1. Chapter 1 The Value of Systems Analysis and Design Chapter 1 The Value of Systems Analysis and Design Prof. Joon Woong Lee Chonnam National Univ. Industrial Eng. IIS Lab.

2. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Chapter Preview and Objectives System analysts: the key players in systems analysis and design You will understand the context for systems analysis and design methods when you can Define information system and name seven types of information system applications Identify different types of stakeholders who use or develop information systems, and give examples of each Define the unique role of systems analysts in the development of information systems Identify those skills needed to successfully function as an information system analyst Describe current business drivers that influence information systems development Describe current technology drivers that influence information systems development Briefly describe a simple process for developing information systems The Value of Systems Analysis and Design

3. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Before going into main topics in chapter 1, I’d like to emphasize: It will be good if you expend your efforts to understand the various terminologies introduced in chapter 1, because they can be the basics of this course. Furthermore, you should read the chapter summary presented at the end of each chapter.

4. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr A Framework for Systems Analysis and Design This book is about systems analysis and design methods Analyzing business requirements for information systems Designing information systems that fulfill those business requirements The product of systems analysis and design: information system System: a group of interrelated components that function together to achieve a desired result What is information system (IS)? Read your book page 6. IS captures and manages data to produce useful information Seven types of information systems: Transaction processing system Management information system Decision support system Executive information system Expert system Communication and collaboration system Office automation system The Value of Systems Analysis and Design

5. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Information systems can be viewed from various perspectives, including The players(=system stakeholders) in the information system (the “team”) The business drivers influencing the information system The technology drivers used by the information system The process used to develop the information system The Value of Systems Analysis and Design

6. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr The players – System Stakeholders See figure 1-1 and read: They are classified into the five groups A stakeholder is any person who has an interest in an existing or proposed information system. Stakeholders can be technical or nontechnical workers. They may also include both internal and external workers. System analyst serves as a facilitator or coach, bridging the communication gap that can naturally develop btw the nontechnical system owners and users and technical system designers and builders.  They are information workers Information workers are those workers whose jobs involve the creation, collection, processing, distribution, and use of information System Owners For any information system, large or small, there will be one or more system owners An information system’s sponsor and executive advocate, usually responsible for funding the project of developing, operating, and maintaining the information system They usually come from the ranks of management They tend to be interested in the bottom line – cost, value and benefits The Value of Systems Analysis and Design

7. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr System Users Unlike system owners, they tend to be less concerned with costs and benefits of the system They are concerned with the functionality the system provides to their jobs and the system’s ease of learning and ease of use Discussions with most users need to be kept at the business requirement level as opposed to the technical requirements level Internal System Users Clerical and service workers Technical and professional staff Supervisors, middle managers, and executive managers External System Users Customers, Suppliers, Partners, Employees External system users are referred to as remote users and mobile users Remote users - users who are not physically located on the premises but who still requires access to information systems. Mobile users - users whose location is constantly changing but who requires access to information systems from any location Connect information systems through laptop, handheld computers, and smart phones. The Value of Systems Analysis and Design

8. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr System Designers a technical specialist who translates system users’ business requirements and constraints into technical solution. She or he designs the computer databases, inputs, outputs, screens, networks, and software that will meet the system users’ requirements Database administrators Network architects Graphic artists Security experts Technology specialists System Builders a technical specialist who constructs information systems and components based on the system designers’ specifications. Application programmers Systems programmers Database programmers Network administrators Security administrators Webmasters Software integrators The Value of Systems Analysis and Design

9. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr System Analysts a specialist who studies the problems and needs of an organization to determine how people, data, processes, and information technology can best accomplish improvements for the business. The system analysts bridge a gap. What’s the gap here? Read your book page 11. Systems analysts role intentionally overlaps the roles of all other stakeholders What they do for systems owners? What they do for systems designers and builders? Systems analysts facilitate the development of information systems through interaction with the other stakeholders The Role of the Systems Analysts They understand both business and computing. They study business problems and opportunities and then transform business and information requirements into specifications for information systems that will be implemented by various technical specialists including computer programmers They are problem solvers. The term problems can be: Problems, either real or anticipated, that require corrective action Opportunities to improve a situation despite the absence of complaints Directives to change a situation regardless of whether anyone has complained about the current situation The Value of Systems Analysis and Design

10. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr They initiate changes within an organization – providing information that can be used for competitive advantage, finding new markets and services, and even dramatically changing and improving the way the organization does business. Where Do systems Analysts Work? Figure 1-2 on page 12: read numbered bullets  Regardless where they are assigned within the organization, it is important to realize that they come together in project teams which are usually created and disbanded as projects come and go. Team building and teamwork will be emphasized The Value of Systems Analysis and Design

11. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr You need to read “The next generation: Career Prospects for System Analysts.” pp. 13 a specialist who studies the problems and needs of an organization to determine how people, data, processes, and information technology can best accomplish improvements for the business. The Value of Systems Analysis and Design

12. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Skills Needed by the Systems Analyst Learn systems analysis and design concepts, tools, and techniques introduced by books Raise your personal skills and experiences First of all, learn the concepts and principles of Systems thinking “Toolbox” approach: many tools from different methodologies and approaches to systems analysis and design It encourages flexibility in the use of systems analysis and design tools You pick and use tools based on many different situations, the right tool for the right job In addition to having formal systems analysis and design skills, a SA must develop or possess Working knowledge of information technologies Computer programming experience and expertise Most analysts need to be proficient in one or more high-level programming lang. General knowledge of business processes and terminologies General problem-solving skills Analysts must avoid the tendency to suggest the solution before analyzing the prob. Good interpersonal communication skills How to communicate – both orally and in writing The single biggest factor in your career success or failure Business and technical writing/speaking, interviewing, and listening: Chap. 6 The Value of Systems Analysis and Design

13. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Good interpersonal relations skills (  )Our dept will open Engineer leadership course next year for you. Flexibility and adaptability Character and ethics Fig. 1-4 The Ten Commandments of Computer Ethics The Value of Systems Analysis and Design

14. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr External Service Provider (ESP) You wander where consultants fit in our taxonomy of stakeholders. Consultants are one example of an ESP Most ESPs are systems analysts, designers, or builders who are contracted to bring special expertise or experience to a specific project Project Manager Stakeholders introduced in this chap. work together as a team. Teams require leadership. For this reason, one or more of them takes on the role of project manager to ensure that systems are developed on time, within budget, and with acceptable quality. (note) Read the margin of your textbook to know about PM. The Value of Systems Analysis and Design

15. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Business Drivers for Today’s Information Systems The most important business trends that are impacting information systems Globalization of the Economy Electronic Commerce and Business Security and Privacy Collaboration and Partnership Knowledge Asset Management Continuous Improvement Total Quality Management Business Process Redesign Globalization of the Economy The Value of Systems Analysis and Design

16. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Globalization of the Economy Global Economy brings New and expanded international markets New international competitors Impact on information systems Require support of multiple languages, currency exchange rates, international trade regulations, and business cultures and practices Make information consolidation of information systems complicate Demand for players who can communicate, orally and in writing, with management and users that speak different languages, dialects, and slang. The Value of Systems Analysis and Design

17. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Electronic Commerce and Business Due to the globalization of economy and pervasiveness of the internet, business are changing and expanding their business model to implement e-commerce and e-business E-Commerce: the buying and selling of goods and services by using the Internet. E-Business: the use of the Internet to conduct and support day-to-day business activities. Three types of e-commerce and e-business Marketing of corporate image, products, and services is the simplest form of e-commerce application. The web is used merely to “inform” customers about products, services, and policies. Business-to-consumer (B2C) e-commerce, read pp. 18 Business-to-business (B2B) e-commerce, read pp. 18 Impact on information systems Most new information systems are being designed for an Internet architecture Since the only client-side software is a web browser, the choice of client operating system, such as Windows, Macintosh, or Linux, is becoming less important The Value of Systems Analysis and Design

18. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Security and Privacy As digital economy continues to evolve these two issues become important concerns for consumers and businesses alike. 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? (  ) These questions ultimately come down to technology. Privacy Consumer demands for privacy in e-commerce transactions Governments are regulating privacy issues. Impact on information systems Need to incorporate stringent security and privacy controls The Value of Systems Analysis and Design

19. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Collaboration and Partnership Organizations seek to break down the walls that separate organizational departments and functions. New product design used to be the exclusive domain of engineers. Today it typically involves a cross-functional team of representatives from many organizational units. read pp. 20 The trend toward collaboration: Organizations collaborate with outside business partners and even competitors. Oracle and Microsoft partner: Oracle applications operate on a Microsoft database. Both companies benefit financially from such cooperation Impact on information systems Need to provide secure, external access Need to pass data between different information systems: WalMart and its suppliers Suppliers monitor Wal-Mart’s inventory level and automatically initiate b2b transactions to keep the shelves stocked with their merchandise. The Value of Systems Analysis and Design

20. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Knowledge Asset Management Data – facts about people, places, events, and things that are of importance in an organization. Information systems collects raw data by capturing business facts and processing business transactions Information – data that has been processed or reorganized into a more meaningful form for someone. Knowledge – data and information that is further refined based on the facts, truths, beliefs, judgments, experiences, and expertise of the recipient. Knowledge Asset Management Recognizes that data, information, and knowledge are critical business resources As new information systems are built, it is increasingly expected to focus on integration of the data and information that can create and preserve knowledge in the organizations (*) Through the integration data and information are not redundant and contradictory Asks: “How can the organization manage and share knowledge for competitive advantage?” “How can the worker’s knowledge and expertise be preserved within the organization?” You try to answer to these questions. The Value of Systems Analysis and Design

21. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Continuous Improvement and Total Quality Management Information systems automate and support business processes. 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. Business processes should be improved continuously because the improvement results in cost reduction, improved efficiencies or increased value and profit. Continuous process improvement (CPI) – The continuous monitoring of business processes to effect small but measurable improvements in cost reduction and value added. CPI affects system analysts, then they are expected to initiate and suggest such improvement while designing and implementing information systems. Quality: a critical success factor in competition. Total quality management (TQM) – a comprehensive approach to facilitating quality improvements and management within a business. TQM commitments require that every business function, including information services, identify quality indicators, measure quality, and make appropriate changes to improve quality Information systems are part of the TQM requirements The Value of Systems Analysis and Design

22. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Business Process Redesign Why business process redesign is required? Answer to this question by reading pp. 22 In a single word, inefficiencies in business processes. Information systems have merely automated many of these efficiencies. Business process redesign (BPR) is the study, analysis, and redesign of fundamental business processes to reduce costs and/or improve value added to the business. More substantial changes and improvements than CPI Usually complemented by CPI How does BPR affect information systems? Tow basic ways to implement any information system – build it or buy it. In both cases, BPR figures prominently – redesign the business processes before implementing information system. The Value of Systems Analysis and Design

23. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Technology Drivers for Today’s Information Systems Advances in information technology can be drivers for information systems Networks and the Internet Mobile and Wireless Technologies Object Technologies Collaborative Technologies Enterprise Applications The Value of Systems Analysis and Design

24. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Let’s examine several technologies influencing today’s information systems Networks and the Internet The network has become the computer. Today’s information systems are installed on a network architecture Networks include mainframe computers, network servers, and a variety of desktop, laptop, and handheld client computers. The most pervasive networking technologies are based on the Internet. Some of the more relevant Internet technologies that you need to be aware of xHTML (extensible hypertext markup language) and XML Scripting languages Web-specific programming languages Intranets Extranets: These are for use btw specific organizations Portals: home pages Web services The Value of Systems Analysis and Design

25. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Mobile and Wireless Technologies Some mobile and wireless technologies PDAs, smart phones (= integrating PDAs+cell phones), Bluetooth, Wireless networking Impact on information systems Wireless connectivity (access) must be assumed Limitations of mobile devices and screen sizes must be accommodated Object Technologies Object technologies allow programmers to build software from software parts called objects Object technology – a software technology that defines a system in terms of objects that consolidate data and behavior (into objects). Objects are reusable, Objects are extensible Object-oriented programming languages include C++, Java, Smalltalk, and.NET Object-oriented analysis and design – a collection of tools and techniques for systems development that will utilize object technologies to construct a system and its software. Agile development – a system development strategy in which system developers are given the flexibility to select from a variety of tools and techniques to best accomplish the tasks at hand. The Value of Systems Analysis and Design

26. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Collaborative Technologies Collaborate technologies are those that enhance interpersonal communications and teamwork. Four important classes of collaborate technologies: e-mail, instant messaging, groupware, workflow Modern information systems are e-mail enabled. E-mail capabilities are built into the application software. You don’t need to switch to a dedicated e-mail p/g like Outlook Instant messaging is slowly incorporated into enterprise information systems applications Groupware technology allows teams of individuals to collaborate on projects and tasks regardless of their physical location The Value of Systems Analysis and Design

27. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Enterprise Applications Virtually all organizations require a core set of enterprise applications The core applications include financial management, human resource management, marketing and sales, operations management (inventory and/or manufacturing controls). Look at Figure 1-9 (pp. 27) Most organizations custom-built most or all of these core enterprise applications But today, these applications are frequently purchased, installed, and configured for the business and integrated into the organization’s business processes. Why? Read your book pp. 26 Because the core enterprise applications in different organizations tend to be more alike than they are different. Internal core applications are being supplemented with other enterprise applications that integrate an organization’s business processes with those of its suppliers and customers. CRM and SCM are such examples. See Fig. 1-9 Purchased and installed enterprise applications are never sufficient to meet all the needs for information systems in any organization Thus, systems analysts and other developers are asked to develop value-added applications to meet the additional needs of the business  System integration: custom (custom built) application + purchased enterprise applications The Value of Systems Analysis and Design

28. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr ERP (Enterprise Resource Planning) a software application that fully integrates information systems that span most or all of the basic, core business functions Most organizations must supplement the ERP solution with custom software applications to fulfill business requirements that are unique to the industry or business. Why ERP applications are significant to systems analysts? Read your book pp. 27 and answer 1) They may be involved in the decision to select and purchase an ERP solution 2) They are involved in the customization of the ERP solution, as well as redesign of business processes to use the ERP solution 3) ERP system’s architecture significantly impacts the analysis and design of the custom application when it is to be developed within an organization that uses an ERP core solution. The Value of Systems Analysis and Design

29. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr SCM (Supply Chain management) What is SCM? Companies are extending their core business applications to interoperate with their suppliers and distributors to more efficiently manage the flow of raw materials and products btw their respective organizations. SCM applications utilize the Internet as a means for integration and communications. Read the right margin of page 27 for SCM It optimizes the raw material procurement through finished goods distribution Would you examine how well SCM works on the field? It can be a good topic for your graduation thesis. Any delays or problems in any single link of a supply chain will adversely affect one and all. Thus, many businesses implement SCM using SCM software technology to plan, implement, and manage the chain. Several ERP application vendors are extending ERP software applications to include SCM capabilities The Value of Systems Analysis and Design

30. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr CRM (Customer Relationship Management) What is CRM? Read your book, margin on page 28 Many companies have discovered that highly focused CRM can create loyalty that results in increased sales Many businesses are implementing CRM solutions that enable customer-self service via the Internet CRM is concerned with not only providing effective customer inquiry responses and assistance but also helping the business profile its customer base for the purpose of improving customer relations and marketing (*) Implementing the second purpose might be a quite difficult task. As was the case with SCM technologies, many ERP vendors are developing or acquiring CRM capabilities to complement and extend their ERP solutions EAI (Enterprise Application Integration) : See carefully Fig. 1-11 Many companies face the significant challenge of integrating their existing legacy systems with new applications such as ERP, SCM, and CRM solutions. To meet this challenge, many organizations are looking at enterprise application integration software. EAI involves linking applications so that they transparently interoperate with one another. EAI solutions are usually based on middleware, which is a software used to translate and route data btw different applications. The Value of Systems Analysis and Design

31. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr A Simple System Development Process “process” for developing an information system System development process – a set of activities, methods, best practices, deliverables, and automated tools that stakeholders use to develop and maintain information systems and software. Most organizations’ system development process follows a problem-solving approach General problem-solving steps: 1. Identify the problem. 2. Analyze and understand the problem 3. Identify solution requirements or expectations 4. Identify alternative solutions and choose the “best” course of action 5. Design the chosen solution 6. Implement the chosen solution 7. Evaluate the results. If the problem is not solved, return to step 1 or 2 as appropriate See and read table on page 30 and Fig. 1-12 on page 31 Deliverable is a term used in project management to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer (either internal or external). The Value of Systems Analysis and Design

32. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Our Simplified System Development Process General Problem-Solving Steps System initiation 1.Identify the problem. System analysis 2.Analyze and understand the problem. 3.Identify solution requirements or expectations. System design 4.Identify alternative solutions and choose the “best” course of action. 5.Design the chosen solution. System implementation 6.Implement the chosen solution. 7.Evaluate the results. If the problem is not solved, return to step 1 or 2 as appropriate. The Value of Systems Analysis and Design

33. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr Given a problem to be solved or a need to be fulfilled, what will we do during system initiation, analysis, design, and implementation? Also, who will be involved in each phase? System initiation – the initial planning for a project to define initial business scope, goals, schedule, and budget. System analysis – the study of a business problem domain to recommend improvements and specify the business requirements and priorities for the solution System design – the specification or construction of a technical, computer-based solution for the business requirements identified in a system analysis. System implementation – the construction, installation, testing, and delivery of a system into production. Project management – the activity of defining, planning, directing, monitoring, and controlling a project to develop an acceptable system within the allotted time and budget Process management – the ongoing activity that defines, improves, and coordinates the use of an organization’s chosen methodology (the “process”) and standards for all system development projects The Value of Systems Analysis and Design

34. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr System Initiation It establishes project scope and the problem-solving plan. Project managers, system analysts, and system owners are the primary stakeholders in a system initiation. System Analysis Next step of system initiation. It requires working with system users to clearly define business requirements and expectations for any new system. Also, business priorities need to be established in the event that schedule and budget are insufficient to accomplish all that is desired. Business drivers most closely affect system analysis. For example, a current trend toward e-business and e-commerce influence the business requirement for any information system, leading us to establish project goals to conduct all business transactions on the Web. The completion of a system analysis often results in the need to update many of the deliverables produced during system initiation Schedule and budget may be revised. Feasibility of the project itself becomes questionable. Project could be canceled or could proceed to the next phase. Project managers, system analysts, and system users are the primary stakeholders in a system analysis. The Value of Systems Analysis and Design

35. Chonnam National Univ. Intelligence & Information System Lab. http://iis.jnu.ac.kr System Design Given an understanding of the business requirements for an information system, system design is proceeded. During system design we initially need to explore alternative technical solutions Once a technical alternative is chosen and approved, the system design phase develops the technical blueprints and specifications required to implement the final solution. Technology drivers most closely impact the system design process Many organizations define a common information technology architecture based on these technology drivers. Accordingly, all system designs for new information systems must conform to the standard IT architecture. Project managers, system analysts, and system designers are the primary stakeholders in a system design. System Implementation System implementation constructs the new information system and puts it into operation. During system implementation any new hardware and system software are installed and tested. Any purchased application and software and databases are installed and configured. Any custom software and databases are constructed using the technical blueprints and specifications during system design. Project managers, system analysts, and system builders are the primary stakeholders in a system implementation. The Value of Systems Analysis and Design