The systems development life cycle (SDLC) is the process of understanding how an information system (IS) can support

business needs, designing the system, building it, and delivering it to users. If you have taken a programming class or have programmed on your own, this probably sounds pretty simple. Unfortunately, it is not. A 2004 survey by the Standish Group found that just 28% of IT projects succeed these days. Outright failuresIT projects cancelled before completionoccur in 18% of all IT projects. Unfortunately, many of the systems that arent abandoned are delivered to the users signicantly late, cost far more than planned, and have fewer features than originally planned. Most of us would like to think that these problems only occur to other people or other organizations, but they happen in most companies. See Figure 1-1 for a sampling of signicant IT project failures. Even Microsoft has a history of failures and overdue projects (e.g., Windows 1.0, Windows 95). 1 Although we would like to promote this book as a silver bullet that will keep you from experiencing failed IS projects, we must admit that a silver bullet guaranteeing IS development success does not exist. 2 Instead, this book will provide you with several fundamental concepts and many practical techniques that you can use to improve the probability of success. The key person in the SDLC is the systems analyst who analyzes the business situation, identies opportunities for improvements, and designs an information system to implement them. Being a systems analyst is one of the most interesting, exciting, and challenging jobs around. As a systems analyst, you will work with a variety of people and learn how they conduct business. Specically, you will work with a team of systems analysts, programmers, and others on a common mission. You will feel the satisfaction of seeing systems that you designed and developed

make a signicant business impact, while knowing that your unique skills helped make that happen. It is important to remember that the primary objective of the systems analyst is not to create a wonderful system. The primary goal is to create value for the organization, which for most companies means increasing prots (government agencies and not-for-prot organizations measure value differently). Many failed systems were abandoned because the analysts tried to build a wonderful system without clearly understanding how the system would support the organizations goals, current business processes, and other information systems to provide value. An investment in an information system is like any other investment, such as a new machine tool. The goal is not to acquire the tool, because the tool is simply a means to an end; the goal is to enable the organization to perform work better so it can earn greater prots or serve its constituents more effectively. This book will introduce you to the fundamental skills you need to be a systems analyst. This is a pragmatic book that discusses best practices in systemsdevelopment; it does not present a general survey of systems development that exposes you to everything about the topic. By denition, systems analysts do things and challenge the current way that organizations work. To get the most out of this book, you will need to actively apply the ideas and concepts in the examples and in the Your Turn exercises that are presented throughout to your own systems development project. This book will guide you through all the steps for delivering a successful information systems. Also, we will illustrate how one organization (which we call CD Selections) applies the steps in one project (developing a Webbased CD sales system). By the time you nish the book, you wont be an expert analyst, but you will be ready to start building systems for real. In this chapter, we rst introduce the basic SDLC that IS projects follow. This

life cycle is common to all projects, although the focus and approach to each phase of the life cycle may differ. In the next section, we discuss three fundamentally different types of methodologies (structured design, rapid application development, and agile development). Finally, we discuss one of the most challenging aspects of systems developmentthe depth and breadth of skills systems analysts must possess. Today, most organizations use project teams whose members bring unique but complementary skills. This chapter closes with a discussion of the key roles played by members of the systems development team. Source : http://media.wiley.com/product_data/excerpt/87/04700747/0470074787.pdf

INFORMATION SYSTEM
Information Systems (IS) is an academic/professional discipline bridging the business field and the welldefined computer science field that is evolving toward a new scientific area of study.[4][5][6][7] An information systems discipline therefore is supported by the theoretical foundations of information and computations such that learned scholars have unique opportunities to explore the academics of various business models as well as related algorithmic processes within a computer science discipline.[8][9][10] Typically, information systems or the more common legacy information systems include people, procedures, data, software, and hardware (by degree) that are used to gather and analyze digital information.[11][12] Specifically computer-based information systems are complementary networks of hardware/software that people and organizations use to collect, filter, process, create, & distribute data (computing).[13] Computer Information System(s) (CIS) is often a track within the computer science field studying computers and algorithmic processes, including their principles, their software & hardware designs, their applications, and their impact on society.[14][15][16] Overall, an IS discipline emphasizes functionality over design.[17] As illustrated by the Venn Diagram on the right, the history of information systems coincides with the history of computer science that began long before the modern discipline of computer science emerged in the twentieth century.[18] Regarding the circulation of information and ideas, numerous legacy information systems still exist today that are continuously updated to promote ethnographic approaches, to ensure data integrity, and to improve the social effectiveness & efficiency of the whole process.[19] In general, information systems are focused upon processing information within organizations, especially within business enterprises, and sharing the benefits with modern society.[20]

Information systems are implemented within an organization for the purpose of improving the effectiveness and efficiency of that organization. Capabilities of the information system and characteristics of the organization, its work systems, its people, and its development and implementation methodologies together determine the extent to which that purpose is achieved Types of information systems

A four level pyramid model of different types of Information Systems based on the different levels of hierarchy in an organization

The 'classic' view of Information systems found in the textbooks[30] of the 1980s was of a pyramid of systems that reflected the hierarchy of the organization, usuallyTransaction processing systems at the bottom of the pyramid, followed by Management information systems, Decision support systems and ending with Executive information systems at the top. Although the pyramid model remains useful, since it was first formulated a number of new technologies have been developed and new categories of information systems have emerged, some of which no longer fit easily into the original pyramid model. Some examples of such systems are: Data warehouses A data warehouse (DW) is a database used for reporting. The data is uploaded from the operational systems for reporting. The data may pass through an operational data store for additional operations before it is used in the DW for reporting. A data warehouse maintains its functions in three layers: staging, integration, and access. Staging is used to store raw data for use by developers (analysis and support). The integration layer is used to integrate data and to have a level of abstraction from users. The access layer is for getting data out for users.

Enterprise resource planning

Enterprise resource planning (ERP) integrates internal and external management

information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.[1 Enterprise systems Enterprise systems (ES) are large-scale, integrated application-software packages that use the

computational, data storage, and data transmission power of moderninformation technology to support business processes, information flows, reporting, and data analytics within and between complex organizations. Expert systems An expert system is software that uses a knowledge base of human expertise for problem

solving, or to clarify uncertainties where normally one or more human experts would need to be consulted. Expert systems are most common in a specific problem domain, and are a traditional application and/or subfield of artificial intelligence (AI). Geographic information system A geographic information system (GIS), geographical information system, or geospatial

information system is a system designed to capture, store, manipulate, analyze, manage and present all types of geographically referenced data.[1] In the simplest terms, GIS is the merging of cartography, statistical analysis and database technology. GIS may be used in archaeology, geography, cartography, remote sensing,land surveying, public utility management, natural resource management, precision agriculture, photogrammetry, urban planning, emergency management, GIS in Environmental Contamination, landscape architecture, navigation, aerial video and localized search engines. Global information system

There is a variety of definitions and understandings of a Global Information System (GIS, GLIS), such as A global information system (GLIS) is an information system which is developed and / or used in a global context.[1]

A global information system (GLIS) is any information system which attempts to deliver the totality of measurable data worldwide within a defined context. - Dr.Moira Gunn

Office Automation Office automation refers to the varied computer machinery and software used to digitally create,

collect, store, manipulate, and relay office information needed for accomplishing basic tasks .Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system.[1] Office automation helps in optimizing or automating existing office procedures

SOURCE: http://en.wikipedia.org/wiki/Information_systems
The 5 components that must come together in order to produce a Computer-Based Information system are: 1.Hardware:The term hardware refers to machinery.This category includes the computer itself, which is often referred to as the central processing unit (CPU), and all of its support equipments. Among the support equipments are input and output devices, storage devices and communications devices. 2.Software:The term software refers to computer programs and the manuals (if any) that support them. Computer programs are machine-readable instructions that direct the circuitry within the hardware parts of the CBIS to function in ways that produce useful information from data. Programs are generally stored on some input / output medium,often a disk or tape. 3.Data:Data are facts that are used by programs to produce useful information.Like programs,data are generally stored in machine-readable form on disk or tape until the computer needs them. 4.Procedures:Procedures are the policies that govern the operation of a computer system. "Procedures are to people what software is to hardware" is a common analogy that is used to illustrate the role of procedures in a CBIS. 5.People:Every CBIS needs people if it is to be useful. Often the most over-looked element of the CBIS are the people, probably the component that most influence the success or failure of information systems.

SOURCE: http://answers.yahoo.com/question/index?qid=20090708035610AA8sVGh

Information Systems for Business Functions

12.1 Supporting Business Functions in an Enterprise with Information The principal business functions in a business firm are: 1. Marketing and sales 2. Production 3. Accounting and finance 4. Human resources Figure 12.1: Outlines a general view of information systems supporting a company's operations and management. Emphasize that management support systems (MRS), decision support systems (DSS), and executive information systems (EIS), rest on the foundation of transaction processing systems (TPS) that support business operations. TPSs are the major source of data used by the higherlevel systems to derive information. Professional support systems (PSS) and office information systems (OIS), which support

individual and group knowledge work, are also a part of this foundation. 12.2 Marketing Information Systems [Figure 12.2 & Figure 12.3] Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs of customers and the objectives of the organization. Marketing information systems support decision making regarding the marketing mix. These include: 1. Product 2. Price 3. Place 4. Promotion Figure 12.3 illustrates the structure of the entire marketing information system. In order to support decision making on the marketing mix,

a marketing information system draws on several sources of data and information. Sources of Data and Information for Marketing: Boundary-Spanning and Transaction Processing Subsystems A marketing information system relies on external information to a far greater degree than other organizational information systems. It includes two subsystems designed for boundary spanning - bringing into the firm data and information about the marketplace. The objective of marketing research is to collect data on the actual customers and the potential customers, known as prospects. The identification of the needs of the customer is a fundamental starting point for total quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual buyer behaviour. Marketing research software supports statistical analysis of data. It enables the firm to correlate

buyer behaviour with very detailed geographic variables, demographic variables, and psychographic variables. Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the competitor information comes from corporate annual reports, media-tracking services, and from reports purchased from external providers, including on-line database services. The Internet has become a major source of competitive intelligence. Marketing Mix Subsystems The marketing mix subsystems support decision making regarding product introduction, pricing, promotion (advertising and personal selling), and distribution. These decisions are integrated into the sales forecast and marketing plans

against which the ongoing sales results are compared. Marketing mix subsystems include: 1. Product subsystem 2. Place subsystem 3. Promotion subsystem 4. Price subsystem 5. Sales forecasting Product Subsystem The product subsystem helps to plan the introduction of new products. Continually bringing new products to market is vital in today's competitive environment of rapid change. The product subsystem should support balancing the degree of risk in the overall newproduct portfolio, with more aggressive competitors assuming higher degrees of risk for a potentially higher payoff.

Although decisions regarding the introduction of new products are unstructured, information systems support this process in several ways: 1. Professional support systems assist designers in their knowledge work 2. DSSs are used to evaluate proposed new products 3. With a DSS, a marketing manager can score the desirability of a new product. 4. Electronic meeting systems help bring the expertise of people dispersed in space and time to bear on the problem 5. Information derived from marketing intelligence and research is vital in evaluating new product ideas. Place Subsystem The place subsystem assists the decision makers in making the product available to the customer at the right place at the right time. The place

subsystem helps plan the distribution channels for the product and track their performance. The use of information technology has dramatically increased the availability of information on product movement in the distribution channel. Examples include: 1. Bar-coded Universal Product Code (UPC) 2. Point-of-sale (POS) scanning 3. Electronic data interchange (EDI) 4. Supports just-in-time product delivery and customized delivery Promotion Subsystem The promotion subsystem is often the most elaborate in the marketing information system, since it supports both personal selling and advertising. Media selection packages assist in selecting a mix of avenues to persuade the potential purchaser, including direct mail, television, print media, and the electronic media

such as the Internet and the WEB in particular. The effectiveness of the selected media mix is monitored and its composition is continually adjusted. Database marketing relies on the accumulation and use of extensive databases to segment potential customers and reach tem with personalized promotional information. The role of telemarketing, marketing over the telephone, has increased. Telemarketing calls are well supported by information technology. Sales management is thoroughly supported with information technology. Customer profitability analysis help identify high-profit and highgrowth customers and target marketing efforts in order to retain and develop these accounts. Sales force automation, involves equipping salespeople with portable computers tied into the corporate information systems. This gives the salespeople instantaneous access to information and frees them from the reporting

paperwork. This increases selling time and the level of performance. Access to corporate databases is sometimes accompanied by access to corporate expertise, either by being able to contact the experts or by using expert systems that help specify the product meeting customer requirements. Price Subsystem Pricing decisions find a degree of support from DSSs and access to databases that contain industry prices. These highly unstructured decisions are made in pursuit of the companys pricing objectives. General strategies range from profit maximization to forgoing a part of the profit in order to increase a market share. Information systems provide an opportunity to finely segment customer groups, and charge different prices depending on the combination of products and services provided, as well as the circumstances of the sale transaction. Sales Forecasting

Based on the planned marketing mix and outstanding orders, sales are forecast and a full marketing plan is developed. Sale forecasting is an area where any quantitative methods employed must be tempered with human insight and experience. The actual sales will depend to a large degree on the dynamics of the environment. Qualitative techniques are generally used for environmental forecasting - an attempt to predict the social, economic, legal, and technological environment in which the company will try to realize its plans. Sales forecasting uses numerous techniques, which include: 1. Group decision making techniques are used to elicit broad expert opinion 2. Scenario analysis in which each scenario in this process is a plausible future environment 3. Extrapolation of trends and cycles through a time-series analysis.

12.3 Manufacturing Information Systems Global competitive pressures of the information society have been highly pronounced in manufacturing and have radically changed it. The new marketplace calls for manufacturing that are: 1. Lean - highly efficient, using fewer input resources in production through better engineering and through production processes that rely on low inventories and result in less waste. 2. Agile - fit for time-based competition. Both the new product design and order fulfilment are drastically shortened. 3. Flexible - able to adjust the product to a customer's preferences rapidly and cost effectively. 4. Managed for quality - by measuring quality throughout the production process and following world standards, manufacturers treat

quality as a necessity and not a high-price option. Structure of Manufacturing Information Systems [Figure 12.5] Information technology must play a vital role in the design and manufacturing processes. Manufacturing information systems are among the most difficult both to develop and to implement. TPSs are embedded in the production process or in other company processes. The data provided by the transaction processing systems are used by management support subsystems, which are tightly integrated and interdependent. Manufacturing information subsystems include: 1. Product design and engineering 2. Product scheduling 3. Quality control

4. Facilities planning, production costing, logistics and inventory subsystems Product Design and Engineering Product design and engineering are widely supported today by computer-aided design (CAD) and computer-aided engineering (CAE) systems. CAD systems assist the designer with automatic calculations and display of surfaces while storing the design information in databases. The produced designs are subject to processing with CAE systems to ensure their quality, safety, manufacturability, and cost-effectiveness. CAD/CAE systems increasingly eliminate paperwork from the design process, while speeding up the process itself. As well, the combined techniques of CAD/CAE and rapid prototyping cut time to market. Product Scheduling Production scheduling is the heart of the manufacturing information system. This

complex subsystem has to ensure that an appropriate combination of human, machinery, and material resources will be provided at an appropriate time in order to manufacture the goods. Production scheduling and the ancillary processes are today frequently controlled with a manufacturing resource planning system as the main informational tool. This elaborate software converts the sales forecast for the plants products into a detailed production plan and further into a master schedule of production. Computer integrated manufacturing (CIM) is a strategy through which a manufacturer takes control of the entire manufacturing process. The process starts with CAD and CAE and continues on the factory floor where robots and numerically controlled machinery are installed and thus computer-aided manufacturing (CAM) is implemented. A manufacturing system based on this concept can turn out very small batches of a particular

product as cost-effectively as a traditional production line can turn out millions of identical products. A full-fledged CIM is extremely difficult to implement; indeed, many firms have failed in their attempts to do so. Quality Control The quality control subsystem of a manufacturing information system relies on the data collected on the shop floor by the sensors embedded in the process control systems. Total quality management (TQM) is a management technique for continuously improving the performance of all members and units of a firm to ensure customer satisfaction. In particular, the principles of TQM state that quality comes from improving the design and manufacturing process, rather than Ainspecting out@ defective products. The foundation of quality is also understanding and reducing variation in the overall manufacturing process.

Facilities Planning, Production Costing, Logistics and Inventory Subsystems Among the higher-level decision making supported by manufacturing information systems are facilities planning - locating the sites for manufacturing plants, deciding on their production capacities, and laying out the plant floors. Manufacturing management requires a cost control program, relying on the information systems. Among the informational outputs of the production costing subsystem are labor and equipment productivity reports, performance of plants as cost centers, and schedules for equipment maintenance and replacement. Managing the raw-materials, packaging, and the work in progress inventory is a responsibility of the manufacturing function. In some cases, inventory management is combined with the general logistics systems, which plan and

control the arrival of purchased goods into the firm as well as shipments to the customers. 12.4 Accounting and Financial Information Systems [Figure 12.9] The financial function of the enterprise consists in taking stock of the flows of money and other assets into and out of an organization, ensuring that its available resources are properly used and that the organization is financially fit. The components of the accounting system include: 1. Accounts receivable records 2. Accounts payable records 3. Payroll records 4. Inventory control records 5. General ledgers Financial information systems rely on external sources, such as on-line databases and custom produced reports, particularly in the areas of financial forecasting and funds management.

The essential functions that financial information systems perform include: 1. Financial forecasting and planning 2. Financial control 3. Funds management 4. Internal auditing Financial Forecasting Financial forecasting is the process of predicting the inflows of funds into the company and the outflows of funds from it for a long term into the future. Outflows of funds must be balanced over the long term with the inflows. With the globalization of business, the function of financial forecasting has become more complex, since the activities in multiple national markets have to be consolidated, taking into consideration the vagaries of multiple national currencies. Scenario analysis is frequently employed in order to prepare the firm for various contingencies.

Financial forecasts are based on computerized models known as cash-flow models. They range from rather simple spreadsheet templates to sophisticated models developed for the given industry and customized for the firm or, in the case of large corporations to specify modeling of their financial operations. Financial forecasting serves to identify the need for funds and their sources. Financial Control The primary tools of financial control are budgets. A budget specifies the resources committed to a plan for a given project or time period. Fixed budgets are independent of the level of activity of the unit for which the budget is drawn up. Flexible budgets commit resources depending on the level of activity. Spreadsheet programs are the main budgeting tools. Spreadsheets are the personal productivity tools in use today in budget preparation.

In the systems-theoretic view, budgets serve as the standard against which managers can compare the actual results by using information systems. Performance reports are used to monitor budgets of various managerial levels. A performance report states the actual financial results achieved by the unit and compares them with the planned results. Along with budgets and performance reports, financial control employs a number of financial ratios indicating the performance of the business unit. A widely employed financial ratio is return on investment (ROI). ROS shows how well a business unit uses its resources. Its value is obtained by dividing the earnings of the business unit by its total assets. Funds Management Financial information systems help to manage the organization's liquid assets, such as cash or securities, for high yields with the lowest degree of loss risk. Some firms deploy computerized

systems to manage their securities portfolios and automatically generate buy or sell orders. Internal Auditing The audit function provides an independent appraisal of an organization's accounting, financial, and operational procedures and information. All large firms have internal auditors, answerable only to the audit committee of the board of directors. The staff of the chief financial officer of the company performs financial and operational audits. During a financial audit, an appraisal is made of the reliability and integrity of the company's financial information and of the means used to process it. An operational audit is an appraisal of how well management utilizes company resources and how well corporate plans are being carried out. 12.5 Human Resource Information Systems A human resource information system (HRIS) supports the human resources function of an

organization with information. The name of this function reflects the recognition that people who work in a firm are frequently its most valuable resources. The complexity of human resource management has grown immensely over recent years, primary due to the need to conform with new laws and regulations. A HRIS has to ensure the appropriate degree of access to a great variety of internal stakeholders, including: 1. The employees of the Human Resources department in performance of their duties 2. All the employees of the firm wishing ti inspect their own records 3. All the employees of the firm seeking information regarding open positions or available benefit plans 4. Employees availing themselves of the computer-assisted training and evaluation opportunities

5. Managers throughout the firm in the process of evaluating their subordinates and making personnel decisions 6. Corporate executives involved in tactical and strategic planning and control Transaction Processing Subsystems and Databases of Human Resource Information Systems At the heart of HRIS are its databases, which are in some cases integrated into a single human resource database. The record of each employee in a sophisticated employee database may contain 150 to 200 data items, including the personal data, educational history and skills, occupational background, and the history of occupied positions, salary, and performance in the firm. Richer multimedia databases are not assembled by some firms in order to facilitate fast formation of compatible teams of people with complementary skills. Other HRIS databases include:

1. Applicant databases 2. Position inventory 3. Skills inventory 4. Benefit databases 5. External databases Information Subsystems for Human Resource Management The information subsystems of HRIS reflect the flow of human resources through the firm, from planning and recruitment to termination. A sophisticated HRIS includes the following subsystems: 1. Human resource planning 2. Recruiting and workforce management 3. Compensation and benefits 4. Government reporting and labour relations support

Human Resource Planning To identify the human resources necessary to accomplish the long-term objectives of a firm, we need to project the skills, knowledge, and experience of the future employees. Recruiting and Workforce Management Based on the long-term resource plan, a recruitment plan is developed. The plan lists the currently unfilled positions and those expected to become vacant due to turnover. The life-cycle transitions of the firm's workforce - hiring, promotion and transfer, and termination - have to be supported with the appropriate information system components. Compensation and Benefits Two principal external stakeholders have an abiding interest in the human resource policies of organizations. These are: 1. Various levels of government

2. Labor unions 12.6 Integrating Functional Systems for Superior Organizational Performance Functional information systems rarely stand alone. This reflects the fact that the functions they support should, as much as possible, connect with each other seamlessly in order to serve the firms customers. Customers expect timely order delivery, often on a just-in-time schedule; quality inspection to their own standards; flexible credit terms; post-delivery service; and often, participation in the product design process. Information technology provides vital support for integrating internal business processes, cutting across functional lines, and for integrating operations with the firm's business partners, its customers and suppliers.
A systems analyst researches problems, plans solutions, recommends software and systems, and coordinates development to meet business or other requirements. They will be familiar with multiple variety of programming languages, operating systems, and computer hardware platforms. Because they

often write user requests into technical specifications, the systems analysts are the liaisons between vendors andinformation technology professionals.[1] They may be responsible for developing cost analysis, design considerations, and implementation time-lines. A systems analyst may: Plan a system flow from the ground up. Interact with customers to learn and document requirements that are then used to produce

business requirements documents. Write technical requirements from a critical phase. Interact with designers to understand software limitations. Help programmers during system development, ex: provide use cases, flowcharts or

even Database design. Perform system testing. Deploy the completed system. Document requirements or contribute to user manuals. Whenever a development process is conducted, the system analyst is responsible for designing

components and providing that information to the developer.

A system analyst is the person who selects and configures computer systems for an organization or business. His or her job typically begins with determining the intended purpose of the computers. This means the analyst must understand the general objectives of the business, as well as what each individual user's job requires. Once the system analyst has determined the general and specific needs of the business, he can choose appropriate systems that will help accomplish the goals of the business. When configuring computer systems for a business, the analyst must select both hardware and software. The hardware aspect includes customizing each computer's configuration, such as the processor speed, amount of RAM,hard drive space, video card, and monitor size. It may also involve choosing networking equipment that will link the computers together. The software side includes the operating system and applications that are installed on each system. The software programs each person requires may differ greatly between users, which is why it is important that the system analyst knows the specific needs of each user. To summarize, the system analyst's job is to choose the most efficient computer solutions

for a business, while making sure the systems meet all the company's needs. Therefore, the system analyst must have a solid understanding of computer hardware and software and should keep up-to-date on all the latest technologies. He must also be willing to listen to the constant needs and complaints of the users he builds systems for.
A business model describes the rationale of how an organization creates, delivers, and captures value[1] (economic, social, or other forms of value). The process of business model design is part of business strategy. In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. Hence, it gives a complete picture of an organization from high-level perspective. Whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. The essence of a business model is that it defines the manner by which the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit: it thus reflects managements hypothesis about what customers want, how they want it, and how an enterprise can organize to best meet those needs, get paid for doing so, and make a profit.[2] Business models are used to describe and classify businesses (especially in an entrepreneurial setting), but they are also used by managers inside companies to explore possibilities for future development. Also, well known business models operate as recipes for creative managers.[3] Business models are also referred to in some instances within the context of accounting for purposes of public reporting.

Business process

A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. There are three main types of business processes: Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
1.

Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales. 3. Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support.
2.

A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. A business process model is a model of one or more business processes, and defines the ways in which operations are carried out to accomplish the intended objectives of an organization. Such a model remains an abstraction and depends on the intended use of the model. It can describe the workflow or the integration between business processes. It can be constructed in multiple levels. A workflow is a depiction of a sequence of operations, declared as work of a person, work of a simple or complex mechanism, work of a group of persons,[5] work of an organization of staff, or machines. Workflow may be seen as any abstraction of real work, segregated in workshare, work split or whatever types of ordering. For control purposes, workflow may be a view on real work under a chosen aspect.
[edit]Artifact-centric

Business process

The Artifact-centric business process model has emerged as a new promising approach for modeling business processes, as it provides a highly flexible solution to capture operational specifications of business processes. It particularly focuses on describing the data of business processes, known as artifacts, by characterizing business-relevant data objects, their lifecycles, and related services. The artifact-centric process modelling approach fosters the automation of the business operations and supports the flexibility of the workflow enactment and evolution
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Advantages and disadvantages

Using this methodology involves a significant undertaking which may not be suitable to all projects. The main advantages of SSADM are:

Three different views of the system Mature Separation of logical and physical aspects of the system Well-defined techniques and documentation User involvement

The size of SSADM is a big hindrance to using it in all circumstances. There is a large investment in cost and time in training people to use the techniques. The learning curve is considerable as not only are there several modeling techniques to come to terms with, but there are also a lot of standards for the preparation and presentation of documents.
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