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As the Dilbert cartoon suggests, it is always a good idea to know whether a project fits the

company’s overall strategy. You will learn more about the relationship between systems projects

and corporate strategies in the systems planning phase.

Systems planning is the first of five phases in the systems development life cycle. After an

introduction to systems analysis and design, you will learn how systems projects get started, how

to evaluate a project proposal to determine its feasibility, and how to use project management

tools and techniques. The deliverable for this phase is the preliminary investigation report.

1 DELIVERABLE

Preliminary investigation report

TOOLKIT SUPPORT

Communications and financial

analysis tools

VIDEO LEARNING SESSIONS

Project Management Concepts

SYSTEMS PLANNING

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Chapter 1 Introduction to Systems Analysis and Design

1CHAPTER Chapter 1 is the first of three chapters in the systems

planning phase. This chapter describes the role of

information technology in today’s dynamic business

environment. In this chapter, you will learn about the

development of information systems, systems analysis and

design concepts, and various systems development

methods. This chapter also describes the role of the

information technology department and its people.

Introduction to Systems Analysis and Design

O B J E C T I V E S

When you finish this chapter, you will be able to:

• Describe the impact of information technology on business strategy and success

• Define an information system and describe its components

• Explain how profiles and models can represent business functions and operations

• Explain how the Internet has affected business strategies and relationships

• Identify various types of information systems and explain who uses them

• Distinguish between structured analysis, object-oriented analysis, and agile methods

• Compare the traditional waterfall model with agile methods and models

• Apply five basic guidelines for systems development

• Discuss the role of the information technology department and the systems analysts who work there

INTRODUCTION

The headlines in Figure 1-1 offer dramatic examples of how information technology affects our society. Companies use information as a weapon in the bat- tle to increase productivity, deliver quality products and services, maintain customer loyalty, and make sound decisions. In a global economy with intense competition, information technology can mean the difference between success and failure.

FIGURE 1-1 These headlines show the enormous impact of

information technology in the twenty-first century.

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Introduction 3

Phase 1 Systems Planning

FIGURE 1-2 Typical introductory tasks for systems projects

CHAPTER INTRODUCTION CASE: Mountain View College Bookstore

Background: Mountain View College is located in New England. The school has grown rapidly and now has 8,000 students at three campuses, each with a branch bookstore. Wendy Lee, manager of college services, is responsible for all bookstore operations. Wendy wants a new information system that will increase efficiency and improve customer service.

As the case begins, Tina Allen, a systems analyst in the college’s Information Technology department, is talking with David Conroe. David is majoring in information systems at Mountain View College and is earning credit toward his degree by working part-time as a student intern.

Participants: Tina and David Location: Tina’s office, 10 a.m. Monday morning, August 22, 2011 Project status: Initial discussion Discussion topics: Basic systems development concepts

Tina: Welcome aboard, David.

David: I’m glad to be here. What’s on the agenda?

Tina: Well, there’s been some talk about a new bookstore information system. Wendy says nothing is definite yet, but she suggested that we should get ready.

David: So we start by learning about the bookstore business?

Tina: Yes, the best system in the world isn’t worth much unless it supports business and information needs. But let’s not get ahead of ourselves. First, we need to talk about business information systems in general. Then we’ll build a business model so we can understand the specific operations and processes at the bookstore. We’ll also discuss systems analysis and design tools and techniques. Let’s start with an overview of informa- tion systems and their characteristics.

David: That makes sense. What about the basic systems analysis techniques you mentioned? Can you tell me a bit more?

Tina: On this project, we’ll use what’s called a structured method, which is based on the concept of a systems development life cycle, or SDLC for short. I’ll also explain object-oriented and agile methods, and you’ll learn about modeling tools and techniques. We'll follow a set of basic system development guidelines as we go along.

David: How does the SDLC work?

Tina: The SDLC is like constructing a building. First, you would list specific objectives for the project. Then, you might hire an architect to create drawings that show the finished building. Later, you’d need detailed blue- prints for the construction workers. When the building is done, you would check everything, turn it over to the new owners, and make sure they’re happy with the results.

David: And that’s how we’ll develop new information systems?

Tina: It sure is. We’ll use a program called Microsoft Project to create a list of tasks we can work on.

THE IMPACT OF INFORMATION TECHNOLOGY

Information technology (IT) refers to the combination of hardware, software, and services that people use to manage, communicate, and share information. Although fictitious, the bold headlines in Figure 1-1 show the huge impact of IT on our society.

More than ever, business success depends on information technology. IT is driving a new digital economy, where advances in hardware, software, and connectivity can pro- vide enormous benefits to businesses and individuals. Although economic trends affect IT spending levels, most firms give IT budgets a high priority, in good times or bad. The reason is simple — during periods of growth, companies cannot afford to lag behind the IT curve. Conversely, when the economy slows down, firms often use IT to reduce operating costs and improve efficiency.

The Future

If you ask a group of IT professionals to name a company that has been successful for over 100 years, the answer probably would be IBM. As its name suggests, International Business Machines was a major supplier of typewriters and data processing equipment long before the computer era. As a longtime IT leader, IBM’s predictions deserve close attention.

The company that became IBM was founded in 1896 by Herman Hollerith, who invented the punched card system shown in Figure 1-3. Hollerith wanted to analyze the 1890 census data, and his idea was brilliant. First, letters and numbers were coded by being punched into specific locations on a card. His machines then used a simple

Chapter 1 Introduction to Systems Analysis and Design

The Impact of Information Technology

To learn more about the future of IT, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate The Future of IT link.

FIGURE 1-3 Several years before the Wright brothers made their first flight, Herman Hollerith devised a

machine that could manage data stored on punched cards.

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The Impact of Information Technology 5

Phase 1 Systems Planning

FIGURE 1-4 The 2009 IBM Annual Report points out three key issues that affect the company’s strategy and operational plans.

electrical circuit to detect the position of the holes and recognize the characters. This concept transformed a set of punched cards into what we would call a database, which could be sorted, queried, and printed. Punched card technology revolutionized data storage, and was the main form of information management well into the 1960s and beyond. The concept still is used with some types of voting forms and other documents.

Today, IBM is a global giant with a half-million employees, numerous patents, and more Nobel Prize winners than any other IT firm. In its 2009 Annual Report, IBM chair- man Samuel J. Palmisano noted three issues that will shape the future of IT and guide the company’s strategy. As shown in Figure 1-4, these include changes in the world, changes in technology, and changes in client demand. IT professionals should study these trends and prepare for the future. The table in Figure 1-5 on the next page summarizes IBM’s vision and how it might affect the IT industry and the people who work in it.

Chapter 1 Introduction to Systems Analysis and Design

The Impact of Information Technology

Systems Development

Business information systems are developed by people who are technically qualified, business-oriented, and highly motivated. Successful developers also must be good communicators with strong analytical and critical thinking skills.

TOPIC IBM’S VISION

HOW WILL THIS AFFECT

IT JOBS GENERALLY?

WHAT WILL BE THE

IMPACT ON FUTURE

SYSTEMS ANALYSTS?

Changes in the

World

IBM foresees a new kind

of corporation: a globally

integrated enterprise, driven

by the Internet and free of

traditional trade barriers.

Language skills will be

extremely important — the

more the better. Diversity

will open new opportunities,

and developing countries

will be able to compete

more effectively. Where the

physical work is done will be

less important than how the

virtual company deploys its

assets.

Systems analysts will be

affected by global trends.

They will probably work for

more firms in their careers,

be exposed to more

information, and see greater

change than at any time in

history.

Changes in

Technology

increase in computing power,

new IT models will include

networks with smart,

interconnected devices such

as communication systems,

automobiles, entertainment,

highway infrastructure, and

power grids.

Technical skills will be in

demand, but so will the

ability to “think outside the

box.” New technology will

drive major changes in how

personal and business

services are provided. Firms

will compete in a global

marketplace that will reward

innovation, creativity, and

positive societal outcomes.

The systems analyst will

need to have both business

savvy and technical skills. He

or she will have a unique

opportunity to work at the

intersection of business

operations and information

technology. The synergy

between technology growth

and globalization will create

jobs and opportunities for

people with the right skills.

Changes in

Client Demand

In the face of worldwide

competition and enormous

technology change, firms will

stress innovation, vision, and

the ability to adapt rapidly.

Every aspect of their

business plans, processes, and

operations will be affected.

Successful IT workers must

be able to innovate, analyze,

and communicate effectively.

The winners will be those

who can adapt to change and

embrace new technology

and new ways of doing

business.

Students preparing for the

workplace of tomorrow

will need a strong skill set.

Systems analysts will be

expected to bring

communications, modeling,

problem-solving, decision-

making, and critical thinking

skills to the workplace —

and to be aware of ethical

issues that might affect them.

FIGURE 1-5 If IBM's vision is accurate, what will it mean to IT professionals?

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Phase 1 Systems Planning

Information System Components

Systems Analysis and Design

Systems analysis and design is a step-by-step process for developing high-quality information systems. An information system combines information technology, people, and data to support business require- ments. For example, information systems handle daily business trans- actions, improve company produc- tivity, and help managers make sound decisions. The IT department team includes systems analysts who plan, develop, and maintain infor- mation systems.

With increasing demand for tal- ented people, employment experts predict a shortage of qualified appli- cants to fill IT positions. Many com- panies list employment opportunities on their Web sites, as shown in Figure 1-6.

Who Develops Information Systems?

Traditionally, a company either developed its own information systems, called in-house applications, or purchased systems called software packages from outside vendors. Today, the choice is much more complex. Options include Internet-based application services, outsourcing, custom solutions from IT consultants, and enterprise-wide soft- ware strategies.

Regardless of the development method, launching a new information system involves risks as well as benefits. The greatest risk occurs when a company tries to decide how the system will be constructed before determining what the system needs to do. Instead of putting the cart before the horse, a company must begin by outlining its business needs and identifying possible IT solutions. Typically, this important work is performed by systems analysts and other IT professionals. A firm should not consider implementa- tion options until it has a clear set of objectives. Later on, as the system is developed, a systems analyst’s role will vary depending on the implementation option selected.

INFORMATION SYSTEM COMPONENTS

A system is a set of related components that produces specific results. For example, specialized systems route Internet traffic, manufacture microchips, and control complex entities like the Mars Rover shown in Figure 1-7. A mission-critical system is one that is vital to a company’s operations. An order processing sys- tem, for example, is mission-critical because the company can- not do business without it.

Every system requires input data. For example, your computer receives data when you press a key or click a menu command. In an information system, data consists of basic facts that are the system’s raw material. Information is data that has been trans- formed into output that is valuable to users.

FIGURE 1-6 HP invites potential candidates to search for jobs on its Web site.

FIGURE 1-7 Imagine the complexity of the

systems used to launch and operate the Mars Rover.

Phase 1 Systems Planning

An information system has five key components, as shown in Figure 1-8: hardware, software, data, processes, and people.

Hardware

Hardware consists of everything in the physical layer of the information system. For example, hardware can include servers, workstations, networks, telecommunications equipment, fiber-optic cables, mobile devices, scanners, digital capture devices, and other technology-based infrastructure. As new technologies emerge, manufacturers race to market the innovations and reap the rewards.

Hardware purchasers today face a wide array of technology choices and decisions. In 1965, Gordon Moore, a cofounder of Intel, predicted that the number of transistors on an integrated circuit would double about every 24 months. His concept, called Moore’s Law, has remained valid for more than 50 years. Fortunately, as hardware became more powerful, it also became much less expensive. Large businesses with thousands or millions of sales transactions require company- wide information systems and powerful servers, such as those shown in Figure 1-9.

Software

Software refers to the programs that control the hardware and produce the desired information or results. Software consists of system software and application software.

System software manages the hardware components, which can include a single workstation or a global network with many thousands of clients. Either the hardware manu- facturer supplies the system software or a company pur- chases it from a vendor. Examples of system software include the operating system, security software that protects the computer from intrusion, device drivers that communi- cate with hardware such as printers, and utility programs that handle specific tasks such as data backup and disk

management. System software also controls the flow of data, provides data security, and manages network operations. In today’s interconnected business world, network software is vitally important.

Application software consists of programs that support day-to-day business func- tions and provide users with the information they require. Application software can serve one user or thousands of people throughout an organization. Examples of com- pany-wide applications, called enterprise applications, include order processing systems, payroll systems, and company communications networks. On a smaller scale, individual users increase their productivity with tools such as spreadsheets, word processors, and database management systems.

Application software includes horizontal and vertical systems. A horizontal system is a system, such as an inventory or payroll application, that can be adapted for use in many different types of companies. A vertical system is designed to meet the unique requirements of a specific business or industry, such as a Web-based retailer, a medical practice, or a video chain.

Chapter 1 Introduction to Systems Analysis and Design

Information System Components

FIGURE 1-9 Multiple servers provide the power

and speed that modern IT systems require.

People

Hardware

Software

Data

Processes

FIGURE 1-8 The five main components of

an information system.

To learn more about Moore’s Law, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Moore’s Law link.

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Phase 1 Systems Planning

Information System Components

Most companies use a combination of software that is acquired at various times. When planning an information system, a company must consider how a new system will interface with older systems, which are called legacy systems. For example, a new human resources system might need to exchange data with an older payroll application.

Data

Data is the raw material that an information system transforms into useful information. An information system can store data in various locations, called tables. By linking the tables, the system can extract specific information. Figure 1-10 shows a payroll system that stores data in four separate tables. Notice that the linked tables work together to supply 19 different data items to the screen form. Users, who would not know or care where the data is stored, see an integrated form, which is their window into the payroll system.

Phase 1 Systems Planning

FIGURE 1-10 In a typical payroll system, data is stored in separate tables, which are joined

together to form a database that contains all the information.

Processes

Processes describe the tasks and business functions that users, managers, and IT staff members perform to achieve specific results. Processes are the building blocks of an information system because they represent actual day-to-day business operations. To build a successful information system, analysts must understand business processes and document them carefully.

People

People who have an interest in an information system are called stakeholders. Stakeholders include the management group responsible for the system, the users (sometimes called end users) inside and outside the company who will interact with the system, and IT staff members, such as systems analysts, programmers, and network administrators who develop and support the system.

Each stakeholder group has a vital interest in the information system, but most experienced IT professionals agree that the success or failure of a system usually depends on whether it meets the needs of its users. For that reason, it is essential to understand user requirements and expectations throughout the development process.

UNDERSTAND THE BUSINESS

IT professionals must understand a company’s operations to design successful systems. Each business situation is different. For example, a retail store, a medical practice, and a hotel chain all have unique information systems requirements. Systems analysts use a process called business process modeling to represent company operations and informa- tion needs. Business process modeling requires a business profile and a series of models that document business processes.

As the business world changes, systems analysts can expect to work in new kinds of companies that require innovative IT solutions, including Web-based systems that serve customers and carry out online transactions with other businesses.

Business Profile

A business profile is an overview of a company’s mission, functions, organization, products, services, customers, suppliers, competitors, constraints, and future direction. Although much of this information is readily available, a systems analyst usually needs to do additional research and fact-finding. A business profile is the starting point for the modeling process.

Business Process

A business process is a specific set of transactions, events, and results that can be described and documented. A business process model (BPM) graphically displays one or more business processes, such as handling an airline reservation, filling a product

order, or updating a customer account. The example in Figure 1-11 shows a simple model that includes an event, three processes, and a result.

A rough sketch might be sufficient to document a simple business process. For complex operations, how- ever, analysts apply computer-based modeling tools that use a standard language called business process modeling notation (BPMN). BPMN includes various shapes and symbols to represent events, processes, and workflows, as shown in the example in Figure 1-12. Modeling tools include multi-purpose graphical applications, such as Microsoft Visio, and computer-aided software engineer- ing programs such as Visible Analyst. Business process modeling is described in more detail in Part B of the Systems Analyst’s Toolkit that follows Chapter 12.

Chapter 1 Introduction to Systems Analysis and Design

Understand the Business

Event:

Receive Sales Order

BUSINESS MODEL: HANDLE SALES ORDER

Result:

Completed Sales Order

Process:

Enter Customer Order

Data

Process:

Check Customer Status

Process:

Verify Customer Credit

FIGURE 1-11 A simple business model might consist

of an event, three processes, and a result.

TOOLKIT TIME

Business process modeling tools, which are described in Part B of the System’s Analyst’s Toolkit, can help you document and describe business operations. To learn more about these tools, turn to Part B of the four-part Toolkit that follows Chapter 12.

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Understand the Business 11

Phase 1 Systems Planning

FIGURE 1-12 This sample uses business process modeling notation (BPMN) to represent events, processes,

and workflow.

FIGURE 1-14 IBM’s 2009 report shows a sharp increase in profitable

business segments such as software and services, and a decline in profit from

hardware sales.

Source: IBM Annual Report, 2009.

New Kinds of Companies

Traditionally, IT companies were identified as product-oriented or service-oriented. Product-oriented firms manufactured computers, routers, or the microchips shown in Figure 1-13, whereas service-oriented companies included vendors, software developers, and service providers.

Today, those distinctions are gone. Most successful IT companies offer a mix of prod- ucts, services, and support. Value-added services such as consulting, financing, and technical support can be more profitable than hardware. In a striking example of this trend, IBM stated in its 2009 annual report that software, services, and financing produced 93 percent of pre-tax income, while hardware accounted for only 7 percent. Even more interesting is the contrast shown in Figure 1-14. Over a nine-year period, hardware profits declined by two-thirds, while software, services and financing income grew rapidly.

FIGURE 1-13 Intel is an example of a

product-oriented company that

manufactures technology products, such

as the microchip shown here.

Chapter 1 Introduction to Systems Analysis and Design

Understand the Business

The newest kind of company is the Internet-dependent firm, often described as a dot-com (.com) company because its primary business depends on the Internet rather than a traditional business channel. Google, Yahoo!, Amazon, and eBay are examples of pure dot-com companies. At the other end of the scale are traditional firms, some- times called brick-and-mortar companies because they conduct business primarily from physical locations. Most successful brick-and-mortar firms — such as Lowe’s, Target, and Wal-Mart — have expanded their Web-based marketing channels to increase sales and serve customers better. This strategy combines the convenience of online shopping and the alternative of hands-on purchasing for customers who prefer that option.

Today, with rising fuel prices and an eye on expenses, shopping at home is more popu- lar than ever. In addition to physical products, consumers also buy many types of digital content. As shown in Figure 1-15, Netflix is an example of a Web-based firm that has seen a sharp increase in sales. Some of the growth came at the expense of brick-and-mortar competitors. Perhaps more importantly, Netflix has been a leader in delivering stream- ing Internet content that can displayed on large screen TV sets. The company claims to provide maximum convenience and value to consumers of home-based entertainment.

FIGURE 1-15 Netflix offers an Internet portal for digital content that can be viewed on large screen TVs.

CASE IN POINT 1.1: CLOUD NINE FINANCIAL ADVISORS

Cloud Nine provides its clients with a monthly newsletter that offers recommendations about stocks to buy or sell. Doug Layton, Cloud Nine’s president, has asked your opinion on whether dot-com stocks might be good investments for the future. He specifically mentioned Google, eBay, Amazon.com, and Yahoo!, but he said you could suggest other companies. Doug wants you to do some Internet research to learn more about these Web-based companies and their future prospects. You can use a search engine, or start by visiting the Web sites of publications such as Forbes, Fortune Magazine, Business Week, or The Wall Street Journal, among others.

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Phase 1 Systems Planning

Impact of the Internet

IMPACT OF THE INTERNET

Internet-based commerce is called e-commerce (electronic commerce) or I-commerce (Internet commerce).

Internet-based systems involve various hardware and software designs, but a typical model is a series of Web pages that provides a user interface, which communicates with database management software and a Web-based data server. As Internet-based com- merce continues to grow, career opportunities will expand significantly for IT profes- sionals such as Web designers, database developers, and systems analysts. The surge in demand will come from dot-com companies large and small, and from mainstream retailers.

E-commerce includes two main sectors: B2C (business-to-consumer) and B2B (business-to-business).

B2C (Business-to-Consumer)

Using the Internet, consumers can go online to purchase an enormous variety of products and services. This new shopping environment allows customers to do research, compare prices and features, check availability, arrange delivery, and choose payment methods in a single convenient session. Many companies, such as airlines, offer incentives for online transactions because Web-based processing costs are lower than traditional methods. By making flight information available online to last-minute travelers, some airlines also offer special discounts on seats that might otherwise go unfilled.

B2C commerce is changing traditional business models and creating new ones. For example, a common business model is a retail store that sells a product to a customer. To carry out that same transaction on the Internet, the company must develop an online store and deal with a totally different set of marketing, advertising, and profit- ability issues. Some companies have found new ways to use estab- lished business models. For example, eBay.com has transformed a tradi- tional auction concept into a popular and suc- cessful method of selling goods and services.

In the e-commerce battles, the real winners will be online consumers, who will have access to more information, better choices, and an enhanced shopping experience. For example, in addition to the traditional offerings, the Lowe’s Web site shown in Figure 1-16 includes a gift advisor, buying guides, how-to clinics, and interactive design tools.

Phase 1 Systems Planning

FIGURE 1-16 Lowe’s is an example of a mainstream retailer that effectively combines traditional

and online marketing strategies.

To learn more about electronic commerce, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Electronic Commerce link.

B2B (Business-to-Business)

Although the business-to-consumer (B2C) sector is more familiar to retail customers, the volume of business-to-business (B2B) transactions is many times greater. Industry observers predict that B2B sales will increase sharply as more firms seek to improve efficiency and reduce costs.

Initially, electronic commerce between two companies used a data sharing arrange- ment called electronic data interchange (EDI). EDI enabled computer-to-computer data transfer, usually over private telecommunications lines. Firms used EDI to plan produc- tion, adjust inventory levels, or stock up on raw materials using data from another com- pany’s information system. As B2B volume soared, the development of extensible markup language (XML) enabled company-to-company traffic to migrate to the Internet, which offered standard protocols, universal availability, and low communication costs. XML is a flexible data description language that allows Web-based communication between different hardware and software environments.

Because it allows companies to reach the global marketplace, B2B is especially important to smaller suppliers and customers who need instant information about market prices and availability. On an industry-wide scale, many B2B sites exist where buyers, sellers, distributors, and manufacturers can offer products, submit specifica- tions, and transact business. This popular form of online B2B interaction is called supply chain management (SCM), or supplier relationship management (SRM). Figure 1-17 shows a software vendor that offers SCM solutions designed to reduce supply chain costs.

Chapter 1 Introduction to Systems Analysis and Design

Impact of the Internet

To learn more about XML, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Extensible Markup Language link.

FIGURE 1-17 Infor is a software vendor that offers SCM solutions based on real-time supplier collaboration.

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Phase 1 Systems Planning

Business Information Systems

BUSINESS INFORMATION SYSTEMS

In the past, IT managers divided systems into categories based on the user group the system served. Categories and users included office systems (administrative staff), opera- tional systems (operational personnel), decision support systems (middle-managers and knowledge workers), and executive information systems (top managers).

Today, traditional labels no longer apply. For example, all employees, including top managers, use office productivity systems. Similarly, operational users often require deci- sion support systems. As business changes, information use also changes in most compa- nies. Today, it makes more sense to identify a system by its functions and features, rather than by its users. A new set of system definitions includes enterprise computing systems, transaction processing systems, business support systems, knowledge management systems, and user productivity systems.

Enterprise Computing

Enterprise computing refers to information systems that support company-wide operations and data management requirements. Wal-Mart’s inventory control system, Boeing’s production control system, and Hilton Hotels’ reservation system are examples of enterprise computing systems. The main objective of enterprise computing is to integrate a company’s primary functions (such as production, sales, services, inventory control, and accounting) to improve efficiency, reduce costs, and help managers make key decisions. Enterprise computing also improves data security and reliability by imposing a company-wide framework for data access and storage.

In many large companies, applications called enterprise resource planning (ERP) systems provide cost-effective support for users and managers throughout the company. For example, a car rental company can use ERP to forecast customer demand for rental cars at hundreds of locations.

By providing a company-wide computing environment, many firms have been able to achieve dramatic cost reductions. Other companies have been disappointed in the time, money, and commitment necessary to implement ERP successfully. A potential disadvantage of ERP is that ERP systems generally impose an overall structure that might or might not match the way a company oper- ates. ERP is described in more detail in Chapter 7, which discusses system development strategies.

Because of its growth and potential, many hardware and software vendors target the enterprise computing market and offer a wide array of products and services. Figure 1-18 shows a Web site that is dedicated to marketing enterprise computing software and solutions.

Transaction Processing

Transaction processing (TP) systems process data generated by day-to-day business operations. Examples of TP systems include customer order processing, accounts receivable, and warranty claim processing.

Phase 1 Systems Planning

FIGURE 1-18 Ciber offers ERP applications and consulting, using software from leading

software providers.

To learn more about enterprise resource planning, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Enterprise Resource Planning link.

TP systems perform a series of tasks whenever a specific transaction occurs. In the example shown in Figure 1-19, a TP system verifies customer data, checks the customer’s credit status, posts the invoice to the accounts receivable sys- tem, checks to ensure that the item is in stock, adjusts inven- tory data to reflect a sale, and updates the sales activity file. TP systems typically involve large amounts of data and are mission-critical systems because the enterprise cannot func- tion without them.

TP systems are efficient because they process a set of transaction-related commands as a group rather than individ- ually. To protect data integrity, however, TP systems ensure that if any single element of a transaction fails, the system does not process the rest of the transaction.

Business Support

Business support systems provide job-related information support to users at all levels of a company. These systems can analyze transactional data, generate information needed to manage and control business processes, and pro- vide information that leads to better decision-making.

The earliest business computer systems replaced manual tasks, such as payroll processing. Companies soon realized that computers also could produce valuable information. The new systems were called management information systems (MIS) because managers were the primary users. Today, employees at all levels need information to perform their jobs, and they rely on information systems for that support.

A business support system can work hand in hand with a TP system. For example, when a company sells merchandise to a customer, a TP system records the sale, updates the customer’s balance, and makes a deduction from inventory. A related business sup- port system highlights slow- or fast-moving items, customers with past due balances, and inventory levels that need adjustment.

To compete effectively, firms must collect production, sales, and ship- ping data and update the company-wide business support system immedi- ately. The newest development in data acquisition is called radio frequency identification (RFID) technology, which uses high-frequency radio waves to track physical objects, such as the item shown in Figure 1-20. RFID’s dramatic growth has been fueled by companies like Wal-Mart, which requires its suppliers to add RFID tags to all items.

An important feature of a business support system is decision support capability. Decision support helps users make decisions by creating a computer model and applying a set of variables. For example, a truck fleet dispatcher might run a series of what-if scenarios to determine the impact of increased shipments or bad weather. Alternatively, a retailer might use what-if analysis to determine the price it must charge to increase profits by a specific amount while volume and costs remain unchanged.

Knowledge Management

Knowledge management systems are called expert systems because they simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied.

Chapter 1 Introduction to Systems Analysis and Design

Business Information Systems

Update Sales Activity File

Adjust Inventory

Data

Check In-Stock Status

Post to Accounts

Receivable

Verify Customer Data

Check Credit Status

S A L E S

T RA N S AC T I O N

FIGURE 1-19 A single sales transaction consists of six

separate tasks, which the TP system processes as a group.

To learn more about RFID, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the RFID link.

FIGURE 1-20 Retailers use RFID tags

for security and inventory control.

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Phase 1 Systems Planning

Business Information Systems

A knowledge base consists of a large database that allows users to find information by entering keywords or questions in normal English phrases. A knowledge management system uses inference rules, which are logical rules that identify data patterns and relationships.

Figure 1-21 shows a knowl- edge management system that Toshiba maintains for its custom- ers and users. After a user enters a symptom, problem, or question, Toshiba’s Knowledge Base searches for a solution and displays the results.

Knowledge management systems do not use strict logical rules. Instead, many knowledge management systems use a technique called fuzzy logic that allows infer- ences to be drawn from imprecise relationships. Using fuzzy logic, values need not be black and white, like binary logic, but can be many shades of gray. The results of a fuzzy logic search will display in priority order, with the most relevant results at the top of the list.

User Productivity

Companies provide employees at all levels with technology that improves productivity. Examples of user productivity systems include e-mail, voice mail, fax, video and Web conferencing, word processing, automated calendars, database management, spread- sheets, desktop publishing, presentation graphics, company intranets, and high-speed Internet access. User productivity systems also include groupware. Groupware programs run on a company intranet and enable users to share data, collaborate on projects, and work in teams. GroupWise, offered by Novell, is a popular example of groupware.

When companies first installed word processing systems, managers expected to reduce the number of employees as office efficiency increased. That did not happen, primarily because the basic nature of clerical work changed. With computers performing most of the repetitive work, managers realized that office personnel could handle tasks that required more judgment, decision-making, and access to information.

Computer-based office work expanded rapidly as companies assigned more responsibility to employees at lower organizational levels. Relatively inexpensive hard- ware, powerful networks, corporate downsizing, and a move toward employee empow- erment also contributed to this trend. Today, administrative assistants and company presidents alike are networked, use computer workstations, and need to share corporate data to perform their jobs.

Information Systems Integration

Most large companies require systems that combine transaction processing, business support, knowledge management, and user productivity features. For example, suppose an international customer has a problem with a product and makes a warranty claim. A customer service representative enters the claim into a TP system. The transaction updates two other systems: a knowledge management system that tracks product problems and warranty activity, and a quality control system with decision support capabilities. A quality control engineer uses what-if analysis to determine if it would be

Phase 1 Systems Planning

To learn more about knowledge manage- ment systems, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Knowledge Management Systems link.

FIGURE 1-21 The interactive Toshiba Knowledge Base allows users to search for solutions.

advantageous to make product design changes to reduce warranty claims. In this example, a TP system is integrated with a knowledge management system and a business support system with decision support features.

WHAT INFORMATION DO USERS NEED?

Corporate organizational structure has changed considerably in recent years. As part of downsizing and business process reengineering, many companies reduced the number of management levels and delegated responsibility to operational personnel. Although modern organization charts tend to be flatter, an organizational hierarchy still exists in most companies.

A typical organizational model identifies business functions and organizational levels, as shown in Figure 1-22. Within the functional areas, operational personnel report to supervisors and team leaders. The next level includes middle managers and knowledge workers, who, in turn, report to top managers. In a corporate structure, the top managers report to a board of directors elected by the company’s shareholders.

A systems analyst must understand the company’s organizational model to recognize who is responsible for specific processes and decisions and to be aware of what information is required by whom.

Top Managers

Top managers develop long-range plans, called strategic plans, which define the com- pany’s overall mission and goals. To plot a future course, top managers ask questions such as “How much should the company invest in information technology?” or “How much will Internet sales grow in the next five years?” or “Should the company build new factories or contract out the production functions?”

Strategic planning affects the company’s future survival and growth, including long- term IT plans. Top managers focus on the overall business enterprise and use IT to set the company’s course and direction. To develop a strategic plan, top managers also need information from outside the company, such as economic forecasts, technology trends, competitive threats, and governmental issues.

Middle Managers and Knowledge Workers

Just below the top management level, most companies have a layer of middle managers and knowledge workers. Middle managers provide direction, necessary resources, and performance feedback to supervisors and team leaders. Because they focus on a somewhat

Chapter 1 Introduction to Systems Analysis and Design

What Information Do Users Need?

Top Managers

Middle Managers and Knowledge Workers

Supervisors and Team Leaders

Operational Employees

Organizational Levels

Information TechnologyHuman

Resources

Business Functions

ProductionMarketing

Accounting Sales

FIGURE 1-22 A typical organizational model identifies business functions

and organizational levels.

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Phase 1 Systems Planning

Systems Development Tools

shorter time frame, middle managers need more detailed information than top managers, but somewhat less than supervisors who oversee day-to-day operations. For example, a middle manager might review a weekly sales summary for a three-state area, whereas a local sales team leader would need a daily report on customer sales at a single location.

In addition to middle managers, every company has people called knowledge workers. Knowledge workers include professional staff members such as systems ana- lysts, programmers, accountants, researchers, trainers, and human resource specialists. Knowledge workers also use business support systems, knowledge management systems, and user productivity systems. Knowledge workers provide support for the organiza- tion’s basic functions. Just as a military unit requires logistical support, a successful company needs knowledge workers to carry out its mission.

Supervisors and Team Leaders

Supervisors, often called team leaders, oversee operational employees and carry out day-to-day functions. They coordinate operational tasks and people, make necessary decisions, and ensure that the right tools, materials, and training are available. Like other managers, supervisors and team leaders need decision support information, knowledge management systems, and user productivity systems to carry out their responsibilities.

Operational Employees

Operational employees include users who rely on TP systems to enter and receive data they need to perform their jobs. In many companies, operational users also need infor- mation to handle tasks and make decisions that were assigned previously to supervisors. This trend, called empowerment, gives employees more responsibility and accountability. Many companies find that empowerment improves employee motivation and increases customer satisfaction.

SYSTEMS DEVELOPMENT TOOLS

In addition to understanding business operations, systems analysts must know how to use a variety of techniques, such as modeling, prototyping, and computer-aided systems engineering tools to plan, design, and implement information systems. Systems analysts work with these tools in a team environment, where input from users, managers, and IT staff contributes to the system design.

Modeling

Modeling produces a graphical representation of a concept or process that systems developers can analyze, test, and modify. A systems analyst can describe and simplify an information system by using a set of business, data, object, network, and process models.

A business model, or requirements model, describes the information that a system must provide. A data model describes data structures and design. An object model describes objects, which combine data and processes. A network model describes the design and pro- tocols of telecommunications links. A process model describes the logic that programmers use to write code modules. Although the models might appear to overlap, they actually work together to describe the same environment from different points of view.

System developers often use multipurpose charting tools such as Microsoft Visio to display business-related models. Visio is a popular tool that systems analysts can use to create business process diagrams, flowcharts, organization charts, network diagrams, floor plans, project timelines, and work flow diagrams, among others.

Phase 1 Systems Planning

TOOLKIT TIME

The CASE tools in Part B of the Systems Analyst’s Toolkit can help you develop and main- tain complex infor- mation systems. To learn more about these tools, turn to Part B of the four- part Toolkit that fol- lows Chapter 12.

Figure 1-23 shows how you can drag and drop various symbols from the left pane into the drawing on the right, and connect them to show a business process.

You will learn about many types of mod- els in this textbook, including data flow diagrams, object diagrams, and entity- relationship diagrams. Business process modeling is explained in more detail in Part B of the Systems Analyst’s Toolkit.

Prototyping

Prototyping tests system concepts and provides an opportunity to examine input, output, and user interfaces before final deci- sions are made. A prototype is an early working version of an information system. Just as an aircraft manufacturer tests a new design in a wind tunnel, systems analysts construct and study information system pro- totypes. A prototype can serve as an initial

model that is used as a benchmark to evaluate the finished system, or the prototype itself can develop into the final version of the system. Either way, prototyping speeds up the development process significantly.

A possible disadvantage of prototyping is that important decisions might be made too early, before business or IT issues are understood thoroughly. A prototype based on care- ful fact-finding and modeling techniques, however, can be an extremely valuable tool.

Computer-Aided Systems Engineering (CASE) Tools

Computer-aided systems engineering (CASE), also called computer-aided software engineering, is a technique that uses powerful software, called CASE tools, to help

systems analysts develop and maintain information systems. CASE tools provide an overall framework for systems devel- opment and support a wide variety of design methodologies, including struc- tured analysis and object-oriented analysis.

Because CASE tools make it easier to build an information system, they boost IT productivity and improve the quality of the finished product. Part B of the Systems Analyst’s Toolkit explains how analysts use CASE tools to create business profiles, build business models, and document complex processes. After developing a model, many CASE tools can generate program code, which speeds the imple- mentation process. Figure 1-24 shows the Web site for Visible Systems Corporation, a leading vendor of CASE tools.

Chapter 1 Introduction to Systems Analysis and Design

Systems Development Tools

FIGURE 1-24 Visible Systems Corporation offers a wide array of software

engineering tools, including Visible Analyst, a popular CASE tool.

FIGURE 1-23 Microsoft Visio 2010 allows you to drag and drop various

symbols and connect them to show a business process.

To learn more about CASE Tools, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the CASE Tools link.

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Phase 1 Systems Planning

FIGURE 1-25 Comparison of structured, object-oriented, and agile/adaptive development methods.

Systems Development Methods

SYSTEMS DEVELOPMENT METHODS

Many options exist for developing information systems, but the most popular alternatives are structured analysis, which is a traditional method that still is widely used, object-oriented (O-O) analysis, which is a more recent approach that many ana- lysts prefer, and agile methods, also called adaptive methods, which include the latest trends in software development. Figure 1-25 provides an overview of the three methods, which are discussed in the following sections.

Phase 1 Systems Planning

STRUCTURED OBJECT-ORIENTED AGILE/ADAPTIVE ANALYSIS ANALYSIS METHODS

Description Represents the system in terms Views the system in terms of Stresses intense

of data and the processes that objects that combine data and team-based effort, as

act upon that data. System processes. The objects shown in Figures 1-30 and

development is organized into represent actual people, things, 1-31. Breaks development

phases, with deliverables and transactions, and events, as process down into cycles,

milestones to measure progress. shown in Figure 1-28. or iterations that add

The SDLC waterfall model typically Compared to structured functionality. Each

consists of five phases. Iteration is analysis, O-O phases tend to iteration is designed,

possible among the phases, as be more interactive. Can use built, and tested in an

shown in Figure 1-27. the waterfall model or the ongoing process.

model that stresses greater Attempts to reduce

iteration, as shown in major risks by incremental

Figure 1-29. steps in short time

intervals. Typically uses a

spiral model, as shown in

Figure 1-32.

Modeling Data flow diagrams (DFDs) and Various object-oriented diagrams Tools that enhance

tools process descriptions, which are depict system actors, methods, communication, such as

described in Chapter 5. Also, and messages, which are collaborative software,

business process modeling, described in Chapter 6. Also, brainstorming, and

which is explained in Part B business process modeling, whiteboards. Business

of the Systems Analyst’s Toolkit. which is explained in Part B process modeling, which

of the Systems Analyst’s Toolkit. is explained in Part B

of the Systems Analyst’s

Toolkit, works well

with agile methods.

Pros Traditional method, which has been Integrates easily with Very flexible and efficient

very popular over time. Relies object-oriented programming in dealing with change.

heavily on written documentation. languages. Code is modular and Stresses team interaction

Frequent phase iteration can reusable, which can reduce cost and reflects a set of

provide flexibility comparable and development time. Easy to community-based values.

with other methods. Well-suited to maintain and expand as new Frequent deliverables

project management tools and objects can be cloned using constantly validate the

techniques. inherited properties. project and reduce risk.

Cons Changes can be costly, especially Somewhat newer method might Team members need a

in later phases. Requirements are be less familiar to development high level of technical and

defined early, and can change during team members. Interaction of communications skills.

development. Users might not be objects and classes can be Lack of structure and

able to describe their needs until complex in larger systems. documentation can

they can see examples of features introduce risk factors.

and functions. Overall project might be

subject to scope change as

user requirements change.

Although most projects utilize one of these approaches, it is not unusual for system developers to mix and match methods to gain a better perspective. In addition to these three main development methods, some organizations choose to develop their own in- house approaches or use techniques offered by software suppliers, CASE tool vendors, or consultants. Many alternatives exist, and most IT experts agree that no one system development method is best in all cases. An approach that works well for one project might have major disadvantages or risks in another situation. The important thing is for a systems analyst to understand the various methods and the strengths and weaknesses of each approach.

Regardless of the development strategy, people, tasks, timetables, and costs must be managed effectively. Complex projects can involve dozens of people, hundreds of tasks, and many thousands of dollars. Project management is the process of planning, schedul- ing, monitoring, controlling, and reporting upon the development of an information system. Chapter 3 describes project management tools and techniques in detail.

Structured Analysis

Structured analysis is a traditional systems development technique that is time-tested and easy to understand. Structured analysis uses a series of phases, called the systems development life cycle (SDLC), to plan, analyze, design, implement, and support an information system. Although structured analysis evolved many years ago, it remains a popular systems development method. Structured analysis is based on an overall plan, similar to a blueprint for constructing a building, so it is called a predictive approach.

Structured analysis uses a set of process models to describe a system graphically. Because it focuses on processes that transform data into useful information, structured analysis is called a process-centered technique. In addition to modeling the processes, structured analysis also addresses data organization and structure, relational database design, and user interface issues.

A process model shows the data that flows in and out of system processes. Inside each process, input data is transformed by business rules that generate the output. Figure 1-26 shows a process model that was created with Visible Analyst, a popular software development tool. The model, which represents a school registration system, is a called a data flow diagram (DFD) because it uses various symbols and shapes to represent data flow, processing, and storage. You will learn more about DFDs

in Chapter 5, and you can view a Video Learning Session that explains DFDs and how they are used as modeling tools.

Structured analysis uses the SDLC to plan and manage the systems develop- ment process. The SDLC describes activities and functions that all systems developers perform, regardless of which approach they use. In the waterfall model, the result of each phase is called a deliverable, or end product, which flows into the next phase.

Some analysts see a disadvantage in the built-in structure of the SDLC, because the waterfall model does not emphasize interactivity among the phases. This criticism can be valid if the SDLC phases are followed too rigidly. However, adjacent phases usually interact, as shown

Chapter 1 Introduction to Systems Analysis and Design

Systems Development Methods

FIGURE 1-26 This Visible Analyst screen shows a process model for a school

registration system. The REGISTER STUDENTS process accepts input data from

two sources and transforms it into output data.

VIDEO LEARNING SESSIONS

To learn more about DFD symbols and diagrams, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com and navigate to the Video Learning Sessions for this book. These sessions can help you understand key concepts, practice your skills, and check your work.

VIDEO LEARNING SESSIONS

To learn more about project management, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com and navigate to the Video Learning Sessions for this book. These sessions can help you understand key concepts, practice your skills, and check your work.

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Phase 1 Systems Planning

by the dotted lines in Figure 1-27 and interaction among several phases is not uncommon. Other analysts regard the waterfall model as a two-way water flow model, with emphasis on iteration and user input. Used in this manner, the traditional model is not as different from agile methods as it might appear to be.

The SDLC model usually includes five steps, which are described in the following sections: systems planning, systems analysis, systems design, systems implementation, and systems support and security.

SYSTEMS PLANNING The systems planning phase usually begins with a formal request to the IT department, called a systems request, which describes problems or desired changes in an information system or a business process. In many companies, IT systems planning is an integral part of overall business planning. When managers and users develop their business plans, they usually include IT requirements that generate systems requests. A systems request can come from a top manager, a planning team, a department head, or the IT department itself. The request can be very significant or relatively minor. A major request might involve a new infor- mation system or the upgrading of an existing system. In contrast, a minor request might ask for a new feature or a change to the user interface.

The purpose of this phase is to perform a preliminary investigation to evaluate an IT-related business opportunity or problem. The preliminary investigation is a critical step because the outcome will affect the entire development process. A key part of the prelimi- nary investigation is a feasibility study that reviews anticipated costs and benefits and rec- ommends a course of action based on operational, technical, economic, and time factors.

Suppose you are a systems analyst and you receive a request for a system change or improvement. Your first step is to determine whether it makes sense to launch a prelimi- nary investigation at all. Often you will need to learn more about business operations before you can reach a conclusion. After an investigation, you might find that the infor- mation system functions properly, but users need more training. In some situations, you might recommend a business process review, rather than an IT solution. In other cases, you might conclude that a full-scale systems review is necessary. If the development process continues, the next step is the systems analysis phase.

SYSTEMS ANALYSIS The purpose of the systems analysis phase is to build a logical model of the new system. The first step is requirements modeling, where you investigate business processes and document what the new system must do to satisfy users. Requirements modeling continues the investigation that began during the systems plan- ning phase. To understand the system, you perform fact-finding using techniques such as interviews, surveys, document review, observation, and sampling. You use the fact- finding results to build business models, data and process models, and object models.

Systems Development Methods

Phase 1 Systems Planning

FIGURE 1-27 The phases and deliverables

of the SDLC are shown in the waterfall model.

The deliverable for the systems analysis phase is the system requirements document. The system requirements document describes management and user requirements, costs and benefits, and outlines alternative development strategies.

SYSTEMS DESIGN The purpose of the systems design phase is to create a physical model that will satisfy all documented requirements for the system. At this stage, you design the user interface and identify necessary outputs, inputs, and processes. In addi- tion, you design internal and external controls, including computer-based and manual features to guarantee that the system will be reliable, accurate, maintainable, and secure. During the systems design phase, you also determine the application architecture, which programmers will use to transform the logical design into program modules and code.

The deliverable for this phase is the system design specification, which is presented to management and users for review and approval. Management and user involvement is critical to avoid any misunderstanding about what the new system will do, how it will do it, and what it will cost.

SYSTEMS IMPLEMENTATION During the systems implementation phase, the new system is constructed. Whether the developers use structured analysis or O-O methods, the procedure is the same — programs are written, tested, and documented, and the system is installed. If the system was purchased as a package, systems analysts config- ure the software and perform any necessary modifications. The objective of the systems implementation phase is to deliver a completely functioning and documented informa- tion system. At the conclusion of this phase, the system is ready for use. Final prepara- tions include converting data to the new system’s files, training users, and performing the actual transition to the new system.

The systems implementation phase also includes an assessment, called a systems evaluation, to determine whether the system operates properly and if costs and benefits are within expectations.

SYSTEMS SUPPORT AND SECURITY During the systems support and security phase, the IT staff maintains, enhances, and protects the system. Maintenance changes correct errors and adapt to changes in the environment, such as new tax rates. Enhancements provide new features and benefits. The objective during this phase is to maximize return on the IT investment. Security controls safeguard the system from both external and internal threats. A well-designed system must be secure, reliable, maintainable, and scalable. A scalable design can expand to meet new business requirements and volumes. Information systems development is always a work in progress. Business processes change rapidly, and most information systems need to be updated significantly or replaced after several years of operation.

Object-Oriented Analysis

Whereas structured analysis treats processes and data as separate components, object- oriented analysis combines data and the processes that act on the data into things called objects. Systems analysts use O-O to model real-world business processes and operations. The result is a set of software objects that represent actual people, things, transactions, and events. Using an O-O programming language, a programmer then writes the code that creates the objects.

An object is a member of a class, which is a collection of similar objects. Objects possess characteristics called properties, which the object inherits from its class or possesses on its own. As shown in Figure 1-28, the class called PERSON includes INSTRUCTOR and STUDENT. Because the PERSON class has a property called Address, a STUDENT inherits the Address property. A STUDENT also has a property called Major that is not shared by other members of the PERSON class.

Chapter 1 Introduction to Systems Analysis and Design

Systems Development Methods

VIDEO LEARNING SESSIONS

To learn more about object modeling, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com and navigate to the Video Learning Sessions for this book. These sessions can help you understand key concepts, practice your skills, and check your work.

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Phase 1 Systems Planning

Systems Development Methods

In O-O design, built-in processes called methods can change an object’s properties. For example, in a Web-based catalog store, an ORDER object might have a property called STATUS that changes when a CUSTOMER object clicks to place, confirm, or cancel the order.

One object can send information to another object by using a message. A message requests specific behavior or information from another object. For example, an ORDER object might send a message to a CUSTOMER object that requests a shipping address. When it receives the message, the CUSTOMER object supplies the infor- mation. The ORDER object has the capability to send the message, and the CUSTOMER object knows what actions to perform when it receives the message. O-O analysis uses object models to represent data and behav- ior, and to show how objects affect other objects. By describing the objects and methods needed to support a business operation, a system developer can design reus- able components that speed up system implementation and reduce development cost.

Object-oriented methods usually follow a series of analysis and design phases that are similar to the SDLC, although there is less agreement on the number of phases and their names. In an O-O model, the phases tend to be more interactive. Figure 1-29 shows a system development model where planning, analysis, and design tasks interact continuously to produce proto- types that can be tested and implemented. The result is an interactive model that can accurately depict real-world business processes.

O-O methodology is popular because it provides an easy transi- tion to O-O programming languages such as Java, Smalltalk, C++, Python, and Perl. Chapter 6 covers O-O analysis and design, with a detailed description of O-O terms, concepts, tools, and techniques.

Agile Methods

Development techniques change over time. For example, structured analysis is a traditional approach, and agile methods are the newest development. Structured analysis builds an overall plan for the informa- tion system, just as a contractor might use a blueprint for constructing a building. Agile methods, in contrast, attempt to develop a system incre- mentally, by building a series of prototypes and constantly adjusting them to user requirements. As the agile process continues, developers revise, extend, and merge earlier versions into the final product. An agile approach emphasizes continuous feedback, and each incremental step is affected by what was learned in the prior steps.

Although relatively new to software development, the notion of iterative development can be traced back to Japanese auto firms that were able to boost productivity by using a flexible manufacturing system, where team-based effort and short-term milestones helped keep quality up and costs down. Agile methods have attracted a wide following and an entire community of users, as shown in Figure 1-30 on the next page.

PERSON

Inherited Properties

Other Properties

INSTRUCTOR STUDENT

Name Address Social Security Number

Office Location Office Telephone Date Hired

Name Address Social Security Number

Major GPA Adviser

FIGURE 1-28 The PERSON class includes INSTRUCTOR

and STUDENT objects, which have their own properties and

inherited properties.

Phase 1 Systems Planning

Planning

Analysis DesignD iDesign

Prototypes

Testing

PlanningPlanning

ysAnnalyAnna ysA alysA a sisis ssissisAnalysis

PPPrototypesPrototypes

DesignDesignDesign

TestingTesting

FIGURE 1-29 An interactive model often

is used with O-O development methods. In

this model, planning, analysis, and design tasks

interact continuously.

To learn more about agile systems devel- opment methods, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Agile Methods link.

Agile methods typically use a spiral model, which represents a series of itera- tions, or revisions, based on user feedback. As the process continues, the final product gradually evolves. An agile approach requires intense interactivity between devel- opers and individual users, and does not begin with an overall objective. Instead, the agile process determines the end result. Proponents of the spiral model believe that this approach reduces risks and speeds up software development.

Spiral models initially were suggested in the 1990s by Barry Boehm, a noted software engineering professor. He stated that each

iteration, or phase, of the model must have a specific goal that is accepted, rejected, or changed by the user, or client. Thus, each

iteration produces feedback and enhancements, which enable the team to reach the over- all project goal. Typically, each iteration in a spiral model includes planning, risk analysis, engineering, and evaluation, as shown in the table in Figure 1-31. The repeated iterations produce a series of prototypes, which evolve into the finished system. Notice that these phases resemble SDLC tasks, which also can be iterative.

Numerous other adap- tive variations and related methods exist, and most IT developers expect this trend to continue in the future. Two examples are Scrum and Extreme Programming (XP), which are discussed in detail in

Chapter 4, Requirements Modeling, and in Chapter 11, Application Development. Although agile methods are becoming popular, analysts should recognize that these

approaches have advantages and disadvantages. By their nature, agile methods can allow developers to be much more flexible and responsive, but can be riskier than more traditional methods. For example, without a detailed set of system requirements, certain features requested by some users might not be consistent with the company’s larger game plan.

Other potential disadvantages of agile methods can include weak documentation, blurred lines of accountability, and too little emphasis on the larger business picture. Also, unless properly implemented, a long series of iterations might actually add to project cost and development time. The bottom line is that systems analysts should understand the pros and cons of any approach before selecting a development method for a specific project.

Other Development Methods

IT professionals know that the key to success is user input — before, during, and after a system is developed. Over time, many companies discovered that systems development teams composed of IT staff, users, and managers could complete their work more rap- idly and produce better results. Two methodologies became popular: joint application development (JAD) and rapid application development (RAD).

Chapter 1 Introduction to Systems Analysis and Design

Systems Development Methods

FIGURE 1-30 Agile methods have attracted a wide following and an entire

community of users.

PHASE TASKS

Planning Define objectives, constraints, and deliverables

Risk analysis Identify risks and develop acceptable resolutions

Engineering Develop a prototype that includes all deliverables

Evaluation Perform assessment and testing to develop objectives for next iteration

FIGURE 1-31 Typical phases and tasks in a spiral model.

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Phase 1 Systems Planning

Systems Development Guidelines

Both JAD and RAD use teams composed of users, managers, and IT staff. The difference is that JAD focuses on team-based fact-finding, which is only one phase of the development process, whereas RAD is more like a compressed version of the entire process. JAD, RAD, and agile methods are described in more detail in Chapter 4.

In addition to the methods described in this chapter, you might encounter other systems development techniques. If a systems analyst wants additional choices, he or she can choose from an entire industry of IT software companies and consulting firms. For example, a popular approach offered by the Rational group at IBM is called the Rational Unified Process (RUP®). According to IBM, RUP® offers a flexible, iterative process for managing software development projects that can minimize risk, ensure predictable results, and deliver high-quality software on time.

Another option is what Microsoft calls Microsoft Solutions Framework (MSF), which documents the experience of its own software development teams. Although the Microsoft process differs from the SDLC phase-oriented approach, MSF developers perform the same kind of planning, ask the same kinds of fact-finding questions, deal with the same kinds of design and implementation issues, and resolve the same kinds of problems. Using this approach, MSF examines a broader business and organizational context that surrounds the development of an information system.

Companies often choose to follow their own methodology. Using CASE tools, an IT team can apply a variety of techniques rather than being bound to a single, rigid meth- odology. As shown in Part B of the Systems Analyst’s Toolkit, many CASE tools offer a complete set of analysis and modeling tools that support various methods and strategies. Regardless of the development model, it will be necessary to manage people, tasks, timetables, and expenses by using various project management tools and techniques.

SYSTEMS DEVELOPMENT GUIDELINES

The basic principles in Figure 1-32 apply to any IT project, large or small. Although you will develop your own methods and techniques, these guidelines will help you achieve success as a systems analyst.

Phase 1 Systems Planning

To learn more about Microsoft Solutions Framework, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Microsoft Solutions Framework link.

FIVE BASIC SYSTEMS DEVELOPMENT GUIDELINES

Develop a Plan

Prepare an overall project plan and stick to it. Complete the tasks in a logical sequence.

Develop a clear set of ground rules and be sure that everyone on the team understands

them clearly.

Involve Users and

Listen Carefully

to Them

Ensure that users are involved in the development process, especially when identifying and

modeling system requirements. When you interact with users, listen closely to what they are

saying. Chapter 4 describes fact-finding and how to get the most out of face-to-face

communication.

Use Project

Management Tools

and Techniques

Try to keep the project on track and avoid surprises. Create a reasonable number of

checkpoints — too many can be burdensome, but too few will not provide adequate

control. In Chapter 3, you will learn how to use Microsoft Project to help you manage tasks,

allocate resources, and monitor progress.

Develop Accurate

Cost and Benefit

Information

Managers need to know the cost of developing and operating a system, and the value of the

benefits it will provide. You must provide accurate, realistic cost and benefit estimates, and

update them as necessary.

Remain Flexible

Be flexible within the framework of your plan. Systems development is a dynamic process,

and overlap often exists among tasks. The ability to react quickly is especially important

when you are working on a system that must be developed rapidly.

FIGURE 1-32 These basic guidelines apply throughout the systems development process.

THE INFORMATION TECHNOLOGY DEPARTMENT

The IT department develops and maintains information systems. The structure of the IT department varies among companies, as does its name and placement within the organi- zation. In a small firm, one person might handle all computer support activities and ser- vices, whereas a large corporation might require many people with specialized skills to provide information systems support. Figure 1-33 shows a typical IT organization in a company that has networked PCs, enterprise-wide databases, centralized processing, and Web-based operations.

The IT group provides technical support, which includes six main functions: applica- tion development, systems support and security, user support, database administration, network administration, and Web support. These functions overlap considerably and often have different names in different companies.

Chapter 1 Introduction to Systems Analysis and Design

The Information Technology Department

Director

Information Technology

Application Development

Systems Support and Security

User Support

Database Administration

Quality Assurance (QA)

Web Support

Network Administration

IT Department

FIGURE 1-33 Depending on its size, an IT department might have separate organizational units for these functions, or they might be

combined into a smaller number of teams.

Application Development

The IT application development group typically provides leadership and overall guidance, but the systems themselves are developed by teams consisting of users, managers, and IT staff members. A popular model for information systems development is a project-oriented team using RAD or JAD, with IT professionals providing overall coordination, guidance, and technical support.

CASE IN POINT 1.2: GLOBAL HOTELS AND MOMMA’S MOTELS

Suppose you work in the IT department of Global Hotels, a multinational hotel chain. Global Hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. Guests can make one-stop online reservations by visiting Global’s Web site, which has links to all major travel industry sites.

Global Hotels just acquired Momma’s, a regional chain of 20 motels in western Canada. Momma’s uses a vertical reservations package suitable for small- to medium-sized businesses, and a generic accounting and finance package. Should Momma’s use Global Hotels’ informa- tion systems or continue with its own? In your answer, consider issues such as business pro- files, business processes, system interactivity, EDI, XML, e-commerce, and the characteristics of both information systems. What additional information would be helpful to you in making a recommendation?

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Phase 1 Systems Planning

The Information Technology Department

Systems Support and Security

Systems support and security provides vital protection and maintenance services for system hardware and software, including enterprise computing systems, networks, transaction processing systems, and corporate IT infrastructure. The systems support and security group implements and monitors physical and electronic security hard- ware, software, and procedures. This group also installs and supports operating systems, telecommunications software, and centralized database management systems. In addition, systems support and security technicians provide technical assistance to other groups in the IT department. If a site has a large number of remote clients, the systems support group often includes a deployment team that installs and configures the workstations.

User Support

User support provides users with technical information, training, and productivity support. The user support function usually is called a help desk or information center (IC). A help desk’s staff trains users and managers on application software such as e-mail, word processing spreadsheets, and graphics packages. User support specialists answer questions, troubleshoot problems, and serve as a clearinghouse for user problems and solutions.

Database Administration

Database administration involves data design, management, security, backup, and access. In small- and medium-sized companies, an IT support person performs those roles in addition to other duties. Regardless of company size, mission-critical database applications require continuous attention and technical support.

Network Administration

Business operations depend on networks that enable company-wide information systems. Network administration includes hardware and software maintenance, support, and security. In addition to controlling user access, network administrators install, configure, manage, monitor, and maintain network applications. Network administration is discussed in more detail in Chapter 10.

Web Support

Web support is a vital technical support function. Web support specialists design and construct Web pages, monitor traffic, manage hardware and software, and link Web-based applications to the company’s information systems. Reliable, high-quality Web support is especially critical for companies engaged in e-commerce.

Quality Assurance (QA)

Many large IT departments also use a quality assurance (QA) team that reviews and tests all applications and systems changes to verify specifications and software quality standards. The QA team usually is a separate unit that reports directly to IT management.

Phase 1 Systems Planning

Chapter 1 Introduction to Systems Analysis and Design

The Systems Analyst

CASE IN POINT 1.3: WHAT SHOULD LISA DO?

Lisa Jameson has two job offers. One is from Pembroke Boats, a boat manufacturer that employs 200 people in a small Ohio town. Pembroke does not have an IT department and wants her to create one. The job position is called information coordinator, but she would be the only IT person.

The other offer, which pays about $7,500 more annually, is from Albemarle Express, a nationwide trucking firm located in Detroit. At Albemarle Express, Lisa would be a program- mer-analyst, with the promise that if she does well in her position, she eventually will move into a systems analyst position and work on new systems development. Lisa has heard a rumor that another company might acquire Albemarle Express, but that rumor has occurred before and nothing has ever happened. What should Lisa do, and why?

THE SYSTEMS ANALYST

A systems analyst investigates, analyzes, designs, develops, installs, evaluates, and maintains a company’s information systems. To perform those tasks, a systems analyst constantly interacts with users and managers within and outside the company. On large projects, the analyst works as a member of an IT department team; on smaller assign- ments, he or she might work alone.

Most companies assign systems analysts to the IT department, but analysts also can report to a specific user area such as marketing, sales, or accounting. As a member of a functional team, an analyst is better able to understand the needs of that group and how information systems support the department’s mission. Smaller companies often use consultants to perform systems analysis work on an as-needed basis.

Responsibilities

The systems analyst’s job overlaps business and technical issues. Analysts help translate business requirements into IT projects. When assigned to a systems development team, an analyst might help document business profiles, review business processes, select hardware and software packages, design information systems, train users, and plan e-commerce Web sites.

A systems analyst plans projects, develops schedules, and estimates costs. To keep managers and users informed, the analyst conducts meetings, delivers presentations, and writes memos, reports, and documentation. The Systems Analyst’s Toolkit that follows Chapter 12 includes various tools to help you with each of those important skills.

Knowledge, Skills, and Education

A successful systems analyst needs technical knowledge, oral and written communication skills, an understanding of business operations, and critical thinking skills. Educational requirements vary widely depending on the company and the position. In a rapidly chang- ing IT marketplace, a systems analyst must manage his or her own career and have a plan for professional development.

TECHNICAL KNOWLEDGE State-of-the-art knowledge is extremely important in a rapidly changing business and technical environment. The Internet offers numerous opportunities to update technical knowledge and skills. Many sites, such as the one shown in Figure 1-34 offer a convenient way for IT professionals to learn about techni- cal developments, exchange experiences, and get answers to questions. Analysts also maintain their skills by attending training courses, both on-site and online. Networking with colleagues is another way to keep up with new developments, and membership in

TOOLKIT TIME

The communications tools in Part A of the Systems Analyst’s Toolkit can help you develop better reports and presen- tations. To learn more about these tools, turn to Part A of the four-part Toolkit that follows Chapter 12.

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Phase 1 Systems Planning

The Systems Analyst

professional associations also is important.

COMMUNICATION SKILLS A systems analyst needs strong oral and written communication skills, and the ability to interact with people at all levels, from opera- tional staff to senior executives. Often, the analyst must work with people outside the company, such as software and hardware vendors, customers, and government officials. Analysts often coordinate IT project teams, where they use communication skills to guide and motivate team members.

BUSINESS SKILLS A systems analyst works closely with mana- gers, supervisors, and operational employees. To be effective, he or she must understand business opera- tions and processes, communicate clearly, and translate business needs into requirements that can be under- stood by programmers and systems developers. A successful analyst is business-oriented, curious, comfort- able with financial tools, and able to see the big picture. Chapter 2, Analyzing the Business Case, describes some basic concepts, including strategic planning, SWOT analysis, and feasibility tests. In addition, the Systems Analyst’s Toolkit, which follows Chapter 12, explains communication and finan- cial tools that can help analysts handle business-related tasks.

CRITICAL THINKING SKILLS Although no standard definition exists, most educators agree that critical thinking skills include the ability to compare, classify, evaluate, recognize patterns, analyze cause-and-effect, and apply logic. Critical thinkers often use a what-if approach, and they have the ability to evaluate their own thinking and reasoning.

Critical thinking skills are valuable in the IT industry, where employers seek job candidates who can demon- strate these skills and bring them to the workplace. Figure 1-35 shows the Foundation for Critical Thinking site, which offers many resources to support the critical thinking community.

Phase 1 Systems Planning

FIGURE 1-34 The TechRepublic Web site offers support for IT professionals. Features

include newsletters, forums, product information, and a searchable knowledge base.

FIGURE 1-35 The Critical Thinking Community is a nonprofit

organization that provides encouragement and resources for

critical thinkers.

EDUCATION Companies typically require systems analysts to have a college degree in information systems, computer science, or business, and some IT experience usually is required. For higher-level positions, many companies require an advanced degree. Sometimes, educational requirements can be waived if a candidate has significant experience, skills, or professional certifications. Part D of the Systems Analyst’s Toolkit describes many valuable IT resources for personal and professional development.

Certification

Many hardware and software companies offer certification for IT professionals. Certification verifies that an individual demonstrated a certain level of knowledge and skill on a standardized test. Certification is an excellent way for IT professionals

to learn new skills and gain recognition for their efforts. Although certification does not guarantee competence or ability, many compa- nies regard certification as an important cre- dential for hiring or promotion. You can learn more about certification in Chapter 12, Managing Systems Support and Security, and by visiting the Web sites of individual compa- nies such as Microsoft, Cisco Systems, Sun Microsystems, and Novell.

In addition to traditional hardware and software certifications, some firms are exploring ways to assess critical thinking skills, as shown in Figure 1-3. These skills include perception, organization, analysis, problem-solving, and decision-making. Whether or not formal certification is involved, these skills are extremely valuable

to IT professionals and the employers who hire them.

Career Opportunities

The demand for systems ana- lysts is expected to remain strong. Companies will need systems analysts to apply new information technology, and the explosion in e-commerce will fuel IT job growth. The systems analyst position is a challenging and rewarding one that can lead to a top manage- ment position. With an under- standing of technical and business issues, a systems ana-

lyst has an unlimited horizon. Many companies have presidents and senior managers who started in IT departments as systems analysts.

Chapter 1 Introduction to Systems Analysis and Design

The Systems Analyst

FIGURE 1-36 Employers want to hire people who think logically and effectively. Some firms

are working on certification exams designed to measure these skills.

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Phase 1 Systems Planning

The Systems Analyst

The responsibilities of a systems analyst at a small firm are different from those at a large corporation. Would you be better off at a small or large company? Where will you find the best opportunity for experience and professional growth? Each person looks for different rewards in a job. What will be important to you?

JOB TITLES First, do not rely on job titles alone. Some positions are called systems analysts, but involve only programming or technical support. In other cases, systems analyst responsibilities are found in positions titled computer specialist, programmer, programmer/analyst, systems designer, software engineer, and various others. Be sure the responsibilities of the job are stated clearly when you consider a position.

COMPANY ORGANIZATION Find out all you can about the company and where the IT department fits in the organization chart. Where are IT functions performed, and by whom? A firm might have a central IT group, but decentralize the systems development function. This situation sometimes occurs in large conglomerates, where the parent company consolidates information that actually is developed and managed at the subsidiary level. Where would you rather work?

COMPANY SIZE If you like more variety, a smaller firm might suit you best. If you want to specialize, however, then consider a larger company with state-of-the-art sys- tems. Although you might have more responsibility in a smaller company, the promo- tional opportunities and financial rewards often are greater in larger companies. You also might want to consider working as an independent consultant, either on your own or with others. Many consulting firms have been successful in offering their ser- vices to smaller business enterprises that do not have the expertise to handle systems development on their own.

CORPORATE CULTURE In addition to having goals, methods, and information systems requirements, every firm has an underlying corporate culture. A corporate culture is the set of beliefs, rules, traditions, values, and attitudes that define a company and influence its way of doing business. To be successful, a systems analyst must understand the cor- porate culture and how it affects the way information is managed. Companies some- times include statements about corporate culture in their mission statements, which are explained in Chapter 2.

SALARY, LOCATION, AND FUTURE GROWTH Finally, consider salary, location, and the company’s prospects for future growth and success. Think about your impressions of the company and the people you met during your interviews. Most important, review your short- and long-term goals very carefully before deciding which position is best for you.

CASE IN POINT 1.4: JUST-IN-TIME AIRFREIGHT, INC.

Suppose you are the IT director at Just-in-Time Airfreight, and you have received authorization to hire another systems analyst. This will be an entry-level position, and the person will assist senior systems analysts on various projects involving the reservations and the human resources systems. Using the information in this chapter, draft an ad that would appear in The Wall Street Journal, local newspapers, and online. You can get some ideas by visiting monster.com, or a simi- lar site. In your ad, be sure to list desired skills, experience, and educational requirements.

Phase 1 Systems Planning

TOOLKIT TIME

The information technology resource tools in Part D of the Systems Analyst’s Toolkit can help you obtain technical data, advance your career, and network with other IT pro- fessionals. To learn more about these tools, turn to Part D of the four-part Toolkit that follows Chapter 12.

Chapter 1 Introduction to Systems Analysis and Design

Chapter Summary

A QUESTION OF ETHICS

You are enjoying your job as a summer intern in the IT department of a local company. At lunch yesterday, several people were discussing ethical issues. You learned that some of them belong to IT organizations that have ethical codes to guide members and set professional standards. For example, Ann, your supervisor, belongs to the Association for Computing Machinery (ACM), which has over 97,000 members and a Web site at acm.org. Ann said that the ACM code of ethics is important to her, and would definitely influence her views. On the other hand, Jack, a senior programmer, believes that his own personal standards would be sufficient to guide him if ethical questions were to arise.

Because you are excited about your career as an IT professional, you decide to examine the ACM code of ethics and make up your own mind. After you do so, would you tend to agree more with Ann or with Jack?

CHAPTER SUMMARY

In this chapter, you learned that information technology (IT) refers to the combination of hardware, software, and services that people use to manage, communicate, and share information. Technology is changing rapidly, and IT professionals must prepare for the future. IT supports business operations, improves productivity, and helps managers make decisions. Systems analysis and design is the process of developing information systems that transform data into useful information.

Traditionally, companies either developed in-house applications or purchased software packages from vendors. Today, the choice is much more complex, but it is always impor- tant for companies to plan the system carefully before considering implementation options.

The essential components of an information system are hardware, software, data, processes, and people. Hardware consists of everything in the physical layer of the informa- tion system. Software consists of system software, which manages the hardware compo- nents, and application software, which supports day-to-day business operations. Data is the raw material that an information system transforms into useful information. Processes describe the tasks and functions that users, managers, and IT staff members perform. People who interact with a system include users, from both within and outside the company.

A systems analyst starts with a business profile, which is an overview of company functions, and then he or she creates a series of business models that represent business processes, which describe specific transactions, events, tasks, and results. Analysts use business process modeling tools to document complex operations.

Most successful companies offer a mix of products, technical and financial services, consulting, and customer support. A rapidly growing business category is the Internet- dependent (dot-com) firm, which relies solely on Internet-based operations. E-commerce includes business-to-consumer (B2C) sales, and business-to-business (B2B) transactions that use Internet-based digital marketplaces or private electronic data interchange (EDI) systems.

Based on their functions and features, business information systems are identified as enterprise computing systems, transaction processing systems, business support systems, knowledge management systems, or user productivity systems. In most companies, signifi- cant overlap and integration exists among the various types of information systems.

A typical organization structure includes top managers, middle managers and knowledge workers, supervisors and team leaders, and operational employees. Top managers develop strategic plans, which define an overall mission and goals. Middle managers provide direction, resources, and feedback to supervisors and team leaders.

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Phase 1 Systems Planning

Chapter Summary

Knowledge workers include various professionals who function as support staff. Supervisors and team leaders oversee operational employees. Each organizational level has a different set of responsibilities and information needs.

Systems analysts use modeling, prototyping, and computer-aided systems engineering (CASE) tools. Modeling produces a graphical representation of a concept or process, whereas prototyping involves the creation of an early working model of the information or its components. A systems analyst uses CASE tools to perform various systems development tasks.

Three popular system development approaches are structured analysis, which is a traditional method that still is widely used, object-oriented analysis (O-O), which is a more recent approach that many analysts prefer, and agile methods, also called adaptive methods, which include the latest trends in software development.

Structured analysis uses a series of phases, called the systems development life cycle (SDLC) that usually is shown as a waterfall model. Structured analysis uses an overall plan, similar to a blueprint for constructing a building, so it is called a predictive approach. This method uses a set of process models to describe a system graphically, and also addresses data organization and structure, relational database design, and user interface issues.

Object-oriented analysis combines data and the processes that act on the data into things called objects that represent people, things, transactions, and events. Objects have character- istics called properties, built-in processes called methods, and can send information to other objects by using messages. Using an O-O programming language, a programmer then writes the code that creates the objects. Object-oriented methods usually follow a series of analysis and design phases similar to the SDLC, but the phases are more interactive.

Agile methods are the newest development approach, and attempt to develop a system incrementally by building a series of prototypes and constantly adjusting them to user requirements. Agile methods typically use a spiral model, which represents a series of itera- tions, or revisions, based on user feedback. The repeated iterations produce a series of prototypes, which evolve into the finished system.

Regardless of the development strategy, people, tasks, timetables, and costs must be managed effectively using project management tools and techniques, which are described in detail in Chapter 3.

Some firms choose to develop their own in-house methods or adopt techniques offered by software suppliers, CASE tool vendors, or consultants. Companies also use team-based strategies called joint application development (JAD) and rapid application development (RAD). JAD focuses on team-based fact-finding, whereas RAD is more like a compressed version of the entire process. JAD and RAD are described in more detail in Chapter 4.

The IT department develops, maintains, and operates a company’s information systems. IT staff members provide technical support, including application development, systems support, user support, database administration, network administration, and Web support. These functions overlap considerably and often have different names in different companies.

In addition to technical knowledge, a systems analyst must understand the business, think critically, and communicate effectively. Valuable credentials such as certifications are available to systems analysts. A systems analyst’s responsibilities depend on a company’s organization, size, and culture. Systems analysts need to consider salary, location, and future growth potential when making a career decision.

Phase 1 Systems Planning

Chapter 1 Introduction to Systems Analysis and Design

Key Terms and Phrases

adaptive methods 21 agile methods 21 application development 28 application software 8 B2B (business-to-business) 13 B2C (business-to-consumer) 13 brick-and-mortar 12 business model 19 business process 10 business process model (BPM) 10 business process modeling 10 business process modeling

notation (BPMN) 10 business process reengineering

(BPR) 18 business profile 10 business rules 22 business support systems 16 CASE tools 20 certification 32 class 24 computer-aided software

engineering (CASE) 20 computer-aided systems

engineering (CASE) 20 corporate culture 33 critical thinking skills 31 data 7 data flow diagram (DFD) 22 data model 19 database administration 29 deliverable 22 deployment team 29 dot-com (.com) 12 e-commerce (electronic

commerce) 13 electronic data interchange

(EDI) 14 empowerment 19 end product 22 end users 10 enterprise applications 8 enterprise computing 15 enterprise resource planning

(ERP) 15 expert systems 16 extensible markup language

(XML) 14 feasibility study 23

fuzzy logic 17 groupware 17 hardware 8 help desk 29 horizontal system 8 I-commerce (Internet

commerce) 13 inference rules 17 information 7 information center (IC) 29 information system 7 information technology (IT) 4 in-house applications 7 interactive model 25 Internet-dependent 12 iterative 25 joint application development

(JAD) 26 knowledge base 17 knowledge management

systems 16 knowledge workers 19 legacy systems 9 management information

systems (MIS) 16 message 25 methods 25 Microsoft Solutions

Framework (MSF) 27 mission-critical system 7 modeling 19 Moore’s Law 8 network administration 29 network model 19 object-oriented (O-O)

analysis 21 object model 19 objects 24 predictive 22 preliminary investigation 23 process model 19 process-centered 22 processes 9 product-oriented 11 project management 22 properties 24 prototype 20 quality assurance (QA) 29

radio frequency identification (RFID) 16

rapid application development (RAD) 26

Rational Unified Process (RUP®) 27

requirements model 19 requirements modeling 23 scalable 24 service-oriented 11 software 8 software packages 7 spiral model 26 stakeholders 10 strategic plans 18 structured analysis 21 supplier relationship

management (SRM) 14 supply chain management

(SCM) 14 system 7 system design specification 24 system requirements

document 24 system software 8 systems analysis and design 7 systems analysis phase 23 systems analysts 7 systems design phase 24 systems development life cycle

(SDLC) 22 systems evaluation 24 systems implementation

phase 24 systems planning phase 23 systems request 23 systems support and security 29 systems support and security

phase 24 technical support 28 transaction processing (TP)

systems 15 user productivity systems 17 user support 29 users 10 vertical system 8 waterfall model 22 Web support 29 what-if 16

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Phase 1 Systems Planning

Learn It Online

Instructions: To complete the Learn It Online exercises, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com, navigate to the resources for this chapter, and click the link for the exercise you want to complete.

1 Chapter Reinforcement TF, MC, and SA

Click the Chapter Reinforcement link. Print the quiz by clicking Print on the File menu for each page. Answer each question.

2 Flash Cards Click the Flash Cards link and read the instructions. Type 20 (or a number specified by your instructor) in the Number of playing cards text box, type your name in the Enter your Name text box, and then click the Flip Card button. When the flash card is dis- played, read the question and then click the ANSWER box arrow to select an answer. Flip through the Flash Cards. If your score is 15 (75%) correct or greater, click Print on the File menu to print your results. If your score is less than 15 (75%) correct, then redo this exercise by clicking the Replay button.

3 Practice Test Click the Practice Test link. Answer each question, enter your first and last name at the bottom of the page, and then click the Grade Test button. When the graded practice test is displayed on your screen, click Print on the File menu to print a hard copy. Continue to take practice tests until you score 80% or better.

4 Who Wants To Be a Computer Genius? Click the Computer Genius link. Read the instructions, enter your first and last name at the bottom of the page, and then click the Play button. When your score is dis- played, click the PRINT RESULTS link to print a hard copy.

5 Wheel of Terms Click the Wheel of Terms link. Read the instructions, and then enter your first and last name and your school name. Click the PLAY button. When your score is displayed on the screen, right-click the score and then click Print on the shortcut menu to print a hard copy.

6 Crossword Puzzle Challenge Click the Crossword Puzzle Challenge link. Read the instructions, and then enter your first and last name. Click the SUBMIT button. Work the crossword puzzle. When you are finished, click the Submit button. When the crossword puzzle is redisplayed, click the Print Puzzle button to print a hard copy.

Phase 1 Systems Planning

Learn It Online

Chapter 1 Introduction to Systems Analysis and Design

Case-Sim: SCR Associates

SCR Associates Case Simulation Session 1: Introduction

Overview

The SCR Associates case study is a Web-based simulation that allows you to practice your skills in a real-world environ- ment. The case study transports you to SCR’s intranet, where you complete 12 work sessions, each aligning with a chapter. As you work on the case, you will receive e-mail and voice mail messages, obtain information from SCR’s online libraries, and perform various tasks.

Background

SCR Associates is an IT consulting firm that offers solutions and training. SCR has decided to expand by opening a high-tech training center. The company needs to develop an information system to support operations at the new training center. The new system will be called TIMS (Training Information Management System).

As a newly hired systems analyst, you report to Jesse Baker, systems group manager. She will expect you to apply the knowledge and skills you learn in each chapter. Your work should be accurate, thorough, and have a professional appearance.

What’s in the textbook?

• A preview of each work session, to set the stage for your tasks. • A list of the session tasks for easy reference.

What’s on the Web?

• A realistic simulation that includes the SCR Web site and a link to the company intranet. The Web site contains public information about the company, including its organization, mission, values, goals, and services.

• An intranet portal that asks you to enter your name and a password. • Links for e-mail and voice mail that explain your tasks and add realism. • A task list, with four specific tasks per session. • Background information you will need, including a data library, a forms library, and

resources list.

How do I use the case?

• Review the background material. • Read the preview for this session and study the Task List. You might need to review the

chapter material in order to perform the tasks. • Visit the Management Information Systems CourseMate Web site at www.cengagebrain.

com, navigate to the SCR Case Simulation, and locate the intranet link. • Enter your name and the password sad9e. An opening screen will display the

work sessions. • Select a work session. • Check your e-mail and voice mail messages carefully, and then begin working

on the task list.

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Phase 1 Systems Planning

Case-Sim: SCR Associates

SCR Associates Case Simulation Session 1: Introduction (Continued)

Preview: Session 1

This is your second day on the job as a systems analyst at SCR Associates. You spent most of yesterday filling out personnel forms and learning your way around the office. This morning, you sit at your desk and examine SCR’s Internet site. You explore the entire site, which reflects SCR’s history, purpose, and values. You especially are impressed with the emphasis SCR puts on its relationships with clients. When you finish examining the site, you are more convinced than ever that SCR will be a great career opportunity. You are excited about your new job, and eager to get started.

Task List

FIGURE 1-37 Task list: Session 1.

1. Investigate SCR’s Internet site and learn about the company’s history, purpose, and values. Send Jesse

a brief memo with suggestions to expand or improve these sections.

2. On the SCR intranet, visit the data, forms, and resource libraries and review a sample of the information

in each library.

3. Using the SCR functions and organization listed in the data library, create an

organization chart using Microsoft Word, Visio, or a drawing program.

4. Jesse says that SCR has plenty of competition in the IT consulting field. Get on the Internet and find

three other IT consulting firms. She wants a brief description of each firm and the services it offers.

40 Chapter Exercises

Chapter 1 Introduction to Systems Analysis and Design

Review Questions

1. What is information technology, and why is it important to a business? 2. Define business profiles, processes, and modeling. 3. Identify the main components of an information system, and describe the system’s

stakeholders. 4. Explain the difference between vertical and horizontal systems packages. 5. How do companies use EDI? What are some advantages of using XML? 6. Describe five types of information systems, and give an example of each. 7. Describe four organizational levels of a typical business and their information

requirements. 8. Describe the phases of the systems development life cycle, and compare the SDLC

waterfall model with the spiral model. 9. Explain the use of models, prototypes, and CASE tools in the systems development

process. Also explain the pros and cons of agile development methods. 10. What is object-oriented analysis, and how does it differ from structured

analysis?

Discussion Topics

1. Some experts believe that the growth in e-commerce will cause states and local governments to lose a significant amount of sales tax revenue, unless Internet transactions are subject to sales tax. Do you agree? Why or why not?

2. Present an argument for and against the following proposition: Because IT managers must understand all phases of the business, a company should fill top management vacancies by promoting IT managers.

3. The head of the IT group in a company often is called the chief information officer (CIO) or chief technology officer (CTO). Should the CIO or CTO report to the com- pany president, to the finance department, where many of the information systems are used, or to someone or somewhere else? Why would it matter?

4. Computers perform many jobs that previously were performed by people. Will computer-based transactions and expanded e-commerce eventually replace person- to-person contact? From a customer’s point of view, is this better? Why or why not?

Projects

1. Contact at least three people at your school or a nearby company who use information systems. List the systems, the position titles of the users, and the business functions that the systems support.

2. Research newspaper, business magazine articles, or the Web to find computer companies whose stock is traded publicly. Choose a company and pretend to buy $1,000 of its stock. What is the current price per share? Why did you choose that company? Report each week to your class on how your stock is doing.

3. Do a search on the Web to learn more about agile system development approaches and spiral models. Prepare a summary of the results and a list of the sites you visited.

4. Is it really possible to measure thinking skills? Before you decide, visit the Critical Thinking Community site shown in Figure 1-35 on page 31. Prepare a brief memo with your conclusion and reasons.

Chapter Exercises

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Phase 1 Systems Planning

Apply Your Knowledge

The Apply Your Knowledge section contains four mini-cases. Each case describes a situation, explains your role in the case, and asks you to respond to questions. You can answer the questions by applying knowledge you learned in the chapter.

1 Low-Voltage Components Situation:

You are the IT manager at Low-Voltage Components, a medium-sized firm that makes specialized circuit boards. Low-Voltage’s largest customer, TX Industries, recently installed a computerized purchasing system. If Low-Voltage connects to the TX system, TX will be able to submit purchase orders electronically. Although Low-Voltage has a computerized accounting system, that system is not capable of handling EDI.

1. Should Low-Voltage develop a system to connect with TX Industries’ purchasing system? Why or why not?

2. What terms or concepts describe the proposed computer-to-computer relationship between Low-Voltage and TX Industries?

3. Is Low-Voltage’s proposed new system a transaction processing system? Why or why not?

4. Before Low-Voltage makes a final decision, should the company consider an ERP system? Why or why not?

2 Systems Analyst Salaries Situation:

As part of your job search, you decide to find out more about salaries and qualifications for systems analysts in the area where you would like to work. To increase your knowledge, search the Internet to perform the following research:

1. Find information about a career as a systems analyst. 2. Using the Internet, determine whether the Federal Bureau of Labor Statistics

lists salary information for systems analysts. If so, summarize the information you find.

3. Find at least two online ads for systems analysts and list the employers, the qualifications, and the salaries, if mentioned.

4. Find at least one ad for an IT position that specifically mentions e-commerce.

Apply Your Knowledge

42 Apply Your Knowledge

Chapter 1 Introduction to Systems Analysis and Design

3 MultiTech Interview Situation:

You have an interview for an IT position with MultiTech, a large telecommunications company, and you want to learn more about the firm and its organizational structure. To prepare for the interview, you decide to review your knowledge about corporations, including the following questions:

1. What are the four organizational levels in a typical company? 2. How can you classify companies based on their mix of products and services? 3. What is empowerment? 4. What types of information systems might a large company use?

4 Rainbow’s End Interview Situation:

Your MultiTech interview seemed to go well, but you did not get the job. During the meeting, the interviewer mentioned that MultiTech uses structured analysis and relies heavily on modeling, prototyping, and CASE tools. Thinking back, you realize that you did not fully understand those terms. As you prepare for an interview with Rainbow’s End, a large retail chain, you decide to review some IT terms and concepts. You want to be ready for the following questions:

1. What are the main differences between structured, O-O, and agile development methods?

2. What is a CASE tool and what does it do? 3. What is business process modeling and how is it done? 4. What is prototyping and why is it important?

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Phase 1 Systems Planning

Case Studies

Case studies allow you to practice specific skills learned in the chapter. Each chapter contains several case studies that continue throughout the textbook, and a chapter capstone case.

New Century Health Clinic

New Century Health Clinic offers preventive medicine and traditional medical care. In your role as an IT consultant, you will help New Century develop a new information system.

Background

Five years ago, cardiologists Timothy Jones and Dolores Garcia decided to combine their individual practices in Brea, California, to form New Century Health Clinic. They wanted to concentrate on preventive medicine by helping patients maintain health and fitness and by providing traditional medical care. Dr. Jones recently asked you to work with him as an IT consultant. He wants you to help New Century develop an information system that will support the clinic’s operations and future growth. At your initial meeting, he provided you with some background information and asked for your suggestions about how to begin.

At your desk, you begin to review New Century’s situation. The clinic is located near a new shopping mall in a busy section of the city. New Century’s staff includes four doctors, three registered nurses, four physical therapists, and six office staff workers. The clinic cur- rently has a patient base of 3,500 patients from 275 different employers, many of which provide insurance coverage for employee wellness and health maintenance. Currently, New Century accepts 34 different insurance policies.

Anita Davenport, who has been with New Century since its inception, is the office manager. She supervises the staff, including Fred Brown, Susan Gifford, Tom Capaletti, Lisa Sung, and Carla Herrera. Fred Brown handles office payroll, tax reporting, and profit distribution among the associates. Susan Gifford is responsible for the maintenance of patient records. Tom Capaletti handles most of the paperwork concerning insurance reporting and accounting. Lisa Sung has the primary responsibility for the appointment book, and her duties include making reminder calls to patients and preparing daily appointment lists. Carla Herrera is concerned primarily with ordering and organizing office and clinic supplies.

Each of the six office staff people has one or more primary responsibilities; however, all members of the staff help out whenever necessary with patient records, insurance processing, and appointment processing. In addition to their regular responsibilities, all six office work- ers are involved in the preparation of patient statements at the end of each month.

Using this information, you begin to prepare for your next meeting with Dr. Jones.

Assignments

1. Create an organization chart of the office staff using Microsoft Word or a similar program, or you can draw it by hand. In Word 2010 and Word 2007, click the Insert tab on the Ribbon, then Smart Art, then Hierarchy.

2. Identify at least three business processes that New Century performs, and explain who is responsible for the specific tasks.

3. Explain how New Century might use a transaction processing system, a business support system, and a user productivity system. For each type of system, provide a specific example, and explain how the system would benefit the clinic.

4. During the systems development process, should New Century consider any of the following: B2B, vertical and horizontal system packages, or Internet-based solutions? Explain your answers.

Case Studies

44 Case Studies

Chapter 1 Introduction to Systems Analysis and Design

PERSONAL TRAINER, INC.

Personal Trainer, Inc. owns and operates fitness centers in a dozen midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area.

Background

Cassia Umi, president, heads Personal Trainer’s management team. Three managers report to her at the firm’s Chicago headquarters: Janet McDonald, manager, finance; Tai Tranh, manager, sales and marketing; and Reed Cotter, manager, operations. The managers who run the 12 existing centers all report to Reed.

Cassia wants the new supercenter to emphasize a wide variety of personal services and special programs for members. If the supercenter approach is successful, it will become the model for Personal Trainer’s future growth. Cassia personally selected Gray Lewis, a manager with three years of fitness center experience, to run the new facility.

The new supercenter will feature a large exercise area with state-of-the-art equipment, a swimming pool, a sporting goods shop, a health food store, and a snack bar. In addition, the center will offer child care with special programs for various ages, a teen center, and a computer café. Cassia also wants members to have online access to customized training programs and progress reports.

Personal Trainer currently uses BumbleBee, a popular accounting package, to manage its receivables, payables, and general ledger. Membership lists and word processing are handled with Microsoft Office products.

Cassia believes the new supercenter will require additional data management capability, and she decided to hire Patterson and Wilder, an IT consulting firm, to help Personal Trainer develop an information system for the new operation. The firm assigned Susan Park, an experienced consultant, to work with the Personal Trainer team.

Susan’s first task was to learn more about business operations at the new center, so she requested a meeting with Gray. After some small talk, the discussion went like this:

Susan: Tell me about your plans for the new operation. I’m especially interested in what kind of

information management you’ll need.

Gray: Cassia thinks that we’ll need more information support because of the size and complexity of

the new operation. To tell the truth, I’m not so sure. We’ve had no problem with BumbleBee at

the other centers, and I don’t really want to reinvent the wheel.

Susan: Maybe we should start by looking at the similarities — and the differences — between

the new center and the existing ones.

Gray: Okay, let’s do that. First of all, we offer the same basic services everywhere. That includes the

exercise equipment, a pool, and, in most centers, a snack bar. Some centers also sell sporting

goods, and one offers child care — but not child-fitness programs. It is true that we’ve never put

all this together under one roof. And, I admit, we’ve never offered online access. To be honest,

I’m not absolutely sure what Cassia has in mind when she talks about 24/7 Web-based access.

One more feature — we plan to set up two levels of membership — let’s call them

silver and gold for now. Silver members can use all the basic services, but will pay additional fees

for some special programs, such as child fitness. Gold members will have

unlimited use of all services.

Susan: So, with all this going on, wouldn’t an overall system make your job easier?

Gray: Yes, but I don’t know where to start.

(continued)

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Phase 1 Systems Planning

Case Studies

Susan: Gray, that’s why I’m here. I’ll work with you and the rest of the team to come up with a

solution that supports your business.

Gray: Sounds good to me. When can we start?

Susan: Let’s get together first thing tomorrow. Bring along an organization chart and think

about how you plan to run the new facility. We’ll try to build a model of the new opera-

tion so we can identify the business functions. When we know what the functions are,

we can figure out what kind of information is needed or generated by each function. That

will be our starting point.

Assignments

1. Develop a business profile for Personal Trainer, based on the facts provided. List at least three of Personal Trainer’s business processes.

2. Create an organization chart for Personal Trainer using Microsoft Word or a similar program, or you can draw it by hand. In Word 2010 and Word 2007, click the Insert tab on the Ribbon, then Smart Art, then Hierarchy.

3. Review the conversation between Susan and Gray. In your opinion, is Gray totally supportive of the new system? Why or why not? Do you agree with the way that Susan responds to Gray’s comments? Why or why not?

4. Should Personal Trainer consider any of the following systems: enterprise computing, transaction processing, business support, knowledge management, or user productiv- ity? Why or why not? What opportunities might Personal Trainer have for Web-based B2C transactions in the future? What about B2B?

Original Kayak Adventures

Original Kayak Adventures (OKA) offers guided eco-tours and kayak rentals along the Hudson River.

Background

John and Edie Caputo, who are avid kayakers and amateur naturalists, founded OKA two years ago. The Caputos spent many weekends and vacations exploring the Hudson’s numerous creeks and tributaries. John was a sales representative and Edie worked for a Web design firm. Two years ago, John’s division was purchased by a rival company, which announced plans to move operations to another state. Rather than relocate, the Caputos decided to launch OKA. They reasoned that Edie could leave her job and work as a free- lance Web designer, which would provide some income while John tried to build OKA into a profitable business. John and Edie are convinced that the ecotourism market will expand greatly, and they look forward to sharing their experience and knowledge with others who enjoy nature and kayaking.

Original Kayak Adventures advertises in regional magazines and maintains a Web site, which Edie designed. Customers say that the site is attractive and informative, but the Caputos are not sure of its effectiveness in attracting new business. At this time, no other kayak rental firms operate within 20 miles of OKA’s location.

So far, the Caputos’ plan is working out well. OKA rents space at a nearby marina, where Edie runs the office and operates her Web design business. She also handles rentals when John is giving lessons or busy with a tour group. On summer weekends and holidays, Janet Jacobs, a local college student, handles telephone inquiries and reservations.

OKA’s inventory includes 16 rental kayaks of various types, eight car-top carriers, and a large assortment of accessories and safety equipment. Based on customer requests, Edie is considering adding a selection of books and videos about kayaking and ecotourism.

46 Case Studies

Chapter 1 Introduction to Systems Analysis and Design

OKA has three main business segments: rentals, instruction, and guided tours. Most customers make advance reservations for scheduled tours and instruction sessions, but sometimes space is available for last-minute customers. Rentals are split evenly between reservations and walk-in customers.

Reservations are entered in a loose-leaf binder, with separate tabs for each business activity. Edie also created a Microsoft Access database to record reservations. When she has time, she enters the reservation date, the reservation details and kayak type, and the customer informa- tion into a table, which is sorted by reservation date. Each day, she prints a reservation list. For quick reference, Edie also displays kayak availability on a wall-mounted board with color- coded magnets that show the available or reserved status of each rental kayak. In addition to the database, Edie uses an inexpensive accounting package to keep OKA’s books.

Although the OKA database handles the basic information, the Caputos have noticed some drawbacks. For example, reservations for guided tours or instruction sessions some- times conflict with John’s or Edie’s availability. The Caputos also would like to get more information about rental patterns, customer profiles, advertising effectiveness, and future business opportunities. John and Edie have talked about updating the system, but they have been too busy to do so.

Assignments

1. Develop a business profile for Original Kayak Adventures. The profile should include information about OKA’s business activities, organization, resources, customers, and potential opportunity to engage in e-commerce.

2. List OKA’s main functions and business processes. Draw a model of an OKA business process, including possible events, processes, and results.

3. What types of information systems does OKA use? Do these systems support its current and future business objectives? Why or why not?

4. From an object-oriented viewpoint, OKA treats reservations as a class. Based on the background information provided, what are some properties of reservation objects?

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Phase 1 Systems Planning

Chapter Capstone Case: SoftWear, Limited

CHAPTER CAPSTONE CASE: SoftWear, Limited

SoftWear, Limited (SWL) is a continuing case study that illustrates the knowledge and skills described in each chapter. In this case study, the student acts as a member of the SWL systems development team and performs various tasks.

Background

SoftWear, Limited, manufactures and sells casual and recreational clothing for men and women. SWL was formed about 10 years ago when a national firm sold the division during a corporate downsizing. A group of managers obtained financing and became owners of the company. With clever marketing, competitive pricing, and efficient production, SWL has grown to more than 450 employees, including the corporate headquarters and manufacturing plants. Last year, SWL had sales of $700 million.

The company employs 90 people at its Raleigh, North Carolina, headquarters, including officers, managers, and support staff. Another 30 salaried and 340 hourly people are employed at production facilities in Haskell, California, and Florence, Texas. The company also is considering new factories in Canada and Australia.

SWL maintains a Web site with information about the company and its products. SWL’s Web site features text, graphics, and audio and allows customers to send e-mail, order products from the SoftWear catalog, and request special promotional items, including beach umbrellas, hats, and T-shirts customized with the purchaser’s logo. SWL also is studying other ways to use the Internet to boost product sales and expand its marketing efforts, including a special European promotion designed to increase awareness of SWL’s Web site.

Organization

SWL’s headquarters includes the executive, operations, marketing, finance, and human resources departments. Figure 1-38 shows the organization chart of the management posi- tions within SWL. Notice that the director of information technology, Ann Hon, reports to Michael Jeremy, vice president of finance. The director of the payroll department, Amy Calico, also reports to Mr. Jeremy.

FIGURE 1-38 Organization chart of SoftWear, Limited.

48 Chapter Capstone Case: SoftWear, Limited

Chapter 1 Introduction to Systems Analysis and Design

CHAPTER CAPSTONE CASE: SoftWear, Limited (continued)

The IT department includes Ann Hon, the director; Jane Rossman, the systems support manager; Zachary Ridgefield, the user support manager; and Ella Trung, the Web support manager. Figure 1-39 shows the organization of the IT department. At SWL, the systems support group also handles new systems development, network administration, and database administration.

Director

Information Technology

Ann Hon

Manager

Systems Support and Security

Jane Rossman

Manager

User Support

Zachary Ridgefield

Manager

Web Support

Ella Trung

User Support

Specialist

Hana Rose

Web Support

Specialist

Emma Nelle

Database

Administrator

Mills Jacob

Network

Administrator

Sara M~y

Systems Analysts (2)

Programmers (2)

FIGURE 1-39 Organization chart of the IT department of SoftWear, Limited.

Systems analysts and programmers report to Jane Rossman, systems support manager. Systems analysts primarily analyze and design information systems. Programmers primarily develop, test, and implement code necessary for systems development, enhance- ments, and maintenance. In addition to the current staff, SWL is planning to hire a programmer-analyst who will divide his or her time between systems analysis and programming duties.

The technical support staff members are responsible for the system software on all SWL computers. They also provide technical advice and guidance to the other groups within the IT department.

The operations staff is responsible for centralized IT functions, including SWL’s mainframe computer, and provides network and database administration.

Current Systems

SWL uses a manufacturing and inventory control system at its factories, but the system does not exchange data with SWL’s suppliers at this time. The company’s sales processing system handles online and catalog transactions, and produces sales reports. The marketing staff, however, wants even more information about sales trends and marketing analysis data. A company intranet connects employees at all locations, and provides e-mail, shared calendars, and a document library. Most administrative employees have workstations with Microsoft Office applications, but SWL has not provided company-wide training or help desk support.

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Phase 1 Systems Planning

Chapter Capstone Case: SoftWear, Limited

CHAPTER CAPSTONE CASE: SoftWear, Limited (continued)

SWL Team Tasks

1. Write an employment advertisement for a new systems analyst position at SWL. Perform Internet research to locate examples of advertisements for systems analysts, and consider SWL’s business profile when you write the advertisement.

2. Should SWL consider any of the following systems: ERP, business support, or knowledge management? Why or why not?

3. What opportunities might SWL have for Web-based B2B transactions in the future? 4. Should SWL consider ways to increase a sense of empowerment among its employees?

Why or why not? Could user productivity software play a role in that effort? How?

Manage the SWL Project

You have been asked to manage SWL’s new information system project. One of your most important activities will be to identify project tasks and determine when they will be performed. Before you begin, you should review the SWL case in this chapter. Then list and analyze the tasks, as follows:

LIST THE TASKS Start by listing and numbering at least 10 tasks that the SWL team needs to perform to fulfill the objectives of this chapter. Your list can include SWL Team Tasks and any other tasks that are described in this chapter. For example, Task 3 might be to Draw an SWL organization chart, and Task 6 might be to Identify the various levels of SWL management. ANALYZE THE TASKS Now study the tasks to determine the order in which they should be performed. First identify all concurrent tasks, which are not dependent on other tasks. In the example shown in Figure 1-40, Tasks 1, 2, 3, 4, and 5 are concurrent tasks, and could begin at the same time if resources were available.

Other tasks are called dependent tasks, because they cannot be performed until one or more earlier tasks have been completed. For each dependent task, you must identify specific tasks that need to be completed before this task can begin. For example, you would want an organization chart to help you identify the management levels, so Task 6 cannot begin until Task 3 is completed, as Figure 1-40 shows.

FIGURE 1-40 Tasks 1, 2, 3, 4, and 5 are concurrent tasks that could be performed at the same

time. Task 6 is a dependent task that cannot be performed until Task 3 has been completed.

Chapter 3 describes project management tools, techniques, and software. To learn more, you can use the Features section on your Student Study Tool CD-ROM, or visit the Management Information Systems CourseMate Web site at www.cengagebrain.com and locate the project management resources library for this book. On the Web, Microsoft offers demo versions, training, and tips for using Project 2010. You also can visit the OpenWorkbench.org site to learn more about this free, open-source software.

Chapter 1 Introduction to Systems Analysis and Design

Ready for a Challenge?

You are a summer intern in the IT department at Game Technology. You report to the IT director, Mike McGee. Mike assigned you to work with two systems analysts: Lauren Jacksina and Cathy Ross. Lauren and Cathy both report to Felesia Stukes, manager — IT development, who reports to Mike. Joe Turner, manager — IT opera- tions also reports to Mike. Dawn Rountree, database administrator, and Greg Wade, network administrator, report to Joe.

As an intern, you are expected to keep a journal to record your day-to-day experiences and things you learn. This week, you need to list some characteristics of various systems development methods used by the IT team. Your journal should include the following topics:

• Which development method relies heavily on written documentation? • Which development method depicts system actors using diagrams? • Which development method uses a spiral model?

Practice Tasks

A. Draw an organization chart showing all IT department positions, You can use Microsoft Word or a similar program, or you can draw it by hand. In Word 2010 and Word 2007, click the Insert tab on the Ribbon, then click Smart Art, then Hierarchy.

B. Write a journal entry that answers the questions about development methods.

After you complete the Practice Tasks, to check your work and view sample answers, visit the Management Information Systems CourseMate Web site at www.cengagebrain. com, navigate to the resources for this chapter, and locate Ready for a Challenge?.

The Challenge

Three weeks ago, Mike McGee left to join a larger company, and management decided to reorganize the IT department. Felesia Stukes was promoted to IT director, and to save money, her old job was eliminated. You, Lauren, Cathy, and Joe will report to her. The rest of the team is unchanged, except that a new programmer, Annie Edenton, has been hired, reporting to Dawn Rountree. Dawn’s title has been changed to data design specialist.

To update your journal, you need to add three more pieces of information: • Which development method uses a five-phase model? • Which development method stresses intense team-based efforts? • Which development method uses a waterfall model?

Challenge Tasks

A. Draw a new organization chart showing the changes, with full names and titles. B. Write a journal entry that answers the new questions about development methods.

In additional to technical skills, IT professionals need critical thinking skills such as perception, organization, analysis,

problem-solving, and decision-making. The Ready for a Challenge feature can help you learn, practice, and apply

critical thinking skills that you can take to the workplace.

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