Unit 1: Introduction to Information System Development
Introduction to Information System Development
Information systems (IS) are essential for supporting business processes, decision-making, and organizational efficiency. Understanding the development and categorization of IS is crucial for managers.
Overview of System Analysis and Design (SAD)
System Analysis
- The process of understanding and evaluating existing systems to identify problems and requirements.
- Focuses on what the system should do.
System Design
- The process of planning and specifying the solution to meet business requirements.
- Focuses on how the system will work, including hardware, software, databases, and interfaces.
Purpose of SAD
- Improve efficiency of business processes.
- Ensure alignment of IT with organizational goals.
- Reduce risks and errors in system implementation.
Key Idea: SAD bridges business needs and technical implementation.
Business System Concepts
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Business System: A collection of processes, people, and technology working together to achieve organizational goals.
Key Components:
- Inputs: Data or information collected.
- Processes: Activities that transform input into useful output.
- Outputs: Processed information that supports decision-making.
- Feedback: Mechanism to improve system performance.
Example: A sales information system collects customer orders (input), processes them (process), generates invoices and reports (output), and uses sales trends to improve future strategies (feedback).
Tip: Always relate IS to real business processes in exams.
Categories of Information Systems
Information systems can be classified based on organizational levels, functions, and purpose:
| Category | Purpose / Users | Example |
|---|---|---|
| Transaction Processing System (TPS) | Handles routine, day-to-day operations | Payroll system, Point of Sale (POS) |
| Management Information System (MIS) | Supports middle management with reports and summaries | Sales report, Inventory summary |
| Decision Support System (DSS) | Helps in decision-making using analytical models | Forecasting system, Risk analysis tool |
| Executive Information System (EIS) | Provides strategic insights to top management | Dashboard for KPIs, Market trend analysis |
| Enterprise Systems / ERP | Integrates core business processes across departments | SAP, Oracle ERP |
| Knowledge Management System (KMS) | Captures and shares organizational knowledge | Document repositories, Best practices databases |
Tip: Use examples from real companies to illustrate each category for exams.
Strategies for System Development
System development strategies define how an organization plans, builds, and deploys information systems to meet business goals.
System Development Strategies
Waterfall Model (Traditional Approach)
- Sequential approach: Requirements → Design → Development → Testing → Deployment → Maintenance.
- Advantages: Structured, clear milestones, easy to manage.
- Disadvantages: Inflexible; late changes are costly.
Agile Development
- Iterative and incremental: Development occurs in small sprints with frequent feedback.
- Advantages: Flexible, faster delivery, adaptive to changing business needs.
- Disadvantages: Requires strong team collaboration; documentation may be limited.
Rapid Application Development (RAD)
- Focuses on quick prototyping and user feedback.
- Advantages: Short development time, high user involvement.
- Disadvantages: Less suitable for large-scale, complex systems.
DevOps Approach
- Combines development and operations for continuous integration and delivery (CI/CD).
- Advantages: Faster deployment, automated testing, seamless updates.
- Disadvantages: Requires cultural and technical shift in organization.
Tip for MBA students: Relate strategy choice to business size, complexity, and risk tolerance.
Implementation and Evaluation of Systems
System Implementation
Process of deploying a developed system into the business environment.
Key Steps
- Preparation: Staff training, hardware setup, and data migration.
- Testing: Verify system functionality and performance (unit, integration, and user acceptance testing).
Conversion Methods
- Direct Cutover: Old system replaced immediately.
- Parallel Running: Old and new systems run simultaneously.
- Phased Implementation: Rollout in stages.
- Pilot Implementation: Deploy in one department or unit first.
System Evaluation
Purpose: Assess effectiveness, efficiency, and user satisfaction.
Evaluation Methods
- Performance Metrics: System uptime, processing speed, error rates.
- User Feedback: Surveys, interviews, support tickets.
- Cost-Benefit Analysis: Compare system benefits against development and maintenance costs.
- ROI (Return on Investment): Measure financial gains or cost savings from system use.
Tip: Emphasize continuous evaluation to ensure the system aligns with evolving business needs.
Managing the Application Development Portfolio
Application development portfolio management involves overseeing all IT projects to ensure alignment with organizational strategy, resource allocation, and risk management.
Key Aspects
- Portfolio Planning: Identify strategic priorities and select projects that add maximum business value.
- Resource Management:Allocate budget, staff, and technology effectively across multiple projects.
- Risk Management:Evaluate technical, operational, and strategic risks before and during project execution.
- Performance Monitoring:Track project progress, timelines, and budget adherence. Tools: Project dashboards, KPIs, and software like Jira, MS Project.
- Portfolio Optimization: Continuously review and reprioritize projects based on changing business needs and market conditions.
Key Idea: A well-managed application portfolio maximizes ROI, reduces redundant projects, and ensures strategic alignment.
Summary Table
| Aspect | Key Points | Example / Tools |
|---|---|---|
| System Development Strategy | Waterfall, Agile, RAD, DevOps | Jira, Trello, GitHub |
| System Implementation | Training, testing, conversion methods | Parallel, Pilot, Phased, Direct Cutover |
| System Evaluation | Performance, ROI, user feedback | Surveys, dashboards, cost-benefit analysis |
| Application Portfolio Management | Planning, resource allocation, risk, monitoring | MS Project, Jira, Portfolio dashboards |
Exam Tips
- Link strategy choice → business objectives → risk management.
- Include real-world examples of IT projects (ERP, CRM, cloud deployment).
- Use tables and diagrams to summarize complex processes.
- Highlight continuous evaluation and portfolio alignment with strategy