Page 631 - Introduction to Business

CHAPTER 17 Management Information Systems 605

interface, the structure of the database to be used by the information system, and system specifications The
the programs and procedures needed by the information system. The final product specifications of the computer
hardware, computer software,
of systems design is called system specifications, which specify the computer databases, telecommunications
hardware, computer software, databases, telecommunications networks, and end networks, and people resources that
users and information systems staff that will be needed by the information system. will be needed by the information
system
Programming entails translating the system specifications into software pro-
programming Translating the system
grams. These programs could be created in-house, outsourced, or purchased as specifications into software programs
commercially available software packages. testing Making sure that the information
Testing involves making sure that the information system will produce the system will produce the desired results
desired results. The first level of testing is unit testing and consists of verifying that unit testing Verifying that each
each individual program is working properly. The second level of testing is system individual program is working properly
testing and involves determining if the individual programs will function together system testing Verifying that individual
programs will function together as
as planned. The third level of testing is acceptance testing, which users and man-
planned
agers do in order to certify that the information system is ready to be used in a pro-
acceptance testing Verifying that the
duction setting. information system is ready to be used
Conversion is the process of moving from the current situation to the new one in a production setting; done by
where the information system is in use. There are four conversion strategies: paral- managers and end users
lel, phased, pilot, and plunge. In the parallel conversion strategy, the old system and conversion The process of moving from
an old information system to a new
the new system are in operation until users agree that the new system is functioning information system
properly. The phased conversion strategy introduces the new system in stages, parallel conversion strategy The
either by function or by organizational units. The pilot conversion strategy operates conversion strategy where an old
the new system using a subset of users, and once it proves to be fully functional, the information system and a new
information system are in operation until
new system is installed for all users. The plunge conversion strategy calls for com-
users agree that the new system is
pletely replacing the old system by the new system on an agreed-on day. functioning properly
Once the conversion is completed and the system is being used, the system is phased conversion strategy The
said to be in production. For systems that are in production, any changes to a sys- conversion strategy where a new
information system is introduced in
tem in order to correct errors, meet new requirements, or improve its operation are
stages, either by function or by
called maintenance. organizational units
pilot conversion strategy The
reality It is a common practice for software companies to release a beta ver- conversion strategy where a new
CH ECK sion of their software before the software is commercialized. From an information system is operated using a
information systems development perspective, what function do beta subset of users and, once it proves to
versions serve? be fully functional, is installed for all
users
plunge conversion strategy The
conversion strategy where a new
information system replaces at once
an old information system on an
agreed-on day
Global Information Systems

LEARNING OBJECTIVE 5
production The information systems
Discuss how global companies are configuring their information systems. development stage when the
conversion is completed and the new
Globalization is here to stay, and as business organizations enter the international
information system is being utilized by
arena, they need to configure their information systems to support their new end users
endeavors. The four basic configuration strategies for information systems are cen- maintenance The information systems
tralized, duplicated, decentralized, and networked. The four organizational struc- development stage when the production
tures for conducting business globally are domestic exporter, multinational, fran- system is being changed to correct
errors, meet new requirements, or
chiser, and transnational. improve its operation
In a centralized configuration strategy, the development and operation of all centralized configuration strategy The
information systems is done at a home base. In a duplicated configuration strat- strategy where the development and
egy, the development of all information systems is done at a home base, but the operation of all information systems is
done at a home base
operation of these systems is handed over to autonomous business units at foreign
locations. In the decentralized configuration strategy, each autonomous business

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