System Planning and Information Technology 101

Phase 1 - System Planning

• Phase 1 of system planning focuses on the role of information technology in a dynamic business environment.
• This phase involves the development of information systems and explores systems analysis and design concepts.
• It also details the role of the information technology department and its people.
• Deliverable: Preliminary investigation report
• Toolkit Support: Communications and financial analysis tools

Information Technology

• Information technology (IT) encompasses hardware, software, and services used to manage, communicate, and share information.
• IT is crucial for business success, especially in today's digital economy.
• IT spending is generally prioritized, regardless of economic conditions. Growth periods necessitate staying current, while downturns require optimizing operations and costs via IT.

The Changing Nature of IT

• The development of IT reflects human progress and achievement.
• Advancements in technology, such as television, space flight, and personal computing, represent stages of this progression.
• IT Professionals must understand that technological advancements are part of a continuous, long-term process with ongoing changes.

IBM as an Example

• IBM, originally a supplier of office equipment and typewriters, has evolved into a global company.
• Herman Hollerith, an IBM predecessor, invented a card that used punched holes to identify characters, a significant advance in data storage and processing.
• IBM's use of punch-card technology was crucial for business in earlier decades.
• IBM continues to adapt to its business environment.
• IBM focuses on its personnel and talent in addition to maintaining its position in the tech industry.

Employee Clocking In (1953)

• The use of punch cards for timekeeping in 1953 is an example of an older, less sophisticated form of data collection compared to modern systems.

Systems Analysis and Design

• Systems analysis and design is a methodical approach to creating high-quality information systems in phases.

Information Systems

• Information systems combine technology, people, and data to support business functions, such as order processing, inventory control, human resources, and accounting.
• Information systems can also handle everyday tasks and enable improved decision-making based on data patterns.
• The information system often involves different types of personnel based on the tasks being performed (e.g. managers, programmers, analysts).

Systems Analyst Role

• A systems analyst is a crucial member of the IT team, planning, developing, and maintaining information systems.
• Systems analysts excel at communication with strong analytical and critical thinking skills.
• They transform business requests into usable IT projects, working effectively with various stakeholders, including managers, programmers.

Information System Components

• A system comprises interdependent components that produce specific results (e.g., routing internet traffic, data processing for Hubble Telescope).
• Key components include Hardware, Software, Data, Processes and People.

Hardware

• Hardware encompasses the physical elements of an information system, including servers, workstations, networks, telecommunications equipment, and digital capture devices.

Software (Categorization)

• System software manages hardware components in systems (e.g., operating systems, security).
• Application software supports daily business functions and provides relevant user-information (e.g., order processing, payroll).

Data

• Data is raw material for an information system, stored in tables within systems and linked to collect useful information.
• Data is pivotal in payroll systems due to the linked and networked nature of systems components.

Processes

• Processes represent how tasks and business functions are handled to achieve aims.
• Processes are essential elements of information systems as they demonstrate how users/managers/IT support staff perform business functions.

People (Stakeholders)

• Stakeholders are individuals and/or groups (e.g., users, IT staff, management) invested in an information system.

Business Today and Trends

• Current systems need to be adaptable to a constantly changing global market.
• Trends such as globalization, device integration, and cloud computing drive the need for dynamic information systems.

Business Modeling

• Systems analysts use models to depict business operations, information needs, and data flow.
• Business profiles provide summaries of company goals, functions, organization, and outlook.
• Business processes describe particular transactions, events, and outcomes within companies.

Business Information Systems

• Historically, different systems were often designed based on who used them (managers/staff).
• Contemporary systems are increasingly defined by their functions and features, e.g., Enterprise computing, transaction processing.

Enterprise Computing

• Enterprise computing systems manage company-wide operations. Examples include Wal-Mart's inventory control, Boeing's production control, and hotel reservation systems.
• Core objective: integrating multiple company functions (production, sales, accounting).

Transaction Processing

• Transaction processing (TP) is focused on the day-to-day data generated by companies and transactions.
• Order processing, accounts receivable, and warranty claim applications are part of TP.

Business Support Systems (MIS)

• Businesses use management information systems (MIS) for job-related information at all levels within the company, such as production, sales, marketing.
• They help in better decision-making.

Knowledge Management Systems

• Knowledge management systems use a knowledge base, a large database.
• They provide users with quick access to information via normal, English phrases or keywords.
• Employ inference rules to locate information connections and patterns.

User Productivity Systems

• User productivity systems enhance employee efficiency with readily accessible productivity tools (emails, voice/video conferencing, desktop publishing software, etc.).

Systems Integration

• An example of system integration is when a customer service representative files a warranty claim in a transaction processing system. This action subsequently updates linked systems like the knowledge management systems and quality control.
• Systems integrate to improve efficiency, data security, and reliability.

Information Needs of Different Users

• Top managers need strategic plans, market forecasts, technology trends, and external information relevant to company direction.
• Middle managers need detailed information support for their daily operational tasks, but not as extensive as supervisors.
• Supervisors and team leaders need insights into operations and resources.
• Operational employees need systems to enter and receive data in handling their everyday operations and tasks.

Next Steps

• Systems analysts need to understand business operations, and use appropriate techniques such as systems development tools, methods, and trends in Information Technology.

This quiz explores Phase 1 of system planning, focusing on the integral role of information technology in today's business environment. It covers systems analysis, design concepts, and the importance of IT in optimizing operations and communication. Prepare for insights on IT spending and its necessity for business success in a digital economy.