CHAPTER 7 Information System

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1 COMPUTER LITERACY (FSPK0012) CHAPTER 7 Information System by: Dr. Siti Hajar Othman & Dr. Nazmona Mat Ali Faculty of Computing, UTM Johor Bharu hajar@utm.my / nazmona@utm.my Phone: / Website: comp.utm.my/hajar & comp.utm.my/nazmona

2 Table of Content: CHAPTER 7 1) Types of Information System 2) System Development Life Cycle 2

3 INFORMATION why so important? A key resource and key asset Fuels business and can be the critical factor in determining the success or failure of a business Needs to be managed correctly Managing computer-generated information differs from handling manually produced data

4 What is INFORMATION SYSTEMS (IS)? A system which assembles, stores, processes and delivers information relevant to an organization, in such a way that the information is accessible and useful to those who wish to use it, including managers, staff, clients and citizens. An IS is human activity (social system) which may or may not involve the use of computer systems Buckingham et al. (1987) *In this context, IS refers as Computerized Information Computer-based Information Systems

5 Organization as Systems Organization as systems, is composed of subsystems and so on. It is mainly involves levels of management These will impact the information system development. The different levels of management will produce the different levels of decisions. 5

6 SYSTEM Processing Control Boundary Input Feedback Output Data People Software People + + Hardware Procedures Procedures Data Information Systems Computerized Information Systems

7 Levels of Management Copyright 2011 L. Staehr, B. Choi, C. Cope, J. McCullagh, P. Somerville, C. Matthews, B. Retallick

8 The Four Major Types of Information Systems Laudon & Laudon (2015), Management Information Systems: Managing the Digital Firm (14th Edition), Prentice Hall. 8

9 Transaction Processing System (TPS) Captures and processes data about business transactions Typically processes large amounts of data for routine business transactions Boundary-spanning permit organizations to interact with external environments Support the day-to-day operations of the company Supply summary data to MIS and DSS 9

10 Types of TPS Online Transaction Processing System OLTP Real Time Transaction Each transaction is processed immediately, without the delay of accumulating transactions into a batch Mostly used in online shopping Uses PCI cards Batch Processing System Data is collected as batch and then processed later on. Usually processing at a scheduled time 10

11 TPS - Examples Could you identify which type of TPS of these systems? Payroll Processing Inventory Management Point-of-Sale (PoS) Automated Teller Machine (ATM) Airline Reservation System Fast-food Online Delivery Paypal Cheque clearing Online shopping 11

12 (MIS) Management Information System (MIS) Provide information in the form of prespecified reports and displays to support business decision making Information generated based on data extracted and summarized from the firm s underlying transaction processing systems to middle and operational level Examples sales analysis, production performance, cost trend reporting systems, performance appraisal system (O brien & Marakas, 2006, Management Information Systems, 7 th Edition, McGraw Hill, NY) 12

13 (MIS) Laudon & Laudon (2015), Management Information Systems: Managing the Digital Firm (14th Edition), Prentice Hall. 13

14 (DSS) Decision Support System (DSS) Provide interactive ad hoc support for the decisionmaking processes of managers and other business professionals Use data from TPS and set of flexible analytical tools to support middle managers Examples profitability forecasting, risk analysis systems, product pricing (O brien & Marakas, 2006, Management Information Systems, 7 th Edition, McGraw Hill, NY) 14

15 (DSS) Laudon & Laudon (2015), Management Information Systems: Managing the Digital Firm (14th Edition), Prentice Hall. 15

16 (ESS) Executive Support Systems (ESS) Also known as Executive Information Systems (EIS) Provide critical information from MIS, DSS and other sources tailored to the information needs of executives. A reporting too that provides quick access to summarize reports coming from all company level and functions/departments e.g. accounting, human resources, marketing and operations. Examples systems for easy access to analyze of business performance, competitive performance, economic developments to support strategic planning. (O brien & Marakas, 2006, Management Information Systems, 7 th Edition, McGraw Hill, NY) 16

17 (ESS) In recent years, the term EIS has lost popularity in favour of business intelligence with the sub areas of reporting, analytics, and digital dashboards 17

18 What is Information System Development (ISD) and System Development Life Cycle (SDLC)? ISD is the process to build computerized information systems. This process is well-known as SDLC that consists of several phases SDLC is a phased approach to solving business problems developed through the use of a specific cycle of analyst and user activities Each phase has unique user activities (ISD) (SDLC) Note: Analysts disagree on exactly how many phases there are in the SDLC. 18

19 The seven phases of SDLC Kendall & Kendall (2002), System Analysis And Design, 5 th Edition,Prentice Hall, New Jersey 19

20 The six phases of SDLC O'Leary et all (2015), Computing Essentials 2015 Complete Edition, McGraw-Hill Education; 25 edition 20

21 Why Need System Analysis and Design? System development needs proper planning. There is a cost in system development. It is time consuming and needs project management. SADM is about problem solving that needs to be creative, critical, and innovative. Closely related with the context of a particular business

22 Why Need System Analysis and Design? Lends structure to the analysis and design of information systems Analysis and design phase the core phases of SDLC Even though, the title seems focusing on ANALYSIS and DESIGN phase doesn t means other phases are not important 22

23 1 Identifying Problems, Opportunities, and Objectives Purpose: to identify the problems, opportunities and objectives of the proposed project and later make a decision on whether to proceed with the proposed project Activity: Interviewing user management Summarizing the knowledge obtained Estimating the scope of the project Documenting the results Deliverable/Output: Feasibility Report

24 2 Determining Human Information Requirements Purpose: To determine human needs of the users involved Activity: Interviewing Sampling and investing hard data Questionnaires Observe the decision maker s behavior and environment Prototyping Learn the who, what, where, when, how, and why of the current system Deliverable/Output: User Requirements Report 24

25 Purpose: to determine the new requirements Activity: Create data flow diagrams Complete the data dictionary Analyze the structured decisions made Prepare and present the system proposal Deliverable/ Output: Systems Analysis Report Analyzing System Needs Recommendation on what, if anything, should be done to design a new system or restructuring the current system 3 25

26 4 Designing the Recommended System Purpose: to transform the requirements into complete and detailed system design specification Activity: Design procedures for data entry Design the human-computer interface Design system controls Design files and/or database Design backup procedures Deliverable/Output:- System Design Document 26

27 Developing and Documenting Software Purpose: to convert the system design prototyped in the design phase into a working information system that addresses all documented system requirements Activity: System analyst works with programmers to develop any original software Works with users to develop effective documentation Programmers design, code, and remove syntactical errors from computer programs Document software with help files, procedure manuals, and Web sites with Frequently Asked Questions Deliverable/Output: System Development Document 5

28 6 Testing and Maintaining the System Purpose: to guarantee that system successfully built and tested in the development phase meet all requirements and design parameters Activity: Test the information system System maintenance Maintenance documentation Deliverable/Output: Test Analysis Approval Determination Document

29 7 Implementing and Evaluating the System Purpose: to deploy and enable operations of the new information system in the location. Activity: Train users Analyst plans smooth conversion from old system to new system Review and evaluate system Deliverable/Output: Trained personnel Installed system

30 Q & A 30