SYSTEM ANALYSIS AND
DESIGN
ICT NVQ LEVEL 5
INFORMATION SYSTEMS
Sajeewani Ponnamperuma
MBA, MSc(IT), BSc(sp)Hons, PGDip (MIS), MCSSL
sajeewaniponnamperuma@gmail.com
071-6405691
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THE SYSTEMS DEVELOPMENT
ENVIRONMENT
1.1 Copyright 2004 Prentice-Hall, Inc.
Information Systems in the
Enterprise
2.1 Key System Applications in the
Organization
2.2 Systems from a Functional Perspective
2.3 Integrating Functions and Business
Processes
2.4 International Information Systems
3
DECISION-MAKING LEVELS OF AN ORGANIZATION
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5
FIG 2.1: TYPES OF INFORMATION SYSTEMS
DECISION-MAKING LEVELS OF AN ORGANIZATION
• EXECUTIVE LEVEL (TOP)
• LONG-TERM DECISIONS
• UNSTRUCTURED DECISIONS
• MANAGERIAL LEVEL (MIDDLE)
• DECISIONS COVERING WEEKS AND MONTHS
• SEMISTRUCTURED DECISIONS
• OPERATIONAL LEVEL (BOTTOM)
• DAY-TO-DAY DECISIONS
• STRUCTURED DECISIONS
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Basic systems model for all Info.
Systems
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2.1
DIFFERENT KINDS OF
SYSTEMS
Operational-level systems
INFORMATION SYSTEMS THAT MONITOR THE
ELEMENTARY ACTIVITIES AND TRANSACTIONS OF
THE ORGANIZATION .
Knowledge-level systems
INFORMATION SYSTEMS THAT SUPPORT
KNOWLEDGE AND DATA WORKERS IN AN
ORGANIZATION.
8
2.1
DIFFERENT KINDS OF
SYSTEMS
Management-level systems
• INFORMATION SYSTEMS THAT SUPPORT THE MONITORING,
CONTROLLING, DECISION MAKING, AND ADMINISTRATIVE
ACTIVITIES OF MIDDLE MANAGERS.
Strategic-level systems
INFORMATION SYSTEMS THAT SUPPORT THE LONG-
RANGE PLANNING ACTIVITIES OF SENIOR MANAGEMENT .
2/2
9
RELATIONSHIP OF SYSTEMS TO ONE ANOTHER:
INTEGRATION
ESS
MIS
DSS
OAS TPS
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Major Types of Systems
• Executive Support Systems (ESS)
• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)
11
INFORMATION SYSTEMS THAT SPAN ORGANIZATIONAL
BOUNDARIES
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13
FIG 2-2: THE SIX MAJOR TYPES OF INFORMATION SYSTEMS.
2.1
SIX MAJOR TYPES OF
SYSTEMS
TPS – Transaction Processing
Systems
COMPUTERIZED SYSTEMS THAT PERFORM AND RECORD
THE DAILY ROUTINE TRANSACTIONS NECESSARY TO
CONDUCT THE BUSINESS; THEY SERVE THE
ORGANIZATION’S OPERATIONAL LEVEL.
14
15
FIG 2-4: TYPICAL APPLICATIONS OF TPS ■
TYPICAL TPS APPLICATIONS
SALES & MARKETING SYSTEMS
MAJOR FUNCTIONS OF SYSTEMS:
SALES MANAGEMENT ;
MARKET RESEARCH ;
PROMOTION ; PRICING ; NEW
PRODUCTS
MAJOR APPLICATION SYSTEMS:
SALES ORDER INFO SYSTEM ;
MARKET RESEARCH SYSTEM ;
PRICING SYSTEM 16
2.1
TPS – TRANSACTION PROCESSING
SYSTEMS
MANUFACTURING
PLANT SCHEDULING
MATERIAL MOVEMENT CONTROL
MACHINE CONTROL
FINANCE
SECURITIES TRADING
CASH MANAGEMENT
17
2.1
TPS – TRANSACTION PROCESSING
SYSTEMS
ACCOUNTING
PAYROLL
ACCOUNT PAYABLE
ACCOUNT RECEIVABLE
HUMAN RESOURCES
COMPENSATION
TRAINING & DEVELOPMENT
EMPLOYEE RECORD KEEPING 18
2.1
Payroll TPS
19
FIG 2-3: A SYMBOLIC REPRESENTATION FOR A PAYROLL TPS.
2.1
SIX MAJOR TYPES OF
SYSTEMS
KWS – knowledge work systems
INFORMATION SYSTEMS THAT AID KNOWLEDGE
WORKERS IN THE CREATION AND INTEGRATION OF NEW
KNOWLEDGE IN THE ORGANIZATION .
Example: Engineering work station
20
2.1
SIX MAJOR TYPES OF
SYSTEMS
OAS – office automation systems
COMPUTER SYSTEMS, SUCH AS WORD PROCESSING,
ELECTRONIC MAIL SYSTEMS, AND SCHEDULING SYSTEMS,
THAT ARE DESIGNED TO INCREASE THE PRODUCTIVITY
OF DATA WORKERS IN THE OFFICE .
21
2.1
SIX MAJOR TYPES OF
SYSTEMS
MIS – Management Information
Systems
INFORMATION SYSTEMS AT THE MANAGEMENT
LEVEL OF ORGANIZATION THAT SERVE THE
FUNCTIONS OF PLANNING, CONTROLLING, AND
DECISION MAKING BY PROVIDING ROUTINE
SUMMARY AND EXCEPTION REPORTS.
Example: Annual budgeting 22
2.1
MIS
• Structured and semi-structured decisions
• Report control oriented
• Past and present data
• Internal orientation
23
TPS DATA FOR MIS APPLICATIONS
24
FIG 2-5: HOW MANAGEMENT INFORMATION SYSTEMS OBTAIN THEIR DATA THE FROM THE ORGANIZATION’S TPS .
2.1
SIX MAJOR TYPES OF
SYSTEMS
DSS – Decision Support Systems
INFORMATION SYSTEMS AT THE MANAGEMENT LEVEL OF
AN ORGANIZATION THAT COMBINE DATA AND
SOPHISTICATED ANALYTICAL MODELS TO SUPPORT NON-
ROUTINE DECISION MAKING.
Example: Contract cost analysis 25
Decision Support System (DSS)
26
FIG 2-7: VOYAGE ESTIMATING DECISION-SUPPORT SYSTEM .
2.1
MIS & DSS
SALES AND MARKETING
SALES MANAGEMENT
SALES REGION ANALYSIS
• MANUFACTURING
INVENTORY CONTROL
PRODUCTION SCHEDULING
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2.1
MIS & DSS
FINANCE
ANNUAL BUDGETING
COST ANALYSIS
ACCOUNTING
CAPITAL INVESTMENT ANALYSIS
PRICING / PROFITABILITY
ANALYSIS
HUMAN RESOURCE
RELOCATION ANALYSIS
CONTRACT COST ANALYSIS 28
2.1
SIX MAJOR TYPES OF
SYSTEMS
ESS – Executive Support Systems
INFORMATION SYSTEM AT THE ORGANIZATION’S
STRATEGIC LEVEL DESIGNED TO ADDRESS
UNSTRUCTURED DECISION MAKING THROUGH
ADVANCED GRAPHICS AND COMMUNICATIONS.
Example: 5-year operating plan 29
2.1
ESS
• Top level management
• Designed to the individual
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staff 30
Executive Support System (ESS)
31 .
FIG 2-8: MODEL OF A TYPICAL EXECUTIVE SUPPORT SYSTEM
2.1
ESS
SALES AND MARKETING SALES TREND
FORECASTING
MANUFACTURING OPERATING PLAN
FINANCE BUDGET FORECASTING
ACCOUNTING PROFIT PLANNING
HUMAN RESOURCE PERSONNEL PLANNING
32
2.1
CHARACTERISTICS OF DIFFERENT
TYPES OF INFORMATION SYSTEMS
INFORMATION INPUTS
PROCESSING
INFORMATION
OUTPUTS
USERS
33
See Table 2-1 ( p.41 )
2.2 Systems from a Functional Perspective
34
FIG 2-9: INTERRELATIONSHIPS AMONG SYSTEMS
2.2 Systems from a Functional Perspective
SALES & MARKETING SYSTEMS
MANUFACTURING & PRODUCTION
SYSTEMS
FINANCE & ACCOUNTING SYSTEMS
HUMAN RESOURCES SYSTEMS
35
2.2 Systems from a Functional Perspective
Sales and Marketing Systems
Major functions of systems:
Sales management, market research, promotion,
pricing, new products
Major application systems:
Sales order info system, market research system,
pricing system
36
Sales and Marketing Systems
37
2.2 Systems from a Functional Perspective
Manufacturing and Production Systems
Major functions of systems:
Scheduling, purchasing, shipping, receiving,
engineering, operations
Major application systems:
Materials resource planning systems, purchase
order control systems, engineering systems,
quality control systems
38
Manufacturing and Production Systems
39
2.2 Systems from a Functional Perspective
Financing and Accounting Systems
Major functions of systems:
Budgeting, general ledger, billing, cost accounting
Major application systems:
General ledger, accounts receivable, accounts
payable, budgeting, funds management systems
40
Financing and Accounting Systems
41
2.2 Systems from a Functional Perspective
Human Resource Systems
Major functions of systems:
Personnel records, benefits, compensation, labor
relations, training
Major application systems:
Payroll, employee records, benefit systems, career
path systems, personnel training systems
42
Human Resource Systems
43
2.3 Business Processes and
Information Systems
Business processes
Manner in which work is organized, coordinated,
and focused to produce a valuable product or
service
Concrete work flows of material, information, and
knowledge—sets of activities
Unique ways to coordinate work, information, and
knowledge
Ways in which management chooses to coordinate
work 44
2.3 Business Processes and Information Systems
Examples of Business Processes
Manufacturing and production: Assembling
product, checking quality, producing bills of
materials
Sales and marketing: Identifying customers,
creating customer awareness, selling
45
2.3 Business Processes and Information Systems
Cross-Functional Business Processes
Fig. 2-12 The Order Fulfillment Process 46
2.3 Business Processes and Information Systems
Information systems help organizations
Achieve great efficiencies by automating parts
of processes
Rethink and streamline processes
47
2.3 Business Processes and Information Systems
Customer Relationship Management (CRM)
Manages all ways used by firms to deal with
existing and potential new customers
Uses information system to coordinate entire business
processes of a firm
Provides end-to-end customer care
Provides a unified view of customer across the company
Consolidates customer data from multiple sources and
provides analytical tools for answering questions
48
2.3 Business Processes and Information Systems
Customer Relationship Management (CRM)
49
Figure 2-13
2.3 Business Processes and Information Systems
Supply Chain Management (SCM)
•Close linkage and coordination of activities involved in buying,
making, and moving a product
•Integrates supplier, manufacturer, distributor, and customer,
logistics, time
•Reduces time, redundant effort, and inventory costs
•Network of organizations and business processes
•Helps in procurement of materials, transformation of raw
materials into finished products
•Helps in distribution of the finished products to customers
• Includes reverse logistics - returned items flow in the
reverse direction from the buyer back to the seller
50
2.3 Business Processes and Information Systems
Supply Chain Management
51
Figure 2-14
2.3 How Information Systems Facilitate
Supply Chain Management
•Decide when, what to produce, store, move
•Rapidly communicate orders
•Communicate orders, track order status
•Check inventory availability, monitor levels
•Track shipments
•Plan production based on actual demand
•Rapidly communicate product design change
•Provide product specifications
•Share information about defect rates, returns
52
2.3 Collaborative Commerce
53
Figure 2-15
2.3 Enterprise System
54
Figure 2-17
2.4 Global System Configuration
55
Figure 2-18
