南京中医药大学管理信息系统(16)课件

15Chapter

UnderstandingtheBusinessValueofSystemsandManagingChange

15ChapterUnderstandingtheBuEvaluatemodelsforunderstandingthebusinessvalueofinformationsystemsAnalyzetheprincipalcausesofinformationsystemfailureAssessthechangemanagementrequirementsforbuildingsuccessfulsystemsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeOBJECTIVESEvaluatemodelsforunderstandSelectappropriatestrategiestomanagethesystemimplementationprocessIdentifythechallengesposedbyimplementingnewsystemsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeSelectappropriatestrategiesChallenge:Changetheorganizationandbusinessprocessesatoneoftheworld’slargestretailbankingfirmsinordertosupportV-BankingsystemsSolutions:developnewbusinessprocesses,retrainworkforce,developacustomer-centriccultureTraincustomersintheuseofnewdigitalbankingservicesIllustratestheimportanceofchangingtheorganizationandcultureinabusinesstosupporttechnologychangeManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeHSBCMalaysiaCaseChallenge:ChangetheorganizaUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSProjectswith12-24monthobjectivesLongerperiodsinfrastructureinvestmentsTwokindsofISinvestments:ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeImprovementinbusinessprocessestoincreasefirmefficiencyImprovementsinmanagementdecisionmakingTwowaysforproducingvalue:UNDERSTANDINGTHEBUSINESSVALManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSStrengtheningfirmstrategically(tiestopartners,customers,increasingflexibility,etc.)EnablingfutureimplementationofnewtechnologiesAdditionalISvaluefrom:ManagementInformationSystemsUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSCapitalBudgeting:ProcessofanalyzingandselectingvariousproposalsforcapitalexpendituresTraditionalCapitalBudgetingModelsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeCapitalexpenditures:ExpandproductiontomeetanticipateddemandModernizeproductionequipmenttoreducecostsCanbenoneconomic,e.g.installingpollutioncontrolequipmentUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSThepaybackmethodTheaccountingrateofreturnoninvestment(ROI)ThenetpresentvalueThecost-benefitratioTheprofitabilityindexTheinternalrateofreturn(IRR)Sixcapitalbudgetingmodelsforevaluatingcapitalprojects:ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSDonotexpresstherisksanduncertaintyoftheirowncostsandbenefitsestimatesCostsandbenefitsdonotoccurinthesametimeframe.Inflationmayaffectcostsandbenefitsdifferently.Intangiblebenefitsaredifficulttoquantify.LimitationsofFinancialModelsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSHeartlandStores:CaseExample:CapitalBudgetingforaNewSupplyChainManagementSystemManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeGeneralmerchandiseretailchainineightMidwesternstatesFiveregionaldistributioncenters,377stores,andabout14,000differentproductsineachstoreUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSNewsoftwareandhardwaretoupgradeitssupplychainmanagementsystemReduceinventoryandinventorycostsReducelaborcostsReducetelecommunicationscostsReducetransportationcostsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeInvestmentstrategyandgoals:UNDERSTANDINGTHEBUSINESSVALCostsandBenefitsoftheNewSCMSystemManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSFigure15-1CostsandBenefitsoftheNewFinancialModelsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSFigure15-2FinancialModelsManagementInUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSPaybackmethod:MeasuresthetimerequiredtopaybacktheinitialinvestmentofaprojectThePaybackMethodManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeOriginalInvestmentAnnualnetcashinflow=NumberofyearstopaybackHeartlandStores:Morethan2yearstopaybackinitialinvestmentUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSCalculatesrateofreturnbyadjustingthecashinflowsproducedbytheinvestmentfordepreciationManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeCalculatenetbenefit(Totalbenefits-Totalcost-Depreciation)Usefullife=NetbenefitAccountingRateofReturnonInvestment(ROI):UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMS2.CalculateROIbydividingnetbenefitbythetotalinitialinvestmentManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeNetbenefitTotalinitialinvestment=ROIHeartlandStoresROI:2.93%UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSPresentvalue:Thevalueincurrentdollarsofapaymentorstreamofpaymentstobereceivedinthefuture

Itcanbecalculatedbyusingthefollowingformula:NetPresentValueManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChange1-(1+interest)-nInterest=PaymentxPresentvalueUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSNetpresentvalue:Amountofmoneyaninvestmentisworth,takingintoaccountitscost,earnings,andthetimevalueofmoneyManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChange Presentvalueofexpectedcashflows-Initialinvestmentcost=NetpresentvalueCalculatepresentvalueofstreamofbenefits:1-(1+Interest)-nInterest=PaymentxPresentvalue2.Calculatenetpresentvalue:UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSHeartlandStorespresentvalue=$21,625,709Investmentcost=$11,467,350NetPresentvalue=$10,158,359ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSCost-BenefitRatio:ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTotalbenefitsTotalcosts=Cost-benefitratioProfitabilityIndex:Can

beusedtocomparetheprofitabilityofalternativeinvestments

PresentvalueofcashinflowsInvestment=ProfitabilityindexHeartlandStoresProfitabilityIndex:1.89

HeartlandStoresCost-BenefitRatio:1.71UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSRateofreturnorprofitthataninvestmentisexpectedtoearn,takingintoaccountthetimevalueofmoneyThediscount(interest)ratethatwillequatethepresentvalueoftheproject’sfuturecashflowstotheinitialcostoftheprojectValueofR(discountrate)issuchthatPresentvalue–Initialcost=0InternalRateofReturn(IRR):ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeHeartlandStoresIRR:33%

UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSAnoverallunderstandingofwherethefirmismakinginformationtechnologyinvestmentsBasedoninventoryofallinformationsystemsprojectsandassets,includinginfrastructure,outsourcingcontracts,andlicensesAssignsriskandbenefitprofilestoISinvestmentsStrategicConsiderationsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangePortfolioAnalysis:SeekstodevelopUNDERSTANDINGTHEBUSINESSVALASystemPortfolioManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSFigure15-3ASystemPortfolioManagementUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSAquickandsometimescompellingmethodforarrivingatadecisiononalternativesystemsThemostimportantoutcomeofascoringmodelisnotthescorebutagreementonthecriteriausedtojudgeasystem.Bestpracticeistocyclethroughthescoringmodelseveraltimes,changingthecriteriaandweights,toseehowsensitivetheoutcomeistoreasonablechangesincriteria.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeScoringModels:UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSUsesthefinancialindustryconceptofoptionsvaluationAnoptionistheright,butnotobligation,toactatafuturedate.AninitialexpenditureonIStechnologycreatestheright,butnottheobligation,toobtainthebenefitsassociatedwithfurtherdevelopmentanddeploymentofthetechnology.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeRealOptionsPricingModels(ROPM):UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSCapitalinvestmentscannotbetradedonamarketanddifferinvaluebasedonthefirm.Factors,suchaspriorexpertise,skilledlaborforce,marketconditions,andotherfactorsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeRealOptionsPricingModels(ROPM):(Continued)UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeValueofITproject(realoption)isafunctionofthefollowing:ValueofunderlyingITasset(presentvalueofexpectedrevenues)Volatilityofvalueofasset(exerciseprice)Risk-freeinterestrateOptiontimetomaturity(lengthofprojectdeferment)UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSAnyprogramthatusesinformationtechnologytochangebusinessprocessesrequiresknowledgeinputThevalueoftheknowledgeusedtoproduceimprovedoutputsofthenewprocesscanbeusedasameasureofthevalueaddedKnowledgeinputscanbemeasuredintermsoflearningtimetomasteranewprocess,andareturnonknowledgecanbeestimatedManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeKnowledgeValue-AddedApproach:UNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSProductivityisameasureofthefirm’sefficiencyinconvertinginputstooutputs.Itreferstotheamountofcapitalandlaborrequiredtoproduceaunitofoutput.Informationtechnologyhasincreasedproductivityinmanufacturing,butproductivitygainsinservicesectorareunclear.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeInformationTechnologyInvestmentsandProductivityUNDERSTANDINGTHEBUSINESSVALUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSContributionofITtoproductivityininformationandknowledgeindustriesisdifficulttoquantify.Informationtechnologyinvestmentsaremorelikelytoimprovefirmperformanceifaccompaniedbycomplementaryinvestmentsinnewbusinessprocesses,organizationalstructures,andorganizationallearning.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeInformationTechnologyInvestmentsandProductivity(Continued)UNDERSTANDINGTHEBUSINESSVALInformationSystemsProblemAreasManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Figure15-4InformationSystemsProblemArSystemdesignmayfailtocaptureessentialbusinessrequirementsorimproveorganizationalperformance.Informationmaynotbetimely:Informationmaybeinaformatthatisdifficulttounderstandorhaveapooruserinterface.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeDesign:THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

SystemdesignmayfailtocaptThedatainthesystemmayhaveahighlevelofinaccuracyorinconsistency,maybeinaccessibleorincomplete.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeData:THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Somesystemsoperatequitesmoothly,buttheircoststoimplementandrunonaproductionbasismaybewayoverbudget.Cost:ThedatainthesystemmayhavManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeThesystemdoesnotrunwellorbreaksdownandinformationisnotprovidedinatimelyandefficientmanner.Systemresponsetimeistoolong.Operationsproblemscanbeattributedtotechnicalfeatures,butmoststemfromorganizationalfactors.Operations:THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

ManagementInformationSystemsImplementation:Allorganizationalactivitiesworkingtowardtheadoption,management,androutinizationofanewsystemchangeagentManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeChangeManagementandtheConceptofImplementationTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Implementation:AllorganizatiThesystemsanalystwhodevelopstechnicalsolutionsandredefinestheconfigurations,interactions,jobactivities,andpowerrelationshipsofvariousorganizationalgroups

ActsascatalystfortheentirechangeprocessandisresponsibleforensuringthatallpartiesinvolvedacceptthechangescreatedbyanewsystemManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

ChangeManagementandtheConceptofImplementation(Continued)ThesystemsanalystwhodeveloInformationSystemsSuccessorFailureFactorsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Figure15-5CausesofImplementationSuccessandFailureInformationSystemsSuccessorIfusersareheavilyinvolvedinsystemsdesign,theyhavemoreopportunitiestomoldthesystemaccordingtotheirprioritiesandbusinessrequirementsandcontroltheoutcome.Involvedusersaremorelikelytoreactpositivelytothecompletedsystem.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUserInvolvementandInfluence:THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

IfusersareheavilyinvolvedUserscanhavelimitedunderstandingofotherissuesandsolutions.ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

User-DesignerCommunicationsGap:ManagementSupportandCommitment:CommitmentofmanagementtoAninformationsystemsprojectusuallyresultsinamorepositiveperceptionandacceptancebyusersandthetechnicalservicesstaff.UserscanhavelimitedunderstManagementbackingalsoensuresthatasystemsprojectreceivessufficientfundingandresourcestobesuccessfulAllthechangesinworkhabitsandproceduresandanyorganizationalrealignmentassociatedwithanewsystemdependonmanagementbackingManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

ManagementSupportandCommitment:(Continued)ManagementbackingalsoensureManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Thelevelofprojectriskisinfluencedby:LevelofComplexityandRisk:ProjectsizeProjectstructureLeveloftechnicalexpertiseoftheinformationsystemsteamManagementInformationSystemsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeManagementoftheImplementationProcessTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Figure15-6ConsequencesofPoorProjectManagementManagementInformationSystemsCoststhatvastlyexceedbudgetsUnexpectedtimeslippageTechnicalshortfallsresultinginperformancethatissignificantlybelowtheestimatedlevelManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeLikelyConsequencesofPoorProjectManagement:THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

CoststhatvastlyexceedbudgeFailuretoobtainanticipatedbenefitsPossiblereasonsforpoormanagement:ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

IgnoranceandoptimismMythicalman-monthFallingbehind:BadnewstravelsslowlyupwardLikelyConsequencesofPoorProjectManagement:FailuretoobtainanticipatedManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeChangeManagementChallengesforBusinessProcessReengineering,EnterpriseApplications,andMergersandAcquisitionsTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Successfulimplementationincludesaddressingemployees’concernsaboutchangeResistancebykeymanagersChangingjobfunctions,careerpaths,recruitmentpracticesManagingtrainingManagementInformationSystemsGainmarketshareandexpertiseveryquicklyCriticalissuesincludetheorganizationalcharacteristicsofthemergingcompaniesandITinfrastructuresManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeSystemImplicationsofMergersandAcquisitions(M&As):THEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

Asaremajorgrowthenginesforbusinesses,enablingfirmstoGainmarketshareandexpertisRealisticcostsofintegrationEstimatedbenefitsofeconomiesinoperation,scope,knowledge,andtimeProblematicsystemsthatrequiremajorinvestmentstointegrateMorethan70percentofallM&AsresultinadeclineinshareholdervalueManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeTHEIMPORTANCEOFCHANGEMANAGEMENTININFORMATIONSYSTEMSSUCCESSANDFAILURE

SystemImplementationofMergersandAcquisitions(M&As):(Continued)RealisticcostsofintegrationManagingtechnicalcomplexity:FormalplanningandcontroltoolsIncreasinguserinvolvementandovercominguserresistanceManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeControllingRiskFactorsMANAGINGIMPLEMENTATION

Managingtechnicalcomplexity:Externalintegrationtools:WaystolinktheworkoftheimplementationteamtousersatallorganizationallevelsCounterimplementation:DeliberatestrategytothwarttheimplementationofaninformationsystemoraninnovationinanorganizationManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeMANAGINGIMPLEMENTATION

Managingtechnicalcomplexity:(Continued)Externalintegrationtools:WaManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeFormalPlanningandControlToolsHelptoManageInformationSystemsProjectsSuccessfullyFigure15-7MANAGINGIMPLEMENTATION

ManagementInformationSystemsSystemsdevelopmentmustaddresshowtheorganizationwillchangewhenthenewsystemisinstalled,includinginstallationofintranets,extranets,andWebapplicationsOrganizationalimpactanalysisManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeDesigningfortheOrganizationMANAGINGIMPLEMENTATION

Systemsdevelopmentmustaddre AllowingforthehumanfactorManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeUserperformancestandardsErgonomicsMANAGINGIMPLEMENTATION

DesigningfortheOrganization:(Continued) AllowingforthehumanfactorExploresworkgrouporganizationandimpactsfromtechnicalsolutionsBlendstechnicalefficiencywithsensitivitytohumanandorganizationalneedsRaisesproductivitywithoutsacrificinghumanandsocialgoalsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeSociotechnicalDesign:MANAGINGIMPLEMENTATION

ExploresworkgrouporganizatioManagethechangeprocessandAccuratelycalculatethecostsandbenefitsoftheinvestmentsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeManagementOpportunities:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSNewinformationsystemscanproduceextraordinarilyhighreturnsifsystembuilderscanManagethechangeprocessandDeterminingsystembenefitsandcostswhentheyaredifficulttoquantifyDealingwiththecomplexityoflarge-scalesystemsprojectsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeManagementChallenges:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSDeterminingsystembenefitsanFulldocumentationofthefirm’sapplicationsandITinfrastructureandperiodicreviewsofthefirm’sITportfolioUseofappropriatemetricsformonitoringprojectoutcomesManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeSolutionGuidelines:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSObtainingmorevaluefrominformationtechnologyinvestments:

FulldocumentationofthefirmEnsureISinvestmentsarecloselylinkedtobusinessobjectives.Clearidentificationofprojectrisksandreturns,withrealoptionsanalysisMeasurebusinessvaluethroughoutthedurationofnewsystemprojectsandweedoutunderperformingprojectsifnecessaryManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeMANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSSolutionGuidelines:(Continued)EnsureISinvestmentsareclosAssuminganenterprise-widefocus,drivenbythefirm’sstrategicbusinessvisionandtechnologyarchitectureSolvingproblemsandmeetingchallengesastheyariseratherthansimplymeetingformalprojectmilestonesEmphasizelearningaswellasplanning,seekingwaystoadapttounforeseenuncertaintiesandchaosthat,ifproperlyhandled,couldprovideadditionalopportunitiesandbenefitsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeNewapproachestoprojectmanagement:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSSolutionGuidelines:(Continued)Assuminganenterprise-widefo15Chapter

UnderstandingtheBusinessValueofSystemsandManagingChange

15ChapterUnderstandingtheBuEvaluatemodelsforunderstandingthebusinessvalueofinformationsystemsAnalyzetheprincipalcausesofinformationsystemfailureAssessthechangemanagementrequirementsforbuildingsuccessfulsystemsManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeOBJECTIVESEvaluatemodelsforunderstandSelectappropriatestrategiestomanagethesystemimplementationprocessIdentifythechallengesposedbyimplementingnewsystemsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeSelectappropriatestrategiesChallenge:Changetheorganizationandbusinessprocessesatoneoftheworld’slargestretailbankingfirmsinordertosupportV-BankingsystemsSolutions:developnewbusinessprocesses,retrainworkforce,developacustomer-centriccultureTraincustomersintheuseofnewdigitalbankingservicesIllustratestheimportanceofchangingtheorganizationandcultureinabusinesstosupporttechnologychangeManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeHSBCMalaysiaCaseChallenge:ChangetheorganizaUNDERSTANDINGTHEBUSINESSVALUEOFINFORMATIONSYSTEMSProjectswith12-24monthobjectivesLongerperiodsinfrastructureinvestmentsTwokindsofISinvestments:ManagementInformationSystemsChapter15UnderstandingtheBusinessValueofSystemsandManagingChangeImprovementinbusinessprocessestoincreasefirmefficiencyImprovementsinmanagementdecisionmakingTwoways