1. Chapter 1

2. Chapter Objectives
Discuss the impact of information technology on business strategy and success
Define an information system and describe its components
Use profiles and models to understand business functions and operations
Explain how the Internet has affected business strategies and relationships
Identify various types of information systems and explain who uses them 3

3. Chapter Objectives
Explain systems development tools, including modeling, prototyping, and CASE tools
Distinguish between structured analysis and object-oriented methodology
Describe the systems development life cycle
Discuss the role of the information technology department and the systems analysts who work there 3

4. 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 4

5. The Impact of Information Technology
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

6. The Impact of Information Technology
The Future of IT
Accounted for almost 30 percent of economic growth in 2003
Online population worldwide increased 106 percent between 4

7. 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 4

8. 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 4

9. 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 12

10. Information System Components
Hardware
Moore’s Law
Software
System software
Network operating system
Application software
Enterprise applications
Horizontal system
Vertical system 13

11. Information System Components
Data
Is the raw material that an information system transforms into useful information
Tables
Linking 15

12. Information System Components
Processes
Define the tasks and business functions that users, managers, and IT staff members perform to achieve specific results
People
Users, or end users, are the people who interact with an information system, both inside and outside the company 16

13. Understanding The Business
Business Profile
Business Models
Business models
Business process
BPR (business process reengineering) 9

14. Understanding The Business
New Kinds of Companies
Companies are classified based on their main activities:
Product-oriented
Service-oriented
Brick-and-mortar
Dot-com (.com) or Internet-dependent 18

15. Impact of the Internet E-Commerce (I-Commerce)
B2C (Business-to-Consumer)
B2B (Business-to-Business)
EDI, XML, HTML
Web-Based Development
WebSphere, .NET
Web services 18

16. 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 19

17. How Business Uses Information Systems
Today, it makes more sense to identify a system by its functions, rather than by users
Enterprise computing systems
Transaction processing systems
Business support systems
Knowledge management systems
User productivity systems 20

18. How Business Uses Information Systems
Enterprise computing systems
Support company-wide operations and data management requirements
Enterprise resource planning (ERP) 21

19. How Business Uses Information Systems
Transaction processing systems
Efficient because they process a set of transaction-related commands as a group rather than individually 22

20. 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 23

21. How Business Uses Information Systems
Knowledge management systems
Called expert systems
Simulate human reasoning by combining a knowledge base and inference rules
Many use fuzzy logic 24

22. 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 25

23. Information System Users and Their Needs
A systems analyst must understand the company’s organizational model in order to recognize who is responsible for specific processes and decisions and to be aware of what information is required by whom 27

24. Information System Users and Their Needs
Top managers
Middle Managers and Knowledge Workers
Supervisors and Team Leaders
Operational Employees
Strategic plans 27

25. Systems Development Tools and Techniques
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

26. Systems Development Tools and Techniques
Modeling
Used to describe and simplify an information system:
Business model
Requirements model
Data model
Object model
Network model
Process model

27. Systems Development Tools and Techniques
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

28. Systems Development Tools and Techniques
Computer-Aided Systems Engineering (CASE) Tools
Framework for systems development and support a wide variety of design methodologies
CASE tools

29. Systems Development Methods
Structured analysis and object-oriented analysis are both popular methodologies for developing computer-based information systems
A systems analyst should understand the alternative methodologies and their individual strengths and weaknesses

30. Systems Development Methods
Structured Analysis
Uses a set of process models to describe a system graphically
Systems development life cycle (SDLC)

31. Systems Development Methods
Object-oriented (O-O) analysis
O-O analysis combines data & processes into objects
Object is a member of a class
Class is a collection of similar objects
Objects possess properties
Methods change an object’s properties
Messages request specific behavior or information from another object

32. Systems Development Methods
Joint Application Development and Rapid Application Development
JAD – Team based fact finding
RAD – compressed version of the entire process
Other development methodologies
Microsoft Solutions Framework (MSF)

33. The Systems Development Life Cycle
SDLC used to plan and manage the systems development process
It includes the following steps:
Systems planning phase
Systems analysis phase
Systems design phase
Systems implementation phase
Systems operation, support, and security phase
Deliverable or end product 30

34. The Systems Development Life Cycle
Traditionally pictured as a waterfall model, but is also presented as an interactive model depicting real world practice and the constant dialog among users, managers, and systems developers 30

35. The Systems Development Life Cycle
Systems planning
Purpose is to identify the nature and scope of the business opportunity or problem
Systems request – begins the process & describes problems or desired changes
Systems planning includes preliminary investigation whose key part is a feasibility study 32

36. The Systems Development Life Cycle
Systems Analysis
Purpose is to build a logical model of the new system
First step is requirements modeling, where you investigate business processes and document what the new system must do
End product is the system requirements document 33

37. The Systems Development Life Cycle
Systems Design
Purpose is to create a blueprint that will satisfy all documented requirements
Identify all outputs, inputs, and processes
Avoid misunderstanding through manager and user involvement
End product is systems design specification 34

38. The Systems Development Life Cycle
Systems Implementation
New system is constructed
Write, test, & document programs
File conversion occurs
Users, managers, IT staff trained to operate and support the system
Systems evaluation performed 35

39. The Systems Development Life Cycle
Systems operation, support, and security
New system supports operations
Maintenance changes correct errors or meet requirements
Enhancements increase system capability
Well-designed system will be secure, reliable, maintainable, and scalable
SDLC ends with system replacement 36

40. Systems Development Guidelines
Planning
Involve users throughout the development process
Listening is very important
Create a time table with major milestones
Identify interim checkpoints
Remain flexible
Develop accurate cost and benefit information 37

41. Information Technology Department
The information technology (IT) department develops and maintains a company’s information systems
The IT group provides technical support 41

42. Information Technology Department
Application Development
Team may include users, managers and IT staff members
Systems Support and Security
Provides hardware and software support
User Support
Provides users with technical information, training, and productivity support
Help desk 41

43. 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
Design and construction of Web pages and presence
Important for e-commerce
Webmaster 41

44. 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 the work 42

45. The Systems Analyst Position
Responsibilities
Translate business requirements into practical IT projects to meet needs
Required Skills and Background
Solid communication skills and analytical ability 42

46. The Systems Analyst Position
Certification
Professional credential
Career Opportunities
Job titles
Company organization
Company size
Corporate culture
Salary, location, and future growth 42

47. Chapter Summary
IT is a combination of hardware and software that support business
The essential components of an information system are hardware, software, data, processes, and people
Companies are product-oriented, service-oriented, or a combination of the two 49

48. Chapter Summary
Organization structure usually includes levels. Each level has different responsibilities and information needs
Systems analysts use modeling, prototyping, and CASE tools. Modeling produces a graphical representation of the process, prototyping involves creation of an early working model, and CASE tools assist in various systems development tasks 49

49. Chapter Summary
The Systems Development Life Cycle (SDLC) consists of five phases: systems planning, systems analysis, systems design, systems implementation, and systems operation, support, and security
Systems analysts need a combination of technical and business knowledge, analytical ability, and communication skills
Chapter 1 Complete 49