2010 FALLEC Websites Development1 System Development Dr. John Sum Institute of Technology Management National Chung Hsing University

2010 FALL EC Websites Development 2 Reference K.Laudon and J.Laudon, Management Information Systems, 9th ed., Prentice Hall, 2006.

2010 FALL EC Websites Development 3 OUTLINES Websites, business processes and IS Review of IT and IS Changes in business and information management Overview of system development Remarks in system development Exemplar website development

2010 FALL EC Websites Development 4 Business Processes, IS/Websites and IT

2010 FALL EC Websites Development 5 Example 1: Travelocity.COM

2010 FALL EC Websites Development 6 Example 1: Travelocity.COM Services support  Car rental information  Room rate enquiries, on-line hotel room booking  Flight ticket enquires, on-line flight ticket booking  Tour schedule enquires, on-line tour booking Users  General public (which customer segment)  Administration (which departments, which roles)  Technical support (Webmaster, etc)  Suppliers?

2010 FALL EC Websites Development 7 Example 2: Global-Trade.COM

2010 FALL EC Websites Development 8 Example 3: iSteelAsia.COM

2010 FALL EC Websites Development 9 Example 4: Forbes.COM

2010 FALL EC Websites Development 10 Website and Information System A website is simply a part of the company ’ s information system K.Laudon and J.Laudon, Management Information Systems, 9th ed., Prentice Hall, 2006 Definition: An information system is a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization.

2010 FALL EC Websites Development 11 Processes, IS and IT Information technologies provide the infrastructure and support to build an information system. Information Systems Information Technologies Business Processes

2010 FALL EC Websites Development 12

2010 FALL EC Websites Development 13 Review of IT and IS

2010 FALL EC Websites Development 14 Information Technologies Software technologies  Including operating systems and DBMS  MS Words improves the quality of management reports  Window XP controls operation of a computer  JDK provides platform for developing web application Hardware technologies  Mobile phone support mobile data transfer  provides the standard for wireless local area networks  USB flash memory provides an alternative way to store information

2010 FALL EC Websites Development 15 Information Technologies System development  Object-oriented development  Component-based development  Unified modeling language Other technologies  Artificial Intelligence  Parallel processing architecture  Optimization algorithm

2010 FALL EC Websites Development 16 Information Technologies Bar code scanner (IO) Overhead project (IO) Camera (IO) Telephone (IO, Com.) FAX machine (IO, Com.) Computer (Terminal) Calculator (Calculation) Palm/PDA (IO, DB) Mobile phone (Com.) Optic fibers (Com.) Virtual private network (Com.) Internet (Com) Web technology (System) Mobile agent (System) Rational Rose UML (Development)

2010 FALL EC Websites Development 17 Information Technologies Prog. Lang.  Assembly  C/C++  Java JavaScript Java Servlet/Applet Java Network Programming  Visual Basic/VBScript  Perl  HTML/DHTML/XML Operating Systems  MS Window  Unix  Linux Database System  IBM DB2  MS Access  Oracle  Sybase  MySQL

2010 FALL EC Websites Development 18 Information Technologies The world is moving. So, many new technologies are coming.  Mobile computing  Grid computing  P2P networks (BT, Gnutella, SKYPE)  Chinese computing  Biometric  Autonomic computing Search IBM.COM for more

2010 FALL EC Websites Development 19 Information Technologies Mobile Computing  A type of computing model in which the computers can be networked together even the computers are moving anywhere.  How to connect? How to share resource? Autonomic computing  A type of computing model in which the system is self-healing, self-configured, self-protected and self-managed.

2010 FALL EC Websites Development 20 Information Technologies Each technology has its own limitation  Security problems  Programming difficulties  Training – programmer or user  Version problem – Window 95/98/2000/XP  User account support  Transparency – Window versus Linux  Maintenance and Support

2010 FALL EC Websites Development 21 Information Technologies Development team should have enough knowledge to select the appropriate technologies for the system. Does a development team should learn all these technologies, such as Java, Ajax, RSS Feed, etc.?

2010 FALL EC Websites Development 22 Types of Information Systems By management level (Conventional Approach)  Transaction processing system (operational)  Management information system  Decision support system  Executive information system (Strategic) Education levels and computer usage skills?

2010 FALL EC Websites Development 23 Types of Information Systems

2010 FALL EC Websites Development 24 Types of IS: Conventional

2010 FALL EC Websites Development 25 Types of IS: Contemporary

2010 FALL EC Websites Development 26 Types of IS: Contemporary Where should the “website” (or websites) be located? What business process (or processes) should it support? Business operations = Business logic = Business processes. All three terms will be used interchangeably.

2010 FALL EC Websites Development 27 Conventional VS Contemporary Conventional  Designed in a way to fit in the operations of a business unit.  Different department will have a different system.  Scope of the system is smaller.  Analysis and design are simpler.  Easy to maintain. Contemporary  Designed in a way to fit in the operations of the whole enterprise.  Processes or services oriented.  Scope of the system is huge.  Analysis and design are complicated ?  Difficult to maintain ?

2010 FALL EC Websites Development 28 Changes in business & information management

2010 FALL EC Websites Development 29 Changes in Information Management Factors leading to the changes  Business environment  Management Practice  Technologies  Disaster  Misc These factors are always interrelated.

2010 FALL EC Websites Development 30 Changes in Information Management Business environment  Moving towards Asia, then SE Asia, Eastern Europe, Latin America  Global outsourcing, implying the need of SCM Management  Total quality management  Customer satisfaction  Cost-effective  Service level

2010 FALL EC Websites Development 31 Changes in Information Management Business environment  Where does the business move?  Where are the markets?  Where are the manufacturers? Management  What are the next management focus?

2010 FALL EC Websites Development 32 Changes in Information Management Technologies  Wired to wireless  Powerful PC, notebook, mobile phone, PDA  iPhone, iPad Disaster  911 Attack  Earthquake  Tsunami Misc  Energy, Water, Air, Food shortage  Global warming  Social responsibility

2010 FALL EC Websites Development 33 Changes in Information Management Implications  Change in the information requirement Hourly data versus daily data Multiple languages  Change in culture and habit of using computer Hardcopy document versus web document Fixed line telephone versus Internet phone (Skype)  Change in the volume/speed of information flow  Change in the cost structure of a company

2010 FALL EC Websites Development 34 Changes in Information Management Implications  Business processes (e.g. supply chain) are defined in a manner of cross-boundary, and agile Customer-oriented thinking (customer controls everything) Customers and suppliers are users of the information Process definitions are getting complex System scope is increasingly complicated Reusable module is preferred  Need of disaster recovery plan Data backup Server backup

2010 FALL EC Websites Development 35 Changes in Information Management Implications  Corporate social responsibility Green-design System optimization  Technologies are getting cheaper  Profit margin is decreasing (Don’t expect too much on earning)  Install new system or using new technology is not for making money, just for sustainability (survival).

2010 FALL EC Websites Development 36 Business Environment

2010 FALL EC Websites Development 37 Business Environment (70 ’ s – 90 ’ s)

2010 FALL EC Websites Development 38 Business Environment (00 ’ s – Present)

2010 FALL EC Websites Development 39 Business Environment (Beyond)

2010 FALL EC Websites Development 40 Business Environment (Beyond)

2010 FALL EC Websites Development 41 Technology Change How much you know about the following buzzwords:  EMU E-Commerce E-Business, M-Business M-Taiwan, U-Taiwan  Distributed Computing Mobile Computing Peer-2-Peer Computing Grid Computing Cloud Computing  Autonomous Computing

2010 FALL EC Websites Development 42 What Have Not Changes? System is still in a supporting role (not a decision role) of a company. System itself does not accounted for making money, but the products or services that the company provide. System itself does not accounted for profitable, but the business processes that the system support.

2010 FALL EC Websites Development 43 Overview of Systems Development

2010 FALL EC Websites Development 44 Key Concepts in Systems Development Initiating a systems development  Participants involved in a SD project  Reasons for having a new system  File the request for budgeting and development  The request document should include Reasons for having the new system, modification of the existing system Management team for the system development Department in charge of the system The fit of the system to the company IS strategy Expected budget

2010 FALL EC Websites Development 45 Key Concepts in Systems Development Information systems planning  Senior management based on the company need to evaluate and prioritize the requests from different departments  For each request, the proposal should include High level system requirement Feasibility analysis (Financially and technologically) Selection of system development model Objectives and schedule for SD  If the request is approved, then schedule when to release the budget and start the development  If the request is pending to approve (under review), the proposal will be filed for next meeting.

2010 FALL EC Websites Development 46 Key Concepts in Systems Development Build the system (System Development)  (After budget has been approved)  Detail analysis – Precise system requirements (user accepted), a list of user acceptance tests  System design – modules, interfacing amongst modules, hardware requirements, programming language, OS  Coding  In-house testing – unit test, system test, stress test  User acceptance test

2010 FALL EC Websites Development 47 Participants in Systems Development

2010 FALL EC Websites Development 48 Participants in Systems Development Stakeholders  Individuals who either themselves or through the organization are beneficiaries of the systems development effort. Users  Individuals who interact with the system regularly System Analyst  Professional who specializes in analyzing and designing business systems. Programmers  Individual responsible for modifying or developing programs to satisfy user requirements.

2010 FALL EC Websites Development 49 Application of IT Business Process Staff, Clients Management Team Suppliers Business Process

2010 FALL EC Websites Development 50 Reasons to Initiate a Development Project

2010 FALL EC Websites Development 51 Information Systems Planning The translation of strategic and organizational goals into systems development initiatives. Creative Analysis The investigation of new approaches to existing problems. Critical and difficult task Planning What kind of person is capable to do this translation?

2010 FALL EC Websites Development 52 Critical Analysis The unbiased and careful questioning of whether system elements are related in the most effective or efficient ways. Critical and difficult task One approach, not universal Planning

2010 FALL EC Websites Development 53 Planning Design objectives  Performance objectives Quality or usefulness of the output The speed at which the output is generated  Cost objectives Development costs Costs related to the uniqueness of the system application Fixed investments in hardware and related equipment On-going operating costs of the system

2010 FALL EC Websites Development 54 Planning Challenges  We would like to have a website for IEC.  We would like to have a website for IEC, which is similar to the following:  We would like to have a website for IEC, with design, outlook and functions similar to the above.

2010 FALL EC Websites Development 55 System Development Model Waterfall model Spiral Model Component-based Development Prototyping Rapid Application Development Others

2010 FALL EC Websites Development 56 Systems Investigation Problems and opportunities are identified Systems Analysis Existing systems and work processes are studied Systems Design Defines how the information system will do what it must do to solve the problem. Waterfall Model

2010 FALL EC Websites Development 57 Systems Implementation System components are assembled and the new or modified system is placed into operation. Systems Maintenance and Review Ensures the system operates and is modified to keep up with business changes. Waterfall Model

2010 FALL EC Websites Development 58 Spiral Model

2010 FALL EC Websites Development 59 Spiral Model

2010 FALL EC Websites Development 60 Component-based Model

2010 FALL EC Websites Development 61 Operational Prototype Accesses real data files, edits input data, makes necessary computations and comparisons, and produces real output. Nonoperational Prototype A mockup or model that includes output and input specifications and formats. Prototyping

2010 FALL EC Websites Development 62 Rapid Application Development

2010 FALL EC Websites Development 63 Factors Affecting System Development Resource Constraint Analysis Project Schedule and Tracking Systems Configuration Management Selected Project Management Software Packages Use of Computer-Aided Software Engineering (CASE) Tools Systems Investigation Requirements Analysis Systems Analysis

2010 FALL EC Websites Development 64 Project Schedule and Tracking Use of project management tools  Schedule  Milestone  Deadline  Critical path  Program Evaluation Review Technique (PERT)  Gantt chart

2010 FALL EC Websites Development 65 Gantt Chart

2010 FALL EC Websites Development 66 Systems Investigation Identify potential problems and opportunities and consider them in light of the goals of the company. It is the second round analysis. The first round analysis has been conducted during system planning.

2010 FALL EC Websites Development 67 Systems Investigation Feasibility Analysis

2010 FALL EC Websites Development 68 Systems Investigation Report  A report that summarizes the results of the systems investigation and the process of feasibility analysis and recommends a course of action.  The investigation is usually conducted by a system investigation team and a steering committee.  Steering committee is an advisory group consisting of senior management and users from the IS department and other functional areas. Systems Investigation

2010 FALL EC Websites Development 69 Table of Contents for a Systems Investigation Report Systems Investigation

2010 FALL EC Websites Development 70 Requirements Analysis  It is the third round analysis.  An assessment used to determine the need of the users, the stakeholders, and the organization.  Converting organizational goals into systems requirements Requirement Analysis

2010 FALL EC Websites Development 71 Systems Analysis External and Internal Sources of Data It is the forth and the last round analysis. The analysis must be very precise. The results will be used in system design.

2010 FALL EC Websites Development 72 Data Collection  To understand what exactly the users needs  What data/information should be processed in the system, and what sort of interface design the users expect. Steps in Data Collection Systems Analysis

2010 FALL EC Websites Development 73 Techniques  Structured Interview  Unstructured Interview  Direct Observation  Questionnaires  Statistical Sampling Steps in Data Collection Systems Analysis

2010 FALL EC Websites Development 74 Data Analysis  Manipulating the collected data so that it is usable for the development team members who are participating in systems analysis. Data Modeling A commonly accepted approach to modeling organizational objects and associations that employ both text and graphics. Activity (Process) Modeling A method to describe related objects, associations, and activities. Data Flow Diagram A diagram that models objects, associations, and activities by describing how data can flow between and around them. Systems Analysis

2010 FALL EC Websites Development 75 Entity-Relationship Diagram (ERD) Data Flow Diagram (DFD) Semantic Description of a Business Process

2010 FALL EC Websites Development 76 Application Flowcharts Charts that show relationships among applications or systems. Application Flowchart

2010 FALL EC Websites Development 77 Grid Charts A table that shows relationships among the various aspects of a systems development effort. Grid Charts

2010 FALL EC Websites Development 78 User Interface

2010 FALL EC Websites Development 79 User Interface

2010 FALL EC Websites Development 80 User Interface

2010 FALL EC Websites Development 81 Systems Analysis Report Strength and weaknesses of existing system from stakeholders’ perspective. User/stakeholder requirements for the new system. Organizational requirements. Description of what new information systems should do to solve the problem

2010 FALL EC Websites Development 82 Systems Analysis Report

2010 FALL EC Websites Development 83 Remarks on System Development

2010 FALL EC Websites Development 84 Major Problems in SD Communication gaps between the user (non- IT) and the developer (IT)  No common language  Lack of IT knowledge (non-IT)  Lack of business sense (IT)  Lack of mutual trust  Lazy

2010 FALL EC Websites Development 85 Solutions User and developer should have a common ground knowledge  General and essential IT knowledge  General and essential business knowledge Patient Quality assurance process

2010 FALL EC Websites Development 86 Technically How? Spend more time on requirement analysis Documentation  Project plan  Quality plan  Analysis model  Design model  Testing plan  Project schedule  User manual  Maintenance manual

2010 FALL EC Websites Development 87 Who? Requirement/System analysis  Director, department manager, operational staff, IT manager & programmer System design  Department manager, IT manager & programmer System Implementation  Department manager, operational staff, IT manager & programmer System Maintenance & Review  Operational staff & programmer

2010 FALL EC Websites Development 88 Road map (1) Service model  Define the products or services to be provided by the company.  Identify target customers  Identify suppliers

2010 FALL EC Websites Development 89 Road map (2) Revenue model  Evaluate the size of the customer bases for each product or service.  Expected earning of each product or service  Might need to analysis the cumulative figures and presented in quarterly or yearly basis.

2010 FALL EC Websites Development 90 Road map (3) Business process model  Interaction amongst customers, your company and the suppliers  Identify the roles (persons) who will take part in each operation, such as data entry staff, customer service staff, clerk, department manager, and so on.  Optimize the business processes  Refine IS requirement model if necessary

2010 FALL EC Websites Development 91 Road map (4) IS requirement model  Identify which tasks within these operations can be replaced by using IT  Refine business model if necessary  Identify the users of the system

2010 FALL EC Websites Development 92 Road map (4) Cost model  Investment on the entire project  Staff salary, rental fee, electricity & water bills, insurance/pension  IT equipments, leased line subscription fee, maintenance cost  Might need to analysis the cumulative figures and presented in quarterly or yearly basis.

2010 FALL EC Websites Development 93 Road map (6) Profit & Lost analysis  In quarterly or yearly basis  Identify when is the break-even point

2010 FALL EC Websites Development 94 Road map, why? Traceable analysis model If there is any change on the service model, IS requirement model, the effects can easily be identified.

2010 FALL EC Websites Development 95 Effort Estimates Planning Analysis Design Implementation Industry Standard For Web15% 20% 35% 30% Applications Time Required in Person Months

2010 FALL EC Websites Development 96 Exemplar Website Development

2010 FALL EC Websites Development 97 An eBay-like website for on-line auction

2010 FALL EC Websites Development 98 eBay-like website for on-line auction

2010 FALL EC Websites Development 99 eBay-like website for on-line auction

2010 FALL EC Websites Development 100 eBay-like website for on-line auction

2010 FALL EC Websites Development 101 eBay-like website for on-line auction

2010 FALL EC Websites Development 102 Do you really understand!

2010 FALL EC Websites Development 103 Review Questions Select one website from Travelocity.COM, Global- Trade.COM, iSteelAsia.COM and Forbes.COM and describe the underlying information technologies being used to build that website. What is the definition of an information systems? What are the differences between a website and an information systems? What are the roles of “network technologies” playing in business information system?

2010 FALL EC Websites Development 104 Review Questions Describe in your own words  (1) why development team should have enough knowledge to select the appropriate technologies for the system, and  (2) should a development team learn all the latest technologies? With an aid of diagrams, explain the differences between an information system that is followed by conventional and contemporary design approaches. Describe what Asia business environment has been changing since 1980’s, and its affect on the requirement of an information system.

2010 FALL EC Websites Development 105 Review Questions Describe in details the roles and responsibilities of each participant in a system development project? Describe the purposes, the similarities and differences amongst creative analysis, critical analysis, feasibility analysis, requirement analysis, system analysis. Describe what is waterfall model and the limitation of such development approach.

2010 FALL EC Websites Development 106 Review Questions With an aid of diagrams, describe in detail any 3 development approaches, and state their differences. State any five reasons to initiate a development project. With an aid of diagrams, describe the relationships amongst business processes, information systems and information technologies.

2010 FALL EC Websites Development 107 Review Questions In system analysis, data are collected for further analyzed. Describe in detail the techniques for which the data are collected, and in what situations the techniques can be applied. If necessary, you can add examples to help your discussion. Data flow diagram is an analysis model describing the how data is processed.  Describe, with an example, what are the four components in a DFD.  Describe in detail, step by step, how data flow diagrams are obtained.

2010 FALL EC Websites Development 108 Review Questions DFD, application flowchart, grid charts and screen layouts are four analysis models obtained after system analysis. Describe what are the purposes to obtain such models. Describe what are the tentative contents that should be included in the System Investigation Report and the System Analysis Report. In the Road Map for system development, describe in detail what are the six issues that a system developer could follow in order to achieve a traceable analysis model.