Systems Analysis and Design, Sixth Edition

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Systems Analysis and Design
Sixth Edition

End of Chapter Solutions
CHAPTER ONE

INTRODUCTION TO SYSTEMS ANALYSIS AND DESIGN
ANSWERS TO CASE-SIM: SCR ASSOCIATES Introductory note: The SCR case study provides a valuable real-world experience for students. The case involves an imaginary IT consulting firm that maintains a realistic Web site, complete with a company intranet that students can access. The student becomes an entry-level systems analyst reporting to a supervisor named Jesse Baker. In each session, the student receives e-mail messages, voice mail messages, and a list of tasks to perform. The voice mail all comes from Jesse Baker, and the e-mail messages come from Jesse Baker and other members of the firm. Each message contains guidance and direction that would be typical of a real-life situation. After reading the e-mail, listening to the voice messages, and consulting the task list, the rest is up to the student. He or she must go back to the chapter, review the terms, concepts, and skills, and then apply them in the context of the case study. Four main tasks occur in each session. A typical task might require the student to prepare an e-mail message, a memo, Internet research, or a graphic element such as a chart or diagram. The task list for Session 1 follows. 1. Investigate SCR’s Internet site and learn about the company’s history, purpose, and values. Send Jesse a brief memo with suggestions to expand or improve these sections. The SCR Web site includes realistic features, content, and links that allow students to learn about the company and its background. Encourage students to find examples of other IT consulting firms and compare them to the SCR site. This task could tie into assignment 4, which requires Web research to find other firms. It would be helpful to get students interested in the SCR site’s design and navigation features before they start working on the case itself. Students with a background in Web design probably will have suggestions and comments to share with the class. 2. On the SCR intranet, visit the data, forms, and resource libraries and review a sample of the information in each library. This task provides an overview of the site and will give students a valuable introduction to the case study. If you have not done so already, this would be a good time to explain the main features of the case study, which include the SCR intranet, personalized e-mail messages, the reference libraries, and the task list for each session.

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Chapter 1, Introduction to Systems Analysis and Design

3. Using the SCR functions and organization listed in the data library, create an organization chart using Microsoft Word, Visio, or a drawing program. Students can use the list of SCR functions and organization (Document 1-2 from the data library) to create an organization chart. A sample chart follows:

Executive Committee Gary Smith Thomas Campbell Harry Richards

Systems Group Manager Jesse Baker

Network/Web Support Group Manager Tamisha Spencer

Systems Analysts Natalie Ward Sam Esposito

Programmers Robert Newman Marge Clark Dave Spencer

Network Engineers Lyle Newhart Dawn Hill

Web Designers Mark Martin Ho Lee Bill Loos

Business Solutions Group Manager Lynn Chou

Project Management Group Project Manager Sheely Grant Tom Kleeman

Business Analysts Stephanie Greene Annie D'Ogie

E-commerce Analysts Joyce Donahue Raymond Ortez Bill Black

Corporate Trainers Meg Harris Roy Brown

Administrative Support Group Manager Robert Stacy

Executive Committee Support Executive Assistant Nan Wheeler

Administrative Assistant Leslie Hall

Client Service Rep Amy Hawkins

Accounting Technicians Waymon White Jeff Madre

Human Resources Specialist Janet Gannon

Records Assistant Sandy Wise

4. Jesse says that SCR has plenty of competition in the IT consulting field. Get on the Internet and find three other IT consulting firms. She wants a brief description of each firm and the services it offers. Students should have little difficulty locating IT consulting firms. This would be a good topic for student reports, and for actual visits to the online sites if computer resources are

and desired results. products. ands share information. Identify the main components of an information system. processes. the development of extensible markup language (XML) enabled company-to-company traffic to migrate to the Internet. Explain the difference between vertical and horizontal systems packages. A business model graphically represents business functions that consist of business processes such as sales. According to a Department of Commerce report. and future direction. A horizontal system is a basic system.Systems Analysis and Design. Firms used EDI to plan production. accounting. business success depends on information technology. and purchasing. customers. usually over private telecommunications networks. such as an inventory or payroll program. and why is it important to a business? Information technology (IT) is a combination of hardware and software products and services that companies use to manage. systems analysts first develop a business profile and then create a series of business models. A business process describes specific events. As B2B volume soared. adjust inventory levels. or stock up on raw materials using data from another company’s information system. the IT industry has created a new economy. organization. What is information technology. ANSWERS TO CHAPTER EXERCISES Review Questions 1. XML is extremely flexible because it is concerned with the data itself rather . Define business profiles. and connectivity provide unprecedented benefits to businesses and individuals around the world. You might ask students to critique each site on the basis of useful information content. data. which perform specific tasks. (Page 7) 5. services. To understand a company’s operations. and low communication costs. A vertical system is designed to meet the unique requirements of a specific business or industry. An information system has five key components: hardware. communicate. organization. competitors. More than ever. that can be adapted for use in many companies. How do companies use EDI? What are some advantages of using XML? Online trading marketplaces initially were developed as company-to-company datasharing arrangements called electronic data interchange (EDI). (Page 6) 4. (Page 8) 3. constraints. A business profile is an overview that defines a company’s overall functions. business models. XML is a data description language that allows Web-based communication between different hardware and software environments. EDI enabled computer-tocomputer transfer of data between companies. suppliers. and business processes. software. and people. processes. universal availability. (Page 4) 2. tasks. where advances in hardware. Sixth Edition Page 3 of 21 available in the classroom. such as a Web-based retailer or a video rental chain. which offered standard protocols. software. and aesthetics. access.

job performance. a user could view XML customer data as a Web page on a notebook computer or as a contact list on a PDA. knowledge management systems. Describe four organizational levels of a typical business and their information requirements. desktop publishing. Enterprise computing systems support company-wide data management requirements. User productivity systems include networking.Page 4 of 21 Chapter 1. This is just the opposite of HTML (hypertext markup language). and broader information than lower management. (Pages 15 and 16) 8. Describe the phases of the systems development life cycle. such as supervisors and team leaders. presentation graphics. generate information needed to manage and control business processes. Information systems include enterprise computing systems. and systems operation and support. (Pages 12 through 14) 7. systems design. lower management. Operational personnel need very detailed information directly related to the job functions they perform. transaction processing systems. and external information to support the strategic planning process.mail. business support systems. Describe five types of information systems. Middle managers need less detailed information. Examples of TP systems include customer billing. During the systems planning phase. e. where the language controls the way the information is displayed on a Web browser. more exception and summary information. fax. (Page 10) 6. middle management. Introduction to Systems Analysis and Design than the output format. one-time. and productivity. Online tech support systems are examples of knowledge management systems. A tracking system that analyzes sales trends and forecasts future volume is an example of a business support system. need detailed operational information and some exception and summary information specific to their narrow areas of responsibility. The systems development life cycle consists of five phases: systems planning. Four organizational levels are operational personnel. database management. and warranty claim processing. Business support systems provide job-related information support to users at all levels. Members of lower management. and Internet access. accounts receivable. and top management. company intranets. automated calendars. For example. what-if information. and user productivity systems. User productivity systems provide employees at all organizational levels with a wide array of tools that can improve quality. word processing. Top managers need summary-level information. video conferencing. and provide information that leads to better decision making. Airline reservation and credit card billing systems are examples of enterprise computing systems. The unique advantage of XML is that data description is not linked to output formatting. Transaction processing (TP) systems process data generated by day-to-day business operations. you identify the nature and scope of the problems . voice mail. systems analysis. spreadsheets. and give an example of each. These systems can analyze transactional data. Knowledge management systems simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied. systems implementation.

Prototyping involves the creation of an early working version of an information system or its components. (Pages 20 through 22) 9. or it can develop into the final version of the system. and improve the quality of the finished product. A prototype can serve as an initial model that is used as a benchmark to evaluate the completed system. efficient. and trade associations whose members offer online sales and services. By describing the objects (data) and methods (processes) needed to support a business operation. and modify. support a wide variety of design methodologies. Systems implementation is the phase during which the information system actually is constructed. data. The purpose of the systems analysis phase is to learn exactly what takes place in the current system. consumer advocacy groups. and CASE tools in the systems development process. boost IT productivity. Sixth Edition Page 5 of 21 discovered in the systems request and conduct a preliminary investigation. and the IT department provides ongoing support through maintenance changes and enhancements. O-O analysis uses object models to represent data. A systems analyst can describe and simplify an information system by using a set of business. Some experts believe that the growth in e-commerce will cause states and local governments to lose a significant amount of sales tax revenue. (Pages 16 and 17) 10. CASE tools help systems analysts develop and maintain information systems. Examples would include firms such as L. Explain the use of models. CASE tools provide an overall framework for systems development. Bean and Lands End. O-O methods are more flexible. the same question could apply to mail order firms who conduct no physical operations within in a state or locality. Modeling produces a graphical representation of a concept or process that systems developers can analyze. L. Do you agree? Why or why not? This issue has sparked strong differences of opinion among national and state leaders. a system developer can design reusable components for faster system implementation and decreased development cost. The purpose of the systems design phase is to determine how to construct the information system to best satisfy the documented requirements. the end users begin to use the constructed information system. prototypes. and make recommendations to management on the alternative solutions and their costs. and the means objects affect other objects. unless Internet transactions are subject to sales tax. the system is evaluated. determine and fully document in detail what should take place. During systems operation and support. and process models. Should the Internet be treated differently? You might want your students to do some preliminary research and then debate this issue. Also. compared with structured analysis. behavior. and how does it differ from structured analysis? Whereas structured analysis regards processes and data as separate components. . What is objected-oriented analysis.Systems Analysis and Design. objectoriented (O-O) analysis combines data and the processes that act on the data into things called objects. In some respects. Many analysts believe that. object. network. you might follow this topic as news items occur during the course. and realistic in today’s dynamic business environment. test. (Pages 18 and 19) Discussion Topics 1.

Future company leaders should. service. Today's technology leaders should be tomorrow's business leaders. Financial information systems are among the first in a company to be computerized. Information systems development and maintenance is complex and requires extraordinary management skills to operate successfully. this same person should have responsibility for all centralized data and information processing functions. d. c. Competent leaders are apt to rise from many different departments. So.Page 6 of 21 Chapter 1. therefore. d. These same skills are necessary in top-level management positions. It would be difficult for a company to make a profit if it did not have excellent control over its data and information. or financial areas. where many of the information systems are used. Top-level management positions require a strong interest in people and strong skills in dealing with people. unless the IT manager has worked outside the IT department. 3. because these areas are the most important to a company. or to someone or somewhere else? Why would it matter? Several possible advantages of having the IT director report to the chief financial officer of the company follow: a. Computer technology dominates many companies today. The operation of the IT department represents a large expense for most companies. IT management is more comfortable dealing with computers and with procedures. It is unwise to restrict prospects for top-level management positions to one specific area of the company. b. he or she essentially is a specialist and is at a disadvantage compared to someone with more general knowledge and skills. . Some possible arguments against the proposition follow: a. Therefore. Should the CIO or CTO report to the company president. c. Whether a firm is product-oriented or service-oriented. a company should fill top management vacancies by promoting IT managers. Some possible arguments for the proposition follow: a. Present an argument for and against the following proposition: Because IT managers must understand all phases of the business. The chief financial officer is in the best position to monitor and control this expense. in Internet-dependent firms. c. b. and less comfortable dealing with people. The chief financial officer has responsibility for all centralized monetary functions. People who have worked in several different functional areas are better rounded than those restricted to just one area. and it is natural. the best choice would be an IT manager — but only if he or she had extraordinary business skills apart from technical ability. IT management deals with all functional company areas so members of IT management know and interrelate with the people who lead and who work in these areas. come from the production. The head of the IT group in a company is often called the chief information officer (CIO) or chief technology officer (CTO). Information technology (IT) management has a broad understanding of the information processing of the company instead of the narrower view held by managers from other areas of the company. to place the IT department under the chief financial officer. Introduction to Systems Analysis and Design 2. Because they provide needed services to these areas. to the finance department. IT management personnel have the support of the key personnel from these areas. therefore. b. Possibly. it must make a profit to survive.

Choose a company and pretend to buy $1. 4. They. among others. It might be interesting to compare and discuss the various ways in which businesses manage information. List the systems. to mainstream business publications such as Fortune. Several possible disadvantages of having the IT director report to the chief financial officer of the company follow: a. Information technology is too complicated to assign to someone whose expertise is finance and not computer technology. and you might want to propose a debate among your students. is this better? Why or why not? IT professionals agree that computer technology is changing the way companies do business. Few observers think that IT will replace person-to-person contact totally. c. There is a danger that too much attention would be paid to the financial information systems and not enough to other information systems. Projects 1. Forbes. the position titles of the users. you might direct them to . Many brick-and-mortar firms are launching large-scale B2B and B2C ventures that profoundly will affect traditional business practices and operations.000 of its stock. business magazine articles. Logically the finance area is the only lower-level area of the company that has the breadth of responsibility necessary to manage the IT department. Sixth Edition d. Will computerbased transactions and expanded e-commerce eventually replace person-to-person contact? From a customer’s point of view. 2. and having the department report to the president would be unwise. Computers perform many jobs that previously were performed by people. b.Systems Analysis and Design. Answers will vary. students can perform research on the Internet and compare the views of technology-based publications such as InfoWorld. and the business functions that the systems support. sites such as Yahoo! offer financial information and analysis links and resources. Students could perform this task as individuals or work in teams. What is the current price per share? Why did you choose that company? Report each week to your class on how your stock is doing. If students need fundamental information about investing in stocks. The IT department should report to the president of the company because information technology is as important to the company as the company's financial functions. Many observers feel that the implications of huge quantities of information and 24/7 access can cut in both directions. or the Web to find computer companies whose stock is publicly traded. Research newspaper. deserve equal attention from the president. For additional background and viewpoints about the impact of computer technology on traditional person-to-person interaction. This project assumes that students have some basic understanding the stock market. Contact at least three people at your school or a nearby company who use information systems. Reasonable people differ on these issues. therefore. The real question is how these changes will affect people in an information-oriented society. and the Harvard Business Review. Page 7 of 21 Too many technical details are involved with the operation of the information technology department. If they do. although many clerical and administrative functions will become automated.

and the danger of unrestrained “exuberance” by investors. a medium-sized firm that makes specialized circuit boards. and this project can provide them with an understanding of the basics. then click the Organization Chart button. . Industry leader like Vanguard also offer free online information about investing at it Web site at www.free-financial-advice. If you have an older version of Word. encourage students to try using a software tool to create the chart. and an investor has to come to you for advice. only to fall sharply. Low-Voltage will improve efficiency and strengthen its bond with TX Industries. TX will be able to submit purchase orders electronically. Should Low-Voltage develop a system to connect with TX Industries’ purchasing system? Why or why not? By developing a new order entry system. 1. ANSWERS TO APPLY YOUR KNOWLEDGE 1 Low-Voltage Components Situation: You are the IT manager at Low-Voltage Components. 2. 4. In recent years. Perform Internet research to learn more about investing in technology stocks. Imagine that you are a financial advisor. TX Industries.html.net/stock-market. and IT industries should be able to reduce manufacturing costs. What terms or concepts describe the proposed computer-to-computer relationship between Low-Voltage and TX Industries? The computer-to-computer relation between Low-Voltage and TX Industries is called electronic data exchange (EDI). that system is not capable of handling EDI. including his or her goals and risk tolerance? How would you decide what companies to invest in? Much has been written about the cyclical nature of the stock market. If Low-Voltage connects to the new system. many school and community libraries can assist students in learning about financial terms and concepts.com. or you can draw it by hand. Although Low-Voltage has a computerized accounting system. technology stocks have climbed to staggering heights. Create an organization chart of your school or a local company using Microsoft Word or a similar program. you can click the Insert Diagram or Organization Chart button on the Drawing toolbar. Also. Low-Voltage’s largest customer. The computer-to-computer link also will enable Low-Voltage to provide better IT support for production planning. If you have Microsoft Word 2003 or Microsoft Word 2002. Students need to understand the special risks (and opportunities) of investing in technology companies. you can click Insert – Object – MS Organization Chart. including stock market investments. 3. recently installed a computerized purchasing system.vanguard. Answers will vary.Page 8 of 21 Chapter 1. Introduction to Systems Analysis and Design the material at www. Would it be important to know something about the investor. Although paper and pencil is a fallback.

operational personnel report to lower-level and middle-level managers. 2 Systems Analyst Salaries Situation: As part of your job search.com/careers/index. if mentioned. To review the results of BLS salary surveys. among other factors. you decide to review your knowledge about corporations. and the salaries. The e-commerce boom has sharply increased demand for IT professionals with ecommerce experience and skills. resources. To increase your knowledge. . and students should have no problem locating examples. What are the four organizational levels in a typical company? In the typical organizational model. Page 9 of 21 Is Low-Voltage’s proposed new system a transaction processing system? Why or why not? The proposed order entry system will perform online transaction processing.html. If students have trouble getting started. Sixth Edition 3. 3 MultiTech Interview Situation: You have an interview for an IT position with MultiTech. The top managers report to the board of directors that is elected by the company’s shareholders.htm#n20000. The Internet offers numerous sites for job seekers. Using the Internet. Many sources for IT career information exist on the Web. Systems analysts are included in job code 25102. a large telecommunications company. 4. Students should have no trouble finding examples on the Web.com/. including the following questions: 1.gov/oes/1998/oesnat98. you decide to find out more about salaries and qualifications for systems analysts in the area where you would like to work. determine whether the Federal Bureau of Labor Statistics lists salary information for systems analysts. 4. 2. Transaction processing (TP) systems process data generated by day-to-day business operations. you can suggest infoworld. you can visit www. summarize the information you find. should the company consider an ERP system? Why or why not? Answers will vary.itcareers.bls. Find information about a career as a systems analyst. Before Low-Voltage makes a final decision. Find at least two online ads for systems analysts and list the employers. and links. Find at least one ad for an IT position that specifically mentions e-commerce. An ERP strategy depends on the size of the firm and how it integrates its operations and financial data. 3. The Bureau of Labor Statistics maintains salary surveys for a wide range of jobs. Online publications such as InfoWorld provide various articles. search the Internet to perform the following research: 1. the qualifications. If so. To prepare for the interview.Systems Analysis and Design. who in turn report to top managers. A good starting point to suggest is http://www. and you want to learn more about the firm and its organizational structure.

What is empowerment? In many companies. 3. 4. What is the main difference between structured analysis and O-O analysis? While structured analysis regards processes and data as separate components. but you did not get the job. transaction processing systems. operational employees need information to handle tasks and make decisions that previously were assigned to supervisors. prototyping. Internet-dependent companies. Similarly. operational personnel often require information support from what formerly were called management information systems. For example. Service-oriented companies primarily offer information or services. Production-oriented companies primarily manufacture and sell goods.Page 10 of 21 Chapter 1. behavior. or sell goods produced by others. You want to be ready for the following questions: 1. rather than by its users. called empowerment. you realize that you did not fully understand those terms. Introduction to Systems Analysis and Design 2. A new category. As you prepare for an interview with Rainbow’s End. and by what means objects affect other objects. and CASE tools. a system developer can design reusable components for faster system implementation and decreased development cost. How can you classify companies based on their mix of products and services? Traditionally. objectoriented (O-O) analysis combines data and the processes that act on the data into things called objects. O-O analysis uses object models to represent data. compared with structured analysis. a large retail chain. including top managers. Thinking back. services. the interviewer mentioned that MultiTech uses structured analysis and relies heavily on modeling. O-O methods are more flexible. and technical resources to customers. Many analysts believe that. includes companies that depend on the Internet as a primary business channel. Today’s systems include enterprise computing systems. business support systems. all employees. gives employees more responsibility and accountability. and realistic in today’s dynamic business environment. use office systems. efficient. rather than using traditional business channels. This trend. Some companies offer a mix of products. Many companies find that empowerment leads to better employee motivation and increased customer satisfaction. companies were identified as production-oriented or service-oriented. What types of information systems might a large company use? Large companies require many different types of information systems. Internet-dependent companies. also called dot-com firms. and user productivity systems. During the meeting. it is more useful to identify a system by its functions and features. 4 Rainbow’s End Interview Situation: Your MultiTech interview seemed to go well. base their primary business on a commercial (. . you decide to review some IT terms and concepts. information. By describing the objects (data) and methods (processes) needed to support a business operation.com) Web site. knowledge management systems. Now.

Systems analysts must draw critical facts from a written summary. A sample organization chart is shown in the following figure. systems analysts construct and review prototypes for larger systems. CASE tools provide an overall framework for systems development and support a wide variety of design methodologies. test. 4. Sixth Edition 2. A prototype can serve as an initial model that is used as a benchmark to evaluate the completed system. Just as an aircraft manufacturer tests a new design in a wind tunnel. What is prototyping and why is it important? Prototyping involves the creation of an early working version of the information system or its components. Many CASE tools can be used to build prototypes and generate code modules that speed up implementation. or the prototype itself can develop into the final version of the system. including structured analysis and objectoriented analysis. and user interfaces before final decisions are made. object.Systems Analysis and Design. to help systems analysts develop and maintain information systems. ANSWERS TO CASE STUDIES New Century Health Clinic 1. output. For example. developers use CASE tools to maintain design integrity. Page 11 of 21 What is a CASE tool and what does it do? Computer-aided systems engineering (CASE) is a technique that uses powerful programs. entity-relationship diagrams. you can click the Insert Diagram or Organization Chart button on the Drawing toolbar. If you have an older version of Word. Prototyping tests system concepts and provides an opportunity to examine input. Create an organization chart of New Century’s office staff by using Microsoft Word or a similar program. and process models. manage a complex project. you can click Insert – Object – MS Organization Chart. If you have Microsoft Word 2003 or Microsoft Word 2002. use cases. but it is necessary to identify the functions. 3. and unified modeling language. Either way. process. then click the Organization Chart button. and modify. data. Your students will want to refer to this chart in later chapters. CASE tools can boost IT productivity and improve the quality of the finished product. The job titles are not important. . What is modeling and how is it done? Modeling produces a graphical representation of a concept or process that systems developers can analyze. A systems analyst can describe and simplify an information system by using a set of business. prototyping speeds up the development process significantly. Modeling involves various techniques. and generate a wide variety of business. and data models. and creating an organization chart requires students to practice their analytical skills. called CASE tools. or you can draw it by hand. network. such as data flow diagrams.

a business support system. and forecast future staffing needs. and insurance claim. Introduction to Systems Analysis and Design N e w C e n t u r y H O f f i c e S t a f f A O n i t a D a f f i c e M v e a n n a p g o e r t r e a l t h C l i n i c F A r e d c c o B u r So w u sn a n G T i of f mo r d C n P t i na tg i e n t I Rn s e u c r o a r n d a p L a i s l e a t t S i u Cn ga r l a c s eA p P p r o ci n Se t smu s p e i np n gl t i es H s e & r r a A r a d m i n 2. A business support system could be used to analyze provider workloads. 4. and explain how the system would benefit the clinic.and medium-size companies. For each type of system. provide a specific example. or Internet-based solutions? Explain your answers. vertical and horizontal system packages. A user productivity system would increase office efficiency and improve patient satisfaction. payment. This system would reduce administrative costs. During the systems development process. Explain how New Century might use a transaction processing system. Identify at least three business processes that New Century performs. and a user productivity system. which are typical of many small. should New Century consider any of the following: B2B. These include managing customer . and explain who is responsible for the specific tasks.Page 12 of 21 Chapter 1. Business processes and the person responsible are: Business Process Prepare office payroll Handle tax reporting Handle profit distribution Maintain patient records Handle insurance reporting Handle accounting Manage appointment book Make patient reminder calls Prepare daily appointment list Order office and clinic supplies Organize office and clinic supplies Person Responsible Fred Brown Fred Brown Fred Brown Susan Gifford Tom Capaletti Tom Capaletti Lisa Sung Lisa Sung Lisa Sung Carla Herrera Carla Herrera 3. speed up insurance reimbursement. The first step is to identify New Century’s current procedures. turnaround time for claims and payments. and provide controls and reports. New Century must develop computerized information systems for all critical operations as soon as possible. The clinic could utilize a transaction processing system to track each charge.

more effective internal messaging Faster transmission and ordering speeds insurance claim processing/order fulfillment Inventory Vertical or horizontal Horizonta l Track inventories of office and clinic supplies Generate employee checks and federal and state tax forms. send monthly bills/statements to patients and insurance companies. manage profit distribution to partners Internal and external messaging Transmit forms to insurance companies. provide faster. accounts receivable (patient and insurance billing). Also. generate a purchases journal Benefit Identify overdue accounts and credit risks. faster. there probably are opportunities to exchange claim information and payment status using EDI. provide more effective management of current liabilities Obtain real-time inventory data. improve cash flow. more accurate billing. determine cost of completing jobs. order office and clinic supplies Payroll Voice mail Horizonta l Horizonta l Fax . The following table shows some possible systems that might be considered.Systems Analysis and Design. Because New Century deals with many insurance companies. minimize manual data entry. and human resources. increase profitability. better inventory management Monitor and control pay to individual employees. improve customer service. accounts payable. increase cash flow by reducing the time between goods sold/services rendered and payment Accounts payable Vertical or horizontal Increase clinic’s control over purchasing. payroll. System Accounts receivable Type of System Vertical or horizontal Use Track money owed the clinic for goods sold/services rendered. automatically generate reminder statements Send checks to suppliers. and handling inventory. New Century can consider vertical and horizontal packages that would support the clinic’s information management needs. scheduling production or services. Sixth Edition Page 13 of 21 (patient) records. allow for electronic funds transfer (direct deposit) into employee bank accounts Allow customers to contact office after hours. along with potential benefits.

budgets. procedures. provide more effective management of assets and liabilities Increase access to corporate and customer (patient) information. policies. profits. communicate with employers. and insurance firms) Plan and/or track costs. patient data. reduce paper flow Create letters. agendas. Introduction to Systems Analysis and Design Benefit More professional-looking documents via formatting features and templates. send/check status of deliveries. create Web page to market the clinic. inform prospective patients. real-time tracking data for orders E-mail Internet More efficient. while maximizing appointment times Increase access to records. easier editing Minimize scheduling conflicts. reduce paper flow Increase clinic’s control over costs. do business mailings Managing and tracking schedules. insurance firms Web-based Internet Better customer service. profits Scheduling . less expensive than long-distance calls . forms. memos. place prescription orders for patients. increase profitability. employers.g. and answer frequently asked questions Send reminder e-mails to patients. reduce paper. faxes.Page 14 of 21 System Word processing Type of System Horizonta l Use Chapter 1. allow for querying and filtering of records. budgets. newsletters. automated calendars Database manageme nt Vertical or horizontal Horizonta l Spreadshee ts Horizonta l Intranet Horizonta l Share data across the entire clinic (e. announcements) Order office and clinic supplies online. provide better organization in a single repository. provide efficient service. less expensive ordering. printing daily appointment lists Managing and providing access to customer records (patients. improve cash flow..

using Microsoft Word or a similar program. 1. he states that he is not so sure. Sometimes . Create an organization chart for Personal Trainer Company. Inc. Gray seems a bit skeptical. you can click Insert – Object – MS Organization Chart. which in turn includes various business processes. is Gray totally supportive of the new system? Why or why not? Do you agree with the way that Susan responds to Gray’s comments? Why or why not? Based on his comments. Sixth Edition System EDI Type of System Internet Use Track claim data and reimbursement status Benefit Page 15 of 21 Reduce administrative costs. you can click the Insert Diagram or Organization Chart button on the Drawing toolbar.Systems Analysis and Design. A few examples of business processes might include the following: Add new member Sell sporting goods Create fitness class Design training program for member Schedule fitness instructor Enter member charges Register member in fitness class Prepare monthly bills Sell health food products Apply member payments 2. Although he knows that Cassia wants more information support for the new operation. speed up insurance reimbursement. a teen center. based on the facts provided. If you have an older version of Word. child care. a pool. sporting goods. a snack bar. who will manage the new facility at the new “supercenter. Review the conversation between Susan and Gray. Each of these activities represents a major business function. In your opinion. and a computer cafe. According to Gray Lewis. and provide controls and reports Personal Trainer. child-fitness programs. If you have Microsoft Word 2003 or Microsoft Word 2002.” Personal Trainer will offer exercise equipment. then click the Organization Chart button. a health food store. Develop a business profile for Personal Trainer. A sample chart follows: Cassia Umi President Janet McDonald Finance Tai Sung Sales and Marketing Reed Cotter Operations Susan Park IT Consultant Gray Lewis Supercenter Manager 3. List at least three of Personal Trainer’s business processes. or you can draw it by hand.

Personal Trainer might achieve better inventory management and reduce its internal purchasing and communications costs.” In response to his comments. A sample answer follows: . as shown on page 15 and 16. But Gray knows that she was brought in by Cassia. The relationship between managers and the IT team is critical to a project’s success. suppliers. and use that information to plan future staffing and marketing decisions. a business support system might help Gray to identify fast-moving services and products. reduce costs. inventory control. not Gray’s boss. customers. based on data generated by the TP system. Students should recognize that an IT professional must work effectively with various levels within the organization. and accounting) to improve efficiency. From the meeting discussion. Develop a business profile for Original Kayak Adventures. In the textbook. By opening up B2B links with its suppliers. For example. Personal Trainer will certainly use transaction process in its day-to-day operations. or user productivity? Why or why not? What opportunities might Personal Trainer have for Web-based B2C transactions in the future? What about B2B? With a dozen or more fitness centers. Enterprise computing also improves data security and reliability by imposing a company-wide framework for data access and storage. provide online class registration. and it would appear that Susan is trying hard to get off on the right foot in her meeting with Gray. resources. and serve its customers better. and the firm could benefit significantly from using a business support system to help mangers make key decisions. sales. confidence and management support. Personal Trainer also could examine opportunities for B2B commerce in its dealings with the suppliers of products or services that it purchases. Personal Trainer might not be large enough to benefit from a knowledge management system. transaction processing. services. it is clear that Cassia wants members to have online access to their fitness programs. The profile should include information about OKA’s business activities. 4. Internet access would be an example of B2C commerce. Should Personal Trainer consider any of the following systems: enterprise computing. knowledge management. and future direction. reduce expenses. customers. but the company certainly can use user productivity systems to empower its employees. and potential opportunity to engage in e-commerce. and help managers make key decisions. Susan must be courteous and discreet — she is an outside consultant. Also.Page 16 of 21 Chapter 1. products. processes. Introduction to Systems Analysis and Design managers like Gray are reluctant to embrace major changes in IT management. which would give Personal Trainer the ability to sign up new members. in order to gain trust. business support. Personal Trainer might be ready for a company-wide approach to managing its IT resources. constraints. A further clue is his statement about not wanting to “reinvent the wheel. Original Kayak Adventures 1. organization. which Gray seems to accept. Susan offers a specific approach. Enterprise computing and ERP systems allow a company to integrate its primary functions (such as production. organization. The first step is to create an outline using the facts presented in the background statement. and explore new markets for its services. students learn that a business profile defines a company’s overall functions. competitors. services. who is Gray’s boss.

Competitors No other Kayak rental firms operate within 20 miles of OKA’s location. OKA will better understand the needs of its customers and gauge the potential of promotions. updating kayak fleet data. John Caputo. Sixth Edition Page 17 of 21 Functions OKA has three main business functions: kayak rentals. special discounts. creating schedules. and it seems clear that outside assistance will be required. and Janet Jacobs. Organization The organization chart includes Edie Caputo. OKA performs various business processes. and so on. Customers OKA’s business is split evenly between customers with reservations and walk-in customers. instruction. billing. a local college student. OKA does not sell products. displaying kayak availability. Edie Caputo would like to offer a selection of books and videos about kayaking and eco-tourism. These two groups may have different profiles and might respond differently to marketing and pricing policies. OKA might consider other services. Future Direction OKA appears to be doing well after two years in business. Processes To support its business functions. such as kayak repair and maintenance. Suppliers The background information does not mention OKA’s suppliers. and Elderhostel tours. The Caputos would like to . If the business expands. Based on the background statement. Also. and maintaining an inventory of accessory and safety equipment. Students can assume that OKA deals with wholesale sources for kayaks and marine equipment. instruction. a partial list might include entering reservations. instruction. OKA offers three different services (rentals. kayak sales and brokerage. With better information. and guided tours) that appeal to different customers. Constraints John and Edie have been too busy to update the system. and guided tours. and guided tours. updating the OKA Web site. and these would have to be discussed in an initial meeting. expansion of the OKA Web site to share more information about kayaking. Products At this time.Systems Analysis and Design. Services OKA’s offers kayak rentals. Edie handles most of the computer work at this time. Nothing is known about budget or time constraints.

Edie is considering new business functions. these systems provide some business support. The main objective is to show the events. . but there are many ways to develop a graphical model. Together with the visible display of kayak availability. Additionally. advertising effectiveness. List OKA’s main functions and business processes. the OKA’s information systems do not support the firm’s current business activities and will be unable to support future objectives. such as adding books and videos. customer profiles. and freehand. A business model graphically represents business functions that consist of business processes. but they lack decision support and what-if capability. Students can use Figure 1-11 on page 8 as a sample. including CASE tools. drawing programs. and they realize that they need more information in order to plan for the future. What types of information systems does OKA use? Do these systems support its current and future business objectives? Why or why not? The notebook entries represent a manual type of transaction processing system. including possible events. Answers to this assignment will vary depending on the process selected. subprocesses. rental patterns. An example follows: PROCESS: ENTER RESERVATION Subprocesses Event: Receive reservation request Check kayak availability Obtain customer data Result: Completed reservation Enter reservation data 3. and results. Introduction to Systems Analysis and Design see the business grow. and results. and the transaction data is managed by the Access database.Page 18 of 21 Chapter 1. The Caputos would like more information about scheduling. Clearly. A business support system with decision support features would enable the Caputos to examine potential business opportunities by creating business models and using what-if analysis. which is a user productivity tool. processes. 2. and future business opportunities. Edie Caputo also uses an inexpensive accounting system. Draw a model of an OKA business process.

and that objects have characteristics called properties. instruction. OKA treats reservations as a class. or guided tour). thing. and a kayak number (to assure that a specific kayak is “booked”). a type of activity (rental. a reservation date. .Systems Analysis and Design. or event. which is a collection of similar objects. Because an object can represent a person. a reservation can be represented as an object. Based on the background information provided. a customer number or name that will be associated with this reservation. The properties of a reservation object might include a reservation number (to identify the reservation uniquely). what are some properties of reservation objects? Students should understand that an object is a member of a class. Sixth Edition Page 19 of 21 4. From an object-oriented viewpoint.

customers with past due balances. Limited (SWL) 1. In considering entrylevel systems analysts. and manufacturing operations. A business support system linked to the TP system could highlight slow. SWL is growing rapidly and will expand its IT operations to support business needs. and accounting) to improve efficiency. business support. Some companies have been disappointed in the time. These systems simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied. Programming experience certainly is desirable. but might not be essential if the new systems analyst has some experience in working with information systems. and makes a deduction from inventory. Introduction to Systems Analysis and Design ANSWERS TO CHAPTER CAPSTONE CASE: SoftWear. Enterprise computing also improves data security and reliability by imposing a company-wide framework for data access and storage. EDRP does have some risk. The main objective of enterprise computing is to integrate a company’s primary functions (such as production. which will depend upon the systems solutions that are selected. The ability to understand business information needs and work effectively with users will be important and should be mentioned. Answers will vary depending on what job posting examples the student located on the Internet. SWL is a medium-size company that uses a combination of centralized mainframe processing and networked PCs. money. services. and inventory levels that need adjustment. an ERP environment could provide a ready-made framework for IT systems. sales. marketing.or fast-moving items. but the company should carefully examine the costs and benefits to determine whether such a system would be feasible. This would be very important in SWL’s sales. If SWL expands in the future. when SWL sells merchandise to a customer. generate information needed to manage and control business processes. updates the customer’s balance. Many firms use knowledge management systems to support consumers and find answers to frequently asked questions. a transaction processing system records the sale. Write an employment advertisement for a new systems analyst position at SWL. Other specific educational or experience requirements will vary. SWL will be looking for people with strong communication. and provide information that leads to better decision making. a knowledge management system and related knowledge base might be a helpful tool. Should SWL consider any of the following systems: ERP. Knowledge management systems: Compared to ERP and business support systems. and consider SWL’s business profile when you write the advertisement. and help managers make key decisions. Business support systems: SWL certainly could take advantage of business support systems that provide job-related information support to users at all levels of a company. it is not as clear whether SWL could use a knowledge management system. 2. These systems can analyze transactional data. however. Perform Internet research to locate examples of advertisements for systems analysts. This information would be extremely valuable to SWL users and managers. and analytical skills.Page 20 of 21 Chapter 1. interpersonal. or knowledge management? Why or why not? ERP systems: SWL probably would be a good candidate for and ERP strategy. It is probably too early to identify specific technical skills. inventory control. . Based on the facts in the case study. reduce costs. For example. and commitment necessary to implement ERP successfully. If SWL expands into a Web-based business.

spreadsheets. Sixth Edition Page 21 of 21 3. and high-speed Internet access. and mitigate risks. presentation graphics. distributors. reduce costs. increase procurement efficiencies. SWL also can empower operational employees who use TP systems by giving them better technology and tools that help reduce repetitive nonessential functions and boost productivity. and collaborate. obtain instant information about market prices and availability. sellers. Empowerment gives employees more responsibility and accountability. automated calendars. desktop publishing. SWL should consider using RFID technology.Systems Analysis and Design. . which uses high-frequency radio waves to track physical objects and facilitate inventory management and control. Empowerment is directly linked to user productivity. and also access B2B sites where buyers. they are more productive. such as groupware. database management. and manufacturers transact business. If a user is more productive. B2B enables a company to access the global marketplace. more effective. Human resources studies show that when employees feel empowered. SWL could use EDI to establish links with long-term partners. voice mail. and more motivated. email. company intranets. fax. and tries to be even more productive. exchange information. he or she feels empowered. Should SWL consider ways to increase a sense of empowerment among its employees? Why or why not? Could user productivity software play a role in that effort? How? SWL certainly should increase the sense of empowerment among its employees. As part of it automated B2B strategy. video conferencing. What opportunities might SWL have for Web-based B2B transactions in the future? SWL certainly should use B2B strategies as a key to its relationship with its suppliers and wholesale customer. word processing. Many companies provide employees at all levels with technology that improves productivity. 4.

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