Foundation of information system

FOUNDATION OF INFORMATION
SYSTEM

Information is a collection of interrelated data that has been processed into a
meaningful form.
Information system (IS) is an organized combination of people, hardware,
software, communications network and data resources that collects,
transforms and disseminates information in an organization.
INFORMATION

The quantities, characters, or symbols on which operations are performed by a
computer, which may be stored and transmitted in the form of electrical
signals and recorded on magnetic, optical, or mechanical recording media.
Data are raw or unorganized forms (alphabets, numbers, or symbols) that refer
to, or represent conditions, ideas or objects
All data held in the enterprise qualifies as or will need to qualify as
information
DATA

In accurate or timely data is obsolete and lacks integrity
Data that is not specific and organized for a purpose cannot be used.
Data that doesn’t provide understanding or is redundant is not useful.
DATA

Consists of four stages:
Data Origination: hiring, ordering, selling etc
Processing and immediate use : statistical tool
Ready access storage: storage units
Data Destruction
DATA LIFE CYCLE

It is simply the conversion of raw data to meaningful information.
Data is manipulated to produce results that lead to a resolution of a problem.
DATA PROCESSING

Collection
Preparation
Input
Processing
Output and Iterpretation
Storage
STAGES OF DATA PROCESSING

Manual Data Processing: From collection to storage everything is manual
Mechanical Data Processing: Typewriters, printing machine
Electronic Data Processing
Online Transaction processing
Batch Processing
Centralized data processing
Decentralized data processing
TYPES OF DATA PROCESSING

Online system handles transaction as and when they happen and provides
output at the particular instance.
As the processing is interactive it lowers delays and provides constant
interaction between user and the system.
Example: Airline ticket reservation, Banking system
ONLINE PROCESSING

 The system processes transactions
completely when and where they occur
 Users interact directly with the information
system.
 Users can access data randomly
 The information system must be available
whenever necessary to support business
functions.

 It is the execution of a series of jobs in
a program on a computer without manual
intervention. It is a processing mode: the
execution of a series of programs each on a
set or "batch" of inputs, rather than
a single input.
 Data is collected and processed in groups or
batches.
 Eg: Cheque

 It processes transaction data immediately after
they are generated and can provide immediate
output.
 In RTS data is processed as soon as it is
originated or recorded, without waiting to
accumulate batches of data
 Real time data processing involves a continual
input, process and output of data. Data must be
processed in a small time period (or near real
time). Radar systems, customer services and
bank ATMs are examples.

 Real time data processing and analytics
allows an organization the ability to
take immediate action for those times when
acting within seconds or minutes is
significant. The goal is to obtain the insight
required to act prudently at the right time -
which increasingly means immediately.

 Processing performed in one computer or in
a cluster of coupled computers in a single
location

 The emergence of data takes place only at one
place
 The loss of data is minimized
 The methods and machines can be
standardized
 Services of more competent and technical
personnel can be taken
 It is also very cost –effective particularly in the
case of large operations
 Duplication of work can be aoided.

 Lack of co-operation form managers, who do
not like to be under control of centralized
data processing system
 Resistance from managers for mechanizing
data processing
 Difficult to provide equitable service
 Data security is also questioned.

 Although data may be transmitted between
the computers periodically, it implies limited
daily communications. Contrast with
distributed computing and
centralized processing.

 Familiarity with local problems
 Rapid response to local processing needs
 Profit and loss responsibility can be easily
fixed.

 There is duplication of activities and
redundancy
 Difficulty to maintain uniformity
 High cost

 Data that is accurate and timely, specific and
organized for a purpose, presented within a context
that gives it meaning and relevance, and can lead
to an increase in understanding and decrease in
uncertainty.
 Information is valuable because it can affect
behavior, a decision, or an outcome.
 For example, if a manager is told his/her company's
net profit decreased in the past month, he/she may
use this information as a reason to cut financial
spending for the next month.

 Processed form of interrelated data in
meaningful form is called information.
 Raw data that has bee verified to be
accurate and timely, is specific and
organized for a purpose, is presented within
a context that gives it meaning and
relevance and which leads to increase in
understanding and decrease in uncertainity

 Organizations success completely depends
on effective flow of information.
 when GM tried to introduce the Nova in Latin
America they thought they could use the
same brand name they used in the United
States. They couldn't figure out why no one
wanted it until they learned it translated in
Spanish to 'No-go.'

 Structure of the organization
 Size of the organization
 Amount of information
 Method used
 Importance
 Necessity
 Staff competence
 Software and hardware systems

 Different sources of information generation.

 Accounting
 Finance
 Personnel
 Public Relations
 Sales
 Market Research
 Production
 Purchasing

 Government
 Auditor
 Shareholders and investors
 Customers

Information required at different management
levels

 Process of determining the value of that
information by pin pointing the data to be
analyzed

Start
Select data to be
evaluated
Estimate expected
value of perfect
information
Compare value with
cost of information
Discount for:
• Deficiencies and
inaccuracy
• Missing utilities
Acquire
information
Increase value by decreasing
inaccuracy or increasing utility
of reduce cost by increasing
or reducing utility
Does actual
value of
information
exceed the
cost
Wish to
continue
Stop

 Data: I have one item. The data displays a 1,
not a zero.
 Information: It’s a tomato. Now, we understand
the item and its characteristics.
 Knowledge: A tomato is a fruit. We can identify
patterns in the information and apply them to
the item.
 Wisdom: Tomato is never added to a fruit
salad. There is an underlying, commonly
understood principle that governs the item’s
purpose.

 Data are raw facts
and figures that on
their own have no
meaning
 These can be any
alphanumeric
characters i.e. text,
numbers, symbols
Note the “are” bit above? What does this mean?

 Yes, Yes, No, Yes, No, Yes, No, Yes
 42, 63, 96, 74, 56, 86
 111192, 111234
 None of the above data sets have any
meaning until they are given a CONTEXT
and PROCESSED into a useable form

 To achieve its aims the organisation will
need to process data into information.
 Data needs to be turned into meaningful
information and presented in its most useful
format
 Data must be processed in a context in
order to give it meaning

 Data that has been processed within a
context to give it meaning
OR
 Data that has been processed into a form
that gives it meaning

 In the next 3 examples
explain how the data
could be processed to
give it meaning
 What information can
then be derived from
the data?
Suggested answers are given at the end of this presentation

Yes, Yes, No, Yes, No, Yes,
No, Yes, No, Yes, YesRaw Data
Context
Responses to the market
research question – “Would
you buy brand x at price y?”
Information ???
Processing

Raw Data
Context
Information
42, 63, 96, 74, 56, 86
Jayne’s scores in the six
subject
???
Processing

Raw Data
Context
Information
111192, 111234
The previous and current
readings of a customer’s
car’s dashboard
???
Processing

 Knowledge is the understanding of rules
needed to interpret information
“…the capability of understanding the
relationship between pieces of
information and what to actually do
with the information”
Debbie Jones – www.teach-ict.com

 Using the 3 previous examples:
› A Marketing Manager could use this information to decide
whether or not to raise or lower price y
› Jayne’s teacher could analyse the results to determine
whether it would be worth her re-sitting a module
› Looking at the pattern of the customer’s previous gas bills
may identify that the figure is abnormally low and they are
fiddling the gas meter!!!

 Knowledge workers have specialist
knowledge that makes them “experts”
› Based on formal and informal rules they have
learned through training and experience
 Examples include doctors, managers,
librarians, scientists…

 Because many rules are
based on probabilities
computers can be
programmed with “subject
knowledge” to mimic the role
of experts
 One of the most common
uses of expert systems is in
medicine
› The ONCOLOG system shown
here analyses patient data to
provide a reference for doctors,
and help for the choice,
prescription and follow-up of
chemotherapy

Information Data Context Meaning= ++
Processing
Data – raw facts and figures
Information – data that has been processed (in a context) to give it meaning

Basis of Distinction Data Information
Definition
Data are raw numbers or
other findings which, by
themselves, are of limited
value.
Information is data that
has been converted into a
meaningful and useful
context.
Example
Ticket sales on a band on
tour.
Sales report by region
and venue – tells us
which venue is most
profitable.
Significance
Data by itself alone is not
significant.
Information is significant
by itself.
Etymology
Data is a plural of datum,
which is originally a Latin
noun meaning “something
given.” Its origin dates
back to the 1600s.
Its origin dates back to the
1300s

 Environmental Information
› Government Policies
› Economic trends
› Technological information
› Factors of Production
 Competitive Information
› Industry Demand
› Firm Demand
› Competition
› Past Performance
› Present activity
› Future Plans

 Internal Information
› Sales Forecast
› Financial Plan
› Supply Factors
› Policies

 Non-action information
 Action Information
 Recurring Information
 Non-recurring Information
 Documentary Information
 Non Documentary Information
 Internal Information
 External Information

 Accuracy
 Timeliness
 Relevance
 Pertinent
 Completeness
 Accessibility
 Granularity
 Consistency

 IT has automated all company functions from sales
to manufacturing. Invoicing to shipping.
 New technologies come in handy for business
houses to change the processing of the business.
 Downloading music, movies, shopping are
completely new aspects of IT that has
revolutionized businesses.
 Droom.in, amazon.com, muncha.com, alibaba.com,
are few examples of the revolution.
 Ola, mycab, sixt, revolutionized through the use of
mobile and IS.

Sales
Accounting
Manufacturing
and Production
Generate
Order
Submit Order
Generate
Invoice
Approve
Credit
Check Credit
Ship Product
Assemble
Product

 Information systems is defined as the
process of and tools for storing, managing,
using and gathering of data and
communications in an organization.
 An example of information systems are
tools for sending out communications and
storing files in a business.

 Economic Importance
 Information Systems Improve Performance
 Importance in Decision Making
 Organizational Behavior Change
 Communication
 Operations
 Records

Basically there are 5 components available.
Hardware
Software
Data
Procedures
People

Examples Of information system
Information system resources:
People Resources
Specialists-
system
analysts ,
Software
Developers,
Hardware
Resources
Machines -
Computers
Video monitors,
Optical
scanners,
Plastic cards
Software
Resources
Programs-
operating
system
programs,
Data Resources
Product
descriptions
Customer
records,
employee files,
Network Resources
Communications
Media ,
Communication
processors

The term hardware refers to machinery.
This category includes the computer itself,
which is often referred to as the central
processing unit (CPU), and all of its support
equipments.

 Examples
› Dell PowerEdge 2600 File Server
› Apple iMac
› Sony LCD Flat Panel Monitor
› iPod
› IDAutomation USB Barcode Scanner
› RFID Chip

The term software refers to computer
programs and the manuals (if any) that support
them.

 Examples
› Windows XP
› Graphics Card Driver Software
› PowerPoint
› mySAP Customer Relationship Management
› Peachtree Accounting
› iTunes Software

Data are facts that are used by programs to
produce useful information.

 Examples
› IBM DB2 8.2
› Microsoft SQL Server 2000
› Oracle Database 10g
› MySQL
› Data Mining Software

Procedures are the policies that govern the
operation of a computer system.

People mean the end user of the Systems.
Every CBIS (Computer Based Information
System) needs people if it is to be useful.

 People are the 5th component of an
Information System
 Everyone forgets the importance of people in
an information system.
 Example: End User, Data Entry Person,
Manager, Programmer, DB Administrator,
Cashier, Secretary, Professor.

 Examples
› Ethernet
› Netgear Wireless Router
› Cable Modem
› Cell Phone
› WiFi, WiMax card
› Bluetooth device

 The challenge of competitors
 Threat of new entry
 Threat of substitute product
 Bargaining Power of customer
 Bargaining Power of supplier

 used to describe the interaction of external
influences -- threats and opportunities -- that
affect an organization’s strategy and ability to
compete
 competitive advantage - can be achieved by
enhancing the firm’s ability to deal with
customers, suppliers, substitute products
and services, and new entrants to its market

 Objective - use this model to identify
potential areas where IT can be used to gain
a competitive advantage

 businesses can use four basic competitive
strategies to deal with these competitive
forces:
 1. Product Differentiation
 2. Cost leadership
 3. Focused differentiation
 4. Cost Focus

©The McGraw-Hill Companies, Inc., 1998
3- 6
Irwin/McGraw-Hill
Competitive StrategiesCompetitive Strategies
Competitive AdvantageCompetitive Advantage
CompetitiveCompetitive
ScopeScope
Lower Cost Differentiation
Broad
Target
Narrow
Target
Cost
Leadership
Cost
Focus
Differentiation
Focused
Differentiation

 competitive strategy for creating brand
loyalty
 Develop products & services which are
different from what the competition offers
 . superior attributes
 . distinguishing features

 to prevent new competitors from entering
their markets, businesses produce
goods/services at lower price than
competition
 based on efficient operations
 based on effective operations
 economies of scale

 develop new market niche for specialized
products or services
 so that business can compete in target
market better than its competitors

 Company serves narrow market segment
with product/service
 which it offers at a significantly lower cost
than competitors

 Use competitive strategy to combat 5
competitive forces in marketplace
 1. threat of new competitors
 2. bargaining power of suppliers
 3. bargaining power of customers
 4. substitute products
 5. rivalry within the industry

 Use IT to enact or counteract these forces
with respect to
› customers
› existing & potential competitors
› suppliers

 Erect barriers to entry:
 use IT to slow down new firms entering
market
› SABRE
› ASAP

 Change basis of competition
› novel IS can perhaps change the basis of
competition - help offer product/service with new
features
› e.g. delivery service allows customer to track
progress of package
› you are now differentiated from competition
› no longer compete just on price basis

 Deliver products with better value
 identify and track a market niche with IS that
you can serve better than others
 try to prevent substitution

 Introduce switching costs
› cost of switching to competitor
› deters customers from switching
› e.g. due to training and contracts, travel agents
unlikely to switch to different airline reservation
system

 Develop Alternatives
 use IS to maintain information on available
alternative sources of supply

 Communication
 Globalization and cultural gap
 Availability
 Creation of new types of jobs
 Cost effectiveness and productivity

 Unemployment and lack of job security
 Dominant culture
 Security issues
 Implementation expenses

 Transaction Processing Systems (TPS)
› Automate handling of data about business activities
(transactions)
 Management Information Systems (MIS)
› Converts raw data from transaction processing
system into meaningful form
 Decision Support Systems (DSS)
› Designed to help decision makers
› Provides interactive environment for decision making

 Expert Systems (ES)
› Replicates decision making process
› Knowledge representation describes the way an
expert would approach the problem
1.88

 A transaction process system (TPS) is an
information processing system for business
transactions involving the collection,
modification and retrieval of
all transaction data. Characteristics of a
TPS include performance, reliability and
consistency. TPS is also known
as transaction processing or real-
time processing

 Supports Operations
 Updates Operational Databases
 Examples:
› ATM Machine System – Banking Transactions
› Cash Register System – Point of Sale Transactions
› Accounting System – Checking Account Transactions
› Even Pay-per-view or OnDemand is a TPS

 Supports Management (duh?)
 Analysis & Reporting
 Charts, Graphs, Summary Tools
 Examples:
› SCT Banner – Managing College Information (Siena
uses it)
› Spreadsheet (Excel) – One of the first and most
basic
› Oracle's Corporate Performance Management

 Support Management
 What-if Analysis, Decision Modeling, Scenario
Building, Highly interactive, ad hoc.
 Examples
› Enterprise Decision Manager 2.0 Fair Isaac
Corporation
› AIMMS 3.6
 Most DSS’s are custom developed for specific
companies; very few out-of-the-box products.

 Supports high-level strategic management
 Provides critical info from other systems (MIS and
DSS).
 Portal Concept: one place with links to all information
 EIS’s integrate external information such as economic
developments and news about related markets and
competitors. Helps strategic decision making, not
necessarily tactical.
› Tactical – doing things the right way right
› Strategic – doing the right things

 Management information system, or MIS, broadly refers to
a computer-based system that provides managers with the
tools to organize, evaluate and efficiently manage
departments within an organization.
 In order to provide past, present and prediction
information, a management information system can
include software that helps in decision making, data
resources such as databases, the hardware resources of a
system, decision support systems, people management
and project management applications, and any
computerized processes that enable the department to run
efficiently.

 A system that provides information to support
managerial functions like planning, organizing,
directing, controlling.
 Collects information in a systematic and a
routing manner which is in accordance with a
well defined set of rules
 Includes files, hardware, and software and
operations research models of processing,
storing, retrieving and transmitting information
to the users.

 Manual Record Keeping Era (1940-1965)
› Electronic data processing
 Analysis Era (1965-1980)
 Knowledge Era (1980 onwards)
› Executive Information System
› Expert System (1980)
› Strategic Information System (1990)

 Facilitate the decision making process by providing
information in the proper time frame
 Provide required information at each level of
management to carry out their function
 Help in highlighting the critical factors to the closely
monitored for the successful functioning of
organization
 Support decision making in both structured and
unstructured problem environment
 Provide a system of people, device, procedure and
others for collecting storing retrieving and
transmitting to the user.

 Management Oriented
 Management Directed
 Integrated
 Common Data Flow
 Heavy Planning Element
 Ease of Use and Flexibility

 Management-oriented: The basic objective of MIS is to
provide information support to the management in the
organization for decision making.
 Management directed: When MIS is management-oriented,
it should be directed by the management because it is the
management who tells their needs and requirements more
effectively than anybody else.
 Integrated: It means a comprehensive or complete view of
all the subsystems in the organization of a company.
99

 Common data flows: The integration of different
subsystems will lead to a common data flow which will
further help in avoiding duplicacy and redundancy in data
collection, storage and processing.
 Heavy planning-element: The preparation of MIS is not
a one or two day exercise. It usually takes 3 to 5 years
and sometimes a much longer period.
 Subsystem concept: When a problem is seen in 2 sub
parts, then the better solution to the problem is possible.
100

 Common database: This is the basic feature of MIS to
achieve the objective of using MIS in business organizations.
 Computerized: MIS can be used without a computer. But the
use of computers increases the effectiveness and the
efficiency of the system.
 User friendly/Flexibility: An MIS should be flexible.
 Information as a resource: Information is the major
ingredient of any MIS.
101

 Provide relevant information for facilitating planning and timely
control
 Data is available in summarized form which minimize information
loading
 Ease in measuring performance helps in encouraging
decentralization in an organization
 Improve coordination as all departments are aware of course of
action or any change in plan
 Enhance quick, cheap and efficient communication
 Bring down linguistic, geographical and cultural boundaries.
 24*7 availability of information
 Automation helps in saving time and papers
 Creation of new type of jobs like computer programmer, system
analyzer, software and hardware developer etc

 Require constant monitoring of sensitive data
 Security issues like hacking always prevail
 Quality of output depends on quality of input
 Implementation of MIS is costly as requires hardware,
software and training of human resources
 Lack of flexibility to upgrade software
 Takes only quantitative data
 Increase unemployment
 Effectiveness decreases due to frequent change in top
management and their policies

Introduction;
IT is used in all business activities to be
Performed, business problems to be solved, & business
opportunities to be pursued.
As a business professionals, one has a specific
understanding of how ISs affects a business functions &
Appreciation of the major ways.

FUNCTIONAL
BUSINESS
SYSTEMS
MARKETING
IS
HRM
IS
FINANCE
ISACCOUNTING
IS
PRODUCTION/
Mfg IS

 Marketing is concerned with the planning,
promotion, & sale of existing products in existing
market.
 Business firms have increasingly tuned to IT to
help them to perform vital marketing functions in
the face of the rapid changes of today’s
environment.

Marketing IS
Interactive
marketing
Sales force
Automation
CRM
Sale
Management
Marketing
Research &
forecasting
Advertisement
&
Promotion
Product
Management

Banking is generally understood as a place where the financial
services are offered, viz checking, savings, & providing credit to
the customers.
The customers choose the bank mainly on the following 3 factors;
1. The ease of doing business
2. The quality of personnel & service
3. The range of the financial service
The MIS in banking industry revolves around this aspect. The
customer of the bank would like to know the status of the A/C
very fast to make decision on withdrawals or payments.
Hence the MIS is to be designed to identify, decide &
design a service strategy for offering a distinctive service to the
wide range of customers seeking a variety of service demand.
the following points should be taken care of while
designing an MIS for a bank

 Customer DB
1. Customer
2. Operator
3. Range of Service
4. Class of customers
5. Working Hours
 Service to the A/C holders
 Service for business promotions
 The index monitoring system
 Human resource upgrade

 IS today is used in almost all the
sectors apart from the sectors
mentioned above, it is also used
in Hospitals, hotel industry,
restaurants and so on.

 Top Down Approach
 Bottom Up Approach
 Integrative Approach

1. Define the objective of the organization,
environment, and the constraints under which it
operates
2. Identify the activities or functions for which
information would be required.
3. The crucial strategic and tactical decisions are also
to be defined and the decisions necessary to
operate the activities are specified
4. From the activities or functions and the decisions
to be made, the major information requirements
are ascertained.

5. Develop a model of information flow in the
organization which acts as a guide for
designing the information system. By using
the model at information flow various
information subsystem may be defined.
Organizational
Objectives
Key Management
Decisions
Information
Requirements
MIS
Design
Control

 Comprise each sub-system into various
modules. The selection of a module for a
developing system is made on the basis of the
priority assigned to them.
 The various sub-system and their modules are
coordinated to achieve the objective of
integration. The information system so
developed is viewed as a total system fully
integrated rather than as a collection of loosely
co-ordinated sub-system.

Organizational
Objectives
Information
System Design
Information
Requirement
Existing Computer
System
Key Management
Decision
Control
Evaluation
Buffer

 Th development of information system, for each life stream
system starts after identifying their basic transactions,
information file requirements and information processing
programs.
 After ascertaining the data/information requirements, files
requirements and processing programs for each life stream
system, the formation system for each is developed
 The next step is towards he integration of data kept in different
data files of each information system. The data is integrated
only after thoroughly examining various applications, files and
records. The integrated data enhances the sheer ability and
evaluability of the data base. It also ensures that uniform data
are being used by al programs and also provides added
capability for inquiry processing as well as adhoc requests for
reports

 After the databases are created, various planning and
decisions support models are introduced for supporting the
planning activities involved in management control.
Further these models are integrated to evolve model
bases. The models in the mode base facilitate and support
higher management activities. They are useful for analysis
of different factors to understand difficult situations and to
formulate alternative strategies and options to deal them.
 After the decisions models start functioning, in this step
the models are integrated into a model base having a
variety of models including regression analysis, operations
research model etc.

 Lastly, strategic planning models are added to
the information system. Now data (mainly
external) have to be collected and stored for
strategic planning activity. In this approach, the
system grows in response to the real needs of
users. The main disadvantage is that integration
or synthesis of various sub systems may need
to be redesigned due to the changing
requirements and new interfaces with other
sub-systems.

 This approach can overcome the limitations of
the above two approaches when used
objectively
 Integrative approach permits managers at all
levels to influence the design.
 Top management identifies the structure and
design of MIS suitable to the concern.
 This design is further presented to lower level to
suggest changes, additions or deflections and
return the design with their suggestions to the
top level for approval.

 Is as important as development of the
system.
 It needs to be carefully managed as well as
strong interaction with the client.
 There has to be full support and coordination
between client IS Dept and its functionaries.

 Implementation Plan
 Organizing the MIS Department
 Selection and procurement of Hardware
 Procurement of Software
 Creating the database
 Training the user
 Creating physical infrastructure
 Transition into new system

 Creating a master schedule of the
implementation activities
 Setting timelines for critical and non-critical
activities
 Identifying major bottlenecks and their
solutions
 Communications of the plan.

 Organization is necessary before the
implementation of the system.
 Job Analysis-Roles Defined
 Training
 Human Resources

 Preparation of the vendor list
 Preparation of RFP
 Request for proposal/bid to select vendor
 Evaluation of RFP
 Selection of vendor

 Procurement of Software
 Creating the database
 Training the user
 Creating physical infrastructure
 Transition into new system

 The systems development life
cycle (SDLC), also referred to as the
application development life-cycle, is a
term used in systems engineering,
information systems and software
engineering to describe a process for
planning, creating, testing, and deploying an
information system.

 Systems development life
cycle (SDLC) - a structured
step-by-step approach for
developing information
systems.

 System Planning
 System Analysis
 System Design and Development
 Systems implementation and testing
 Systems Operation, review and support

Figure 6.2
Important
Activities in the
Systems
Development Life
Cycle
page 219

 Determine if a new system is needed
 Three primary tasks:
› Define the problem
 By observation and interview, determine what
information is needed by whom, when, where and
why
› Suggest alternative solutions
› Prepare a short report

 Activities
› Define the system to be developed.
› Set the project scope.
› Develop the project plan including tasks,
resources, and timeframes.
Plan Analysis Design Develop Test Implement Maintain

6-133
 Planning phase - involves determining a solid plan for
developing your information system.
 The three of the most important activities involved
during the planning phase:
› Identify and select the system for development
› Set project scope
› Develop project plan

6-134
 Identify and select the system for development
› Key question: “What systems are required to support the
strategic goals of your organization?”
› KW generate proposals to build new information systems
when they are having a difficult time performing their jobs.
› Companies cannot develop all proposed IS, so they look
into the critical success factors.
 Critical success factor (CSF) - a factor simply critical
to your organization’s success.

6-135
 Once the system to be developed in defined, then
the project needs to be scoped.
 Set project scope - clearly defines the high-level
system requirements.
 It is a birds-eye-view of the project.
 Project scope document - a written definition of the
project scope and is usually no longer than a
paragraph.

6-136
 Developing a project plan is the final activity of the
planning phase.
 Project plan - defines the what, when, and who
questions of system development including all activities
to be performed, the individuals, or resources, who will
perform the activities, and the time required to complete
each activity.

6-137
 The project plan should include:
› Project milestones - represent key dates for which you need a
certain group of activities performed.
› Project manager - an individual who is an expert in project
planning and management, defines and develops the project
plan and tracks the plan to ensure all key project milestones are
completed on time.

6-138
 The analysis phase involves
› The end users
› The IT specialists
Working together
› To understand and
› Document
the business requirements for the system.

6-139
 Gather Business requirements - the detailed set of
knowledge worker requests that the system must meet
in order to be successful.
 Key activity = Gathering clearly defined business
requirements.
 Gathering business requirements = investigation.

6-140
 A useful way to gather system requirements is:
1. Joint application development (JAD) - knowledge workers
and IT specialists meet, sometimes for several days, to define
or review the business requirements for the system.
2. Requirements definition document – prioritizes the business
requirements and places them in a formal comprehensive
document.
3. Sign-off - the knowledge workers’ actual signatures indicating
they approve all of the business requirements.

6-141
 The primary goal of the design phase
› Build the technical architecture required to
support the system.
 This includes
› Design of the technical architecture
› Design system models.

6-142
 Technical architecture –
› Defines the hardware, software, and telecommunications equipment
required to run the system.
 The final architecture must meet you needs in terms of
› Time
› Cost
› Technical feasibility
› Flexibility

6-143
 It is important to ensure that the final
architecture meet
› Current system needs
› Future system needs

6-144
 Modeling - the activity of drawing a graphical
representation of a design.
 You model everything you build including
› Reports
› Programs
› databases

6-145
 There are many different types of modeling
activities performed during the design stage
› Graphical user interface (GUI)
 The interface to an information system.
 the ability to model the information system screens for an entire
system.
› Entity relationship diagram
› Data flow diagram
› Flowcharting

6-146
Figure 6.3
Graphical User
Interface (GUI)
Screen Design

6-147
 Development phase
› Take all of your detailed design documents from
the design phase and transform them into an
actual system.

6-148
 Activities during this phase include
› Coding programs
› Creating databases
› Deploying the telecommunications equipment
› Installing hardware and software
 In other words
› Build the technical architecture.
› Build the database and programs.

6-149
 Testing phase
› Verifies that the system works and meets all of
the business requirements defined in the
analysis phase.
 Test conditions - the detailed steps the
system must perform along with the
expected results of each step.

6-150
 Testing is critical
› Must have test plans
› Write the test conditions.
 Perform the testing of the system.

6-151
 Implementation phase
› Bringing the system into life by placing it in the organization
 During this phase
› You distribute the system to all of the knowledge workers and
they begin using the system to perform their everyday jobs.

6-152
 During this phase
› You distribute the system to all of the knowledge
workers and they begin using the system to
perform their everyday jobs.
› You create User documentation
 Highlights how to use the system.
› You perform training to the employees to use the
system

6-153
 Online training - runs over the Internet or
off a CD-ROM.
 Workshop training - is held in a classroom
environment and lead by an instructor.

6-154
 Maintenance phase
› It is the final phase of the system
development effort
› Monitor and support the new system to
ensure it continues to meet the business
goals.

6-155
 Once the system is in place you need to
provide support
› Build a help desk to support the system users.
› Provide an environment to support system
changes.

Foundation of information system

Foundation of information system

More Related Content

What's hot

Similar to Foundation of information system

More from RajThakuri

Recently uploaded

Foundation of information system