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Information System

• Systems development is systematic process which includes phases
such as planning, analysis, design, deployment, and maintenance.
Here, in this tutorial, we will primarily focus on −
• Systems analysis
• Systems design

Systems Analysis
• It is a process of collecting and interpreting facts, identifying the
problems, and decomposition of a system into its components.
• System analysis is conducted for the purpose of studying a system or
its parts in order to identify its objectives. It is a problem solving
technique that improves the system and ensures that all the
components of the system work efficiently to accomplish their
• Analysis specifies what the system should do.
• Systems Design

• It is a process of planning a new business system or replacing an existing

system by defining its components or modules to satisfy the specific
requirements. Before planning, you need to understand the old system
thoroughly and determine how computers can best be used in order to
operate efficiently.
• System Design focuses on how to accomplish the objective of the system.
• System Analysis and Design (SAD) mainly focuses on −
• Systems
• Processes
• Technology
What is a System?
• The word System is derived from Greek word Systema, which means an
organized relationship between any set of components to achieve some
common cause or objective.
• A system is “an orderly grouping of interdependent components linked
together according to a plan to achieve a specific goal.”
• Constraints of a System
• A system must have three basic constraints −
• A system must have some structure and behavior which is designed to
achieve a predefined objective.
• Interconnectivity and interdependence must exist among the system
• The objectives of the organization have a higher priority than the
objectives of its subsystems.
• For example, traffic management system, payroll system, automatic library
system, human resources information system.
Categories of Business Systems
• A typical organization is divided into operational, middle, and upper
level. The information requirements for users at each level differ.
Towards that end, there are number of information systems that
support each level in an organization.
The following diagram illustrates the various levels of a
typical organization.
Operational management level
• The operational level is concerned with performing day to day
business transactions of the organization.
• Examples of users at this level of management include cashiers at a
point of sale, bank tellers, nurses in a hospital, customer care staff,
• Users at this level use make structured decisions. This means that
they have defined rules that guides them while making decisions.
• For example, if a store sells items on credit and they have a credit
policy that has some set limit on the borrowing. All the sales person
needs to decide whether to give credit to a customer or not is based
on the current credit information from the system.
Tactical Management Level
• This organization level is dominated by middle-level managers, heads
of departments, supervisors, etc. The users at this level usually
oversee the activities of the users at the operational management
• Tactical users make semi-structured decisions. The decisions are
partly based on set guidelines and judgmental calls. As an example, a
tactical manager can check the credit limit and payments history of a
customer and decide to make an exception to raise the credit limit for
a particular customer. The decision is partly structured in the sense
that the tactical manager has to use existing information to identify a
payments history that benefits the organization and an allowed
increase percentage.

Strategic Management Level
• This is the most senior level in an organization. The users at this level
make unstructured decisions. Senior level managers are concerned
with the long-term planning of the organization. They use information
from tactical managers and external data to guide them when making
unstructured decisions.
Transaction Processing System (TPS)

• Transaction processing systems are used to record day to day business transactions of the organization. They are
used by users at the operational management level. The main objective of a transaction processing system is to
answer routine questions such as;
• How printers were sold today?
• How much inventory do we have at hand?
• What is the outstanding due for John Doe?
• By recording the day to day business transactions, TPS system provides answers to the above questions in a timely
The decisions made by operational managers are routine and highly structured.
• The information produced from the transaction processing system is very detailed.
For example, banks that give out loans require that the company that a person works for should have a
memorandum of understanding (MoU) with the bank. If a person whose employer has a MoU with the bank applies
for a loan, all that the operational staff has to do is verify the submitted documents. If they meet the requirements,
then the loan application documents are processed. If they do not meet the requirements, then the client is advised
to see tactical management staff to see the possibility of signing a MoU.

• Examples of transaction processing systems include;

• Point of Sale Systems – records daily sales
• Payroll systems – processing employees salary, loans management, etc.
• Stock Control systems – keeping track of inventory levels
• Airline booking systems – flights booking management
Management Information System (MIS)

• Management Information Systems (MIS) are used by tactical managers to monitor the
organization's current performance status. The output from a transaction processing system is
used as input to a management information system.
• The MIS system analyzes the input with routine algorithms i.e. aggregate, compare and
summarizes the results to produced reports that tactical managers use to monitor, control and
predict future performance.
• For example, input from a point of sale system can be used to analyze trends of products that are
performing well and those that are not performing well. This information can be used to make
future inventory orders i.e. increasing orders for well-performing products and reduce the orders
of products that are not performing well.

Examples of management information systems include;

• Sales management systems – they get input from the point of sale system
• Budgeting systems – gives an overview of how much money is spent within the organization for
the short and long terms.

• Human resource management system – overall welfare of the employees, staff turnover, etc.
Tactical managers are responsible for the semi-structured decision. MIS systems provide the
information needed to make the structured decision and based on the experience of the tactical
managers, they make judgement calls i.e. predict how much of goods or inventory should be
ordered for the second quarter based on the sales of the first quarter.
• Decision Support System (DSS)
• Decision support systems are used by senior management to make non-
routine decisions. Decision support systems use input from internal
systems (transaction processing systems and management information
systems) and external systems.
• The main objective of decision support systems is to provide solutions to
problems that are unique and change frequently. Decision support systems
answer questions such as;
• What would be the impact of employees' performance if we double the
production lot at the factory?
• What would happen to our sales if a new competitor entered the market?
• Decision support systems use sophisticated mathematical models, and
statistical techniques (probability, predictive modeling, etc.) to provide
solutions, and they are very interactive.
Examples of decision support systems include;
• Financial planning systems – it enables managers to evaluate
alternative ways of achieving goals. The objective is to find the
optimal way of achieving the goal. For example, the net profit for a
business is calculated using the formula Total Sales less (Cost of
Goods + Expenses). A financial planning system will enable senior
executives to ask what if questions and adjust the values for total
sales, the cost of goods, etc. to see the effect of the decision and on
the net profit and find the most optimal way.
• Bank loan management systems – it is used to verify the credit of the
loan applicant and predict the likelihood of the loan being recovered.
What are USERS
Information Systems Development Stakeholder

• A typical information systems development usually has three (3) stakeholders namely;
• Users – Users are the ones who use the system after it has been developed to perform
their day to day tasks.

• Project sponsors - this category of the stakeholders is responsible for the financial aspect
of the project and ensuring that the project is completed.

• Developers – this category is usually made up of systems analysts and programmers. The
system analysts are responsible for collecting the user requirements and writing system
requirements.The programmers develop the required system based on the system
requirements that is developed by the system analysts.

• The most important stakeholders in a project are users. For a project to be accepted as
being completed, the users must accept it and use it. If the users do not accept the
system, then the project is a failure.
System Development Life Cycle
• An effective System Development Life Cycle (SDLC) should result in a high quality
system that meets customer expectations, reaches completion within time and
cost evaluations, and works effectively and efficiently in the current and planned
Information Technology infrastructure.
• System Development Life Cycle (SDLC) is a conceptual model which includes
policies and procedures for developing or altering systems throughout their life
• SDLC is used by analysts to develop an information system. SDLC includes the
following activities −
• requirements
• design
• implementation
• testing
• deployment
• operations
• maintenance
Phases of SDLC
Systems Development Life Cycle is a systematic
approach which explicitly breaks down the work into
phases that are required to implement either new or
modified Information System.
Feasibility Study or Planning

• Define the problem and scope of existing system.

• Overview the new system and determine its objectives.
• Confirm project feasibility and produce the project Schedule.
• During this phase, threats, constraints, integration and security of
system are also considered.
• A feasibility report for the entire project is created at the end of this
Analysis and Specification

• Gather, analyze, and validate the information.

• Define the requirements and prototypes for new system.
• Evaluate the alternatives and prioritize the requirements.
• Examine the information needs of end-user and enhances the system
• A Software Requirement Specification (SRS) document, which
specifies the software, hardware, functional, and network
requirements of the system is prepared at the end of this phase.
System Design

• Includes the design of application, network, databases, user

interfaces, and system interfaces.
• Transform the SRS document into logical structure, which contains
detailed and complete set of specifications that can be implemented
in a programming language.
• Create a contingency, training, maintenance, and operation plan.
• Review the proposed design. Ensure that the final design must meet
the requirements stated in SRS document.
• Finally, prepare a design document which will be used during next

• Implement the design into source code through coding.

• Combine all the modules together into training environment that
detects errors and defects.
• A test report which contains errors is prepared through test plan that
includes test related tasks such as test case generation, testing
criteria, and resource allocation for testing.
• Integrate the information system into its environment and install the
new system.

• Include all the activities such as phone support or physical on-site

support for users that is required once the system is installing.
• Implement the changes that software might undergo over a period of
time, or implement any new requirements after the software is
deployed at the customer location.
• It also includes handling the residual errors and resolve any issues
that may exist in the system even after the testing phase.
• Maintenance and support may be needed for a longer time for large
systems and for a short time for smaller systems.
Life Cycle of System Analysis and Design
The above diagram shows the complete life cycle of the system during analysis and design
Project Selection and Review
• It is true that a number ol requests for systems development are
generated in the organisation. Someone in the organisation must
decide which requests to pursue and which to rcject.
• The criteria to accept or reject a request can bc decided in a number
of ways. One of the suitable methods commonly in use is by
• Mainly three committees formats are commonly used :
• (i) Steering Committee
• (ii) Inlormalion Systems Committee
• (iii) User-Group Cornmittee
Steering Committee

• This is onc of the most common methods of reviewing 'and selecting

projects lor development. Such a committce, consisting of key managers
from various departments of the organisation as well as members of
information systems group, is responsible for supervising the review of
project proposals.
• This committee receives requests for proposal and evaluates them. The
main responsibility of the committee is to take decision, which often
requires more information than the proposal provides.
• It is,therefore, desired to have preliminary investigation to gather more
details. The steering committee approach is generally favored because
syslems projects are considered as business investments.
• Management, not systems analysts designers, selects projects for
• Decisions are made on the basis of the cost of the project, its benefit to lhe
organization and the feasibility or accomplishing the development within
the limits of information systems technology.
Information Systems Committee
• In some organizations, the responsibility for reviewing project requests is
entrusted to a committee of managers and analysts in lhe information
systems department.
• Under this method, all requests for service and development are
submitted directly to a review committee within the information systems
• This committee approves or disapproves projects and sets priorities,
indicating which projects are most important and should receive
immediate attention.
• This method can be used when many requests are for routine services or
maintenance on existing applications. When major equipment decisions
are required or when long- term development commitments are needed to
undertake a project, the decision authority is shared with senior executives
who decide finally whether a project should proceed or not,
User-group Comittee
• In some organizations, the responsibility for project decisions is
entrusted to the users themse1ves:Individual departments hire their
own analysts and designers who handle project selection and carry
out development.
• Although the practice of having .user committees both choose and
develop systems does take some of the burden from the systems
development group, it can be disadvantages for the users. Some user
groups may find themselves with defective or poorly designed
systems that require additional time and effort to undo any damage
caused by the mis-information that such systems could generate.
• Although user groups may find the decisions of steering committees
and information systems committees disappointing at times, the
success rate for users who undertake development job is not very