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Lecture Outline
Chapter 5: System Design and Acquisition
CHAPTER OBJECTIVES
After completing this chapter, the reader should be able to do the following:
♦ Understand the difference between the data and process views of a system
INTRODUCTION
● The goal of this chapter is to provide a deeper understanding of the process through
which an HRIS is designed and acquired. As noted in previous chapters, the larger
development process is called the systems development life cycle (SDLC).
Design Considerations During the Systems Development Life Cycle
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● The goal of the SDLC is to provide those organizations updating existing systems or
designing new ones with a stronger, more structured process to follow. Given the wide
● To merge the phases together can invite the temptation to focus heavily on the physical
aspects of the new system (hardware/software) at the expense of improved business
processes. In addition, focusing on the physical aspects of a system can invite premature
decisions on a physical solution that may not be the most effective solution for the
business processes identified.
Logical Design
● After the organization has completed the analysis phase of the SDLC, one of the key
tasks facing the HR staff and development teams is to model the needs for the new
system.
● Therefore, system developers like to focus on the essence of the business processes
independent of any technological implementation. To do this, logical models of the
system are created.
● Logical models are HRIS models that could be operationalized in multiple ways in terms
of the technology. For example, in the logical model, an organization might focus on
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to design a stronger solution.
● Essentially, a logical model is similar to the blueprints for a home or an airplane. It
provides the organization with an outline of the key business processes and goals for the
Two Ways to View an HRIS: Data Versus Process
● For any HRIS, the organization must look at the total HR system from two different
perspectives: the data perspective and the process perspective.
● The data perspective focuses on an analysis of what data the organization captures and
● The process perspective, conversely, focuses on the business processes and activities in
which the organization engages and on how data flow through the HRIS. The designer
would focus on the specific business processes, including the input of the data into the
system, the flow of data through the system, and the storage of the data, and not on
Logical Process Modeling With Data Flow Diagrams (DFD)
● A process model describes and represents the key business processes or activities
conducted by the organization.
● The specific type of process model typically used by organizations is a DFD. A DFD is a
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stores. Kendall and Kendall (2008) argue that DFDs have four distinct advantages over
narrative (e.g., written) descriptions:
1. There is freedom from committing to the technical implementation of the
system too early.
● A DFD consists of four symbols (see Figure 5.1). These include the entity, the data
flow, the process, and the data store.
o Entities represent a specific person, place, system, or department and are labeled
with a noun in the DFD.
o The data flow represents the movement of a single piece of data from point to
point (e.g., process to process, entity to process, or process to data store) through
Creating and Using the DFD
● Most DFDs for integrated business systems are very complex, consisting of hundreds to
thousands of processes, data flows, and data stores.
● Therefore, DFDs are organized by modeling the individual processes (such as the
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etc.).
o It is important to note, at this point, that the context-level diagram and the Level 0
diagrams should reflect and communicate the same information (see Figure 5.3).
● This concept is called the balancing of DFDs. Balancing DFDs is important because we
want to ensure that all individuals are viewing and using the same model of the system.
Otherwise, there is the risk that the system will not be designed appropriately.
Physical Design
● The acquisition of a system is the culmination of a series of important steps.
● The major goal of this phase of the SDLC is to translate the logical model and
requirements into a physical system, including all hardware, software, and networking.
● Major activities in this phase include (1) determining whether or not there is value in
Three Choices in Physical Design
● The first step in this design phase is to determine how to proceed with physical design.
● First, the organization has the option of doing nothing. Although this may seem to be
counterintuitive because much time and money typically have been spent on the analysis
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● The final option that an organization can choose is to implement the business
process changes along with new or upgraded technology. There are three basic ways
that this can be done: build it, buy it, or outsource the development.
● Organizations that choose the first approach—to build the technology internally—will
● The second approach of buying prepackaged, commercial off-the-shelf software
(COTS) can fit many of the needs for most organizations.
o These systems can range from small, single-function applications costing a few
thousand dollars to large-scale, enterprise resource planning (ERP) software
referred to as the “vanilla” approach).
● The final approach to developing the software is to outsource the development to an
external company or to obtain access to existing software through an application service
provider (ASP).
o The greatest advantage of outsourcing is that external software development can
bring vast resources, experiences, and technical skills to design a much more
effective solution than would otherwise be possible.
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● In addition, an organization need not rely on a single approach. For most organizations,
Working With Vendors
● By far the most common decision that the HR department will make is to work with an
external vendor to develop or acquire the system.
● The first step in this process is to develop a request for proposal (RFP).
vendors.
● When developing the RFP, organizations should keep several things in mind. The first
recommendation is to focus on the business requirements.
● Associated with this requirement, the second recommendation is to be specific. With all
of the effort placed into the needs analysis and the redesign of business processes, very
specific requirements will be available and should be included in the RFP.
Vendor Selection
● After the RFPs are sent, the vendors will then evaluate them to determine if they have a
product that would fit the company’s needs.
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Functionality
● As you evaluate the different vendor responses, it is important to evaluate how fully the
functionality of the HRIS meets the HR needs.
IT Architecture and IT Integration
● The organization will need to know whether the HRIS will be a stand-alone system or a
networked system or a Web-based one and so on.
● In addition, the organization will want to know with what technology or platform the
Price
● Although price will ultimately play a very large role in the selection of an HRIS, price
should be secondary to the goal of finding a system that meets your process needs. At the
Vendor Longevity and Viability
● As with any purchase decision, it is important to evaluate the quality of the vendor itself.
● In today’s environment, the viability of vendors can often be assessed through their
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Assessing System Feasibility
● It is important to conduct a thorough feasibility assessment of the project.
Technical Feasibility
● Technical feasibility focuses on the current technological capabilities of the organization
and the technological capabilities required for the implementation of the proposed
Operational Feasibility
● Operational feasibility focuses on how well the proposed system fits in with the current
and future organizational environment.
● In addition, operational feasibility assesses the extent to which the project fits within the
Legal and Political Feasibility
● The best-designed and -implemented system can end up causing major headaches for the
organization if it violates existing laws and regulations.
completely than any technical shortcomings.
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Economic Feasibility
CHAPTER SUMMARY
The goal of this chapter was to discuss the factors that contribute to a more effective system
design strategy. First, we discussed how the HR staff and consultants will translate the
requirements from previous phases of the SDLC into improved logical business processes. We
Third, we discussed the options available for the firm when developing the final physical design
for the new system. One option available to firms is not to change their existing practices. Other
options include building the software internally or sourcing the software through external
vendors. The chapter also briefly outlined the steps of working with a vendor, from the RFP