Company Accounts Lecturer Notes

							        Introduction to
System Analysis and Development
  The Value of Analysis and Design
  Components of IS
  Ethical Issues

  Dr Manolya Kavakli
  Senior Lecturer
  Department of Computer Science
  Macquarie University

  Read: Ch 1 [Shelly]
         Chapter Objectives
• Discuss the impact of information
  technology on business strategy and
  success
• Define an information system and describe
  its components
• Identify various types of information
  systems and explain who uses them
          Chapter Objectives
• Explain modeling, prototyping, and CASE tools
• Distinguish between structured analysis and
  object-oriented analysis
• Compare the systems development life cycle
  waterfall model to adaptive models
• Discuss the role of the information technology
  department and the systems analysts who work
  there
• Discuss Ethical Issues
                   Introduction
• Why do companies use
  information?
• Companies use information as
  a weapon in the battle to
  – increase productivity,
  – deliver quality products and
    services,
  – maintain customer loyalty, and
  – make sound decisions.
• Information Technology can
  mean the difference between
  success and failure.
    Definition of Information
• What is IT?
              Technology
• Information Technology
   – Combination of hardware and software products and
     services that companies use.
• What do companies do with the information?
   –   manage,
   –   access,
   –   communicate, and
   –   share information.
   –   A vital asset that must be used
       • effectively,
       • updated constantly, and
       • safeguarded carefully.
                   The Impact of IT
• Who uses Internet most in the world?
• a)Asia b)America c)Australia d)Europe e)Africa
• Internet Usage (% of population)
   –   Asia: 9.9% and Middle East: 9.6%
   –   North America: 68.6%
   –   Australia: 52.6%
   –   Europe: 36.1%
   –   Africa: 2.6%
• The Future of IT
   – IT sector accounts for almost 30 percent of America’s
     economic growth, and the wage gaps between IT workers
     and all other workers will continue to widen
   – Global online population skyrocketed between 2000 and
     2007
                   The Impact of IT
• What is The Role of Systems Analysis and Design?
    – Systems Analysis and Design:
       • A Step-by-step process for developing high-quality information
         systems.
•   What does an Information System combine?
•   IT,
•   People, and
•   Data to support business requirements.

• Who do we need to build an Information System?
• Systems Analyst:
    – Plan, develop, and maintain information systems.
                        The Impact of IT
• What type of methods are used to develop
  Information Systems?
• A company develops its own ISs using
    –   In-house applications
    –   Software packages from outside vendors
    –   Internet-based application services
    –   Outsourcing
    –   Custom solutions from IT consultants
    –   Enterprise-wide software strategies

•   Launching a new IS is risky.
•   How versus What
    – Outline What the system is supposed to do
    – Before How it will be developed.
         Introduction to
Information System Components
•   A system:
•   a set of related components that
    produces specific results
•   A mission-critical system:
•   one that is vital to a company’s
    operations
•   Data:
•   consists of basic facts that are the
    system’s raw material
•   Information:
•   Data that has been transformed into
    output that is valuable to users.
 Information System Components
• Hardware
   – Consists of everything in the physical layer of IS
      • E.g., servers, workstations, networks, telecomm. equipment, scanners.
• Software
   – Refers to the programs that control the hardware and produce the
     desired information or results.
   Types of Software:
   – System software manages hardware components
      • Operating system, security software, device drivers, etc.
   – Application software supports day to day business functions
      • order processing systems, payroll systems, company communications
        networks
      • spreadsheets, word processors, database systems
 Types of Application software
– Enterprise applications
    • (company wide applications such as order processing systems,
      payroll systems, company communications networks)
    • (on a smaller scale, spreadsheets, word processors, database
      systems)
– Horizontal systems
    • (inventory or payroll application) that can be adapted for use in
      many different types of companies)
– Vertical systems
    • designed to meet the unique requirements of a specific business
– Legacy systems
    • new systems to interface with older systems
  Information System Components
• Data
  – Tables
  – Linking
Information System Components
• Processes
   – Define the tasks and business functions that users,
     managers, and IT staff members perform to achieve
     specific results
• People
   – Users, or end users, are the people who interact with
     an information system, both inside and outside the
     company
       Understanding The Business
• Business Process Modeling
   – represents a company’s operations and information
     needs and requires
   – Business Profile
     • Desribes a company’s overall functions, processes, products,
       services, etc.
   – Business Models
     • Graphical representation of business processes
         – Airline reservation, selling a ticket
     • To simplify operations we use
     • Business process reengineering
     (BPR)
   Understanding The Business

• Kinds of Companies
   – Product-oriented
   – Service-oriented
   – Internet-dependent
     • Dot-com (.com) companies such as Google, Yahoo,
       e-Bay
   – Brick-and-mortar companies such as K-Mart,
     Target, etc.
  Impact of the Internet
• E-Commerce or I-Commerce
   – Internet based commerce
   – Includes two main sectors:
• B2C (Business-to-Consumer)
   – Consumers go online and purchase products and services
     • eBay.com using a traditional auction concept
• B2B (Business-to-Business)
   – Important to reduce costs
   – Allows smaller suppliers to contact large customers
     • Started with EDI –Electronic Data Interchange (company to company data
       sharing arrangements)
     • Extensible markup language (XML) enabled company to company traffic
       using Web based communication.
     • Supplier relationship management (SRM) is a form of interaction to submit
       specifications for business transactions.
 How Business Uses Information
           Systems
• In past, IT managers divided systems into
  categories based on the user group the
  system served
   – Office systems
     • (for admin staff)
   – Operational systems
     • (for operational personnel)
   – Decision support systems
     • (for middle managers)
   – Executive information systems
     • (for top managers)
 How Business Uses Information
           Systems
• Today, it makes more sense to identify a
  system by its functions, rather than by
  users
   –   Enterprise computing systems
   –   Transaction processing systems
   –   Business support systems
   –   Knowledge management systems
   –   User productivity systems
How Business Uses Information
          Systems
         • Enterprise computing systems
            – Support company-wide operations
              and data management requirements
              • K-Mart’s inventory control system
              • Singapore Airlines’ reservation system
         • Transaction processing
           systems
            – Efficient because they process a set
              of transaction-related commands as a
              group rather than individually
              • Customer order processing
              • Warranty claim processing
How Business Uses Information
          Systems
• Business support systems
   – Provide job-related information to
     users at all levels of a company
     • Management information systems
       (MIS)
     • Radio frequency identification (RFID)
       to track physical objects using tags
How Business Uses Information
          Systems
• Knowledge management systems
   – Called Expert Systems
   – Simulate human reasoning by combining a knowledge
     base and inference rules
   – Many use fuzzy logic
• User productivity systems
   – Technology that improves productivity
     • Email, voice mail, fax, video conferencing, internet.
     • Groupware enables users to share data, collaborate, and work
       in teams.
How Business Uses Information
       Systems today
• Information systems integration
   – Most large companies require systems that combine
     transaction processing, business support, knowledge
     management, and user productivity features.
   – Warranty claim
     • into a transaction processing system,
     • updates a knowledge management system to track product
       problems, and
     • a quality control system with decision support capabilities.
        IS Users and Their Needs
• Top managers
  – Strategic plans
• Middle Managers and
  Knowledge Workers
  – Direction, resources,
    performance feedback
• Supervisors and Team
  Leaders
  – Operational and day-to
    day functions
• Operational
  Employees
  – Use TP systems and
    perform jobs
Systems Development Tools and
• Modeling Techniques
  – Produces a graphical representation of a concept or
    process that system developers can analyze, test, and
    modify.
  – Business model / Requirements model
    • Describes the information that a system must provide
  – Data model
    • Describes data structures and design
  – Object model
    • Describes objects, which combine data and processes
  – Network model
    • Describes the design and protocols of telecommunication links
  – Process model
    • Describes the logic that programmers use to write code modules
Systems Development Tools and
         Techniques
• Prototyping tests system concepts
   – Prototype:
     • Early working version of an IS.
   – Advantage: Speeds up the development process
     significantly
   – Disadvantage: Important decisions might be made too
     early, before business or IT issues are thoroughly
     understood
   – Can be an extremely valuable tool.
Systems Development Tools and
         Techniques
• Computer-Aided Systems Engineering
  (CASE) Tools
   – Also called computer-aided software engineering
   – A technique that uses powerful software called CASE
     tools to help system analysts develop and maintain ISs.
   – Microsoft Project
   – Microsoft Visio
 Systems Development Methods
• Structured Analysis
   – Uses a series of phases called Systems development life
     cycle (SDLC)
   – To plan, analyze, design, implement and support an IS.
   – Predictive approach
   – Uses a set of process models to describe a system
     graphically
   – Process-centered technique
 Systems Development Methods
• Object-oriented Analysis
   – O-O analysis combines data & processes into objects
   – Object (E.g, student/instructor/customer/order) is a
     member of a class (E.g., person)
   – Objects possess properties (E.g., address/status)
   – Methods change an object’s properties
   – A message requests specific behavior or information
     from another object
   – Visual Basic, Java, C++
    Planning and Modeling a
  Systems Development Project
• O-O methods (interactive model) tend to be less
  sequential and more interactive compared to
  SDLC (waterfall model) which is more predictive.
  There are also adaptive/iterative approaches (using
  a spiral model).
• In addition to selecting a development method,
  system developers also must create a plan or
  model for the many tasks that will be required
• Typically, the development team will use project
  management tools to help achieve the end result
     Planning and Modeling a
   Systems Development Project
• Adaptive approach using a spiral model
   – A set of prototypes evolves into final product
    Planning and Modeling a
  Systems Development Project
• Structured analysis uses The SDLC
  (Waterfall Model)
   – The result of each phase is called a deliverable or end
     product which flows sequentially.
   – Disadvantage: the waterfall model does not emphasize
     interactivity among the phases
   – This criticism can be valid if the SDLC phases are
     followed too rigidly
   – However, adjacent phases usually interact
    Planning and Modeling a
  Systems Development Project
• The SDLC Waterfall Model
  – Usually includes five steps
     • Systems planning
     • Systems analysis
     • Systems design
     • Systems implementation
     • Systems operation,
     support, and security
    Planning and Modeling a
  Systems Development Project
• Systems planning
   – Systems request
   – Purpose of this phase is to perform a preliminary
     investigation whose key part is a feasibility study
• Systems Analysis
   – First step is requirements modeling
   – End product is the System requirements document
    Planning and Modeling a
  Systems Development Project
• Systems Design
  – Identify all outputs, inputs, and processes
  – End product is system design specification
• Systems Implementation
  – New system is constructed
  – Users, managers, IT staff trained to operate
    and support the system
  – System evaluation performed
    Planning and Modeling a
  Systems Development Project
• Systems Operation, Support, and Security
   – A well-designed system must be secure, reliable,
     maintainable, and scalable
   – After several years of operation, systems need
     extensive changes
   – SDLC ends with system replacement
    Planning and Modeling a
  Systems Development Project
• Adaptive Methods and Models
  – Attempt to develop a system incrementally, by
    building a series of prototypes and constantly
    adjusting them to user requirements
  – Extreme Programming (XP)
    • Interactive process between developers and users
  – Analysts should recognize that these
    approaches have advantages and
    disadvantages
    Planning and Modeling a
  Systems Development Project
• Joint Application Development and Rapid
  Application Development Methods and Models
   – Joint application development (JAD)
      • Team-based fact finding in one phase
   – Rapid application development (RAD)
      • Team-based approach on the entire process
• Other Development Methods and Models
   – Rational Unified Process (RUP®)
      • Iterative process for managing software development projects
   – Microsoft Solutions Framework (MSF)
      • Similar to the SDLC but documents the experience of its own
        software development teams
      • http://www.youtube.com/watch?v=vRioQNowpkI&feature=related
    Planning and Modeling a
  Systems Development Project
• The Importance of Project Management
   – Regardless of the development strategy, people, tasks,
     timetables, and expenses must be managed effectively
   – Complex projects can involve dozens of people,
     hundreds of tasks, and many thousands of dollars
Systems Development Guidelines
• Stick to a plan
• Involve the users throughout the development
  process
• Listening is very important
• Use project management tools to identify tasks
  and milestones
• Remain flexible
• Develop accurate cost and benefit information
      Information Technology
            Department
• The information technology (IT)
  department develops and maintains a
  company’s information systems
• The IT group provides technical support
      Information Technology
            Department
• Application Development
   – Team may include users, managers and IT Staff
     members
• Systems Support and Security
   – Deployment team
• User Support
   – Help desk or information center (IC)
      Information Technology
            Department
• Database Administration
   – Database design, management, security, backup, and
     user access
• Network Administration
   – Includes hardware and software maintenance, support,
     and security
• Web Support
   – Webmasters
      Information Technology
            Department
• Quality Assurance (QA)
   – Reviews and tests all applications and systems
     changes to verify specifications and software quality
     standards
   – Is a separate unit that reports directly to IT
     management
        The Systems Analyst
• investigates, analyzes, designs, develops,
  installs, evaluates, and maintains a
  company’s information systems
• On large projects, the analyst works as a
  member of an IT department team
• Smaller companies often use consultants to
  perform the work
  The Systems Analyst Position
• Responsibilities
   – Translate business requirements into practical IT
     projects to meet needs
• Required Skills and Background
   – Solid communication skills and analytic ability

   – http://www.youtube.com/watch?v=sCFtBCbMOgY&f
     eature=fvw
  The Systems Analyst Position
• Certification
   – Cisco, Microsoft, ITIL
• Career Opportunities
   –   Job titles
   –   Company organization
   –   Company size
   –   Corporate culture
   –   Salary, location, and future growth
                            Ethics
• Ethical behaviour could be viewed as
   – decent, fair, good, honest or moral behaviour
• Ethical standards:
   – framed by the society in which you choose to work
• Professional bodies
   – usually have a code of ethics and
   – will expel members who fail to uphold it.
• The pressures on many businesses can result in legal but
  not ethical behaviour –
   – however the advantage gained is usually short-lived
• Good ethics usually means good business.
       The Ten Commandments of
            Computer Ethics
1. Thou shalt not use a computer to harm other people.
2. Thou shalt not interfere with other people’s computer
   work.
3. Thou shalt not snoop around in other people’s computer
   files.
4. Thou shalt not use a computer to steal.
5. Thou shalt not use a computer to bear false witness.
6. Thou shalt not copy or use proprietary software for
   which you have not paid.
       The Ten Commandments of
            Computer Ethics
7.Thou shalt not use other people’s computer resources
   without authorization or proper compensation.
8. Thou shalt not appropriate other people’s intellectual
   output.
9. Thou shalt think about the social consequences of the
   program you are writing or the system you are
   designing.
10. Thou shalt always use a computer in ways that insure
   consideration and respect for your fellow human
     The British Computer Society
          Code Of Conduct
• The BCS Code of Conduct is used here as an
  example:
• Members shall carry out work with due care and
  diligence in accordance with the requirements of
  the employer or client
• and shall, if their professional judgment is
  overruled, indicate the likely consequences.
• Members shall endeavour to complete work
  undertaken on time and to budget and shall advise
  their employer or client as soon as practicable if
  any overrun is foreseen.
                  Code Of Conduct
• Members shall not offer or provide, or receive in return,
  inducement for the introduction of business from a client unless
  there is full prior disclosure of the facts to the client.
• Members shall not disclose or authorise, to be disclosed, or use
  for personal gain or to benefit a third party, confidential
  information acquired in the course of professional practice,
  except with prior written permission of the employer or client, or
  at the direction of a court of law.
• Members shall not purport to exercise independent judgment on
  behalf of a client on any product or service in which they
  knowingly have any interest, financial or otherwise.
               Ethical Behaviour?
• You have bought a CD for home use, your car has a tape deck.
  Is it ok to make a copy of the CD for use in the car?
• You are an IS manager, you think that one of your staff is about
  to leave and this will have an adverse effect on a major project.
  Is it ok to check over their desk when they are not there? What
  about their email and telephone logs?
• Under what circumstances would you recommend a hardware
  company with which you had a relationship with?
• Is it OK to use a company computer to play single user video
  games during the lunch break? Would your view be different if
  you were a manager?
             Week Summary
• IT is a combination of hardware, software, and
  telecommunications systems that support
  business
• The essential components of an information
  system are hardware, software, data, processes,
  and people
• Companies are production oriented, service
  oriented, or a combination of the two
• Organization structure usually includes levels
            Week Summary
• Systems analyst use modeling, prototyping, and
  CASE tools
• Various development methodologies exist
• Regardless of the development model, it is
  important to use project management tools
  necessary to manage people, tasks, timetables,
  and expenses
• An IT department develops, maintains and
  operates a company’s information systems
             Week Summary
• Systems analysts need a combination of technical
  and business knowledge, analytical ability, and
  communication

• Week 1 complete