PARTⅣ:BuildingandManagingInformationSystems

Chapter10:RedesigningtheorganizationwithIS（教材第十四章）

Chapter11:UnderstandingtheBusinessValueofSystemsandManagingChange（教材第十五章）LearningObjectives:EvaluatemodelsforunderstandingthebusinessvalueofinformationsystemsAnalyzetheprincipalcausesofinformationsystemfailureAssessthechangemanagementrequirementsforbuildingsuccessfulsystemsLearningObjectives:SelectappropriatestrategiestomanagethesystemimplementationprocessIdentifythechallengesposedbyimplementingnewsystemsandmanagementsolutionsChapter11

UnderstandingtheBusinessValueofSystemsandManagingChangeUnderstandingtheBusinessValueofInformationSystemsTheImportanceofChangeManagementinInformationSystemsSuccessandFailureManagingImplementationManagementOpportunities,Challenges,andSolutionsTwokindsofISinvestments(P536)Projectswith12-24monthobjectivesLongerperiodsinfrastructureinvestmentsImprovementinbusinessprocessestoincreasefirmefficiencyImprovementsinmanagementdecisionmakingTwowaysforproducingvalue(P536)AdditionalISvaluefrom(P536-537)Strengtheningfirmstrategically(tiestopartners,customers,increasingflexibility,etc.)EnablingfutureimplementationofnewtechnologiesIS/ITInvestmentSMEC(ShangHaiMitsubishiElevatorCompany)-上海三菱電梯BegantoinvestonIT/ISin1994Havespentabout100millionRMBonIT/ISQuestion:Howtoevaluatelong-termcapitalinvestmentprojects?TraditionalCapitalBudgetModelsStrategicConsiderationsInformationTechnologyInvestmentsandProductivityUnderstandingbusinessvalueofinformationsystemsTraditionalCapitalBudgetingModels(P537)CapitalBudgeting:

ProcessofanalyzingandselectingvariousproposalsforcapitalexpendituresCapitalexpenditures:ExpandproductiontomeetanticipateddemandModernizeproductionequipmenttoreducecostsCanbenoneconomic,e.g.installingpollutioncontrolequipmentSixcapitalbudgetingmodels:(P537)Thepaybackmethod--回收期Theaccountingrateofreturnoninvestment--投資報酬率Thenetpresentvalue--凈現(xiàn)值Thecost-benefitratio--成本收益率Theprofitabilityindex--現(xiàn)值指數(shù)Theinternalrateofreturn(IRR)--內部收益率Question:Howtoestimatebenefitsandthecosts?Canyoulistsomeofthemorecommoncostsandbenefitsofsystems?Cost:HardwareTelecommunicationsSoftwareServicesPersonnelCosts&Benefits(P538Table15-1)Tangiblebenefit:IncreasedproductivityLowoperationalcostsReducedworkforceLowercomputerexpensesLowervendorcostsLowerclerical/professionalcostsReducedrateofgrowthinexpensesReducedfacilitycostsCosts&Benefits(P538Table15-1)Intangiblebenefit:ImprovedassetutilizationImprovedresourcecontrolImprovedorganizationalplanningIncreasedorganizationalflexibilityMoretimelyinformationMoreinformationIncreasedorganizationallearningLegalrequirementsattainedEnhancedemployeegoodwill,jobsatisfaction,decisionmaking,operationsHigherclientsatisfactionBettercorporateimageCosts&Benefits(P538Table15-1)LimitationsofFinancialModels(P538)DonotexpresstherisksanduncertaintyoftheirowncostsandbenefitsestimatesCostsandbenefitsdonotoccurinthesametimeframe.Inflationmayaffectcostsandbenefitsdifferently.Intangiblebenefitsaredifficulttoquantify.TraditionalCapitalBudgetModelsStrategicConsiderationsInformationTechnologyInvestmentsandProductivityUnderstandingbusinessvalueofinformationsystemsPortfolioanalysisScoringmodesRealoptionspricingmodelsKnowledgevalue-addedapproachStrategicConsiderations

(P543-546)PortfolioAnalysis(P543)SeekstodevelopAnoverallunderstandingofwherethefirmismakinginformationtechnologyinvestmentsBasedoninventoryofallinformationsystemsprojectsandassets,includinginfrastructure,outsourcingcontracts,andlicensesAssignsriskandbenefitprofilestoISinvestmentsASystemPortfolio:

(P543,Figure15-3)ProjectriskHighLowHighLowPotentialbenefitstofirmCautiouslyexamineIdentifyanddevelopAvoidRoutineprojectsScoringmodel:(P544)AquickandsometimescompellingmethodforarrivingatadecisiononalternativesystemsThemostimportantoutcomeofascoringmodelisnotthescorebutagreementonthecriteriausedtojudgeasystem.Bestpracticeistocyclethroughthescoringmodelseveraltimes,changingthecriteriaandweights,toseehowsensitivetheoutcomeistoreasonablechangesincriteria.RealOptionsPricingModels(ROPM):(P545)UsesthefinancialindustryconceptofoptionsvaluationAnoptionistheright,butnotobligation,toactatafuturedate.AninitialexpenditureonIStechnologycreatestheright,butnottheobligation,toobtainthebenefitsassociatedwithfurtherdevelopmentanddeploymentofthetechnology.RealOptionsPricingModels(ROPM):(Continued)(P545)Capitalinvestmentscannotbetradedonamarketanddifferinvaluebasedonthefirm.Dependsonfactors,suchaspriorexpertise,skilledlaborforce,marketconditions,andotherfactorsValueofITproject(realoption)isafunctionofthefollowing:(P546)ValueofunderlyingITasset(presentvalueofexpectedrevenues)VolatilityofvalueofassetCostofconvertingtheoptioninvestmentintotheunderlyingasset(exerciseprice)Risk-freeinterestrateOptiontimetomaturity(lengthofprojectdeferment)KnowledgeValue-AddedApproach:(P546)AnyprogramthatusesinformationtechnologytochangebusinessprocessesrequiresknowledgeinputThevalueoftheknowledgeusedtoproduceimprovedoutputsofthenewprocesscanbeusedasameasureofthevalueaddedKnowledgeinputscanbemeasuredintermsoflearningtimetomasteranewprocess,andareturnonknowledgecanbeestimatedTraditionalCapitalBudgetModelsStrategicConsiderationsInformationTechnologyInvestmentsandProductivityUnderstandingbusinessvalueofinformationsystemsInformationTechnologyInvestmentsandProductivity(P546-547)

Productivityisameasureofthefirm’sefficiencyinconvertinginputstooutputs.Itreferstotheamountofcapitalandlaborrequiredtoproduceaunitofoutput.Informationtechnologyhasincreasedproductivityinmanufacturing,butproductivitygainsinservicesectorareunclear.InformationTechnologyInvestmentsandProductivity(Continued)(546-547)

ContributionofITtoproductivityininformationandknowledgeindustriesisdifficulttoquantify.Informationtechnologyinvestmentsaremorelikelytoimprovefirmperformanceifaccompaniedbycomplementaryinvestmentsinnewbusinessprocesses,organizationalstructures,andorganizationallearning.Chapter11

UnderstandingtheBusinessValueofSystemsandManagingChangeUnderstandingtheBusinessValueofInformationSystemsTheImportanceofChangeManagementinInformationSystemsSuccessandFailureManagingImplementationManagementOpportunities,Challenges,andSolutionsInformationSystemProblemAreasChangeManagementandtheConceptofImplementationCausesofImplementationSuccessandFailureTheImportanceofChangeManagementinInformationSystemsSuccessandFailureInformationSystemProblemareas:(P548,Figure15-4)DesignInformationSystemCostOperationsDataInformationSystemProblemAreasChangeManagementandtheConceptofImplementationCausesofImplementationSuccessandFailureTheImportanceofChangeManagementinInformationSystemsSuccessandFailureChangeManagementandtheConceptofImplementation(P551)

Implementation:

Allorganizationalactivitiesworkingtowardtheadoption,management,androutinizationofaninnovation,suchasanewinformationsystem.InformationSystemProblemAreasChangeManagementandtheConceptofImplementationCausesofImplementationSuccessandFailureTheImportanceofChangeManagementinInformationSystemsSuccessandFailureCausesofImplementationSuccessandFailure(P552)Figure15-5CausesofImplementationSuccessandFailure(P551)Theroleofusersintheimplementationprocess*Thedegreeofmanagementsupportforandcommitmenttotheimplementationeffort*Thelevelofcomplexityandriskoftheimplementationproject*Thequalityofmanagementoftheimplementationprocess*UserInvolvementandInfluence(P551)Ifusersareheavilyinvolvedinsystemsdesign,theyhavemoreopportunitiestomoldthesystemaccordingtotheirprioritiesandbusinessrequirementsandcontroltheoutcome.Involvedusersaremorelikelytoreactpositivelytothecompletedsystem.ManagementSupportandCommitment(P553)CommitmentofmanagementtoAninformationsystemsprojectusuallyresultsinamorepositiveperceptionandacceptancebyusersandthetechnicalservicesstaff.ManagementbackingalsoensuresthatasystemsprojectreceivessufficientfundingandresourcestobesuccessfulAllthechangesinworkhabitsandproceduresandanyorganizationalrealignmentassociatedwithanewsystemdependonmanagementbackingLevelofComplexityandRisk(P553)

Thelevelofprojectriskisinfluencedby:ProjectsizeProjectstructureLeveloftechnicalexpertiseoftheinformationsystemsteamManagementoftheImplementationProcess(P555)ConsequencesofPoorProjectManagementCostoverruns:CostriskTimeslippage:ScheduleriskTechnicalshortfallsimpairingperformance:TechnologyriskFailuretoobtainanticipatedbenefits:OperationriskPossiblereasonsforpoormanagement(P555)

IgnoranceandoptimismMythicalman-monthFallingbehind:BadnewstravelsslowlyupwardChapter11

UnderstandingtheBusinessValueofSystemsandManagingChangeUnderstandingtheBusinessValueofInformationSystemsTheImportanceofChangeManagementinInformationSystemsSuccessandFailureManagingImplementationManagementOpportunities,Challenges,andSolutionsManagingImplimentation(P557-560)

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