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TECHNOLOGY &

INFORMATION
MANAGEMENT

SYAMSUL BAHRI, SKOM, MM


SESSION 1 :
INTRODUCTION OF INFORMATION SYSTEM
INTRODUCTION
• INFORMATION SYSTEM (IS):
• A SET OF INTERRELATED COMPONENTS THAT COLLECT,
MANIPULATE, AND DISSEMINATE DATA AND INFORMATION AND
PROVIDE FEEDBACK TO MEET AN OBJECTIVE

• BUSINESSES:
• CAN USE INFORMATION SYSTEMS TO INCREASE REVENUES AND
REDUCE COSTS

Fundamentals of Information Systems, Sixth Edition 3


INFORMATION CONCEPTS

• INFORMATION:
• ONE OF AN ORGANIZATION’S MOST VALUABLE RESOURCES
• OFTEN CONFUSED WITH THE TERM DATA

Fdamentals of Information Systems, Sixth Edition 4


DATA, INFORMATION, AND
KNOWLEDGE
• DATA:
• RAW FACTS

• INFORMATION:
• COLLECTION OF FACTS ORGANIZED IN SUCH A WAY THAT THEY
HAVE VALUE BEYOND THE FACTS THEMSELVES

• PROCESS:
• SET OF LOGICALLY RELATED TASKS

• KNOWLEDGE:
• AWARENESS AND UNDERSTANDING OF A SET OF INFORMATION

Fundamentals of Information Systems, Sixth Edition 5


Data, Information, and Knowledge
(continued)

Fundamentals of Information Systems, Sixth Edition 6


Data, Information, and Knowledge
(continued)

Fundamentals of Information Systems, Sixth Edition 7


Data, Information, and Knowledge
(continued)

Fundamentals of Information Systems, Sixth Edition 8


THE CHARACTERISTICS OF VALUABLE
INFORMATION
• IF AN ORGANIZATION’S INFORMATION IS NOT ACCURATE OR COMPLETE:
• PEOPLE CAN MAKE POOR DECISIONS, COSTING THOUSANDS, OR EVEN MILLIONS, OF
DOLLARS

• DEPENDING ON THE TYPE OF DATA YOU NEED:


• SOME CHARACTERISTICS BECOME MORE IMPORTANT THAN OTHERS

Fundamentals of Information Systems, Sixth Edition 9


Fundamentals of Information Systems, Sixth Edition 10
THE VALUE OF INFORMATION

• DIRECTLY LINKED TO HOW IT HELPS DECISION MAKERS ACHIEVE THEIR


ORGANIZATION’S GOALS
• VALUABLE INFORMATION:
• CAN HELP PEOPLE AND THEIR ORGANIZATIONS PERFORM TASKS MORE EFFICIENTLY
AND EFFECTIVELY

Fundamentals of Information Systems, Sixth Edition 11


WHAT IS AN INFORMATION SYSTEM?

• INFORMATION SYSTEM (IS) IS A SET OF INTERRELATED ELEMENTS THAT:


• COLLECT (INPUT)
• MANIPULATE (PROCESS)
• STORE
• DISSEMINATE (OUTPUT) DATA AND INFORMATION
• PROVIDE A CORRECTIVE REACTION (FEEDBACK MECHANISM) TO MEET AN OBJECTIVE

Fundamentals of Information Systems, Sixth Edition 12


What is an Information System?
(continued)

Fundamentals of Information Systems, Sixth Edition 13


INPUT, PROCESSING, OUTPUT, FEEDBACK

• INPUT:
• ACTIVITY OF GATHERING AND CAPTURING RAW DATA

• PROCESSING:
• CONVERTING DATA INTO USEFUL OUTPUTS

• OUTPUT:
• PRODUCTION OF USEFUL INFORMATION, USUALLY IN THE FORM OF DOCUMENTS AND REPORTS

• FEEDBACK:
• INFORMATION FROM THE SYSTEM THAT IS USED TO MAKE CHANGES TO INPUT OR PROCESSING
ACTIVITIES

Fundamentals of Information Systems, Sixth Edition 14


SESSION 2 :
COMPUTERE BASED INFORMATION SYSTEM
MANUAL AND COMPUTERIZED INFORMATION
SYSTEMS
• AN INFORMATION SYSTEM CAN BE:
• MANUAL OR COMPUTERIZED

• EXAMPLE:
• INVESTMENT ANALYSTS MANUALLY DRAW CHARTS AND TREND LINES TO ASSIST
THEM IN MAKING INVESTMENT DECISIONS

• COMPUTERIZED INFORMATION SYSTEMS:


• FOLLOW STOCK INDEXES AND MARKETS AND SUGGEST WHEN LARGE BLOCKS OF
STOCKS SHOULD BE PURCHASED OR SOLD

Fundamentals of Information Systems, Sixth Edition 16


COMPUTER-BASED INFORMATION SYSTEMS

• SINGLE SET OF HARDWARE, SOFTWARE, DATABASES, TELECOMMUNICATIONS,


PEOPLE, AND PROCEDURES:
• THAT ARE CONFIGURED TO COLLECT, MANIPULATE, STORE, AND PROCESS DATA INTO
INFORMATION

• TECHNOLOGY INFRASTRUCTURE:
• INCLUDES ALL HARDWARE, SOFTWARE, DATABASES, TELECOMMUNICATIONS, PEOPLE,
AND PROCEDURES
• CONFIGURED TO COLLECT, MANIPULATE, STORE, AND PROCESS DATA INTO INFORMATION

Fundamentals of Information Systems, Sixth Edition 17


Computer-Based Information Systems
(continued)

Fundamentals of Information Systems, Sixth Edition 18


COMPUTER-BASED INFORMATION SYSTEMS
(CONTINUED)
• HARDWARE:
• CONSISTS OF COMPUTER EQUIPMENT USED TO PERFORM INPUT, PROCESSING, AND OUTPUT
ACTIVITIES

• SOFTWARE:
• CONSISTS OF THE COMPUTER PROGRAMS THAT GOVERN THE OPERATION OF THE
COMPUTER

• DATABASE:
• ORGANIZED COLLECTION OF FACTS AND INFORMATION, TYPICALLY CONSISTING OF TWO
OR MORE RELATED DATA FILES

Fundamentals of Information Systems, Sixth Edition 19


COMPUTER-BASED INFORMATION SYSTEMS
(CONTINUED)
• TELECOMMUNICATIONS, NETWORKS, AND THE INTERNET:
• THE ELECTRONIC TRANSMISSION OF SIGNALS FOR COMMUNICATIONS

• NETWORKS:
• CONNECT COMPUTERS AND EQUIPMENT TO ENABLE ELECTRONIC COMMUNICATION

• INTERNET:
• WORLD’S LARGEST COMPUTER NETWORK, CONSISTING OF THOUSANDS OF
INTERCONNECTED NETWORKS, ALL FREELY EXCHANGING INFORMATION

Fundamentals of Information Systems, Sixth Edition 20


COMPUTER-BASED INFORMATION SYSTEMS
(CONTINUED)
• INTRANET:
• INTERNAL NETWORK THAT ALLOWS PEOPLE WITHIN AN ORGANIZATION TO
EXCHANGE INFORMATION AND WORK ON PROJECTS

• EXTRANET:
• NETWORK THAT ALLOWS SELECTED OUTSIDERS, SUCH AS BUSINESS PARTNERS AND
CUSTOMERS, TO ACCESS AUTHORIZED RESOURCES OF A COMPANY’S INTRANET

Fundamentals of Information Systems, Sixth Edition 21


COMPUTER-BASED INFORMATION SYSTEMS
(CONTINUED)
• PEOPLE:
• THE MOST IMPORTANT ELEMENT IN MOST COMPUTER-BASED INFORMATION SYSTEMS

• PROCEDURES:
• INCLUDE STRATEGIES, POLICIES, METHODS, AND RULES FOR USING THE CBIS

Fundamentals of Information Systems, Sixth Edition 22


SESSION 3 :
BUSINESS INFORMATION SYSTEM
BUSINESS INFORMATION SYSTEMS

• MOST COMMON TYPES OF INFORMATION SYSTEMS:


• THOSE DESIGNED FOR ELECTRONIC AND MOBILE COMMERCE, TRANSACTION
PROCESSING, MANAGEMENT INFORMATION, AND DECISION SUPPORT

• SOME ORGANIZATIONS EMPLOY:


• SPECIAL-PURPOSE SYSTEMS, SUCH AS VIRTUAL REALITY, THAT NOT EVERY
ORGANIZATION USES

Fundamentals of Information Systems, Sixth Edition 24


BUSINESS INFORMATION SYSTEMS
(CONTINUED)

Fundamentals of Information Systems, Sixth Edition 25


Business Information Systems (continued)

Fundamentals of Information Systems, Sixth Edition 26


ELECTRONIC AND MOBILE COMMERCE
• E-COMMERCE:
• ANY BUSINESS TRANSACTION EXECUTED ELECTRONICALLY
BETWEEN:
• COMPANIES (BUSINESS-TO-BUSINESS, B2B)
• COMPANIES AND CONSUMERS (BUSINESS-TO-CONSUMER, B2C)
• CONSUMERS AND OTHER CONSUMERS (CONSUMER-TO-CONSUMER,
C2C)
• BUSINESS AND THE PUBLIC SECTOR
• CONSUMERS AND THE PUBLIC SECTOR

Fundamentals of Information Systems, Sixth Edition 27


ELECTRONIC AND MOBILE COMMERCE
(CONTINUED)
• MOBILE COMMERCE (M-COMMERCE):
• THE USE OF MOBILE, WIRELESS DEVICES TO PLACE ORDERS AND CONDUCT BUSINESS

• E-COMMERCE:
• CAN ENHANCE A COMPANY’S STOCK PRICES AND MARKET VALUE

• ELECTRONIC BUSINESS (E-BUSINESS):


• USES INFORMATION SYSTEMS AND THE INTERNET TO PERFORM ALL BUSINESS-
RELATED TASKS AND FUNCTIONS

Fundamentals of Information Systems, Sixth Edition 28


Electronic and Mobile Commerce
(continued)

Fundamentals of Information Systems, Sixth Edition 29


SPECIALIZED BUSINESS INFORMATION SYSTEMS:
KNOWLEDGE MANAGEMENT, ARTIFICIAL INTELLIGENCE,
EXPERT SYSTEMS, AND VIRTUAL REALITY

• KNOWLEDGE MANAGEMENT SYSTEMS (KMSS):


• ORGANIZED COLLECTION OF PEOPLE, PROCEDURES, SOFTWARE,
DATABASES, AND DEVICES TO:
• CREATE, STORE, SHARE, AND USE THE ORGANIZATION’S
KNOWLEDGE AND EXPERIENCE

• ARTIFICIAL INTELLIGENCE (AI):


• COMPUTER SYSTEM TAKES ON CHARACTERISTICS OF HUMAN
INTELLIGENCE

Fundamentals of Information Systems, Sixth Edition 30


SPECIALIZED BUSINESS INFORMATION
SYSTEMS (CONTINUED)

Fundamentals of Information Systems, Sixth Edition 31


SPECIALIZED BUSINESS INFORMATION
SYSTEMS (CONTINUED)
• EXPERT SYSTEMS:
• GIVE COMPUTER ABILITY TO MAKE SUGGESTIONS AND FUNCTION LIKE AN EXPERT IN A
PARTICULAR FIELD

• VIRTUAL REALITY AND MULTIMEDIA:


• VIRTUAL REALITY:
• SIMULATION OF A REAL OR IMAGINED ENVIRONMENT THAT CAN BE EXPERIENCED VISUALLY
IN THREE DIMENSIONS
• MULTIMEDIA:
• CAN INCLUDE PHOTOS AND IMAGES, THE MANIPULATION OF SOUND, AND SPECIAL 3D EFFECTS

Fundamentals of Information Systems, Sixth Edition 32


SESSION 4 :
DEVELOPMENT SYSTEM
SYSTEMS DEVELOPMENT

• SYSTEMS DEVELOPMENT:
• THE ACTIVITY OF CREATING OR MODIFYING EXISTING BUSINESS SYSTEMS

• OUTSOURCING:
• ALLOWS A COMPANY TO FOCUS ON WHAT IT DOES BEST AND DELEGATE OTHER
FUNCTIONS TO COMPANIES WITH EXPERTISE IN SYSTEMS DEVELOPMENT

Fundamentals of Information Systems, Sixth Edition 34


SYSTEMS DEVELOPMENT (CONTINUED)

Fundamentals of Information Systems, Sixth Edition 35


SYSTEMS INVESTIGATION AND ANALYSIS

• GOAL OF SYSTEMS INVESTIGATION:


• TO GAIN CLEAR UNDERSTANDING OF THE PROBLEM TO BE SOLVED OR OPPORTUNITY
TO BE ADDRESSED

• SYSTEMS ANALYSIS:
• DEFINES THE PROBLEMS AND OPPORTUNITIES OF THE EXISTING SYSTEM

Fundamentals of Information Systems, Sixth Edition 36


SYSTEMS DESIGN, IMPLEMENTATION, AND
MAINTENANCE AND REVIEW
• SYSTEMS DESIGN:
• DETERMINES HOW NEW SYSTEM WILL WORK TO MEET BUSINESS NEEDS DEFINED DURING
SYSTEMS ANALYSIS

• SYSTEMS IMPLEMENTATION:
• ACQUIRING VARIOUS SYSTEM COMPONENTS DEFINED IN DESIGN STEP, ASSEMBLING THEM,
AND PUTTING THE NEW SYSTEM INTO OPERATION

• SYSTEMS MAINTENANCE AND REVIEW:


• CHECKS AND MODIFIES THE SYSTEM SO THAT IT CONTINUES TO MEET CHANGING BUSINESS
NEEDS

Fundamentals of Information Systems, Sixth Edition 37


Organizations and Information Systems

• ORGANIZATION:
• FORMAL COLLECTION OF PEOPLE AND OTHER RESOURCES ESTABLISHED TO
ACCOMPLISH A SET OF GOALS
• A SYSTEM
• CONSTANTLY USES MONEY, PEOPLE, MATERIALS, MACHINES AND OTHER EQUIPMENT,
DATA, INFORMATION, AND DECISIONS

Fundamentals of Information Systems, Sixth Edition 38


Organizations and Information Systems
(continued)

Fundamentals of Information Systems, Sixth Edition 39


Organizations and Information Systems
(continued)
• VALUE CHAIN:
• SERIES (CHAIN) OF ACTIVITIES THAT INCLUDES INBOUND
LOGISTICS AND WAREHOUSE AND STORAGE

• SUPPLY CHAIN MANAGEMENT (SCM):


• DETERMINES:
• WHAT SUPPLIES ARE REQUIRED FOR VALUE CHAIN
• WHAT QUANTITIES ARE NEEDED TO MEET CUSTOMER DEMAND
• HOW SUPPLIES SHOULD BE PROCESSED INTO FINISHED GOODS AND
SERVICES
• HOW SHIPMENT OF SUPPLIES AND PRODUCTS TO CUSTOMERS
SHOULD BE SCHEDULED, MONITORED, AND CONTROLLED

Fundamentals of Information Systems, Sixth Edition 40


Organizations and Information Systems
(continued)

Fundamentals of Information Systems, Sixth Edition 41


Organizations and Information Systems
(continued)

• CUSTOMER RELATIONSHIP MANAGEMENT (CRM) PROGRAMS:


• HELP COMPANIES MANAGE ALL ASPECTS OF CUSTOMER ENCOUNTERS
• CAN GET CUSTOMER FEEDBACK TO HELP DESIGN NEW PRODUCTS AND SERVICES

Fundamentals of Information Systems, Sixth Edition 42


ORGANIZATIONAL CULTURE AND CHANGE
• CULTURE:
• SET OF MAJOR UNDERSTANDINGS AND ASSUMPTIONS SHARED BY
A GROUP

• ORGANIZATIONAL CULTURE:
• MAJOR UNDERSTANDINGS AND ASSUMPTIONS
• INFLUENCES INFORMATION SYSTEMS

• ORGANIZATIONAL CHANGE:
• HOW ORGANIZATIONS PLAN FOR, IMPLEMENT, AND HANDLE
CHANGE

Fundamentals of Information Systems, Sixth Edition 43


USER SATISFACTION AND TECHNOLOGY
ACCEPTANCE
• TECHNOLOGY ACCEPTANCE MODEL (TAM):
• SPECIFIES THE FACTORS THAT CAN LEAD TO BETTER ATTITUDES
ABOUT THE INFORMATION SYSTEM

• TECHNOLOGY DIFFUSION:
• MEASURE OF HOW WIDELY TECHNOLOGY IS SPREAD
THROUGHOUT AN ORGANIZATION

• TECHNOLOGY INFUSION:
• EXTENT TO WHICH TECHNOLOGY PERMEATES A DEPARTMENT

Fundamentals of Information Systems, Sixth Edition 44


USER SATISFACTION AND TECHNOLOGY
ACCEPTANCE (CONTINUED)

Fundamentals of Information Systems, Sixth Edition 45


COMPETITIVE ADVANTAGE
• SIGNIFICANT AND (IDEALLY) LONG-TERM BENEFIT TO A
COMPANY OVER ITS COMPETITION
• CAN RESULT IN HIGHER-QUALITY PRODUCTS, BETTER
CUSTOMER SERVICE, AND LOWER COSTS

Fundamentals of Information Systems, Sixth Edition 46


FACTORS THAT LEAD FIRMS TO SEEK
COMPETITIVE ADVANTAGE
• THE FIVE-FORCES MODEL:
• RIVALRY AMONG EXISTING COMPETITORS
• THREAT OF NEW ENTRANTS
• THREAT OF SUBSTITUTE PRODUCTS AND SERVICES
• BARGAINING POWER OF BUYERS
• BARGAINING POWER OF SUPPLIERS

Fundamentals of Information Systems, Sixth Edition 47


STRATEGIC PLANNING FOR COMPETITIVE
ADVANTAGE
• STRATEGIES:
• COST LEADERSHIP
• DIFFERENTIATION
• NICHE STRATEGY
• ALTERING THE INDUSTRY STRUCTURE
• CREATING NEW PRODUCTS AND SERVICES
• IMPROVING EXISTING PRODUCT LINES AND SERVICE

Fundamentals of Information Systems, Sixth Edition 48


STRATEGIC PLANNING FOR COMPETITIVE
ADVANTAGE (CONTINUED)
• OTHER STRATEGIES:
• GROWTH IN SALES
• FIRST TO MARKET
• CUSTOMIZING PRODUCTS AND SERVICES
• HIRING THE BEST PEOPLE
• INNOVATION

Fundamentals of Information Systems, Sixth Edition 49


PERFORMANCE-BASED INFORMATION
SYSTEMS
• MAJOR STAGES IN THE USE OF INFORMATION SYSTEMS:
• COST REDUCTION AND PRODUCTIVITY
• COMPETITIVE ADVANTAGE
• PERFORMANCE-BASED MANAGEMENT

Fundamentals of Information Systems, Sixth Edition 50


Fundamentals of Information Systems, Sixth Edition 51
PRODUCTIVITY

• A MEASURE OF OUTPUT ACHIEVED DIVIDED BY INPUT REQUIRED


• HIGHER LEVEL OF OUTPUT FOR A GIVEN LEVEL OF INPUT MEANS GREATER
PRODUCTIVITY
• LOWER LEVEL OF OUTPUT FOR A GIVEN LEVEL OF INPUT MEANS LOWER
PRODUCTIVITY
• PRODUCTIVITY = (OUTPUT / INPUT) × 100%

Fundamentals of Information Systems, Sixth Edition 52


RETURN ON INVESTMENT AND THE VALUE OF
INFORMATION SYSTEMS
• RETURN ON INVESTMENT (ROI):
• ONE MEASURE OF IS VALUE
• INVESTIGATES THE ADDITIONAL PROFITS OR BENEFITS THAT ARE GENERATED AS A
PERCENTAGE OF THE INVESTMENT IN IS TECHNOLOGY

• EARNINGS GROWTH:
• THE INCREASE IN PROFIT THAT THE SYSTEM BRINGS

Fundamentals of Information Systems, Sixth Edition 53


RETURN ON INVESTMENT AND THE VALUE OF
INFORMATION SYSTEMS (CONTINUED)
• MARKET SHARE AND SPEED TO MARKET:
• THE PERCENTAGE OF SALES THAT A PRODUCT OR SERVICE HAS IN RELATION TO THE
TOTAL MARKET

• CUSTOMER AWARENESS AND SATISFACTION:


• PERFORMANCE MEASUREMENT IS BASED ON FEEDBACK FROM INTERNAL AND
EXTERNAL USERS

• TOTAL COST OF OWNERSHIP:


• THE SUM OF ALL COSTS OVER THE LIFE OF THE INFORMATION SYSTEM

Fundamentals of Information Systems, Sixth Edition 54


SESSION 6 & 7 :
SYSTEM ANALYSIS
SYSTEM ANALYSIS
SYSTEMS ANALYSIS DEFINES THE PROBLEMS TO BE SOLVED
AND PROVIDES THE ARCHITECTURE OF THE PROPOSED
SYSTEM.
THE TERMS ANALYSIS AND SYNTHESIS COME FROM GREEK
WHERE THEY MEAN RESPECTIVELY "TO TAKE APART" AND
"TO PUT TOGETHER".
ANALYSIS IS DEFINED AS THE PROCEDURE BY WHICH WE
BREAK DOWN AN INTELLECTUAL OR SUBSTANTIAL WHOLE
INTO PARTS.
SYNTHESIS IS DEFINED AS THE PROCEDURE BY WHICH WE
COMBINE SEPARATE ELEMENTS OR COMPONENTS IN ORDER
TO FORM A COHERENT WHOLE.
SYSTEM ANALYSIS

• SYSTEM ANALYSIS IS AN EXPLICIT FORMAL INQUIRY CARRIED OUT TO HELP A


DECISION MAKER IDENTIFY A BETTER COURSE OF ACTION AND MAKE A BETTER
DECISION THAN HE MIGHT OTHERWISE HAVE MADE.
• SYSTEMS ANALYSIS IS A PROBLEM-SOLVING TECHNIQUE THAT DECOMPOSES A
SYSTEM INTO ITS COMPONENT PIECES FOR THE PURPOSE OF STUDYING HOW
WELL THOSE COMPONENT PARTS WORK AND INTERACT TO ACCOMPLISH THEIR
PURPOSE.
SYSTEM ANALYSIS

• THIS IS A PROCESS USED IN THE DESIGN OF NEW SYSTEMS. SYSTEMS ANALYSIS


FOLLOWS STAGES OF INVESTIGATION, DESIGN AND IMPLEMENTATION.
• EACH STAGE SHOULD INVOLVE CLOSE CONSULTATION WITH POTENTIAL USERS,
IN THE VARIOUS FUNCTIONAL AREAS OF THE ORGANISATION, TO ENSURE THAT
THEIR INFORMATION AND OPERATIONAL REQUIREMENTS ARE MET.
WHEN TO USE SYSTEM ANALYSIS
AND DESIGN

• TO CORRECT PROBLEM IN EXISTING SYSTEM


• TO IMPROVE EXISTING SYSTEM
• USHER IN A NEW SYSTEM
• OUTSIDE GROUP MAY MANDATE CHANGE
• COMPETITION CAN LEAD TO CHANGE
SYSTEM PROJECT OVERVIEW
• SCOPE DEFINITION
IS THE PROJECT WORTH LOOKING AT?
• PROBLEM ANALYSIS
IS A NEW SYSTEM WORTH BUILDING?
• REQUIREMENTS ANALYSIS
WHAT DO THE USERS NEED AND WANT FROM
THE NEW SYSTEM?
• LOGICAL DESIGN
WHAT MUST THE NEW SYSTEM DO?
• DECISION ANALYSIS
WHAT IS THE BEST SOLUTION?
SWOT ANALYSIS FOR SYSTEM
PROJECT
Possible IT Strengths Possible IT Weaknesses
- Excellent Web design staff - Still using several legacy systems
- Low systems analyst turnover - Budget increase was turned down
- Recently upgraded network - Documentation needs updating

Possible IT Opportunities Possible IT Threats


- Well-position for expansion - Aggressive new Web competition
- Can be first with new software - Impact of new government rules
- High potential for B2B growth - Other firms offer better benefits
SYSTEM ANALYSIS TECHNIQUES

LOGICAL DATA MODELING


THIS IS THE PROCESS OF IDENTIFYING, MODELING AND DOCUMENTING THE DATA REQUIREMENTS OF
THE SYSTEM BEING DESIGNED. THE DATA ARE SEPARATED INTO ENTITIES (THINGS ABOUT WHICH
A BUSINESS NEEDS TO RECORD INFORMATION) AND RELATIONSHIPS (THE ASSOCIATIONS
BETWEEN THE ENTITIES).
DATA FLOW MODELING
THIS IS THE PROCESS OF IDENTIFYING, MODELING AND DOCUMENTING HOW DATA MOVES AROUND AN
INFORMATION SYSTEM. DATA FLOW MODELING EXAMINES PROCESSES (ACTIVITIES THAT
TRANSFORM DATA FROM ONE FORM TO ANOTHER), DATA STORES (THE HOLDING AREAS FOR
DATA), EXTERNAL ENTITIES (WHAT SENDS DATA INTO A SYSTEM OR RECEIVES DATA FROM A
SYSTEM), AND DATA FLOWS (ROUTES BY WHICH DATA CAN FLOW).
ENTITY BEHAVIOR MODELING
THIS IS THE PROCESS OF IDENTIFYING, MODELING AND DOCUMENTING THE EVENTS THAT AFFECT
EACH ENTITY AND THE SEQUENCE IN WHICH THESE EVENTS OCCUR.
REASONS FOR SYSTEMS PROJECTS

• IMPROVED SERVICE
• BETTER PERFORMANCE
• MORE INFORMATION
• STRONGER CONTROLS
• REDUCED COST
FACTORS THAT AFFECT SYSTEMS PROJECTS

• EXTERNAL
INTERNAL FACTORS
FACTORS
• TECHNOLOGY
STRATEGIC PLAN
• SUPPLIER
TOP MANAGERS
• CUSTOMERS
USER REQUESTS
• TECHNOLOGY
INFORMATION TECHNOLOGY DEPARTMENT
• COMPETITORS
EXISTING SYSTEMS
• THE ECONOMY
• GOVERNMENT
SESSION 7 :
SYSTEM DESIGN
SYSTEMS ANALYSIS & DESIGN
• SYSTEMS ANALYSIS
• PROBLEM ANALYSIS (WHAT)
• INFORMATION GATHERING (WHERE & WHY)
• DECISION MAKING (HOW)
• ESTABLISH OBJECTIVES
• DETERMINE FEASIBILITY
• CHOOSE BEST SOLUTION

• SYSTEMS DESIGN (INPUT, PROCESS, OUTPUT, PROCEDURES,


CONTROL)
• LOGICAL DESIGN
SYSTEMS ANALYSIS & DESIGN
• SYSTEMS DESIGN
• LOGICAL DESIGN (WHAT WILL THE SYSTEM DO?)
• INPUT: CONTENT, FORMAT, SOURCE, VOLUME, FREQUENCY,
TIMING
• PROCESS: RULE, MODEL, FORMULA, TIMING
• OUTPUT: CONTENT, FORMAT, ORGANIZATION, VOLUME, FREQ.,
TIMING
• STORAGE: DATA, FORMAT, ORGANIZATION, RELATIONSHIP,
VOLUME
• PROCEDURE: MANUAL ACTIVITIES, RULE, SEQUENCE, TIMING,
LOCATION
• CONTROL: SECURITY, ACCURACY, VALIDITY, SUPERVISION
• PHYSICAL DESIGN (HOW THE SYSTEM WILL WORK?)
• INPUT: KEYBOARD, VOICE, SCANNER
• PROCESS: PC, OPERATING SYSTEM, SOFTWARE
• OUTPUT: PRINT-OUTS, FILES, AUDIO
• STORAGE: TAPE, CD
• PROCEDURE: BATCHING, BACKUP, AUDITING, DATA ENTRY
• CONTROL: BATCH CONTROL, PASSWORD, AUDIT LOGS
Technology perspective
to problem solving
Organizational perspective to
problem solving
People
perspective to
problem solving
SESSION 8 :
MIDDLE TEST
SESSION 9 & 10 :
SYSTEM DEVELOPMENT
LIFE CYCLE
SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)

• THE SDLC IN SYSTEM ANALYSIS AND DESIGN AIMS TO PRODUCE A HIGH QUALITY
SYSTEM THAT MEETS OR EXCEEDS CUSTOMER EXPECTATIONS, REACHES
COMPLETION WITHIN TIME AND COST ESTIMATES, WORKS EFFECTIVELY AND
EFFICIENTLY IN THE CURRENT AND PLANNED INFORMATION TECHNOLOGY
INFRASTRUCTURE, AND IS INEXPENSIVE TO MAINTAIN AND COST-EFFECTIVE TO
ENHANCE.
SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)
SYSTEMS DEVELOPMENT LIFE CYCLE
PHASE 1. PLANNING

Review project requests


Prioritize project requests
Allocate resources
Identify project development team
Identifying business value
Analyze feasibility
Develop work plan
Staff the project
Control and direct project
SYSTEMS DEVELOPMENT LIFE CYCLE
PHASE 2. ANALYSIS
 CONDUCT PRELIMINARY INVESTIGATION.
 DETERMINE EXACT NATURE OF PROBLEM OR IMPROVEMENT
AND WHETHER IT IS WORTH PURSUING.
 FINDINGS ARE PRESENTED IN FEASIBILITY REPORT
(FEASIBILITY STUDY)
 PERFORM DETAILED ANALYSIS ACTIVITIES:
 STUDY CURRENT SYSTEM
 DETERMINE USER REQUIREMENTS
 RECOMMEND SOLUTION
 ANALYSIS STRATEGY
 GATHERING BUSINESS REQUIREMENTS
SYSTEMS DEVELOPMENT LIFE CYCLE
PHASE 3. DESIGN
ASSESSES FEASIBILITY OF EACH ALTERNATIVE
SOLUTION
HOW SYSTEM WILL BE DEVELOPED
RECOMMENDS THE MOST FEASIBLE SOLUTION
DESIGN SELECTION
ARCHITECTURE DESIGN
INTERFACE DESIGN
DATA STORAGE DESIGN
PROGRAM DESIGN
SYSTEMS DEVELOPMENT LIFE CYCLE
PHASE 4. IMPLEMENTATION
CONSTRUCTION
PROGRAM BUILDING DEVELOP PROGRAMS
INSTALL AND TEST NEW SYSTEM
PROGRAM AND SYSTEM TESTING
INSTALLATION
CONVERSION STRATEGY
TRAINING PLAN
CONVERT TO NEW SYSTEM
SUPPORT PLAN
SYSTEMS DEVELOPMENT LIFE CYCLE
PHASE 5. SUPPORT AND MAINTENANCE
 CONDUCT POST-IMPLEMENTATION SYSTEM REVIEW
 IDENTIFY ERRORS AND ENHANCEMENTS
 MONITOR SYSTEM PERFORMANCE
REQUIREMENTS ANALYSIS
INFORMATION DISCOVERY
THE PROCESS OF COLLECTING INFORMATION ABOUT SYSTEM PROBLEMS,
OPPORTUNITIES, SOLUTION REQUIREMENTS, AND PRIORITIES
INFORMATION DISCOVERY
• REVIEW AND SAMPLING OF EXISTING DOCUMENTATION, REPORTS, FORMS,
DATABASES, ETC
• INTERVIEW
• JOINT-APPLICATION DESIGN (JAD) SESSION
• JOINT REQUIREMENT PLANNING (JRP)
• RESEARCH OF RELEVANT LITERATURE
• OBSERVATION OF THE CURRENT SYSTEM
• QUESTIONNAIRES AND SURVEYS
PRODUCT INFORMATION DISCOVERY

• REFERENCES FROM VENDOR


• TALK TO CURRENT USERS OF PRODUCT
• PRODUCT DEMONSTRATIONS
• TRIAL VERSION OF SOFTWARE
• BENCHMARK TEST MEASURES PERFORMANCE
INFORMATION DISCOVERY
JOINT REQUIREMENTS PLANNING (JRP)

THE USE OF FACILITATED WORKSHOPS TO BRING TOGETHER ALL OF THE SYSTEM OWNERS,
USERS, AND ANALYSTS, AND SOME SYSTEMS DESIGNER AND BUILDERS TO JOINTLY
PERFORM SYSTEMS ANALYSIS.

JRP IS GENERALLY CONSIDERED A PART OF A LARGER METHOD CALLED JOINT APPLICATION


DEVELOPMENT (JAD), A MORE COMPREHENSIVE APPLICATION OF THE JRP TECHNIQUES TO
THE ENTIRE SYSTEMS DEVELOPMENT PROCESS.
BENEFITS OF JRP/JAD

• SAVES TIME: IT REDUCES THE NUMBER OF INTERVIEWS NEEDED TO GATHER THE


REQUIREMENTS AND REDUCES DISCREPANCIES. EVERYONE IS IN THE ROOM.
• SAVES MONEY: FEWER CHANGE REQUESTS, ELIMINATES RE WORKS.
• INCREASED USER BUY IN: USERS PARTICIPATION CREATES OWNERSHIP OF THE
SYSTEM.
• BETTER REQUIREMENTS DOCUMENTATION:
• HIGHER CUSTOMER SATISFACTION: CUSTOMER KNOWS AT WHAT STAGE THE
PRODUCT IS. THE SYSTEM MEETS CUSTOMER NEEDS.
SYSTEMS DEVELOPMENT LIFE CYCLE
STRENGTHS WEAKNESSES
• CONTROL. • INCREASED DEVELOPMENT
• MONITOR LARGE PROJECTS. TIME.
• DETAILED STEPS. • INCREASED DEVELOPMENT
COST.
• EVALUATE COSTS AND
COMPLETION TARGETS. • SYSTEMS MUST BE DEFINED UP
• DOCUMENTATION. FRONT.
• WELL DEFINED USER INPUT. • RIGIDITY.
• EASE OF MAINTENANCE. • HARD TO ESTIMATE COSTS,
PROJECT OVERRUNS.
• DEVELOPMENT AND DESIGN
STANDARDS. • USER INPUT IS SOMETIMES
• TOLERATES CHANGES IN MIS LIMITED.
STAFFING.
SYSTEM ANALYSIS METHODOLOGIES

• LIFECYCLE/WATERFALL APPROACH,
• CASE TOOLS,
• PROTOTYPE,
• RAD/RSD,
• JAD,
• OBJECT-ORIENTED METHODOLOGY.
WATERFALL
WATERFALL
• A SEQUENCE OF STAGES IN WHICH THE OUTPUT OF EACH
STAGE BECOMES THE INPUT FOR THE NEXT.
• IN THE WATERFALL MODEL, IT IS POSSIBLE TO REWORK
EARLIER STAGES IN THE LIGHT OF EXPERIENCE GAINED AT A
LATER STAGE. EACH STAGE IS SIGNED OFF AND THE NEXT
STAGE IS PROCEEDED WITH. HOWEVER THE END USER IS
RARELY INVOLVED IN THE DEVELOPMENT STAGE, EVEN
THOUGH THEY MAY WELL BE INVOLVED IN SIGNING OFF.
• IT IS THEREFORE CRITICAL THAT THE ANALYSTS AND THE
PROGRAMMERS UNDERSTAND THE END-USERS’
REQUIREMENTS.
• THIS CAN BE QUITE DIFFICULT WITH THE WATERFALL MODEL.
WATERFALL BENEFITS
• MISUNDERSTANDINGS ARE DETECTED AT EARLY STAGES
• IDENTIFIES SYSTEMS REQUIREMENTS LONG BEFORE
PROGRAMMING BEGINS
• THE USER WILL NOTICE ANY MISSING FUNCTIONS,
INCOMPLETE OR INCONSISTENT REQUIREMENTS.
• MINIMIZES CHANGES TO REQUIREMENTS AS PROJECT
PROGRESSES.
• CAN BE BUILT QUICKLY TO DEMONSTRATE SYSTEMS
• IT CAN BE USED FOR TRAINING BEFORE THE SYSTEM IS
FINISHED
WATERFALL SHORTCOMING

• DESIGN MUST BE SPECIFIED ON PAPER BEFORE PROGRAMMING BEGINS


• LONG TIME BETWEEN SYSTEM PROPOSAL AND DELIVERY OF NEW SYSTEM
• THE WATERFALL MODEL HAS DISADVANTAGES, WHICH CAN BE OVERCOME
USING PROTOTYPING, IN WHICH A MODEL OF THE SYSTEM IS DEVELOPED IN
PARTNERSHIP WITH THE END-USER.
• THE FEATURES ARE WORKED OUT WITH THE END USER USING A PROTOTYPE,
AND THE END USER CAN HAVE A CONSIDERABLE INPUT INTO THE DEVELOPMENT
OF A PROJECT.
RAPID APPLICATION
DEVELOPMENT (RAD)

UTILIZES PROTOTYPING TO DELAY PRODUCING SYSTEM DESIGN UNTIL AFTER USER REQUIREMENTS
ARE CLEAR

• PHASED DEVELOPMENT
 A SERIES OF VERSIONS DEVELOPED SEQUENTIALLY

• PROTOTYPING
 SYSTEM PROTOTYPING

• THROW-AWAY PROTOTYPING
 DESIGN PROTOTYPING
PHASED DEVELOPMENT
PROTOTYPING

• A SMALL-SCALE, INCOMPLETE, BUT WORKING SAMPLE OF A DESIRED SYSTEM.


• WORKING MODEL OF PROPOSED SYSTEM

• BUILDING A SCALED-DOWN WORKING VERSION OF THE SYSTEM


• ADVANTAGES:
• USERS ARE INVOLVED IN DESIGN
• CAPTURES REQUIREMENTS IN CONCRETE FORM
PROTOTYPING
PROTOTYPING
PROTOTYPING
BENEFITS
• USERS INTERACT WITH PROTOTYPE VERY QUICKLY
• USERS CAN IDENTIFY NEEDED CHANGES AND REFINE
REAL REQUIREMENTS

SHORTCOMING
• TENDENCY TO DO SUPERFICIAL ANALYSIS
• INITIAL DESIGN DECISIONS MAY BE POOR
THROWAWAY PROTOTYPING
THROWAWAY PROTOTYPING

BENEFITS
• RISKS ARE MINIMIZED
• IMPORTANT ISSUES ARE UNDERSTOOD BEFORE THE REAL SYSTEM IS BUILT

SHORTCOMING
• MAY TAKE LONGER THAN PROTOTYPING
JOINT APPLICATION DESIGN (JAD)

• USERS, MANAGERS AND ANALYSTS WORK TOGETHER FOR SEVERAL DAYS


• SYSTEM REQUIREMENTS ARE REVIEWED
• STRUCTURED MEETINGS
AGILE METHOD

• THE INTEGRATION OF VARIOUS APPROACHES OF SYSTEMS ANALYSIS AND


DESIGN FOR APPLICATIONS AS DEEMED APPROPRIATE TO THE PROBLEM BEING
SOLVED AND THE SYSTEM BEING DEVELOPED.
AGILE
AGILE

BENEFITS
• FAST DELIVERY OF RESULTS
• WORKS WELL IN PROJECTS WITH UNDEFINED OR CHANGING REQUIREMENTS

SHORTCOMING
• REQUIRES DISCIPLINE
• WORKS BEST IN SMALL PROJECTS
• REQUIRES MUCH USER INPUT
SELECTING THE APPROPRIATE
METHODOLOGY

• CLEAR USER REQUIREMENTS


• FAMILIARITY WITH TECHNOLOGY
• COMPLEXITY OF SYSTEM
• RELIABILITY OF SYSTEM
• TIME SCHEDULE
• SCHEDULE VISIBILITY
SESSION 11 :
MANUFACTURING INFORMATION SYSTEM
FIGURE 8.9 A MODEL OF
MANUFACTURING INFORMATION SYSTEM

Management Information Systems, 10/e Raymond McLeod and George Schell © 2007 by Prentice Hall 106
CASE: ATLANTIC MANUFACTURING

• MATERIALS AND MANUFACTURING ARE DEALING WITH


INCONSISTENT LEVELS OF RAW MATERIALS AND FINISHED PRODUCTS
• CHANGE SPECIFICATIONS ARE NOT MADE TIMELY
• SEQUENTIAL DESIGN PRODUCES LONG LEAD TIMES
• INADEQUATE INFORMATION FROM OTHER DIVISIONS
• LOST PURCHASING REQUISITIONS

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
MANUFACTURING SYSTEMS
BACKGROUND
• DESIGNED TO RE-ORDER INVENTORY USING RE-ORDER POINT
• ADAPTS PRODUCTION TO CUSTOMER ORDERS
• INCREASED FLEXIBILITY, RESPONSIVENESS, INTEGRATION
• 60S, 70S, 80S: HIGH-VOLUME PRODUCTION OF FEW PRODUCTS
• MAINFRAME-BASED DATABASES
• LATE 80S: PRODUCTION OF NEW PRODUCTS TO MEET CUSTOMERS’ NEEDS
• CHANGEABLE AND FLEXIBLE
• MANUFACTURING EXECUTION SYSTEMS PROVIDED CONTINUOUS FEEDBACK AND CONTROL
• 90S: INTEGRATION OF PROCESSES AND DATA PRODUCE OPERATIONAL
EFFICIENCY
• ERP SYSTEMS GAVE TOTAL INTEGRATION, INCLUDING SUPPLY CHAIN

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
PROBLEMS WITH TRADITIONAL
PRODUCTION SYSTEMS
• LACK OF INTEGRATION BETWEEN DIVISIONS IN ORGANIZATION
• PRODUCTION MUST BE LINKED TO SALES TO MAINTAIN PROPER
INVENTORY LEVELS
• INACCURATE PRODUCTION FORECAST WILL CREATE
INCORRECT PURCHASING DECISIONS
• PRODUCING EITHER A SHORTAGE OF OR EXTRA RAW MATERIALS
• CREATING AN EXCESS OF FINISHED PRODUCTS OR SHORTAGE
• EXCESS INVENTORIES
• IMPACT CASH FLOW AND PROFITABILITY IN ACCOUNTING

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
PRODUCTION SYSTEMS

• OBJECTIVES
• CREATE PRODUCTION PLAN
• ACQUIRE RAW MATERIALS
• SCHEDULE EQUIPMENT, FACILITIES, HUMAN RESOURCES
• DESIGN PRODUCTS
• PRODUCE APPROPRIATE QUANTITIES AND EXPECTED QUALITY LEVEL

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
PRODUCTION PLANNING AND
MANUFACTURING PROCESSES
• OPERATIONAL-LEVEL PROCESSES
• DAILY ACTIVITIES
• PURCHASING
• ACQUIRE CORRECT QUANTITY OF RAW MATERIALS AND SUPPLIES
• RECEIVING
• INSPECTION OF DELIVERED PRODUCTS AND PROCESSING
• QUALITY CONTROL
• MONITORING OF RECEIVABLES AND IDENTIFICATION OF UNACCEPTABLE DELIVERIES
• MONITORING QUALITY OF PRODUCTION GOODS
• INVENTORY MANAGEMENT
• MAINTAINS APPROPRIATE LEVELS

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
INFORMATION SYSTEMS SUPPORT

• PRODUCTION PLANNING AND MANUFACTURING PROCESSES


• SUPPORTED BY INFORMATION SYSTEMS
• DATA COLLECTION SYSTEMS
• MATERIAL MANAGEMENT SYSTEMS
• BOM SYSTEMS
• INVENTORY MANAGEMENT SYSTEMS
• COST ACCOUNTING SYSTEMS

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
MATERIAL RESOURCE PLANNING

• PROCESSES:
• IDENTIFY STOCK NEEDED
• CALCULATE LEAD TIME FOR STOCK
• DETERMINE SAFETY STOCK LEVELS
• ASSIGN MOST COST-EFFECTIVE ORDER QUANTITIES
• PRODUCE ACCURATE PURCHASE ORDERS

• MRP TAKES INPUTS FROM THE MPS


• MPS EMPLOYS SALES FORECASTS TO IDENTIFY PRODUCTS NEEDED

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
JUST-IN-TIME SYSTEMS

• IDEAL PRODUCTION AND MANUFACTURING SITUATION


• ONLY MAINTAIN NECESSARY INVENTORY LEVELS; NO EXCESS
• REQUIRES SUPPLIES TO BE DELIVERED ONLY AS NEEDED TO MEET
PRODUCTION SCHEDULE
• EDI OR INTERNET USED TO PLACE ORDERS
• CONTINUOUS REPLENISHMENTS OF RAW MATERIALS
• REDUCES STORAGE COST AND SPACE BOTH PRE- AND POST- PRODUCTION
• IMPROVED SUPPLY CHAIN AND VALUE CHAIN MANAGEMENT

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
CAPACITY PLANNING

• EVALUATION OF PRODUCTION CAPACITY AGAINST PRODUCTION


GOALS
• REQUIRES SPECIFIC INFORMATION
• CREATES TIME-PHASED PLANS FOR PRODUCT AND PRODUCTION AREA
• PRODUCTION SCHEDULING
• ALLOCATION OF SPECIFIC FACILITIES
• ESTIMATES HUMAN RESOURCE NEEDED
• PRODUCT DESIGN AND DEVELOPMENT IS INTEGRATED WITH COST
INFORMATION
• ALLOWS COMPARISON OF ALTERNATIVES TO DECREASE EXPENSES
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
PRODUCTION PLANNING AND MATERIALS
MANAGEMENT MODULES
• ERP EXTENDS INFORMATION DISTRIBUTION
• SUPPORTS MATERIALS REQUIREMENT PLANNING, INVENTORY MANAGEMENT, CAPACITY PLANNING
• ALLOWS FOR MERGING OF MULTIPLE DATABASES
• ELIMINATES PAPERWORK AND BOTTLENECKS
• DECREASES DESIGN COSTS, LEAD TIME, PERSONNEL COSTS
• INCREASES PRODUCTIVITY
• SALES FORECASTS EMPLOYED TO DEVELOP PRODUCTION PLANS
• MPS CREATED THROUGH DEMAND MANAGEMENT
• DETERMINES QUANTITIES AND DATES FOR FINISHED PRODUCTS
• MRP CREATES EFFICIENT, DETAILED MATERIAL PLAN
• DETERMINES WHAT NEEDS TO BE ORDERED AND WHEN
• CREATES WORK ORDERS SENT TO PRODUCTION
• ERP SYSTEMS PROVIDES INTEGRATION

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
MATERIALS MANAGEMENT MODULES
• MES
• FACTORY FLOOR INFORMATION AND COMMUNICATION SYSTEMS
• PROVIDE FEEDBACK ON REAL-TIME BASIS
• CAN BE FRONT-END COMBINED WITH BACK-END APPLICATIONS
• APS SYSTEMS
• BUSINESS ANALYSIS AND SUPPORT
• LEVERAGE DATA FOR DECISION SUPPORT
• DATA COLLECTION
• REAL-TIME DATA GATHERED WITH MOBILE PHONE OR INTERNET-ENABLED DEVICES
• AUTOMATED DATA COLLECTION

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
EBUSINESS STRATEGIES

• FACILITATES COMMUNICATION ALONG SUPPLY CHAIN


• B2B
• MANY SUPPLIERS AVAILABLE
• INTERNET ENABLES QUICK AND EASY EXCHANGE OF INFORMATION
• PLANNING FORECASTS
• EMARKETPLACES ALLOW FOR AGGREGATION OF BUYERS TO IMPROVE
PURCHASING POWER
• REDUCES COSTS
• COMMUNITIES
• ELIMINATE TRADITIONAL SUPPLY CHAINS AND PROBLEMS
• RFPS HANDLED MORE EFFICIENTLY
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
SESSION 12 :

DECISION SUPPORT SYSTEM


TYPES OF DECISIONS IN AN
ORGANIZATION
• STRUCTURED DECISIONS
• CAN BE AUTOMATED BECAUSE A WELL-DEFINED STANDARD
OPERATING PROCEDURE EXISTS FOR THESE TYPES OF
DECISIONS
• KNOWN AS PROGRAMMABLE TASKS

• SEMISTRUCTURED DECISIONS
• INCLUDE A STRUCTURED ASPECT THAT BENEFITS FROM
INFORMATION RETRIEVAL, ANALYTICAL MODELS, AND
INFORMATION SYSTEMS TECHNOLOGY
TYPES OF DECISIONS IN AN
ORGANIZATION
• UNSTRUCTURED DECISIONS
• ONE-TIME DECISIONS WITH NO STANDARD OPERATING
PROCEDURE
• DECISION MAKER’S INTUITION PLAYS A IMPORTANT ROLE AS
INFORMATION TECHNOLOGY OFFERS LESS SUPPORT FOR THE
DECISIONS

• CHALLENGES IN SEMISTRUCTURED AND UNSTRUCTURED


DECISIONS
• INVOLVE MULTIPLE CRITERIA
• USERS HAVE TO CHOOSE BETWEEN CONFLICTING OBJECTIVES
ORGANIZATIONAL LEVELS AND TYPES OF
DECISIONS
MANAGEMENT SUPPORT SYSTEMS
(MSSS)
• DIFFERENT TYPES OF INFORMATION SYSTEMS THAT HAVE
BEEN DEVELOPED TO SUPPORT CERTAIN ASPECTS AND
TYPES OF DECISIONS
• EACH TYPE IS DESIGNED WITH UNIQUE GOALS AND
OBJECTIVES
PHASES OF DECISION MAKING

Intelligence Phase

Design Phase

Choice Phase

Implementation Phase
INTELLIGENCE PHASE

• DECISION MAKER EXAMINES THE ORGANIZATION’S


ENVIRONMENT FOR CONDITIONS THAT NEED DECISIONS
• DATA IS COLLECTED FROM A VARIETY OF SOURCES AND
PROCESSED
• ALLOWS DECISION MAKER TO DISCOVER WAYS TO APPROACH
THE PROBLEM
DESIGN PHASE

• DEFINES CRITERIA FOR THE DECISION


• GENERATES ALTERNATIVES FOR MEETING THE CRITERIA
• DEFINES ASSOCIATIONS BETWEEN THE CRITERIA AND THE
ALTERNATIVES
• REQUIRES UNDERSTANDING HOW EACH ALTERNATIVE
AFFECTS THE CRITERIA

• INFORMATION TECHNOLOGY DOES NOT SUPPORT THIS


PHASE OF DECISION MAKING
CHOICE PHASE

• INVOLVES SELECTING BEST AND MOST EFFECTIVE COURSE


OF ACTION IS FROM THE ALTERNATIVES
• ANALYZES EACH ALTERNATIVE AND ITS RELATIONSHIP TO
THE CRITERIA TO DETERMINE WHETHER IT IS FEASIBLE
• DECISION SUPPORT SYSTEM (DSS)
• HELPS SORT THROUGH POSSIBLE SOLUTIONS TO CHOOSE THE
BEST ONE FOR THE ORGANIZATION
• INCLUDES TOOLS FOR CALCULATING COST-BENEFIT RATIOS
IMPLEMENTATION PHASE

• ORGANIZATION DEVISES A PLAN FOR CARRYING OUT THE


ALTERNATIVE SELECTED IN THE CHOICE PHASE AND
OBTAINS THE RESOURCES TO IMPLEMENT THE PLAN
• DSS DOES A FOLLOW-UP ASSESSMENT ON HOW WELL A
SOLUTION IS PERFORMING
DECISION SUPPORT SYSTEMS (DSS)

• INTERACTIVE INFORMATION SYSTEM DESIGNED TO ASSIST


DECISION MAKERS IN AN ORGANIZATION
• CONSISTS OF:
• HARDWARE
• SOFTWARE
• DATA
• MATHEMATICAL AND STATISTICAL MODELS
DECISION SUPPORT SYSTEMS (DSS)

• REQUIREMENTS
• BE INTERACTIVE AND INCORPORATE THE HUMAN ELEMENT AS
WELL AS HARDWARE AND SOFTWARE
• USE INTERNAL AND EXTERNAL DATA
• INCLUDE MATHEMATICAL AND STATISTICAL MODELS
• SUPPORT DECISION MAKERS AT ALL ORGANIZATIONAL LEVELS
• EMPHASIZE SEMISTRUCTURED AND UNSTRUCTURED TASKS
COMPONENTS OF A DECISION SUPPORT
SYSTEM
• DATABASE
• INCLUDES INTERNAL AND EXTERNAL DATA, AND A DATABASE
MANAGEMENT SYSTEM (DBMS)
• ENABLES A DSS TO PERFORM DATA ANALYSIS OPERATIONS

• MODEL BASE
• INCLUDES MATHEMATICAL AND STATISTICAL MODELS THAT
ENABLE A DSS TO ANALYZE INFORMATION
COMPONENTS OF A DECISION SUPPORT
SYSTEM
• USERS ACCESS THE DSS THROUGH USER INTERFACE
• DSS ENGINE MANAGES AND COORDINATES THE MAJOR
COMPONENTS
COMPONENTS OF A DSS
DSS CAPABILITIES

• DSS INCLUDES FOLLOWING FEATURES TO SUPPORT


DECISION MAKING
• WHAT-IF ANALYSIS
• GOAL-SEEKING
• SENSITIVITY ANALYSIS
• EXCEPTION REPORTING ANALYSIS

• OTHER CAPABILITIES
• GRAPHICAL ANALYSIS, FORECASTING, SIMULATION,
STATISTICAL ANALYSIS, AND MODELING ANALYSIS
ROLES IN THE DSS ENVIRONMENT

• USER
• CRUCIAL BECAUSE THEY USE THE DSS
• INCLUDE DEPARTMENT OR ORGANIZATIONAL UNITS IN
ADDITION TO PEOPLE

• MANAGERIAL DESIGNER
• DEFINES THE MANAGEMENT ISSUES IN DESIGNING AND USING
A DSS
• ISSUES ARE RELATED TO MANAGEMENT’S GOALS AND NEEDS
ROLES IN THE DSS ENVIRONMENT

• TECHNICAL DESIGNER
• FOCUSES ON HOW THE DSS IS IMPLEMENTED
• ADDRESSES QUESTIONS ABOUT DATA STORAGE, FILE
STRUCTURE, USER ACCESS, RESPONSE TIME, AND SECURITY
MEASURES
ROLES IN THE DSS ENVIRONMENT

• MODEL BUILDER
• LIAISON BETWEEN USERS AND DESIGNERS
• RESPONSIBLE FOR SUPPLYING INFORMATION ON:
- WHAT THE MODEL DOES
- WHAT DATA INPUTS THE MODEL ACCEPTS
• HOW THE MODEL’S OUTPUT SHOULD BE INTERPRETED
• WHAT ASSUMPTIONS GO INTO CREATING AND USING THE MODEL
REFERENCES
1. SYSTEMS DEVELOPMENT LIFE-CYCLE. FROM WIKIPEDIA, THE FREE
ENCYCLOPEDIA.
HTTP://EN.WIKIPEDIA.ORG/WIKI/SYSTEMS_DEVELOPMENT_LIFE-CYCLE
2. PROJECT MANAGEMENT. FROM WIKIPEDIA, THE FREE ENCYCLOPEDIA.
HTTP://EN.WIKIPEDIA.ORG/WIKI/PROJECT_LIFE_CYCLE#PROJECT_DEVELO
PMENT_STAGES
3. BOEHM, B. W. (1988). A SPIRAL MODEL OF SOFTWARE DEVELOPMENT AND
ENHANCEMENT, COMPUTER, MAY
4. DEMARCO, T. (1978). STRUCTURED ANALYSIS AND SYSTEM
SPECIFICATION, PRENTICE-HALL
5. SYSTEMS ANALYSIS AND DESIGN, BY WILEY
6. FUNDAMENTALS OF INFORMATION SYSTEM, 7TH

7. PRENTICE HALL, 2005: ENTERPRISE RESOURCE PLANNING, 1ST EDITION BY

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