An Introduction to Information Systems - Principles of Information Systems - page 26

Boeing used virtual reality and
computer simulation when
designing and building its
Dreamliner 787 aircraft.
(Source: Frank Brandmaier/dpa/
Landov.)

Figure 1.15

A Head-Mounted Display
The head-mounted display (HMD)
was the first device to provide the
wearer with an immersive
experience. A typical HMD houses
two miniature display screens and
an optical system that channels the
images from the screens to the
eyes, thereby presenting a stereo
view of a virtual world. A motion
tracker continuously measures the
position and orientation of the user's
head and allows the image-
generating computer to adjust the
scene representation to the current
view. As a result, the viewer can look
around and walk through the
surrounding virtual environment.
(Source: Courtesy of 5DT, Inc. www.
5dt.com.)

It is difficult to predict where information systems and technology will be in 10 to 20
years. It seems, however, that we are just beginning to discover the full range of their use-
fulness. Technology has been improving and expanding at an increasing rate; dramatic
growth and change are expected for years to come. Without question, having knowledge of
the effective use of information systems will be critical for managers both now and in the
long term. Now, let's examine how information systems are created.

SYSTEMS DEVELOPMENT

Systems development is the activity of creating or modifying business systems. Systems de-
velopment projects can range from small to very large and are conducted in fields as diverse
as stock analysis and video game development. Some systems development efforts are a huge
success. Wachovia Corporation and Investment Bank, for example, used systems develop-
ment to create a new computer-trading platform that increased processing capacity by a factor
of three, while dramatically reducing costs. 44 According to Tony Bishop, senior vice president
of the firm, “We looked at the current system and said, 'Where can we build standardized
frameworks, components, and services…?' We now do pricing in milliseconds, not seconds,
for either revenue protection or revenue gain.” Other systems development efforts fail to
meet their cost or schedule goals. A large federal database designed to track hundreds of
millions of dollars of money transfers in an effort to curb terrorism was delayed by several
years. 45 Scheduled to be implemented by 2007, the system may not be ready until 2010.
Some also question whether the $32 million budget for the new system will be met. In another
case, Colorado Governor Bill Ritter ordered that all centralized systems development efforts
be placed under the state's chief information officer to curb expensive computer systems that

systems development
The activity of creating or modifying
business systems.