1. Using Information Technology
Chapter 11
Information Systems
To the instructor:
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2. Information Systems Information Management & Systems Development
11.1 Organizations, Managers, & Information
11.2 Computer-Based Information Systems
11.3 Systems Development: The Six Phases of Systems Analysis & Design
Key Questions (from the text):
11.1 Organizations, Managers, & Information. What are the departments, tasks, and levels of managers in an organization, and what types of decisions do they make?
11.2 Computer-Based Information Systems. What are the six computer-based information systems--and what are their purposes?
11.3 Systems Development: The Six Phases of Systems Analysis & Design. What are the six phases of the systems development life cycle?
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3. 11.1 Organizations, Managers, & Information
The flow of information within an organization:
Horizontally - reflects functional areas
Vertically - reflects management levels
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Departments
Research and development (R&D)
Production
Marketing
Accounting and finance
Human resources (personnel)
R&D’s functions:
Basic research, relating discoveries to the organization’s current or new products; and
Product development, testing, and modification for new products or services created by researchers.
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Management Levels
Top managers - concerned with long-range, or strategic, planning and decisions
Middle-level managers - make tactical decisions to implement the strategic goals of the organization
Supervisory managers - make operational decisions - predictable decisions that can be made by following well-defined sets of routine procedures
Organization chart - a schematic drawing showing the hierarchy of formal relationships among an organization’s employees.
FACTOID: Yet another commonly-used term for a supervisory manager is a first-line manager.
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Types of Information
Structured information: detailed, current, not subjective, concerned with past events, records a narrow range of facts, and covers an organization’s internal activities
Unstructured information - summarized, less current, highly subjective, concerned with future events, records a broad range of facts, and covers activities outside as well as inside an organization
Semi-structured information - some structured information and some unstructured information
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7. 11.2 Computer-Based Information Systems
For lower managers: TPSs
For middle managers: MISs and DSSs
For top managers: ESSs
For all levels, including nonmanagement: OASs and ESs
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8. Transaction Processing System (TPS)
TPS - a computer-based information system that keeps track of the transactions needed to conduct business. Features include:
For lower managers
Produces detail reports
One TPS for each department
Basis for MIS and DSS
Transaction - a recorded event having to do with routine business activities.
Detail report - contains specific information about routine activities.
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9. Management Information System (MIS)
MIS - a computer-based information system that uses data recorded by TPS as input into programs that produce routine reports as output. Features include:
For middle managers
Draws from all five departments
Produces several kinds of structured reports
Types of structured reports produced by the MIS:
Summary reports show totals and trends.
Exception reports show out-of-the-ordinary data.
Periodic reports are produced on a regular schedule.
Demand reports produce information in response to an unscheduled demand.
FACTOID: Management information systems are so critical to the success of an organization that many academic institutions offer degree programs in MIS. Does your college or university offer coursework in MIS?
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10. Decision Support System (DSS)
DSS - a computer-based information system that provides a flexible tool for analysis and helps managers focus on the future. Features include:
For middle managers
Produces analytic models
Key feature of a DSS is that it uses models.
Model - a mathematical representation of a real system.
Models allow the manager to do a “what-if” simulation in order to reach decisions.
The image depicts a geographic CSS for earthquake insurance, which insurance underwriters can use to set rates and examine potential liability in the event of a natural disaster.
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11. Executive Support System (ESS)
ESS - an easy-to-use DSS made especially for top managers; it specifically supports strategic decision making
EIS (Executive Information System) - another name for an ESS.
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12. Office Automation System (OAS)
OAS - combination of various technologies to reduce the manual labor required in operating an efficient office
OASs are useful for everyone who works in an office.
Expert system - a set of interactive computer programs that helps users solve problems that would otherwise require the assistance of a human expert.
Expert systems are also intended for use by everyone who works in an office.
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11.3 Systems Development
System - a collection of related components that interact to perform a task in order to accomplish a goal
Participants in a project involving a new system or changes to an existing one:
Users
Management
Technical staff
Systems analyst - an information specialist who performs systems analysis, design, and implementation.
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14. The Six Phases of Systems Analysis & Design
Systems analysis and design - a six-phase problem-solving procedure for examining an information system and improving it.
Systems development life cycle (SDLC) - the step-by-step process that many organizations follow during systems analysis and design.
SDLC
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15. The First Phase: Conduct a Preliminary Investigation
Objectives:
Conduct the preliminary analysis
Propose alternative solutions
Describe the cost & benefits
Submit a preliminary plan
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16. The Second Phase: Do an Analysis of the System
Objectives:
Gather data
Analyze the data
Write a report
The second objective may benefit from…
Modeling tools - tools which enable a systems analyst to present graphic, or pictorial, representations of a system.
One example of a modeling tool is a data flow diagram (DFD).
DFD - graphical depiction of the flow of data through a system.
FACTOID: Focus groups are another popular method of gathering data during the systems analysis phase of the SDLC. According to Merriam-Webster.com, a focus group is “a small group of people whose response to something (as a new product or a politician's image) is studied to determine the response that can be expected from a larger population.”
Data flow diagram
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17. The Third Phase: Design the System
Objectives:
Do a preliminary design
Do a detail design
Write a report
Preliminary design - description of the general functional capabilities of a proposed information system.
CASE (computer-aided software engineering) tools - programs that automate various activities of the SDLC.
Prototyping - using workstations, CASE tools, and other software applications to build working models of system components, so that they can be quickly tested and evaluated.
Prototype - a limited working system developed to test out design concepts.
Detail design - description of how a proposed information system will deliver the general capabilities described in the preliminary design.
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18. The Fourth Phase: Develop the system
Objectives:
Develop or acquire the software
Acquire hardware
Test the system
Make-or-buy decision - you decide whether you have to create a program--have it custom-written--or buy it, meaning simply purchase an existing software package.
This decision may have already been addressed during the design stage, but if not, it must be addressed during the fourth phase.
FACTOID: The term make-or-buy decision is applicable to more than just the SDLC. IT companies have to decide whether to make or buy training classes for their employees, and whether to make or buy technical support services for their customers. Manufacturing companies have to decide whether to make or buy various components needed for their products.
Another common term for the “buy” in make-or-buy is outsourcing. Originally, this term referred to U. S. companies moving their manufacturing plants overseas where labor was cheaper. But outsourcing has come to mean the “buy” in any make-or-buy decision made by a business.
Unit testing - testing the performance of individual parts via made-up data.
System testing - linking the individual parts together and using test data to see if the parts work together.
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19. The Fifth Phase: Implement the System
Objectives:
Convert to the new system
Train the users
Four strategies for handling the conversion:
Direct implementation - the user simply stops using the old system and starts using the new one.
Parallel implementation - the old and new systems are operated side by side until the new system has shown it is reliable, at which time the old system is discontinued.
Phased implementation - parts of the new system are phased in separately--either at different times or all at once.
Pilot implementation - the entire system is tried out but only by some users.
FACTOID: The direct method of systems implementation, while extremely low in cost, is also extremely high in risks. The direct method has several alternative names--“abrupt,” “cold turkey,” and “plunge”—all of which reflect its inherent risks.
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20. The Sixth Phase: Maintain the System
Objective:
To adjust and improve the system by having system audits and periodic evaluations and by making changes based on new conditions
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Concept Check
What type of manager makes operational decisions--predictable decisions that can be made by following well-defined sets of routine procedures?
Supervisory manager
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Concept Check
What is the term for a recorded event having to do with routine business activities?
Transaction
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Concept Check
What is a mathematical representation of a real system called?
Model
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Concept Check
What level of management is an ESS made especially for?
Top or executive managers
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Concept Check
What is the term for the combination of various technologies to reduce the manual labor required in operating an efficient office environment?
OAS (Office Automation Systems)
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Concept Check
What does SDLC stand for?
Systems Development Life Cycle
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Concept Check
What are the six phases of the SDLC in order?
Preliminary investigation
Systems analysis
Systems design
Systems development
Systems implementation
Systems maintenance
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Concept Check
Which phase of the SDLC includes testing the system?
The fourth phase: Develop the system
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Concept Check
What is the term for the process of using workstations, CASE tools, and other software applications to build working models of system components, so that they can be quickly tested and evaluated?
Prototyping
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Concept Check
What is a schematic drawing showing the hierarchy of formal relationships among an organization’s employees?
Org chart
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Concept Check
Which phase of the SDLC involves converting to the new system?
The fifth phase: Implement the system
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Concept Check
Which method of conversion involves keeping the old and new systems operating side by side until the new system has shown it is reliable?
Parallel implementation
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Concept Check
What is the term for the decision whether you have to create a program--have it custom-written--or buy it, meaning simply purchase an existing software package?
Make-or-buy decision
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Concept Check
Which type of testing looks at the performance of individual parts, using test data?
Unit testing
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Concept Check
Which phase of the SDLC includes user training?
The fifth phase: Implement the system
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Concept Check
Which method of conversion has the users simply stop using the old system and start using the new one?
Direct implementation
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Concept Check
Which type of manager is concerned with long-range, or strategic, planning and decisions?
Top managers
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Concept Check
What type of information includes some structured information and some unstructured information?
Semi-structured information
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Concept Check
Which type of computer-based information system is intended primarily for lower managers?
TPS (Transaction processing system)
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Concept Check
Which type of computer-based information system uses models?
DSS (Decision support system)
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