4.0 CHAPTER 4 - INFORMATION SYSTEM AND SAD 2023.pdf

Chapter 4 Information System and Systems Analysis and Design Learning Objectives ❑ Explain the parts of an information system: people, procedures, software, hardware, data, and the Internet ❑ Explain the functional view of an organization and describe each function ❑ Describe the management level...

Chapter 4 Information System and Systems Analysis and Design Learning Objectives ❑ Explain the parts of an information system: people, procedures, software, hardware, data, and the Internet ❑ Explain the functional view of an organization and describe each function ❑ Describe the management levels and the informational needs for each level in an organization ❑ Discuss how information flows within an organization 11-2 Learning Objectives ❑ Discuss computer-based information systems. ❑ Distinguish among a transaction processing system, a management information system, a decision support system, and an executive support system. ❑ Distinguish between office automation systems and knowledge work systems. ❑ Explain the difference between data workers and knowledge workers. 11-3 Part 1: Information System 4 Introduction ❑ An information system is a collection of people, procedures, software, hardware, data, and the Internet ◦ They all work together to provide information essential to running an organization ◦ Computers are used in organizations to keep records of events ❑ Competent end users need to understand how the information flows as it moves through an organization 11-5 People ❑ It is easy to overlook people as one of the parts of an information system ❑ Yet this is what personal computers are all about—making people, and the end users like you, more productive ❑ People are involved in information systems in just about every way ◦ ◦ ◦ ◦ People as a creator of information systems people who develop the information systems people as a support for information systems people who use information systems 11-6 Procedures ❑ The rules or guidelines for people to follow when using software, hardware, and data are procedures. ❑ These procedures are typically documented in manuals written by computer specialists. • Software and hardware manufacturers provide manuals with their products. These manuals are provided in either printed or electronic form. 11-7 Software ❑ A program consists of step-by-step instructions that tell the computer how to do its work. ❑ The purpose of the software is to convert data (unprocessed facts) into information (processed facts). ◦ For example, a payroll program would instruct the computer to take the number of hours you worked in a week (data) and multiply it by your pay rate (data) to determine how much you are paid for the week (information). 11-8 Hardware ❑ The equipment that processes the data to create information is called hardware. ❑ It includes smartphones, tablets, keyboards, mice, displays, system units, and other devices. ❑ Hardware is controlled by software. 11-9 Data ❑ The raw, unprocessed facts, including text, numbers, images, and sounds, are called data. ❑ Processed data yields information, and this Data must ◦ ◦ ◦ ◦ Accurate Timely Specific Organized for a purpose, 11-10 Internet ❑ Almost all information systems provide a way to connect to other people and computers, typically using the Internet. ❑ This connectivity greatly expands the capability and usefulness of information systems. 11-11 Why are computers used in organizations? ▪ To keep records of events. ▪ To help make decisions. For example: Point-of-sale terminals record sales as well as which salesperson made each sale. This information can be used for decision-making. For instance, it can help the sales manager decides which salespeople will get year-end bonuses for doing exceptional work. 11-12 ❑ Do not just keep track of transactions and day-to-day business operations. ❑ Information flows vertically and horizontally throughout an organization ❑ Information systems support the natural flow of information within an organization’s structure ◦ 5 Functional Areas ◦ Management Levels ◦ Information Flow 11-13 ❑ Accounting ❑ Marketing ❑ Human Resources ❑ Production ❑ Research 11-14 Management is usually divided into three levels: Top, Middle, and Supervisors 11-15 ❑ Each level of management has different information needs ❑ The information flows to support these needs ◦ Top management ◦ Vertical, horizontal, and external ◦ Middle management ◦ Vertical and horizontal ◦ Supervisor ◦ Primarily vertical 11-16 11-17 11-18 Question to be answered • What is a transaction processing system? How does it help supervisors? • What is a management information system (MIS)? • What is a decision support system (DSS)? • How are MIS is different from DSS? • What is an executive support system? Who uses it? What is it used for? 11-19 ❑ Records day-to-day transactions in a database ❑ Also called data processing systems (DPS) ❑ Transaction processing systems generally go through a five-stage cycle of o o o o o Data entry activities Transaction processing activities File and database processing Document and report generation Inquiry processing activities. 11-20 Examples of TPS systems o Sales order entry o Hotel reservation systems o Payroll o Employee record keeping o Automated teller machines o Credit card authorizations o Online bill payments o Self-checkout stations at grocery store o The trading of stocks over the Internet o Many other electronic commerce 11-21 Example works of TPS for Accounting ❑ Sales order processing ❑ Accounts receivable ❑ Inventory and purchasing 11-22 What is MIS? o MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision-makers can use to make day-to-day decisions. 11-23 The need for MIS ❑ MIS provides the information needed for decision-makers to make effective decisions. ❑ MIS systems provide a smooth way of communication within and outside the organization ❑ Record keeping – MIS records all an organization's business transactions and provides a reference point. 11-24 ❑ Produces standardized reports to support decisionmaking by middle managers ❑ Integrates data and summarizes details from databases in a structured form ❑ Produces predetermined reports ◦ Periodic reports ◦ Exception reports ◦ Demand reports 11-25 Examples of MIS ❑ Some other examples of management information systems in an organisation ◦ ◦ ◦ ◦ ◦ ◦ process control, office automation enterprise resource planning finance systems management reporting and many more … 11-26 ❑ Flexible tool for analyzing data for decision-making purposes ❑ Enables managers to get answers to unexpected and generally non-recurring problems ◦ Reports do not have a fixed format ❑ Microsoft Access is often used to provide an easy front-end interface for performing SQL decision support queries 11-27 ❑ User ◦ A decision-maker, like yourself ❑ System software ◦ Operating system ◦ Easy to learn and use ❑ Data ◦ Internal data ◦ External data ❑ Decision models 11-28 Strategic models ◦ Assists top level management in long-range planning Tactical models ◦ Assists middle-management control the work ◦ Financial and sales promotion planning Operational models ◦ Assists lower-level managers accomplish the daily activities and objectives 11-29 Examples of DSS ❑ GPS: A GPS analyzes route information and traffic data to plan the best path between places. ❑ Crop planning: Decision support systems help farmers know the best time to plant, fertilize and harvest crops. ❑ Enterprise resource planning (ERP) dashboards: Decisionmakers use ERP dashboards to oversee performance indicators. ❑ Clinical decision-making: Medical professionals use clinical decision-support systems to help diagnose and plan treatment for patients. 11-30 ❑ Designed for top management ❑ Sophisticated software for presenting, summarizing, and analyzing data, but specifically designed to be easy-to-use ❑ Provides immediate access to a company's key performance indicators 11-31 ❑ Information workers ◦ Data workers ◦ Knowledge workers ❑ Office automation systems (OASs) ◦ Supports data workers ◦ Project management programs ◦ Videoconferencing systems ❑ Knowledge work systems (KWSs) ◦ Use specialized systems, such as CAD/CAM 11-32 11-33 33 ❑ Information systems managers oversee the work of programmers, computer specialist, systems analysts, and other computer professionals ❑ Employers look for individuals with strong technical backgrounds, with a Master’s degree ❑ Strong leadership and communications skills ❑ Information systems managers can expect to earn from RM 49,200 to RM 73,600 annually 11-34 ▪ Information overload ◦ May have a negative effect ◦ E-mail is one of the major sources of overload ▪ How to handle e-mail ◦ ◦ ◦ ◦ ◦ ◦ Be selective Remove Protect Be brief Stop spam Don't respond 11-35 a) Name and discuss the five common functions of most organizations. b) Discuss the roles of the three kinds of management in a corporation. c) What are the four most common computer-based information systems? d) Describe the different reports and their roles in managerial decision making. e) What is the difference between an office automation system and a knowledge work system? 11-36 Part 2: Systems Analysis and Design 37 Learning Objectives ❑ Describe the six phases of the systems life cycle. ❑ Identify information needs and formulate possible solutions. ❑ Analyze existing information systems and evaluate the feasibility of alternative systems. 11-38 Learning Objectives ❑ Identify, acquire, and test new system software and hardware. ❑ Switch from an existing information system to a new one with minimal risk. ❑ Perform system audits and periodic evaluations. ❑ Describe prototyping and rapid applications development. 11-39 ❑ Most people in an organization are involved with an information system of some kind. ❑ For the organization to create and use the system requires thought and effort. ❑ In this chapter, you learn about history of software development methodology, six step process for performing systems analysis and design. 11-40 11-41 41 11-42 42 11-43 43 11-44 44 Six-phase problem-solving procedure for examining and improving an information system 11-45 The preliminary investigation determines the need for a new information system 11-46 Data is collected about the present system and then analyzed to determine the new requirements 11-47 ❑ Define the alternatives, select the best system, and write a systems design report ❑ Evaluate systems according to economic feasibility, technical feasibility, and operational feasibility 11-48 In the development phase, you acquire the software and hardware, and test the new system 11-49 ❑ Also known as conversion ❑ Converting from the old system to the new one ❑ Training people to use the new system ❑ Types of conversion approaches include: ◦ ◦ ◦ ◦ Direct Parallel Pilot Phased 11-50 Systems maintenance is a very important, ongoing activity that includes a systems audit and a periodic evaluation 11-51 Alternatives to the systems life cycle may be used if the system is not feasible ◦ Prototyping is building a model ◦ Rapid applications development (RAD) 11-52 ❑ A systems analyst plans and designs new systems, following the systems life cycle ❑ Requires a Bachelor’s degree in Computer Science or Information Systems and technical experience ❑ Can expect to earn an annual salary of RM 48,306 to RM 72,600 11-53 The Challenge of Keeping Pace ◦ To stay competitive with today’s fast business pace, new technologies must be incorporated ◦ Increased use of RAD and prototyping ◦ Increased use of outside consulting 11-54 a) What is a system? What are the six phases of the systems life cycle? Why do corporations undergo this process? b) What are the tools used in the analysis phase? What is top-down analysis? How is it used? c) What is system maintenance? When does it occur? d) Explain prototyping and RAD. When might they be used by corporations? 11-55