PART III
Chapters 9 & 10
Information Systems
Management in Practice
8th Edition
© 2009 Pearson Education, Inc. Publishing as Prentice Hall
Part III - Managing System
Development


Next two chapters deal with developing
enterprise-based systems through systems
development
Chapter 9: Foundations of system
development

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Technologies and methodologies
Chapter 10: Management Issues


Project management
Measuring the benefits of systems
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A Framework for IS
Management
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Technologies for
Developing Systems
Chapter 9
Information Systems
Management in Practice
8th Edition
© 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 9

Provides an understanding of the
fundamental principles of system
development using an evolutionary
approach.
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Underlying technologies
Development methodologies
Internet-based systems
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Today’s Lecture
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Introduction
Foundations of Systems Development
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Structured Development
Fourth-Generation Languages
Software Prototyping
Computer-Aided Software Engineering
Object-Oriented Development
Client-Server Computing
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Today’s Lecture cont’d
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System Integration
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ERP Systems
Middleware
Interorganizational System Development
Internet-Based Systems
Conclusion
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Introduction
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1970s: System Development Lifecycle (SDLC)
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1980s: “Friendly” 4GL (algorithms to solve
problems)
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Reduces programming effort
SQL, Postscript, SAS, MathLab, Cold Fusion
1990s: Business Process Reengineering
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Improved process of building system (methodical)
ERP
Late 1990s and 2000s: Internet-based systems
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Networks and open systems
Internet centricity (Web services)
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Foundations of Systems
Development
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Structured Development
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Systems development a “craft” in the early
years
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Evolved to a structured process in 1970s
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More art than science
Took a more scientific approach
3GL, DBMS, mainframes, professional
programmers, well-defined processes
Classical Waterfall approach

Much touted but rarely used in its pure form
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Waterfall Approach
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Structured Development
cont’d

Structured development methodologies
accompanied this SDLC, characterized by:
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Discipline (Best practices)
Modularity (Divide and conquer)
Reliability (few errors)
Efficient use of resources (Cost effectiveness)
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Fourth-Generation Languages
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4GL & Prototyping developed in early 1980s
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4GL is more than a computer language. They are
programming environments
4GL facilitated:
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Development of some programs by end users
Use of different development methods
(prototyping)
Focus on problem-solving and system design
rather laborious ‘coding’ – automated coding
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Fourth-Generation Languages
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Software Prototyping
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A software prototype is a live “work-in-progress”
system that may be implemented as an actual
production system of some variant
An iterative process to test assumptions and gather
feedback about:
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User requirements
Application design
Program logic
Quick and relatively inexpensive method for system
development
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Xtreme Programming (agile method)
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Computer-Aided Software
Engineering
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CASE developed in 1980s: Automation of 1970s
structured development techniques to reduce
tediousness and maintenance costs
CASE tools help quickly design, develop, deploy
and maintain software
CASE environment includes:
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Information repository (database)
Front-end tools for planning through design
Back-end tools for generating code
Development workstation
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Computer-Aided Software
Engineering cont’d
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Timeboxing
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CASE technique used to guarantee delivery of a
system within a fixed period (120 days)
Rapid Application Development (RAD):
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IS departments that aim for speed over
complexity also employ RAD (based on concept
of prototyping) to complement CASE
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Dupont Cable Management
Services
Case example: CASE and RAD
 Needed a software system to manage its
telephones and voice network systems throughout
offices
 Use CASE and timeboxing to build a custom system
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Day 1: Go ahead
Day 2-30: Defining components of system
Day 31-90: Designing the specifications, developing
prototype
Day 91-120: Installed the system, followed by second
timebox
Final production system took 9 months, vis-à-vis 2-3
years in other firms
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Object-Oriented Development
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OO development introduced a radical change
in systems development in the late 1980s
Modular nature (crux of OO)
Code packaging technique
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Objects (with specific attributes)
Methods (to access attributes of objects)
Think about how you programmed in JAVA
Point-and click programming (GUI)
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Visual programming (e.g., Visual Basic)
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Client-Server Computing
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Discussed in earlier chapters
Early 1990s architecture
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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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MGM
Case example: Client-Server Computing
 Previously, 26 disparate systems (PCs,
workstations, mainframes) used to maintain
huge library of TV shows and movies
 Developed a client-server system to
consolidate all data on the film library

Sales executives can access film clips, verify film
availability and generate deal memos on their
laptops from anywhere
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MGM cont’d
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Prototyping was utilized and thus
development environment characterized by
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
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Constant interaction between developers and
users
Users and developers were equal partners (no
boss)
An IT-triggered organizational change
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Role of IS at MGM changed from purely system
development to one of cooperation and
partnership (more synergy)
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System Integration
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Systems integration poses the biggest problem to IS
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Complex
Expensive
Risky
Number of products can help facilitate the
integration of systems
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DBMS (e.g., Oracle)
ERP (e.g., SAP)
Middleware
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ERP Systems
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ERP provides the means to integrate business
departments and functions across an organization
(business ‘streams’)
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Single vendor (e.g. SAP)
Single set of applications
Single database
Many successes and failures historically
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Functionality (<59%)
Completed on time and within budget (<10%)
Business value? (“technical myopism” common)
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Colgate Palmolive
Case Example: Successful ERP
 Dire need for organizational change when it faced a
competitive crisis in the mid-1990s
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Management needed to develop products, reduce product
delivery cycle, and reduce cost of operations
Strategic vision: Become a global company with integrated
business environment and standardized processes
Existing complex decentralized IT infrastructure
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
Coordination problems
Stymied firm growth
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Colgate Palmolive cont’d
Implemented SAP R/3 system to integrate
worldwide operations, across business functions.
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Took 5 years and $430 million to complete.
Business value
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Significant operational savings
Savings allocated R&D for new products
60% reduction in product delivery cycle
Improved cooperation amongst regional subsidiaries and
suppliers
Regained number one market position
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Middleware
Middleware is a class of software products that
enables IS to integrate disparate systems
(“translator”)
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Variety of applications
Different platforms
Legacy systems with newer systems
Middleware used for several functionalities
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Data sharing
Transactions
Security
Software distribution and synchronization
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Interorganizational System
Development
Business ecosystems
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Groupings of businesses working together to reduce costs
and time across value chains
Supply chain management systems (SCM)
Requires teams from different organizations to work
together
Platform (another type — service provider role)
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Provides infrastructure for the operation of a business
ecosystem
SABRE reservation system and more recently Amazon
Web Services
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ExxonMobil
Case Example: Platform
 Mobil created SpeedPass in 1996
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1.5”-long keychain gadget that enables customers
to wave at a reader when paying for gas
Objective was to “speed” motorists in and out
Business Value
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Improved customer satisfaction (convenience)
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
5 million SpeedPass holders to date
Speedpass holders purchase more Mobil gas and
more frequently
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ExxonMobil cont’d
Case Example: Platform
 To leverage the technology, Mobil teamed up
with McDonald’s restaurants in Chicago to
test the use of SpeedPass to pay for food
 Plans to develop similar partnerships with
other chains
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Create network externalities (increase value of
SpeedPass)
Can Mobil do more? Is technology imitable?
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ExxonMobil cont’d
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Hong Kong Exchanges and
Clearing
Case Example: Interorganizational System Dev
 Implemented open trading architecture to improve
competitiveness
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Open trading system a complex project
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AMS/3 system
 Integrate and automate entire trading process
 Investors, brokers, markets
2 years to complete
Involved 40 staff members, 150 consultants and 500
brokerage firms
Successful phased rollout and now foundation of
industry ecosystem
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Internet-Based Systems
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Internet-based systems are where the system
development action is occurring.
Examine three aspects and instances:
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Framework
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Language
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Application Servers
Java
Environment
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Web Services
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Application Servers
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Preferred framework for developing Internet-based
systems
Architecture
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Goal
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Virtual server takes requests, runs business logic, and
provides connectivity to back-end systems
Automate and manage technical tasks in development and
running of Internet-based applications
Result

Developers can focus more on business issues, rather
than technical details
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Application Servers
FIGURE 9-4 An Application Server Architecture
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Java
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“Platform independent” promise
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Evolved into standard platform for developing
server-side applications
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“Write once, run anywhere”
But poor compatiblity with other languages, e.g. C++
Enterprise Java Beans (EJB)
Java 2 Enterprise Edition (J2EE)
Powerful starting point for building online systems
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Multivendor platform capability
Pre-built package
Reusable components
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Web Services
Web Services vision
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
Modules of code can be assembled into
services, then linked to business processes as
needed and run across enterprises, computing
platforms and data models
Two development modes

1.
2.
Existing piece of code encapsulated in XML
wrapper (exposing) and designated an IP
address for accessibility
Use existing exposed code
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Building a Web Service
Case Example: Web Services
 Building a Web-based currency converter
1.
2.
3.
4.
5.
Expose the code
Write a service description
Publish the service
Find a currency conversion Web service
Invoke a Web service
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Building a Web Service
FIGURE 9-5 Building a Web service
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Bekins
Case Example: Web Services
 Moving company’s HomeDirectUSA division
delivers large household appliances
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Uses some 1,000 independent agents
Coordination mechanism
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Formerly fax and phone system
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Not efficient and equitable to all agents
Created JAVA-based online broking system (TBE)
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Tender jobs to all agents
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Bekins cont’d
Case Example: Web Services
 Results
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Lower tendering costs
Faster customer service
Better resource utilization (agents’ trucks)
System was so efficient
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Even lower margin jobs farmed out to agents
Increased shipping volumes and revenues
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Bekins cont’d
Case Example: Web Services
 TBE Components
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Java (e-commerce platform)
IBM WebSphere (applications)
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Shipment Tracking System
Customer Order Management System
STARS (mobile app for handheld devices in 2005)
XML, SOAP, WSDL, UDDI (Web Services
standards)
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Bekins cont’d
Case Example: Web Services
 Building TBE
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
Required “buy-in” (commitment and comfort) from
several moving partners
An interorganizational system
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Contingencies for Building a
Web Service

Preparing for On-The-Fly Web Service Dev

Today’s killer app cannot fulfill tomorrow’s needs


Develop scalable and adaptable systems
Personal silos of data and apps and intertwining
of a variety of Web Services

IS must devise schemes and implement systems to
manage these inevitabilities
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Conclusion

Evolution of system development





Craft (1960s)
Discipline, control and efficiency (1970s)
Better development tools and methods (1980s)
Client-server, integration, Internet-based systems
(1990s-2000s)
Today: Focus on interorganizational systems and
Internet-based systems

Role of IS even more salient (project management)
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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