12 information systems and systems development today and tomorrow 11 th edition chapter

12

Information Systems and Systems Development

TODAY AND TOMORROW

11th Edition

CHAPTERCHAPTER

2Chapter 12 Understanding Computers, 11th Edition

Learning Objectives Understand what information systems are.

Explain who uses information systems in a typical organization.

Identify several types of information systems commonly found in organizations and describe their purpose.


Learning Objectives, Cont’d Explain the people involved with system

development.

Identify and describe the different steps of the system development life cycle (SDLC).

Discuss several approaches used to develop systems.


Overview This chapter covers:

What are and who uses information systems Common types of information systems Use of the information systems department and

outsourcing The system development life cycle The major approaches to system development


What Is an Information System? System: collection of elements and procedures that

interact to accomplish a goal

Information system: system used to generate information to support users in an organization

System development: process of designing and implementing a new or modified system


Who Uses Information Systems? Executive managers: strategic decisions

Middle managers: tactical decisions

Operational managers: operational decisions geared toward meeting short-term objectives

Nonmanagement workers: on-the-job decisions


Types of Information Systems While hundreds of specific types of information

systems exist, many fall into one of eight categories


Office Systems Office system: A system in which office automation

hardware, software, and other resources are used to facilitate communications and enhance productivity Office automation: computer-based office-

oriented technologies, such as word processing, e-mail, workgroup computing, and the like

Document processing systems (create, distribute, store, and manage documents

Formats need to be considered for archived documents so they can be read at a later date

Communications systems (e-mail, messaging, online conference, workgroup computing, etc.)


Transaction Processing Systems Transaction processing system: System that

processes and records data created by an organization’s business transactions Order entry systems

E-commerce systems Point-of-sale (POS) systems

Check processing systems

Payroll systems

Accounting systems


Management Information Systems (MISs)

Management information system (MIS): system that provides decision makers with preselected information Usually provides information in the form of

computer-generated reports

Much of the time, this information is generated from data obtained from transaction processing

Most frequently used to make moderately structured, middle-management decisions


Decision Support Systems (DSSs) Decision support system (DSS): provides people

with the tools and capabilities to organize and analyze their decision making information

Provides information on demand and incorporate data from both internal and external sources

Tailored to help with specific types of decisions; typically used by middle and upper management

Special type of DSS targeted to upper management = executive information system (EIS)


Geographic Information Systems (GISs)

Geographic information system (GIS): system that combines geographical information with other types of data to provide a better understanding of relationships among the data

Commonly used to make decisions about locations (e.g. new facility locations, disaster risk, geographical crime patterns)


Enterprise-Wide and Inter-Enterprise Systems

Enterprise-wide system: integrates activities throughout an entire enterprise

Inter-enterprise system: links multiple enterprises, such as a business and its customers, suppliers, and partners

Types of enterprise-wide and inter-enterprise systems Electronic data interchange (EDI): transfers data

between different companies using the Internet or another network

Often used to automate reordering materials and products


Types of enterprise-wide and inter-enterprise systems, cont’d Enterprise resource planning (ERP): large

integrated system that ties together all of a business’s activities

Enterprise application integration (EAI): exchanging information from an ERP or other internal system among different applications and organizations

Enterprise-Wide and Inter-Enterprise Systems, Cont’d


Types of enterprise-wide and inter-enterprise systems, cont’d Customer

relationship management (CRM): a system designed to build and manage good relationships with customers

Often implemented via the Web today (eCRM)



Types of enterprise-wide and inter-enterprise systems, cont’d Supply chain management (SCM): the oversight

of materials, information, and finances as they move from the original supplier to the consumer

Value chain management systems (maximize the flow of products, goods, services, and information through a value-added network of suppliers

Just-in-time (JIT) systems (resources are limited to the right amount at the right time to fill orders)

Inventory management systems (track and manage inventory)



Types of enterprise-wide and inter-enterprise systems, cont’d Product lifecycle management (PLM): organizes

and correlates all information about a product to help companies improve products and better track costs and profits

Price optimization systems: determine the optimal price to maximize product profitability

Requires complex calculations so more possible today than in the past



Types of enterprise-wide and inter-enterprise systems, cont’d Price optimization systems, cont’d

Markdown optimization software: times markdown of products that are still unsold at the end of the product life cycle

Electronic shelf labels (ESLs): used to always display the price in the product database

Enterprise architecture: a comprehensive framework used to describe and manage an organization’s business functions and systems



Design and Manufacturing Systems Design and manufacturing systems (use computers

to automate the design or manufacturing process Computer-

aided design (CAD)

Computer-aided manufacturing (CAM)


Artificial Intelligence Systems Artificial intelligence (AI) system: a system in

which a computer performs in ways that would be considered intelligent if observed in humans Turing Test Initial advances

in AI made through chess-playing programs


Intelligent agents: programs that perform specific tasks to help to make a user’s work environment more efficient or entertaining and that typically modifies its behavior based on the user’s actions

Application assistants Search agents Shopping bots Entertainment bots Chatterbots

Artificial Intelligence Systems, Cont’d


Expert system: provides the type of advice that would be expected from a human expert Knowledge base: database containing facts

provided by human experts and rules the system should use to make decisions based on those facts

Inference engine: program that applies the rules to the data stored in the knowledge base, in order to reach decisions

Is only as good as the knowledge base and inference engine; also needs honest, correct information from the user in order to work correctly



Neural network: expert systems in which the human brain’s pattern-recognition process is emulated by the computer system Used in :

Handwriting, speech, and image recognition Geographical mapping Medical imaging Crime analysis Biometric identification Vision systems (quality checks in

manufacturing, recognizing postage stamps, etc.)



Robotics: the study of robot technology Robot: A device, controlled by a human operator or a

computer, that can move and react to sensory input Used in situations:

That are dangerous or impossible for people to perform

Where immense precision is needed To perform monotonous tasks To assist individuals



Types of robots Military robots (unmanned planes and vehicles,

devices to initially investigate locations, exoskeleton suits, etc.)

Business robots (monitoring facilities, implementing videoconferencing, etc.)

Personal robots (entertainment, perform communications tasks, perform household tasks, etc.)



Responsibility for System Development

Information systems (IS) department: includes most, if not all, of the computer and networking personnel for an organization including: Data processing personnel Systems analyst: studies systems in order to

determine what works needs to be done and how this work may best be achieved

Business analyst System analysis and design group Programmers Operations personnel



Outsourcing companies: outside vendors used to process specific business tasks Use growing, primarily due to cost Offshore offsourcing = outsourced to another

country Captive offshoring = companies setting up their

own facilities in another country Need to consider appropriateness of outsourcing,

as well as security and privacy System development team is typically led by systems

analyst; team should include users


The System Development Life Cycle (SDLC)

System development life cycle (SDLC): process consisting of size phases of system development


Preliminary Investigation Preliminary investigation: the phase of the system

development life cycle in which a brief feasibility study is performed to assess whether or not a full-scale project should be undertaken Purpose is to define and evaluate the problem and

see if it is worthy of further study Documentation: Feasibility report (includes

recommendation regarding whether or not the project should move on to the next stage in the SDLC)


System Analysis System analysis: the phase of the system

development life cycle in which a problem area is thoroughly examined to determine what should be done Data collection: gathering information about the

system (organizational chart, observation, interviewing users, etc.)

Data analysis: analyzing information to determine requirements for the new systems

Tools include data flow diagrams, decision tables, checklists, etc.

Documentation: any instruments used for data gathering; any tools developed


System Design System design: the phase of the system

development life cycle in which a model of the new system and how it will work is formally established Helpful to develop a model of the new system

System flowcharts Input/output designs Data dictionary

Most companies will also perform a cost/benefit analysis (should consider both tangible and intangible benefits)

Documentation: Specifications of new system


System Acquisition System acquisition: the phase of the system

development life cycle in which hardware, software, and other system components are acquired

Need to determine if needed products will be purchased or developed in house Software to be developed moves into the program

development process (covered in Chapter 13) Products to be purchased need to be identified and a

vendor selected Can use RFP and/or RFQ Bids need to be evaluated; vendor rating systems and

benchmark tests can be helpful Documentation: RFPs, RFQs, any vendor evaluation

materials, etc.


System Implementation System implementation: the phase of the system

development life cycle that encompasses activities related to making the system operational

Direct conversion (old system deactivated; new system installed)

Parallel conversion (both old and new operated for a period of time)

Phased conversion (new system implemented by module) Pilot conversion (new system installed at a pilot location

initially) Documentation: Implementation schedule, test data, test

results, etc.


System Maintenance System maintenance: the phase of the system

development life cycle in which minor adjustments are made to the finished system to keep it operational until the end of the system’s life or until the time that the system needs to be redesigned One of the first activities is the post-implementation

review (identifies any glitches in the new system that need to be fixed)

An ongoing-process When a major change is needed, the project goes

through the SDLC again Documentation: Completed project folder


Approaches to System Development Traditional system development: SDLC phases

are carried out in the preset order Used primarily when system requirements are

easy to determine, when the system is very familiar, or when management requests it

Time-consuming Prototyping: a small model, or prototype, of the

system is built before the full-scale development effort is undertaken Prototype can be revised as needed before full

system is developed End-user development: user is primarily responsible

for the development of the system


Summary What Is an Information System?

Who Uses Information Systems?

Types of Information Systems


The System Development Life Cycle (SDLC)

Approaches to System Development

12 information systems and systems development today and tomorrow 11 th edition chapter

Documents

systems development

information systems

goal information system

system development slide

th edition chapter slide

preselected information

understanding computers

modified system slide