Principles of Management Information Systems PDF - Mutah University

Principles of Management Information Systems Mutah University MIS Department Summer Semester 2023-2024 Prof. Raid Al-Adaileh Principles of MIS 1  Module Objectives The definition of IS and its major...

Principles of Management Information Systems Mutah University MIS Department Summer Semester 2023-2024 Prof. Raid Al-Adaileh Principles of MIS 1  Module Objectives The definition of IS and its major components. Types of IS and their applications. The foundation of IS through understanding of the system approach. The use of information systems in business applications. System development life cycle. General understanding of system analysis and design. Networking Strategic view of IS implementation Principles of MIS 2 ASSESSMENT Mid-term Exam: 30% - End of Week 5 Course Work: 10% Participation: 10% Final Exam: 50% Principles of MIS 3  Chapter One Introducing The Main Concepts Principles of MIS 4 Management Information System (MIS): Analytical View Management + Information + System = MIS Management concept 1. Planning 2. Organizing 3. Directing 4. Controlling Principles of MIS 5 Information?! Information is an organizational asset or resource that enhances the performance and functioning of the organization. Technically, information is a set of data that has meaning and can directly be used to make decisions and to achieve organizational goals. Principles of MIS 6 System?! Our definition of a system throughout this handout will emphasise on viewing a system as a set of interacting, integrating and organized elements or components that aim to achieve certain objectives. We see that the interaction is the heart of the system meaning that we can not think about isolated elements as a system. This interaction is based on well established relationships between the various parts of the system. Principles of MIS 7 MIS is a specialised type of system that can be seen as a set of interrelated and interacted elements or components that collect, store, process, and report data and information that can be used in the process of decision making. Examples: university registration system, airline reservation system, ATM system, banking system. Principles of MIS 8 Principles of MIS 9 Data, information and knowledge Data 'Data' is any symbol, sign or measure which is in a form which can be directly captured by a person or a machine. We define data as raw facts that have no meaning and accordingly can not be directly used in the process of decision making. Principles of MIS 10 Types of data There are four types of data including: Alphanumeric data including numbers and letter. Image data including pictures and images. Audio data including sounds, noise, and tones. Video data including moving pictures and images. Principles of MIS 11 Information Information=data after transformation information can be defined as an organized collection of data that has meaning beyond the value of data themselves and can be used to enhance the process of decision making. Principles of MIS 12 Principles of MIS 13 The Characteristics of Valuable Information Information Systems, Tenth Edition Knowledge Knowledge is an intellectual asset Knowledge is information within peoples’ minds knowledge can be seen as accumulation of information in the person's mind The sources of knowledge include interaction with others, experiences, readings, and emotional factor. Principles of MIS 15  Chapter Two Understanding of the System Concept Principles of MIS 16  A system is a collection of related components (such as people, machines, documents and procedures) that together produces some thing or effect. Every system consists of a group of subsystems that interact to perform certain function. A subsystem is a component of a system, even though it can also be considered a system in its own right. Principles of MIS 17  Example: A manufacturing System may have the following subsystems: Product design Production Sales Delivery Services Principles of MIS 18  The Components of the System Inputs Outputs Processing Feedback Boundary Environment Interface Principles of MIS 19 Systems Classification Principles of MIS 20 System Characteristics 1. Interaction: A system is a dynamically interacting elements their attributes, forming a whole. This means that a system must consist of two or more members or components; one thing is not to be considered a system unless it is composed of multiple interacting components. Dynamically interacting" means that there is movement and change within a system. There should be relationships between the components of the system and exchange of ideas, information, data and physical objects. Principles of MIS 21 2. Interdependent: Interdependent is also an important term because what happens to one part of the system affects the other parts. Remove the roots from a tree and it will die. Break some of the electrical connections in a computer and it will not function. Therefore, we should recognize the system as a whole that is made up of parts. Failure of production department or subsystem to produce a product will affect the existence of the overall organizational system. Principles of MIS 22 3- Integration: each part of the system performs a particular function that is necessary for the functioning of other parts. Additionally, the achievement of the overall system's objectives required the achievement of the objectives of each part or subsystem. The organizational system and its department is an example of this integrated nature of the organizational system. Principles of MIS 23 4-Organization: a system is an organized set of elements that is ordered or structured in such a way that enhances performing of the system's functions. In addition, a system tends to maintain its order and even reach higher level of order between its components. Principles of MIS 24 5- Central objectives: every system should have an objective or a set of objectives. The objectives provide guidance for the identification of the necessary activities that should be undertaken. Principles of MIS 25 Information System in Organizations An organization is best seen as a system that has inputs, processing and outputs. By processing of inputs we add value to them. This added value enables the organization to achieve its objectives. In for-profit organizations, the objectives are measured by the difference between the financial cost of the inputs and the value of the outputs. This difference is usually called profit the major function that is necessary to transform inputs into outputs is the decision making function. Principles of MIS 26  An organization makes decisions to get the inputs and makes decisions to decide on the mechanism of transformation and then makes decisions to export the outputs or transfer them into the environment. All these decisions can’t be made without information. Then, the value of IS for the organization is generated from the value of information for the process of DM. Principles of MIS 27  Objectives Decisions Information Information Systems Principles of MIS 28 The Benefits of IS 1. Gaining competitive advantage 2. Improve product quality 3. Shorter product Cycle 4. Increase productivity 5. Automation of Decisions 6. Reducing the overall cost Principles of MIS 29 7. Developing new forms of organizations and new paradigms of management practices. Virtual organizations. Teleworking. Innovative management. Principles of MIS 30 System Approach to Problem Solving The scientific method The scientific method consists of five steps:- Recognize phenomena in the real world. Formulate a hypothesis about the causes or effects of the phenomena. Test the hypothesis through experimentation. Evaluate the results or outputs. Draw conclusions about the hypothesis. Principles of MIS 31  The system approach is a modification of the scientific method. It focuses on following a systematic process to solve problems including understanding of the problem or opportunity, developing a solution and implementing it. Principles of MIS 32  Stages of system approach Recognize a problem or opportunity in a system context Gather data describing the problem or opportunity Develop alternative solutions Evaluate alternative solutions Select the best solution Implement the selected solution Evaluate the success of the implemented solution Principles of MIS 33  Example - we could view sales department as a system. Then, we can ask – is poor sales performance (output) is caused by inadequate selling efforts (input), out of date sales procedures (processing), incorrect sales information (feedback) , or inadequate sales management (system control mechanism). Principles of MIS 34 Sources of alternatives may include: Experience: The same problem occurred in the past and solution were developed and implemented. Advice from others including consultants and expert systems. The creative ability of the management or problem owners (Brainstorming). Principles of MIS 35 Exercise Exercise Students of Mutah University usually achieve low scores or marks in all courses that are taught in English You should analyze the university system as the overall system and then try to separate subsystems that have an influence on the problem and develop solutions to deal with them. Principles of MIS 36  Chapter Three Types of Management Information Systems Principles of MIS 37 MIS can be classified: According to Management Level There are three levels of management including strategic level, tactical Level and operational level. Principles of MIS 38  MIS based on organizational functions There is no standard classification of organizational functions. A typical set of functions may include marketing, production, logistics, personnel, and finance. Principles of MIS 39  Functional Information System Sales and Marketing subsystem Logistics subsystem Personnel subsystem Production subsystem MIS Finance subsystem Top management subsystem Principles of MIS 40 Transaction Processing System A transaction can be defined as an exchange process between two or more business entities. It might be internal or external transaction. Examples – 1. Making an order from a supplier (External transaction) A company Order Supplier 2. Making an order from a another department Department A Department B (Internal transaction) Production information marketing Principles of MIS 42 TPS is an organized collection of people procedures, software, databases and devices used to record completed business transactions. TPS can also be defined as a set of elements in interaction with each others and aim to collect, store, process and report data and information that are related to daily business transactions. Principles of MIS 43 Steps of Processing a Transaction 1. Data entry Data from a source document (documents generated at the point where a transaction occurs) are entered to the system via input devices. 2. Data validation This step includes checking the accuracy of Data by comparing actual data with Predetermined standards. It also includes error correction. Principles of MIS 44 3. Processing and revalidation Processing of data may include organizing, calculating, classification or summing of data. There are two approaches to process a transaction:- A- Batch processing According to this approach, transactions are accumulated over a certain period of time and processed periodically (daily, weekly, And monthly). In Batch processing, the outputs or information is not up to date and that can Be risky specially in banking sector. Principles of MIS 45  B- Online processing According to this approach, data are processed as they are created. There is no time lag between data creation and data processing. Example: ATM system The information that are provided or asked at any time will be up to date information. After processing, the outputs should be revalidated and this includes checking the information in term of its accuracy, face validity and content validity. Principles of MIS 46 4. Data storage for future use To increase the value of TPS and to make it useful for other system, processed data should be stored. This enables maximization of Benefits by using the information more than once. It also can be a management tool to ensure effective control. Principles of MIS 47 5. Output reporting to the decision makers Output reporting can be made using documents or reports or using forms and models. Document -Record of one transaction. Report - A summary of two or more transaction Principles of MIS 48 6. Query support To allow users to access data and information when needed. This can increase the value of TPS. Principles of MIS 49  Characteristics of TPS Designed to support employees and operational manager to deal with daily business events. TPS is a source of data and information for other systems. The main source of data for this system is the formal and direct interaction between all business entities. Therefore, this system can be seen as a link between all the business entities either internal or external. Principles of MIS 50 Expert System (Knowledge–based system) Expert system (ES) is a branch of Artificial Intelligence (AI) which is part of computer science. AI aims to design and develop machines that emulate human intelligence. ES is a system that incorporates the knowledge and problem solving skills of a human being to solve semi structured and unstructured problems that need theoretical and practical experience and knowledge. Principles of MIS 51 The Components of ES 1. Knowledge Base A store house of knowledge and experience gathered from experts in a given field. Example - An expert car machine (mechanicals) would be the source of knowledge and practical experience for an export system designed to solve car problems. Principles of MIS 52 2. Inference engine Has the ability to identify interrelationships and rules of behaviour between different pieces of knowledge to solve the given problem. Principles of MIS 53 3. User interface Consists of tools like menus, graphics, Explanation facilities that help user to interact with the system. One of these tools is the step by-step explanation instructions that tell the user how to solve a problem by following a set of ordered steps. Principles of MIS 54 4. Knowledge engineer The person who serves as an interaction mechanism between expert system Components and experts. He has the responsibility of extracting, coding, and preparation of knowledge base to be used by users. Principles of MIS 55  Characteristics of ES 1. Designed to capture the knowledge and problem solving skills of a human expert. 2. The primary function of ES is to disseminate expertise throughout the organization, therefore they can serve all managerial levels. 3. Sources of data for this system might include internal and external source for a very simple reason related to the nature of data which is an accumulation of knowledge that can be obtained from or out of the organizational context. 4. ES can explain their reasoning or suggested decisions. Principles of MIS 56  The Functioning of ES ES is a rule-based system meaning that the identification of the solution is based on following a set of rules (IF-THEN). These rules direct the user towards identification of the best solution. The most common approach that is used in ES is the goal driven system. The reason for this is that normally an Es will have to collect information about the problem from the user by asking them questions. By using a goal driven strategy we just ask questions that are relevant to a hypothesized solution. Principles of MIS 57  The interaction process between the system and the user involves asking question by the system and providing answers by the user. Some applications of ES include credit granting, loan analysis, stock picking and medical diagnosis. Principles of MIS 58 Principles of MIS 59 Advantages of ES ES reduces the need for highly paid experts and makes the available experts more productive on the long term. ES is a way of preserving, replicating and disseminating of expert knowledge through out the organization. ES produces better documentation of the rationale for a decision than many human experts do. This is due to the following of logical approach to define the problem and derive solution. Principles of MIS 60  ES enables understanding of the mechanism of the decision making process (how the decision has been made or is made). This can be a rich experience for users. Therefore, ES can be used as a training tool for novices. Principles of MIS 61  Office Automation System (OAS) OAS is used for everyday information Processing tasks in offices and business organizations. They help people perform personal record keeping, writing, calculation and communication. Office Automation involves the planned application of integrated information handling tools and methods to improve the productivity of people in office operations. Principles of MIS 62  Office Automation System is a general term that includes a wide range of applications of computer, communication and information technologies in office environments. Three streams of development concerning OAS can be identified: Principles of MIS 63 1. computing (payroll and inventory-control systems). 2. Text processing. 3. communication technologies. OAS can achieve: 1. COST DISPLACEMENT and 2. VALUE-ADDED results Principles of MIS 64 Some Applications of OAS Word processor Desktop Publishing System Presentation packages (PowerPoint) Spreadsheets programs Communication systems (internet, intranet, extranet, Teleconferencing, ) Principles of MIS 65 Benefits of OAS Increase productivity of office workers and managers by reducing the time necessary to perform office activities. Producing attractive, accurate and quality documents, reports and publications. Enhance commutation processes. Principles of MIS 66 Decision Support System (DSS) Definition DSS is an interactive information system that provides information, decision models and data manipulation tools. This system can be used to make semi-structured and unstructured decisions where no one knows exactly how the decision should be made. Principles of MIS 67 Examples of these decisions include: - Location selection - New product development - Extension decision - Pricing decision Principles of MIS 68  The functioning of DSS The basic function of DSS is to integrate internal and external data. Internal data are downloaded from the TPS or other internal sources while external data are obtained from external sources (organization intelligence system) like news papers, journals, and official publications. These data are then integrated in a decision models to produce alternative solutions to a particular organizational situation or problem which is usually described as strategic problem or situation. However, DSS should be seen as a facilitator of DM process meaning that the system facilitates the process of DM more than solving a given problem. Principles of MIS 69 Decision Making Process A 'decision' is a choice among alternative courses of action. The simplest model of decision-making includes the following steps: A Trigger (an indication of the existence of the problem (low sales). Problem recognition. Information-Gathering. Alternative-Generation. Choice. Principles of MIS 70  More comprehensive model of decision making process include three phases: Principles of MIS 71 Managerial Roles Interpersonal roles Informational roles Decisional roles Principles of MIS 72 Levels of DM SD TD OD Principles of MIS 73 Characteristics of Strategic Decision (SD) Influence the overall organizational performance. Focus on the achievement of overall organizational objectives. Mainly made by top managerial level. Long – term plans Mainly based on external information. Principles of MIS 74 Characteristics of Tactical Decision (TD) More details about the achievement of objectives. Made by middle line managers. Influence the performance of a particular organizational subsystem. There should be a co-ordination between these subsystems. Principles of MIS 75 Characteristics of Operational Decision (OD) OD can influence a specific organizational task or employee. Made by “lower managerial level” and employees. Focus on “daily business transactions” or activities. This type of decision is easy to make “programmed decisions”. Principles of MIS 76 Programmed versus Nonprogrammed Decisions Programmed decisions Structured situations with well defined relationships Quantifiable Management information system Easy to computerize Nonprogrammed decisions Rules and relationships not defined Problem is not routine Not easily quantifiable Principles of MIS 77 Components of DSS Information base. Model base (decision models). Statistical tools. User interface. Principles of MIS 78 Information base Provide access to internal and external sources of data and information. TPS and OIS Sources. Principles of MIS 79 The Model Base Financial models Cash flow Internal rate of return Statistical analysis models Summary statistics Trend projections Hypothesis testing Graphical models Project management models Principles of MIS 80  Data-driven versus Model-driven DSS Data-driven DSS - primarily performs qualitative analysis based on the company’s databases Model-driven DSS - primarily performs mathematical or quantitative analysis Principles of MIS 81 Statistical tools Usually embedded in the model base to enhance performing of quantitative analysis of a set of data. 1. Factor analysis. 2. Regression. 3. Correlation. Principles of MIS 82 User Interface A tool to communicate with the system components. Friendly user interface. Principles of MIS 83  Characteristics of a DSS Handle large number of data and information from different sources (internal ISs and organizational intelligence systems). Provide different presentation facilities and formats including screen outputs, printed materials, textual, schematic and mathematical representation. Principles of MIS 84 Characteristics of DSS Support drill down analysis to provide more details. Perform complex analysis and comparisons using advanced software packages (factors analysis, regression, correlation…etc). Support optimization, satisfying and heuristics using: Simulation: duplicating the features of real environment. What-if analysis: making hypothetical changes and viewing the outcomes of each of them. Goal-seeking analysis: the process of determining the inputs required to obtain certain outputs. Principles of MIS 85 Enterprise Resource Planning (ERP) ERP is an organizational-wide information system that serves as a common, integrated information infrastructure for basic business processes. ERP systems integrate the business processes in all departments and functions across an organization into a single computer system that can serve all departments’ specific needs. Principles of MIS 86 Enterprise Resource Planning Real-time monitoring of business functions Supports human resources, sales, and distribution Accommodates the different ways each company runs business Principles of MIS 87 ERP Model Management Productive Finance Dep. Dep. Human ERP Training & Resource Research Dep. Branch Branch A Branch C B Principles of MIS 88 Advantages of ERP Eliminates costly, inflexible traditional systems Improved technology infrastructure Improved work processes Increased data access for decision making Principles of MIS 89 Disadvantages of ERP High cost of development Radical change associated with ERP projects One vendor risks Lack of strategic direction. Principles of MIS 90  Chapter Four System Development Life Cycle (SDLC) 91  Definition SDLC is all the stages that we have to follow in order to develop a system starting with an idea or a need until designing and implementation. SDLC Model or Approaches 1. Waterfall model 2. Prototyping 3. Rogers’ Model 4. Logical system development lifecycle 92 Waterfall Model The first structured approach to develop a system. The model can be seen as a time– ordered list of activities that are necessary to develop a system. Stages of Waterfall model 1. Feasibility study 2. Requirements analysis (system analysis) 3. System and Software design stage 4. Coding and internal testing 5. Integration of the system and testing the external effectiveness 6. The maintenance stage 93 Feasibility Study This stage is a theoretical stage involving an investigation of the theoretical foundation of the system. This includes but not limited to: The need for system. Objectives of the system. Possible sources of funding. Added – value of the system. The possibility to improve the current system. Cost – benefit analysis. 94  The Requirements Analysis In this stage, the problem is specified along with the desired objectives (goals), the constraints are also identified. In addition, relationships between system components are explored based on extensive communication between users and developers. We should also identify what do we need to develop the system; developers, users, equipment, software and procedures. Data collection is an important part of this stage. Possible methods of data gathering include Questionnaires Interviews Observations Documentary analysis 95  System and Software design The system specifications and requirements are translated into a software representation. The software engineer at this stage is concerned with: Data structure Software architecture Algorithmic detail and Interface representations The hardware requirements are also determined at this stage along with a picture of the overall system architecture. By the end of this stage, the software engineer should be able to identify the relationship between the hardware, software and the associated interfaces. Any fault in the specification should ideally not be passed or ignored. 96  Coding and internal testing This stage involves translation of the system requirements and processes into computer codes. In addition, we should test the system software individually to check its performance. 97 Integration of the system and testing the external effectiveness In the integration and testing stage all the program units are integrated and tested to ensure that the complete system meets the software requirements. This involves testing the overall performance of the system in real – world environment. After this stage the software is delivered to the customer. 98  The Maintenance stage This is usually the longest stage in the system life cycle. In this stage the system is updated to: 1. Meet the changing customer needs. 2. Adapted to accommodate changes in the external environment. 3. Correct errors and oversights previously undetected in the testing stage. 4. Enhancing the efficiency of the software. 99 Problem in Waterfall Model 1. This model proved to be useful in developing low level system (clerical and accounting system) and less useful in developing high – level system (DSS, ESS). 2. Empirical evidence suggests high maintenance cost when developed with this approach 3. This model assumes that the only role for ordinary users is in the requirement analysis stage. This can influence the systems effectiveness and its ability to function in real world environment. 4. This model doesn’t provide developers of the system with a chance to turn back and this reduces the level of flexibility. 100  Prototyping Model Prototyping is a system development approach that is based on developing an initial version of the system or part of the system and using this version to obtain feedback concerning the performance of the system this feedback can be used by developers to develop a second best version of the system. 101 There are a few different approaches that may be followed when using the Prototyping Model: 1. creation of the major user interfaces without any substantive coding in the background in order to give the users a "feel" for what the system will look like, 2. development of an abbreviated version of the system that performs a limited subset of functions; development of a paper system (depicting proposed screens, reports, relationships etc.), or 3. Use of an existing system or system components to demonstrate some functions that will be included in the developed system. 102 Stages of Prototyping Model Feasibility study Good candidate Searching for for prototyping? new idea Initial attempts to define requirements Develop working Prototype (design, coding, integration) Use and evaluate prototype Prototype Redefine meets needs? requirements Document prototype Implementation System operation Maintenance and enhancement 103  Benefits of Prototyping Model This model provides the developers of the system with a chance to turn back, and respond more effectively to the users’ requirements. This model provides live environment. According to this model, user directly and continuously involves in specifying requirements. A prototype may provide early training for future users of the system. 104 Drawbacks of Prototyping Model Prototyping can lead to poorly designed systems. Because the primary goal of Prototyping is rapid development, the design of the system can sometimes suffer because the system is built in a series of "layers" without a global consideration of the integration of all other components. In addition, in design of complex system, prototyping may continue too long because there may be no well-defined completion criterion. An effective management of the development process is necessary. 105 Rogers’ Model According to Rogers Clarke, important elements of the SDLC include phases, tasks and checkpoints: a Phase is a broad set of related tasks; a Task is a specific activity with a defined purpose; and a Checkpoint, also called a Milestone, or a Deliverable, is a defined outcome whose delivery signals the completion of a Phase or Task. 106  Stages of Rogers’ Model 1. Project Planning. This establishes the project's purpose, scope, stakeholders, cost/benefit analysis, resourcing, and project management framework. Its Checkpoint is an agreed Terms of Reference and Project Plan. 2. Requirements Analysis. This establishes 'what' the product is to do. It requires that participants adopt an enquiring, analytical frame of mind, rather than the 'synthetic', inventive or constructive approach appropriate in later Phases. Its Checkpoint is an agreed System Requirements Statement. 107 3. System Design. This establishes 'how' the product is to perform the functions defined in the SRS. Its Checkpoint is an agreed System Design Specification. This Phase may be further broken down into: Logical Design. This is largely independent of the physical environment in which the product is to run; and Physical Design. This maps the Logical Design onto a physical environment, comprising specific systems software, networks and workstations. Construction. This involves the evaluation and acquisition of existing software, the writing of additional software, the detailed specification of manual activities, the integration of all elements into a whole, and successive layers of testing of the software. Its Checkpoint is an integrated application that has satisfied defined quality standards, including multiple levels of testing, supported by appropriate documentation. 108 4. Implementation. This is the introduction of the service into usage by the intended clientele. Its Checkpoint is an accepted, operational service; 5. Operation. This is the ongoing use of the system, and includes provision for incident reporting and work requests to deal with errors, and with changes in the system's environment and in users' needs. 109 6. Review is undertaken at the completion of all Phases, and of major Tasks; and on a periodic basis. The purposes of a review are: to assess progress and delays; to account for resource-usage; to explain material variances from resource-allocations and elapsed-time schedules; to identify any remedial action that may be necessary, to assist in the re-estimation of uncompleted Phases and Tasks; to assist in the planning of future Phases and Tasks; and (in the case of serious negative variances) to provide management with information to support a 'go/no-go' decision about continuation of the project. 110 111  Some project management methods seriously short-change the Requirements Analysis Phase. These are typically based on IEEE standards, have a heavily 'software engineering' flavour, and substitute a 'Functional Design Specification' for the SRS. These approaches fail to appreciate the significance of user needs, and in effect replace the 'what'-oriented, user- focused Requirements Analysis Phase with a 'how'-oriented, technical/synthetic/constructive Conceptual Design Phase. 112  Studies have shown conclusively that errors made during the development of a system are much more expensive when made in later stage. It is accordingly very risky to short-change the Requirements Analysis Phase and adopt a technical or software engineering approach too early in the project. 113  Logical SDLC 1. Initiation Phase The initiation of a system begins when a business need or opportunity is identified. A project manager should be appointed to manage the overall of development process. This business need is documented in a proposal is prepared to highlight the activities of the development process. After the proposal is approved, the system concept development phase begins. 114 2. System Concept Development Phase Once a business need is approved, the approaches for accomplishing the concept are reviewed for feasibility and appropriateness. The systems boundary document identifies the scope of the system and requires management approval and funding before beginning the planning phase. 115 3. Planning Phase The concept is further developed to describe how the business will operate once the approved system is implemented, and to assess how the system will impact employee and customer privacy. To ensure the products and /or services provide the required capability on-time an within budget, project resources, activities, schedules, tools, and reviews are defined. Additionally, security certification and accreditation activities begin with the identification of system security requirements and the completion of a high level assessment. 116 4. Requirements Analysis Phase Functional user requirements are formally defined and delineate the requirements in terms of data, system performance, security, and maintainability requirements for the system. All requirements are defined to a level of detail sufficient for systems design to proceed. All requirements need to be measurable and testable and relate to the business need or opportunity identified in the Initiation Phase. Comprehensive identification of requirements requires effective communication between users and developers of the system and continuous user involvement. 117 5. Design Phase The physical construction of the system is defined during this phase. The operating environment is established, major subsystems and their inputs and outputs are defined, and processes are allocated to resources. Everything requiring user input or approval must be documented and reviewed by the user. The physical characteristics of the system are specified and a detailed design is prepared. Subsystems identified during design are used to create a detailed physical structure of the system. Each subsystem is partitioned into one or more design units or modules. Detailed logic specifications are prepared for each software module. 118 6. Development Phase The detailed specifications produced during the design phase are translated into hardware, communications, and executable software. Software shall be unit tested, integrated, and retested individually in a systematic manner. 7. Integration and Test Phase Hardware is assembled and tested to ensure external effectiveness of the system in terms of its ability to operate in real-world environment. The various components of the system are integrated and systematically tested. The user tests the system to ensure that the functional requirements, as defined in the functional requirements document, are satisfied by the developed or modified system. Prior to installing and operating the system in a working environment, the system must undergo certification and accreditation activities. 119 8. Implementation Phase The system or system modifications are installed and made operational in a production environment. This phase is initiated after the system has been tested and accepted by the user. This phase continues until the system is operating in production in accordance with the defined user requirements. To facilitate the implementation of the new or modified system, organizational and technical arrangements should be considered. This includes providing technical as well as organizational training. 120 9. Operation and Maintenance Phase This phase is an ongoing phase. The system is monitored for continued performance in accordance with user requirements. The operational system is periodically assessed through In-Process Reviews to determine how the system can be made more efficient and effective. Operations continue as long as the system can be effectively adapted to respond to an organization’s needs. When modifications or changes are identified as necessary, the system may re-enter the planning phase. 121 10. Feedback Phase The feedback phase ensures the orderly termination of the system and preserves the vital information about the system so that some or all of the information may be reactivated in the future if necessary. Particular emphasis is given to proper preservation of the data processed by the system, so that the data is effectively transferred to another system or archived in accordance with applicable records management regulations and policies, for potential future access. 122  Initiation System concept development Planning Requirements analysis Design Development Integration and testing Implementation Operation and maintenance Feedback 123  Chapter Five Database Management System (DBMS) 124  Database is a very large collection of data (e.g. registration database). Examples of data that can be stored in registration database include students names / students numbers / students programs of study / students addresses /students classification /courses numbers/levels of study/courses names/teachers names/ teachers qualifications/ teachers numbers. Database Management System (DBMS) is a software package that is designed to store and manage a database. 125 Traditional Approach for IS (TAIS) TAIS is a file – oriented approach where data concerning each program or function are stored in a separate master file and then accessed by the users through application software (see figure below). 126 TAIS has the following disadvantages: 1) Data redundancy Identical data are usually stored in two or more files this can increase the cost of storing data and reduce the effectiveness of the system. 2) Lack of integration Relationships or interrelations between data are not considered according to this approach. 3) Programs / data dependence Data that are related to each function are stored in a separate data file. 4) Lack of flexibility. According to TAIS, information is provided in the form of scheduled reports that are previously determined. This can reduce the system responsiveness and its ability to adapt to a changing business environment. 127 Database Management System The Hierarchy of Data 128  DBMA is a set of programs that serves as an interface between application programs and a set of coordinated and integrated physical files that are called database. Compared with TAIS, DBMA focuses on integration of business functions data in one single database and provides the user with an interface through the use of query language. 129  Classification of database (1) Subject database Contains data about a subject of broad interest for many people throughout the organization Example: employees database, customer database. (2) Functional database Contain data about a particular organizational function and provides access to a certain group of people. Examples: - Production database. - Finance database. - Inventory database. 130  Advantages of DBMS may include: Eliminate data redundancy. The use of DBMS can achieve data / program independence. DBMS can provide an effective interface between the user and the DBMS. This interface is usually called “query language “. DBMS can improve the security of the system through clear identification of responsibilities and the involvement of system administrator. 131  Chapter Six Network Fundamentals  Definition A system of interconnected elements used to connect computers and computer equipment in a building, around the country, or around the world to enable electronic communication. Benefits Improving response time Support organizational decision making process Facilitating the flow of data and information throughout organization. Enable the formation of strategic alliances through inter organizational networks Telecommunications Network Telecommunication is the transmission of data between devices in different locations. Telecommunications applications in business include transmission of data of every type. Basic form of telecommunications include telephone calls, watching television or listening to radio. The main aim of telecommunications is to reduce the time of communication between people in separate geographical areas.  Telecommunication network is a system of interconnected elements linked by facilities (i.e., physical connections) over which traffic will flow. The traffic may be conversations, information, or complex video or audio services. The telecommunications network must also be able to control the interconnected elements in different locations. Network Design Parameters (NDP) NDPs can be seen as an evaluation criteria representing the effectiveness of a network. the following are the most important parameters that are used to define how the network must perform to meet the users requirements: 1. Availability 2. Reliability 3. Security 4. Response time 5. Throughput 6. Robustness 7. Cost Network Topologies The physical topology of a network refers to the configuration of cables, computers, and other peripherals. It also refers to the manner in which devices on the network are physically arranged together. Types of Physical Topologies Linear Bus topology. Star topology. Tree topology. Ring topology. Linear Bus Topology Advantages of a Linear Bus Topology Easy to connect a computer or peripheral to a linear bus. Requires less cable length than a star topology. Disadvantages of a Linear Bus Topology Entire network shuts down if there is a break in the main cable. Terminators are required at both ends of the backbone cable. Difficult to identify the problem if the entire network shuts down. Not meant to be used as a stand-alone solution in a large building. Star Topology Advantages of a Star Topology Easy to install and wire. No disruptions to the network when connecting or removing devices. Easy to detect faults and to remove parts. Disadvantages of a Star Topology Requires more cable length than a linear topology. If the hub or concentrator fails, nodes attached are disabled. More expensive than linear bus topologies because of the cost of the concentrators. Tree Topology Advantages of a Tree Topology Point-to-point wiring for individual segments. Supported by several hardware and software vendors. Disadvantages of a Tree Topology Overall length of each segment is limited by the type of cabling used. If the backbone line breaks, the entire segment goes down. More difficult to configure and wire than other topologies. Ring Topology  Types of Network Local Area Network (LAN) Wide Area Network (WAN) Local Area Network (LAN) Wide Area Network (WAN)  Chapter Seven Strategic Implementation of Information Systems 7/16/2024 150  IT Vs IS Strategic Perspective 7/16/2024 151 Information Technology. Vs Information System In principle you could think out the fundamentals of information systems without reference to the technology used in today’s systems. Information systems have existed in organisations prior to the invention of IT, and hence ISs do not need modern IT to exist. 7/16/2024 152 Information Technology. Vs Information System ISs are distinct from information technology (IT), with IT being a component elements of most modern IS. The use of ISs without reference to IT is referred to as Manual IS. 7/16/2024 153 Information Technology. Vs Information System Given the extensive use of computer and communications technology, it is now necessary to think of IS in relation to IT, not least because the rapidly changing technology offers the possibility for new kinds of information systems well beyond the capability of earlier technology. 7/16/2024 154 Strategic Implementation View IS Technology Dimension Organizational Dimension 7/16/2024 155 IT and Organization Organizational Components People. Management. Processes. Structure. 7/16/2024 156 IT and organizational Processes Eliminate process movements. Save time Process re-design From clerical to managerial processes Unlimited working hours (E-commerce, E-government…Etc) 7/16/2024 157 IT and Management New management styles. Decentralization Vs. centralization. Delegation of authority. Middle line management. Management skills. Power structure. 7/16/2024 158 IT and People Cutting off some jobs. New skills. Less direct communication. Chance for development. Prestige. Social isolation. 7/16/2024 159 IT and Organizational Structure From vertical to horizontal (flat). Wider span of control. Closer organizational levels. Lines of communication. More delegation with better control. More effective information flow. 7/16/2024 160 IT and Organizational Structure Job enrichment. Job enhancement. 7/16/2024 161 Strategic view Strategic implementation of IS requires comprehensive understanding of different aspects. 7/16/2024 162  External business Current Internal IS / IT environment applications environment I portfolio N Internal business P environment External IS / IT U environment T S Strategic IS / IT Planning, approaches, planning tools & techniques process O IS management Business U IT strategy strategy IS strategy T P U Applications Models & T portfolio matrices S Adapted from: Ward et al Figure 3.8 7/16/2024 163 Technology Diffusion Models McFarlan & McKenney (1982) proposed an Information Technology Diffusion Procedural Model (ITDPM) that includes technology identification and investment, experimentation and learning, rationalization and management control, and widespread technology transfer. 7/16/2024 164 Technology Acceptance Model This model specifies the causal relationships between system design features, perceived usefulness, perceived ease of use, attitudes toward using, and actual usage behavior 7/16/2024 165 Rogers Model According to Rogers (1995), the innovation process within the organization consists of two phases (initiation and implementation) and five steps that usually occur in a time-ordered sequence of knowledge, persuasion, decision making, implementation and confirmation. 7/16/2024 166  In order to reap the full benefits of IT, we should subsequently match the human side, which could be framed as organizational culture with technological components 7/16/2024 167  Techno-cultural model for understanding IT Strategic Trend Organizational Domain Current Trend Technical Domain 7/16/2024 168  Organizational Technology Model Understanding the organizational context. Identification of organizational needs. Exploring technology domain. Organizational preparation. Implementation. Continuous review and maintenance. 7/16/2024 169