poorly designed for large quantities of be poorly designed for large quantities of data. data.


In In end-user developmentend-user development, software tools called , software tools called fourth-fourth-generation languagesgeneration languages enable end users to create enable end users to create reports or develop software applications with minimal or reports or develop software applications with minimal or no technical assistance. There are seven categories of no technical assistance. There are seven categories of fourth-generation languages: fourth-generation languages:

– PC software tools PC software tools – Query languages Query languages – Report generators Report generators – Graphics languages Graphics languages – Application generators Application generators – Application software packages Application software packages – Very high level programming languages Very high level programming languages

Query languagesQuery languages are software tools that provide are software tools that provide immediate online answers to requests for information that immediate online answers to requests for information that are not predefined, such as "Who are the highest-are not predefined, such as "Who are the highest-performing sales representatives?" Query languages are performing sales representatives?" Query languages are often tied to data management software and to database often tied to data management software and to database management systems.management systems.


On the whole, end-user-developed systems are completed more rapidly than those developed through the conventional systems life cycle. However, fourth-generation tools still cannot replace conventional tools for some business applications because they cannot easily handle the processing of large numbers of transactions or applications with extensive procedural logic and updating requirements. When systems are created rapidly, without a formal development methodology, testing and documentation may be inadequate. Control over data can be lost in systems outside the traditional information systems department.

An application software package, another strategy in developing an information system, is a set of prewritten, precoded application software programs that are commercially available for sale or lease. There are application software packages available for simple tasks and for complex mainframe systems. Packages are likely to be chosen as a development strategy where functions, such as payroll systems, are common to many companies or where there are limited information systems resources for in-house development and when microcomputer applications are being developed for end users.


The use of software packages, along with vendor's The use of software packages, along with vendor's support staff and documentation reduces costly systems support staff and documentation reduces costly systems design work and maintenance and support costs. Some design work and maintenance and support costs. Some package software developers provide some features for package software developers provide some features for customizationcustomization, which allows a package to be modified to , which allows a package to be modified to meet unique requirements without destroying the meet unique requirements without destroying the integrity of the package software.integrity of the package software.

The key criteria in evaluating application software The key criteria in evaluating application software packages are: functions; flexibility, user-friendliness, packages are: functions; flexibility, user-friendliness, hardware, software resources, database requirements, hardware, software resources, database requirements, installation and maintenance effort, documentation, installation and maintenance effort, documentation, vendor quality, and cost. The package evaluation process vendor quality, and cost. The package evaluation process is often based on a is often based on a request for proposal (RFP), which , which is a detailed list of questions submitted to vendors of is a detailed list of questions submitted to vendors of packaged software. Design activities focus on matching packaged software. Design activities focus on matching requirements to package features. Instead of tailoring the requirements to package features. Instead of tailoring the systems design specifications directly to user systems design specifications directly to user requirements, the design effort will consist of trying to requirements, the design effort will consist of trying to mold user requirements to conform to the features of the mold user requirements to conform to the features of the package. package.


Outsourcing means using an external vendor to build or operate a firm's information systems. The . The system may be custom built or may use a software system may be custom built or may use a software package. In either case, the work is done by the package. In either case, the work is done by the vendor rather than by the organization's internal vendor rather than by the organization's internal information systems staff.information systems staff.

Outsourcing often saves application development Outsourcing often saves application development costs or allows firms to develop applications without costs or allows firms to develop applications without an internal information system staff, but it can also an internal information system staff, but it can also mean a loss of control over their information mean a loss of control over their information systems, overdependence on external vendors, and systems, overdependence on external vendors, and may involve unforeseen, hidden costs. Outsourcing may involve unforeseen, hidden costs. Outsourcing is appropriate for applications that are not sources is appropriate for applications that are not sources of competitive advantage or that require technical of competitive advantage or that require technical expertise not available in the firm. expertise not available in the firm.


Application Development for the Digital FirmApplication Development for the Digital FirmIn addition to using software packages, application service providers, In addition to using software packages, application service providers, and other outsourcing services, businesses are relying more heavily and other outsourcing services, businesses are relying more heavily on fast-cycle techniques such as joint application design (JAD), on fast-cycle techniques such as joint application design (JAD), prototypes, and reusable standardized software components that can prototypes, and reusable standardized software components that can be assembled into a complete set of services for e-commerce and e-be assembled into a complete set of services for e-commerce and e-business.business.Rapid application development (RAD)Rapid application development (RAD) includes the use of visual includes the use of visual programming and other tools for building graphical user interfaces, programming and other tools for building graphical user interfaces, iterative prototyping of key system elements, the automation of iterative prototyping of key system elements, the automation of program code generation, and close teamwork among end users and program code generation, and close teamwork among end users and information systems specialists. Simple systems often are assembled information systems specialists. Simple systems often are assembled from prebuilt components. The process does not have to be from prebuilt components. The process does not have to be sequential, and key parts of development occur simultaneously.sequential, and key parts of development occur simultaneously.Joint application design (JAD) is used to accelerate the generation is used to accelerate the generation of information requirements and to develop the initial systems of information requirements and to develop the initial systems design. JAD brings end users and information systems specialists design. JAD brings end users and information systems specialists together in an interactive session to discuss the system's design.together in an interactive session to discuss the system's design.


In In object-oriented developmentobject-oriented development, groups of objects , groups of objects are assembled to provide software components for are assembled to provide software components for common functions such as online ordering common functions such as online ordering capability. This capability. This component-based developmentcomponent-based development enables a system to be built by assembling and enables a system to be built by assembling and integrating existing software components.integrating existing software components.

In addition to supporting internal and external In addition to supporting internal and external integration of systems, Web services are used as integration of systems, Web services are used as tools for building new information system tools for building new information system applications or enhancing existing systems. Web applications or enhancing existing systems. Web services create software components that are services create software components that are deliverable over the Internet and provide new deliverable over the Internet and provide new functions for an organization's existing systems or functions for an organization's existing systems or create new systems that link an organization's create new systems that link an organization's systems to those of other organizations. systems to those of other organizations.


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#12 Building Inf Systems Ch13