1. Department of Accounting & Finance
FIS 431/631 Financial Information Systems: Analysis and Design Introduction Joe Callaghan
Oakland University
Department of Accounting & Finance 1

2. Introduction Course Overview
Review Tentative Course Syllabus
Prerequisites
Instructor Info
Ways to Communicate
Course Resources
Grading
Other Handouts/Readings
Questions? 2

3. Course Overview M.O.T.E. framework Planning Overview Analysis Overview
Design Overview

4. The MOTE Approach MO - Model-Oriented:
We use the SDLC logical framework: a systematic and orderly approach to systems development
We implement this framework by using the IE set of methodologies (developed by James Martin, 1989)

5. Stages of the Systems Development Life Cycle
Planning
Analysis
Design
Construction

6. Systems Planning Also called Information Strategy Planning (ISP)
Concerned with top management goals, targets, and critical success factors
Concerned with how IT can be used to create new opportunities or competitive advantages
An overview model is created of the enterprise, its functions, data, and information needs
The overview model is split into areas appropriate for analysis

7. Systems Analysis
Decides what processes are needed to implement business strategy
Decides how processes interrelate
Decides what data is needed
Identifies areas for systems design
Involves users extensively
Creates activity models (FHD, PM)
Creates a fully normalized data model (ERD)
Creates interaction models (REA)
Identify PLDs, which contain business logic to enforce business rules
Remains independent of technology and current systems

8. Systems Design
Implements processes (conceptual views of what actions need to be carried out – from systems analysis) into procedures (practical views of possible ways to implement processes)
Builds windows, interfaces, dialogue boxes, forms
Maps to technical environment

9. Systems Construction
Generates programming code which results in executables
Physically structures the database
Design is linked to construction by means of prototyping

10. The MOTE Approach (continued)
TE - Tool-Enhanced
Software development tool used is Oracle’s Designer 9i™

11. Tool: Oracle Designer 9i™

12. Designer 9i™ Implements Entire Systems Development Life Cycle...
Phases:
PLANNING
ANALYSIS
DESIGN
ENVIRONMENT MAPPING
CONSTRUCTION

13. Designer 9i™ Tool Outputs
Planning &
Analysis
Organization Hierarchy,
ERD, FHD, PM, PLD
Interfaces, Mappings
Design
Generated Code, DDL
(Java, PL/SQL)
Construction

14. Advantages of the MOTE Approach
rigorous, yet flexible framework
structured logic, but not language-specific
relational database, but not vendor-specific
support for varied technological environments, e.g., block mode, batch processing, client-server, web-enabled systems
produces IT-savvy graduates

15. Systems Planning Overview
Desired Orientation
IPSO
Business as a System
Management Functions (Peace)

16. Desired Orientation Systems Viewpoint
Input (resources), Process (convert), Storage (data), Output (product/service) (IPSO business template or pattern)
RDBMS vs. Legacy Systems
Tables vs. Journals & Ledgers
Signing Convention vs. Drs & Crs
Cross-functional vs. “Stovepipe” Systems
Diagramming vs. coding
A Focus on a Variety of User Views
versus only what accountant wants

17. Modeling A Business Cash Disbursements Cash Receipts $ $ “Suppliers”
Enterprise
Customers
AMP: Raw Materials, Supplies,
Labor,
Finance,
Fixed assets
MSC: Marketing
Sales
Collection
Delivery
Convert: Operations
Job Costing

18. Activity Models: Template for Decomposition of Business Processes (IPSO template)
Suppliers
AMP Processes
Provides Input of Resources to Organization
Request input
resources
Pay for input
Customers
Provides
Finished Goods and Services
MSC
Processes
Supply goods and services
Receive payment
ORGANIZATION
Conversion Processes
Add value
Relational Database Management System

19. Business Process Types
Acquisition/ Maintenance /Payment Processes - (AMP) - acquire, maintain, and pay for resources needed (e.g. labor, finance, fixed assets, raw materials and supplies, research & development) to provide goods and services.
Conversion Processes - adding value; converting the resources into goods and services for customers.
Marketing/Sales/Collection Processes (MSC) – marketing, delivering goods and services to customers, and collecting payment.

20. Traditional Accounting “Stovepipe” Systems

21. Managing Business and Information Processes (PEACE)
Should Do Do
Feedback
Control;
Evaluate
Plan
Execute And
Trigger
Measures
Business
Rules
Business
Processes
Information
System
Data
Record Data &
Convert to
Information
How to
Value Add

22. P - Plan
Planning requires leaders to define the business objectives, to prioritize business processes, and to provide a blueprint for achieving the objectives. They must identify opportunities available to the organization as well as assess the risk associated with each opportunity.

23. E - Execute
Managers execute their plan by dividing business processes into smaller activities (events), assigning people to perform each activity, and motivating them to do a good job. A clearly defined plan increases the likelihood of proper execution.
A - And

24. C - Control
Control is exercised by reviewing the results of an activity or an entire business process to see if they are consistent with expectations. The review may cause a change in expectations or a change in the way an activity or a process is performed to bring the actual results in line with expectations.

25. E - Evaluate
Periodically, managers evaluate the operating results to see if the business processes are achieving the organization's objectives. The results of the evaluation are used to modify the plans, objectives, and expectations.

26. Relationship between Business Processes, Information Processes and Management Activities
AMP
Conversion Processes
MSC
Management
Activities
Plan
Execute &
Control
Evaluate
Manage Business Processes
Capture
Data
Information System
Provide
Reports
RDMS:
Data

27. Managing Organizations: Business & Information Processes
PEACE (Management)
Plan
Execute, And
Control
Evaluate
Business Processes
AMP: Acquire, Maintain, Pay Factors of Production
Convert: Add value, particularly unique to organization
MSC: Market, Sell/Provide, Collect payment
Information Processes
Record, Maintain, Report
Convert Data into Information

28. Overview of Systems Analysis

29. Modeling A model is a representation of reality
Systems analysts seek to understand an organization by building a representation of the business and its workings, called a business model (also conceptual or logical model)
A business model includes three primary types of models: (1) a data model, (2) activity models, and (3) interaction models

30. Analysis Tasks Data Analysis Interaction Analysis Analysis Model
Confirmation
Design
Planning
Activity
Analysis
Current
System
Analysis

31. Data & Activity Analysis
Done in parallel
Developed iteratively
Ask User
Document
Feedback
Refine
Deliverables - Entity Relationship Diagram, Function Hierarchy Diagram, Process Models

32. Interaction Analysis
Examines the relationships and interactions between data and processes
Three techniques
REA analysis
Entity type life cycle analysis
Process logic analysis

33. Current Systems Analysis
Provides validation of understanding
Planning for transition
Preparation for conversion
Identification of reusable components

34. Model Confirmation
Checks business area model for correctness and completeness
Comparison with current systems
Stability analysis

35. Business Modeling In Analysis: An Overview of the MIS Approach
ERD
Data
Model
User
Feedback
PLD, ELC
Interaction
Models
Analysis
Model
Confirmation
Activity
Models
Design
FHD, PM
IE captures information at the highest possible level of abstraction and refines each element until all of them combine to form executing applications

36. Analysis Tasks with REA Interaction Modeling
FHD, PM
Activity
Analysis
REA
Interaction
Analysis 1
ERD
PLD, ELC
Data Analysis
Systems
Design
Interaction
Analysis 2

37. Types of Models 1
Data model: The ERD is a data model that depicts data (entity types, attributes) and the relationships enforcing business rules between entity types
The primary goal is to accurately depict the fundamental elements of business information, i.e., entity types, attributes, and associations between entity types
The data model is implemented as a database in a developed system (central to the IS)

38. ERD with Normalization

39. Types of Models 2
Activity models: Records the activities of interest to the business (i.e., the things the business does or should do).
Involves decomposition of business processes from the highest level (AMP of Resources, Conversion Processes, MSC Processes) to the lowest (elementary processes)
Also involves the specification of process dependency events, to refine decomposition of the processes.

40. Types of Models 3
Interaction models: Define how things the business does (activities/events) affect things of interest to the business (data)
The REA model is an interaction model
Faculty at OU have combined the IE notation of an interaction model with the accounting REA model
Interaction modeling provides a detailed basis for systems design, in the form of a completed business model

41. Overview of Systems Design

42. Introduction Analysis precedes it and is prerequisite to it
Construction and Implementation is next stage
Consists of two parts
External
Internal or Technical

43. Prerequisites to Design
Analysis Deliverables:
Data Model: ERD
Activity Model: FHD, PM
Interaction model: REA, PLD
Use Belgium Chocolate
Website link
See models and Access database

44. Design External Internal (Technical)
Goal: develop system as it appears to users
Who are the users?
What are the locations?
What are the technical possibilities?
Internal (Technical)
transform logical data model into a physical representation of the database
transform activity models into executable system

45. Tasks Choose Application Style Designing the Dialog
GUI
Client Server
Terminal based
Batch, perhaps using legacy systems
Designing the Dialog
Data Flow Diagrams
Design the Interface
Windows, Dialog boxes, controls
Design the Procedure Logic (PrAD)
Triggers, Procedures and Reports
Design the Data Structure

46. Design Deliverables
Interface Layouts, using views and Interface Design Tool (Forms Developer)
A Set of Procedural Logic
Report requirements (Reports Developer)
Data Structure List

47. GUIs Create Window Create Controls Specify Window characteristics
Exercise to re-enforce learning
Add menu items to a window
Specify menu items
Create Controls
Add controls that implement views
Add other controls, e.g. OK, Cancel
Map Import/Export Views
Add Events, invocation of system logic

48. Client/Server
Presentation logic, Data manipulation logic, Data Management
Remote Presentation (Presentation management only on Client, all logic on Server)
Distributed Process (Presentation Logic on Client, others on Server)
Remote Data Access (Only Data management on Server)

49. Technical Issues Oracle Designer/Developer Student Models
RDBMS: Oracle 8i, ODBC
Code: PL/SQL, Java
Student Models
, Web-page, etc.
Oracle accounts
Production server
Development server

50. Gen to Designer

51. Next Session Process Modeling Review Belgium Chocolate Read Article
Review Oracle Tutorial