IS 341

Business Systems Analysis

Introduction

Introduction:

I. Syllabus

II. Why do I need this course? >>Importance of Info. Sys. in today’s world

A. Utilization of IS in almost EVERYTHING!

B. Need for IS personnel & high salaries

C. Certain IS Knowledge needed by IS specialists - YOU!

1. SAD is a very basic functional area of IS & is a building-block for the rest of IS education.

2. Knowledge of & Skills in SAD are assumed if you are an IS specialist

III. How to study for this course

A. READ & UNDERSTAND the Lecture the Text and Notes

B. Read the Chapter Objectives, Preview, and the Questions at the beginning/end of each chapter – do you understand the points?

C. Study the Key Terms at the end of the chapter – do you understand them?

D. My notes cover the important aspects, but I will ask about more than just the notes.

E. Get together in small groups & discuss the issues of each chapter – and apply issues to the cases.

IV. Brief history of computing

A. 1890 – Hollerith punch-card machines for Census Bureau

B. 1940’s – first computers (ENIAC)

C. 1950’s – mainframes (Big Iron, IBM), Tubes

D. 1960’s – portable languages (COBOL, FORTRAN) & minicomputers, Transistors & Integrated Circuits (Chips)

E. 1970’s – Microcomputers (Apple), Microprocessors

F. 1980’s – Personal Computers (Apple II, IBM PC, Mac, Microsoft)

G. 1990’s – Networks, Internet/WWW

H. 2000’s – Cloud Computing, Agile Development Methodologies

V. Four (4) Main Points for all IS courses:

A. Definitions

1. Data vs. Information – data is Raw Material, Information is Finished Product; Data goes into the Info. Processor (our CBIS) and comes out as Information.

2. System – a group of inter-related elements working together toward a common goal

3. Open/Closed Systems – interactions (or not) with Environment

4. Open/Closed Loops – info processing with/without Controls (Management)

B. Information is a Resource which must be managed:

1. Business - more complex today (legal, ethical/moral, world-wide, cultural, short time frames)

2. Computer technology - providing new/innovative/improved capabilities for businesses

C. 3 Critical Success Factors for successful IS:

1. Senior Management commitment;

2. End-User involvement

3. Understand/Work within your corporate culture

D. Bosses always want projects three (3) ways: Faster, Cheaper, Higher Quality!

NOTE: you can have ANY TWO of the three elements above (take your choice!); but you CANNOT have All Three!!!!

Fast and Cheap – yes; but there will not be High Quality.

Fast and High Quality – yes; but it will not be Cheap.

Cheap and High Quality – yes; but that will not be Fast.

E. There is only one thing that you know for certain about the Business Environment – It Is ALWAYS CHANGING!!!

VI. Current Themes in Systems Analysis and Design

A. Systems Development is firmly rooted in an organizational context. Success requires a broad solid understanding of organizations, organizational cultures, and operations.

B. Systems Development is a practical field. There are accepted concepts and principles that must be studied and understood. Current practices must be looked at as well.

C. Systems Development is a profession. Accepted standards, continuing personal development, ethics, respect for colleagues, and collaboration are part of this field just as they are in any other profession.

D. Systems Development has significantly changed with the explosive growth in databases, data-driven architecture for systems, and the Internet. This field is changing rapidly! System Development and Database management can/should be taught in a highly coordinated fashion. The Internet has become a platform for data-driven electronic commerce. Developers cannot rely on what they learned in the past; they must continually strive to learn and understand new technologies, developments and methodologies in order to offer competitive solutions to their firms.

E. Success in Systems Analysis and Design requires not only skills in methodologies and techniques but also in management of time resources ands risks. In other words, the practitioner must be not only a technician, but competent in Business methodologies and practices. Systems Analysis and Design is a business function and must be treated as such. We techies “aren’t in Kansas anymore!”

Problems

Problem (Definition) – a situation that can cause great harm or great benefit to the firm depending on how it is handled; you must consider Risks and Benefits.

Causes

Problems are caused by:

1. Negative elements – something that is Wrong & should be Fixed

2. Positive elements – something that provides Opportunity for Competitive Advantage

3. Neutral elements – a Directive issued that something specific should be done

Problem Structure

As with all business elements, Problems exist within an Environment. The surrounding issues and context within which the problem occurs (and must be solved) is the Problem Environment (or Problem Structure).

Dealing With Problems – Types of People

1. Problem Solvers – address problems as they arise, neither seek out nor avoid problems

2. Problem Avoiders – would rather ignore the problem than deal with it, hope that if they ignore the problem long enough it will go away (“lazy, no-good, worthless....”)

3. Problem Seekers – actively look for problems to solve or something that needs improvement, always looking for new and better ways to do things (“trouble maker!”)

Types of Problems

As defined by amount of information available and frequency (how often they occur):

1. Structured Problems – high information, frequent, Production Line Decisions; the problem and alternatives are well understood, high information is available on the problem and its environment, decisions that are made daily, (“No Brainers”)

2. Semi-Structured Problems – less information than we’d like, less frequent; Managers solve these because of their Experience. The problem and alternatives are NOT well understood, some information is available on the problem and its environment but more is needed, most Business Decisions generally fall into this category. A Decision Support System is a specific type of information system used to help add structure and solve semi-structured (and unstructured) problems

3. Un-Structured Problems – low information, infrequent, Executive decisions, Unusually Consequential (“Make or Break”). The problem and alternatives are NOT AT ALL understood, little or no information is available on the problem and its environment, these decisions are Unusually Consequential (“Make you or Break you” decisions) and have strong ramifications for the organization.

Solving Problems

Solving Problems is an Eight (8) Step Process:

1. Recognize that a Problem exists

2. Identify the Symptoms

3. Follow the Symptom Chain

4. Identify the Problem

5. Identify Alternatives – possible Solutions to the problem

6. MAKE A DECISION – choose a Solution based on Risks/Benefits of the various Alternatives (can be a personality type, or a result of training)

7. Implement the Solution – put it into effect

8. Monitor and Evaluate the Outcomes of Your Decisions – watch the outcome – did it work the way you wanted it to? If not, go back & re-evaluate the steps above.

Computer Based Information System

CBIS – Computer Based Information System – formal systems to be studied, rely on fixed definitions of I/O, processing, content, etc. – built for purpose of solving significant problems in an organization, i.e., they exist to solve business problems.

NOTE: The first three (3) systems (TPS, MIS, and EIS/ESS) deal with functional areas of the organization, while the other four (4) systems deal with cross-organizational functions.

Components:

1. Transaction Processing System/Electronic Data Processing System/Data Processing System/Accounting Information System (TPS/EDP/DP/AIS) – handles all the daily transactions of the firm; provides little or no Information for managerial decision-making; provides input to all other components of the CBIS; strictly speaking, Accounting Information System has a completely different meaning today, but traditionally this component was called the AIS; today we think of it more as the Transaction Processing component of the CBIS

2. Management Information System (MIS) – provides information for managerial decision-making; helps provide managers with the info they need to run the company.

3. Executive Information (Support) System (EIS/ESS) – provides information specifically to executives because they do not do the same job as managers and need different information (than managers) to function effectively; originally part of the MIS, but now a separate component.

4. Expert System (ES) – “an expert in a box”; captures the knowledge of an expert in limited areas and provides this information to the firm so the firm does not have to keep an expert on-site.

5. Decision Support System (DSS) – provides information to lend structure to Semi- and Un-Structured problems

6. Office Information Systems (OIS)/Office Automation (OA) – facilitates communication both within and without the office; provides for effective communication at all levels across the organization.

7. Personal and Workgroup Information Systems (P/WGIS) (called Collaborative Systems in the text) – provides information for empowerment and collaboration within/without the organization.

I. Introduction

A. Applications

1. First major computer application - Data Processing

2. Subsequent applications: MIS, DSS, OA, ES

3. All together referred to as CBIS

B. People

1. First C-people were programmer/user (all-in-one)

2. Specialists - experts in 1 or 2 areas, did work for users

3. End-user computing - users developing/running/maintaining their own systems w/ minimal help

III. Information & Management

A. 5 types of Resources:

1. Personnel [Tangible, Physical]

2. Material "

3. Machines (incl. facilities energy) "

4. Money "

5. Information (& Data) [Intangible, Conceptual]

*** Managers use Conceptual resources to manage Physical Resources

B. Increasing interest in Information Management in recent years:

1. Business - Increasingly Complex

a. Increasing influence of International Economics

b. Worldwide competition

c. Increasingly complex technology

d. Shrinking time frames - JIT supplies, telephone orders, automation, telephone and Internet banking, etc.

e. Social constraints - Changing morality (vs. Ethics), legalities, products & services considered desirable/undesirable by society.

2. Computers have increased capabilities & are easier to use.

C. Users/Managers - MIS started as producing Management info, but wound up producing Problem Solving info that can be used at ALL levels - so Who are the actual Users?

1. Users - ANYONE who utilizes output from the system

a. Managers

b. Non-Managers

c. Persons & Organizations in the firm's environment

2. Managers - found at all levels

a. Communications skills

b. Problem solving skills

c. Computer literacy

d. Information literacy - IMPORTANT!

e. Interest in IS due to Increased business complexity

1. Economics

2. Worldwide competition

3. Increased technological complexity

4. Shrinking time frames

5. Social constraints (ethical & legal issues, environment)

f. 3 levels of mgmt.

1. Strategic level - Planning

2. Management Control level - Organize

3. Operational Control level - Direct

D. Improved IS capabilities - IS is part of every office, not a luxury

IV. Systems - a group of elements that are integrated with the purpose of achieving an objective.

Open-loop - no feedback, no controls / Closed-loop - feedback for control

A. Supersystems, Systems, Subsystems

B. Physical vs. Conceptual Systems

C. Systems View - sees business operations as systems within a larger environment

1. Prevents manager from getting lost in organizational complexity and job details;

2. Recognizes necessity of good objectives;

3. Emphasizes importance of all parts of org. working together;

4. Acknowledges interconnections of org. & environment;

5. Places high value on feedback (must have closed-loop system).

V. Info. = Organized Data; data must be gathered & processed into info.

A. Data = raw facts

B. Information Processor - transforms data into information

C. Early focus was on Data Processing, now on MIS, DSS & OA, AI, ES (all 5 subsystems combined = CBIS)

VI. End-User Computing - end user develops/maintains his own systems; IS personnel moving to role of Consultant

A. Increased computer literacy

B. Info. services backlog

C. Low-cost hardware

D. Prewritten software

VII. CBIS - comprised of all 5: DP(or EDP), MIS, DSS, OA, ES

A. Justification - cost of CBIS must make sense

1. Personnel Transferred, not Displaced

2. Increased efficiency (payroll)

3. Reduced investment (inventory)

B. Life cycle (SLC) - USER responsible for SLC!!

1. Planning

2. Analysis

3. Design

4. Implementation

5. Use

C. Context - question today is not whether to use CBIS, but how extensively (just accounting? communications? problem solving?)

D. Cost how to place $value on info-oriented subsystems, subjective values are increasingly used.