1. Introduction to System Analysis and Design
Hi students how are doing today
This is our third sequence in system analysis and design course
and today we will talk about Understanding The Business and Business Drivers for Today’s Information Systems
- Dr. Mahmoud Abu-Arra
- Mr. Ahmad Al-Ghoul

2. System Analysis and Design Introduction to SAD
Learning Objectives
Use profiles and models to understand business functions and operations
Describe kinds of companies
Explain the Business Drivers for Today’s Information Systems and their impacts on information systems
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System Analysis and Design Introduction to SAD

3. System Analysis and Design Introduction to SAD
Information systems must supports business and information needs
First you need to understand the business needs and the Business Drivers for Today’s Information Systems and their impacts on information systems, then you will build a business model to understand the specific operation and processes
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System Analysis and Design Introduction to SAD

4. Understanding The Business
Every business has its operations, rules and constraints. IT professionals must understand business operations to create successful systems.
For example a retail store, an internet auction, library, and hotel chain, have unique information system requirements. Even with the same business each company has its own rules, requirements, and constraint.
System analysts use a process called business process modeling to represent a company's operation and information needs. To do that the analyst needs.
Business Profile
Business Models
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System Analysis and Design Introduction to SAD

5. Understanding The Business
Business Profile
Is an overview that describes the company's overall functions, process, organization, services, customers, suppliers, competitors, constraints, rules, and future directions.
The analysts must study all that in addition to interactivity among the firms information systems, specialized information needs, and future expected growth.
Armed with a business profile, the analyst then creates a series of business models
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System Analysis and Design Introduction to SAD

6. Understanding The Business
Business Models
Business models make it easier for managers and system analysts to understand day-to-day business operation
Is a graphical representation of one or more business processes that a company performs.
Complex business operations require a series of linked models in order to show the overall picture.
Business models support communication between analyst and system users to determine if the system achieve the user requirements
A business process describes a specific set of transactions, events, tasks, and results
Look to the figure which shows a business model called handle sales order.
Notice that the model represents an event, three separate business processes, and result
[1]
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System Analysis and Design Introduction to SAD

7. Understanding The Business
New kinds of companies
Traditionally, Companies are classified based on their main activities to:
Production-oriented: the companies who manufactured and sell products such as computers, furniture, clothes and so on
Service-oriented: primarily offer services like information, or sell goods produced by others.
Ok so we need to understand the types of company’s
Now a days we have new kind and classification of companies
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System Analysis and Design Introduction to SAD

8. Understanding The Business
New kinds of companies
Now a days IT industry is a growing sector in business world, many companies offer a mix of products, services, information, and technical resources to a customer.
The newest company category is the Internet-dependent firm, often described as a ( Dot-com (.com) ) company because its primary business depends on the Internet rather than a traditional business channel, Like Yahoo.com.
At the other end of the spectrum are traditional companies, sometimes called brick-and-mortar companies because they conduct business from physical locations.
Many of the traditional companies have added Web-based marketing channels to increase sales and serve customers more effectively
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System Analysis and Design Introduction to SAD

9. Business Drivers for Today’s Information Systems
Globalization of the Economy
Impact of the internet
Security and Privacy
Collaboration and Partnership
Knowledge Asset Management
Continuous Improvement and Total Quality Management
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System Analysis and Design Introduction to SAD

10. Business Drivers for Today’s Information Systems
Globalization of the Economy
The biggest players in today’s global marketplace are multinational corporations
Global Economy brings
New and expanded international markets
New international competitors
Impact on information systems
Require support of multiple languages, currency exchange rates, business cultures
Require consolidation of international data
Demand for players who can communicate, orally and in writing, with management and users that speak different languages
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System Analysis and Design Introduction to SAD

11. Business Drivers for Today’s Information Systems
Impact of the Internet
The Internet can be used for any business application that involves data communication, including both communication inside the firm and with the environment
Unlike proprietary networks, the Internet can be used with any computer platform without any special effort to access the network
The Internet also makes it possible to transmit a wider variety of media than can be handled over most conventional networks
Internet offers
E-commerce
Buying and selling of goods and services over the internet
E-Business
The use of the internet to conduct and support day-to-day business activities
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System Analysis and Design Introduction to SAD

12. Business Drivers for Today’s Information Systems
Impact of the Internet
Internet-based commerce
Called E-Commerce (I-Commerce), open a wide area for new systems development called Internet-based system development and add a new functions for a traditional information systems. E-Commerce includes several sectors the main two are:
B2C (Business-to-Consumer)
B2B (Business-to-Business),
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System Analysis and Design Introduction to SAD

13. Business Drivers for Today’s Information Systems
Impact of the Internet
B2C (Business-to-Consumer)
A commercial exchange (e.g. products or services) between businesses and consumers conducted over the internet.
B2C commerce is changing traditional business models, that means more demand for system analysts, designer, and programmers to produce efficient, attractive Web-based information systems.
Until now B2C transactions accounted for small portion of total retail sales, but B2C activity is expected to grow significantly.
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System Analysis and Design Introduction to SAD

14. Business Drivers for Today’s Information Systems
Impact of the Internet
B2B (Business-to-Business), A commercial exchange (e.g. products or services) between businesses, typically enabled by the internet or electronic means.
The volume of B2B transactions is many times greater than B2C transactions, about 94% of electronic commerce is B2B leaving 6% for B2C
B2B allows companies to access the global market place, B2B is especially important to firms under pressure to reduce costs
B2B enables smaller suppliers to contact large customers
On an industry-wide scale, B2B sites exist where buyers, seller, distributors, and manufacturers transact business, exchange information, and collaborate
As B2B volume increased, the development of extensible markup language (XML) enabled company-to-company traffic to migrate to the Internet
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System Analysis and Design Introduction to SAD

15. Business Drivers for Today’s Information Systems
Impact of the Internet
extensible markup language (XML)
XML is a data description language that allows Web-based communication between different hardware and software environments
XML is flexible because it is concerned with the data itself rather than the output format
In XML data description is not linked to output formatting, and this is just the opposite of HTML (hypertext markup language), where the language controls the way the information is displayed on a Web browser.
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System Analysis and Design Introduction to SAD

16. Business Drivers for Today’s Information Systems
Impact of the Internet
The Path to Electronic Commerce
Implementing an e-commerce system includes a significant risk of failure
The first step is a commitment to implement the system as part of a strategic business plan to use e-commerce to achieve competitive advantage
The firm then gathers business intelligence to understand the potential role each environmental element will play
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System Analysis and Design Introduction to SAD

17. Business Drivers for Today’s Information Systems
Impact on Information Systems
Most new ISs designed for internet
Client operating system less important as only client-side software is a web browser
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System Analysis and Design Introduction to SAD

18. Business Drivers for Today’s Information Systems
Security and Privacy
Security
How will the business continue in the event of a security breach, terrorist attack, or disaster?
How can the business protect its digital assets from outside threats?
Privacy
Consumer demands for privacy in e-commerce transactions
Government requirements
Impact on information systems
Need to incorporate stringent security and privacy controls
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System Analysis and Design Introduction to SAD

19. Business Drivers for Today’s Information Systems
Collaboration and Partnership
Organizations seek to break down the walls that separate organizational departments and functions.
Organizations collaborate with outside business partners and even competitors.
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System Analysis and Design Introduction to SAD

20. Business Drivers for Today’s Information Systems
Knowledge Asset Management
Data
Raw facts about an organisation and its business transactions
Information
Data that has been refined and organised by processing and purposeful intelligence
Knowledge – data and information that is further refined based on the facts, truths, beliefs, judgments, experiences, and expertise of the recipient.
Recognizes that data, information, and knowledge are critical business resources
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System Analysis and Design Introduction to SAD

21. Business Drivers for Today’s Information Systems
Continuous Improvement and Total Quality Management
Business Processes
Tasks that respond to business events (e.g., an order). Business processes are the work, procedures, and rules required to complete the business tasks, independent of any information technology used to automate or support them.
Continuous process improvement (CPI)
The continuous monitoring of business processes to effect small but measurable improvements in cost reduction and value added.
Total quality management (TQM)
Comprehensive approach to facilitating quality improvements and management within a company
This is the end of our sequence today hope you enjoy it
And now you can go to the formative assessment
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System Analysis and Design Introduction to SAD

22. System Analysis and Design Introduction to SAD
Sequence Summary
A systems analysts starts with a business profile, which is an overview of company functions, and then he creates a series of business models that represent business processes, which describe specific transactions, events, tasks, and results
Companies are production oriented, service oriented, or a combination of the two
The newest category is the Internet-dependent firm, which relies solely on Internet-based operations.
Business drivers for today’s information systems are globalization of the Economy, electronic Commerce and Business, security and Privacy, collaboration and Partnership, knowledge Asset Management, continuous Improvement and Total Quality Management, business Process Redesign
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System Analysis and Design Introduction to SAD

23. System Analysis and Design Introduction to SAD
Sequence Summary
In this Sequence we have
Described how systems analysis and design in organizations has changed over the past 40 years
Defined the terms system and information system
Described the characteristics of system
Described information system components
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System Analysis and Design Introduction to SAD

24. System Analysis and Design Introduction to SAD
Sequence Summary
In this Sequence we have
Distinguished between business profile and business model
Described the various types of companies
Described the major business drivers for today’s information systems
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System Analysis and Design Introduction to SAD

25. System Analysis and Design Introduction to SAD
Reference
[1] System Analysis and Design, Sixth Edition
Authors: Gary B. Shelly, Thomas J. Cashman and Harry J. Rosenblatt ,
Publisher: SHELLY CASHMAN SEWIES.
[2] Modern Systems Analysis and Design Third Edition
Authors: Jeffrey A. Hoffer , Joey F. George, Joseph S. Valacich
Publisher: prentice hall
[3] Systems analysis and design methods
Authors: Jeffrey L.; Bentley, Lonnie D., Dittman, Kevin
Publisher: McGraw-Hill
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System Analysis and Design Introduction to SAD