UNDERSTANDING THE BUSINESS VALUE OF SYSTEMS AND MANAGING CHANGE
اسلاید 1: 13UNDERSTANDINGTHE BUSINESSVALUE OF SYSTEMSAND MANAGINGCHANGEChapter
اسلاید 2: How can our company measure the business benefits of our information systems? What models should be used to measure that business value? Why do so many system projects fail? What are the principal reasons for system failures? How should the organizational change surrounding a new system be managed to ensure success?Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeOBJECTIVES
اسلاید 3: Are there any special challenges in implementing international information systems? What strategies can our organization use to manage the system implementation process more effectively?OBJECTIVESEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing Change
اسلاید 4: Determining benefits of a system when they are largely intangibleDealing with the complexity of large-scale systems projectsMANAGEMENT CHALLENGESEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing Change
اسلاید 5: Capital budgetingProcess of analyzing and selecting various proposals for capital expendituresUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeTraditional Capital Budgeting Models
اسلاید 6: Do not express the risks and uncertainty of own cost and benefits estimatesUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeLimitations of Financial Models
اسلاید 7: The ProblemNo automated way of tracking billable hoursNo secure method for communicationNo client databaseNo system to track costsUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 8: The SolutionLocal area networkLotus Notes to handle client accounting, document management, group collaboration, and e-mailUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 9: UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCosts and Benefits of the Legal Information SystemFigure 13-1
اسلاید 10: UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeFinancial ModelsFigure 13-2
اسلاید 11: The Payback MethodMeasure of time required to pay back the initial investment on a projectAccounting Rate of Return on Investment (ROI)Approximates the accounting income earned by the investmentUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 12: Present valueValue of a payment or stream of payments to be received in dollarsNet present valueAmount of money an investment is worth UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 13: Cost-benefit ratioCalculates returns from capital expenditure Profitability indexCompares profitability of alternative investments by dividing the present value of total cash inflow by initial costUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 14: Internal Rate of Return (IRR)Rate of return or profit an investment is expected to earnResults of the Capital Budgeting AnalysisCash flow positive over the time period and returns more benefits than it costsUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCase Example: Primrose, Mendelson, and Hansen
اسلاید 15: Portfolio AnalysisAnalysis of portfolio of potential applications within a firm Determines risks and benefitsSelects among alternatives for information systemsUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeStrategic Considerations
اسلاید 16: Scoring ModelsMethod for deciding among alternative systems based on a system of ratings Real Options Pricing ModelsModels for evaluating information technology investments with uncertain returns UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeStrategic Considerations
اسلاید 17: UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeA System PortfolioFigure 13-3
اسلاید 18: Knowledge Value–Added ApproachFocuses on knowledge input into a business process Determines costs and benefits of changes in business processes from new information systemsUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeStrategic Considerations
اسلاید 19: Productivity Measure of firm’s efficiency in converting inputs to outputsInformation TechnologyReduces costIncreases quality of products and servicesUNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMSEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeInformation Technology Investments and Productivity
اسلاید 20: System failureInformation system does not perform as expected, is not operational at a specified timePoor design, inaccurate data, excessive expenditure, breakdown in operationsIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeInformation System Problem Areas
اسلاید 21: THE IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeInformation System Problem AreasFigure 13-4
اسلاید 22: ImplementationOrganizational activities working towards adoption, management, and routinization of innovationChange agentIndividual acting as catalyst to ensure successful organizational adaptation to a new system or innovationIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeChange Management and the Concept of Implementation
اسلاید 23: Role of users in implementation processDegree of management support for implementation effortLevel of complexity and risk of implementation projectQuality of management of implementation processIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeCauses of Implementation Success and Failure
اسلاید 24: IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeFactors in Information System Success or FailureFigure 13-5
اسلاید 25: User–designer communications gapDifferent backgrounds, interests, and priorities Impedes communication and problem solving among end users and information systems specialistsIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeUser Involvement and Influence
اسلاید 26: Project requires backing and commitment of management at various levels Perceived positively by both users and technical information services staffIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeManagement Support and Commitment
اسلاید 27: Project size: Larger project has greater riskProject structure: Clear and straightforward requirements help define outputs and processes Experience with technology: Project risk rises if project team and information system staff lack required technical expertiseIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeLevel of Complexity and Risk
اسلاید 28: Improper management leads to:Cost overruns Unexpected time slippageTechnical shortfalls Failure to obtain anticipated benefitsIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeManagement of the Implementation Process
اسلاید 29: IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeConsequences of Poor Project ManagementFigure 13-6
اسلاید 30: System Challenges of Mergers and AcquisitionsIntegrating systemsOrganizational characteristics Information technology infrastructuresIMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeChange Management Challenges for Enterprise Applications, Business Process Reengineering (BPR), and Mergers and Acquisitions
اسلاید 31: Disparate Information Requirements and Business ProcessesTransborder data flow: Movement of information across international boundaries in any formTechnology Hurdles: Lack of standards and connectivity in hardware, software, and telecommunications IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeThe Challenge of Implementing Global Systems
اسلاید 32: Local User Resistance to Global Systems: Difficult to convince local managers to change their business processes IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILUREEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeThe Challenge of Implementing Global Systems
اسلاید 33: Managing Technical Complexity: Usage of internal integration tools to ensure operation of implementation team Formal Planning and Control Tools: Structures and sequences tasks, monitors progress towards fulfillment of goalsMANAGING IMPLEMENTATIONEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeControlling Risk Factors
اسلاید 34: Increasing User Involvement and Overcoming User Resistance: Linking work of implementation team to that of users at all organizational levelsEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeControlling Risk FactorsMANAGING IMPLEMENTATION
اسلاید 35: Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeFormal planning and control tools help to manage information systems projects successfullyFigure 13-7MANAGING IMPLEMENTATION
اسلاید 36: Allowing for the Human FactorInteraction of people and machines in work environmentSociotechnical Design Produces information system blending technical efficiency with sensitivity to organizational and human needsEssentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeDesigning for the OrganizationMANAGING IMPLEMENTATION
اسلاید 37: Core systemsSupport functions absolutely critical to organizationImplementation Tactics: CooptationBringing opposition into process of designing and implementing a solution Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeManaging Global ImplementationsMANAGING IMPLEMENTATION
اسلاید 38: Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeFigure 13-8MANAGING IMPLEMENTATION
اسلاید 39: Creating a Global Technology InfrastructureBuild international private networkRely on value added network serviceUse Internet technologyBuild global intranets Use Virtual Private Networks Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeManaging Global ImplementationsMANAGING IMPLEMENTATION
اسلاید 40: Project planning is an enterprise-wide focusManagers focus on solving problems and meeting challenges Essentials of Management Information SystemsChapter 13 Understanding the Business Value of Systems and Managing ChangeFourth-Generation Project ManagementMANAGING IMPLEMENTATION
اسلاید 41: 13UNDERSTANDINGTHE BUSINESSVALUE OF SYSTEMSAND MANAGINGCHANGEChapter
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