Chapter 1

How information systems are transforming business

-The emerging mobile digital platform
Smartphones, tablet computers, email, and online conferencing over the
Internet have all become essential tools for business.
-Growing business use of “big data” and cloud computing
New laws require businesses to store more data for longer periods
-Changes in business result in changes in jobs and careers

Globalization Challenges and Opportunities

-Internet and global communications have greatly reduced economic and
cultural advantages of developed countries.
-Competition for jobs, markets, resources, ideas
-Increases in foreign trade and outsourcing
-Requires new understandings of skills, markets, opportunities

What is an Information System?

Information technology (IT) consists of all the hardware and software that a
firm needs to use to achieve its business objectives.
Input – captures or collects raw data from within the organization or from its
external environment.
Processing – converts this raw input into a meaningful form.
Output- Output transfers the processed information to the people who will use
it or to the activities for which it will be used.
Feedback- which is the output that is returned to appropriate members of the
organization to help them evaluate or correct the input stage.
These activities produce the information that organizations need to make
decisions, control operations, analyze problems, and create new products or
services.
Businesses invest in IT to achieve 6 important business
objectives:
1) Operational excellence- Information systems and technologies help
improve efficiency and productivity

2) New products, services, and business models- Information systems and

technologies enable firms to create new products, services, and business
models such as how a company produces, delivers, and sells its products
and services

3) Customer and Supplier Intimacy- Customers who are served well

become repeat customers who purchase more.

4) Improved Decision Making- Real-time data improves the ability of

managers to make decisions.

5) Competitive Advantage- Achieving any of the previous four business

objectives represents the achievement of a competitive advantage

6) Survival- Businesses may need to invest in information systems and

technologies because they are necessities for doing business.

Dimension of Information Systems

Organizations
Each organization has a unique culture. Parts of an organization’s culture can
always be found embedded in its information systems.
People
Information systems require skilled people to build and maintain them or people
who can understand how to use the information in a system to achieve business
objectives.
Technology
Information technology (IT) infrastructure provides the foundation, or platform
that information systems are built on based on technologies such as computer
hardware and software.
How Information Systems Will Affect Business Careers
-Success in today’s job market requires a broad set of skills.
-Job candidates must have problem-solving skills as well as technical skills so
that they can complete specific tasks.
-Various occupations will be affected by information systems and you should be
building to benefit from this emerging labor market. (Accounting, Finance,
Marketing)

Chapter 3
The systems development life cycle (SDLC) is a common methodology for
systems development in many organizations.
Phases in SDLC:
(a) Planning
The first phase of the SDLC in which an organization’s total information
system needs are identified, analyzed, prioritized, and arranged

(b)Analysis
The second phase of the SDLC is when system requirements are studied
and structured.

(c) Design
The third phase of the SDLC is in which the description of the
recommended solution is converted into logical and then physical system
specifications.

(d)Implementation
The fourth phase of the SDLC, in which the information system is coded,
tested, installed, and supported in the organization.

(e) Maintenance
The final phase of the SDLC, in when an information system is
systematically repaired and improved.

Agile Methodologies
Agile Methodologies motivated by recognition of software development as
fluid, unpredictable, and dynamic.
Three key principles:
 focus on adaptive rather than predictive methodologies
 focus on people rather than roles
 focus on self-adaptive processes
When to use Agile Methodologies? If your project involves:
 Unpredictable or dynamic requirements.
 Responsible and motivated developers.
 Customers who understand the process and will get involved.

Difference between agile and traditional method

Project Management Process

The project management process involves four phases:
 (a) Initiating the project
The first phase of the project management which several activities are
performed to assess the size, scope, and complexity of the project and
to establish procedures to support later project activities
(b)Planning the project
The second phase of the project management process which focuses
on defining clear, discrete activities and the work needed to complete
each activity within a single project.
(c) Executing the project
The third phase of the project management process in which the plans
created in the prior phases (project initiation and planning) are put into
action.
(d)Closing down the project
The final phase of the project management process that focuses on
bringing a project to an end. Projects can conclude with a natural or
unnatural termination.

Chapter 4
Cumulative cost = 累计成本
Cumulative benefit = 累计收益
Payback period=赚回的前一年+（前一年的 CC-CB）÷（当年的 B-C）

ROI=（最后一年的 CB-CC）÷最后一年的 CC x 100%

NPV= Total PV benefits-Total PV Cost

Chapter 5
TRADITIONAL METHODS FOR DETERMINING REQUIREMENTS
FACT-FINDING TECHNIQUES
 Interview
-Interviewing is one of the primary ways analysts gather information
about an information systems project.

-An interview is a planned meeting during which the analyst obtain

information from another person. The skills needed to plan, conduct, and
document interviews successfully must be understood.

ADVANTAGES DISADVANTAGES
-Provide & Clarify Facts -Costly and Time-consuming
-Overcome Resistance -Require Skill
-Intimate and Frankness -Require Personal Contacts
-Better understanding

 Questionnaire
-It enables a large number of participants, from various departments to
even various countries, to be involved in the systems investigation.

-With standardized questions, the facts gathered tend to be more reliable

and often more honest responses.

Advantages Disadvantages
Respondent Given Time & Difficult to Design
Answer at Leisure
Information from Large Group Cannot Clarify Question
Respond Anonymously Not all the forms will be returned

 Document Review
-Records and reports can provide analysts with valuable information
about the organization and its business operations.

-In document review, SA examines information that has been recorded

about the system and users.

ADVANTAGES DISADVANTAGES
 Better Understanding of Documents May Not Up to Date
Procedures
Detailed Description of Procedures Modified & Current
Procedures Practice Not Following Documents
Cross-check And Verify Fact Need Careful Selection of
Documents.

 Observation
-Refer to observing the current operating procedures, in order to have a
fully understanding of the system’s operation.

-By personal observation, SA could verify statements made in interviews

as well as determine if procedures operate as specified in the system
documentation.

-Through observation, we might correct any misconceptions or erroneous

impressions.

Advantages DISADVANTAGES
Better Acceptance Time-Consuming
Additional Perspective Need Power of Concentration
Cross-check and verify Need Prior Understanding of
Procedure

CONTEMPORARY METHODS FOR DETERMINING

SYSTEM REQUIREMENTS

 JOINT APPLICATION DESIGN

A structured process in which users, managers, and analysts work together for
several days in a series of intensive meetings to specify or review system
requirements.
 CASE TOOLS DURING JAD
The analyst can use diagramming and prototyping tools to give graphic form to
system requirements, show the tools to users, and make changes based on the
users’ reactions.
  PROTOTYPING
An iterative process of systems development in which requirements are
converted to a working system that is continually revised through close
collaboration between an analyst and users.

Decision Tree
Decision trees show the logic structure in a horizontal form that resembles a tree
with the root at the left and branches to the right. This orientation allows the
analyst to write on the branches in order to describe conditions and actions.

Advantages of using decision trees

The order of checking conditions and executing actions is immediately
noticeable.
Disadvantages of decision tree
Taking up space and consequently a minimum amount of description on the
conditions and actions can be written on the trees.
Chapter 7
System Implementation
The six major activities:
 coding
 testing
 installation
 documentation
 training
 support
-The purpose of these steps is to convert the physical system specifications into
working and reliable software and hardware, document the work that has been
done, and provide help for current and future users and caretakers of the system.
Coding
Coding is the process of turning program logic into specific instructions that can
be executed by the computer system.
Testing
As each program module is produced, it can be tested individually, then as part
of a larger program, and then as part of a larger system.
Installation
Installation is the process during which the current system is replaced by the
new system.
Documentation
System documentation is the detailed information about a system’s design
specifications, its internal workings, and its functionality.
User documentation is the written or other visual information about an
application system, how it works, and how to use it.
Training and support
Computer training has typically been provided in classes and tutorials
A help desk provides aid to users in a particular department or for a particular
system.
Types of Tests
Static testing- means that the code being tested is not executed. The results of
running the code are not an issue for that particular test.
Dynamic testing- on the other hand, involves execution of the code.
Automated testing- means the computer conducts the test, whereas manual
testing means that people complete the test.
Unit testing- each module is tested alone in an attempt to discover any errors in
its code.
System testing- the bringing together of all of the programs that a system
comprises for testing purposes.
Four approaches of installation
Direct installation- changing over from the old information system to a new
one by turning off the old system when the new one is turned on.
Parallel installation- running the old information system and the new one at
the same time until management decides the old system can be turned off.
Single-location installation- trying out a new information system at one site
and using the experience to decide if and how the new system should be
deployed throughout the organization.
Phased installation- changing from the old information system to the new one
incrementally, starting with one or a few functional components and then
gradually extending the installation to cover the whole new system.

Maintaining Information Systems

Maintenance is where a majority of the financial investment in a system occurs.
During maintenance, systems are changed to rectify internal processing errors
or to extend the functionality of the system.
Types of Maintenance
 Corrective maintenance
Changes made to a system to repair flaws in its design, coding, or
implementation.
 Adaptive maintenance
Changes made to a system to evolve its functionality to changing business needs
or technologies.
 Perfective maintenance
Changes made to a system to add new features or to improve performance.
 Preventive maintenance
Changes made to a system to avoid possible future problems