Lecture 4
Lecture 4
Information
Systems
Development
z Importance in modern business
environments
Goal-Oriented
Continuous Improvement
z
Examples of common business
processes
Sales Process:
Lead generation
Qualification of leads
Sales presentations
Proposal creation
Closing deals
Market research
Lead nurturing
Issue resolution
Technical support
Complaint handling
Financial reporting
Tax management
Project Management:
Regulatory compliance
Transactional Data
Analytical Data
z
Transactional Data:
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.
z
Analytical Data:
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.
z
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.
z
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.
z
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.
z
Part II
z
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.
z
Information Systems Development
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.
z
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.
z
Test
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.
z
Maintain
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.
Debugging tool. Debugging assists the developer in locating errors and finding
solutions.
z
Case Tools
Documentation Tools
Analysis Tools
Design Tools
Programming Tools
Prototyping Tools
Maintenance Tools
z
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.
Improved Productivity
Cost Reduction
Enhanced Decision-Making
Competitive Advantage
Customer Satisfaction
Risk Management
Scalability
Data-driven Insights
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.
z
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.
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'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.
Amazon introduced robots in its fulfillment centers, which work alongside employees to speed up order
processing. This automation has revolutionized the e-commerce industry.
z
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.
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.
Introduction
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.
z
Implementation Phase
2. Project Kickoff
Held a kickoff meeting to communicate project goals, roles, and expectations to the entire team.
Regularly reviewed progress and made necessary adjustments to ensure alignment with goals.
z
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.
z
Thank You