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7.

0 INFORMATION SYSTEM

7.1 Types Of Information System


7.2 System Development Life Cycle

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7.1 Types Of Information System

Learning Outcome

At the end of this topic, student should be able to:


1. Define Information System
2. Identify several types of Information System
3. Describe the purposes of each Information System

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Definition Information System

● Is a collection of hardware, software, data,


people, and procedures that work together to
produce quality information.
(Shelly & Vermaat, 2012)

● Is a set of interrelated elements or components that collect


(input), manipulate (process), store disseminate (output) data
and information and provide corrective reaction (feedback
mechanism) to meet an objective.
(Stair & Reynolds, 2012)

● An information system supports daily, short-term and long


range activities of users.

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The Component Of Information System

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Component of Information System

1. Hardware
Hardware refers to the computer system that the database
system runs on. Example mainframe, minicomputer,
microcomputer, network, input/output peripherals etc.

2. Software
Software refers to a collection of programs used by a
computer in a database system. This includes the DBMS,
the operating system of a computer and network,
application and utility program.

3. Data
Data comprises of all facts stored in a database. This
includes operational data and metadata.

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Component of Information System

4. Procedures
Procedures refer to the instruction and rules that govern the
design and use of a database system.

5. People
People encompasses all users of a database system. This
includes the business analysts, database designer, data
administrators, DBA, application programmers and end-users.

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TOP LEVEL
MANAGEMENT

MIDDLE LEVEL
MANAGEMENT

LOW LEVEL
MANAGEMENT

USERS 7
Types of Information System

ESS TOP
LEVEL
(Executive Support System) MANAGEMENT

DSS
(Executive Support System) MIDDLE
LEVEL
MANAGEMENT
MIS
(Management Information System)

TPS LOW
(Transaction Processing System) LEVEL
MANAGEMENT

Graphical representation of information system in a triangle


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Types of Information System

1. Transaction Processing System (TPS)


2. Management Information System (MIS)
3. Decision Support System (DSS)
4. Executive Support System (ESS)
5. Office Automation System (OAS)

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Transaction Processing System (TPS)

➢ Is an information System that use by Operational level


management (OLM) to captures and processes data
day-to-day business transaction / activity.

➢ Used by Low Level Management such as Line supervisor.

➢ An operational system that record and process data


resulting from business transactions.

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Transaction Processing System (TPS)

➢ Examples of transactions are deposits, payments,


orders and reservations

➢Two basic way of process transaction:


1. Batch processing
2. Online transaction Processing
(OLTP) / Real -Time Processing

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Transaction Processing System (TPS)

1. Batch processing
○ Transactions data are accumulated over a period of time
and processed periodically.

○ The computer collect data over time and processes all


transactions later, as a group.

○ Example : Paying by check, Credit card transaction,


Electric bill, Salaries, credit card monthly statement.

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Transaction Processing System (TPS)

2. Online Transaction Processing (OLP)


/ Real-Time Processing
•The computer processes each transaction as it is entered.
•Data are processed immediately after a transaction occurs
•Example : reservation system, ATM transaction, Airline
ticket booking.

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Transaction Processing System (TPS)
Batch processing vs OLTP

Figure 14-14
With batch processing,
all airline reservations
are processed together
at the end of the day.
With OLTP,
reservations are
processed immediately.
(Shelly & Vermaat, 2012)
- page 733

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Purpose of TPS

● Capture and process data from day-to-day


business activities.

● The intent of these system is to


● process transactions faster
● reduce clerical costs
● improve customer service

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Management Information System (MIS)

▪ Is an information system that used by middle


level management that generates accurate,
timely and organized information
▪ Produce meaningful information for manager or
produce report

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Purpose of MIS

● Produce meaningful information for


managers
● Three basic types of reports
1. Detailed
2. Summary
3. Exception
● Assist lower management in problem solving
and making decision.

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Management Information System (MIS)

Detailed report: A list of all transaction

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Management Information System (MIS)

Summary report :
Data usually with totals, tables or graph, so that
manager can review it quickly and easily

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Management Information System (MIS)

Exception report :
Data outside of a normal condition / unusual condition

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Decision Support System (DSS)

● Is an information system that used by middle level


management (MLM) to help analyze information and
make decisions.
● DSS give direct computer support to managers during the
decision-making process.

● Example :
A production manager may use a DSS to decide
how much product to manufacture based on the
expected sales associated with a future promotion
and the location.

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Purpose of DSS

● Help users retrieve data and analyze the


result
● Allow managers to create a model of the
factors affecting a decision
● Reports are in the form of charts or diagram

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Executive Support System (ESS)

● Is an information system that used by top


level management to support the strategic
information needs of executive
management to set goal and long term
planning.
● A special type of Decision Support System
(DSS) that serve the strategic level of the
organisation.

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Purpose of ESS

● Supports the strategic information needs of


executive management.
● Gathers and presents information to Senior
management in the form of graphics and
reports used to assist in decision making.

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Executive Support System (ESS)

ESS
Manager use an ESS to analyze
a company's financial trends

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Office Automation System (OAS)

● Is an information system that enables employees


to perform tasks using computers and other
electronic devices.
● The system help employee to collect, process,
store and transmit electronic message, document
and other form of communication among
individual, work group and organizations.
● Example :
A school posted its class schedule on the internet.
When the school admin updates the schedule,
students receive an email notification.

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Purpose of OAS

● Increase employee productivity


● Assists with communication among employee

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Summary

Types of IS Characteristics
Transaction ● Provides raw data used for processing
Processing System in ESS, MIS and DSS
(TPS) ● The lowest level of information system
● Used by businesses to record “
transaction” information
● Transactions include things like
booking airline tickets, purchasing
goods or services.

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Summary

Types of IS Characteristics
Management ● A step up from TPS
Information ● This type of systems is used for routine
System (MIS) reporting
● Reports are used to monitor and control
normal business activities
● Provides input to be used in the managerial
decision process.
● Generate report in various time – basis
(weekly, monthly, and/or yearly)
● Data is provided from internal company
sources only.

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Summary

Types of IS Characteristics
Decision ● Provides information to managers who must
Support make judgments about particular situations.
System (DSS) Supports decision-makers in situations that
● are not well structured

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Summary

Types of IS Characteristics
Executive ● Used for strategic business planning
Support System ● Relatively long time-frame considered
(ESS) ● Unstructured and open-ended (many
variables can be considered)
● For accurate results ESS require
information from inside and outside the
business.
● Its major activity is information
scanning and evaluation, it deals
mainly with the intelligence phase of
decision-making.

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IS - MAP

OAS :Clerical workers

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EXERCISE

1. Explain the components of information system


2. What is TPS and who is the users of TPS?
3. What is the main difference between TPS and MIS?
4. Differentiate MIS from DSS.
5. Who are the users of OAS?
6. What is ESS and who are the main users of ESS?

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References
● Shelly, G. B., & Vermaat, M. E. (2012). Discovering
Computer 2012 Complete. Boston: Course Technology
Cengage Learning
● Haag, S., Cummings, M., & Dawkins, J. (2000).
Management Information Systems for the Information
Age (2nd Edition). Boston: McGraw Hill.
● Rainer R.K. (2012). Introduction to Information
Technology (4th Edition). New Jersey: John Wiley &
Sons Inc.

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7.2 System Development Life Cycle (SDLC)

Learning Outcome
At the end of this topic, students should be able to:

1. Identify the steps of system development life


cycle

2. Describe each step of system development life


cycle

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7.2 System Development Life Cycle (SDLC)

What is SDLC ?
● is a set of activities used to build an information
system

● each phase of system development consist of a


series of activities and the phase form a loop

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7.2 System Development Life Cycle (SDLC)
STEPS OF SDLC : Activities contain five (5) phases
1
Planning

5 2
Maintenance Analysis

4 3
Implementation Design

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SDLC (Major Activities)
1st phase: Planning ▪ Review project requests
▪ Prioritize project requests
▪ Allocate resources
▪ Identify project development team
2nd phase: Analysis ▪ Conduct preliminary investigation
▪ Perform detailed analysis activities:
- Study current system
- Determine user requirements
- Recommend solution
3rd phase: Design ▪ Acquire hardware and software, if necessary
▪ Develop details of the new or modified system.

4th phase: ▪ Develop programs,


Implementation ▪ Install and test new system
▪ Train users
▪ Convert to new system
5th phase: Maintenance . Perform maintenance activities
. Monitor system performance
. Evaluate system security
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7.2 System Development Life Cycle (SDLC)

1st phase: Planning


• Begins when the steering committee received a project
request
• Committee members usually consists of five to nine members

• example: mix of vice presidents, managers, non-management


users, and IT personnel

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7.2 System Development Life Cycle (SDLC)

1st phase: Planning


● Purpose: The Steering committee evaluates :
○ if it has enough funds and budget
○ the remaining project request based on their value
to the organization
○ approves some projects and rejects others

● During the meeting, committee member decides the


project request identifies an improvement to the
system

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7.2 System Development Life Cycle (SDLC)

2nd phase: Analysis


1. Conduct preliminary investigation
• Sometimes called the feasibility study
• Defines the problem - The main purpose is to determine
the exact nature of the problem or improvement &
decide whether it is worth pursuing.
• Interview the user who submitted the project request
and others users.
• Upon completion of the preliminary investigation, the
systems analyst writes the feasibility report to present
the team’s findings to the steering committee.

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7.2 System Development Life Cycle (SDLC)

Feasibility study:

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7.2 System Development Life Cycle (SDLC)

2nd phase: Analysis


2. Perform detailed analysis activities:
• Detailed analysis sometimes is called logical design
because the systems analysts develop the proposed
solution without regard to any specific hardware or software.
• Involves three major activities:

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7.2 System Development Life Cycle (SDLC)

3rd phase: Design

1. Acquire hardware and software


• The activity consists of four major tasks:

1. Identify technical specifications


2. Request vendor proposals
3. Test and evaluate vendor proposals
4. Make a decision

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7.2 System Development Life Cycle (SDLC)

3rd phase: Design

2. Develop details of the new or modified system


• After the systems analyst identifies the data and process
requirements, the next step is to develop detailed design
specifications for the components in the proposed solution.
• A detailed design sometimes is called a physical design
because it specifies hardware & software — the physical
components required — for automated procedures.
• The activities include developing designs for the databases,
inputs, outputs & programs.

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7.2 System Development Life Cycle (SDLC)

4th phase: Implementation


• The purpose of this phase is to Construct or build
the new or modified system and then deliver it to
the user
• Four (4) major activities
1. Develop programs
2. Install and test new system
3. Train users
4. Convert to new system

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7.2 System Development Life Cycle (SDLC)
4th phase: Implementation
1. Develop programs
○ If the organization purchases packaged software (no
modifications required) the development team may skip
this activity.
○ For custom software or packaged software, however,
programs are developed or modified either by an outside
firm or in-house.
○ Programmers write or modify programs from the program
specification package created during the analysis phase.
○ These program development follow an organized set of
activities known as the program development life cycle.

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7.2 System Development Life Cycle (SDLC)

4th phase: Implementation


2. Install and test new system
• If the organization acquires new hardware or software,
someone must install and test it
• Tests performed during this step include:
1. unit tests - verifies that each individual program or object
works by itself.
2. systems tests - verifies that all programs in an application
work together properly
3. integration tests - verifies that an application works with
other applications.
4. acceptance tests - performed by end- users & checks the
new system to ensure that it works with actual data.
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7.2 System Development Life Cycle (SDLC)

4th phase: Implementation

3. Train user

• Training involves showing users exactly how they will use


the new hardware and software in the system.
• Some training takes place as one-on-one sessions or
classroom style lectures
• Other organizations use Web-based training, which is a
self-directed, self-paced online instruction technique.

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7.2 System Development Life Cycle (SDLC)

4th phase: Implementation


4. Convert to new system

• The final implementation activity is to change from


the old system to the new system.
• This change can take place using one or more of
the following conversion strategies:
1. direct
2. parallel
3. phased
4. pilot

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7.2 System Development Life Cycle (SDLC)
4th phase: Implementation

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7.2 System Development Life Cycle (SDLC)
4th phase: Implementation
DIRECT CONVERSION
The old system is
replaced by the new
system all at once

PARALLEL
CONVERSION
The old system and new
system are both operated
until it is determined that
the new system is working
properly

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7.2 System Development Life Cycle (SDLC)
PHASED
CONVERSION
The system is
implemented by module
(each module can be
implemented using
either direct or parallel
conversion

PILOT CONVERSION
The new system is used
at only one location
within the organization.
After it is determined that
the new system is
working

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7.2 System Development Life Cycle (SDLC)

5th phase: Maintenance


• Provide ongoing assistance for an information
system after the system is implemented
• Three (3) major activities
1. Perform maintenance activities
2. Monitor system performance
3. Evaluate system security

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7.2 System Development Life Cycle (SDLC)

5th phase: Maintenance

1. Perform maintenance activities


• corrective maintenance
(process of identify and correcting errors in an IS)

• adaptive maintenance
(process of including new features/capabilities in an IS)

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7.2 System Development Life Cycle (SDLC)

5th phase: Maintenance


2. Monitor system performance
• perfective maintenance,
•determine if the system is inefficient/unstable
at any point,
•if this occurs, investigation must be done

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7.2 System Development Life Cycle (SDLC)

5th phase: Maintenance


3. Evaluate system security
• All elements of an information system must be secure
from threats both inside and outside.
• Users should be allowed access only to the data and
information for which they are authorized (Maintain
confidentiality)
• Data should be secure so that intruders cannot alter,
damage, or steal data. (Ensure integrity and reliability)
• Networks need safeguards to prevent them from being
compromised. (Limited access to information)

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7.2 System Development Life Cycle (SDLC)

REFERENCES

Shelly, G.B., & Vermaat, M. (2012).


Discovering computers: Your interactive guideto the
digital world.

Boston, MA: Course Technology/ Cengage Learning.

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Answer ALL questions:

1.Differentiate between database and information system.

2.List ALL database and information system components.

3.List ALL types of information system (IS), it’s purpose


and user(s).

4.List and explain ALL phases of system development life


cycle (SDLC).

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ANSWERS:

1.Differentiate between database and information


system:
Database Information System

Is a collection of data organized in a Is a collection of hardware, software,


manner that allows access, retrieval data, people, and procedures that
and use of that data. work together to produce quality
information.

2. List ALL database and information system


components.
●Database: People, Hardware, Software, Data, Procedure.
●Information System: People, Hardware, Software, Data, Procedure.

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Types of IS Purpose User

OAS Enable employee to perform tasks using computers and electronic devices. ALL / clerical worker
Purpose: 1.Increase employee productivity
2.Assist communication among employee.15

TPS is an IS that collects, store, modifies and retrieves transaction of an supervisor, line
organization. e.g. ATM manager, (clerk,
Purpose: 1.Process transactions faster cashier, customer,
2.Reduce clerical costs
student CANNOT
3.Improve customer service.
state as a USER )

MIS is an IS that generates accurate, timely and organized information. Middle manager,
Purpose: 1.Produce meaningful information for managers doctor, supervisor
(detailed, summary, exceptions report)
2.Assist lower management in problem solving and
making decision.

DSS is an IS that helps users analyze information and make decisions. Assistant president,
Purpose: Chief Executive
1.Analyze information recognize problems and make decision Officer (CEO)
2.Assist in solving semi structured problems
3.Contribute to decision effectiveness.

ESS Types of DSS supports strategies information needs of executive Vice president,
management CEO, board of
Purpose: 1.Gather and presents info to senior management director, President.
(graphic & report) to assist decision making.
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Phases of SDLC Descriptions

PLANNING •Review and approve the project request


•Prioritize project request
•Allocate resources
•Develop a team

ANALYSIS •Preliminary investigation/feasibility study


•Detailed analysis/logical design
•Study current system
•Determine project request
•Recommend solution

DESIGN •Acquire hardware and software


•Physical design – prototype, CASE tools

IMPLEMENTATION •Develop program


•Install and testing
•Train user
•Convert to new system

MAINTENANCE •Perform maintenance(corrective and adaptive)


•Monitor system performance(perfective maintenance)
•Evaluate System security
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