Introduction to Business Systems Development

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Introduction to Business Systems Development
BCO1048
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Topic 2
Computer Based Information Systems
Satzinger 4th edn. Chapter 1, 4
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Information System Building Blocks

• Overview
• Define an information system
• Describe the role of information technology in
  information systems.
• Differentiate between front- and back-office
  information systems.
• Classes of information system applications and
  how they interoperate.
• Information systems architecture in system
  development.
• Three focuses for information systems.

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Whitten et al.
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Information Systems Technology

• An information system (IS) is a collection of
  interrelated components that interact to support
  and improve day-to-day operations in a business
  as well as support the problem-solving and
  decision making needs of management and users.

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Transforming data ... .into useful
information

• An information system is
• people, data, processes,
• communications, and information technology
• that
• support and improve the day-to-day operations
• and
• fulfill the problem-solving and decision-making
  information needs of managers and users

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Computer Based Information System

• An Information System that uses computer systems,
  devices and technology is a CBIS
• made up of people, software,
• hardware, databases and procedures
• There are different types of CBISs, each serving
  the needs of different users.

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Front/Back Office I.S.

• Front-office information systems support business
  functions that reach out to customers (customer
  facing systems).
• Marketing
• Sales
• Customer management
• Back-office information systems support internal
  business operations and interactions with
  suppliers.
• Human resources
• Financial management
• Manufacturing
• Inventory control

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Whitten et al Fig 2.1
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Classes of Information Systems

• 1. Transaction Processing Systems (TPS)
• 2. Management Information Systems (MIS)
• 3. Decision Support Systems (DSS)
• 4. Expert Systems (ES)
• 5. Office Automation Systems (OA)
• 6. Communication Support Systems (CSS)
• 7. Enterprise Resource Planning Systems (ERP)
• 8. Customer Relationship Management Systems (CRM)
• 9. Executive Information Systems (EIS)

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1. (TPS)Transaction Processing Systems

• Business transactions are events that serve the
  mission of the business.
• TPS capture and process data about/for business
  transactions.
• Operations and control of day to day information
• Very short term
• Uses internal information
• Data must be precise for correct decision making
• Sometimes called data processing systems.

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2. (MIS) Management Information Systems

• MIS supplements transaction processing systems
  with management reports required to plan,
  monitor, and control business operations.
• Gives management control over ongoing functions
• Short term up to 2-3 months
• Internal information
• Data is vital for correct decision making

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3. (DSS) Decision Support System

• Concerned with providing useful information to
  support the decision process and explore the
  impact of options
• Provides decision-oriented information whenever a
  decision making situation arises
• Sometimes called executive information systems
• Designed to support unstructured decisions

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Decision Support System

• A data warehouse is a read-only, informational
  database that is populated with detailed,
  summary, and exception data and information
  generated by other transaction and management
  information systems
• The data warehouse can then be accessed by users
  and managers with DSS tools that generate a
  virtually limitless variety of information in
  support of unstructured decisions

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• Characteristics
• long term
• senior management
• uses external and internal information
• data is not vital

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• 4. Expert Systems (ES)
• Are an extension of the decision support system
• Captures the knowledge and expertise of a problem
  solver or decision maker, and then simulates the
  thinking of that expert for those who have less
  expertise
• Implemented with artificial intelligence
  technology that captures, stores, and provides
  access to the reasoning of the experts

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5. Office Automation Systems

• Office automation (OA) systems support the wide
  range of business office activities that provide
  for improved work flow and communications between
  workers, regardless of whether or not those
  workers are located in the same office

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• These are typically built using personal computer
  technology and software.
• Personal information systems are those designed
  to meet the needs of a single user. They are
  designed to boost an individuals productivity.
• Work group information systems are those designed
  to meet the needs of a work group. They are
  designed to boost the groups productivity.

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6. (CSS)Communication Support Systems

• Allow employees to communicate with each other
  and with customers and suppliers
• Eg. Email, video conferencing systems

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7. (ERP)Enterprise Resource Planning

• ERP software product is a fully integrated
  information system that spans most basic business
  functions required by a major corporation.
• ERP software vendors include
• Baan, J. D. Edwards, Oracle, Peoplesoft, SAP

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8. (CRM) Customer Relationship Management

• Systems and process that support marketing, sales
  and service involving direct and indirect
  customer interaction
• Helps improve customer loyalty
• The competition is just a click away

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9. (EIS)Executive Information Systems

• Information systems for executives
• monitoring the competitive environment
• strategic planning

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Whitten et al, Fig 2.2
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Electronic Commerce

• E-commerce / EC involves conducting both internal
  and external business over the Internet,
  intranets, and extranets.
• includes the buying and selling of goods and
  services, the transfer of funds, and the
  simplification of day-to-day business processes
  all through digital communications.
• 3 basic types include Marketing,
  Business-to-consumer (B2C), Business-to-business
  (B2B)

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Legacy Systems

• Older information system applications that have
  become crucial to the day-to-day operation of a
  business and that may use old or outdated
  technologies.
• Can be adversely affected by technology and
  economic forces. E.g. Year 2000, Euro
• Can be replaced by alternative solutions.
• E.g. ERP, E-Commerce

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Information Systems Architecture

• Information systems architecture provides a
  unifying framework into which various people with
  different perspectives can organize and view the
  fundamental building blocks of information
  systems.

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Perspectives or Stakeholders

• System owners (clients) pay for the system to be
  built and maintained.
• System users use the system to perform the work
  to be done.
• System designers design it to meet the users
  requirements.
• System builders construct, test, and deliver the
  system.
• Systems analysts facilitate the development of
  information systems and computer applications by
  bridging the communications gap that exists
  between non-technical system owners and users and
  technical system designers and builders.
• IT vendors and consultants sell hardware,
  software, and services to businesses for
  incorporation into their information systems.

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Focuses for Information Systems

• Datathe raw material used to create useful
  information
• Processesthe activities (including management)
  that carry out the mission of the business
• Interfaceshow the system interfaces with its
  users and other information systems

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Information System Perspectives and
Focuses Whitten et al Fig 2.3
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The DATA Focus
Whitten et al Fig 2.4
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The Data Focus

• System owners perspective
• Business knowledge
• System users perspective
• Data requirements
• System designers perspective
• Database schema
• System builders perspective
• Database management system

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The PROCESS Focus
Whitten et al Fig 2.5
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The Process Focus

• System owners perspective
• Business functions are ongoing activities that
  support the business
• A cross-functional information system supports
  relevant business processes from several business
  functions without regard to traditional
  organizational boundaries such as divisions,
  departments, centers, and offices

Continued ...
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The Process Focus

• System users perspectives
• Business processes are the work performed by
  the system
• Process requirements are a representation of the
  users business processes in terms of activities,
  data flows, or work flow
• A policy is a set of rules that govern a business
  process and a procedure is a step-by-step set of
  instructions and logic for accomplishing a
  business process

Continued ...
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The Process Focus

• System designers perspectives
• An application schema is a model that
  communicates how selected business processes are,
  or will be, implemented using the software and
  hardware
• Software specifications represent the technical
  design of business processes to be automated or
  supported by computer programs to be written by
  system builders

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The Process Focus

• System builders perspectives
• Application programs are language-based,
  machine-readable representations of what a
  software process is supposed to do, or how a
  software process is supposed to accomplish its
  task
• Prototyping is a technique for quickly building a
  functioning, but incomplete model of the
  information system using rapid application
  development tools

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The INTERFACE Focus
Whitten et al Fig 2.6
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The Interface Focus

• System owners perspective
• System users perspectives
• Interface requirements are a representation of
  the users inputs and outputs.
• System designers perspective
• User dialogues describe how the user moves from
  window-to-window, interacting with the
  application programs to perform useful work.
• System builders perspective

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Information System Building Blocks
Whitten et al. Fig 2.7
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The Role of the Network in IS
Whitten et al Fig 2.8
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A CommunicationsFocus in IS
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Homework

• From Satzinger et al.
• - Read and summarize
• pages 8-28
• - Complete
• Review questions 5, 11 (page 30)
• Thinking Critically 10 (page 30)