SAD Topic 1 - Phase 1 - System Planning (PDF)

Phase 1 - System Planning Chapter 1 – Introduction to Systems Analysis and Design: Chapter 1 – Introduction to Systems Analysis and Design: 1. What Is InformatIon technology? Information technology (IT) refers to the combination of hardware, software, and services that people use to manag...

Phase 1 - System Planning Chapter 1 – Introduction to Systems Analysis and Design: Chapter 1 – Introduction to Systems Analysis and Design: 1. What Is InformatIon technology? Information technology (IT) refers to the combination of hardware, software, and services that people use to manage, communicate, and share information. More than ever, business success depends on information technology. IT is driving a new digital economy, where advances in hardware, software, and connectivity can provide enormous benefits to businesses and individuals. Although economic trends affect IT spending levels, most companies give IT budgets a high priority, in good times or bad. The reason is simple: During periods of growth, companies cannot afford to lag behind the IT curve. Conversely, when the economy slows down, firms often use IT to reduce operating costs and improve efficiency. 2. The Changing nature of information technology The history of IT is a fascinating study of human progress and achievement. We are dazzled by the latest and greatest technology, just as our parents and grandparents were astonished by the arrival of television, space flight, and personal computing. It is important for IT professionals, who live and work in this exciting world, to realize that each technology advance is part of a long-term process that often brings dramatic change, but never really ends. The story of IBM is a good example. As its name suggests, International Business Machines was a major supplier of office equipment and typewriters long before the modern computer era. Herman Hollerith, who invented a card that identified characters by the location of punched holes, founded IBM’s predecessor company in 1896. A deck of hundreds or even thousands of these cards could store data that was easily sorted, queried, and printed by machines. This system sounds archaic now, but punch card technology was a huge advance that revolutionized the business world, and was in use into the 1960s and beyond. Today, IBM is a globe-spanning company with several hundred thousand employees. It has succeeded in part by constantly adapting to its changing business environment. For example, while it was once known primarily as a hardware company, today IBM makes a significant part of its revenue from software and services. Also invests, in its people and tries to hire the best talent available. It has more patents and more Noble Prize winners than any other IT company in history. 3. Systems Analysis and Design Systems analysis and design - is a step-by-step process for developing high-quality information systems. An Information System combines technology, people, and data to provide support for business functions such as order processing, inventory control, human resources, accounting, and many more. Some information systems handle routine day-to-day tasks, while others can help managers make better decisions, spot marketplace trends, and reveal patterns that might be hidden in stored data. Talented people, including a mix of managers, users, network administrators, web designers, programmers, and systems analysts, typically develop information systems. Capable IT professionals like these are always in demand, even in a slow economy. 4. What Does a systems analyst Do? A Systems Analyst is a valued member of the IT department team who helps plan, develop, and maintain information systems. Analysts must be excellent communicators with strong analytical and critical thinking skills. Because systems analysts transform business requirements into IT projects, they must be business-savvy as well as technically competent, and be equally comfortable with managers and programmers, who sometimes have different points of view. Most companies assign systems analysts to the IT department, but analysts also can report to a specific user area such as marketing, sales, or accounting. As a member of a functional team, an analyst is better able to understand the needs of that group and how IT supports the department’s mission. Smaller companies often use consultants to perform systems analysis work on an as needed basis. On any given day, an analyst might be asked to document business processes, test hardware and software packages, design input screens, train users, and plan ecommerce websites. A systems analyst may occasionally manage IT projects, including tasks, resources, schedules, and costs. To keep managers and users informed, the analyst conducts meetings, delivers presentations, and writes memos, reports, and documentation. Information System Components: A system is a set of related components that produces specific results. For example, specialized systems route Internet traffic, manufacture microchips, and control complex entities like the Hubble Telescope, which took the amazing image shown in Figure 1-4. A mission-critical system is one that is vital to a company’s operations. An order processing system, for example, is mission-critical because the company cannot do business without it. Every system requires input data. For example, a computer receives data when a key is pressed or when a menu command is selected. In an information 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. 5 components of Information Sytem Hardware - consists of everything in the physical layer of the information system. For example, hardware can include servers, workstations, networks, telecommunications equipment, fiber-optic cables, mobile devices, scanners, digital capture devices, and other technology-based infrastructure. Software - refers to the programs that control the hardware and produce the desired information or results. - Software consists of system software and application software. System software - manages the hardware components, which can include a single computer or a global network with many thousands of clients. Either the hardware manufacturer supplies the system software or a company purchases it from a vendor. - Examples of system software include the operating system, security software that protects the computer from intrusion, device drivers that communicate with hardware Application software - consists of programs that support day-to-day business functions and provide users with the information they need. - Examples of company-wide applications, called enterprise applications, include order processing systems, payroll systems, and company communications networks. Data - is the raw material that an information system transforms into useful information. - An information system can store data in various locations, called tables. By linking the tables, the system can display the specific information that the user needs—no more, and no less. Figure 1-7 shows a payroll system that stores data in four separate tables. Notice that the linked tables work together to supply 19 different data items to the screen. Processes - describe the tasks and business functions that users, managers, and IT staff members perform to achieve specific results. - Processes are the building blocks of an information system because they represent actual day-to-day business operations. - To build a successful information system, analysts must understand business processes and document them carefully. People - who have an interest in an information system are called stakeholders. - Stakeholders include the management group responsible for the system, the users (sometimes called end users) inside and outside the company who will interact with the system, and IT staff members, such as systems analysts, programmers, and network administrators who develop and support the system. BUSINESS TODAY: 1.4 Business Today 1.5 Modeling Business Operations 1.6 Business Information Systems 1. ENTERPRISE COMPUTING 2. TRANSACTION PROCESSING 3. BUSINESS SUPPORT SYSTEM 4. Knowledge Management 5. USER PRODUCTIVITY 6. SYSTEMS INTEGRATION - Most large companies require systems that combine transaction processing, business support, knowledge management, and user productivity features. For example, suppose an international customer makes a warranty claim. A customer service representative enters the claim into a TP system, which updates two other systems: a knowledge management system that tracks product problems and warranty activity, and a quality control system with decision support capabilities. In this example, a Transaction Processing system is integrated with a knowledge management system and a business support system with decision support features. What Information Do Users Need? 1. Top Management/Managers Top managers develop long-range plans, called strategic plans, which define the company’s overall mission and goals. To plot a future course, top managers ask questions such as “How much should the company invest in information technology?” or “How much will Internet sales grow in the next five years?” or “Should the company build new factories or contract out production functions?” Top managers focus on the overall business enterprise and use IT to set the company’s course and direction. To develop a strategic plan, top managers also need information from outside the company, such as economic forecasts, technology trends, competitive threats, and governmental issues. 2. Middle managers and Knowledge Workers Middle managers provide direction, necessary resources, and performance feedback to supervisors and team leaders. Because they focus on a somewhat shorter time frame, middle managers need more detailed information than top managers, but somewhat less than supervisors who oversee day-to-day operations. In addition to middle managers, every company has people called knowledge workers. Knowledge workers include systems analysts, programmers, accountants, researchers, trainers, human resource specialists, and other professionals. Knowledge workers also use business support systems, knowledge management systems, and user productivity systems. Knowledge workers provide support for the organization’s basic functions. 3. Supervisors and Team leaders Supervisors, often called team leaders, oversee operational employees and carry out day-to-day functions. They coordinate operational tasks and people, make necessary decisions, and ensure that the right tools, materials, and training are available. Like other managers, supervisors and team leaders need decision support information, knowledge management systems, and user productivity systems to carry out their responsibilities. 4. Operational Employee Operational employees include users who rely on transaction processing systems to enter and receive data they need to perform their jobs. In many companies, operational users also need information to handle tasks and make decisions that were assigned previously to supervisors. This trend, called empowerment, gives employees more responsibility and accountability. Many companies find that empowerment improves employee motivation and increases customer satisfaction. Next Meeting: Continuation of Phase 1 - System Planning In addition to understanding business operations, systems analysts must know how to use a variety of techniques: - Systems Development Tools - Systems Development Methods - The Information Technology Department - The Systems Analyst - Trends in Information Technology - Chapter Summary