SYSTEM INTEGRATION & ARCHITECTURE

Week 2
The Impact of Information Technology
Information Technology
Information Technology refers to the combination of hardware, software and services that people use to man -
age, communicate, and share information.

System Development
Business information systems are developed by people who are technically qualified, business-oriented, and
highly motivated. Successful developers also must be good communications with strong analytical and critical
thinking skills.

Information System
An information System combines information technology, people, and data to support business requirements.
 Information System Components

A system is a set of related components that produces specific results. Every system requires input data. In in -
formation system, data consists of basic facts that are the system’s raw material. Information is data that has
been transformed into output that is valuable to users.

Hardware
Hardware consists of everything in the physical layer of the information system.
Software
Software refers to the program that control the hardware and produce the desired information or results.
Data
Data is the raw material that an information system transforms into useful information.
Processes
Processes describe the tasks and business functions that the users, managers, and IT staff members perform to
achieve specific results.
People
People who have an interest in an information systems are called stakeholders.
 Understand the Business
System analysts use a process called business process modeling to represent company operations and infor -
mation needs.

Business Profile
An overview of a company’s mission, functions, organization, products, services, customers, suppliers, competi -
tors, constraints, and future direction.

Business Process
A specific set of transactions, events, and results that can be described and documented.
 Impact of the Internet
Internet-based commerce is called e-commerce (electronic commerce). Internet-based systems involve various
hardware and software designs, but a typical model is a series of Web pages that provides a user interface,
which communicates with database management software and a Web-based data server.

B2C (Business-to-Consumer)
Using the Internet, the 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, ar -
range delivery, and choosy payment methods in a single convenient session.

B2B (Business-to-Business)
Although B2C sector is more familiar to retail customers, the volume of B2B sales will increase sharply as more
firms seek to improve efficiency and reduce costs.
 Business Information Systems
In the past, IT managers divided systems into categories based on the user group the system served. As busi -
ness changes, information use also changes in most companies. Today, it makes more sense to identify a sys -
tem by its functions and features rather than by its users.

Enterprise Computing
Refers to information systems that support company-wide operations and data management requirements. The
main objective is to integrate a company’s primary function such as production, sales, services, accounting, and
inventory control, to improve efficiency, reduce costs, and help managers to make key decisions.

Transaction Planning
TP systems process data generated by day-to-day business operations. It includes customer order processing, ac -
counts receivable, and warranty claim processing.

Business Support
Provides job-related information support to users at all level of a company. These systems can analyze transac -
tional data, generate information needed to manage and control business processes, and provide information that
leads to better decision-making.
 Business Information Systems

Knowledge Management
Also called as expert systems because they simulate human reasoning by combining a knowledge base and in -
ference rules that determine how the knowledge is applied. Consists of large database that allows users to find
information by entering keywords or questions in normal English phrases.

User Productivity
Companies provides employees at all level with technology that improves productivity. Ex: e-mail, voice mail, fax,
video and Web conferencing, word processing, high-speed Internet access, etc.

Information Systems Integration

Most large companies require systems that combine transaction processing, business support, knowledge man -
agement, and user productivity features.
Activity
Healthy Hiring: E-Commerce Help Wanted
Healthy Hiring: E-Commerce Help Wanted

1. What qualifications should the systems analysis team be looking for when hiring their new E-commerce devel -
opment team member?
2. Is it more important to know specific languages or to have an aptitude for picking up languages and software
packages quickly?
3. How important is it that the person being hired has some basic business understanding?
4. Should all team members possess identical competencies and skills?
5. What personality or character traits are desirable in a systems analyst who will be working in ecommerce devel -
opment?