Chapter 4
Organisational
Themes
Themes in IS development

Important themes in IS development have arisen over
time, partly out of the debate over SDLC
 organizational needs: systems approach, strategic
IS, BPR, IS planning, project management, stages of
growth
 modelling of data, processes, objects
 engineering and construction of information systems
 software engineering
 role of people in ISD: participation, expert systems,
end-user computing, knowledge management,
customer orientation
 external development: packages, ERP, outsourcing
2
Learning Objectives
At the
conclusion of
this lesson
the student
will be able
to:
1.
2.
3.
4.
5.
6.
Describe system thinking.
Define human activity system.
Determine Information system
strategy & ISP
Determine Benefit realization
Summarize BPR
Restate several models
pertaining to IS & organizational
themes.
3
The concept of system






a system is a collection of parts
which interact with one another
a system does something, or is for
something
the parts function so as to
contribute to the operation of the
system as a whole (synergy)
the behaviour of the whole is not
the sum of the behaviours of the
parts, but arises from the
interaction of the parts
(emergence)
the parts are organized in a
hierarchy

systems are open or closed to
their environment
materials move across the
boundary of an open system
open systems maintain a
balance with the environment
(homeostasis) through negative
feedback

open systems tend to increase
in orderliness through internal
elaboration (negative entropy)

open systems are goal directed
but non-deterministic: ends are
achievable by a variety of
means (equifinality)
4
The
organization
as
a
system
ENVIRONMENT
/MARKET
targets
standards
norms..
CONTROL
external
indicators
actual
performance
OUTPUTS
INPUTS
-
materials
energy
information
components
TRANSFORMATION
PROCESSES
- products
- services
- waste
BOUNDARY
5
Systems thinking (1/4)






Systems
Boundary
Environment
Open systems
Purpose
Soft systems
6
Systems thinking (2/4)


Systems thinking is a mental model that promotes the belief
that the component parts of a system will act differently when
isolated from its environment or other parts of the system. It
includes viewing systems in a holistic manner. It promotes
gaining insights into the whole by understanding the linkages
and interactions between the elements that comprise the whole
"system".
Systems Thinking recognizes that all human activity systems are
open systems; therefore, they are affected by the environment
in which they exist. Systems Thinking recognizes that in
complex systems events are separated by distance and time;
therefore, small catalytic events can cause large changes in the
system. Systems thinking acknowledges that a change in one
area of a system can adversely affect another area of the
system; thus, it promotes organizational communication at all
levels in order to avoid the silo effect.
7
Systems thinking (3/4)
Systems thinkers consider that:
 a "system" is a dynamic and complex whole,
interacting as a structured functional unit
 information flows between the different elements
that compose the system
 a system is a community situated within an
environment
 information flows from and to the surrounding
environment via semi-permeable membranes or
boundaries
 systems are often composed of entities seeking
equilibrium, but can exhibit oscillating, chaotic, or
exponential growth/decay behavior
8
Systems thinking (4/4)



Systems thinking uses a variety of techniques that may be
divided into:
Hard systems - involving simulations, often using computers and
the techniques of operations research. Useful for problems that
can justifiably be quantified. However it cannot easily take into
account unquantifiable variables (opinions, culture, politics, etc),
and may treat people as being passive, rather than having
complex motivations.
Soft systems - Used to tackle systems that cannot easily be
quantified, especially those involving people interacting with
each other or with "systems". Useful for understanding
motivations, viewpoints, and interactions but, naturally, it
doesn't give quantified answers. Soft systems is a field that the
academic Peter Checkland has done much to develop.
Think systemically before proceeding systematically
Source: Wikipedia
9
What is systemic thinking?
Systemic thinking is:
thinking in terms of situation-wide patterns and a simple technique for
surfacing those situation-wide patterns
What does “systemic” mean?
Systemic means “situation-wide” – or “throughout the entire situation”.
A systemic problem is a situation-wide problem – a problem that occurs
throughout the entire situation.
A systemic solution is a situation-wide solution – a solution that applies
across the entire situation.
The word systemic comes from the recognition that everything is part of a
system – in other words, everything interacts with the things around
it. Systemic actually means “system-wide” or “throughout the system”, but
many people can’t help thinking that system means “computer system,” so we
talk in terms of “situation-wide” patterns instead of “system-wide” patterns.
http://www.probsolv.com/prodsol/about/FAQ.html
10
Human Activity System


HAS is an assembly of people and other
resources organized into a whole in order to
accomplish a purpose.
The people in the system are affected by
being in the system, and by their participation
in the system they affect the system. People
in the system select and carry out activities -individually and collectively -- that will enable
them to attain a collectively identified
purpose.
Source: http://www.isss.org/primer/bela6.html
11
12
The structure of human activity (Engeström, 1987, p. 78 from the page:
http://www.edu.helsinki.fi/activity/pages/chatanddwr/activitysystem)
13
Information systems strategy




Efficiency
Cost-benefit
Competitive advantage
Effectiveness




Redefine the boundaries of particular industries
Develop new products or services
Change the relationships between suppliers and
customers
Establish barriers to deter new entrants to
marketplaces
14
Benefit realisation
Benefit Realisation is the
process of realising actual
outcomes by breaking
down strategic objectives
via programmes and
projects then monitoring
the outputs to confirm
intended benefits have
actually been achieved
Benefit realisation IS
NOT only about
whether the project
delivered things on
time to budget etc.
15
The Levels of Benefit Realisation
Organisation success.
Strategies implemented
Economic & ‘Customer’
Value add
Project success.
Business Objectives are met
financial, performance,
Fitness for purpose
Project management success.
Time, cost, quality
results versus project
plan.
16
Porter’s framework of competitive strategy
17
Porter’s framework of competitive strategy
 It deals with the industry and competitive
dynamics
 It highlights that competition is not simply
concerned with the action of rivals
 It facilitates discussion and is based on sound
principles of industrial economics
 It focuses on the few dominant forces
necessary
18
Strategic role of IT (Earl, 1989)
19
IT strategies


Technology driven model
Competitor-driven model
20
Earl’s multiple methodology
21
Current systems audit grid
Technical
Quality:
Reliable?
Maintainable?
Cost-Efficient?
Business
Value:
Necessary?
Easy to use?
How often
used?
22
Using the Grid
Place systems in their boxes, using judgement,
and factual analysis.
A Low value + Low quality = Get Rid
A High value + Low quality = Upgrade
A Low value + High quality = Do we need it?
A High value + High quality = Ace area
23
Business process re-engineering
(BPR)
The fundamental rethinking and radical
redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance,
such as cost, quality, service, and speed
(Hammer & Champy, 1993)
24
Reasons why organisations reengineer




They face severe commercial pressures and have no
choice
Competitive forces present problems unless the
organisation takes radical steps to re-align business
processes with strategic positioning
Management in the organisation regard reengineering as an opportunity to take a lead over the
competition
Publicity about BPR has prompted organisations to
follow the lead established by others
25
Outcomes of BPR programmes



Flatter organisational structures
Greater focus on customers
Improved teamwork, leading to a more
widespread understanding of the roles
of others
26
BPR ‘slash and burn’ (Grover)
Unfortunately, many corporations responded
to reengineering by performing major work
force reductions under the aegis of
reengineering. Such efforts were not
strategically driven, and led to firms losing
vital components of the work force that
reduced their ability to be creative and
productive ... Optimizing process at the cost
of people has been a major problem of
reengineering
27
Framework of BPR (Melao and Pidd, 2000)
28
Information systems planning



Long-term planning
Medium-term planning
Short-term planning
29
Tasks of information systems strategy group



An assessment of the strategic goals of the
organisation, which could be long-term survival,
increasing market share, increasing profits, increasing
return on capital, increasing turnover or improving
public image
An assessment of the medium-term objectives to be
used as a basis for allocating resources, evaluating
managers’ performance, monitoring progress towards
achieving long-term goals, establishing priorities
An appreciation of the activities in the organisation,
such as sales, purchasing, research and
development, personnel and finance
30
Tasks of information systems strategy group
(continued)




An appreciation of the environment of the
organisation, that is, customers, suppliers,
government, trade unions and financial institutions,
whose actions will affect business performance
An appreciation of the organisational culture relating
to values, networks and ‘rites and rituals’
An appreciation of the managerial structure in terms
of the layers of management or matrix structure,
types of decision made, the key personnel and types
of information needed to support the key personnel in
their decision making
An analysis of the roles of key personnel in the
organisation
31
Planning guidelines (Lederer and Mendelow,
1989)









Develop a formal plan
Link the information systems plan to the corporate
plan
Plan for disaster
Audit new systems
Perform a cost-benefit analysis
Develop staff
Be prepared to change
Ensure information systems development satisfies
user needs
Establish credibility through success
32
Stages of growth (Nolan)




Scope of the applications portfolio
Focus of the IT organisation
Focus of IT planning and control
Level of user awareness
R L Nolan’s organizational stages model of IT growth
• well known, influential
• pattern repeats with each major innovation - no short-cuts!
• evolutionary model - shows logic, but not mechanisms of
change
33
Stages of growth
34
Features of the Nolan stages
initiation
organization
scattered technical
specialists
contagion
start of user-oriented
services
control
middle management
control
integration
computer centre/ user
account teams
database admin/
data admin. information centre
maturity
information resource
management
control
absent or lax
uncontrolled
spread of IT
applications
selected for
efficiency gain
proliferate
indiscriminately
users
few involved
moreinvolved,
but lack skill
formal project/
upgraded,
operations control
restructured
blamed for failures,
excluded
more tailored to
organization
involved in design,
becoming
accountable
rebuilt to fit DBMS
shared data/ linked
becoming more
systems
integrated
within corporate
planning
aligned to org.
structure
responsible for own
systems
joint responsibility
with IT Dept
35
Stages of growth (Hirschheim,
et al. (1988)



Delivery
Re-orientation
Re-organisation
36
Stages of growth (Galliers and
Sutherland, 1991)






Ad hocracy
Starting the foundations
Centralised dictatorship
Democratic dialectic and cooperation
Enrepreneurial opportunity
Integrated harmonious relationships
37
Flexibility (Evans, 1991)
 Pre-emptive
manoeuvres
creating
options,
inflicting surprise or seizing initiatives
 Protective manoeuvres insuring against losses,
hedging, or creating buffers against adverse
conditions
 Corrective manoeuvres the ability to recover from
adverse situations and learn from mistakes
Democratic dialectic and cooperation
 Exploitive
manoeuvres
capitalising
on
opportunities and consolidating advantages
38
Flexibility
 The designers do not know what the
information system is to do.
 The organisation may not know how user
requirements will develop after the
information system has been introduced.
 The designers may not be certain that the
chosen development methodology will
deliver precisely what is required.
39
Project management
 Critical path or PERT analysis
 CoCoMo
 Function point analysis
 Project 2000
 PRINCE
40
Thank
You for Your
Attention
41