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

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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] Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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), Avicenna System Analysis and Design Introduction to SAD

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. Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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. Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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. Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD

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 Avicenna System Analysis and Design Introduction to SAD