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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
2
Chapter Objectives
 Identify various types of information systems
and explain who uses them
 Distinguish between structured analysis,
object-oriented analysis, and agile methods
 Compare the traditional waterfall model
with agile methods and models
 Discuss the role of the information
technology department and the systems
analysts who work there
3
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
Figure 1-1
4
The Impact of Information Technology
 Information Technology (IT)
– 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
5
 The Future of IT
– Will see robust growth for at least a decade
– The greatest need will be for systems
analysts, network administrators, data
communications analysts, and software
engineers
For more information about

Figure 1-3
the Future of IT visit
scsite.com/sad8e/more,
locate Chapter 1, and then
click the Future of IT link.
6
 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
Figure 1-4
7
 Who develops Information Systems?
– In-house applications
– Software packages
– Internet-based application services
– Outsourcing
– Custom solutions
– Enterprise-wide software strategies
– How versus What
8
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
Figure 1-5 Figure 1-6
9
 Information is data that has been
transformed into output that is valuable to
users
 Information systems have five key
components: hardware, software, data,
processes, and people
10
 Hardware
– Is the physical layer of the information
system
– Moore’s Law
For more information about Figure 1-9

Moore’s Law visit
scsite.com/sad8e/more, locate
Chapter 1, and then click the
Moore’s Law link.
11
 Software
– System software
– Application software
– Enterprise applications
– Horizontal system
– Vertical system
– Legacy systems
12
 Data
– Is the raw material that an information
system transforms into useful information
– Tables store data
– By linking the tables, the system can extract
specific information
Figure 1-10
13
 Processes
– Describe the tasks and business functions
that users, managers, and IT staff members
perform to achieve specific results
 People
– Stakeholders
– Users, or end users
14
Understanding The Business
 Business Process Modeling
 Business Profile
 Business Models
– Business model
– Business process
– Business process reengineering (BPR)
15
Understanding The Business
 New Kinds of Companies
– Production-oriented
– Service-oriented
– Internet-dependent
– Dot-com (.com)
– Brick-and-mortar
Figure 1-13
16
Impact of the Internet
 E-Commerce or I-Commerce
 B2C (Business-to-Consumer)
 B2B (Business-to-Business)
– EDI
– Extensible markup language (XML)
– Supplier relationship management (SRM)
Figure 1-14
For more information about For more information about
Electronic Commerce visit XML visit
scsite.com/sad8e/more, scsite.com/sad8e/more, locate
locate Chapter 1, and then click Chapter 1, and then click the
the Electronic Commerce link. Extensible Markup Language 17
link..
Impact of the Internet
 Web-Based System Development
– WebSphere
– .NET
– Web services
– Internet-based systems involve various
hardware and software designs
– Career opportunities will expand
Figure 1-15
18
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
How Business Uses Information
Systems
 Today, it makes more sense to identify a
system by its functions and features, rather
than by its users
– Enterprise computing systems
– Transaction processing systems
– Business support systems
– Knowledge management systems
– User productivity systems
20
How Business Uses Information Systems
 Enterprise computing systems
– Support company-wide operations and data
management requirements
– Enterprise resource planning (ERP)
– Many hardware and software vendors target
the enterprise computing market

Enterprise Resource Planning
visit scsite.com/sad8e/more,
locate Chapter 1, and then click
the Enterprise Resource 21
Planning link.
 Transaction processing systems
– Involve large amounts of data and are
mission-critical systems
– Efficient because they process a set of
transaction-related commands as a group
rather than individually
Figure 1-17
22
 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

Figure 1-18
RFID, visit
RFID link.
23
 Knowledge management systems
– Called expert systems
– Simulate human reasoning by combining a
knowledge base and inference rules
– Many knowledge management systems use
technique called fuzzy logic

knowledge management
systems, visit
Knowledge Management 24
Systems link.
 User productivity systems
– Technology that improves productivity
– Groupware
 Information systems integration
– Most large companies require systems that
combine transaction processing, business
support, knowledge management, and user
productivity features
25
Information System Users and Their
Needs
 A systems analyst must understand the
company’s organizational model to recognize
who is responsible for specific processes and
decisions and to be aware of what
information is required by whom
Figure 1-20
26
Information System Users and Their
Needs
 Top managers
– Strategic plans
 Middle Managers and Knowledge Workers
 Supervisors and Team Leaders
 Operational Employees
– Empowerment
27
Systems Development Tools
 Systems analysts must know how to use a
variety of techniques such as modeling,
prototyping, and computer-aided systems
engineering tools to plan, design, and
implement information systems.
 Systems analysts work with these tools in a
team environment
28
 Modeling
– Business model
– Requirements model
– Data model
– Object model
– Network model
– Process model
Figure 1-21
29
 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
30
 Computer-Aided Systems Engineering (CAS
E)
Tools
– Also called
computer-aided software engineering
– CASE tools
– Can generate program code, which speeds
the implementation process
CASE Tools visit
CASE Tools link.
31
Overview of Systems Development
Methods
 The most popular alternatives are
structured analysis, which is a traditional
method that still is widely used, and
object-oriented analysis (O-O), which is a
newer approach that many analysts prefer,
and agile methods, also called
adaptive methods
 Understand the various methods and the
strengths and weaknesses of each approach
32
Methods
 It is not unusual for system developers to mix
and match methods
 People, tasks, timetables, and costs must be
managed efficiently
 Project management
Figure 1-23
33
Methods
 Structured Analysis
– Systems development life cycle (SDLC)
– Predictive approach
– Uses a set of process models to describe a
system graphically
– Process-centered technique
– Waterfall model
Figure 1-24
34
Methods
– Deliverable or end product
– 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
– Adjacent phases usually interact
Figure 1-25
35
Methods
– The SDLC model usually includes five steps
• Systems planning
• Systems analysis
• Systems design
• Systems implementation
• Systems support and security
36
Methods
– Systems Planning
• Systems planning phase
• Systems request – begins the process & describes
problems or desired changes
• Purpose of this phase is to perform a
preliminary investigation
• Key part of preliminary investigation is a
feasibility study
37
Methods
– Systems Analysis
• Systems analysis phase
• First step is requirements modeling, where you
investigate business processes and document
what the new system must do to satisfy users
• Deliverable is the
System requirements document
38
Methods
– Systems Design
• Systems design phase
• Identify necessary outputs, inputs, and processes
• Design internal and external controls
• Determine the application architecture
• Deliverable is system design specification
• Management and user involvement is critical
39
Methods
– Systems Implementation
• Systems implementation phase
• New system is constructed
• Programs are written, tested, and documented,
and the system is installed
• Includes an assessment, called a
system evaluation
40
Methods
– Systems Support and Security
• Systems Operation, Support, and Security phase
• A well-designed system must be secure, reliable,
maintainable, and scalable
• Most information systems need to be updated
significantly or replaced after several years of
operation
41
Methods
 Object-oriented Analysis
– Combines data & processes that act on the
data into things called objects
– Object is a member of a class
– Objects possess properties
– Methods change an object’s properties
Figure 1-26
42
Methods
 Object-Oriented Anaylsis
– A message requests specific behavior or
information from another object
– Usually follow a series of analysis and
design phases that are similar to the SDLC
– Interactive model
Figure 1-27
43
Methods
 Agile Methods
– Are the newest development
– Emphasizes continuous feedback
– Iterative development
– Agile community has published the
Agile Manifesto
– Spiral model
For more information about agile

systems development methods, visit
Chapter 1, and then click the Agile
Methods link.
44
Methods
 Agile Methods
– Agile process determines the end result
– Other adaptive variations and related
methods exist
– Two examples are Scrum and
Extreme Programming (XP)
– Analysts should understand the pros and
cons of any approach before selecting a
development method
45
Methods
 Other Development Methods
– IT departments have long sought to avoid
systems that were developed without
sufficient input from users
– Joint application development (JAD)
– Rapid application development (RAD)
46
Methods
 Other Development Methods
– Might encounter other systems development
techniques
– Rational Unified Process (RUP®)
– Microsoft Solutions Framework (MSF)

Microsoft Solutions Framework,
visit scsite.com/sad8e/more, locate
Figure 1-32
Microsoft Solutions Framework
link. 47
Systems Development Guidelines
 Develop a project plan
 Involve users and listen carefully to them
 Use project management tools to identify
tasks and milestones
 Develop accurate cost and benefit
information
 Remain flexible
Figure 1-33
48
Information Technology Department
 The information technology (IT) department
develops and maintains a company’s
information systems.
 The IT group provides technical support
 These functions overlap considerably and
often have different names in different
companies
Figure 1-34
49
 Application Development
– Teams consisting of users, managers and IT
Staff members
 Systems Support and Security
– Deployment team
 User Support
– Help desk or information center (IC)
50
 Database Administration
– Database design, management, security,
backup, and user access
 Network Administration
– Includes hardware and software
maintenance, support, and security
 Web Support
– Webmasters
51
 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
52
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 systems analysis work on an as-
needed basis
53
 Responsibilities
– Translate business requirements into IT
projects
 Required Skills and Background
– Solid technical knowledge, strong oral and
written communication skills and analytic
ability, and an understanding of business
operations and processes.
Figure 1-35
54
 Certification
– Important credential
 Career Opportunities
– Job titles
– Company organization
– Company size
– Corporate culture
– Salary, location, and future growth
55
Chapter Summary
 IT refers to the combination of hardware
and software resources that companies use to
manage, access, communicate, and share
information
 The essential components of an information
system are hardware, software, data,
processes, and people
 Most companies offer a mix of products,
technical and financial services, consulting,
and customer support
56
Chapter Summary
 Information systems are identified as
enterprise computing systems, transactional
processing or operational systems, business
support systems, knowledge management
systems, or user productivity systems
 Organization structure includes top
managers, middle managers and knowledge
workers, supervisors and team leaders
57
Chapter Summary
 Systems analysts use modeling, prototyping,
and computer aided systems engineering
(CASE) tools
 Three popular system development
approaches are structured analysis, object-
oriented analysis (O-O), and agile methods,
also called adaptive methods
58
Chapter Summary
 Regardless of the development strategy,
people, tasks, timetables, and cost must be
managed effectively using project
management tools
 The IT department develops, maintains and
operates a company’s information systems
59
Chapter Summary
 Systems analysts need a combination of
technical and business knowledge, analytical
ability, and communication skills
 Systems analysts need to consider salary,
location, and future growth potential when
making a career decision
60
Test Yourself
1. What is the role of a systems analysis and

design?
61
Test Yourself
1. What is the role of a systems analysis and

design?
– Systems analysis and design is a step-by-
step process for developing high-quailty
information systems.
62
Test Yourself
2. What are the five key components of

information systems?
63
Test Yourself
2. What are the five key components of

information systems?
Hardware
Software
Data
Processes
People
64
Test Yourself
3. How are business information systems

identified?
65
Test Yourself
3. How are business information systems

identified?
– Functions and features
66
Test Yourself
4. True/False: WebSphere is a strategy

maintained and managed by Microsoft.
67
Test Yourself
4. True/False: WebSphere is a strategy

maintained and managed by Microsoft.
False
68
Test Yourself
5. SDLC is an example of a ________ method,

while Extreme Programming is an example
of an __________ method.
69
Test Yourself
5. SDLC is an example of a structured analysis

method, while Extreme Programming is an
example of an agile approach.
70
Test Yourself
6. CASE tools are:

a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
71
Test Yourself
6. CASE tools are:

a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
72
Test Yourself
7. Objects, classes, and methods are all terms

used in structured/object oriented
methodologies
73
Test Yourself
7. Objects, classes, and methods are all terms

used in object oriented methodologies
74
Test Yourself
8. What are the phases of the systems

development life cycle?
75
Test Yourself
8. What are the phases of the systems

development life cycle?
– Systems planning
– Systems analysis
– Systems design
– Systems implementation
– Systems support and security
76
Test Yourself
9. List at least three of the six functions of a

typical IT department
77
Test Yourself
9. List at least three of the six functions of a

typical IT department
1. Application development
2. Systems support
3. User support
4. Database administration
5. Network administration
6. Web support
78
Test Yourself
10. True/False: Certification is an important

credential that is valued by companies.
79
Test Yourself
10. True/False: Certification is a professional

credential that is valued by companies.
True
80
Systems Analysis & Design
8 Edition
th
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1. What is the role of a systems analysis and

1. What is the role of a systems analysis and

2. What are the five key components of

2. What are the five key components of

3. How are business information systems

3. How are business information systems

– Functions and features

4. True/False: WebSphere is a strategy

4. True/False: WebSphere is a strategy

5. SDLC is an example of a ________ method,

5. SDLC is an example of a structured analysis

6. CASE tools are:

6. CASE tools are:

7. Objects, classes, and methods are all terms

7. Objects, classes, and methods are all terms

8. What are the phases of the systems

8. What are the phases of the systems

9. List at least three of the six functions of a

9. List at least three of the six functions of a

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