Zemen postgraduate college

WELCOME TO:
Management
Information System
Credit hours: 2
 Chapter One
Overview of MIS
 1.1. INTRODUCTION
Data vs. Information
• Data
– refers to raw facts
– Example: inventory part number or sales orders
• Information
– refers to data that have been processed and
presented in a form suitable for human
interpretation
– Example: total number of registered students
based on each major or geographical purchasing
pattern of SUV
Information as organizational resources

• Organizational resources: Material, financial,

human (Physical resources) and informational
resources (conceptual resource).
• Managers manage the physical resources and the
performance of their organizations using the
conceptual resource
• A manager, at any level of the organization, needs
information to make decisions and to control
organizational resources.
• Therefore, information resource needs proper
management attention as the other resources.
Attributes of Information Quality
Time Dimension: deals with the when aspect of information
Timeliness:-- Information should be provided when it is needed
Currency:--- Information should be up-to-date when it is provided
Frequency:---Information should be provided as often as needed
Time period:--Information can be provided about past, present, and
future time periods
Content Dimension: deals with the what aspect of information
Accuracy…. Information should be free from errors
Relevance…..Information should be related to the information
needs of a specific recipient for a specific situation
Completeness;….All the information that is needed should be
provided
Conciseness;….Only the information that is needed should be
provided
Scope: Information can have a broad or narrow scope or an
internal or external focus
Performance: Information can reveal performance by measuring
Form Dimension:
deals with how aspect of information
Clarity:Information should be provided in a form that is easy to
understand
Detail:-Information can be provided in detail or summary form
Order;- Information can be arranged in a predetermined sequence
Presentation:-Information can be presented in narrative, numeric,
graphic or other form
Media:-Information can be provided in the forma of printed paper
documents, video displays, or other media.
 What is an Information System?

• An Information System (IS) is interrelated components to

collect, process, store and distribute information to
support mainly decision makings in an organization

• Information technology (IT) describes the combination of

computer technology (hardware and software) with
telecommunications technology (data, image, and voice
networks).
 System‘s Concepts
• A system is defined “as” a group of interrelated
components working together toward a common
goal by accepting inputs and producing outputs in
an organized transformation process
Classification of Systems
• Natural systems, deal with natural relationship
including living systems and non-living system.
• Artificial systems, man-made systems such as
organizations, computer systems, factory systems,
etc.
• Abstract systems: systems of ideas, beliefs,
theories, etc.
• Closed vs Open Systems
– closed system: a system that cannot interact
with its environment.
– Open Systems: a system that interacts with
other systems in its environment through
exchange of information, material, personnel,
finance and energy. All business organizations
are open systems.
• Deterministic vs. Stochastic Systems
– Deterministic systems: if the behaviour of a system is
predictable in detail e.g. solar system
– Stochastic systems: systems difficult to predict their
behaviours. Behaviours can be affected by random or
stochastic inputs. Systems that involve people.
 Characteristics of open systems
• Environment; No system is seen outside the context of its
environment
• Subsystem: Any system has lower level systems, called
subsystems that perform different functions
• supra-system: a system can be a subsystem of a higher level
systems
• boundary can be purpose, scope objective, mission, etc, that
serves as boundary to separate a system from its
environment and other systems
• interface: occur at the boundary in the form of taking inputs
from, and delivering outputs to, the environment .
 Characteristics of open systems
• Input a system needs raw materials, labour, energy,
information etc. as input.
• Process: a series or parallel activities taken by a
system/or subsystems to combine different inputs and to
produce new product /service.
• Output: A product of a system that can be input to other
systems or consumed as end product.
• Synergy: Tells unity of purpose, coordination of activities,
etc which give higher value product than the value of the
inputs.
• Equi-finality: there are a lot of alternatives that can lead
to the same end result or objective.
 Characteristics of open systems
• Coupling: the extent of linkage between the subsystems.
– Loose coupling means that subsystems are not closely
linked and
– close coupling means that systems are highly dependent
on each other.
• Feedback and control: monitoring the internal and external
situation and taking action based on the information

• System entropy-a measure of how predictable information

might be. It is chaos and disorder of a system that occurs
without being maintained
1.2.Major Roles of Information Systems in business

• Growing interdependence between ability to use

information technology and ability to implement
corporate strategies and achieve corporate goals
• Business firms invest heavily in information systems
to achieve six strategic business objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
 The Role of Information Systems in Business Today

• Operational excellence:
– Improvement of efficiency to attain higher
profitability
– Information systems, technology an
important tool in achieving greater
efficiency and productivity
– Walmart’s RetailLink system links suppliers
to stores for superior replenishment system
 The Role of Information Systems in Business Today

• New products, services, and business

models:
– Business model: describes how company
produces, delivers, and sells product or service to
create wealth
– Information systems and technology a major
enabling tool for new products, services, business
models
• Examples: Apple’s iPod, iTunes, iPhone, iPad,
Google’s Android OS, and Netflix
 The Role of Information Systems in Business Today

• Customer and supplier intimacy:

– Serving customers well leads to customers
returning, which raises revenues and profits
• Example: High-end hotels that use computers to
track customer preferences and use to monitor
and customize environment
– Intimacy with suppliers allows them to provide vital
inputs, which lowers costs
• Example: J.C.Penney’s information system which
links sales records to contract manufacturer
 The Role of Information Systems in Business Today

• Improved decision making

– More accurate data leads to better decisions
– Without accurate information:
• Managers must use forecasts, best guesses, luck
• Leads to:
– Overproduction, underproduction of goods and services
– Misallocation of resources
– Poor response times
• Poor outcomes raise costs, lose customers

19
 The Role of Information Systems in Business Today

• Competitive advantage
– Delivering better performance
– Charging less for superior products
– Responding to customers and suppliers in real
time
– Examples: Apple, Walmart, UPS

20
 The Role of Information Systems in Business Today

Survival:
• Businesses may need to invest in information systems out
of necessity; simply the cost of doing business.
• Keeping up with competitors
• Citibank’s introduction of ATMs
• Federal and state regulations and reporting
requirements
• Toxic Substances Control Act and the Sarbanes-Oxley
Act
Another aspect of IS Roles in business

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations
 Roles of IS in business
In management of modern organisations, the interest in ICT
results from the following major perspectives.
• Support of business processes and operations: Businesses use
computers to store and process sales, employee data, payment,
etc.
– The development in internet technology has enabled organisations to
link their operations in the supply chain
– To improve efficiency and effectiveness of business processes
– For workgroup collaboration
• Support of business decisions: the increase in the capacity of
organisations in handling and processing large volume of data
enabled managers to use IS to make operational and strategic
decisions.
• Competitive advantages: coping up with changes in their
environment to remain competitive
 Type of Jobs based on
Type of Decisions-Makings
• Structured
– Small independent travel agencies and real estate
agencies
– Routine & Repetitive
– Problems are predictable
– Problems can be solved by applying standard
solutions
 Type of Jobs based on
Type of Decisions-Makings
• Unstructured
– Management Consultant and negotiator
– Non-routine, Unpredictable, and Fuzzy
– Standard solutions are not applicable
– Solve problems by individual judgment
 Type of Jobs based on
Type of Decisions-Makings
• Semi-structured
– Production manager
– Combination of non-routine and predictable
(production Scheduling)
– Require a combination of standard solution
procedures and individual judgment
 Fundamental Competitive Strategies

Cost Leadership Strategy

Differentiation Strategy

Innovation Strategy

Growth Strategy

Alliance Strategy
 Fundamental Competitive Strategies…
• Cost leadership Strategy : Becoming a low-cost producer in the
industry allows the company to lower prices to customers.
• Use IT to substantially reduce the cost of business
processes.
• Use IT to lower the costs of customers or suppliers.

• Differentiation Strategy: Some companies create competitive

advantage by distinguishing their products on one or more
features important to their customers.
– Unique features or benefits may justify price differences
and/or stimulate demand.
• Develop new IT features to differentiate products and
services;
• Use IT features to focus products and services at selected
market niches.
• Innovation Strategy: Unique products or services or changes in
business processes can cause fundamental changes in the way an industry
does business.
– Create new products and services that include IT components.
– Develop unique new markets or market niches with the help of IT.
– Make radical changes to business processes with IT that dramatically
cut costs; improve quality, efficiency, or customer service; or shorten
time to market.

• Growth Strategy : Significantly expanding production capacity,

entering new global markets, diversifying into new areas, or
integrating related products or services can all be a springboard to
strong company growth.
– Use IT to manage regional and global business expansion.
– Use IT to diversify and integrate into other products and services.
• Alliance Strategy : Establishing new business linkages and
alliances with customers, suppliers, former competitors,
consultants, and others can create competitive advantage
– Use IT to create virtual organizations of business partners.
– Develop inter-enterprise information systems linked by the
Intranet and extranets that support strategic business
relationships with customers, suppliers, subcontractors,
and others.
 Why Organizations need
Information Systems
• Meeting Global Challenges
• Capturing opportunities in the Market Place
• Supporting Corporate Strategy
• Linking Departments Whose Functions are different
• Enhancing Worker Productivity
• Increasing Quality of Goods and Services
 1.3. Historical Perspective
• Electronic data processing (EDP),
• Transaction processing systems (TPS)
• Management information system
• Decision support systems (DSS)
• Executive information systems (EIS)
• Expert systems
• Knowledge management systems
• MIS to e-commerce
History of the Role of IS
1.4.Information systems model
 IS Activities
• Input of data resources: Data entry activities
• Processing of data into information
– E.g., calculate, compare, sort, classify, summarize
• Output of information products
– Messages, reports, forms and graphic images
• Storage of data resources: Data elements and databases
• Control of system performance:
– Monitoring and evaluating performance of the system
– Data access privileges
– Protecting data and computer facilities from theft,
destruction and abuse
 Information System Resources
A. Hardware resources – physical devices and materials
used in information processing. Computers and
calculators, sheets of paper, magnetic disks, filing
cabinets and paper trays.
B. Software resources – all sets of information processing
instructions. Ex. Programs, which are the sets of
operating instruction that direct & control computer
hardware; procedures: the sets of information
processing instruction needed by people.
C. People resources – include specialists (people who
develop and operate information systems) and end users
– Specialists (Ex.) system analysts, programmers, computer
operators;
– end users (Ex.): accountants, salespersons, engineers,
customers or managers or all who use an information system or
its products.
D. Network resources: Communications media,
communications processors, network access, control
software.
E. Data Resources – data & information constitute valuable
organizational resources
– example: supplier’s name, the sales transaction (on account/on
cash), customer’s name, total sales, total expenditures, etc., are
data resources.
 1.5. Types of Information Systems

Information Systems

Operations Management
Support Support
Systems Systems

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems
Other Categories of Information Systems

Expert
ExpertSystems
Systems

Knowledge
KnowledgeManagement
ManagementSystems
Systems

Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems

Strategic
StrategicInformation
InformationSystems
Systems––
1. Expert Systems: Knowledge-based systems that provide expert
advice and act as expert consultants to users. Examples: credit
application advisor, process monitor, and diagnostic maintenance
systems.

2. Knowledge Management Systems: are knowledge-based

information systems that support the creation, organization, and
dissemination of business knowledge to employees and managers
throughout a company. Examples: intranet access to best business
practices, sales proposal strategies, and customer problem
resolution systems.

3. Functional Business Systems: Support a variety of operational

and managerial applications in support of basic business functions
of a company. Examples: information systems that support
applications in accounting, finance, marketing, operations
4. Strategic Information Systems: are information
systems that support operations or management
processes that provide a firm with strategic products,
services, and capabilities for competitive advantage.
Examples: online stock trading, shipment tracking, and e-
commerce Web systems.

5. Cross-Functional Information Systems: are

information systems that are integrated combinations of
business information systems, thus sharing information
resources across the functional units of an organization
1.6.IS Knowledge Framework for
Business Professionals
 Information Systems Framework

• Development. Developing information system

solutions to business problems using a systems
approach to problem solving and application
development
• Management. The challenges and methods of
managing information systems technologies,
activities, and resources, including information
resource management, global IT management,
issues in planning and implementing change with
IT, and security and ethical challenges
• Foundation Concepts. Basic information systems concepts
and the operations, decision making, and strategic roles of
information systems.
• Technology. Major concepts, developments, and managerial
implications involved in computer hardware, software,
database management, and telecommunications
technologies. technologies used in computer-based
information systems
• Applications. How information technology is used in modern
information systems to support end user collaboration,
enterprise operations, managerial decision making, and
strategic advantage, and artificial intelligence and expert
systems.
 A Framework for Business End Users

Management of IS
Resources and Strategies

Development of IS
Solutions to Business Problems

Applications of IS
To Operations, Management, and Strategic Advantage

Technology IS
Hardware, Software, Networks , and Data Management

Foundation Concepts of IS
Fundamental Behavioral and Technical Concepts
In this model Information systems are characterized by:
• Business applications – where IS are used for operations,
management and competitive advantage
• Information Technology (IT) – including hardware, software
and the issues managers have in managing IT
• Foundational concepts – “fundamental, behavioral, technical,
business and managerial concepts” regarding the roles and
concepts of IS
• Management Challenges – the ability to effectively and
ethically manage IT for users and the enterprise
• Development processes – the processes required to develop
an IS
 1.7. STRUCTURE OF BIS -
BIS Structure may be described by variety of different
approaches, such as:
1.Physical components
2.IS Processing functions
3.Decision support (Structured & Un structured)
4.Levels of management activities
5.Organizational functions
 STRUCTURE OF BIS –
1. Physical components

1.Hardware
2.Software
3.Database
4.Operating personnel
5.Input and output
 STRUCTURE OF BIS –
2. Processing functions (What system does)

1.To process transactions

2.To maintain master files
3.To produce reports
4.To process enquiries
5.To process interactive support applications
 STRUCTURE OF BIS –
3. Based on output for users

1.Transaction documents – sales invoice, etc

2.Preplanned reports
3.Preplanned inquiries
4.Adhoc reports
5.User Machine dialog
 STRUCTURE OF BIS
4. Major types of IS to levels of management
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Different Kinds of Systems

Three main categories of information systems serve
different organizational levels:
1. Operational-level systems: support operational managers by
keeping track of the elementary activities and transactions of
the organization. It is to answer routine questions
2. Management-Level Systems: serve the monitoring,
controlling, decision-making, and administrative activities
of middle managers. Addressed “Are things working well?”
3. Strategic-level systems: help senior management tackle and
address strategic issues and long-term trends, both in the
firm and in the external environment.
 STRUCTURE OF BIS –
5. Based on Organizational functions

• Matrix of functional subsystems and

management activities such as strategic
planning, management control, operational
control, transaction processing
– Sales & Marketing subsystem
– Production subsystem
– Logistics subsystem
– Personnel subsystem
– Finance & accounting subsystem
– Material and inventory subsystem
– Information processing subsystem
Questions?
Questions
 CHAPTER-THREE

APPLICATION OF INFORMATION
SYSTEM IN MANAGEMENT LEVELS AND
FUNCTIONS
 3.1. Managerial Functions
• Managers create and maintain an business environments.
• A manager's job consists of planning, organizing, directing, and
controlling the resources of the organization.
• These resources include people, jobs or positions, technology,
facilities and equipment, materials and supplies, information, and
money.
• Managers work in a dynamic environment and must anticipate and
adapt to challenges; should be supported by information
technologies and use information systems
• The job of every manager involves what is known as the functions of
management: planning, organizing, directing, and controlling.
• These functions are goal-directed, interrelated and interdependent.
• They are sub-systems of the business system
 Four Functions of Management
Planning & Organizing
decision making Determining how best
Setting the organization’s to group activities and
goals and deciding how resources
best to achieve them

Controlling Leading
Monitoring and Motivating members of
correcting ongoing the organization to work
in the best interests of
activities to
the organization
facilitate goal attainment
 Levels of management and types of
manager
• Levels are Hierarchical arrangement of
managerial positions in an organization.
• The extent to which managers perform the
functions of management varies by level in
the management hierarchy.
• The levels can be expressed by using pyramid
shaped arrangement of an organizational
management structure.
 Managers and Information
• Different levels of managers for different
functions need different types of information
for different types of decisions
• Increased flexibility of IS allows for changes in
organizational structure
• Politics of information is an issue

Management Information Systems, 4 th

87
Edition
 Management functions
1. Monitoring information
• It provides a basis for problem finding and diagnosis
and may lead to action, but no action is specified by
the information itself.
2. Problem finding information
• The information is presented in a format that promotes
identification of problems.
3. Action information
• The information is presented with action specified or
implied.
4. Decision support
• The report, inquiry, result, or dialog is oriented to
performing analysis and making a decision. 88
 Level of Management and Types of
Information System
1. Strategic Management –Executive information
system, Decision support system
2. Tactical management- Decision support system,
Expert system, information reporting system
3. Operation management- Information reporting
system, Office automation system, process control
system
4. Subordinates- Office automation system,
transactional processing system, process control
system
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Major Types of Systems

1. Transaction Processing Systems (TPS)

2. Management Information Systems (MIS)

3. Decision-Support Systems (DSS)

4. Executive Support Systems (ESS)

MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Four Major Types of Information Systems
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

1. Transaction Processing Systems (TPS)

• Basic business systems that serve the operational level

• A computerized system that performs and records the
daily routine transactions necessary to the conduct of the
business.
• TPS are also major producers of information for the other
types of systems.
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Typical Applications of TPS

 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

2. Management Information Systems (MIS)

Management level:serve the management level of the
organization, providing managers with reports or with on-
line access to the organization's current performance and
historical records.
• They are oriented almost exclusively to internal, not
environmental or external, events.
• MIS primarily serve the functions of planning, controlling,
and decision making at the management level.
• They depend on underlying transaction processing systems
for their data.
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

2. Management Information Systems (MIS)(Continued)

•Inputs: High volume transaction level data

•Processing: Simple models

•Outputs: Summary reports

•Users: Middle managers

Example: Annual budgeting

 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

3. Decision-Support Systems (DSS)

•DSS help managers make decisions that are unique, rapidly
changing, and not easily specified in advance.
•They address non-routine problems DSS use internal
information from TPS and MIS bring in information from
external sources, such as product prices of competitors.
•DSS have more analytical power than other systems.
•They are built explicitly with a variety of models to analyze data
•DSS include user-friendly software.
•DSS are interactive; the user can change assumptions, ask new
questions
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

Decision-Support Systems (DSS)

Management level

• Inputs: Transaction level data

• Processing: Interactive

• Outputs: Decision analysis

• Users: Professionals, staff

Example: Contract cost analysis

 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

4. EXECUTIVE SUPPORT SYSTEMS (ESS):

•ESS serve the strategic level of the organization.
•They address long term non-routine decisions requiring
judgment, evaluation, and insight because there is no agreed-
on procedure for arriving at a solution.
•ESS are designed to incorporate data about external events
such as new tax laws or competitors, but they also draw
summarized information from internal MIS and DSS.
 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

EXECUTIVE SUPPORT SYSTEMS (ESS):

• Inputs: Aggregate data

• Processing: Interactive

• Outputs: Projections

• Users: Senior managers

Example: 5 year operating plan

 MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS

EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)

• Top Level Management

• Designed to the individual senior manager

• Ties CEO to all levels

• Very expensive to keep up

• Extensive support staff

Questions
 CHAPTER-FOUR

APPLICATION OF INFORMATION
SYSTEMS IN FUNCTIONAL AREAS OF
MANAGEMENT
 Outputs of MIS in functional areas

Outputs: basically, hard and/or softcopy reports

– Scheduled reports
– On-demand reports
– Exception reports
– Key-indicator (business fundamentals)
 Conti…
MIS- for three decision models
– Optimization
• Find the best solution (either maximization or
Minimization)
– Satisficing
• Find a solution which meets certain criteria
(Criteria based solution)
– Heuristics
• Find a solution which meets certain Rule (Rule-
based solution generation)
 Problems with MIS
• MIS cannot provide management with the
information they need due to the following reasons:
– Lack of Management Direction
– Lack of management knowledge of computers
– Lack of top management support
– Lack of management participation in MIS design
– Management do not always know what information they
need
– IT personnel often do not know enough about
management to produce relevant information for the
managers they serve
 Functional Business Systems

• Some Information Systems are cross-functional

– Example: A TPS can affect several different business areas:
Accounting, Human Resources, Production, etc.
• Some Information Systems concentrate on one particular
business area (Accounting for example).
Functional
Business
Areas
MAJOR FUNCTIONS OF SALE & MARKETING
INFORMATION SYSTEMS:
• Sales Management;
• Market Research;
• Promotion;
• Pricing;
• New Products Designing and packaging;
• Storage and warehousing;
• Transportation and distribution;
• Grading and Standardizing.
 Marketing Systems
• Interactive Marketing Systems
• Sales Force Automation Systems
• Customer Relationship Management Systems
• Market Research and Forecasting Systems
• Advertising and Promotion Systems
• Product Management Systems
• Sales Management Systems
• Sales Order Info System
• Pricing System
 HR Systems

OTHER APPLICATION SYSTEMS:

Manpower planning, Employee Records; Career Path
Systems; other Benefit Systems.
MAJOR FUNCTIONS OF ACCOUNTING
INFORMATION SYSTEMS:
• General Ledger
• Billing
• Cost Accounting

MAJOR APPLICATION SYSTEMS:

• General Ledger system
• Accounts Receivable / Payables system
Major Functions of Manufacturing & Production
Information Systems:
• Scheduling; Purchasing; Shipping / Receiving;
Engineering; Operations

MAJOR APPLICATION SYSTEMS:

• Materials Resource Planning Systems;
• CAM: Computer Aided Manufacturing system
• CIM: Computer Integrated Manufacturing system
• Purchase Order Control Systems;
• Process control systems
• Engineering Systems;
• Quality Control Systems
• Logistic and transportation system
MAJOR FUNCTIONS OF FINANCE INFORMATION
SYSTEMS:
• Budgeting
• Costing
• Reporting
• Auditing
• Fund Management
MAJOR APPLICATION SYSTEMS:
• Cash flow forecasting system
• Budgeting System
• Funds Management Systems
• Financial Reporting system
Thank you
 Chapter 5
Management
information
system
Development
 Process of System Development
• System development process – a set of activities,
methods, best practices, deliverables, and automated tools
that stakeholders use to develop and continuously improve
information systems and software
• System development methodology – a formalized
approach to the systems development process; it is, in
simple terms, a set of steps, guidelines, activities and/or
principles to follow in a particular process situation.
• Process refers to a stage all systems naturally undergo,
whereas, a methodology refers to an approach invented
by humans to manage the events naturally occurring in the
process.
 Success & Failure
• Reasons for Success • Reasons for Failure
– User Involvement – Lack of user input
– Executive management support – Incomplete requirements
– Clear requirements – Changing requirements and
– Proper planning specifications
– – Lack of executive support
Realistic expectations
– Lack of technical skills
 Approaches to Systems Development
• Process-Oriented Approach
– Focus is on flow, use and transformation of data in an
information system
– Involves creating graphical representations such as data
flow diagrams and charts
– Data are tracked from sources, through intermediate steps
and to final destinations
– Natural structure of data is not specified
 Approaches to Systems Development
• Data-Oriented Approach
– Depicts ideal organization of data, independent of
where and how data are used
– Data model describes kinds of data and business
relationships among the data
– Business rules depict how organization captures
and processes the data
 Approaches to Systems Development

Which is better, the Process Approach or the Data Approach?

Process Approach:
“Let’s look at all of our processes.
Processes take precedence over
data. Get the processes correct
first. Then we’ll address what
data is important.”

Data Approach:
“Forget the processes, let’s look
at the data. Data comes first. Get
the data correct, then see how
the processes actually use the
data.”
 Phases of the Systems Development Life Cycle

1. Project Identification , Selection and

planning
– Main Activities
• Formal preliminary investigation of the problem at hand
• Identification of need, scope, and review request
• Prioritization the request and translation of need into a
development schedule
– Helps organization to determine whether or not
resources should be dedicated to a project.
– Finally allocate resource and form development
team/steering committee
• It Presents reasons why system should or should not be
developed by the organization
 Systems Development Life Cycle
2. Analysis
– Study of current procedures and information
systems
• Determine detail requirements
– Study current system
– Structure requirements and eliminate redundancies
• Generate alternative designs
• Compare alternatives
• Recommend best alternative
• Conduct feasibility study
• analysis how the system works
 Analysis Phase
• Candidate solutions evaluated in terms of:
– Technical feasibility – Is the solution technically practical? Does
our staff have the technical expertise to design and build this
solution?
– Operational feasibility – Will the solution fulfill the users’
requirements? To what degree? How will the solution change the
users’ work environment? How do users feel about such a
solution? simple to operate, adaptable to various operational
conditions
– Economic feasibility – Is the solution cost-effective?
– Schedule feasibility – Can the solution be designed and
implemented within an acceptable time?
– Risk feasibility – What is the probability of a successful
implementation using the technology and approach?
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 Systems Development Life Cycle
3. Design
• Acquiring hardware and software
• Develop detailed system
• Database designing
• Input-output designing
• Networking designing
 Systems Development Life Cycle
• Design
– Logical Design
• Concentrates on business aspects of the system
– Physical Design
• Technical specifications
Logical design – the translation of business user requirements into a
system model that depicts only the business requirements and not any
possible technical design or implementation of those requirements.
Common synonyms include conceptual design and essential design.
Physical design – the translation of business user requirements into a
system model that depicts a technical implementation of the users’
business requirements. Common synonyms include technical design or
implementation model.
• System model – a picture of a system that
represents reality or a desired reality. System
models facilitate improved communication
between system users, system analysts,
system designers, and system builders.
 4. Implementation

Implementation
Hardware and software installation
Data base and network Installation
Testing
Develop Program (‘wh” Questions)
User Training
Documentation
 Implementation phase

Types of test
Three Implementation Options
old new
1. Direct cutover

old

2. Parallel
new

old new
dept or component 1
3.Phased dept or component 2
dept or component 3
dept or component 4
 Systems Development Life Cycle
5. Maintenance
• Monitor system performance
• Perform maintenance activities
• System changed to reflect changing conditions
• System obsolescence
• Auditing
Questions?