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Information
Systems
Development
 z Importance in modern business
environments

Efficient business processes and information systems are critical components of

modern organizations.

They play a pivotal role in enhancing productivity, competitiveness, and overall

success.
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Business Processes

 Business processes are a structured set of activities, tasks, and

workflows that are designed to achieve specific business
objectives or outcomes.

 These processes are a fundamental part of how organizations

operate, enabling them to carry out their day-to-day functions,
deliver products or services, and achieve their strategic goals.

 Business processes can vary widely in complexity and scope,

encompassing various functions within an organization, such as
sales, marketing, finance, production, and customer service.
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Key characteristics of business
processes
 Structured Sequence

 Goal-Oriented

 Input and Output: Inputs (such as information, materials, or

resources) into desired outputs (products, services, or information)

 Roles and Responsibilities

 Efficiency and Effectiveness: Business processes aim to achieve

their goals in the most efficient and effective manner, minimizing
waste, errors, and unnecessary steps.

 Continuous Improvement
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Examples of common business
processes

 Sales Process:

 Lead generation

 Qualification of leads

 Sales presentations

 Proposal creation

 Closing deals

 Customer relationship management

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 Marketing Process:

 Market research

 Marketing strategy development

 Campaign planning and execution

 Lead nurturing

 Advertising and promotions

 Performance measurement and analysis

 Customer Support Process:

 Customer inquiries and requests

 Issue resolution

 Technical support

 Complaint handling

 Customer feedback collection

 Knowledge base management

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 Supply Chain Management: • Quality Control and Assurance:
• Quality standards and process definition
 Procurement and supplier management
• Quality inspections and testing
 Inventory management • Defect identification and correction
 Order fulfillment • Continuous improvement initiatives
• Product or service quality assurance
 Demand forecasting
 Logistics and distribution
• Product Development Process:
 Returns and reverse logistics
• Idea generation and concept development

 Human Resources (HR) Process: • Design and prototyping

• Testing and validation
 Recruitment and onboarding
• Production planning
 Employee training and development • Launch and marketing
 Performance appraisal and management • Post-launch evaluation and improvements

 Payroll and benefits administration

 Employee off boarding
 Compliance and policy management
z  Financial Management:

 Budgeting and financial planning

 Accounting and book keeping

 Accounts payable and receivable

 Financial reporting

 Tax management

 Audit and compliance

 Project Management:

 Project initiation and planning

 Task assignment and scheduling

 Project execution and monitoring

 Issue and risk management

 Project completion and evaluation

 Documentation and reporting

z  Legal and Compliance Processes:

 Legal research and consultation

 Contract drafting and management

 Regulatory compliance

 Intellectual property protection

 Litigation and dispute resolution

 Ethics and corporate governance

 IT Support and Maintenance:

 Helpdesk and technical support

 System maintenance and updates

 Troubleshooting and issue resolution

 Backup and data recovery

 Software and hardware procurement

 Security and data protection

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Business Data Processing

 Business data processing is the systematic method of collecting,

storing, organizing, and manipulating data to support various
business operations and decision-making processes.

 It involves the use of computer systems, software, and human

resources to manage data in a way that adds value to an
organization.
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 Data is a fundamental component of business operations, and it

can be categorized into various types based on its purpose and
usage. Two common types of data used in business operations
are:

 Transactional Data

 Analytical Data
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 Transactional Data:

 Definition: Transactional data consists of records of specific business transactions

or events. These data points are generated in the course of day-to-day operations
and provide a chronological record of business activities.

 Examples:
 Sales transactions: Records of customer purchases, including items, prices, and
payment details.
 Financial transactions: Data related to payments, invoices, receipts, and expense
reports.
 Inventory transactions: Data on the movement of goods in and out of stock.
 Employee timecards: Records of work hours, attendance, and leave requests.
 Customer interactions: Information about customer service interactions, such as support
tickets or call logs.
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 Analytical Data:

 Definition: Analytical data is typically aggregated and processed transactional data

used for analysis and decision-making. It's organized to support reporting, data
analysis, and business intelligence efforts.

 Examples:
 Business reports: Summaries of sales, financial performance, or other key metrics.
 Data warehouses: Central repositories that store historical and current data for analysis.
 Dashboards: Visual representations of data that provide real-time insights into business
performance.
 Data mining datasets: Large datasets used for discovering patterns, trends, and insights.
 Predictive analytics data: Data used to build predictive models for forecasting and decision
support.
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 Master Data:
 Master data comprises core data entities that remain relatively static over time. It includes information about customers,
products, suppliers, and employees. Master data is used to maintain consistency and accuracy across business
processes and systems.

 Metadata:
 Metadata is data about data. It provides information on the characteristics and properties of other data, such as data
source, data format, data structure, and data lineage. Metadata is crucial for data management and data governance.

 Big Data:
 Big data encompasses vast and complex datasets that cannot be easily managed and analyzed with traditional data
processing tools. It includes various types of data, such as structured data (e.g., transactional data) and unstructured
data (e.g., social media posts, sensor data).

 External Data:
 External data is data that is collected from sources outside the organization, such as market research, economic
indicators, or data from third-party vendors. It can provide valuable insights for strategic decision-making.

 Time-Series Data:
 Time-series data involves data points recorded over time at regular intervals. This data type is commonly used for
forecasting and trend analysis. Examples include stock prices, weather data, and website traffic.
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Business data processing

 Data Collection:
 These sources can include customer interactions, sales transactions, sensor
data, social media, surveys, and more. Data is collected in raw or semi-
structured formats.

 Data Entry:
 Once data is collected, it needs to be entered into a system. This may involve
manual data entry or automated methods, depending on the source and format
of the data.

 Data Storage:
 Data is stored in a structured manner, often within databases or data
warehouses. Organizing data into structured formats makes it easier to retrieve
and process when needed.
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 Data Cleaning and Validation:

 Data quality is critical. Data is cleaned and validated to identify and correct errors, inconsistencies, and
missing values. This ensures that the data is accurate and reliable for subsequent processing.

 Data Transformation:
 Data may need to be transformed to meet specific requirements. This could involve converting data
formats, aggregating data, or performing calculations to create derived data sets.

 Data Processing:
 Data is processed to derive insights, generate reports, or support various business functions. This may
include statistical analysis, data mining, and running algorithms to uncover trends, patterns, and
relationships in the data.

 Data Integration:
 In many organizations, data from multiple sources needs to be integrated to provide a comprehensive
view of operations. Data integration involves combining data from different systems and databases.
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Part II
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Introduction to Information Systems
Development

Introduction
 An information system is a set of interconnected components that work together to collect,
store, process, and distribute data and information within an organization.

 Information systems are designed to support and facilitate various business processes,
decision-making, and communication, helping organizations operate efficiently and
effectively.

 These systems incorporate hardware, software, data, procedures, and people to manage
and utilize data for a wide range of purposes.
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Information Systems Development

 When someone has an idea for a new function to be performed

by a computer, how does that idea become reality?

 If a company wants to implement a new business process and

needs new hardware or software to support it, how do they go
about making it happen?
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Programming

 Software is created via programming

 The process of developing good software is usually not as

simple as sitting down and writing some code.

 Sometimes a programmer can quickly write a short program to

solve a need, but in most instances the creation of software is a
resource-intensive process that involves several different groups
of people in an organization.

 In order to do this effectively, the groups agree to follow a

specific software development methodology.
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System Request

 A "System Request" is a formal document or proposal that is

typically created at the beginning of a systems development
project.

 It serves as a request for the initiation of a new information

system or for significant changes or enhancements to an
existing system.

 The primary purpose of a System Request is to provide a clear

and documented justification for the proposed project.
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Overview of the development life cycle
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Plan

 The planning phase typically includes tasks like cost-benefit analysis, scheduling,
resource estimation, and allocation. The development team collects requirements
from several stakeholders such as customers, internal and external experts, and
managers to create a software requirement specification document.

 The document sets expectations and defines common goals that aid in project
planning. The team estimates costs, creates a schedule, and has a detailed plan to
achieve their goals.
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Design

 In the design phase, software engineers analyze requirements and identify the best
solutions to create the software. For example, they may consider integrating pre-
existing modules, make technology choices, and identify development tools. They will
look at how to best integrate the new software into any existing IT infrastructure the
organization may have.

Implement

 In the implementation phase, the development team codes the product. They analyze
the requirements to identify smaller coding tasks they can do daily to achieve the final
result.
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Test

 The development team combines automation and manual

testing to check the software for bugs. Quality analysis includes
testing the software for errors and checking if it meets customer
requirements. Because many teams immediately test the code
they write, the testing phase often runs parallel to the
development phase.
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Deploy

 When teams develop software, they code and test on a different copy of the
software than the one that the users have access to. The software that customers
use is called production, while other copies are said to be in the build environment,
or testing environment.

 Having separate build and production environments ensures that customers can
continue to use the software even while it is being changed or upgraded. The
deployment phase includes several tasks to move the latest build copy to the
production environment, such as packaging, environment configuration, and
installation.
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Maintain

 In the maintenance phase, among other tasks, the team fixes

bugs, resolves customer issues, and manages software
changes. In addition, the team monitors overall system
performance, security, and user experience to identify new ways
to improve the existing software.
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Quality Triangle
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 When developing software or any sort of product or service,

there exists a tension between the developers and the different
stakeholder groups such as management, users, and investors.

 This tension relates to how quickly the software can be

developed (time), how much money will be spent (cost), and
how well it will be built (quality).

 The quality triangle is a simple concept. It states that for any

product or service being developed, you can only address two of
the following: time, cost, and quality.
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Programming Tools

 To be more efficient at programming, additional tools, such as an

Integrated Development Environment (IDE) or computer-aided
software-engineering (CASE) tools can be used.
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For most programming languages an Integrated Development Environment (IDE) can be
used to develop the program. An IDE provides a variety of tools for the programmer, and
usually includes:

 Editor. An editor is used for writing the program. Commands are automatically color
coded by the IDE to identify command types. For example, a programming comment
might appear in green and a programming statement might appear in black.

 Help system. A help system gives detailed documentation regarding the programming
language.

 Compiler/Interpreter. The compiler/interpreter converts the programmer’s source

code into machine language so it can be executed/run on the computer.

 Debugging tool. Debugging assists the developer in locating errors and finding
solutions.
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Case Tools

 While an IDE provides several tools to assist the programmer in

writing the program, the code still must be written. Computer-Aided
Software Engineering (CASE) tools allow a designer to develop
software with little or no programming. Instead, the CASE tool
writes the code for the designer. CASE tools come in many
varieties. Their goal is to generate quality code based on input
created by the designer.
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 Upper Case Tools - Upper CASE tools are used in planning,

analysis and design stages of SDLC.

 Lower Case Tools - Lower CASE tools are used in

implementation, testing and maintenance.

 Integrated Case Tools - Integrated CASE tools are helpful in all

the stages of SDLC, from Requirement gathering to Testing and
documentation.
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 Diagram tools

 Process Modeling Tools

 Project Management Tools

 Documentation Tools

 Analysis Tools

 Design Tools

 Configuration Management Tools

 Change Control Tools

 Programming Tools

 Prototyping Tools

 Web Development Tools

 Quality Assurance Tools

 Maintenance Tools
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Role of information systems in decision-
making and operations
 Aligning information systems with organizational needs is
essential for staying competitive, efficient, and responsive in
today's fast-paced business environment.

 It enables organizations to leverage technology as a strategic

asset that can drive growth, enhance decision-making, and meet
customer expectations.

 Failing to align information systems can result in wasted

resources, missed opportunities, and a competitive
disadvantage.
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Advantages of Information systems in
Business processes

 Improved Productivity

 Cost Reduction

 Enhanced Decision-Making

 Competitive Advantage

 Customer Satisfaction

 Risk Management

 Scalability

 Innovation and Growth

 Data-driven Insights

 Compliance and Governance

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Benefits of Proper Project Identification

 Improved project success rates

 Efficient allocation of resources

 Minimization of risks and uncertainties

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Challenges in Project Initiation

 Unclear Objectives and Requirements: Lack of clarity in defining project objectives and requirements can lead to
misunderstandings, scope creep, and difficulties in planning.

 Stakeholder Misalignment: Different stakeholders may have conflicting priorities, expectations, or interests, making it
challenging to gain consensus on project goals and deliverables.

 Limited Resources: Insufficient budget, time, or skilled personnel can hinder the initiation of a project or result in
suboptimal outcomes.

 Inadequate Planning: Poorly developed project plans can lead to difficulties in resource allocation, scheduling, and
overall project management.

 Resistance to Change: Individuals or groups within an organization may resist the changes that a project could bring,
hindering the project initiation process.

 Incomplete Risk Assessment: Failure to identify and assess potential risks can result in unexpected challenges
during project execution.

 Lack of Executive Support: Without strong support from top-level management, it may be difficult to secure the
necessary resources and commitment for the project.
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 Ambiguous Scope: Unclear project boundaries can result in scope creep, where additional
requirements are introduced without proper evaluation and approval.

 Technology Challenges: Issues related to technology selection, compatibility, or integration can pose
significant obstacles, especially in IT projects.

 Regulatory and Compliance Issues: Projects may face legal or regulatory challenges that require
careful consideration and adherence to ensure compliance.

 Poor Communication: Ineffective communication among team members, stakeholders, and project
sponsors can lead to misunderstandings and project delays.

 Environmental and External Factors: External factors such as economic changes, market conditions,
or political instability can impact project initiation and success.

 Inadequate Project Management Practices: Insufficient use of project management methodologies

and tools can contribute to difficulties in monitoring progress and controlling project variables.
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Business Process Engineering

 Business Process Engineering (BPE) is a systematic approach

to redesigning, improving, and optimizing an organization's core
business processes for increased efficiency, effectiveness, and
overall performance.

 BPE involves a fundamental rethinking of existing processes,

often with the goal of achieving substantial and transformative
improvements.

 The primary focus is on maximizing value to the organization

and its customers while minimizing waste, redundancies, and
inefficiencies.
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Business Process Re-Engineering

 Business Process Re-Engineering aims to reshape an

organization's operations, making them more agile, cost-effective,
and capable of delivering higher value to customers.

 It is particularly relevant in a rapidly changing business

environment where adaptability and efficiency are essential for
success.
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Role of information Technology in BPR

 IT is an integral part of the BPR process, supporting the

redesign and optimization of business processes by automating
tasks, improving data analysis, facilitating collaboration,
enhancing customer interactions, and ensuring compliance.

 IT's role in BPR is crucial in achieving the goals of increased

efficiency, competitiveness, and customer satisfaction.
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Case Study
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 Background: Amazon.com, founded in 1994, is one of the world's largest online

retailers. It started as an online bookstore but has since diversified into a global e-
commerce and cloud computing giant. Amazon's success is not just attributed to
its business model but also to its relentless focus on optimizing business
processes and information systems.
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 Challenges: In its early years, Amazon faced several challenges, including:

 Rapid Growth: Amazon experienced explosive growth, which strained its
existing processes and systems.
 Inventory Management: Efficient management of a vast inventory of
products was a complex task.
 Customer Experience: Providing a seamless online shopping
experience was essential to customer retention and growth.
 Solutions:

 z Optimization:
Supply Chain

 Amazon invested heavily in building a sophisticated supply chain management system. Its advanced
warehouses are equipped with robots for order picking and packing, which significantly reduces order
processing times.

 Data-Driven Decision-Making:

 Amazon relies on big data analytics for inventory management, demand forecasting, and personalization. This
data-driven approach helps Amazon predict customer preferences and optimize pricing and inventory levels.

 Amazon Web Services (AWS):

 Amazon's cloud computing platform, AWS, was launched in 2006. It not only generated substantial revenue but
also improved internal efficiency. AWS allowed Amazon to scale its IT infrastructure quickly and efficiently,
reducing downtime and increasing reliability.

 Customer-Centric Approach:

 Amazon's information systems focus on providing a superior customer experience. The recommendation
engine and personalized shopping experiences drive customer loyalty and increased sales.

 Automation and Robotics:

 Amazon introduced robots in its fulfillment centers, which work alongside employees to speed up order
processing. This automation has revolutionized the e-commerce industry.
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 Results:

 Efficiency Gains:
 Amazon's investments in supply chain optimization and automation have significantly reduced delivery times and
increased operational efficiency. This has helped them maintain a competitive edge.

 Increased Sales and Market Share:

 The data-driven approach to personalized recommendations and pricing optimization has led to higher sales and
increased market share.

 Profitability:
 Despite its focus on rapid growth, Amazon's efficiency improvements, and diversified revenue streams, including AWS,
have made it consistently profitable.

 Customer Satisfaction:
 Amazon's relentless focus on the customer experience has led to high levels of customer satisfaction and loyalty.

 Innovation and Expansion:

 Amazon's efficient processes and information systems have allowed the company to innovate and expand into various
industries, including cloud computing, digital streaming, and more.
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Further Readings
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Case Study: Successful Project Initiation

Introduction

 Company Background: XYZ Tech Solutions

 Industry: Information Technology Services

Problem Identification (Before Project Initiation)

 XYZ Tech Solutions faced declining customer satisfaction.

 Inefficiencies in project delivery and resource allocation.

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Project Identification and Initiation Steps

1. Identification of Key Issues

 Conducted thorough analysis of customer feedback and internal processes.
 Identified bottlenecks in project delivery and resource management.

2. Formation of Project Team

 Assembled a cross-functional team with expertise in project management, technology, and customer
relations.

3. Project Scope Definition

 Clearly defined the scope of the project, focusing on improving project delivery and customer satisfaction.

4. Stakeholder Engagement
 Engaged with key stakeholders, including clients and internal teams, to gather input and set expectations.

5. Feasibility Study
 Conducted a feasibility study to assess the technical, operational, and economic viability of proposed
improvements.
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Implementation Phase

1. System Request and Approval

 Developed a comprehensive System Request outlining the project goals and expected outcomes.

 Obtained necessary approvals from senior management.

2. Project Kickoff
 Held a kickoff meeting to communicate project goals, roles, and expectations to the entire team.

 Established a clear timeline and milestones.

3. Continuous Monitoring and Adaptation

 Implemented a robust project monitoring system.

 Regularly reviewed progress and made necessary adjustments to ensure alignment with goals.
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Results and Success Metrics

1. Improved Customer Satisfaction
 Customer satisfaction scores increased by 30% within the first six months.
2. Streamlined Project Delivery
 Reduced project delivery times by 20% through better resource allocation and streamlined processes.
3. Financial Impact
 Increased revenue by 15% due to improved project efficiency and customer retention.

Lessons Learned
 Emphasized the importance of thorough project initiation.
 Highlighted the need for continuous monitoring and adaptability.
 Showcased the positive impact of stakeholder engagement.

Conclusion
 The success of this project highlights the critical role of effective project initiation in addressing
organizational challenges and achieving sustainable growth.
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Thank You