Transcript Understanding Computers, 11/e, Chapter 12

11th Edition
TODAY AND TOMORROW
12

CHAPTER
Information Systems and
Systems Development
Learning Objectives
Chapter 12
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Understand what information systems are.
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Explain who uses information systems in a typical
organization.
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Identify several types of information systems
commonly found in organizations and describe their
purpose.
Understanding Computers, 11th Edition
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Learning Objectives, Cont’d
Chapter 12

Explain the people involved with system
development.

Identify and describe the different steps of the system
development life cycle (SDLC).

Discuss several approaches used to develop
systems.
Understanding Computers, 11th Edition
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Overview
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This chapter covers:
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Chapter 12
What are and who uses information systems
Common types of information systems
Use of the information systems department and
outsourcing
The system development life cycle
The major approaches to system development
Understanding Computers, 11th Edition
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What Is an Information System?
Chapter 12
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System: collection of elements and procedures that
interact to accomplish a goal
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Information system: system used to generate
information to support users in an organization
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System development: process of designing and
implementing a new or modified system
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Who Uses Information Systems?
Chapter 12
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Executive managers: strategic decisions
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Middle managers: tactical decisions
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Operational managers: operational decisions geared
toward meeting short-term objectives
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Nonmanagement workers: on-the-job decisions
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Types of Information Systems
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Chapter 12
While hundreds of specific types of information
systems exist, many fall into one of eight
categories
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Office Systems
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Office system: A system in which office automation
hardware, software, and other resources are used to
facilitate communications and enhance productivity
 Office automation: computer-based officeoriented technologies, such as word processing,
e-mail, workgroup computing, and the like
 Document processing systems (create, distribute,
store, and manage documents
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Chapter 12
Formats need to be considered for archived
documents so they can be read at a later date
Communications systems (e-mail, messaging,
online conference, workgroup computing, etc.)
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Transaction Processing Systems
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Chapter 12
Transaction processing system: System
that processes and records data created by
an organization’s business transactions
 Order entry systems
 E-commerce systems
 Point-of-sale (POS) systems
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Check processing systems
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Payroll systems
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Accounting systems
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Management Information Systems
(MISs)
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Chapter 12
Management information system (MIS): system
that provides decision makers with preselected
information
 Usually provides information in the form of
computer-generated reports
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Much of the time, this information is generated
from data obtained from transaction processing
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Most frequently used to make moderately
structured, middle-management decisions
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Decision Support Systems (DSSs)
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Chapter 12
Decision support system (DSS): provides people
with the tools and capabilities to organize and
analyze their decision making information
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Provides information on demand and incorporate
data from both internal and external sources
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Tailored to help with specific types of decisions;
typically used by middle and upper management
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Special type of DSS targeted to upper
management = executive information system (EIS)
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Chapter 12
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Geographic Information Systems
(GISs)
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Geographic information system (GIS): system that
combines geographical information with other types
of data to provide a better understanding of
relationships among the data
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Chapter 12
Commonly used
to make decisions
about locations
(e.g. new facility
locations, disaster
risk, geographical
crime patterns)
Understanding Computers, 11th Edition
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Enterprise-Wide and Inter-Enterprise
Systems
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Enterprise-wide system: integrates activities
throughout an entire enterprise
Inter-enterprise system: links multiple enterprises,
such as a business and its customers, suppliers, and
partners
Types of enterprise-wide and inter-enterprise
systems
 Electronic data interchange (EDI): transfers data
between different companies using the Internet or
another network
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Chapter 12
Often used to automate reordering materials and
products
Understanding Computers, 11th Edition
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Enterprise-Wide and Inter-Enterprise
Systems, Cont’d
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Types of enterprise-wide and inter-enterprise
systems, cont’d
 Enterprise resource planning (ERP): large
integrated system that ties together all of a
business’s activities
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Chapter 12
Enterprise application integration (EAI):
exchanging information from an ERP or other
internal system among different applications and
organizations
Understanding Computers, 11th Edition
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Enterprise-Wide and Inter-Enterprise
Systems, Cont’d
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Types of enterprise-wide and inter-enterprise
systems, cont’d
 Customer
relationship
management (CRM):
a system designed to
build and manage
good relationships with
customers
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Chapter 12
Often implemented via
the Web today (eCRM)
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Enterprise-Wide and Inter-Enterprise
Systems, Cont’d
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Chapter 12
Types of enterprise-wide and inter-enterprise systems,
cont’d
 Supply chain management (SCM): the oversight
of materials, information, and finances as they
move from the original supplier to the consumer
 Value chain management systems (maximize
the flow of products, goods, services, and
information through a value-added network of
suppliers
 Just-in-time (JIT) systems (resources are limited
to the right amount at the right time to fill orders)
 Inventory management systems (track and
manage inventory)
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Chapter 12
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Enterprise-Wide and Inter-Enterprise
Systems, Cont’d

Chapter 12
Types of enterprise-wide and inter-enterprise
systems, cont’d
 Product lifecycle management (PLM): organizes
and correlates all information about a product to
help companies improve products and better track
costs and profits
 Price optimization systems: determine the optimal
price to maximize product profitability
 Requires complex calculations so more
possible today than in the past
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Enterprise-Wide and Inter-Enterprise
Systems, Cont’d
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Chapter 12
Types of enterprise-wide and inter-enterprise systems,
cont’d
 Price optimization systems, cont’d
 Markdown optimization software: times
markdown of products that are still unsold at the
end of the product life cycle
 Electronic shelf labels (ESLs): used to always
display the price in the product database
 Enterprise architecture: a comprehensive
framework used to describe and manage an
organization’s business functions and systems
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Design and Manufacturing Systems
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Chapter 12
Design and manufacturing systems (use computers
to automate the design or manufacturing process
 Computeraided design
(CAD)
 Computeraided
manufacturing
(CAM)
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Artificial Intelligence Systems
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Chapter 12
Artificial intelligence (AI) system: a system in
which a computer performs in ways that would be
considered intelligent if observed in humans
 Turing Test
 Initial advances
in AI made
through
chess-playing
programs
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Artificial Intelligence Systems, Cont’d
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Chapter 12
Intelligent agents: programs that
perform specific tasks to help to make a
user’s work environment more efficient or
entertaining and that typically modifies its
behavior based on the user’s actions
 Application assistants
 Search agents
 Shopping bots
 Entertainment bots
 Chatterbots
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Artificial Intelligence Systems, Cont’d
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Chapter 12
Expert system: provides the type of advice that
would be expected from a human expert
 Knowledge base: database containing facts
provided by human experts and rules the system
should use to make decisions based on those
facts
 Inference engine: program that applies the rules to
the data stored in the knowledge base, in order to
reach decisions
 Is only as good as the knowledge base and
inference engine; also needs honest, correct
information from the user in order to work correctly
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Chapter 12
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Artificial Intelligence Systems, Cont’d
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Chapter 12
Neural network: expert systems in which the human
brain’s pattern-recognition process is emulated by the
computer system
 Used in :
 Handwriting, speech, and image recognition
 Geographical mapping
 Medical imaging
 Crime analysis
 Biometric identification
 Vision systems (quality checks in
manufacturing, recognizing postage stamps,
etc.)
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Artificial Intelligence Systems, Cont’d
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Chapter 12
Robotics: the study of robot technology
Robot: A device, controlled by a human operator or a
computer, that can move and react to sensory input
 Used in situations:
 That are dangerous or impossible for people to
perform
 Where immense precision is needed
 To perform monotonous tasks
 To assist individuals
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Artificial Intelligence Systems, Cont’d
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Chapter 12
Types of robots
 Military robots (unmanned planes and vehicles,
devices to initially investigate locations,
exoskeleton suits, etc.)
 Business robots (monitoring facilities,
implementing videoconferencing, etc.)
 Personal robots (entertainment, perform
communications tasks, perform household tasks,
etc.)
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Chapter 12
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Chapter 12
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Responsibility for System
Development
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Chapter 12
Information systems (IS) department: includes most,
if not all, of the computer and networking personnel
for an organization including:
 Data processing personnel
 Systems analyst: studies systems in order to
determine what works needs to be done and how
this work may best be achieved
 Business analyst
 System analysis and design group
 Programmers
 Operations personnel
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Responsibility for System
Development
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Chapter 12
Outsourcing companies: outside vendors used to
process specific business tasks
 Use growing, primarily due to cost
 Offshore offsourcing = outsourced to another
country
 Captive offshoring = companies setting up their
own facilities in another country
 Need to consider appropriateness of outsourcing,
as well as security and privacy
System development team is typically led by systems
analyst; team should include users
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The System Development Life Cycle
(SDLC)
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Chapter 12
System development life cycle (SDLC): process
consisting of size phases of system development
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Preliminary Investigation
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Chapter 12
Preliminary investigation: the phase of the system
development life cycle in which a brief feasibility
study is performed to assess whether or not a fullscale project should be undertaken
 Purpose is to define and evaluate the problem and
see if it is worthy of further study
Documentation: Feasibility report (includes
recommendation regarding whether or not the project
should move on to the next stage in the SDLC)
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System Analysis
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Chapter 12
System analysis: the phase of the system
development life cycle in which a problem area is
thoroughly examined to determine what should be done
 Data collection: gathering information about the
system (organizational chart, observation,
interviewing users, etc.)
 Data analysis: analyzing information to determine
requirements for the new systems
 Tools include data flow diagrams, decision tables,
checklists, etc.
Documentation: any instruments used for data
gathering; any tools developed
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Chapter 12
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System Design
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Chapter 12
System design: the phase of the system
development life cycle in which a model of the new
system and how it will work is formally established
 Helpful to develop a model of the new system
 System flowcharts
 Input/output designs
 Data dictionary
Most companies will also perform a cost/benefit
analysis (should consider both tangible and intangible
benefits)
Documentation: Specifications of new system
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Chapter 12
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System Acquisition
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Chapter 12
System acquisition: the phase of the system
development life cycle in which hardware, software, and
other system components are acquired
Need to determine if needed products will be purchased or
developed in house
 Software to be developed moves into the program
development process (covered in Chapter 13)
 Products to be purchased need to be identified and a
vendor selected
 Can use RFP and/or RFQ
 Bids need to be evaluated; vendor rating systems and
benchmark tests can be helpful
Documentation: RFPs, RFQs, any vendor evaluation
materials, etc.
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System Implementation
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System implementation: the phase of the system
development life cycle that encompasses activities
related to making the system operational
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Chapter 12
Direct conversion (old system deactivated; new system
installed)
Parallel conversion (both old and new operated for a
period of time)
Phased conversion (new system implemented by
module)
Pilot conversion (new system installed at a pilot location
initially)
Documentation: Implementation schedule, test data,
test results, etc.
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Chapter 12
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System Maintenance
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Chapter 12
System maintenance: the phase of the system
development life cycle in which minor adjustments are
made to the finished system to keep it operational until
the end of the system’s life or until the time that the
system needs to be redesigned
 One of the first activities is the post-implementation
review (identifies any glitches in the new system that
need to be fixed)
 An ongoing-process
 When a major change is needed, the project goes
through the SDLC again
Documentation: Completed project folder
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Approaches to System Development
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Chapter 12
Traditional system development: SDLC phases are
carried out in the preset order
 Used primarily when system requirements are
easy to determine, when the system is very
familiar, or when management requests it
 Time-consuming
Prototyping: a small model, or prototype, of the
system is built before the full-scale development
effort is undertaken
 Prototype can be revised as needed before full
system is developed
End-user development: user is primarily responsible
for the development of the system
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Summary
Chapter 12

What Is an Information System?
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Who Uses Information Systems?
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Types of Information Systems
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Responsibility for System Development
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The System Development Life Cycle (SDLC)
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Approaches to System Development
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