Information Systems & System Development

Information Systems & System Development:

  • Need for System Development Enterprise Architecture
  • Business Intelligence (BI)

Users of Information Systems

Types of Information Systems

Responsibility for System Development

System Development Life Cycle (SDLC)

Approaches to System Development

What Is an Information System?

  • System

–Collection of elements and procedures that interact to  accomplish a goal

  • Football game, transit systems, etc.
  • Information System

–A system used to generate the information needed to  support the users in an organization

  • Digital Ecosystem

–The collection of people, products, services, and business  processes related to a digital element

  • Apple digital ecosystem = Apple hardware, software, and online services
  • The Need for System Development

–Systems development

  • Process of designing and implementing a new or modified system

–System development may be required because of:

  • New laws (Sarbanes-Oxley Act, HIPAA etc.)
  • Changes to the legal requirements for retaining business data (e-disclosure, etc.)
  • Introduction of new technology
  • Enterprise Architecture

–Provides a detailed picture of an organization, its function,  its systems, and the relationship among them

–Allows managers to organize and maximize the use of IT  resources and make better decisions

–Not easy to develop and requires time and effort, but once in place, it is an invaluable decision support tool

  • Business Intelligence (BI)

–The process of gathering, storing, accessing, and analyzing  data in order to make better business decisions

–Business analytics (BA)

  • The process of analyzing data to evaluate a company’s operations

–Data Warehouse

  • Comprehensive collection of data about a company and its customers
  • Data mart is smaller and typically stores data related to a particular subject or department

–Data Mining

  • The use of intelligent software to find subtle patterns that may not be otherwise evident
  • Can identify processes that need improvement
  • Can be used for customer profiling
  • Web Mining

–Data mining used in conjunction with Web data

  • Text Mining

–Analysis of text-based data (online forms, emails, call-center notes)

  • Social media analytics – mining and analyzing data from blogs and social media sites
  • Often used with the massive amounts of data generated today – called Big Data

Big Data For Everything

–Sports teams, casinos, airlines, museums, and more are  gathering and analyzing big data

–Point Defiance Zoo &  Aquarium uses big data  analytics to uncover  patterns and trends to help  drive ticket sales, enhance  visitor experiences, and  raising awareness of  wildlife conservation

Users of Information Systems

  • Users of Information Systems

–Used by one person or all employees

–Enterprise Systems

  • A system that is used throughout an entire enterprise

–Inter-enterprise Systems

  • Used by a business and its suppliers and other business partners

–Some information systems are designed for management  decision making

–User Groups

  • Executive managers
  • Middle managers
  • Operational managers
  • Nonmanagement workers
  • External users

  • Office and User Productivity Support Systems

–Office System

–Document Processing Systems

–Document Management Systems (DMSs)

–Content Management Systems  (CMSs)

–Communication Systems

  • Transaction Processing Systems (TPSs)

–Processes and records data created by an organization’s  business transactions

–Usually processed in real time

–Order Entry Systems

–Payroll Systems

–Accounting Systems

  • Decision Making Support Systems

–Help individuals make decisions

–Management Information Systems (MISs)

  • Provides decision makers with regular, routine, and timely information that is used to make decisions
  • Decision Support Systems (DSSs)

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

–Typically are interactive and provide information on demand

  • Geographic Information Systems (GISs)

–Combines geographical information with other types of  data to provide a better understanding of relationships  among the data

  • Integrated Enterprise System

–Electronic Data Interchange (EDI)

  • Transfers data between different companies using the Internet or another network

–Enterprise Resource Planning (ERP)

  • Large integrated system that ties together all of a business’s activities
  • Inventory and Product Management Systems
  • Tracks and manages inventory
  • Supply Chain Management (SCM)
  • Just-in-time (JIT)

–Resources are limited to the right amount at the  right time to fill orders

–Warehouse Management Systems (WMS)

  • Design and Manufacturing Systems

–Used to improve productivity at the product design stage  and manufacturing stage

–Computer-aided design (CAD)

  • Use of computer technology to automate design functions

–Computer-aided manufacturing (CAM)

  • Use of computer technology to automate manufacturing functions
  • Artificial Intelligence Systems

–A system in which a computer performs actions that are  characteristic of human intelligence

  • Initial advances in AI made through chess-playing programs
  • Watson supports human interactions

–Intelligent Agents

  • Programs that perform specific tasks to help make a user’s work environment more efficient or entertaining and that typically modifies its behavior

based on the user’s actions

  • Application assistants
  • Personal assistants (Google Now, Siri)
  • Shopping bots
  • Entertainment bots
  • Chatterbots
  • May be part of Semantic Web

–Expert Systems

  • Provides the type of advice that would be expected from a human expert and has two main components
  • 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

–Neural Networks

  • A system in which the

human brain’s pattern-recognition process is emulated by the computer

  • Used in:

–Handwriting, speech,  and image recognition

–Medical imaging

–Crime analysis

–Biometric identification

–Vision systems


  • The study of robot technology
  • Robot

–A device, controlled by a human operator or a  computer, that can move and react to sensory input

  • Military Robots
  • Business and Industrial Robots
  • Personal Robots (Service Robots)

Self-Driving Cars

Responsibility for System  Development

  • The Information Systems (IS) Department

–Responsible for an organization’s computers, systems, and  other technology

–Also called the Information Technology (IT) department

–Systems Analyst

  • Studies systems in order to determine what work needs to be done, and how this work may best be achieved

–Other IT personnel include:

–Business analysts, application programmers, operations personnel, and security specialists

  • Outsourcing

–Hiring outside vendors to perform specific business tasks


  • Outsourced to another country


  • Outsourcing to nearby countries

–Homesourcing (homeshoring)

  • Outsourcing to home-based workers


  • Taking job traditionally performed by an employee and outsourcing it to a large, undefined group of people
  • Often performed via the Web


  • Lower costs
  • Flexible staffing

–Global sourcing

–Strategic sourcing

–Socially responsible outsourcing


  • Personnel changes at the outsourcing company
  • Conflicts between in-house and outsourcing personnel
  • Communication problems
  • Cultural differences
  • Quality control and security

–Captive offshoring

  • U.S. companies own facilities in other countries and hire employees in that country
  • Gives company more control over employees and procedures than with conventional outsourcing

Trend Box

Digital Badges

–Consist of icons that represent academic achievements or  acquired skills

–Offered by educational institutions, Web sites, companies,  etc.

–Can be standard or customized

–Displayed via a digital badge  system

The System Development Life Cycle  (SDLC)

  • SDLC : The development of a system from the time it is first studied until the time it is updated or replaced
  • Preliminary Investigation

–A feasibility study is performed to assess whether or not a  full-scale project should be undertaken

–Documentation: Feasibility Report

  • Contains findings on status of existing system and benefits/feasibility of changing to a new system
  • Includes system analysts’ recommendations regarding whether or not the project should move on to the next stage in the SDLC
  • System Analysis

–Examines the problem area 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 the effectiveness and efficiency of current system and/or requirements for new or modified systems
  • Entity-Relationship Diagrams (ERDs) and Data Flow Diagrams (DFDs)

–Used to model the entities in a system and the flow of data within the system

  • Decision Tables and Decision Trees

–Useful for identifying procedures and summarizing  the decision making process of one step of a system

–Business Process Modeling Notation (BPMN)

–A graphical, standardized notation used to model the business processes used within  systems

–Designed to be understood by all individuals  involved in the system

–Expresses processes graphically using diagrams similar to flowcharts

  • Class Diagrams and Use Case Diagrams

– Used to illustrate  systems that are  based on the  concept of  objects

–Documentation: Diagrams, Tables, Trees, and Models

  • Consists of any instruments used for data gathering and the resulting diagrams, trees, models, and other tools used to summarize and analyze the data


–Interview questions

–Diagrams, models, etc.

  • System Design

–Specifies what the new system will look like and how it will  work

–Developing the Design and Specifications for the New  System

  • Model of new system is developed
  • Diagrams can include:

–Data dictionary: describes all data in a system

–Data flow and/or class diagrams of the new system

–User interface (UI) designs

–Cost-Benefit Analysis

  • Considers both tangible and intangible benefits to determine if the benefits of the new system outweigh the cost

–Documentation: System Design/Specifications

  • Developed during the system design phase
  • Consists of all documentation necessary to illustrate the new system
  • System Acquisition

–System analysts determines where to obtain the necessary  hardware, software, and other system components

–The Make-or-Buy Decision

  • Determining if the software needed will be purchased from a vendor or developed in-house

– If developed in-house, software to be developed  moves into the program development process

  • System Implementation

–The new system is installed, tested, and made operational

  • Data migration

–System must be thoroughly tested

  • Test data should be realistic and include incorrect data

–System Conversion

  • Once testing phase is completed, system is installed

–Direct conversion

» Old system deactivated and new system is  immediately implemented

–Parallel conversion

» Both systems are operated simultaneously until  it is determined that the new system works  properly

–Phased conversion

» System is implemented by module

– Pilot conversion

¡New system used at just one location within the  organization

  • User Training

–All training manuals should be developed and given  to users

–Training takes place on the actual system

–Can occur one-on-one or in groups

–Documentation: Implementation Schedule, Test Data and  Results, and Training Materials

  • Implementation schedule, test data, test results, training materials should be saved for future reference
  • System Maintenance

–Maintenance is an ongoing process

–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

–Post-Implementation Review

  • Identifies any glitches in the new system that need to be fixed

–When a major change is needed, the project goes through the SDLC again

  • Documentation: Completed Project Folder

–Results of the post-implementation review are added to  the accumulated documentation

–Information can be useful to auditors who may check to  see that proper procedures were followed

Approaches to System Development

  • The Traditional Approach

–SDLC phases are carried out in a preset order

  • Preliminary investigation
  • System analysis
  • System design
  • System acquisition
  • System implementation
  • System maintenance

–Referred to as the waterfall model

  • Each phase begins only when previous one is completed


  • The Iterative Approach

–System is developed incrementally

  • Steps are repeated until the system is finalized


  • Small model, or prototype, of the system is built before the full-scale development effort is undertaken
  • The End-User Development Approach

–User is primarily responsible for the development of the  system

–Most feasible when system being developed is small and  inexpensive

–Measures must be taken to ensure that the system is  compatible with existing systems and no new problems are  introduced





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