CONTENTS

• Chapter 1: An introduction to information system

• Chapter 2: Types of business information systems
• Chapter 3: Overview of System Development
• Chapter 4: System developemnt approaches
• System investigation
• System analysis
• System design
• System construction
• System testing
• System implementation
• System maintenence
Chapter 1: An introduction to
information systems
Trần Thị Tuyết - 2023
1. 1. What is information?
• Data consists of raw facts, such as an employee number,
total hours worked in a week, inventory part numbers, or
sales orders.
• Information is a collection of facts organized so that they
have additional value beyond the value of the individual
facts
• Knowledge is the awareness and understanding of a
set of information and the ways that information can be
made useful to support a specific task or reach a decision
The value of Information

• The value of information is directly linked to how it

helps decision makers achieve their organization’s
goals.
• Valuable information can help people and their
organizations perform tasks more efficiently and
effectively.
 The Characteristics of Valuable Information
Characteristics Definitions
Accessible Information should be easily accessible by authorized users so they can
obtain it in the right format and at the right time to meet their needs.
Accurate Accurate information is error free. In some cases, inaccurate information is
generated because inaccurate data is fed into the transformation process
Complete Complete information contains all the important facts
Economical Information should also be relatively economical to produce.
Flexible Flexible information can be used for a variety of purposes.
Relevant Relevant information is important to the decision maker
Reliable The reliability of the information depends on the reliability of the data-
collection method or the source of the information
Secure Information should be secure from access by unauthorized users.
Simple Too much information can cause overload and inability to choose the really
important one.
Timely Timely information is delivered when it is needed
Verifiable Can be checked to make sure information is correct, perhaps by checking
many sources for the same information.
1.2. What is a System?
• A system is a set of elements or components that interact
to accomplish goals.
• Systems have inputs, processing mechanisms, outputs,
and feedback.
System performance and standards
• Efficiency is a measure of what is produced divided by
what is consumed. It can range from 0 to 100 percent.
• Effectiveness is a measure of the extent to which a
system achieves its goals. It can be computed by dividing
the goals actually achieved by the total of the stated goals
• A system performance standard is a specific objective of
the system. After standards are established, system
performance is measured and compared with the standard.
Variances from the standard are determinants of system
performance.
1.3. What is information system?
• An information system (IS) is a set of interrelated
components that collect, manipulate, store, and
disseminate data and information and provide a
feedback mechanism to meet an objective.
• Feedback is information from the system that is used to make changes to input or
processing activities.
• Feedback is also important for managers and decision makers

Processing means
Input is the converting or transforming Output involves
activity of data into useful outputs. producing
gathering and Processing can involve useful
capturing raw making calculations, information,
data. comparing data and taking usually in the
alternative actions, and form of
storing data for future use. documents and
Processing data into useful reports.
information is critical in
business settings.
1.4. A computer-based information system
(CBIS)
• A computer-based
information system
(CBIS) is a single set
of hardware,
software, databases,
telecommunications,
people, and
procedures that are
configured to collect,
manipulate, store,
and process data into
information.
Components of CBIS
• Hardware consists of computer equipment used to perform
input, processing, and output activities.
• Software consists of the computer programs that govern the
operation of the computer.
• A database is an organized collection of facts and information,
typically consisting of two or more related data files.
• Telecommunications is the electronic transmission of signals
for communications, which enables organizations to carry out
their processes and tasks through effective computer networks.
• Networks connect computers and equipment in a building, around the
country, or around the world to enable electronic communication
• The Internet is the world’s largest computer network, consisting of
thousands of interconnected networks, all freely exchanging information
Components of CBIS (Cont.)
• People can be the most important element in most
computer-based information systems. They make the
difference between success and failure for most
organizations. Information systems personnel include all
the people who manage, run, program, and maintain the
system.
• Procedures include the strategies, policies, methods, and
rules for using the CBIS, including the operation,
maintenance, and security of the computer.
2. 1. Business information systems
• The most common types of information systems used in business
organizations are those designed for electronic and mobile
commerce, transaction processing, management information, and
decision support. In addition, some organizations employ special-
purpose systems, such as virtual reality, that not every organization
uses. Together, these systems help employees in organizations
accomplish routine and special tasks—from recording sales,
processing payrolls, and supporting decisions in various departments,
to providing alternatives for large-scale projects and opportunities.
2.2. Types of business information systems
2.3. Comparing business information systems
3. System development
• Systems development is the activity
of creating or modifying business
systems.
• Developing information systems to
meet business needs is highly
complex and difficult—so much so
that it is common for IS projects to
overrun budgets and exceed
scheduled completion dates.
• One strategy for improving the results
of a systems development project is
to divide it into several steps, each
with a well-defined goal and set of
tasks to accomplish.
System development Steps

What is the problem? Is it worth solving?

What must the information system do to

solve the problem?

How will the information system do what it

must do to obtain the problem solution?

What/Where are the resources? And

how to place them into operation?

How to ensure the system operation?

How to modify the system to meet the
changing business needs?
Principles
• The value of information is directly linked to how it helps
decision makers achieve the organization’s goals.
• Computers and information systems are constantly making it
possible for organizations to improve the way they conduct
business.
• Knowing the potential impact of information systems and
having the ability to put this knowledge to work can result in a
successful personal career and organizations that reach their
goals.
• System users, business managers, and information systems
professionals must work together to build a successful
information system.
• Information systems must be applied thoughtfully and carefully
so that society, business, and industry around the globe
can reap their enormous benefits.
Chapter 2: Types of business
information systems
Trần Thị Tuyết - 2021
Contents
1. E-commerce and M-
commerce
2. Enterprise systems
1. Transaction processing
system (TPS)
2. Enterprise resource
planning (ERP)
3. Supply Chain Management
(SCM)
4. Customer Relationships
Management (CRM)
3. Management and Decision
Support system (DSS)
4. Knowledge Management
System (KMS) and Specialized
information system
1.1 E-commerce
• Electronic commerce is the conducting of business activities (e.g.,
distribution, buying, selling, marketing, and servicing of products or services)
electronically over computer networks such as the Internet, extranets, and
corporate networks
• Business-to-business (B2B) e-commerce is a subset of e-commerce
where all the participants are organizations. B2B e-commerce is a useful tool
for connecting business partners in a virtual supply chain to cut resupply
times and reduce costs
• Business-to-consumer (B2C) e-commerce: A form of e-commerce in
which customers deal directly with an organization and avoid intermediaries.
• Consumer-to-consumer (C2C) e-commerce is a subset of e-commerce that
involves consumers selling directly to other consumers. E.g: eBay
• E-Government is the use of information and communications technology to
simplify the sharing of information, speed formerly paper-based processes,
and improve the relationship between citizens and government.
• Online marketers must create specific trust-building
strategies for their Web sites by analyzing their customers,
products, and services. A perception of trustworthiness can
be created by implementing one or more of the following
strategies:
• Demonstrate a strong desire to build an ongoing relationship with
customers by giving first-time price incentives, offering loyalty
programs, or eliciting and sharing customer feedback.
• Demonstrate that the company has been in business for a long time.
• Make it clear that considerable investment has been made in the
Web site.
• Provide brand endorsements from well-known experts or well-
respected individuals.
• Demonstrate participation in appropriate regulatory programs or
industry associations.
1.2. M-commerce
• Because m-commerce devices usually have a single user,
they are ideal for accessing personal information and
receiving targeted messages for a particular consumer.
Through m-commerce, companies can reach individual
consumers to establish one-to-one marketing
relationships and communicate whenever it is
convenient—in short, anytime and anywhere.
• Examples:
• Mobile banking
• Mobile Price comparison
• Mobile advertising
• Mobile coupons
1.3. Advantages of E-commerce & M-commerce
• Reduce costs
• Speed the flow of goods and information
• Increase accuracy
• Improve customer service
2. Enterprise systems
• An enterprise system is central to an organization and ensures
that information can be shared across all business functions
and all levels of management to support the running and
managing of a business.
• Businesses rely on enterprise systems to perform many of their
daily activities in areas such as product supply, distribution,
sales, marketing, human resources, manufacturing, accounting,
and taxation so that work is performed quickly, while avoiding
waste and mistakes.
• This collection of processed transactions also forms a
storehouse of data invaluable to decision making.
• The ultimate goal is to satisfy customers and provide a
competitive advantage by reducing costs and improving service.
2.1. TPS
• Every organization has many transaction processing systems (TPS),
which capture and process the detailed data necessary to update
records about the fundamental business operations of the
organization.
• These systems include order entry, inventory control, payroll,
accounts payable, accounts receivable, and the general ledger,...
• The input includes basic business transactions, such as customer
orders, purchase orders, receipts, time cards, invoices, and customer
payments.
• The processing activities include data collection, data editing, data
correction, data manipulation, data storage, and document
production.
• The result of processing business transactions is that the
organization’s records are updated to reflect the status of the
operation at the time of the last processed transaction.
TPS methods
Batch processing system Online transaction
processing (OLTP)
A form of data processing A form of data processing
where business transactions where each transaction is
are accumulated over a processed immediately,
period of time and prepared without the delay of
for processing as a single accumulating transactions
unit or batch. into a batch.
TPS’s objectives
• Capture, process, and update databases of business data
required to support routine business activities.
• Ensure that the data is processed accurately and
completely.
• Avoid processing fraudulent transactions.

• Produce timely user responses and reports.

• Reduce clerical and other labor requirements.

• Help improve customer service.

• Achieve competitive advantage.
Typical TPSs
• Order processing systems: Running these systems efficiently and
reliably is so critical that the order processing systems are sometimes
referred to as the “lifeblood of the organization.”
• Accounting systems: The accounting systems must track the flow of
data related to all the cash flows that affect the organization.
• Purchasing systems: The traditional transaction processing systems
that support the purchasing business function include inventory control,
purchase order processing, receiving, and accounts payable.
• Payroll transaction systems:
Integration of firm’s TPSs
TPSs and competitive advantage
TPSs for SMEs
Transaction processing activities
• TPSs capture and process
data that describes
fundamental business
transactions.
• This data is used to update
databases and to produce a
variety of reports used by
people both within and
outside the enterprise.
• The business data goes
through a transaction
processing cycle (TPC)that
includes data collection, data
editing, data correction, data
manipulation, data storage,
and document production.
TPC - Data collection
• Data collection: Capturing and gathering all data
necessary to complete the processing of transactions.
• Data collection begins with a transaction (e.g., taking a
customer order) and results in data that serves as input to
the TPS.
• Data should be captured at its source and recorded
accurately in a timely fashion, with minimal manual effort,
and in an electronic or digital form that can be directly
entered into the computer.
TPC (continue)
• Data editing: The process of checking data for validity and completeness.
The codes associated with an individual transaction are edited against a
database containing valid codes. If any code entered (or scanned) is not
present in the database, the transaction is rejected
• Data correction: The process of reentering data that was not typed or
scanned properly. If the code is misread or does not exist in the table, the
checkout clerk is given an instruction to rescan the item or type the
information manually.
• Data manipulation: The process of performing calculations and other data
transformations related to business transactions. Data manipulation can
include classifying data, sorting data into categories, performing calculations,
summarizing results, and storing data in the organization’s database for
further processing
• Data storage: The process of updating one or more databases with new
transactions. After being updated, this data can be further processed and
manipulated by other systems so that it is available for management reporting
and decision making.
• Document production: The process of generating output records and
reports.
Point-of-Sale Transaction Processing System: The purchase of items at the
checkout stand updates a store’s inventory database and its database
of purchases
Control and management issues
• Disaster Recovery Plan: A formal plan describing the
actions that must be taken to restore computer operations
and services in the event of a disaster.
• Transaction processing system audit: A check of a
firm’s TPS systems to prevent accounting irregularities
and/or loss of data privacy.
• Does the system meet the business need for which it was
implemented?
• What procedures and controls have been established?
• Are these procedures and controls being used properly?
• Are the information systems and procedures producing
accurate and honest reports?
2.2. Enterprise resource planning (ERP)
• ERP is a set of integrated programs that manage a company’s vital
business operations for an entire multisite, global organization
• Recall that a business process is a set of coordinated and related
activities that takes one or more types of input and creates an output of
value to the customer of that process.
• The core of the ERP system is a database that is shared by all users so
that all business functions have access to current and consistent data
for operational decision making and planning
Example of business process
Advantages of ERP
• Improved Access to Data for Operational Decision Making
• Elimination of Costly, Inflexible Legacy Systems
• Improvement of Work Processes
• Upgrade of Technology Infrastructure
Disadvantages of ERP
• Expense and Time in Implementation
• Difficulty Implementing Change
• Difficulty Integrating with Other Systems
• Risks in Using One Vendor
• Risk of Implementation Failure
Tips for avoiding many common causes for
failed ERP implementations:
• Assign a full-time executive to manage the project.

• Appoint an experienced, independent resource to provide project

oversight and to verify and validate system performance.
• Allow sufficient time for transition from the old way of doing things to
the new system and new processes.
• Plan to spend considerable time and money training people; many
project managers recommend that $10,000–$20,000 per employee
be budgeted for training of personnel.
• Define metrics to assess project progress and to identify project-
related risks.
• Keep the scope of the project well defined and contained to essential
business processes.
• Be wary of modifying the ERP software to conform to your firm’s
business practices.
ERP for SMEs

Open source ERP system

2.3. Production and supply chain management
2.4. Customer relationship management (CRM)
• CRM system helps a company manage all aspects of
customer encounters, including marketing and
advertising, sales, customer service after the sale, and
programs to keep and retain loyal customers.
• The goal of CRM is to understand and anticipate the
needs of current and potential customers to increase
customer retention and loyalty while optimizing the way
that products and services are sold.
• CRM is used primarily by people in the sales, marketing,
and service organizations to capture and view data about
customers and improve communications.
• CRM software automates and
integrates the functions of sales,
marketing, and service in an
organization to capture data about
every contact a company has with
a customer through every channel
and store it in the CRM system so
the company can truly understand
customer actions.
• CRM software helps an
organization build a database
about its customers that describes
relationships in sufficient detail so
that management, salespeople,
customer service providers—and
even customers—can access
information to match customer
needs with product plans and
offerings, remind them of service
requirements, and know what
other products they have
purchased
Key features of CRM
• Contact management: The ability to track data on individual customers
and sales leads and access that data from any part of the organization
• Sales management: The ability to organize data about customers and
sales leads and then to prioritize the potential sales opportunities and
identify appropriate next steps
• Customer support: The ability to support customer service reps so that
they can quickly, thoroughly, and appropriately address customer
requests and resolve customers’ issues while at the same time collecting
and storing data about those interactions
• Marketing automation: The ability to capture and analyze all customer
interactions, generate appropriate responses, and gather data to create
and build effective and efficient marketing campaigns
• Analysis: The ability to analyze customer data to identify ways to
increase revenue and decrease costs, identify the source of the firm’s
“best customers,” and determine how to retain them and find even more
of them
Top-rated CRM systems
 Hosted Software Model for Enterprise Software
• Many business application software vendors are pushing the use of the hosted
software model for SMEs. The goal is to help customers acquire, use, and benefit
from the new technology while avoiding much of the associated complexity and
high start-up costs.
• SAP, Microsoft, NetSuite, Intacct, Oracle, BizAutomation.com, Salesforce.com,
NetBooks, and Workday are among the software vendors who offer hosted
versions of their ERP or CRM software at a cost of $50–$200 per month per user.
Leading
ERP
software
vendors
3. Management and Decision Support Systems
• The ultimate goal of management information and
decision support systems is to help managers and
executives at all levels make better decisions and solve
important problems.
 Decision making and problem solving
• intelligence stage: potential
problems or opportunities are
identified and defined.
• design stage: alternative
solutions to the problem are
developed.
• choice stage: selecting a
course of action.
problem solving: A process
that goes beyond decision
making to include the
implementation stage.
• implementation stage: a
solution is put into effect.
• monitoring stage: decision
makers evaluate the
implementation.
Programmed versus Non-programmed Decisions
Programmed Decisions Non-programmed Decisions
• Being made using a rule, • Dealing with unusual or exceptional
procedure, or quantitative method situations.
• Being easy to computerize using • Being difficult to quantify
traditional information systems • Containing unique characteristics,
• The relationships between system and standard rules or procedures
elements are fixed by rules, might not apply to them
procedures, or numerical • Being suitable for unstructured or
relationships. ill-structured problems which are
• Being suitable for structured not routine and rules and
problems that are routine and in relationships are not well defined.
which the relationships are well
defined.

MIS DSS
The benefits of MIS and DSS
3.1. MIS
• A management information system (MIS) is an integrated
collection of people, procedures, databases, and devices
that provides managers and decision makers with
information to help achieve organizational goals.
• MISs can often give companies and other organizations a
competitive advantage by providing the right information
to the right people in the right format and at the right
time.
• scheduled report: A report produced
periodically, or on a schedule, such as
daily, weekly, or monthly
data
• key-indicator report: A summary of data
the previous day’s critical activities;
typically available at the beginning of data
each workday
• demand report: A report developed to
give certain information at someone’s
request
reports
• exception report: A report
automatically produced when a
situation is unusual or requires
management action
• drill-down report: A report providing
increasingly detailed data about a
situation.
Source of management information
Functional
MISs
3.2. DSS
• A DSS is an organized collection of people, procedures,
software, databases, and devices used to help make
decisions that solve problems.
• The focus of a DSS is on decision-making effectiveness
when faced with unstructured or semi-structured business
problems.
• DSS should be designed, developed, and used to help an
organization achieve its goals and objectives.
• Decision support systems offer the potential to generate
higher profits, lower costs, and better products and
services.
Characteristics of a Decision Support System
• Provide rapid access to information.
• Handle large amounts of data from different sources.
• Provide report and presentation flexibility.
• Offer both textual and graphical orientation.
• Support drill-down analysis.
• Perform complex, sophisticated analysis and comparisons
using advanced software packages.
• Support optimization, satisficing, and heuristic approaches
• Perform simulation analysis—the ability of the DSS to duplicate
the features of a real system, where probability or uncertainty is
involved.
Capabilities of a Decision Support System
• Support for Problem-Solving Phases
• Support for Different Decision Frequencies
• Support for Different Problem Structures
• Support for Various Decision-Making Levels
 Components
of DSS

• DBMS = database
management system
• MMS: model
management system
 The Model Base
• The model base allows managers and decision makers to perform
quantitative analysis on both internal and external data. A model-driven DSS
primarily performs mathematical or quantitative analysis. The model base
gives decision makers access to a variety of models so that they can explore
different scenarios and see their effects
• Model management software (MMS) can coordinate the use of models in a
DSS, including financial, statistical analysis, graphical, and project-
management models. Depending on the needs of the decision maker, one or
more of these models can be used
Comparison MIS and DSS
 4.1. KMS and specialized systems
• Knowledge is the awareness and
understanding of a set of information
and the ways that information can be knowle
made useful to support a specific
task or reach a decision
dge
• The overall goal of knowledge
management and the specialized
systems discussed is to help people
and organizations achieve their
goals.
information
• In some cases, knowledge
management and these specialized
systems can help an organization
achieve a long-term, strategic
advantage data
KMS
• Explicit knowledge is objective and can be measured
and documented in reports, papers, and rules
• Tacit knowledge, on the other hand, is hard to
measure and document and typically is not objective
or formalized
=> Convert tacit knowledge to explicit knowledge to
make the knowledge easier to measure, document, and
share with others.
Technology to Support KM
• Organizational learning
• Data mining
• Business intelligence.
• ERP tools
• Groupware
KM organizations and resources
Artificial Intelligence
• Artificial intelligence systems: People, procedures,
hardware, software, data, and knowledge needed to
develop computer systems and machines that
demonstrate the characteristics of intelligence.
Strategy and Information Systems
(see appendix 2.1)
Chapter 3: Overview of System
Development
Trần Thị Tuyết - 2023
Questions
1. Why should an organization develop a system?
2. Who should participate in a system development
project?
3. How to plan for IS project?
4. What approaches are used to develop an IS project?
5. Factors affecting system development success?
Typical
reasons to
initiate
system
development
 Participants in system development

A specialist
responsible for
modifying or
People who, either A professional developing
themselves or through specializing in analyzing programs to
the organization they and designing business satisfy user
represent, ultimately systems requirements
benefit from the
systems development
project

People who will interact with

the system regularly.
IS planning
The term
information
systems planning
refers to translating
strategic and
organizational
goals into systems
development
initiatives
 Strategic plan

The steps Develop

overall
Previously
unplanned
systems
of IS objectives projects

planning Identify IS
projects

Set priorities
and select
projects

Set
Develop IS Analyze
schedules
planning resource
and
document requirements
deadlines
Establishing objectives for system development
• The overall objective of systems development is to achieve
business goals, not technical goals, by delivering the right
information to the right person at the right time.

Performance objectives Cost objectives

• The quality or usefulness of the • Development costs.
output. • Costs related to the
• The accuracy of the output uniqueness of the system
• The speed at which output is application.
generated • Fixed investments in hardware
• The scalability of the resulting and related equipment
system • Ongoing operating costs of the
• The risk of the system. system
Approaches to system development
1. Traditional system development life cycle
2. Prototyping
3. Rapid Application Development, Agile
Development, Joint Application Development
4. The End-user Systems Development
5. Outsourcing and On-demand computing
Traditional system development life cycle
Systems investigation: problems and opportunities are identified and
considered in light of the goals of the business.

System analysis: Studying existing systems and work processes to

identify strengths, weaknesses, and opportunities for improvement. The
major outcome of systems analysis is a list of requirements and priorities

System design: defines how the information system will do what it must
do to obtain the problem solution.

System implementation: involving the creation or acquisition of various

system components detailed in the systems design, assembling them,
and placing the new or modified system into operation

Systems maintenance and review : ensures the system operates

and modifies the system so that it continues to meet changing
business needs.
Systems development life cycle (SDLC)
Traditional system development life cycle
 Prototyping
• Prototyping is an iterative approach to
systems development.
Prototyping (cont)
Rapid Application Development and Joint Application
Development
• Rapid application development (RAD) A systems
development approach that employs tools, techniques,
and methodologies designed to speed application
development.
• Joint application development (JAD) A process for data
collection and requirements analysis in which users,
stakeholders, and IS professionals work together to
analyze existing systems, propose possible solutions, and
define the requirements of a new or modified system.
Agile development or extreme programming (XP) allows the
systems to change as they are being developed. Agile
development requires frequent face-to-face meetings with
the systems developers and users as they modify, refine,
and test how the system meets users’ needs and what its
capabilities are.
Advantages and Disadvantages of RAD
The End-user Systems Development
• The term end-user systems development describes any
systems development project in which business managers
and users assume the primary effort
• User-developed systems range from the very small (such as
a software routine to merge form letters) to those of
significant organizational value (such as customer contact
databases for the Web).
• With end-user systems development, managers and other
users can get the systems they want without having to wait
for IS professionals to develop and deliver them.
• Some end users don’t have the training to effectively develop
and test a system.
• Some end-user systems are also poorly documented.
• Some end users spend time and corporate resources
developing systems that were already available
Outsourcing and On-Demand Computing
Outsourcing and On-Demand Computing (cont.)

Reducing Losing internal

costs, expertise
Obtaining state- Being difficult to
of-the-art achieve a
technology, competitive
Eliminating advantage
staffing and Security
Comparison of developed and off-the-shelf software
Factors affecting system development success
1. Degree of Change
2. Quality and Standards
3. Use of Project Management Tools
4. Use of Computer-Aided Software Engineering (CASE)
Tools
5. Object-Oriented Systems Development
Degree of change
• The degree of change can greatly affect the probability of
a project’s success.
Managing Change
Managing change requires the ability to recognize existing or potential
problems (particularly the concerns of users) and deal with them before
they become a serious threat to the success of the new or modified
system.
Common problems:
• Fear that the employee will lose his job, power, or influence within the
organization
• Belief that the proposed system will create more work than it eliminates
• Reluctance to work with “computer people”
• Anxiety that the proposed system will negatively alter the structure of the
organization
• Belief that other problems are more pressing than those solved by the
proposed system or that the system is being developed by people unfamiliar
with “the way things need to get done”
• Unwillingness to learn new procedures or approaches
Quality and Standards
 Use of Project Management Tools
• Project schedule is a detailed description of what is to be done. Each project
activity, the use of personnel and other resources, and expected completion
dates are described
• Project milestone is a critical date for the completion of a major part of the
project. The completion of program design, coding, testing, and release are
examples of milestones for a programming project.
• Project deadline is the date the entire project is to be completed and
operational—when the organization can expect to begin to reap the benefits of
the project
• Critical path consists of all activities that, if delayed, would delay the entire
project. These activities have zero slack time. Any problems with critical-path
activities will cause problems for the entire project.
• Program Evaluation and Review Technique (PERT) creates three time
estimates for an activity: shortest possible time, most likely time, and longest
possible time
• Gantt chart is a graphical tool used for planning, monitoring, and coordinating
projects; it is essentially a grid that lists activities and deadlines.
Use of Computer-Aided Software Engineering
(CASE) Tools
• CASE tools automate many of the tasks required in a
systems development effort and encourage adherence to
the SDLC, thus instilling a high degree of rigor and
standardization to the entire systems development
process.
Advantages and Disadvantages of CASE
Object-Oriented Systems Development (OOSD)

• OOSD is an approach to systems development that combines the

logic of the systems development life cycle with the power of object-
oriented modeling and programming.
• OOSD tasks:
• Identifying potential problems and opportunities within the organization that would
be appropriate for the OO approach.
• Defining what kind of system users require.
• Designing the system.
• Programming or modifying modules.
• Evaluation by users.
• Periodic review and modification.
 Chapter 4: System
Development Approaches
Trần Thị Tuyết - 2023
Contents
1. Waterfall development process
2. Agile development
1. Waterfall development process
Waterfall development process
1.1 System investigation
The purpose is to identify potential problems and
opportunities and consider them in light of the goals of
the company.

1. Review system investigation request.

2. Identify and recruit team leader and team members.
3. Develop budget and schedule for investigation.
4. Perform investigation.
5. Perform preliminary feasibility analysis.
6. Prepare draft of investigation report.
7. Review results of investigation with steering team.
Initiating Systems Investigation
Systems request form: A document filled out by
someone who wants the IS department to initiate systems
investigation.

• Problems in or opportunities for the system

• Objectives of systems investigation
• Overview of the proposed system
• Expected costs and benefits of the proposed system
Participants in Systems Investigation
Feasibility Analysis
• Technical feasibility: is concerned with whether the
hardware, software, and other system components can be
acquired or developed to solve the problem.
• Economic feasibility: determines whether the project
makes financial sense and whether predicted benefits
offset the cost and time needed to obtain them
• Net present value is an often-used approach for ranking
competing projects and for determining economic
feasibility. The net present value represents the net
amount by which project savings exceed project
expenses, after allowing for the cost of capital and the
passage of time
• Legal feasibility determines whether laws or regulations
can prevent or limit a systems development project
• Operational feasibility: is a measure of whether the
project can be put into action or operation
• Schedule feasibility determines whether the project
can be completed in a reasonable amount of time
The Systems Investigation Report
• systems investigation report: A summary of the results
of the systems investigation and the process of feasibility
analysis and recommendation of a course of action.

The systems investigation report

is reviewed by senior
management, often organized as
an advisory committee, or
steering committee, consisting
of senior management and users
from the IS department and other
functional areas.
 1.2. System analysis
• The overall emphasis of analysis is
gathering data on the existing
system, determining the
requirements for the new system,
considering alternatives within
these constraints, and investigating
the feasibility of the solutions.
• The primary outcome of systems
analysis is a prioritized list of
systems requirements.
 Steps of system analysis
1. Identify and recruit team leader and team members.
2. Develop budget and schedule for system analysis
activities.
3. Study existing system.
4. Develop prioritized set of requirements.
5. Identify and evaluate alternative solutions.
6. Perform feasibility analysis.
7. Prepare draft of system analysis report.
8. Review results of system analysis with steering team
 Participants in Systems Analysis
• Members of the original investigation team
• Tasks
• Develop a list of specific objectives and activities
• Set schedule for meeting the objectives and completing the
specific activities
• Set deadlines for each stage
• Make statement of the resources required at each stage, such as
clerical personnel, supplies…
• Establish major milestones to help team monitor progress and
determine problems or delays occur.
Requirements Analysis
• The overall purpose of requirements analysis is to
determine user, stakeholder, and organizational needs.
• The role of the systems analyst during the analysis phase
is to critically and creatively evaluate needs and define
them clearly so that the systems can best meet them.
• One of the most difficult procedures in systems analysis is
confirming user or systems requirements.
• Communications problems can interfere with determining
these requirements.
Requirements Analysis techniques
• Asking directly: is an approach that asks users,
stakeholders, and other managers about what they
want and expect from the new or modified system
• Critical Success Factors managers and decision
makers are asked to list only the factors that are critical to
the success of their area of the organization, starting from
these CSFs, the system inputs, outputs, performance, and
other specific requirements can be determined.
Requirements Analysis Tools
• entity-relationship diagrams, data-flow diagrams, screen
and report layout forms, and other types of documentation
are stored in the CASE repository.
Processes
sự dụng cái này

Data-flow diagram (DFD): A

diagram used during both the
analysis and design phases to
document the processes of the
current system or to provide a
model of a proposed new
system.
Database
Entity-relationship (ER) diagram for a
customer order database
Development of ER diagrams helps ensure
that the logical structure of application
programs is consistent with the data
relationships in the database.
 Security and Control
New system security and
control requirements must
be developed within the
organization’s existing
policies, standards, and
guidelines.
• Access controls, including controls to authenticate and permit access
only to authorized individuals
• Encryption of electronic customer information, including while in
transit or in storage on networks or systems to which unauthorized
individuals may have access
• Dual control procedures, segregation of duties, and employee
background checks for employees with responsibilities for or access
to customer, employee, or organization-sensitive information
• Monitoring systems and procedures to detect actual and attempted
attacks on or intrusions into information systems
• Measures to protect against destruction, loss, or damage of customer,
employee, or organization-sensitive data due to potential
environmental hazards, such as fire and water damage, technological
failures, or disasters such as hurricanes and terrorism
• Business resumption procedures to get the system up and running
with no major business disruption and with no loss of data in the
event of a disaster (e.g., fire, hurricane, terrorism)
System Performance đánh giá hệ thống hiện tại trên 6 tiêu
chí này

Timeliness Ease of
Scalability
of output Use

System
response Availability Reliability
time
The Systems Analysis Report
• A formal systems analysis report should cover the following elements:
• The strengths and weaknesses of the existing system from a
stakeholder’s perspective
• The user/stakeholder requirements for the new system (also called
the functional requirements)
• The organizational requirements for the new system
• A description of what the new information system should do to solve
the problem
1.3. System design
• Systems design: The stage of systems development
that answers the question “How will the information
system solve a problem?”

Logical Physical
design design
Logical design
• The logical design refers to what the system will do. It describes
the functional requirements of a system.
• Without logical design, the technical details of the system (such
as which hardware devices should be acquired) often obscure
the best solution.
• Logical design involves planning the purpose of each system
element, independent of hardware and software considerations.
• The logical design specifications that are determined and
documented include output, input, process, file and database,
telecommunications, procedures, controls and security, and
personnel and job requirements.
Physical design
• The physical design refers to how the tasks are
accomplished, including how the components work
together and what each component does.
• Physical design specifies the characteristics of the system
components necessary to put the logical design into
action.
• The characteristics of the hardware, software, database,
telecommunications, personnel, and procedure and
control specifications must be described in detail.
Steps of system design
1. Identify and recruit team leader and team members.
2. Develop schedule and budget for system design
activities.
3. Design user interface.
4. Design system security and controls.
5. Design disaster recovery plan.
6. Design database.
7. Perform feasibility analysis.
8. Prepare draft of system design report.
9. Review results of system design with steering team.
Interface Design
• A sign-on procedure consists of identification numbers, passwords,
and other safeguards needed for someone to gain access to
computer resources.
• With interactive processing, people directly interact with the
processing component of the system through terminals or networked
PCs. With a menu-driven system, users simply pick what they want
to do from a list of alternatives.
Principles How to apply principles of good user interface design.

Strive for Consistent sequences of actions should be required in similar

consistency situations; identical terminology should be used in prompts, menus, and
help screens; and consistent commands should be
employed throughout.
Offer For every user action, there should be some system feedback. For
informative frequent and minor actions, the response can be modest, while for
feedback infrequent and major actions, the response should be more substantial.
Offer simple As much as possible, design the system so the user cannot make a
error serious error. If an error is made, the system should be able to detect
handling the error and offer simple, comprehensible instructions for handling the
error.
One primary Every screen should support a single action of real value to the user.
action
per screen
Provide Show only what is necessary on each screen. If the user is making a
progressive choice, show enough information to allow the user to choose and then
disclosure display details on a subsequent screen
Strive for The graphic design elements used in an interface should be simple and
aesthetic clean, pleasant to look at, and easy to understand
integrity
Design of System Security and Controls
• Designers must also develop system security and controls
for all aspects of the system, including hardware,
software, database systems, telecommunications, and
Internet operations.
• These key considerations involve
• error prevention, detection, and correction;
• disaster planning and recovery;
• systems controls.
Using system controls to enhance security
Disaster Planning and Recovery
• Disaster planning is the process of anticipating and
providing for disasters. A disaster can be an act of nature
(a flood, fire, or earthquake) or a human act (terrorism,
error, labor unrest, or erasure of an important file).
Disaster planning often focuses primarily on two issues:
maintaining the integrity of corporate information and
keeping the information system running until normal
operations can be resumed.
• Disaster recovery is the implementation of the disaster
plan.
• The primary tools used in disaster planning and recovery
are hardware; software; and database,
telecommunications, and personnel backups.
System control
• Determining potential
problems
• Ranking the importance
of these problems
• Planning the best place
and approach to prevent
problems
• Deciding the best way to
handle problems if they
occur
Evaluating and Selecting a Systems Design
• preliminary evaluation: An initial assessment whose purpose is to
dismiss the unwanted proposals; begins after all proposals have been
submitted.
• final evaluation: A detailed investigation of the proposals offered by
the vendors remaining after the preliminary evaluation.
Evaluation Techniques
• Group Consensus: a decision-making group is appointed and
given the responsibility of making the final evaluation and selection
• Cost/benefit analysis: An approach that lists the costs and
benefits of each proposed system. After they are expressed in
monetary terms, all the costs are compared with all the benefits.
• Benchmark test: An examination that compares computer
systems operating under the same conditions.
• Point evaluation system: An evaluation process in which each
evaluation factor is assigned a weight, in percentage points, based
on importance. Then each proposed system is evaluated in terms
of this factor and given a score ranging from 0 to 100. The scores
are totaled, and the system with the greatest total score is
selected.
Freezing Design Specifications
The Design Report
• System specifications are the final results of systems
design. They include a technical description that details
system outputs, inputs, and user interfaces as well as all
hardware, software, databases, telecommunications,
personnel, and procedure components and the way
these components are related.
• The specifications are contained in a design report,
which is the primary result of systems design.
• The design report reflects the decisions made for systems
design and prepares the way for systems implementation.
1.4. Construction
• System construction: The phase of system development
that converts the system design into an operational
system by acquiring and installing hardware and software,
coding and testing software programs, creating and
loading data into databases, and performing initial
program testing.

1. Code software components.

2. Create and load data.
3. Perform unit testing.
Code software components
• Technical documentation includes written details that computer
operators follow to execute the program and that analysts and
programmers use to solve problems or modify the program.
Technical documentation explains the purpose of every major
piece of computer code. It also identifies and describes key
variables.
• User documentation is developed for the people who use the
system. In easy-to-understand language, this type of
documentation shows how the program can and should be
used to perform user tasks. Linx Software produces LinxCRM,
a customer relationship management system. The company
implemented special software to help it create high-quality user
documentation including annotated screen shots from the
system.
Create and load data
1.5. Integration and Testing
1. Integration testing
2. System testing
3. Volume testing
4. User acceptance testing
Tests conducted on an information system
1.6. System implementation
1. User preparation
2. Site preparation
3. Installation
4. Cutover
Acquiring Hardware from an IS Vendor
• Organizations can purchase, lease, or rent computer
hardware and other resources from an IS vendor.
• Organizations often consider virtual machines, such as
servers, in acquiring hardware.
• Companies can pay only for the computing services that
they use, called “pay-as-you-go,” “on-demand,” or “utility”
computing. This approach requires an organization to pay
only for the computer power it uses, as it would pay for a
utility such as electricity.
Acquiring Software: Make or Buy?
Acquiring Database and Telecommunications Systems

• Make
• Buy
• Pay-as-you-go,” “on-demand,” or “utility” computing.
• Open sources
• Virtual databases
• Databases as a service
User Preparation
• User preparation: The process of readying managers,
decision makers, employees, other users, and
stakeholders for new systems.
• When a new operating system or application software
package is implemented, user training is essential.
• Because user training is so important, some companies
provide training for their clients, including in-house,
software, video, Internet, and other training approaches.
IS Personnel: Hiring and Training
• Depending on the size of the new system, an organization
might have to hire and train new IS personnel.
• An IS manager, systems analysts, computer
programmers, data-entry operators, and similar personnel
might be needed for the new or modified system
Site Preparation
• Site preparation is the preparation of the location of a new
system.
• Building
• Special floor
• Wiring,
• Air conditioning,
• Cables
• additional power circuits
……
Installation
• Installation is the process of physically placing the
computer equipment on the site and making it operational.
• Although normally the manufacturer is responsible for
installing computer equipment, someone from the
organization (usually the IS manager) should oversee the
process, making sure that all equipment specified in the
contract is installed at the proper location.
• After the system is installed, the manufacturer performs
several tests to ensure that the equipment is operating as
it should.
Start-Up
• start-up (also called cutover): The process of making
the final tested information system fully operational.
• Various start-up approaches are available
• direct conversion (also called plunge or direct cutover)
• phase-in approach (also called piecemeal approach)
• pilot start-up
• Parallel start-up
direct conversion
• Stopping the old system and starting the new system on a
given date.
phase-in approach
• Slowly replacing components of the old system with those
of the new one. This process is repeated for each
application until the new system is running every
application and performing as expected; also called a
piecemeal approach.
pilot start-up
• Running the new system for one group of users rather
than all users.
Parallel start-up
• Running both the old and new systems for a period of
time and comparing the output of the new system closely
with the output of the old system; any differences are
reconciled. When users are comfortable that the new
system is working correctly, the old system is eliminated.
 2. Agile Development
• Agile development: An iterative system development
process that develops the system in "sprint“ increments
lasting from two weeks to two months.
• Scrum: An agile development framework that emphasizes
a team-based approach in order to keep the development
effort focused and moving quickly.
• Scrum master: The person who coordinates all the scrum
activities of a team.
• Product owner: A person who represents the project
stakeholders and is responsible for communicating and
aligning project priorities between the stakeholders and
development team.
The Scrum agile software development process
Advantages and disadvantages of agile development
• Extreme programming (XP): A form of agile software
development that promotes incremental development of a
system using short development cycles to improve
productivity and to accommodate new customer
requirements.
• DevOps: The practice of blending the tasks performed by
the development and IT operations groups to enable
faster and more reliable software releases.
DevOps is part of a
continuous deployment
strategy in which releases can
be launched daily.
Comparison of approaches to system development
Reference
• Stair, R.M. & Reynolds, G.W. (2018). Principles of
Information Systems: A Managerial Approach, 13th
Edition, Cengage Learning.
• Valacich, J.S. & Schneider, C. (2018). Information
Systems Today: Managing the digital world, 8th Edition,
Pearson.
The end ☺