20.13 Managers at some companies face an ongoing systems development crisis: IS departments
develop systems that businesses cannot or will not use. At the heart of the problem is a
“great divide” that separates the world of business and the world of IS. Few departments
seem able or ready to cross this gap.
One reason for the crisis is that many companies are looking for ways to improve existing,
out-of-date systems or to build new ones. Another is the widespread use of PC-based
systems that have spawned high user expectations that IS departments are not meeting.
Users seek more powerful applications than are available on many older systems.
The costs of the great divide can be devastating. An East Coast chemical company spent
over $1 million on a budgeting and control system that was never used. The systems
department’s expertise was technical excellence, not budgets. As a result, the new system
completely missed the mark when it came to meeting business needs. A Midwestern bank
used an expensive computer-aided software engineering (CASE) tool to develop a system
that users ignored because there had been no design planning. A senior analyst for the bank
said, “They built the system right; but unfortunately they didn’t build the right system.”
a. What is the great divide in the systems development process? What causes the gap?
The “great divide” is the gap between the information needs of business managers and the
information produced by IS. The great divide occurs because of the following:
Many systems are seriously outdated and do not produce the needed information.
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b. What would you suggest to solve this great divide information crisis?
A first step in effective systems design is a thorough business analysis to understand how
Businesses could hire managers with a systems background so they can be a liaison
More involvement and interaction between the systems staff and end users. End users
A more integrated approach to systems development involving all the necessary parties:
Management should provide employees with the training needed to make the system
c. Discuss the role a systems designer, business manager, and end user can take to narrow
the great divide.
Systems designers can involve end users and managers in the design and development
Business managers can support the design team’s efforts to encourage end-user involvement
The end user can help bridge the great divide by taking a cooperative, interactive role in the
d. Who plays the most vital role in the effective development of the system?
All players play important roles in the systems development process. The “information crisis”
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20.14 Joanne Grey, a senior consultant, and David Young, a junior consultant, are conducting a
systems analysis for a client to determine the feasibility of integrating and automating
clerical functions. Joanne had previously worked for the client, but David was a recent hire.
The first morning on the job, Joanne directed David to interview a departmental supervisor
and learn as much as possible about department operations. David introduced himself and
said, “Your company has hired us to study how your department works so we can make
recommendations on how to improve its efficiency and lower its cost. I would like to
interview you to determine what goes on in your department.”
David questioned the supervisor for 30 minutes but found him to be uncooperative. David
gave Joanne an oral report on how the interview went and what he learned about the
department.
Describe several flaws in David’s approach to obtaining information. How should this task
have been performed?
Ms. Grey did not give Mr. Young adequate instructions about how to conduct the interview
Mr. Young provided an oral report rather than a written report of his findings. An interviewer
Mr. Young’s opening statements to the supervisor were negative in tone. He should attempt to
Mr. Young should have asked the supervisor to explain how the department works. Most of
the talking should have been done by the supervisor while Mr. Young listened and took notes.
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20-15 Select the correct answer or each of the following multiple choice questions. (Correct
answers are bolded.
1. In which SDLC step does the company translate broad, user-oriented systems
requirements into the detailed specifications used to create a fully developed system?
a. Systems Analysis
b. Conceptual Design
c. Physical Design
d. Implementation and Conversion
e. Operations and Maintenance
2. Who in the organization is responsible for planning individual system development
projects and monitoring the project to ensure timely and cost-effective completion?
a. Management
b. Users
c. Information Systems Steering Committee
d. Project Development Team
e. Systems analysts
3. There are several different types of feasibility analysis. The analysis that seeks to answer
the question “Does the system comply with all applicable federal and state laws,
administrative agency regulations, and contractual obligations?” is called:
a. Economic feasibility
b. Technical feasibility
c. Legal feasibility
d. Scheduling feasibility
e. Operational feasibility
4. When a new or improved systems is needed, the following document describes the
problem, explains the need for a change, lists the proposed system’s objectives, and
explains its anticipated benefits and costs
a. Request for systems development
b. Request for initial investigation
c. Request for systems analysis
d. Request for feasibility analysis
5. A systems survey is an extensive study of the current AIS that has a number of objectives.
Which of the following is not one of those objective?
a. Gain an understanding of company operations, policies, and procedures
b. Make preliminary assessments of current and future processing needs
c. Develop working relationships with users, and build support for the AIS.
d. Collect data that identify user needs and conduct a feasibility analysis
e. Develop a blueprint for detailed systems design that can be given to
management
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6. At the end of the systems analysis process, systems developers need to do all of the
following except:
a. Create and document detailed system requirements that explain exactly what the
system will produce
b. Prepare a detailed and technical document of all user requirements for top
management.
c. Explain the requirements to users, obtain their approval, and have user
management signs system requirements documents to indicate their approval.
d. Prepare a systems analysis report to summarize and document all analysis
activities
7. In which SDLC step do all the elements and activities of the system come together to
form a completed operational system?
a. Systems Analysis
b. Conceptual Design
c. Physical Design
d. Implementation and Conversion
e. Operations and Maintenance
8. Who in the organization is responsible for planning and overseeing the information
systems function?
a. Management
b. Users
c. Information Systems Steering Committee
d. Project Development Team
e. Systems analysts
9. There are several different types of feasibility analysis. The analysis that seeks to answer
the question “Can the system be developed and implemented using existing technology?”
is called:
a. Economic feasibility
b. Technical feasibility
c. Legal feasibility
d. Scheduling feasibility
e. Operational feasibility
10. With respect to an initial investigation, which of the following statements is false?
a. A project’s scope is a description of what a development project should and
should not accomplish.
b. A new AIS is useful when the identified problem is a result of the lack of
information or inefficient data processing
c. A new AIS is often the answer to organizational problems as if provides
needed structures and processes
d. The initial investigation should determine a project’s viability and recommend it
be initiated as proposed, modified, or abandoned
e. Approved projects should be assigned a priority and added to the organization’s
master plan
11. Which of the following statements is false?
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a. When data gathering is complete, the current system’s strengths and weaknesses
are evaluated to generate ideas for how to design and structure the new system.
b. A feasibility analysis is updated regularly as a project proceeds and costs and
benefits become clearer.
c. When a project is deemed feasible, user needs are identified and system
requirements are documented.
d. Determining information needs is a relatively easy task as most employees
can adequately explain their information needs
12. Which approach to gathering data about an organization’s existing information system
can help verify how a system operates?
a. Interviews
b. Questionnaires
c. Observation
d. Systems Documentation
13. Which of the following strategies for determining system requirements is least likely to
be successful?
a. Examine existing systems to find what is working well in the current system
b. Analyze external systems so you do not have to “reinvent the wheel”
c. Ask management what information their employees need
d. Create a prototype so users can identify what they like and dislike about the
system
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SUGGESTED ANSWERS TO THE CASES
20-1 Audio Visual Corporation (AVC) manufactures and sells visual display equipment.
Headquartered in Boston, it has seven sales offices with nearby warehouses that carry its
inventory of new equipment and replacement parts. AVC has a departmentalized
manufacturing plant with assembly, maintenance, engineering, scheduling, and cost
accounting departments as well as several component parts departments.
When management decided to upgrade its AIS, they installed a mainframe at headquarters
and local area networks at each sales office. The IS manager and four systems analysts were
hired shortly before they integrated the new computer and the existing AIS. The other IS
employees have been with the company for years.
During its early years, AVC had a centralized decision-making organization. Top management
formulated all plans and directed all operations. As the company expanded, decision making
was decentralized, although data processing was highly centralized. Departments coordinated
their plans with the corporate office but had the freedom to develop their own sales programs.
However, information problems developed, and the IS department was asked to improve the
company’s information processing system once the new equipment was installed.
Before acquiring the new computer, the systems analysts studied the existing AIS, identified
its weaknesses, and designed applications to solve them. In the 18 months since the new
equipment was acquired, the following applications were redesigned or developed: payroll,
production scheduling, financial statement preparation, customer billing, raw materials
usage, and finished goods inventory. The departments affected by the changes were rarely
consulted until the system was operational.
Recently the president stated, “The systems people are doing a good job, and I have complete
confidence in their work. I talk to them frequently, and they have encountered no difficulties
in doing their work. We paid a lot of money for the new equipment, and the systems people
certainly cost enough, but the new equipment and new IS staff should solve all our problems.”
Two additional conversations regarding the new AIS took place.
BILL TAYLOR, IS MANAGER AND JERRY ADAMS, PLANT MANAGER
JERRY: Bill, you’re trying to run my plant for me. I’m the manager, and you keep
interfering. I wish you would mind your own business.
BILL: You’ve got a job to do, and so do I. As we analyzed theinformation needed for
production scheduling and by top management, we saw where we could improve the
workflow. Now that the system is operational, you can’t reroute work and change procedures,
because that would destroy the value of the information we’re processing. And while I’m on
that subject, we can’t trust the information we’re getting from production. The documents we
receive from production contain a lot of errors.
JERRY: I’m responsible for the efficient operation of production. I’m the best judge of
production efficiency. The system you installed reduced my workforce and increased the
workload of the remaining employees, but it hasn’t improved anything. In fact, it might
explain the high error rate in the documents.
BILL: This new computer cost a lot of money, and I’m trying to make sure the company gets
its money’s worth.
JERRY ADAMS, PLANT MANAGER AND TERRY WILLIAMS, HUMAN RESOURCES
MANAGER
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JERRY: My best production assistant, the one I’m grooming to be a supervisor, told me he
was thinking of quitting. When I asked why, he said he didn’t enjoy the work anymore. He’s
not the only one who is unhappy. The supervisors and department heads no longer have a
voice in establishing production schedules. This new computer system took away the
contribution we made to company planning and direction. We’re going back to when top
management made all the decisions. I have more production problems now than I ever had. It
boils down to my management team’s lack of interest. I know the problem is in my area, but I
thought you could help me.
TERRY: I have no recommendations, but I’ve had similar complaints from purchasing and
shipping. We should explore your concerns during tomorrow’s plant management meeting.
Adapted from the CMA Examination
Evaluate the preceding information, and answer the following questions:
1. Identify the problems the new computer system created and discuss what caused them.
The problems stem from a total lack of communication at AVC. The failure to communicate
has existed for years and exists between all levels of management.
Top management did not adequately plan for the IS upgrade and did not involve non-IS
Communication problems continued during the systems design phase. The IS group failed to
involve operating management in systems changes and apparently operating management
Therefore, the failure to communicate properly can be traced to both the IS and user groups.
This problem was worsened by top management not adequately planning the conversion
process and their failure to perceive the potential problems between IS and operating
The new systems are now complete. Operating management realizes that there has been a
2. How could AVC have avoided the problems? How can they prevent them in the future?
The problems could have been avoided by top management doing a better job of planning and
To avoid future problems, AVC management needs to review organizational relationships to
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