MODULE 2

Unit 3: Systems Analysis and Design

See video Lesson03InformationSystems.mp4

LESSON OBJECTIVES:

1. Discuss the impact of information technology on business strategy and success.

2. Define an information system and its components.
3. Explain how profiles and models can represent business functions and operations.
4. Explain how the Internet has affected business strategies and relationships.
5. Identify various types of information systems and explain who uses them.

Going over the technologies in the past and how it has evolved to the technologies we
have in the present gave us an idea of what is possible in the future. It is with the creativity and
ingenuity of us, human beings, that we are able to make sense of technological developments
and turn them into productivity boosting tools.
But technologies are not developed to match exactly what every person needs. After all,
each person has something different to do and to work on. It is thus important for these
technologies to be transformed into something that is geared towards making every person
productive despite the difference in their needs. Technologies are being specialized. So how
exactly does these technologies work?

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. Information technology (IT) is
the application of a combination of hardware and software used to retrieve, store, transmit and
manipulate data, often in the context of a business or other enterprise.
Data are facts that are recorded and stored. Information is processed data used in decision

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 making. The value of information is the benefit produced by the information minus the cost of
producing it.

A System is a set of two or more interrelated components interacting to achieve a goal.

Information Systems

● Set of interrelated components

● Collect, process, store, and distribute information
● Support decision making, coordination, and control
● May also help analyze problems, visualize complex subjects and create new
products

Information System Components

● Hardware – tangible aspect of a computer system

● Software – programs and other operating information used by a computer (systems,
application, enterprise, horizontal system, vertical systems, legacy systems)
● Data - is the raw material that an information system transforms into useful information
● Processes - describes the tasks and business functions that users, managers, and IT staff
members perform to achieve specific results. Processes are the building blocks of an
information system because they represent actual day-to-day business operations.
● People - those who have an interest in an information system are called stakeholders.
Stakeholders include the management group responsible for the system, the users
(sometimes called end users) inside and outside the company who will interact with the
system, and IT staff members, such as systems analysts, programmers, and network
administrators who develop and support the system.

Who develops Information Systems?

● Traditionally, a company either developed its own information systems, called in-house
applications, or purchased systems called software packages from outside vendors.
● Today, the choice is much more complex. Options include Internet-based application
services, outsourcing, custom solutions from IT consultants, and enterprise-wide software
strategies.

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 Systems Analysis and Design
Systems Analysis and Design is a step-by-step process for developing high-quality
information systems.

Systems Analyst plans, develops, and maintains information systems.

Business and Information Systems

With the different technological advancements, businesses have adopted newer

processes and have upgraded their business models
● Brick-and-mortar - refers to a traditional street-side business that offers products and
services to its customers face-to-face in an office or store that the business owns or rents.
● Click-and-mortar - Click and mortar is a type of business model that has both online and
offline operations, which typically include a website and a physical store.
● Click - Click-only companies are those companies who have a website/online presence
without a physical store. They sell their products through their website only.

The Internet has drastically reduced the intermediaries within a transaction. Internet-based
commerce is called e-commerce (electronic commerce) or I-commerce (Internet commerce). The
E-commerce includes two main sectors: B2C (business-to-consumer) and B2B (business-to-
business).

B2C (Business-to-Consumer)
● Using the Internet, consumers can go online to purchase an enormous variety of products
and services. This new shopping environment allows customers to do research, compare
prices and features, check availability, arrange delivery, and choose payment methods in
a single convenient session.

B2B (Business-to-Business)
● Business-to-business (B2B), also called B-to-B, is a form of transaction between
businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a
retailer.

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 Business and Information Systems

In the past, IT managers divided systems into categories based on the user group the
system served. Categories and users included office systems (administrative staff), operational
systems (operational personnel), decision support systems (middle-managers and knowledge
workers), and executive information systems (top managers). Today, traditional labels no longer
apply. For example, all employees, including top managers, use office productivity systems.
Similarly, operational users often require decision support systems. As business changes,
information use also changes in most companies. Today, it makes more sense to identify a system
by its functions and features, rather than by its users.

Examples of Information Systems according to support provided

● Inventory Control (TPS)
● Reservations (TPS, MIS)
● Customer Order Processing / Point-of-Sale (TPS)

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 ● Warranty Claim Processing (TPS)
● Records Management (MIS)
● Enrollment System (TPS)
● Attendance Monitoring (MIS)
● Payroll (TPS)
● Queuing (TPS)

WHAT INFORMATION DO USERS NEED?

Corporate organizational structure has changed considerably in recent years. As part of

downsizing and business process reengineering, many companies reduced the number of
management levels and delegated responsibility to operational personnel. Although modern
organization charts tend to be flatter, an organizational hierarchy still exists in most companies.
A typical organizational model identifies business functions and organizational levels, as shown
in the figure below. Within the functional areas, operational personnel report to supervisors and
team leaders. The next level includes middle managers and knowledge workers, who, in turn,
report to top managers. In a corporate structure, the top managers report to a board of directors
elected by the company’s shareholders.

Top managers
● Strategic plans

Middle Managers and Knowledge Workers

● Middle managers provide direction, necessary resources, and performance feedback to
supervisors and team leaders
● Knowledge workers include professional staff members such as systems analysts,
programmers, accountants, researchers, etc.

Supervisors and Team Leaders

● Oversee operational employees and carry out day-to-day functions

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 Operational Employees
● Operational employees include users who rely on TP systems to enter and receive data
they need to perform their jobs.

ROLE IN THE PROJECT PROPOSAL

System Analyst
❏ 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

SYSTEM DEVELOPMENT
System development is the process of defining, designing, testing and implementing a software
application.
A system development project includes a number of different phases, such as feasibility analysis,
requirements analysis, software design, software coding, testing and debugging, installation and
maintenance.

System Development Methods

Systems Development Life Cycle
❏ Predictive Approach
❏ Use of Process Models
❏ Process-centered technique

System Development Life Cycle(SDLC)

1. Planning – Initial stage, conduct preliminary investigation

2. Analysis – assess the requirements needed and provide documentation
3. Design – identify all inputs, processes, and outputs
4. Implementation – proposed system is constructed, all entities have their own functions
5. Maintenance – verification of the implementation of proposed system

ROLES DEFINED

System Analyst
Responsibilities – Translate business requirements into practical IT projects to meet needs
Required Skills and Background – Solid communication skills and analytic ability

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

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)
Database Administration
● Database design, management, security, backup, and user access
Network Administration
● Includes hardware and software maintenance, support, and security
Web Support
● Webmasters

Information Technology Department in Project Evaluation

Management leadership and information technology are linked closely, and remarkable
changes have occurred in both areas.
Today, systems development is much more team oriented.
Although team-oriented development is the norm, some companies see the role of the IT
department as a gatekeeper.

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,
millions of money.

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
For a detailed discussion of the Introduction to Systems Analysis and Design, watch the following:
Lesson 03 Introduction to Systems Analysis and Design Part 1
Lesson 03 Introduction to Systems Analysis and Design Part 2
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means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited.