1. Systems Analysis & Design 7th Edition
Chapter 1
Introduction

2. Chapter Objectives
Discuss the impact of information technology on business strategy and success
Define an information system and describe its components
Explain how profiles and models can represent 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 modeling, prototyping, and CASE tools
Distinguish between structured analysis and object-oriented analysis
Compare the systems development life cycle waterfall model to adaptive models
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
Accounts for almost 30 percent of America’s economic growth, and the wage gaps between IT workers and all other workers will continue to widen
Global online population skyrocketed between 2000 and 2005 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
In business, clerks, sales representatives, accountants, supervisors, managers, executives, and customers all use information systems, either directly or indirectly. Information systems support daily, short-term, and long-term activities 4

8. The Impact of Information Technology
Who develops Information Systems?
In-house applications
Software packages
Internet-based application services
Outsourcing
Custom solutions from IT consultants.
Enterprise-wide software strategies
How versus What
Grater risk if company tries
To decide how system works
Versus what system does
Software packages are prewritten applications available for various functions. In-house applications often are developed when a software package that meets a company’s needs is not available. Because they are not prewritten, the advantage of in-house applications is that they can be developed to match a company’s requirements exactly. The disadvantage of custom software is that it is more expensive, and usually takes longer to design and implement, than software packages. With in-house applications, debugging and testing costs, and the attendant frustrations, must be borne alone. One guideline for evaluating an organization’s need for in-house applications versus software packages is to look for a software package that has an 80 percent or better fit with requirements. If the fit is less than 80 percent, an organization either should consider an in-house application or reevaluate its requirements. Consider alternatives to in-house applications and software packages. Note the risks involved in launching a new information system. 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
Data consists of basic facts that are the system’s raw material
Data is processed into information 12

10. Information System Components
Hardware
Moore’s Law
Software
System software
Application software
Enterprise applications
Horizontal system
Gordon Moore, co-founder of Intel, unveiled what is now known as Moore’s Law in an article for Electronics magazine. At that time, Moore predicted that the number of transistors and resistors placed on computer chips would double every year, with a proportional increase in computing power and decrease in cost. The forecast proved amazingly accurate for the past 10 years.
System software is necessary to run any type of application software. It serves as an interface between the user, the application software, and the computer’s hardware. Examples of system software include Windows, UNIX, Mac OS X, and Linux (operating systems)
Examples of application software include word processing programs, spreadsheet programs, database programs, video and audio editing programs, and Web browsers
Horizontal system is a system such as an inventory or payroll application that can be adapted for use in many type of business.
Vertical system is designed to meet the unique requirements of a specific business or industry. Like Dentex system that is designed for dentist. 13

11. Information System Components
Software
Vertical system
Legacy systems
Data
Tables
Linking
When planning an information system, a company must consider how a new system will interface with older system, which are called legacy systems.
An information system transforms data to useful information and store them in various location called tables.

12. Information System Components
Processes
Define the tasks and business functions that users, managers, and IT staff members perform to achieve specific results
An analyst must understand and document processes to build a successful information system.
People
Users, or end users, are the people who interact with an information system, both inside and outside the company.
The success of a system usually depends on user satisfaction. 16

13. Understanding The Business
A system produces specific results.
To design any successful system, it is important to recognize the results desired and the processes needed to produce those results.
IT professionals must understand a company’s business operations in order to design a successful system.
Note that different businesses have different requirements Business process 9 13

14. Understanding The Business
Business Process Modeling
Business Profile
Business Models
Business model
Business process
Business process reengineering (BPR)
System analyst use a process called business process modeling to represent a company’s operations and information needs.
A business profile is an overview that describes a company’s overall functions, process, organization, products, services , customers, suppliers, competitors, constrains and future direction.
Business model is a graphical representation of one or more business process that a company performs.
A business process describes a specific set of transactions , events, tasks, and results.
When a company attempt to simplify operations or reduce costs, popular strategy is to have managers and system analyst perform business process reengineering. 9

15. Understanding The Business
New Kinds of Companies
Production-oriented
Service-oriented
Internet-dependent
Dot-com (.com)
Brick-and-mortar 18

16. CASE IN POINT 1.1: Cloud Nine Financial Advisors
Cloud Nine provides its clients with a monthly newsletter that offers recommendations about stocks to buy or sell. Doug Layton, Cloud Nine’s president, has asked your opinion on whether dot-com stocks might be good investments for the future. He specifically mentioned Google, eBay, Amazon.com, and Yahoo!, but he said you could suggest other companies. Doug wants you to do some Internet research to learn more about these Web-based companies and their future prospects. You can use a search engine, or start by visiting the Web sites of publications such as Forbes, Fortune Magazine, Business Week, or The Wall Street Journal, among others. 18 16

17. Impact of the Internet E-Commerce or I-Commerce
C2C (Consumer-to-Consumer)
B2C (Business-to-Consumer)
B2B (Business-to-Business)
Company to company data sharing over internet to look for inventory or Electronic data interchange (EDI)
Extensible markup language (XML)
A flexible data description language that allows web-based communication between different hardware and software environment.
Supplier relationship management (SRM)
A B2B sites where buyers, sellers, distributors can offer products, submit specifications and transact businesses. 18

18. Impact of the Internet Web-Based System Development WebSphere .NET
( web development strategy
used by IBM more detail on Chapter 6)
.NET
( used by Microsoft)
Web services
like mortgage
calculator offered by
real sate web sites) 18

19. 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

20. 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

21. How Business Uses Information Systems
Enterprise computing systems
Support company-wide operations and data management requirements (Wal-Mart, Boeing and American airline use it for their inventory management )
Transaction processing systems (TP)
Efficient because they process a set of transaction-related commands as a group rather than individually( shown in figure)
The main function of Enterprise computing is to integrate a company’s primary functions such as production, sales, services, inventory control, and accounting to improve efficiency. It also improves data security and reliability.
In many large company applications called enterprise resource planning (ERP) provide cost effective support for users and managers Example is Car rental company.
Disadvantage of ERP is that these system usually impose an overall structure that might or might not match the way a company operates.
To protect data integrity in TP systems, TP system ensures that the system does not process the rest of transaction if any single element of the transaction fails. 21

22. 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
Management information systems evolved from transaction processing systems as a way to organize information for managers. Management information systems can produce detailed reports that list transactions, summary reports that consolidate data, or exception reports that identify data outside of normal conditions
Business support systems can analyze transactional data, generate information needed to manage and control business process, and provide information that leads to better decision making.
MIS new management system . Managers are the primary users.
RFID technology , uses high frequency radio wave to track physical objects. This technology helps companies to compete effectively.
One important feature of the business support system is the decision support capability. Decision support helps users make decision by creating a computer model and applying a set of variables. Example realtor might use what if analysis to determine the price it must charge to increase profits by specific amount while volume and costs remain unchanged 23

23. 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
A Knowledge base consist of a large database that allows users to find information by entering keywords or questions in normal English phrases.
Knowledge management systems often contain an explanation facility that helps users understand how certain conclusions were reached and a knowledge acquisition facility that allows the knowledge base to be updated
A knowledge management system uses inference rules, which are logical rules that identify data patterns and relationships.
Fuzzy logic deals in probable, rather than definite, outcomes based on the data
Many knowledge management system use a technique called Fuzzy Logic that allows inferences to be drawn from imprecise relationship. The result of a Fuzzy Logic search will display in priority order, with the most relevant result at the top of the list. 24

24. How Business Uses Information Systems
User productivity systems
Technology that improves productivity
, voice mail, fax, video conferencing.
Groupware
run in the intranet and enable users to share data, collaborate on project and work in teams.
Information systems integration
Most large companies require systems that combine transaction processing, business support, knowledge management, and user productivity features (Example in below)
Suppose an international customer has a problem with a product and makes a warranty claim. A customer service representative enters the claim into TP system. The transaction updates two other system: a knowledge management system that tracks product problems and warranty activity, and a quality control system with decision support capabilities. A quality control engineer uses what if analysis to determine if it would be advantageous to make product design change in order to reduce warranty claim. 25

25. Information System Users and Their Needs
a systems analyst must understand a company’s organizational model. Organizational levels affect not only the type of information needed, it also colors the presentation of information. A night shift supervisor can be given raw columns of data. A report for a top manager, however, often requires an artistic title page, a summary page, and several pages of graphical presentations complete with footnotes. 27

26. Information System Users and Their Needs
Top managers
Middle Managers and Knowledge Workers
Supervisors and Team Leaders
Operational Employees
Many claim that top managers deal primarily with unstructured problems that require intuition and judgment, while lower management levels confront structured problems that can be solved using established routines and specific facts. Some authorities feel top management should not issue specific directives, but instead provide guidelines, direction, and a budget framework.
the information required by middle managers is different from the information required by top managers. While top managers make strategic decisions, some say that middle managers make tactical decisions, determining specific programs and plans to meet stated objectives. As businesses expand and new companies grow, middle managers are in increasing demand. To take advantage of the opportunities available, employment counselors recommend that middle managers:
Stay current in their field
Remain abreast of technology
Develop professional contacts
Keep their resume up to date
Have a backup plan
Characterize knowledge workers. Note that knowledge workers support an organization’s basic functions.
Supervisors make operational decisions that involve a company’s day-to-day activities. These decisions should be consistent with and support the decisions made by middle management. Top managers often have far less computer experience than middle managers and supervisors.
Operational employees include users who rely on TP systems to enter and receive data they need to perform their jobs. In many companies, operational users also need information to handle tasks and make decisions that were assigned previously to supervisor. This called empowerment, gives employee more responsibility and accountability. 27

27. Systems Development Tools and Techniques
Modeling
Business model or Requirements model,
describes the information that system must provide
Data model
Describes data structures and design
Object model
Describes objects, which combine data and structures and design
Network model
Describes the design and protocol of telecommunications link
Process model
Describes the logic that programmers use to write cod module
Modeling produce a graphical representation of a concept or process that systems developers can analyze, test, and modify. Models work together to describe an environment. Systems analysts should be familiar with each of these models.

28. 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
A prototype allows users to work with a system before it is completed to make sure it meets their needs. Prototypes and test data commonly are used to see how a complex system will work before committing large amounts of time and money. Prototyping rarely is used in small businesses

29. Systems Development Tools and Techniques
Computer-Aided Systems Engineering (CASE) Tools
Also called computer-aided software engineering
CASE increases the efficiency of systems development.
Part 2 of the Systems Analyst’s Toolkit explains how analysts use CASE tools.
CASE technology allows programmers to retrieve commonly used algorithms from a central repository and piece them together to form modules.
CASE tools can be used to design a program in a condensed form of English and then automatically generate code in a programming language. One disadvantage of CASE tools is that it can take a long time to learn them.

30. Systems Development Methods
Structured Analysis
Systems development life cycle (SDLC)
Predictive approach
Since it is based on a detailed plan, similar to a blueprint for constructing a building
Uses a set of process models to describe a system graphically
Process-centered technique
Because it focuses on process that transform data into useful information
). The SDLC is formalized in many organizations, with detailed instructions outlining reporting requirements, specific tasks that must occur in each phase, and individual responsibilities. The goal of structured analysis and the SDLC is to create a system with the desired capabilities, within budget, and on time

31. Systems Development Methods
Object-oriented Analysis
O-O analysis combines data & processes into objects
Object is a member of a class
Objects possess properties
Methods change an object’s properties
A message requests specific behavior or information from another object
As an example of packaging data and processes together in an object, consider an employee object. This object might contain data about the employee (name, address, social security number, and so on) together with processes that can print an employee record or compute the employee’s pay. When an object changes, any program that accesses the object automatically accesses the change.
an object inherits properties from its class. Define methods. The data elements in an object are called attributes or variables. Define message. A message indicates the name of a method to be used.
A major benefit of the O-O approach is the ability to reuse and modify existing objects

32. Planning and Modeling a Systems Development Project
In addition to selecting a development method, system developers also must create a plan or model for the many tasks that will be required
Typically, the development team will use project management tools to help achieve the end result

33. Planning and Modeling a Systems Development Project
Comparison of Predictive and Adaptive Models
The SDLC usually is referred to as the waterfall model

34. Planning and Modeling a Systems Development Project
The SDLC Waterfall Model
Disadvantage in the built-in structure of the SDLC, because the waterfall model does not emphasize interactivity among the phases
This criticism can be valid if the SDLC phases are followed too rigidly
However, adjacent phases usually interact
the waterfall model traditionally used to picture the SDLC.
an interactive model, more representative of object-oriented methods.

35. Planning and Modeling a Systems Development Project
The SDLC Waterfall Model
Usually includes five steps
Systems planning
Systems analysis
Systems design
Systems implementation
Systems operation, support, and security
SDLC describes activities and functions employed in all systems development, regardless of the approach used
if the SDLC requirements are incorrect, the sequence of phases can be repeated.
A deliverable is a tangible item, such as a chart, diagram, report, or program file. Depending on the system being developed, the length and complexity of each phase in the SDLC can vary. 30

36. Planning and Modeling a Systems Development Project
Systems planning
Systems request
Purpose of this phase is to perform a preliminary investigation whose key part is a feasibility study
Systems Analysis
First step is requirements modeling
End product is the System requirements document
The systems planning phase begins with a formal request to IT department, Requests from top managers or other governing bodies generally receive the highest priority. Systems analysts can react when they receive a request for system changes. In a preliminary investigation, the systems analyst merges sound business acumen, knowledge of contemporary technology, and clear communication skills. feasibility study reviews the cost and benefits and recommends a course of action based on operational, technical, economic, and time factor. Benefits of a new system can be intangible, such as greater customer satisfaction, or tangible, such as reduced expenses. A compelling benefit can be the cost of not acting; a bank’s installation of an ATM may not yield a positive cash benefit, but consider the impact that not installing an ATM would have on business.
Requirements modeling is the investigation of the business process and document what the new system must do the end result is the system requirements document. During systems analysis, developers study the current system, determine the user’s requirements (requirements modeling), and recommend a solution (systems requirement document). The time spent on this phase of the SDLC usually is quite short when compared with the rest of the project. 32

37. Planning and Modeling a Systems Development Project
Systems Design
Identify all outputs, inputs, and processes
End product is system design specification
Systems Implementation
New system is constructed
Users, managers, IT staff trained to operate and support the system
System evaluation performed
During the systems design, analysts acquire any necessary hardware and software and develop the details of the new or modified system.
During systems implementation, analysts develop programs, install and test the new system, train users, and convert to the new system.
Some experts feel an impartial third party who has not been actively involved in the design of the system should do the systems evaluation. Users and systems analysts may have a tendency to test only what has been designed; a third party is more likely to discover a procedure or type of data that has been overlooked. 34

38. Planning and Modeling a Systems Development Project
Systems Operation, Support, and Security
A well-designed system must be secure, reliable, maintainable, and scalable
After several years of operation, systems need extensive changes
SDLC ends with system replacement
During the systems operation, support, and security phase, a systems analyst reviews the system, identifies errors, identifies enhancements, monitors system performance, and protects the system. When systems implementation is complete, the key issue is whether the system performs as advertised: does it work as intended and meet users’ needs? Experienced systems analysts find that the worst situation occurs when management or users have changed their expectations, and these changes are not reflected in the new system. The best insurance against this problem is frequent communication between and feedback from all participants throughout the SDLC.
information systems development is a continuing process. 36

39. Planning and Modeling a Systems Development Project
Adaptive Methods and Models
Attempt to develop a system incrementally, by building a series of prototypes and constantly adjusting them to user requirements
Extreme Programming (XP)
Analysts should recognize that these approaches have advantages and disadvantages
Extreme Programming is an adaptive method that focuses on an intensely interactive process between developers and users rather than an overall project goal. 37

40. Planning and Modeling a Systems Development Project
Joint Application Development and Rapid Application Development Methods and Models
Joint application development (JAD)
Rapid application development (RAD)
Other Development Methods and Models
Rational Unified Process (RUP®)
Microsoft Solutions Framework (MSF)
A JAD session is a lengthy, structured, group work meeting in which users and IT professionals discuss an aspect of a systems development project. The goal is to obtain group agreement on an issue.
RAD is the concept of developing software during the system development process. Prototyping is a common RAD technique.
RUP offers a flexible, iterative process for managing software development projects that can minimize risk, ensure predictable results and deliver high quality software on time( IBM use this approach)
MSF is similar to SDLC approach except it examines a broader business and organizational context that surrounds the development of an information system.
Companies can choose their own approach, often using CASE tools

41. Planning and Modeling a Systems Development Project
The Importance of Project Management
Regardless of the development strategy, people, tasks, timetables, and expenses must be managed effectively
Complex projects can involve dozens of people, hundreds of tasks, and many thousands of dollars
Part 4 of the Systems Analyst’s Toolkit for more information about project management tools and techniques.

42. Systems Development Guidelines
Stick to a plan
Involve the users throughout the development process
Listening is very important
Use project management tools to identify tasks and milestones
Remain flexible
Develop accurate cost and benefit information

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

44. Information Technology Department
Application Development
Team may include users, managers and IT Staff members
Systems Support and Security
Deployment team
User Support
Help desk or information center (IC)
Train users and managers on application software.
System support and security group impalements and monitors physical and electronic security hardware, software, telecommunications, and centralized database management system. 41

45. 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
Webmasters 41

46. Information Technology Department
Quality Assurance (QA)
Reviews and tests all applications and systems changes to verify specifications and software quality standards
Is a separate unit that reports directly to IT management 41

47. 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

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

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

50. Chapter Summary
IT is a combination of hardware, software, and telecommunications systems that support business
The essential components of an information system are hardware, software, data, processes, and people
Companies are production oriented, service oriented, or a combination of the two
Organization structure usually includes levels 49

51. Chapter Summary
Systems analyst use modeling, prototyping, and CASE tools
Various development methodologies exist
Regardless of the development model, it is important to use project management tools necessary to manage people, tasks, timetables, and expenses
An IT department develops, maintains and operates a company’s information systems 49

52. Chapter Summary
Systems analysts need a combination of technical and business knowledge, analytical ability, and communication
Chapter 1 complete 49