System Development Dr John Sum Institute of Technology

System Development Dr. John Sum Institute of Technology Management National Chung Hsing University 2010 FALL EC Websites Development 1

Reference n K. Laudon and J. Laudon, Management Information Systems, 9 th ed. , Prentice Hall, 2006. 2010 FALL EC Websites Development 2

OUTLINES n n n Websites, business processes and IS Review of IT and IS Changes in business and information management Overview of system development Remarks in system development Exemplar website development 2010 FALL EC Websites Development 3

Business Processes, IS/Websites and IT 2010 FALL EC Websites Development 4

Example 1: Travelocity. COM 2010 FALL EC Websites Development 5

Example 1: Travelocity. COM n Services support q q n Car rental information Room rate enquiries, on-line hotel room booking Flight ticket enquires, on-line flight ticket booking Tour schedule enquires, on-line tour booking Users q q General public (which customer segment) Administration (which departments, which roles) Technical support (Webmaster, etc) Suppliers? 2010 FALL EC Websites Development 6

Example 2: Global-Trade. COM 2010 FALL EC Websites Development 7

Example 3: i. Steel. Asia. COM 2010 FALL EC Websites Development 8

Example 4: Forbes. COM 2010 FALL EC Websites Development 9

Website and Information System n A website is simply a part of the company’s information system n K. Laudon and J. Laudon, Management Information Systems, 9 th ed. , Prentice Hall, 2006 Definition: An information system is a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. 2010 FALL EC Websites Development 10

Processes, IS and IT n Information technologies provide the infrastructure and support to build an information system. Business Processes Information Systems Information Technologies 2010 FALL EC Websites Development 11

2010 FALL EC Websites Development 12

Review of IT and IS 2010 FALL EC Websites Development 13

Information Technologies n Software technologies q q n Including operating systems and DBMS MS Words improves the quality of management reports Window XP controls operation of a computer JDK provides platform for developing web application Hardware technologies q q q Mobile phone support mobile data transfer 802. 11 provides the standard for wireless local area networks USB flash memory provides an alternative way to store information 2010 FALL EC Websites Development 14

Information Technologies n System development q q q n Object-oriented development Component-based development Unified modeling language Other technologies q q q Artificial Intelligence Parallel processing architecture Optimization algorithm 2010 FALL EC Websites Development 15

Information Technologies n n n n Bar code scanner (IO) Overhead project (IO) Camera (IO) Telephone (IO, Com. ) FAX machine (IO, Com. ) Computer (Terminal) Calculator (Calculation) Palm/PDA (IO, DB) 2010 FALL n n n n Mobile phone (Com. ) Optic fibers (Com. ) Virtual private network (Com. ) Internet (Com) Web technology (System) Mobile agent (System) Rational Rose UML (Development) EC Websites Development 16

Information Technologies n Prog. Lang. q q q Assembly C/C++ Java n n n q q q n Operating Systems q q q Java. Script Java Servlet/Applet Java Network Programming Visual Basic/VBScript Perl HTML/DHTML/XML n Database System q q q 2010 FALL MS Window Unix Linux EC Websites Development IBM DB 2 MS Access Oracle Sybase My. SQL 17

Information Technologies n The world is moving. So, many new technologies are coming. q q q n Mobile computing Grid computing P 2 P networks (BT, Gnutella, SKYPE) Chinese computing Biometric Autonomic computing Search IBM. COM for more 2010 FALL EC Websites Development 18

Information Technologies n Mobile Computing q q n A type of computing model in which the computers can be networked together even the computers are moving anywhere. How to connect? How to share resource? Autonomic computing q A type of computing model in which the system is self-healing, self-configured, self-protected and self-managed. 2010 FALL EC Websites Development 19

Information Technologies n Each technology has its own limitation q q q q Security problems Programming difficulties Training – programmer or user Version problem – Window 95/98/2000/XP User account support Transparency – Window versus Linux Maintenance and Support 2010 FALL EC Websites Development 20

Information Technologies n n Development team should have enough knowledge to select the appropriate technologies for the system. Does a development team should learn all these technologies, such as Java, Ajax, RSS Feed, etc. ? 2010 FALL EC Websites Development 21

Types of Information Systems n By management level (Conventional Approach) q q n Transaction processing system (operational) Management information system Decision support system Executive information system (Strategic) Education levels and computer usage skills? 2010 FALL EC Websites Development 22

Types of Information Systems 2010 FALL EC Websites Development 23

Types of IS: Conventional 2010 FALL EC Websites Development 24

Types of IS: Contemporary 2010 FALL EC Websites Development 25

Types of IS: Contemporary n n n Where should the “website” (or websites) be located? What business process (or processes) should it support? Business operations = Business logic = Business processes. All three terms will be used interchangeably. 2010 FALL EC Websites Development 26

Conventional VS Contemporary n Conventional q q q n Designed in a way to fit in the operations of a business unit. Different department will have a different system. Scope of the system is smaller. Analysis and design are simpler. Easy to maintain. 2010 FALL Contemporary q q q EC Websites Development Designed in a way to fit in the operations of the whole enterprise. Processes or services oriented. Scope of the system is huge. Analysis and design are complicated ? Difficult to maintain ? 27

Changes in business & information management 2010 FALL EC Websites Development 28

Changes in Information Management n Factors leading to the changes q q q Business environment Management Practice Technologies Disaster Misc These factors are always interrelated. 2010 FALL EC Websites Development 29

Changes in Information Management n Business environment q q n Moving towards Asia, then SE Asia, Eastern Europe, Latin America Global outsourcing, implying the need of SCM Management q q Total quality management Customer satisfaction Cost-effective Service level 2010 FALL EC Websites Development 30

Changes in Information Management n Business environment q q q n Where does the business move? Where are the markets? Where are the manufacturers? Management q What are the next management focus? 2010 FALL EC Websites Development 31

Changes in Information Management n Technologies q Wired to wireless q Powerful PC, notebook, mobile phone, PDA q i. Phone, i. Pad n Disaster q 911 Attack q Earthquake q Tsunami n Misc q Energy, Water, Air, Food shortage q Global warming q Social responsibility 2010 FALL EC Websites Development 32

Changes in Information Management n Implications q Change in the information requirement n n q Change in culture and habit of using computer n n q q Hourly data versus daily data Multiple languages Hardcopy document versus web document Fixed line telephone versus Internet phone (Skype) Change in the volume/speed of information flow Change in the cost structure of a company 2010 FALL EC Websites Development 33

Changes in Information Management n Implications q Business processes (e. g. supply chain) are defined in a manner of cross-boundary, and agile n n n q Customer-oriented thinking (customer controls everything) Customers and suppliers are users of the information Process definitions are getting complex System scope is increasingly complicated Reusable module is preferred Need of disaster recovery plan n n 2010 FALL Data backup Server backup EC Websites Development 34

Changes in Information Management n Implications q Corporate social responsibility n n q q q Green-design System optimization Technologies are getting cheaper Profit margin is decreasing (Don’t expect too much on earning) Install new system or using new technology is not for making money, just for sustainability (survival). 2010 FALL EC Websites Development 35

Business Environment 2010 FALL EC Websites Development 36

Business Environment (70’s – 90’s) 2010 FALL EC Websites Development 37

Business Environment (00’s – Present) 2010 FALL EC Websites Development 38

Business Environment (Beyond) 2010 FALL EC Websites Development 39

Business Environment (Beyond) 2010 FALL EC Websites Development 40

Technology Change n How much you know about the following buzzwords: q EMU n n n q Distributed Computing n n q E-Commerce E-Business, M-Business M-Taiwan, U-Taiwan Mobile Computing Peer-2 -Peer Computing Grid Computing Cloud Computing Autonomous Computing 2010 FALL EC Websites Development 41

What Have Not Changes? n n n System is still in a supporting role (not a decision role) of a company. System itself does not accounted for making money, but the products or services that the company provide. System itself does not accounted for profitable, but the business processes that the system support. 2010 FALL EC Websites Development 42

Overview of Systems Development 2010 FALL EC Websites Development 43

Key Concepts in Systems Development n Initiating a systems development q q Participants involved in a SD project Reasons for having a new system File the request for budgeting and development The request document should include n n n 2010 FALL Reasons for having the new system, modification of the existing system Management team for the system development Department in charge of the system The fit of the system to the company IS strategy Expected budget EC Websites Development 44

Key Concepts in Systems Development n Information systems planning q q Senior management based on the company need to evaluate and prioritize the requests from different departments For each request, the proposal should include n n q q High level system requirement Feasibility analysis (Financially and technologically) Selection of system development model Objectives and schedule for SD If the request is approved, then schedule when to release the budget and start the development If the request is pending to approve (under review), the proposal will be filed for next meeting. 2010 FALL EC Websites Development 45

Key Concepts in Systems Development n Build the system (System Development) q q q (After budget has been approved) Detail analysis – Precise system requirements (user accepted), a list of user acceptance tests System design – modules, interfacing amongst modules, hardware requirements, programming language, OS Coding In-house testing – unit test, system test, stress test User acceptance test 2010 FALL EC Websites Development 46

Participants in Systems Development 2010 FALL EC Websites Development 47

Participants in Systems Development n Stakeholders q n Users q n Individuals who interact with the system regularly System Analyst q n Individuals who either themselves or through the organization are beneficiaries of the systems development effort. Professional who specializes in analyzing and designing business systems. Programmers q Individual responsible for modifying or developing programs to satisfy user requirements. 2010 FALL EC Websites Development 48

Management Team Application of IT Business Process Staff, Clients Suppliers Business Process 2010 FALL EC Websites Development 49

Reasons to Initiate a Development Project 2010 FALL EC Websites Development 50

Planning What kind of person is capable to do this translation? Information Systems Planning The translation of strategic and organizational goals into systems development initiatives. Creative Analysis The investigation of new approaches to existing problems. Critical and difficult task 2010 FALL EC Websites Development 51

Planning Critical Analysis The unbiased and careful questioning of whether system elements are related in the most effective or efficient ways. Critical and difficult task 2010 FALL One approach, not universal EC Websites Development 52

Planning n Design objectives q Performance objectives n n q Quality or usefulness of the output The speed at which the output is generated Cost objectives n n 2010 FALL Development costs Costs related to the uniqueness of the system application Fixed investments in hardware and related equipment On-going operating costs of the system EC Websites Development 53

Planning n Challenges q q We would like to have a website for IEC, which is similar to the following: n n q www. ucla. edu www. anderson. ucla. edu www. cism. kingston. ac. uk www. igec. umbc. edu We would like to have a website for IEC, with design, outlook and functions similar to the above. 2010 FALL EC Websites Development 54

System Development Model n n n Waterfall model Spiral Model Component-based Development Prototyping Rapid Application Development Others 2010 FALL EC Websites Development 55

Waterfall Model Systems Investigation Problems and opportunities are identified Systems Analysis Existing systems and work processes are studied Systems Design Defines how the information system will do what it must do to solve the problem. 2010 FALL EC Websites Development 56

Waterfall Model Systems Implementation System components are assembled and the new or modified system is placed into operation. Systems Maintenance and Review Ensures the system operates and is modified to keep up with business changes. 2010 FALL EC Websites Development 57

Spiral Model 2010 FALL EC Websites Development 58

Spiral Model 2010 FALL EC Websites Development 59

Component-based Model 2010 FALL EC Websites Development 60

Prototyping Operational Prototype Accesses real data files, edits input data, makes necessary computations and comparisons, and produces real output. Nonoperational Prototype A mockup or model that includes output and input specifications and formats. 2010 FALL EC Websites Development 61

Rapid Application Development 2010 FALL EC Websites Development 62

Factors Affecting System Development n n n n Resource Constraint Analysis Project Schedule and Tracking Systems Configuration Management Selected Project Management Software Packages Use of Computer-Aided Software Engineering (CASE) Tools Systems Investigation Requirements Analysis Systems Analysis 2010 FALL EC Websites Development 63

Project Schedule and Tracking n Use of project management tools q q q Schedule Milestone Deadline Critical path Program Evaluation Review Technique (PERT) Gantt chart 2010 FALL EC Websites Development 64

Gantt Chart 2010 FALL EC Websites Development 65

Systems Investigation n n Identify potential problems and opportunities and consider them in light of the goals of the company. It is the second round analysis. The first round analysis has been conducted during system planning. 2010 FALL EC Websites Development 66

Systems Investigation n Feasibility Analysis 2010 FALL EC Websites Development 67

Systems Investigation n Systems Investigation Report q q q 2010 FALL A report that summarizes the results of the systems investigation and the process of feasibility analysis and recommends a course of action. The investigation is usually conducted by a system investigation team and a steering committee. Steering committee is an advisory group consisting of senior management and users from the IS department and other functional areas. EC Websites Development 68

Systems Investigation 2010 FALL Table of Contents for a Systems EC Websites Development Investigation Report 69

Requirement Analysis n Requirements Analysis q It is the third round analysis. q An assessment used to determine the need of the users, the stakeholders, and the organization. q Converting organizational goals into systems requirements 2010 FALL EC Websites Development 70

Systems Analysis n n External and Internal Sources of Data It is the forth and the last round analysis. The analysis must be very precise. The results will be used in system design. 2010 FALL EC Websites Development 71

Systems Analysis n Data Collection q q To understand what exactly the users needs What data/information should be processed in the system, and what sort of interface design the users expect. Steps in Data Collection 2010 FALL EC Websites Development 72

Systems Analysis n Techniques q q q Structured Interview Unstructured Interview Direct Observation Questionnaires Statistical Sampling Steps in Data Collection 2010 FALL EC Websites Development 73

Systems Analysis n Data Analysis q Manipulating the collected data so that it is usable for the development team members who are participating in systems analysis. Data Modeling A commonly accepted approach to modeling organizational objects and associations that employ both text and graphics. Activity (Process) Modeling A method to describe related objects, associations, and activities. 2010 FALL Data Flow Diagram A diagram that models objects, associations, and activities by describing how data can flow between and around them. EC Websites Development 74

Entity-Relationship Diagram (ERD) Data Flow Diagram (DFD) Semantic Description of a Business Process 2010 FALL EC Websites Development 75

Application Flowcharts Charts that show relationships among applications or systems. 2010 FALL EC Websites Development 76

Grid Charts A table that shows relationships among the various aspects of a systems development effort. 2010 FALL EC Websites Development 77

User Interface 2010 FALL EC Websites Development 78

User Interface 2010 FALL EC Websites Development 79

User Interface 2010 FALL EC Websites Development 80

Systems Analysis Report n n Strength and weaknesses of existing system from stakeholders’ perspective. User/stakeholder requirements for the new system. Organizational requirements. Description of what new information systems should do to solve the problem 2010 FALL EC Websites Development 81

Systems Analysis Report 2010 FALL EC Websites Development 82

Remarks on System Development 2010 FALL EC Websites Development 83

Major Problems in SD n Communication gaps between the user (non. IT) and the developer (IT) q q q No common language Lack of IT knowledge (non-IT) Lack of business sense (IT) Lack of mutual trust Lazy 2010 FALL EC Websites Development 84

Solutions n User and developer should have a common ground knowledge q q n n General and essential IT knowledge General and essential business knowledge Patient Quality assurance process 2010 FALL EC Websites Development 85

Technically How? n n Spend more time on requirement analysis Documentation q q q q Project schedule User manual Maintenance manual Project plan Quality plan Analysis model Design model Testing plan 2010 FALL EC Websites Development 86

Who? n Requirement/System analysis q n System design q n Department manager, IT manager & programmer System Implementation q n Director, department manager, operational staff, IT manager & programmer Department manager, operational staff, IT manager & programmer System Maintenance & Review q Operational staff & programmer 2010 FALL EC Websites Development 87

Road map (1) n Service model q q q Define the products or services to be provided by the company. Identify target customers Identify suppliers 2010 FALL EC Websites Development 88

Road map (2) n Revenue model q q q Evaluate the size of the customer bases for each product or service. Expected earning of each product or service Might need to analysis the cumulative figures and presented in quarterly or yearly basis. 2010 FALL EC Websites Development 89

Road map (3) n Business process model q q Interaction amongst customers, your company and the suppliers Identify the roles (persons) who will take part in each operation, such as data entry staff, customer service staff, clerk, department manager, and so on. Optimize the business processes Refine IS requirement model if necessary 2010 FALL EC Websites Development 90

Road map (4) n IS requirement model q q q Identify which tasks within these operations can be replaced by using IT Refine business model if necessary Identify the users of the system 2010 FALL EC Websites Development 91

Road map (4) n Cost model q q Investment on the entire project Staff salary, rental fee, electricity & water bills, insurance/pension IT equipments, leased line subscription fee, maintenance cost Might need to analysis the cumulative figures and presented in quarterly or yearly basis. 2010 FALL EC Websites Development 92

Road map (6) n Profit & Lost analysis q q In quarterly or yearly basis Identify when is the break-even point 2010 FALL EC Websites Development 93

Road map, why? n n Traceable analysis model If there is any change on the service model, IS requirement model, the effects can easily be identified. 2010 FALL EC Websites Development 94

Effort Estimates Planning Industry Standard For Web Applications Time Required in Person Months 2010 FALL 15% 4 Analysis Design 20% 35% 5. 33 9. 33 EC Websites Development Implementation 30% 8 95

Exemplar Website Development 2010 FALL EC Websites Development 96

An e. Bay-like website for on-line auction 2010 FALL EC Websites Development 97

e. Bay-like website for on-line auction 2010 FALL EC Websites Development 98

e. Bay-like website for on-line auction 2010 FALL EC Websites Development 99

e. Bay-like website for on-line auction 2010 FALL EC Websites Development 100

e. Bay-like website for on-line auction 2010 FALL EC Websites Development 101

Do you really understand! 2010 FALL EC Websites Development 102

Review Questions n n Select one website from Travelocity. COM, Global. Trade. COM, i. Steel. Asia. COM and Forbes. COM and describe the underlying information technologies being used to build that website. What is the definition of an information systems? What are the differences between a website and an information systems? What are the roles of “network technologies” playing in business information system? 2010 FALL EC Websites Development 103

Review Questions n Describe in your own words q q n n (1) why development team should have enough knowledge to select the appropriate technologies for the system, and (2) should a development team learn all the latest technologies? With an aid of diagrams, explain the differences between an information system that is followed by conventional and contemporary design approaches. Describe what Asia business environment has been changing since 1980’s, and its affect on the requirement of an information system. 2010 FALL EC Websites Development 104

Review Questions n n n Describe in details the roles and responsibilities of each participant in a system development project? Describe the purposes, the similarities and differences amongst creative analysis, critical analysis, feasibility analysis, requirement analysis, system analysis. Describe what is waterfall model and the limitation of such development approach. 2010 FALL EC Websites Development 105

Review Questions n n n With an aid of diagrams, describe in detail any 3 development approaches, and state their differences. State any five reasons to initiate a development project. With an aid of diagrams, describe the relationships amongst business processes, information systems and information technologies. 2010 FALL EC Websites Development 106

Review Questions n n In system analysis, data are collected for further analyzed. Describe in detail the techniques for which the data are collected, and in what situations the techniques can be applied. If necessary, you can add examples to help your discussion. Data flow diagram is an analysis model describing the how data is processed. q q Describe, with an example, what are the four components in a DFD. Describe in detail, step by step, how data flow diagrams are obtained. 2010 FALL EC Websites Development 107

Review Questions n n n DFD, application flowchart, grid charts and screen layouts are four analysis models obtained after system analysis. Describe what are the purposes to obtain such models. Describe what are the tentative contents that should be included in the System Investigation Report and the System Analysis Report. In the Road Map for system development, describe in detail what are the six issues that a system developer could follow in order to achieve a traceable analysis model. 2010 FALL EC Websites Development 108