Chapter 1

Information Technology (IT)

• IT includes hardware, software, and services used for managing, communicating, and sharing information.

• IT drives the digital economy, enhancing business processes and operational efficiency.

• Economic conditions affect IT spending, but IT remains a priority due to its impact on business growth and cost management.

Systems Analysis and Design (SAD)

• A structured, step-by-step approach for developing high-quality information systems.

• Information systems integrate technology, people, and data to support business functions.

• Used to improve decision-making, uncover trends, and manage business operations.

• Developed by IT professionals, including managers, users, network administrators, web designers, programmers, and systems analysts.

Role of a Systems Analyst

• Plans, develops, and maintains information systems.

• Requires strong analytical and communication skills.

• Must understand both business processes and IT solutions.

• Can work in IT departments or specific business functions (marketing, sales, accounting).

• Tasks include documenting processes, testing software/hardware, designing interfaces, and training users.

Information System Components

• Hardware: Physical components like servers, networks, mobile devices, and scanners.

• Software: Programs controlling hardware; includes system software (OS, security, utilities) and application software (enterprise and individual productivity tools).

• Data: Raw material processed into useful information, stored in linked tables and databases.

• Processes: Business tasks performed to achieve results.

• People: Stakeholders including management, users, IT staff, and external partners.

Business in the 21st Century

• Major trends:

  • Globalization

  • Seamless IT integration

  • Cloud computing

• E-commerce:

  • B2C (Business-to-Consumer): Online shopping, research, price comparison, payment, and delivery.

  • B2B (Business-to-Business): EDI, SCM, real-time inventory and order processing.

• IT companies combine products, services, and support.

• Internet-dependent firms rely on online operations, while traditional businesses (brick-and-mortar) expand into digital channels.

• Mortar-and-Pestle Businesses: Traditional brick-and-mortar businesses that have not fully integrated digital transformation but may utilize basic IT solutions for internal processes.0

Modeling Business Operations

• Business Profile: Describes a company’s mission, functions, customers, suppliers, competitors, and goals.

• Business Process: Defines transactions and operations within the organization.

• Business Process Model (BPM): Graphical representation of processes (e.g., order processing, inventory updates).

Types of Business Information Systems

1. Enterprise Computing Systems: Company-wide operations, ERP systems.

2. Transaction Processing (TP) Systems: Daily business transactions (e.g., order processing, payroll, inventory management).

3. Business Support Systems: Analyzes data for decision-making.

4. Knowledge Management Systems: Stores and retrieves knowledge for business applications.

5. User Productivity Systems: Tools like email, conferencing, spreadsheets, and collaboration platforms.

6. Systems Integration: Combining different system types to enhance functionality and efficiency.

User Information Needs

• Top Managers: Strategic planning, long-term goals, external factors.

• Middle Managers & Knowledge Workers: Tactical decision-making, detailed reports.

• Supervisors & Team Leaders: Day-to-day operations, coordination, and real-time data.

• Operational Employees: Transaction processing, data entry, customer service.

Systems Development Tools

1. Modeling: Graphical representations to analyze business and system processes.

2. Prototyping: Early working models for system evaluation.

3. CASE Tools (Computer-Aided Software Engineering): Software to automate system development and design processes.

Systems Development Methods

• Structured Analysis:.

  • Based on the Systems Development Life Cycle (SDLC), which follows a series of well-defined phases.

  • Uses a process-centric approach with data flow diagrams (DFDs) to visualize the system.

  • Focuses on detailed planning before implementation, which helps in large-scale projects but can be rigid for dynamic requirements.

System Development Life Cycle (SDLC) Phases

1. System Planning:

   • Identifies the need for an information system.

   • Conducts a feasibility study (operational, technical, economic, and schedule feasibility).

   • Defines project scope and objectives.

2. System Analysis:

   • Involves gathering requirements from stakeholders.

   • Uses fact-finding techniques such as interviews, surveys, and observation.

   • Documents business processes and creates models.

3. System Design:

   • Transforms requirements into system architecture.

   • Includes interface design, database structure, and data flow diagrams.

   • Considers security measures and performance optimization.

4. System Implementation:

   • Involves coding, testing, and deploying the system.

   • Conducts unit, integration, and system testing.

   • Trains end-users and transitions to the new system.

5. System Support and Security

   • Ensures continued functionality and system updates.

   • Handles bug fixes, system enhancements, and performance monitor

• Object-Oriented Analysis (OOA):

  • Organizes system development around objects rather than processes.

  • Objects are reusable components that contain both data (attributes) and behavior (methods).

  • Promotes modular design, making it easier to update and scale the system.

  • Uses Unified Modeling Language (UML) for diagramming and representation.

• Agile Methods:

  • Encourages iterative development and frequent collaboration between developers and users.

  • Uses short development cycles called sprints, allowing for continuous feedback and adjustments.

  • Agile frameworks include Scrum, Kanban, and Extreme Programming (XP).

  • Suitable for rapidly changing requirements but requires high user involvement.

• Waterfall Model:

  • A linear and sequential development approach where each phase must be completed before the next begins.

  • Phases include Requirements, Design, Implementation, Verification, and Maintenance.

  • Ensures thorough documentation and design, making it ideal for projects with clear requirements but less flexible for changes.

  • Variants like the V-Model and Incremental Waterfall introduce feedback loops to improve adaptability.

    Other Development Methods:

• Rapid Application Development (RAD): Focuses on quickly building prototypes and iterating based on user feedback, reducing overall development time.

• Joint Application Development (JAD): Involves users, developers, and stakeholders in collaborative workshops to define requirements and improve system design.

• DevOps: Integrates development and operations teams to ensure continuous integration, testing, and deployment, promoting faster and more reliable releases.

The Information Technology (IT) 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 organization.

Functions of the IT Department

The IT group provides technical support, which includes seven main functions:

1. Application Development

   • Provides leadership and overall guidance in developing systems.

   • Teams of users, managers, and IT staff develop systems using methodologies such as Rapid Application Development (RAD) or Joint Application Development (JAD).

   • IT professionals provide coordination, guidance, and technical support.

2. Systems Support and Security

   • Provides protection and maintenance services for system hardware and software.

   • Manages enterprise computing systems, networks, transaction processing systems, and IT infrastructure.

   • Implements and monitors physical and electronic security measures.

   • Installs and supports operating systems, telecommunications software, and database management systems.

   • Provides technical assistance to other IT groups.

   • In large organizations with remote clients, a deployment team may be included to install and configure workstations.

3. User Support

   • Offers technical information, training, and productivity support.

   • Often called a service desk or help desk.

   • Provides training for users and managers on application software (e.g., email, word processing, spreadsheets, and graphics packages).

   • Troubleshoots problems and serves as a clearinghouse for user issues.

4. Database Administration

   • Manages data design, security, backup, and access.

   • In small and medium-sized companies, IT personnel may handle multiple roles, including database administration.

   • Mission-critical databases require continuous support and maintenance.

5. Network Administration

   • Supports business operations by managing network infrastructure.

   • Handles hardware and software maintenance, support, and security.

   • Controls user access and manages network applications.

   • Network administrators install, configure, monitor, and maintain network systems.

6. Web Support

   • Maintains and manages the company’s website and web-based applications.

   • Web support specialists design web pages, monitor traffic, manage web-related hardware and software, and link web-based applications to the company’s information systems.

   • Web support is especially critical for businesses engaged in e-commerce.

7. Quality Assurance (QA)

   • Some large IT departments have a QA team that reviews and tests applications and system changes.

   • The QA team ensures that software meets specifications and quality standards.

   • Typically reports directly to IT management.

The Systems Analyst

A systems analyst investigates, analyzes, designs, develops, installs, evaluates, and maintains a company's information systems. This role requires constant interaction with users and managers within and outside the company.

Role of the Systems Analyst

• Helps develop IT systems that support business requirements.

• Acts as a translator between business users and IT teams.

• Uses tools like models, diagrams, and decision tables to communicate system processes.

• Converts business needs into a format that programmers can implement.

• Explains technical issues to non-technical users and managers in an understandable way.

Responsibilities of a Systems Analyst

• Ensuring that IT systems align with business needs.

• Communicating with different stakeholders to gather and analyze requirements.

• Documenting processes, requirements, and system changes.

• Developing models, diagrams, and other descriptive tools.

• Managing system implementation and providing training to users.

• Troubleshooting and maintaining systems to ensure efficiency.

Key Skills of a Systems Analyst

1. Technical Knowledge

   • Must stay updated on new technologies, programming languages, and system architectures.

   • Uses online learning resources, professional networking, and training courses to maintain skills.

2. Communication Skills

   • Must be able to explain complex technical concepts to non-technical audiences.

   • Works with stakeholders such as managers, vendors, and customers.

   • Often acts as a liaison between business teams and IT teams.

3. Business Skills

   • Understands business operations, financial analysis, and strategic planning.

   • Works closely with managers, supervisors, and employees to design systems that align with business goals.

4. Critical Thinking and Problem-Solving

   • Evaluates business problems and IT solutions.

   • Uses logical reasoning and cause-and-effect analysis.

   • Identifies potential system issues before they arise.

Career Path of a Systems Analyst

• The demand for systems analysts is expected to remain strong.

• Many systems analysts move into senior IT roles or management positions.

• Job titles may vary and include computer specialist, programmer, software engineer, or systems designer.

• Company size affects job responsibilities:

  • Small firms: A systems analyst may handle multiple roles.

  • Large corporations: Analysts may specialize in different aspects of system development.

Factors to Consider When Choosing a Systems Analyst Role

• Company organization: Some firms centralize IT functions, while others decentralize system development.

• Company size:

  • Smaller companies provide variety and hands-on experience.

  • Larger firms offer higher salaries, specialization, and career growth opportunities.

• Salary, location, and future growth:

  • Consider company stability, opportunities for promotion, and alignment with career goals.

• Corporate culture:

  • Analysts must understand a company’s values, work environment, and business practices to be effective.