Interactive Session:Technology: What Does It Take To Go Mobile?
Interactive Session:Technology: What Does It Take To Go Mobile?
Interactive Session:Technology: What Does It Take To Go Mobile?
a smartphone and automatically submit it to the ogy as well. The company revamped its mobile Web
bank. The money is instantly deposited in the site in March 2011 to increase sales leads by helping
customer’s account. This system eliminates the potential customers with mobile phones find its loca-
labor and expense of processing paper checks, as tions, look at its products, register with the company,
well as the time required to mail the check and and call directly. Ryland’s development team made
wait three days for the deposit to clear. In 2011, the site easier to read and capable of fitting on a
USAA Federal Savings Bank processed $6.4 billion smartphone or tablet screen without requiring users
in deposits through this mobile app. to pinch and zoom. It used jQuery Mobile software
The mobile app also displays loan and credit card and responsive Web design to create variations of the
balances, shopping services, homeowners and auto site that were appropriate for different smartphone
insurance policy information, Home Circle and or tablet models employed by users. (The jQuery
Auto Circle buying services, retirement products Mobile framework allows developers to design a
and information, ATM and taxi locators, and a single Web site or application that will work on all
communities feature that lets users see what others popular smartphone, tablet, and desktop platforms,
are posting about USAA on Twitter, Facebook, and eliminating the need to write unique apps for each
YouTube. mobile device or operating system.) Ryland focused
A real estate company may want to display a on features such as location-based driving directions
completely different site to mobile users who are to nearby communities, clickable phone numbers,
looking for house information after driving by a and brief online registrations to increase the chances
“For Sale” sign. The realtor may want to optimize of making a sale. The site shows nearby communi-
the mobile interface to include specific listing and ties in order of distance, based on the location of the
contact information to capture the lead immediately mobile device.
and keep the load time fast. If the mobile site is
Sources: Samuel Greengard, “Mobility Transforms the Customer
simply a more user-friendly version of the desktop Relationship,” Baseline, February 2012; William Atkinson,
site, the conversions may not be as high. “How Deckers Used a Mobile Application to Build Customer Traffic,”
Ryland Homes, one of the top U.S. new home CIO Insight, November 9, 2011; “Going Mobile: A Portable Approach
to Process Improvement,” Business Agility Insights, June 2012;
builders, has a conventional Web site, but it wanted Google Inc., “Ryland Homes Opens Doors to Local Sales with Mobile
to be able to engage customers using mobile technol- Site for Home-Buyers,” 2011.
C A S E S T U DY Q U E S T I O N S
1. What management, organization, and technology 3. Describe the business processes changed by
issues need to be addressed when building mobile USAA’s mobile applications before and after the
applications? applications were deployed.
2. How does user requirement definition for mobile
applications differ from that in traditional systems
analysis?
564 Part Four Building and Managing Systems
Review Summary
1. How does building new systems produce organizational change?
Building a new information system is a form of planned organizational change. Four kinds of
technology-enabled change are (a) automation, (b) rationalization of procedures, (c) business process
redesign, and (d) paradigm shift, with far-reaching changes carrying the greatest risks and rewards.
Many organizations are using business process management to redesign work flows and business
processes in the hope of achieving dramatic productivity breakthroughs. Business process manage-
ment is also useful for promoting total quality management (TQM), six sigma, and other initiatives for
incremental process improvement.
3. What are the principal methodologies for modeling and designing systems?
The two principal methodologies for modeling and designing information systems are structured
methodologies and object-oriented development. Structured methodologies focus on modeling
processes and data separately. The data flow diagram is the principal tool for structured analysis, and
the structure chart is the principal tool for representing structured software design. Object-oriented
development models a system as a collection of objects that combine processes and data. Object-
oriented modeling is based on the concepts of class and inheritance.
5. What are new approaches for system building in the digital firm era?
Companies are turning to rapid application design (RAD), joint application design (JAD), agile
development, and reusable software components to accelerate the systems development process. RAD
uses object-oriented software, visual programming, prototyping, and fourth-generation tools for very
Chapter 13 Building Information Systems 565
rapid creation of systems. Agile development breaks a large project into a series of small subprojects that are
completed in short periods of time using iteration and continuous feedback. Component-based development
expedites application development by grouping objects into suites of software components that can be
combined to create large-scale business applications. Web services provide a common set of standards that
enable organizations to link their systems regardless of their technology platform through standard plug-and-
play architecture. Mobile application development must pay attention to simplicity, usability, and the need
to optimize tasks for tiny screens.
Key Terms
Acceptance testing, 546 Parallel strategy, 546
Agile development, 559 Phased approach strategy, 547
Automation, 536 Pilot study strategy, 547
Business process management, 537 Post-implementation audit, 547
Business process redesign, 537 Process specifications, 549
Component-based development, 559 Production, 547
Computer-aided software Programming, 545
engineering (CASE), 551 Prototype, 553
Conversion, 546 Prototyping, 553
Customization, 556 Query languages, 555
Data flow diagram (DFD), 548 Rapid application development (RAD), 559
Direct cutover strategy, 546 Rationalization of procedures, 536
Documentation, 547 Request for Proposal (RFP), 556
End-user development, 555 Responsive Web design, 561
End-user interface, 555 Six sigma, 536
Feasibility study, 543 Structure chart, 549
Information requirements, 544 Structured, 547
Iterative, 554 Systems analysis, 541
Joint application design (JAD), 559
Systems design, 544
Maintenance, 547
Systems development, 541
Mobile Web app, 560
Systems life cycle, 552
Mobile Web site, 560
System testing, 546
Native app, 560
Test plan, 546
Object, 550
Testing, 545
Object-oriented development, 550
Total quality management (TQM), 536
Offshore outsourcing, 557
Unit testing, 545
Paradigm shift, 537
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Review Questions
13-1 How does building new systems produce organi- • Distinguish between systems analysis and
zational change? systems design. Describe the activities for
• Describe each of the four kinds of organiza- each.
tional change that can be promoted with • Define information requirements and
information technology. explain why they are difficult to determine
• Define business process redesign and com- correctly.
pare it to other types of organizational • Explain why the testing stage of systems
change. development is so important. Name and
13-2 What are the core activities in the systems describe the three stages of testing for an
development process? information system.
566 Part Four Building and Managing Systems
•
Describe the role of end users in building • Define end-user development and describe
systems and why they are so important. its advantages and disadvantages. Name
13-3 What are the principal methodologies for some policies and procedures for managing
modeling and designing systems? end-user development.
• Compare object-oriented and traditional • Describe the advantages and disadvantages
structured approaches for modeling and of using outsourcing for building informa-
designing systems. tion systems.
13-4 What are alternative methods for building 13-5 What are new approaches for system building
information systems? in the digital firm era?
• Define the traditional systems life cycle. • Define rapid application development
Describe each of its steps and its advantages (RAD) and agile development and explain
and disadvantages for systems building. how they can speed up system-building.
• Define information system prototyping. • Explain how component-based develop-
Describe its benefits and limitations. List ment and Web services help firms build and
and describe the steps in the prototyping enhance their information systems.
process.
• Explain why responsive Web design is
• Define an application software package. important for the development of systems
Explain the advantages and disadvantages of for use on mobile platforms.
developing information systems based on
software packages.
Discussion Questions
13-6 Why is selecting a systems development 13-8 Why is it important to identify the informa-
approach an important business decision? tion requirements of a new system prior to
Who should participate in the selection pro- building the system?
cess?
13-7 Why are web services and service-oriented
computing so important for reducing the
costs of building new systems?
first repair visit, another two weeks to order and receive the required part, and another week to schedule
a second repair visit after the ordered part has been received.
• Diagram the existing process.
• What is the impact of the existing process on Appliancesdirect’s operational efficiency and customer
relationships?
• What changes could be made to make this process more efficient? How could information systems
support these changes? Diagram the new, improved process.
13-10 Management at your agricultural chemicals corporation has been dissatisfied with production planning.
Production plans are created using best guesses of demand for each product, which are based on how
much of each product has been ordered in the past. If a customer places an unexpected order or requests
a change to an existing order after it has been placed, there is no way to adjust production plans. The
company may have to tell customers it can’t fill their orders, or it may run up extra costs maintaining
additional inventory to prevent stock-outs.
At the end of each month, orders are totaled and manually keyed into the company’s production
planning system. Data from the past month’s production and inventory systems are manually entered
into the firm’s order management system. Analysts from the sales department and from the produc-
tion department analyze the data from their respective systems to determine what the sales targets and
production targets should be for the next month. These estimates are usually different. The analysts then
get together at a high-level planning meeting to revise the production and sales targets to take into account
senior management’s goals for market share, revenues, and profits. The outcome of the meeting is a finalized
production master schedule.
The entire production planning process takes 17 business days to complete. Nine of these days are
required to enter and validate the data. The remaining days are spent developing and reconciling the production
and sales targets and finalizing the production master schedule.
• Draw a diagram of the existing production planning process.
• Analyze the problems this process creates for the company.
• How could an enterprise system solve these problems? In what ways could it lower costs? Diagram
what the production planning process might look like if the company implemented enterprise
software.
A c h i e v i n g O p e r a t i o n a l E x c e l l e n c e : A n a l y z i n g We b S i t e D e s i g n a n d
Information Requirements
Software skills: Web browser software
Business skills: Information requirements analysis, Web site design
13-12 Visit the Web site of your choice and explore it thoroughly. Prepare a report analyzing the various
functions provided by that Web site and its information requirements. Your report should answer these
questions: What functions does the Web site perform? What data does it use? What are its inputs, outputs,
and processes? What are some of its other design specifications? Does the Web site link to any internal
systems or systems of other organizations? What value does this Web site provide the firm?
S
ourceGas is a utility headquartered in Golden, assigned workloads that were aligned with business
Colorado providing natural gas service to over objectives.
413,000 customers in Arkansas, Nebraska, SourceGas dispatchers were highly experi-
Colorado, and Wyoming. The company has enced and had the requisite knowledge to assign
over 1,100 employees and operates nearly 18,000 technicians with the appropriate set of skills
miles of natural gas transmission and distribution to perform the work. However, to perform this
pipeline covering a 332,437-square-mile area—about process successfully, dispatchers had to commit
half the size of Alaska. to memory more than 225 different types of work
The number of work orders (authorizing specific that technicians performed in the field. SourceGas
work or repairs to be done) processed per mile wound up spending a great deal of time and effort
traveled is a key performance indicator for utility clarifying its scheduling policies.
companies, especially SourceGas. SourceGas’s SourceGas’s work order process starts with a call
territory includes many large rural areas where from a customer to the SourceGas call center in
re-routing work orders incurs very heavy fuel, Fayetteville, Arkansas. Under the company’s old
maintenance, and other operational costs. The system, the company’s SAP CRM software created a
more work orders that can be processed per mile work order that was sent to the SourceGas dispatch
traveled, the lower the cost. center, where dispatchers assigned the work to
SourceGas’s predecessor had installed a mobile technicians who received the assignments using
information system in 2000 to dispatch approxi- Panasonic Toughbook mobile devices. Although the
mately 500,000 work orders to approximately 500 previous system integrated with SAP CRM software
field technicians equipped with mobile devices. to enable SourceGas to track a work order from start
However, this work order and dispatch system to finish, the work order still had to be initiated
was starting to show its age, and the work order manually by the dispatchers.
and dispatch processes required too much manual What’s more, the outdated system could no
effort. All work was dispatched manually, and there longer be easily modified to keep up with new
were no systematized scheduling priorities, making requirements. SourceGas serves both regulated
it difficult for service technicians to consistently be and non-regulated markets in four states with
Chapter 13 Building Information Systems 569
different business rules, so the system has to be business rules configured in the system, with excep-
able to accomodate rapid and constant change. tions flagged for dispatchers to handle.
Enhancements to the system were just too costly. The entire process of implementing the new
SourceGas needed a new system to auto- system-requirements analysis, development,
mate its work order and scheduling processes testing, and training, took a little over one year.
that could be updated and changed much more SourceGas rolled out the system in phases, with
easily. Management also wanted a system where its last division going live with the system in
SourceGas could make these changes using its own December 2012. In implementing the SAP software
internal resources rather than external consultants, package, SourceGas faced some special challenges
which the company had relied on heavily to make because it had to design the system and configure
enhancements to its old system. The software for the software to account for all the special conditions
the legacy system had been custom-programmed by of its unique service area and complex rules for
third-party vendors, making the system difficult to types of work. Some of the questions that had to be
maintain and enhance. addressed were: Are work order priorities the same
In the summer of 2011, SourceGas initi- in an urban area, such as Fayetteville, Arkansas,
ated a requirements-gathering workshop with as they are in rural Wyoming? What constitutes an
ClickSoftware, the external vendor the company emergency work order?
had used in the past to make system enhancements. The SourceGas system had to be designed to
The objective was to establish system requirements schedule and route all the field technician work
and develop business rules to guide the work order according to these various rules and conditions.
and scheduling processes. SourceGas’s biggest The design also had to make the system as familiar
priorities were to 1) automate work scheduling; 2) and easy to use for SourceGas mobile workers as
maintain the company’s existing timesheet process; possible, with the new mobile app user experience
and 3) ensure minimal change required for field mirroring field workers’ existing user experience
technicians to use the new system. as much as possible. This was especially critical for
For its solution, SourceGas chose SAP Workforce time reporting, which required some simplification
Scheduling & Optimization software package by while adhering nevertheless to company business
ClickSoftware, which integrates with its existing rules for proper accounting.
SAP systems, including SAP ERP and SAP CRM. SourceGas was able to enhance the software
SAP Workforce Scheduling & Optimization by while maintaining the same user experience. To
ClickSoftware is a real-time optimized scheduling improve technician efficiency, the software was
solution for managing scheduling and dispatching, enhanced to tailor service order completion data
supporting mobile service operations, schedul- sent back to SourceGas’s ERP system for each type
ing service appointments, and monitoring service of service order rather than displaying all data fields
operations. The software includes capabilities on all orders. Another important enhancement was
for demand forecasting to determine how much to add audio alerts for dispatchers and technicians’
work is set to arrive, when, and where; deploying mobile devices to the SAP Workforce Scheduling
resources based on knowledge of worker skills, ser- & Optimization software so that emergency orders
vice commitments, location, and customer prefer- receive proper attention. An additional safety
ences; responding in real time to on-the-spot issues feature is the capability for technicians to set a
such as traffic and cancellations; and analyzing timer to alert dispatch if they haven’t returned to
service performance by identifying problem areas their vehicle by a specified time.
and methods for improvement. Software users SourceGas used an iterative approach and agile
are able to meet anticipated workloads in a spe- development methodology and took user input and
cific time frame with better capacity planning and user training very seriously. The system project
resource allocation. SAP Workforce Scheduling & had a committee of super-user technicians as well
Optimization software integrates directly with all as an operations team to make sure the system was
SAP applications. built to the right specifications. Its technicians had
An SAP NetWeaver Process Integration adapter provided important input during the requirements-
automatically handles the messaging between the gathering and design stages of system-building, and
SAP Workforce Scheduling & Optimization and the they began training on the new application in June
SAP CRM system. Work orders are now automati- 2012. SourceGas trained 20 percent of its workforce
cally scheduled and dispatched using the company’s to obtain their feedback about the new system (to
570 Part Four Building and Managing Systems
make sure it met their expectations), and used the for SourceGas to rapidly make changes in-house,
experience to create training materials for when which makes it easier for the company to respond
the system went totally live. This approach helped to rapid changes in the utility industry.
ensure users would buy into the new system and SourceGas will be further enhancing its SAP
that no business process was overlooked. Workforce Scheduling and Optimization software to
The testing process had end users on SourceGas’s focus more directly on serving customers. Potential
operations team perform all of the approximately changes to the system include allowing customers
225 types of service orders handled by the company to place orders online, sending text messages to
using the new application to make sure the system inform customers when technicians are on the way,
was able to handle every single business scenario. and processing payment from customers directly in
For example, to test the process of a technician the field.
closing out a work order for a meter exchange, the Sources: www.sourcegas.com, accessed June 30, 2014;
new system must be able to move data from a final Murphy, Ken “SourceGas Takes the Driver’s Seat in Workforce
reading of the old meter into SourceGas’s SAP ERP Scheduling,” SAP InsiderPROFILES, July 1, 2013; and
“SourceGas Implements SAP Workforce Scheduling &
system, and the system has to perform certain steps
Optimization,” www.youtube.com, May 14, 2014.
before the new meter is recognized and synchro-
nized to a customer account. CASE STUDY QUESTIONS
What benefits have been produced by the new
13-14 Analyze SourceGas’s problems with its old
system? SourceGas’s management has received system. What management, organization,
positive feedback about the new system capabilities and technology factors were responsible for
for automated scheduling, timesheet preparation these problems? What was the business
as well as its improved usability compared to the impact of these problems?
previous system. Managers can more accurately 13-15 What role did end users play in developing
gauge their workload in their divisions. SourceGas SourceGas’s new work order and dispatch
dispatchers can see their workloads more accurately system? How did the project team make sure
and determine the appropriate resources. The users were involved? What would have
company has already used the new system to happened to the project if they had not done
complete 400,000 work orders and pay 900,000 this?
timesheet records. However, management would 13-16 What types of system-building methods and
like to see more manpower study reports before tools did SourceGas use for building its
it can determine the extent of the new system’s system?
operational efficiencies and benefits. 13-17 Discuss the issue of software package
One key benefit that is already apparent, customization at SourceGas.
however, is the company’s ability to keep a lid on 13-18 What other steps did SourceGas take to make
the costs of maintaining and updating the system sure the new system was successful?
because it is doing most of that work with in-house 13-19 What were the benefits of the new system?
staff rather than turning to external vendors, as it How did it change the way SourceGas ran its
had in the past. The SAP Workforce Scheduling and business? How successful was this system
Optimization software package has made it possible solution?
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