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Management Information Systems
Information Systems in Global Business Today
Lecture 3
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“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of the new order of things.”
-- Niccolò Machiavelli
Technical and non-technical expertise May not involve technology at all!
Systems Analysis
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Systems Analysis and Design (SAD)
Structured process employed to develop IT/IS projects Identification of business problems Identification/creation of potential solutions Selection, design and implementation of final solution
Problem solving … technology? How do we allow our customers to order products any time of the
day or night with minimal cost increases? How can we enable the location of physical assets as well as
communication that will allow re-location? How do we determine the optimal production mix taking into
account the limitations on the production floor?
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Analysis … Design
SAD contains at least two distinct processes Analysis : determine the nature and the domain of the business
problem What is the problem? What is the best solution to solve it?
Design : design, construction and implementation of solution How do we transform the solution to a usable IS?
A good Analysis is often followed by no Design A good Design is rarely preceded by no Analysis
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Process vs. Data Centricity
Data-Centric Approach Process-Centric Approach
What data does the system need?
What is the system supposed to do?
Tends to have an enduring design stability due to low volatility in organizational data needs.
Design stability is necessarily limited due to constant changes in business processes.
The file structure is enterprise dependent.
The file structure is application dependent.
Data redundancy is generally limited and controlled.
Data redundancy is generally massive and uncontrolled.
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Players in the Development Game
Clients and/or End Users : who benefits IS Management : set criteria and oversee development Systems Analysts : facilitate and communicate Application Programmers : CASE tools? IS Support Personnel
Vendors Database Administrators Telecom Audit & Security: SOX! IT Steering Committee
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The system analyst bridges the communications gap between those who need the computer and those who understand the technology.
SA understands business and technology transform business and information requirements of the
organization into computer-based information systems
The Goal : improved business processes improved information systems new or improved computer applications all three
The Role of a Systems Analyst
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SA Skill Set
Technical Skills Integration and Communication
Analytical Skills System Thinking, Value Focused Thinking
Managerial Skills Business Domain, Project Management, Change Management Expectations Management!
Interpersonal Skills Team player, communicator
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What is an Information System? An information system is an arrangement of people, data,
processes, interfaces, networks, and technology that interact for the purpose of supporting and improving both day-to-day operations in a business - data processing -, as well as supporting the problem solving and decision making needs of management - information services.
What is a Computer Application System? A computer application is computer-based solution to one or
more business problems and needs.
IS
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Types of IS
TPS
MIS
DSS/ES
EIS
Office Automation (OA)Workgroup Management Systems (WMS)
Web-based
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IS Support Decision Making
TPSOAS MIS
KWS
DSS
ESS
Organizational LevelTYPE OFTYPE OFDECISIONDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC
STRUCTURED ACCOUNTS RECEIVABLE
ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS
SEMI- BUDGETSTRUCTURED PREPARATION
PROJECTSCHEDULING
FACILITYLOCATION
UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS
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Systems Development Life Cycle
ConceptualDesign
Analysis
PhysicalDesign
Implementation& Conversion
Operation &Maintenance
System requirement
Blueprint for detailed design
Full design
Operational system
PreliminaryInvestigation
The problem
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Systems Development Life Cycle
ConceptualDesign
Analysis
PhysicalDesign
Implementation& Conversion
Operation &Maintenance
System requirement
Blueprint for detailed design
Full design
Operational system
Change inScope/Requirement
Bad blueprint
Implementationincomplete
Unfixableerrors
PreliminaryInvestigation
The problem
Wrong problem
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The SDLC usually incorporates the following general-purpose problem solving steps: Planning - identify the scope and boundary of the problem, and
plan the development strategy and goals. Analysis - study and analyze the problems, causes, and effects.
Then, identify and analyze the requirements that must be fulfilled by any successful solution.
Design - if necessary, design the solution Implementation - implement the solution. Support - analyze the implemented solution, refine the design,
and implement improvements to the solution. Different support situations can thread back into the previous steps.
The Systems Development Life Cycle
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Planning
Analysis
Design
Support
Problem to be solved
Problem analysis and
Solution requirements
Acceptable solution
Obsolete solution
Implemen- tation
Implemented solution
Related problem to be solved
New solution to same problemImplementation
error to be fixed
CYCLE!
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Alternatives to SDLC
OOAD : Objective Oriented Analysis and Design Combine Data and Processes into an Object Focus on reuse
RAD : Rapid Application Development More parallel approach to development
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A business analyst is a systems analyst that specializes in business problem analysis and technology-independent requirements analysis.
An application analyst is a systems analyst that specializes in application design and technology-dependent aspects of development. system or application architect..
The Roles of a Systems Analyst
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TQM A comprehensive approach to facilitating quality improvements
and management within a business. Identify quality indicators, measure quality, and make appropriate
changes to improve quality Nature of systems analysis encourages analysts to look for
business quality problems. Incomplete and inconsistent specifications from analysts are a
significant contributor to poor software quality
Trends: Total Quality Management
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BPR the study, analysis, and redesign of fundamental business
processes to reduce costs and improve value added to the business BPR project begins with identification of a value chain, a
combination of processes that should result in some value to the business.• The business processes are documented and analyzed in excruciating
detail and streamlined for maximum efficiency. BPR & SA
• The skill competencies for BPR and systems analysis and design are somewhat similar.
• Typical BPR project identifies several opportunities for new and revised computer applications (which systems analysts facilitate).
Trends: Business Process Redesign
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CPI the continuous monitoring of business processes to affect small
but measurable improvements to cost reduction and value added• BPR is intended to implement dramatic change.
• CPI implements a continuous series of smaller changes. Continuous improvement contributes to both cost reductions,
improved efficiencies, and increased value and profit. Systems analysts may be called upon to participate in continuous
process improvement initiatives for any business process, including the design and implementation of improvements to associated computer applications.
Trends: Continuous Process Improvement
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Most businesses have been forced to reorganize to compete globally
IS must support multiple languages, currency exchange rates, international trade regulations, accepted business practices
Coordination of information International Outsourcing -- detailed requirements needed!
Trends: Globalization
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Problems vs. Symptoms A problem is a difference between what we have and what
we want. A symptom is an outward manifestation of a problem
Variance, good or bad, from the norm Many symptoms may be the result of the same problem Houston, we have a symptom
A symptom is evidence of the problem but not necessarily the problem itself.
Problem definition requires a viewpoint!
So What is the Problem?
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Problem Recognition and Definition
Recognize a variance – symptom(s) Investigate – interview users, observe use, test the system Propose a solution – experiment with the system
Ishikawa (fishbone) diagrams can help separate cause and effect
1: come up with symptom categories (people, materials, skills…) 2: relate observed symptoms to categories 3: look for secondary symptoms
Iterative Team Process Why is this *insert symptom here* happening?
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Ishikawa Diagram
Root Problem
Methods People
Symptom Category
Symptom Category
Possible Symptom Categories
4Ps: People, Place, Procedure, Policy4Ms: Manpower, Machines, Methods, Materials4Ss: Surroundings, Suppliers, Systems, Skills
Possible Symptom Categories
4Ps: People, Place, Procedure, Policy4Ms: Manpower, Machines, Methods, Materials4Ss: Surroundings, Suppliers, Systems, Skills
Observed Symptom Or Variance
Secondary Symptom
High distribution costs
High customer walkouts
Low allocation of staff
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P - the need to improve performance.
I - the need to improve information (and data).
E - the need to improve economics
control costs, or increase profits.
C - the need to improve control or security.
E - the need to improve efficiency of people and processes
S - the need to improve service to customers, suppliers, partners, employees, etc.
PIECES Framework
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PIECES
The following checklist for problem, opportunity, and directive identification uses Wetherbe's PIECES framework. Note that the categories of PIECES are not mutually exclusive; some possible problems show up in multiple lists. Also, the list of possible problems is not exhaustive. The PIECES framework is equally suited to analyzing both manual and computerized systems and applications.
PERFORMANCE Problems, Opportunities, and DirectivesA. Throughput – the amount of work performed over some period of time.B. Response time – the average delay between a transaction or request and a response to that
transaction or requestINFORMATION (and Data) Problems, Opportunities, and Directives
A. Outputs1. Lack of any information2. Lack of necessary information3. Lack of relevant information4. Too much information – ``information overload''5. Information that is not in a useful format6. Information that is not accurate7. Information that is difficult to produce8. Information is not timely to its subsequent use
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PIECES
INFORMATION (and Data) Problems, Opportunities, and DirectivesB. Inputs
1. Data is not captured2. Data is not captured in time to be useful3. Data is not accurately captured -- contains errors4. Data is difficult to capture5. Data is captured redundantly -- same data captured more than once6. Too much data is captured7. Illegal data is captured
C. Stored Data
1. Data is stored redundantly in multiple files and/or databases
2. Stored data is not accurate (may be related to #1)
3. Data is not secure to accident or vandalism
4. Data is not well organized
5. Data is not flexible – not easy to meet new information needs from stored data
6. Data is not accessible
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PIECES
ECONOMICS Problems, Opportunities, and DirectivesA. Costs
1. Costs are unknown2. Costs are untraceable to source3. Costs are too high
B. Profits1. New markets can be explored2. Current marketing can be improved3. Orders can be increased
CONTROL (and Security) Problems, Opportunities, and DirectivesA. Too little security or control
1. Input data is not adequately edited2. Crimes are (or can be) committed against data
a. Fraudb. Embezzlement
3. Ethics are breached on data or information – refers to data or information letting to unauthorized people
4. Redundantly stored data is inconsistent in different files or databases
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PIECES
CONTROL (and Security) Problems, Opportunities, and DirectivesA. Too little security or control (continued)
5. Data privacy regulations or guidelines are being (or can be) violated6. Processing errors are occurring (either by people, machines, or software)7. Decision-making errors are occurring
B. Too much security or control1. Bureaucratic red tape slows the system2. Controls inconvenience customers or employees3. Excessive controls cause processing delays
EFFICIENCY Problems, Opportunities, and DirectivesA. People, machines, or computers waste time
1. Data is redundantly input or copied2. Data is redundantly processed3. Information is redundantly generated
B. People, machines, or computers waste materials and suppliesC. Effort required for tasks is excessiveD. Materials required for tasks is excessive
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PIECES
SERVICE Problems, Opportunities, and DirectivesA. The system produces inaccurate resultsB. The system produces inconsistent resultsC. The system produces unreliable resultsD. The system is not easy to learnE. The system is not easy to useF. The system is awkward to useG. The system is inflexible to new or exceptional situationsH. The system is inflexible to changeI. The system is incompatible with other systemsJ. The system is not coordinated with other systems
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Typical Pieces Analysis
Symptom P I E C E SManagement reports are often not received on time. X Production line throughput is below expected standards. X Product rework is high. X X Inventory control reports are inaccurate. X Exceptions occur frequently and must be processed by hand.
X
Production time is higher than industry average. X Orders are often cancelled due to excessive delivery wait time.
X Required information to process an order not available on demand.
X Organizational data redundancy is high. X Production lines are often down for repair or maintenance. X Line personnel are often not aware of their production quota.
X Data transferred from production system to sales system by hand.
X X
Several incidents of system sabotage have been recorded. X
Totals 4 5 1 1 2 2
Likely Problem Areas
Symptom in one (max 2) categories
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Problem Statement
First, we observe, identify and record symptoms All we have is an informed guess but we have to start
somewhere Can’t edit or refine something that doesn’t exist
The written problem statement should list the symptoms, suggest their likely cause of causes, and begin an estimate of the resources to develop an effective solution.
a.k.a. Statement of Scope and Objectives Establish what the system will and will not due
This can (will) change but define boundaries early!
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Bounded Rationality
Problem solvers are willing to settle for a satisfactory solution to a given problem, and avoid the extreme effort necessary to find the optimal solution
cognitive limitations of human beings
But, maybe we do make rational decisions that are just bounded by uncontrollable constraints?
Satisfying
It’s natural to think about what we want and look for it. SAD methodologies are designed to avoid this “anchoring” bias
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Systems
A system is a set of interrelated elements, with an identifiable boundary, that function together to achieve a common goal
Interrelated Elements subsystems works together to achieve the goals system. Synergy?
Boundaries A system is definable within the context of all other systems by
virtue of it having a boundary. Elements that are not contained within the boundary of a
system are said to be a part of the environment of the system (uncontrollable) rather than a part of the system itself (controllable).
Common Goal The goal or purpose of a system is its reason for being.
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Divide and Conquer
Functional decomposition the process of breaking a system down into its component
elements allows the study of a single part of a system and consideration of
refinement or modification independently from the larger system Modularity
When do you stop decomposing? When you’ve learned what you need to know.
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Decomposition : Systems Development Life Cycle
LogicalDesign
Analysis
PhysicalDesign
Implementation& Conversion
Operation &Maintenance
PreliminaryInvestigation
Creeping Commitment
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Preliminary Investigation
Key Activities Problem definition Estimate problem scope Estimate project feasibility Estimate resource
commitment Go/no go decision
Primary Deliverables Preliminary feasibility
report General problem statement
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Analysis
Key Activities Create logical models of
current system Refine problem statement
via detailed symptom analysis
Determine requirements for new system
What is? Implementation
Independent!
Primary Deliverables DFD of current system ERD of current system Formal problem statement Formal requirements
definition Include new features and
prioritization of features Expectations management!
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Logical Design
Key Activities Revise current system
logical models to reflect proposed system changes
Validate logical model of proposed system against requirements determination
“What should be?” not “How?”
Primary Deliverables DFD of proposed system ERD of proposed system Final performance
specifications
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Physical Design
Key Activities Determine hardware
specifications Determine software
specifications Conduct feasibility analysis
and cost justification for new system
Estimate implementation schedule
Design data structures Prepare training guidelines Prepare preliminary testing
procedures
Primary Deliverables Detailed hardware
specifications Detailed software
specifications Final feasibility report Physical data structures and
data dictionary Implementation schedule
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Implementation
Key Activities Acquire hardware and
software Determine location
requirements Install the new system
Parallel? Cutover? Steps? Create test data and conduct
initial system tests Train all end users Verify all end user and
system documentation
Primary Deliverables Final performance test
metrics Fully trained end user
community Publish docs
Fully installed system Fully converted data files
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Maintenance
Key Activities Conduct post-
implementation review Perform requested and
necessary changes to new system
Monitor performance against established guidelines
Primary Deliverables Continually functioning
system
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Underlying Principles of Systems Development
Get the owners and users involved Use a problem-solving approach Establish phases and activities Establish standards for consistent
development and documentation Justify systems as capital investments Don’t be afraid to cancel Divide and conquer Design systems for growth and change
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End of Lecture 3
Questions?