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Chapter Objectives
Discuss the impact of information technology
on business strategy and success
Define an information system and describe its
components
Explain how profiles and models can represent
business functions and operations
Explain how the Internet has affected business
strategies and relationships
1
Chapter Objectives
Identify various types of information
systems and explain who uses them
Distinguish between structured
analysis, object-oriented analysis, and
agile methods
Compare the traditional waterfall model
with agile methods and models
Discuss the role of the information
technology department and the systems
analysts who work there
2
Introduction
Companies use information as a
weapon in the battle to increase
productivity, deliver quality products
and services, maintain customer loyalty,
and make sound decisions.
Information technology can mean the
difference between success and failure
Figure 1-1
3
The Impact of Information
Technology
Information Technology (IT)
– Combination of hardware and software
products and services that companies
use to manage, access, communicate,
and share information
– A vital asset that must be used
effectively, updated constantly, and
safeguarded carefully
4
The Impact of Information
Technology
The Future of IT
– Will see robust growth for at least a
decade
– The greatest need will be for systems
analysts, network administrators, data
communications analysts, and software
engineers
Figure 1-3 For more information about
the Future of IT visit
scsite.com/sad8e/more,
locate Chapter 1, and then
click the Future of IT link. 5
The Impact of Information
Technology
The Role of Systems Analysis and
Design
– Systems Analysis and Design
• Step-by-step process for developing high-
quality information systems
– Systems Analyst
• Plan, develop, and maintain information
systems
Figure 1-4
6
The Impact of Information
Technology
Who develops Information Systems?
– In-house applications
– Software packages
– Internet-based application services
– Outsourcing
– Custom solutions
– Enterprise-wide software strategies
– How versus What
7
Figure 1-5
Information System Components
A system is a set of related components
that produces specific results
A Mission-critical system is one that is
vital to a company’s operations
Data consists of basic facts that are the
system’s raw material
Figure 1-6
8
Figure 1-7
Information System Components
Information is data that has been
transformed into output that is valuable
to users
Information systems have five key
components: hardware, software, data,
processes, and people
Figure 1-8
9
Hardware
– Is the physical layer of the information
system
– Moore’s Law
Information System Components
Figure 1-9 For more information about
Moore’s Law visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
Moore’s Law link. 10
Information System Components
Software
– System software
– Application software
– Enterprise applications
– Horizontal system
– Vertical system
– Legacy systems
11
Information System Components
Data
– Is the raw material that an information
system transforms into useful
information
– Tables store data
– By linking the tables, the system can
extract specific information
Figure 1-10
12
Information System Components
Processes
– Describe the tasks and business
functions that users, managers, and IT
staff members perform to achieve
specific results
People
– Stakeholders
– Users, or end users
13
Understanding The Business
Business Process Modeling
Business Profile
Business Models
– Business model
– Business process
– Business process reengineering (BPR)
Figure 1-11 Figure 1-12
14
Understanding The Business
New Kinds of Companies
– Production-oriented
– Service-oriented
– Internet-dependent
– Dot-com (.com)
– Brick-and-mortar
Figure 1-13
15
Impact of the Internet
E-Commerce or I-Commerce
B2C (Business-to-Consumer)
B2B (Business-to-Business)
– EDI
– Extensible markup language (XML)
– Supplier relationship management
(SRM)
Figure 1-14
For more information about
Electronic Commerce visit
scsite.com/sad8e/more,
locate Chapter 1, and then
click the Electronic
Commerce link.
For more information about
XML visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
Extensible Markup Language
link.. 16
Impact of the Internet
Web-Based System Development
– WebSphere
– .NET
– Web services
– Internet-based systems involve various
hardware and software designs
– Career opportunities will expand
Figure 1-15
17
How Business Uses Information
Systems
In past, IT managers divided systems
into categories based on the user group
the system served
– Office systems
– Operational systems
– Decision support systems
– Executive information systems
18
How Business Uses Information
Systems
Today, it makes more sense to identify a
system by its functions and features,
rather than by its users
– Enterprise computing systems
– Transaction processing systems
– Business support systems
– Knowledge management systems
– User productivity systems
19
How Business Uses Information
Systems
Enterprise computing systems
– Support company-wide operations and
data management requirements
– Enterprise resource planning (ERP)
– Many hardware and software vendors
target the enterprise computing market
Figure 1-16 For more information about
Enterprise Resource Planning
visit scsite.com/sad8e/more,
locate Chapter 1, and then
click the Enterprise Resource
Planning link. 20
How Business Uses Information
Systems
Transaction processing systems
– Involve large amounts of data and are
mission-critical systems
– Efficient because they process a set of
transaction-related commands as a
group rather than individually
Figure 1-17
21
How Business Uses Information
Systems
Business support systems
– Provide job-related information to users
at all levels of a company
– Management information systems (MIS)
– Radio frequency identification (RFID)
– What-if
Figure 1-18 For more information about
RFID, visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
RFID link. 22
How Business Uses Information
Systems
Knowledge management systems
– Called expert systems
– Simulate human reasoning by combining
a knowledge base and inference rules
– Many knowledge management systems
use technique called fuzzy logic
Figure 1-19 For more information about
knowledge management
systems, visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
Knowledge Management
Systems link. 23
How Business Uses Information
Systems
User productivity systems
– Technology that improves productivity
– Groupware
Information systems integration
– Most large companies require systems
that combine transaction processing,
business support, knowledge
management, and user productivity
features
24
Information System Users and Their
Needs
A systems analyst must understand the
company’s organizational model to
recognize who is responsible for
specific processes and decisions and to
be aware of what information is required
by whom
Figure 1-20
25
Information System Users and Their
Needs
Top managers
– Strategic plans
Middle Managers and Knowledge
Workers
Supervisors and Team Leaders
Operational Employees
– Empowerment
26
Systems Development Tools
Systems analysts must know how to
use a variety of techniques such as
modeling, prototyping, and computer-
aided systems engineering tools to plan,
design, and implement information
systems.
Systems analysts work with these tools
in a team environment
27
Systems Development Tools
Modeling
– Business model
– Requirements model
– Data model
– Object model
– Network model
– Process model
Figure 1-21
28
Systems Development Tools
Prototyping
– Prototype
– Speeds up the development process
significantly
– Important decisions might be made too
early, before business or IT issues are
thoroughly understood
– Can be an extremely valuable tool
29
Systems Development Tools
Computer-Aided Systems Engineering
(CASE) Tools
– Also called computer-aided software
engineering
– CASE tools
– Can generate program code, which
speeds the implementation process
Figure 1-22 For more information about
CASE Tools visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
CASE Tools link.
30
Overview of Systems Development
Methods
The most popular alternatives are
structured analysis, which is a
traditional method that still is widely
used, and object-oriented analysis (O-
O), which is a newer approach that
many analysts prefer, and agile
methods, also called adaptive methods
Understand the various methods and
the strengths and weaknesses of each
approach
31
Overview of Systems Development
Methods
It is not unusual for system developers
to mix and match methods
People, tasks, timetables, and costs
must be managed efficiently
Project management
Figure 1-23
32
Overview of Systems Development
Methods
Structured Analysis
– Systems development life cycle (SDLC)
– Predictive approach
– Uses a set of process models to
describe a system graphically
– Process-centered technique
– Waterfall model
Figure 1-24
33
Overview of Systems Development
Methods
Structured Analysis
– Deliverable or end product
– Disadvantage in the built-in structure of the SDLC, because the waterfall model does not emphasize interactivity among the phases
– This criticism can be valid if the SDLC phases are followed too rigidly
– Adjacent phases usually interact
Figure 1-25
34
Overview of Systems Development
Methods
Structured Analysis
– The SDLC model usually includes five
steps
• Systems planning
• Systems analysis
• Systems design
• Systems implementation
• Systems support and security
35
Overview of Systems Development
Methods
Structured Analysis
– Systems Planning
• Systems planning phase
• Systems request – begins the process &
describes problems or desired changes
• Purpose of this phase is to perform a
preliminary investigation
• Key part of preliminary investigation is a
feasibility study
36
Overview of Systems Development
Methods
Structured Analysis
– Systems Analysis
• Systems analysis phase
• First step is requirements modeling, where
you investigate business processes and
document what the new system must do to
satisfy users
• Deliverable is the System requirements
document
37
Overview of Systems Development
Methods
Structured Analysis
– Systems Design
• Systems design phase
• Identify necessary outputs, inputs, and
processes
• Design internal and external controls
• Determine the application architecture
• Deliverable is system design specification
• Management and user involvement is critical
38
Overview of Systems Development
Methods
Structured Analysis
– Systems Implementation
• Systems implementation phase
• New system is constructed
• Programs are written, tested, and
documented, and the system is installed
• Includes an assessment, called a system
evaluation
39
Overview of Systems Development
Methods
Structured Analysis
– Systems Support and Security
• Systems Operation, Support, and Security
phase
• A well-designed system must be secure,
reliable, maintainable, and scalable
• Most information systems need to be
updated significantly or replaced after
several years of operation
40
Overview of Systems Development
Methods
Object-oriented Analysis
– Combines data & processes that act on
the data into things called objects
– Object is a member of a class
– Objects possess properties
– Methods change an object’s properties
Figure 1-26
41
Overview of Systems Development
Methods
Object-Oriented Anaylsis
– A message requests specific behavior or
information from another object
– Usually follow a series of analysis and
design phases that are similar to the
SDLC
– Interactive model
Figure 1-27
42
Overview of Systems Development
Methods
Agile Methods
– Are the newest development
– Emphasizes continuous feedback
– Iterative development
– Agile community has published the Agile
Manifesto
– Spiral model
Figure 1-28 Figure 1-29 For more information about
agile systems development
methods, visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
Agile Methods link. 43
Overview of Systems Development
Methods
Agile Methods
– Agile process determines the end result
– Other adaptive variations and related
methods exist
– Two examples are Scrum and Extreme
Programming (XP)
– Analysts should understand the pros
and cons of any approach before
selecting a development method
Figure 1-30 Figure 1-31 44
Overview of Systems Development
Methods
Other Development Methods
– IT departments have long sought to
avoid systems that were developed
without sufficient input from users
– Joint application development (JAD)
– Rapid application development (RAD)
45
Overview of Systems Development
Methods
Other Development Methods
– Might encounter other systems
development techniques
– Rational Unified Process (RUP®)
– Microsoft Solutions Framework (MSF)
Figure 1-32 For more information about
Microsoft Solutions Framework,
visit scsite.com/sad8e/more,
locate Chapter 1, and then click
the Microsoft Solutions
Framework link. 46
Systems Development Guidelines
Develop a project plan
Involve users and listen carefully to
them
Use project management tools to
identify tasks and milestones
Develop accurate cost and benefit
information
Remain flexible
Figure 1-33
47
Information Technology Department
The information technology (IT)
department develops and maintains a
company’s information systems.
The IT group provides technical support
These functions overlap considerably
and often have different names in
different companies
Figure 1-34
48
Information Technology Department
Application Development
– Teams consisting of users, managers
and IT Staff members
Systems Support and Security
– Deployment team
User Support
– Help desk or information center (IC)
49
Information Technology Department
Database Administration
– Database design, management,
security, backup, and user access
Network Administration
– Includes hardware and software
maintenance, support, and security
Web Support
– Webmasters
50
Information Technology Department
Quality Assurance (QA)
– Reviews and tests all applications and
systems changes to verify specifications
and software quality standards
– Is a separate unit that reports directly to
IT management
51
The Systems Analyst Position
A systems analyst investigates,
analyzes, designs, develops, installs,
evaluates, and maintains a company’s
information systems
On large projects, the analyst works as
a member of an IT department team
Smaller companies often use
consultants to perform systems
analysis work on an as-needed basis
52
The Systems Analyst Position
Responsibilities
– Translate business requirements into IT
projects
Required Skills and Background
– Solid technical knowledge, strong oral
and written communication skills and
analytic ability, and an understanding of
business operations and processes.
Figure 1-35
53
The Systems Analyst Position
Certification
– Important credential
Career Opportunities
– Job titles
– Company organization
– Company size
– Corporate culture
– Salary, location, and future growth
54
Chapter Summary
IT refers to the combination of hardware
and software resources that companies
use to manage, access, communicate,
and share information
The essential components of an
information system are hardware,
software, data, processes, and people
Most companies offer a mix of products,
technical and financial services,
consulting, and customer support
55
Chapter Summary
Information systems are identified as
enterprise computing systems,
transactional processing or operational
systems, business support systems,
knowledge management systems, or
user productivity systems
Organization structure includes top
managers, middle managers and
knowledge workers, supervisors and
team leaders
56
Chapter Summary
Systems analysts use modeling,
prototyping, and computer aided
systems engineering (CASE) tools
Three popular system development
approaches are structured analysis,
object-oriented analysis (O-O), and agile
methods, also called adaptive methods
57
Chapter Summary
Regardless of the development strategy,
people, tasks, timetables, and cost must
be managed effectively using project
management tools
The IT department develops, maintains
and operates a company’s information
systems
58
Chapter Summary
Systems analysts need a combination of
technical and business knowledge,
analytical ability, and communication
skills
Systems analysts need to consider
salary, location, and future growth
potential when making a career decision
59
Test Yourself
1. What is the role of a systems analysis
and design?
– Systems analysis and design is a step-
by-step process for developing high-
quailty information systems.
61
Test Yourself
2. What are the five key components of
information systems?
Hardware
Software
Data
Processes
People
63
Test Yourself
5. SDLC is an example of a ________
method, while Extreme Programming is
an example of an __________ method.
68
Test Yourself
5. SDLC is an example of a structured
analysis method, while Extreme
Programming is an example of an agile
approach.
69
Test Yourself
6. CASE tools are:
a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
70
Test Yourself
6. CASE tools are:
a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
71
Test Yourself
7. Objects, classes, and methods are all
terms used in structured/object oriented
methodologies
72
Test Yourself
7. Objects, classes, and methods are all
terms used in object oriented
methodologies
73
Test Yourself
8. What are the phases of the systems
development life cycle?
– Systems planning
– Systems analysis
– Systems design
– Systems implementation
– Systems support and security
75
Test Yourself
9. List at least three of the six functions of
a typical IT department
1. Application development
2. Systems support
3. User support
4. Database administration
5. Network administration
6. Web support
77
Test Yourself
10. True/False: Certification is an
important credential that is valued by
companies.
78
Test Yourself
10. True/False: Certification is a
professional credential that is valued by
companies.
True
79