Damietta University

Faculty of Computers and Information

Lecture Notes
In

Introduction to Information Systems

Prepared by
Dr\ Amira Seddik ElZeiny
Information Systems Department,
Faculty of Computers and Information, Damietta University

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 TABLE OF CONTENT

CHAPTER 1: Introduction to Information Systems

1.1 Information Concepts

A. Information vs. Data
B. Information, Knowledge, and Business Intelligence
C. Characteristics of Valuable Information

1.1 Systems Concepts

A. Definition of a System
B. Elements of a System
C. Types of Systems

CHAPTER 2: Information Systems in Organizations

2.1 What is Information System?

2.2 Computer-based Information Systems
2.3 Organizational Levels and Information Systems
2.4 Types of Information Systems

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CHAPTER 3: Electronic and Mobile Commerce

3.1 Introduction to Electronic Commerce

3.2 Multistage Model for E-Commerce
3.3 E-commerce Business Challenges
3.4 Introduction to Mobile Commerce
3.5 Advantages of Electronic and Mobile Commerce
3.6 Global Challenges of E-Commerce and M-Commerce
3.7 Technology infrastructure required to support E-Commerce and M-Commerce

CHAPTER 4: System Development Life Cycle

41 What is System Development and Life Cycle?

4.2 Phases of SDLC
4.3 Alternative Approaches to Development

CHAPTER 5: Management Information Systems

5.1 What is MIS

5.2 Why Mis

5.3 Types of Mis

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5.4 Benefits of Mis

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CHAPTER 1:

INTRODUCTION TO INFORMATION
SYSTEMS

Information systems are used in almost every imaginable profession. Entrepreneurs and small business owners use information
systems to reach customers around the world. For example, Sales representatives use information systems to advertise products,
communicate with customers, and analyze sales trends. In this chapter we will discuss the fundamentals of information systems.

1. Information Concepts:
A. Data, information, and knowledge
We live in the information age. In the same way that the development of industry created the industrial age, the development of
information technology systems, and especially the internet, has created the information age. It has been a long-held belief by
many philosophers that knowledge is power and that knowledge stems from understanding of information; information, in turn,
is the assigning of meaning to data. To develop learners' understanding of information technology, we start by defining these three
related concepts.
Information is a central concept of this book. The term is used in the title of the book, in this section, and in almost every chapter.
To be an effective manager in any area of business, you need to understand that information is one of an organization’s most
valuable resources. This term, however, is often confused with data.

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If we give you a number 1-212- 290-4700, it does not make any sense on its own. It is just a raw data.
However, if we say Tel: +1-212-290-4700, it starts making sense. It becomes a telephone number. If I gather some more data and
record it meaningfully like: Address: 350 Fifth Avenue, 34th floor New York, NY 10118-3299 USA Tel: +1-212-290-4700 Fax:
+1-212-736-1300 It becomes a very useful information - the address of New York office of Human Rights Watch, a non-profit,
non-governmental human rights organization.

A. Information vs. Data

Data can be described as unprocessed facts and figures. Plain collected data as raw facts cannot help in decision-making. However,
data is the raw material that is organized, structured, and interpreted to create useful information systems. Data is defined as
'groups of non-random symbols in the form of text, images, voice representing quantities, action and objects'. Information is
interpreted data; created from organized, structured, and processed data in a particular context.

While Information can be defined as data that has been processed into a form that is meaningful to recipient and is of real or
perceived value in the current or the prospective action or decision of recipient.
Information is the result of processing data, usually by computer. This results in facts, which enables the processed data to be
used in context and have meaning. Information is data that has meaning.

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If we put Information into an equation, it would look like this:
Data + Meaning = Information

B. Information, Knowledge, and Business Intelligence

knowledge is produced as a result of understanding information that has been given to us, and using that information to gain
knowledge of how to solve problems.

If we put Knowledge into an equation, it would look like this:

Information + application or use = Knowledge

The Information Hierarchy can be expressed as follows:

• Data - The raw material of information.
• Information - Data organized and presented by someone, and
• Knowledge - Information read, heard, or seen, and understood.
and a final term can be added to the Information Hierarchy
• Business Intelligence - Information Management pertaining to an organization's policy or decision-making, particularly when
tied to strategic or operational objectives.

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Let’s review the following example:
Data: The number 40 000 is a piece of data, as is the name Ahmed. Without anything else to help us, these two items of data are
meaningless.
Information: If we now say that ‘Ahmed is a teacher’ and ‘$40 000 is a teacher’s salary’, the data is given meaning or context,
and makes more sense to us.
Knowledge: builds on the information. Knowledge is ‘Ahmed is a teacher and he earns $40 000 per year’.
C. Characteristics of Valuable Information

The value of information is directly linked to how it helps decision makers achieve the organization’s goals. What are the main
features of good quality information in a business? We summarize its key characteristics.

1. Relevant

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Information obtained and used should be needed for decision-making - it doesn't matter how interesting it is. Businesses are often
criticized for producing too much information simply because their information systems can "do it". How can we make sure
information is relevant?
1. Closely define the objectives of any information reports.
2. Produce information that focuses on "exceptions”, e.g. problems, high or low values, where limits have been exceeded.

2. Up-to-date

Information needs to be timely if it is to be actioned. For example, the manager of a large retail business needs daily information
on how stores are performing and which products are selling well (or not) so that immediate action can be taken. To improve the
speed with which information is produced, businesses usually need to look at upgrading or replacing their information systems.

3. Accurate

As far as possible, information should be free from errors, i.e. the figures add up. Users of information should be told whenever
assumptions or estimates have been used.
Accurate information is usually a function of accurate data collection. If information needs to be extremely accurate, then more
time needs to be allocated for it to be checked. However, businesses need to guard against trying to produce "perfect" information
- it is often more important for the information to be up-to-date than perfect.

4. Meeting user needs

Different users have different needs: A managing director doesn't have time to trawl through thick printouts of the week's
production or sales listings - he or she wants a summary of the key facts. A quality control supervisor will want detailed
information about quality testing results rather than a brief one-line summary of how things are going. It's a good idea to encourage
users to help develop the style and format of information reporting that they require.
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 5. Easy to use and understand

Information should be clearly presented (e.g., use summaries/charts) and concise. It also needs to be communicated using an
appropriate medium (e.g. email, printed report, presentation). Businesses should also consider developing "templates" which are
used consistently throughout the organization so users get used to seeing information in a similar style.

6. Worth the cost

Information costs money. Data is costly to collect, analyze and report. Information takes time to read and assimilate. All users
should question whether the information they receive / have requested is worthwhile.

7. Reliable

Information should come from authoritative sources. It's good practice to quote the source used - whether it be internal or external
sources. If estimates or assumptions have been applied, these should be clearly stated and explained

The next table summarizes the Characteristics of Valuable Information:

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 2. Systems Concepts:
The key term used most frequently in this book is system. Understanding systems and how they work is critical to understanding
systems analysis and design.

A. Definition of a System
A system can be defined as a set of interrelated components that collect, manipulate, store, and disseminate data and information
and provide a feedback mechanism to meet an objective.
A System means an organized relationship among functioning units or components. It is an orderly grouping of interdependent
components linked together according to a plan to achieve a specific objective.

B. Elements of Systems
The elements of the system are:

Outputs and Inputs

• The main aim of a system is to produce an output which is useful for its user.
• Inputs are the information that enters into the system for processing.
• Output is the outcome of processing.
Processor(s)
• The processor is the element of a system that involves the actual transformation of input into output.
• It is the operational component of a system. Processors may modify the input either totally or partially, depending on the
output specification.
• As the output specifications change, so does the processing. In some cases, input is also modified to enable the processor
for handling the transformation.
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Control
• The control element guides the system.
• It is the decision–making subsystem that controls the pattern of activities governing input, processing, and output.
• The behavior of a computer System is controlled by the Operating System and software. In order to keep system in balance,
what and how much input is needed is determined by Output Specifications.
Feedback
• Feedback provides the control in a dynamic system.
• Positive feedback is routine in nature that encourages the performance of the system.
• Negative feedback is informational in nature that provides the controller with information for action.
Environment
• The environment is the “super system” within which an organization operates.
• It is the source of external elements that strike on the system.
• It determines how a system must function. For example, vendors and competitors of organization’s environment, may
provide constraints that affect the actual performance of the business.

Boundaries and Interface

• A system should be defined by its boundaries. Boundaries are the limits that identify its components, processes, and
interrelationship when it interfaces with another system.
• Each system has boundaries that determine its sphere of influence and control.
• The knowledge of the boundaries of a given system is crucial in determining the nature of its interface with other systems
for successful design

The next figure shows the system elements:

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System Performance and Standards

System performance can be measured by its:

1. Efficiency
2. Effectiveness.
3. Or using performance standards

Efficiency of a system is a measure of what is produced divided by what is consumed. It can range from 0 to 100 percent. For
example, the efficiency of a motor is the energy produced (in terms of work done) divided by the energy consumed (in terms of
electricity or fuel). Some motors have an efficiency of 50 percent or less because of the energy lost to friction and heat generation.

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Effectiveness of a system is a measure of the extent to which a system achieves its goals. It can be computed by dividing the
goals actually achieved by the total of the stated goals. For example, a company might want to achieve a net profit of $100 million
for the year using a new information system. Actual profits, however, might only be $85 million for the year. In this case, the
effectiveness is 85 percent (85/100 = 85 percent).
A system performance standard is a specific objective of the system. For example, a system performance standard for a
marketing campaign might be to have each sales representative sell $100,000 of a certain type of product each year. A system
performance standard for a manufacturing process might be to provide no more than 1 percent defective parts. After standards are
established, system performance is measured and compared with the standard. Variances from the standard are determinants of
system performance.

C. Types of Systems
The systems can be divided into the following types:

Physical or Abstract Systems

• Physical systems are tangible entities. We can touch and feel them.
• Physical System may be static or dynamic in nature. For example, desks and chairs are the physical parts of computer
center which are static. A programmed computer is a dynamic system in which programs, data, and applications can change
according to the user's needs.
• Abstract systems are non-physical entities or conceptual that may be formulas, representation or model of a real system.
Open or Closed Systems
• An open system must interact with its environment. It receives inputs from and delivers outputs to the outside of the system.
For example, an information system which must adapt to the changing environmental conditions.
• A closed system does not interact with its environment. It is isolated from environmental influences. A completely closed
system is rare in reality.

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Adaptive and Non Adaptive System
• Adaptive System responds to the change in the environment in a way to improve their performance and to survive. For
example, human beings, animals.
• Non Adaptive System is the system which does not respond to the environment. For example, machines.
Permanent or Temporary System
• Permanent System persists for long time. For example, business policies.
• Temporary System is made for specified time and after that they are demolished. For example, A DJ system is set up for a
program and it is dissembled after the program.
Natural and Manufactured System
• Natural systems are created by the nature. For example, Solar system, seasonal system.
• Manufactured System is the man-made system. For example, Rockets, dams, trains.
Social, Human-Machine, Machine System
• Social System is made up of people. For example, social clubs, societies.
• In Human-Machine System, both human and machines are involved to perform a particular task. For example, Computer
programming.
• Machine System is where human interference is neglected. All the tasks are performed by the machine. For example, an
autonomous robot.
Man–Made Information Systems
• It is an interconnected set of information resources to manage data for particular organization, under Direct Management
Control (DMC).
• This system includes hardware, software, communication, data, and application for producing information according to
the need of an organization.
• Man-made information systems are divided into three types:
• Formal Information System − It is based on the flow of information in the form of memos, instructions, etc., from top level to
lower levels of management.
• Informal Information System − This is employee based system which solves the day to day work related problems.
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• Computer Based System − This system is directly dependent on the computer for managing business applications. For example,
automatic library system, railway reservation system, banking system, etc.

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CHAPTER 2:

INFORMATION SYSTEMS IN ORGANIZATIONS

2.1 What is an Information System?

As mentioned previously, an information system (IS) is a set of interrelated elements or components that collect (input),
manipulate (process), store, and disseminate (output) data and information, and provide a corrective reaction (feedback
mechanism) to meet an objective (see next Figure). The feedback mechanism is the component that helps organizations achieve
their goals, such as increasing profits or improving customer service.

Input In information systems:

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input is the activity of gathering and capturing raw data. In producing paychecks, for example, the number of hours every
employee works must be collected before paychecks can be calculated or printed. In a university grading system, instructors must
submit student grades before a summary of grades for the semester or quarter can be compiled and sent to the students.
Processing In information systems:
processing means converting or transforming data into useful outputs. Processing can involve making calculations, comparing
data, and taking alternative actions, and storing data for future use. Processing data into useful information is critical in business
settings. Processing can be done manually or with computer assistance.
In a payroll application, the number of hours each employee worked must be converted into net, or take-home, pay. Other inputs
often include employee ID number and department. The processing can first involve multiplying the number of hours worked by
the employee’s hourly pay rate to get gross pay. If weekly hours worked exceed 40, overtime pay might also be included. Then
deductions—for example, federal and state taxes, contributions to insurance or savings plans—are subtracted from gross pay to
get net pay. After these calculations and comparisons are performed, the results are typically stored. Storage involves keeping
data and information available for future use, including output, discussed next.
Output In information systems:
output involves producing useful information, usually in the form of documents and reports. Outputs can include paychecks for
employees, reports for managers, and information supplied to stockholders, banks, government agencies, and other groups. In
some cases, output from one system can become input for another. For example, output from a system that processes sales orders
can be used as input to a customer billing system.

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Feedback In information systems:
feedback is information from the system that is used to make changes to input or processing activities. For example, errors or
problems might make it necessary to correct input data or change a process. Consider a payroll example. Perhaps the number of
hours an employee worked was entered as 400 instead of 40. Fortunately, most information input The activity of gathering and
capturing raw data. processing Converting or transforming data into useful outputs. output Production of useful information,
usually in the form of documents and reports. feedback Output that is used to make changes to input or processing activities. An
Overview systems check to make sure that data falls within certain ranges. For number of hours worked, the range might be from
0 to 100 because it is unlikely that an employee would work more than 100 hours in a week. The information system would
determine that 400 hours is out of range and provide feedback. The feedback is used to check and correct the input on the number
of hours worked to 40. If undetected, this error would result in a very high net pay on the printed paycheck!

Feedback is also important for managers and decision makers. For example, a furniture maker could use a computerized feedback
system to link its suppliers and plants.
The output from an information system might indicate that inventory levels for mahogany and oak are getting low—a potential
problem. A manager could use this feedback to decide to order more wood from a supplier. These new inventory orders then
become input to the system.

2.2 Computer-Based Information System (CBIS)

A computer-based information system (CBIS) is an information system that uses computer technology to perform different
functions. For example, the google uses internet to accomplish its task, to reach its customers. It aims to support operations,
management, and decision making.
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There are 5 components in a computer-based information system. Each component is responsible to perform some specific
functionality. So, every component must come together in order to produce a computer based information system. The components
of a computer-based information system are stated below: 1. Hardware 2. Software 3. Data 4. Procedures 5. People

1.Hardware: The term hardware refers to machinery. This category includes the computer itself, which is often referred to as the
central processing unit (CPU), and all of its support equipment. Among the support equipment are input and output devices,
storage devices and communications devices.

2.Software: The term software refers to computer programs and the manuals (if any) that support them. Computer programs are
machine-readable instructions that direct the circuitry within the hardware parts of the system to function in ways that produce
useful information from data. Programs are generally stored on some input/output medium, often a disk or tape.

3.Data: Data are facts that are used by programs to produce useful information. Like programs, data are generally stored in
machine-readable form on disk or tape until the computer needs them.

4.Procedures: Procedures are the policies that govern the operation of a computer system. “Procedures are to people what software
is to hardware” is a common analogy that is used to illustrate the role of procedures in a system.

5.People: Every system needs people if it is to be useful. Often the most over-looked element of the system are the people,
probably the component that most influence the success or failure of information systems.

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2.3 Organizational levels and Information Requirements
Understanding the various levels of an organization is essential to understand the information required by the users who operate
at their respective levels.
A. Pyramid Diagram of Organizational levels and information requirements

The following diagram illustrates the various three levels of a typical organization and the appropriate information systems in
each level.

1. Operational management level

The operational level is concerned with performing day to day business transactions of the organization.

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Examples of users at this level of management include cashiers at a point of sale, bank tellers, nurses in a hospital, customer care
staff, etc.
Users at this level use make structured decisions. This means that they have defined rules that guides them while making decisions.
For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing. All the sales
person needs to decide whether to give credit to a customer or not is based on the current credit information from the system.

2. Tactical Management Level

This organization level is dominated by middle-level managers, heads of departments, supervisors, etc. The users at this level
usually oversee the activities of the users at the operational management level.
Tactical users make semi-structured decisions. The decisions are partly based on set guidelines and judgmental calls. As an
example, a tactical manager can check the credit limit and payments history of a customer and decide to make an exception to
raise the credit limit for a particular customer. The decision is partly structured in the sense that the tactical manager has to use
existing information to identify a payments history that benefits the organization and an allowed increase percentage.

3. Strategic Management Level

This is the most senior level in an organization. The users at this level make unstructured decisions. Senior level managers are
concerned with the long-term planning of the organization. They use information from tactical managers and external data to
guide them when making unstructured decisions.

Decision level Characteristics of decisions Examples of decisions

Decide whether or not to come into the market
Top Management Unstructured
Approve the budget allocated to capital

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Decision level Characteristics of decisions Examples of decisions
Decide on long-term goals
Design a marketing plan
Intermediate management Semi-structured Develop a departmental budget
Design a website for the company
Determine the overtime hours
Determine the rules for stock replenishment
Operational management Structured
Grant credit to customers
Offer special offers to customers

B. Categories of Information

There are three categories of information related to managerial levels and the decision managers make.

1) Strategic Information
• This information is required by topmost management for long range planning policies for next few years. For example,
trends in revenues, financial investment, and human resources, and population growth.
• This type of information is achieved with the aid of Decision Support System (DSS).
2) Managerial Information
• This type of Information is required by middle management for short and intermediate range planning which is in terms of
months. For example, sales analysis, cash flow projection, and annual financial statements.
• It is achieved with the aid of Management Information Systems (MIS).

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3) Operational Information
• This type of information is required by low management for daily and short term planning to enforce day-to-day operational
activities. For example, keeping employee attendance records, overdue purchase orders, and current stocks available.

C. TYPES OF INFORMATION SYSTEMS

A typical organization is divided into operational, middle, and upper level. The information requirements for users at each level
differ. Towards that end, there are number of information systems that support each level in an organization.

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Information systems can be devided into operation support systems and Management support system.
operation support systems process data generated by business process system. It has 3 parts:
1. TPS (transaction process system)
2. PCS (process control system)
3. OAS (office automation system)

While Management support system provides information and support, needed for effective decision making by managers. For
example:
1. MIS (management information system)
2. DSS (decision support system)
3. EIS (executive information system)

In the next section we’re covering some different types of information systems and how they’re applied.

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1) Transaction Processing Systems

Transaction processing systems (TPS) are computerized information systems that were developed to process large amounts of
data for routine business transactions such as payroll and inventory. A TPS eliminates the tedium of necessary operational
transactions and reduces the time once required to perform them manually, although people must still input data to computerized
systems.
Transaction processing systems are boundary-spanning systems that permit the organization to interact with external
environments. Because managers look to the data generated by the TPS for up-to-the-minute information about what is happening
in their companies, it is essential to the day-to-day operations of business that these systems function smoothly and without
interruption.

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Examples of transaction processing systems include;

• Point of Sale Systems – records daily sales

• Payroll systems – processing employees’ salary, loans management, etc.
• Stock Control systems – keeping track of inventory levels
• Airline booking systems – flights booking management

2) Office automation systems

(OAS) support data workers, who do not usually create new knowledge but rather analyze information to transform data or
manipulate it in some way before sharing it with, or formally disseminating it throughout, the organization and, sometimes,
beyond. Familiar aspects of OAS include word processing, spreadsheets, desktop publishing, electronic scheduling, and
communication through voice mail, email (electronic mail), and teleconferencing .

3) Knowledge work systems (KWS)

It supports professional workers such as scientists, engineers, and doctors by aiding them in their efforts to create new knowledge
(often in teams) and by allowing them to contribute it to their organization or to society at large.

4) Management Information Systems

Management information systems (MIS) do not replace transaction processing systems; rather, all MIS include transaction
processing. MIS are computerized information systems that work because of the purposeful interaction between people and
computers. By requiring people, software, and hardware to function in concert, management information systems support users
in accomplishing a broader spectrum of organizational tasks than transaction processing systems, including
decision analysis and decision making.
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To access information, users of the management information system share a common database.
The database stores both data and models that help the user interact with, interpret, and apply that data. Management information
systems output information that is used in decision making. A management information system can also help integrate some of
the computerized information functions of a business.

Examples of management information systems include;

• Sales management systems – they get input from the point of sale system
• Budgeting systems – gives an overview of how much money is spent within the organization for the short and long
terms.
• Human resource management system – overall welfare of the employees, staff turnover, etc.

5) Decision Support Systems

A higher-level class of computerized information systems is decision support systems (DSS). DSS are similar to the traditional
management information system because they both depend on a database as a source of data. A decision support system departs
from the traditional management information system because it emphasizes the support of decision making in all its phases,
although the actual decision is still the exclusive province of the decision maker. Decision support systems are more closely
tailored to the person or group using them than is a traditional management information system. Sometimes they are discussed as
systems that focus on business intelligence.

Examples of decision support systems include;

• Financial planning systems – it enables managers to evaluate alternative ways of achieving goals. The objective is to find
the optimal way of achieving the goal. For example, the net profit for a business is calculated using the formula Total Sales
less (Cost of Goods + Expenses). A financial planning system will enable senior executives to ask what if questions and
adjust the values for total sales, the cost of goods, etc. to see the effect of the decision and on the net profit and find the
most optimal way.
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 • Bank loan management systems – it is used to verify the credit of the loan applicant and predict the likelihood of the loan
being recovered.

6) Artificial Intelligence and Expert Systems

Artificial intelligence (AI) can be considered the overarching field for expert systems. The general thrust of AI has been to develop
machines that behave intelligently. Two avenues of AI research are (1) understanding natural language and (2) analyzing the
ability to reason through a problem to its logical conclusion. Expert systems use the approaches of AI reasoning to solve the
problems put to them by business (and other) users.
Expert systems are a very special class of information system that has been made practicable for use by business as a result of
widespread availability of hardware and software such as personal computers (PCs) and expert system shells. An expert system
(also called a knowledge based system) effectively captures and uses the knowledge of a human expert or experts for solving a
particular problem experienced in an organization. Notice that unlike DSS, which leave the ultimate judgment to the decision
maker, an expert system selects the best solution to a problem or a specific class of problems.
The basic components of an expert system are the knowledge base, an inference engine connecting the user with the system by
processing queries via languages such as structured query language (SQL), and the user interface. People called knowledge
engineers capture the expertise of experts, build a computer system that includes this expert knowledge, and then implement it.

7) Executive Support Systems

When executives turn to the computer, they are often looking for ways to help them make decisions on the
strategic level. Executive support systems (ESS) help executives organize their interactions with the external
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environment by providing graphics and communications technologies in accessible places such as boardrooms or
personal corporate offices. Although ESS rely on the information generated by TPS and MIS, executive support
systems help their users address unstructured
decision problems, which are not application specific, by creating an environment that helps them think about
strategic problems in an informed way. ESS extend and support the capabilities of executives, permitting them to
make sense of their environments.
The next figure summarizes the three managerial levels and its information requirements.

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CHAPTER 3:

ELECTRONIC AND MOBILE COMMERCE

Electronic and mobile commerce have transformed many areas of our lives and careers. One fundamental change has been the
manner in which companies interact with their suppliers, customers, government agencies, and other business partners.

As a result, most organizations today have or are considering setting up business on the Internet. To be successful, all members
of the organization need to participate in that effort. As a sales or marketing manager, you will be expected to help define your
firm’s e-commerce business model. Customer service employees can expect to participate in the development and operation of
their firm’s Web site. As a human resource or public relations manager, you will likely be asked to provide Web site content for
use by potential employees and investors. Analysts in finance need to know how to measure the business impact of their firm’s
Web operations and how to compare that to competitors’ efforts. Clearly, as an employee in today’s organization, you must
understand what the potential role of e-commerce is, how to capitalize on its many opportunities, and how to avoid its pitfalls.

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McGraw-Hill/Irwin ©2008,The McGraw-Hill Companies, All Rights Reserved

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A supply chain is a complex logistics system that consists of
facilities that convert raw materials into finished products which
are later distributed to end consumers or end customers.

Meanwhile, supply chain management deals with the flow of

goods within the supply chain in the most efficient manner.

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CHAPTER 4:

SYSTEM DEVELOPMENT LIFE CYCLE

4.1 What is System Development and Life Cycle?

System Development and Life Cycle(SDLC) is an approach or a concept
which is the collection of tools and technologies that help to convert a
manual system into the computerized automated system or to develop the
new one. It’s structured step-by-step approach for developing information
systems

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It is a conceptual model used in project management that describes the
stages involved in an information system development project from an
initial feasibility study through maintenance of the completed application.

The Systems Development Life Cycle (SDLC) is a conceptual model used

in project management that describes the stages involved in an information
system development project from an initial feasibility study through
maintenance of the completed application.

An effective System Development Life Cycle (SDLC) should result in a

high quality system that meets customer expectations, reaches completion

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within time and cost evaluations, and works effectively and efficiently in
the current and planned Information Technology infrastructure.

4.2 Phases of SDLC

Systems Development Life Cycle is a systematic approach which explicitly
breaks down the work into phases that are required to implement either new
or modified Information System. Each phase deals with a key issue and
produces result called deliverables. The result of one phase becomes the
input for the next phase.

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 SDLC PHASE ACTIVITIES

1. Planning • Define the system to be developed

• Set the project scope
• Develop the project plan

2. Analysis • Gather business requirements

3. Design • Design the technical architecture

• Design system models

4. Development • Build technical architecture

• Build databases and programs

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5. Testing • Write test conditions
• Perform testing

6. Implementation • Write user documentation

• Provide training

7. Maintenance • Build a help desk

• Support system changes

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Here we describe briefly the phases of the traditional SDLC:
1. Feasibility Study or Planning
• Define the problem and scope of existing system.
• Overview the new system and determine its objectives.
• Confirm project feasibility and produce the project Schedule.
• During this phase, threats, constraints, integration and security of system
are also considered.
• A feasibility report for the entire project is created at the end of this phase.
2. Analysis
• Gather, analyze, and validate the information.
• Define the requirements and prototypes for new system.
• Evaluate the alternatives and prioritize the requirements.

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• Examine the information needs of end-user and enhances the system
goal.
• A Software Requirement Specification (SRS) document, which specifies
the software, hardware, functional, and network requirements of the
system is prepared at the end of this phase.
3. System Design
• Includes the design of application, network, databases, user interfaces,
and system interfaces.
• Transform the SRS document into logical structure, which contains
detailed and complete set of specifications that can be implemented in a
programming language.
• Create a contingency, training, maintenance, and operation plan.
• Review the proposed design. Ensure that the final design must meet the
requirements stated in SRS document.
• Finally, prepare a design document which will be used during next
phases.

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4. Development
• Development phase - take all of your detailed design documents from the
design phase and transform them into an actual system
• Two primary development activities:
• Build the technical architecture
• Build the database and programs
• Both of these activities are mostly performed by IT specialists
5. Testing
• Testing phase - verifies that the system works and meets all of the
business requirements defined in the analysis phase
• Two primary testing activities:
1. Write the test conditions
• Test conditions - the detailed steps the system must
perform along with the expected results of each step
• Perform the testing of the system
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 • Unit testing – tests individual units of code
• System testing – verifies that the units of code function
correctly when integrated
• Integration testing – verifies that separate systems work
together
• User acceptance testing (UAT) – determines if the
system satisfies the business requirements
• Combine all the modules together into training environment that detects
errors and defects.
• A test report which contains errors is prepared through test plan that
includes test related tasks such as test case generation, testing criteria,
and resource allocation for testing.

6. Implementation

• Implementation phase - distribute the system to all of the knowledge

workers and they begin using the system to perform their everyday jobs
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• Two primary implementation activities:
•
1. Write detailed user documentation
• User documentation - highlights how to use the system
2. Provide training for the system users
• Online training - runs over the Internet or off a CD-ROM
• Workshop training - is held in a classroom environment
and lead by an instructor

• Integrate the information system into its environment and install the new
system.
• Choose the right implementation method:

1. Parallel implementation – use both the old and new system

simultaneously
2. Plunge implementation – discard the old system completely and
use the new
3. Pilot implementation – start with small groups of people on the
new system and gradually add more users
4. Phased implementation – implement the new system in phases

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 7. Maintenance/Support
• Include all the activities such as phone support or physical on-site support
for users that is required once the system is installing.
• Implement the changes that software might undergo over a period of
time, or implement any new requirements after the software is deployed
at the customer location.
• It also includes handling the residual errors and resolve any issues that
may exist in the system even after the testing phase.
• Maintenance and support may be needed for a longer time for large
systems and for a short time for smaller systems.

4.3 Alternative Approaches to Development

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There are many different systems development approaches, and they vary
in terms of the progression that is followed through the phases of the SDLC.
Prototyping, computer-aided software engineering (CASE) tools, joint
application
design (JAD), rapid application development (RAD), participatory design
(PD), and the use of Agile Methodologies represent different approaches
that streamline and improve the systems analysis and design process from
different perspectives.

In this part we will discuss the following approaches only:

A. The Waterfall Approach
B. The Prototyping approach

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 C. The Rapid Application Development (RAD) approach:
D. Extreme programming

A. The Waterfall Approach

Sometimes called the classic life cycle or the linear sequential model, the
waterfall model is a systematic, sequential approach to software

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development in which development is seen as flowing downwards (like a
waterfall) that begins at the system level and progresses through analysis,

design, coding, testing and support. To follow the waterfall model, one
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proceeds from one phase to the next in a sequential manner. For example,
one first completes "requirements specification". When the requirements are
fully completed, one proceeds to design. The software is designed (on paper)
and this design should be a plan for implementing the requirements given.
When the design is fully completed, an implementation of that design, i.e.
coding of the design is made by programmers. After the implementation
phases are complete, the software product is tested and debugged; any faults
introduced in earlier phases are removed here. Then the software product is
installed, and later maintained to add any new functions that the user needs
and remove bugs. Thus in a waterfall model, we can move to the next step
only when the previous step is completed and removed of all errors. There

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is no jumping back and forth or overlap between the steps in a waterfall
model. The next figure shows the waterfall approach of the SDLC.

Advantages
• Easy to understand, easy to use
• Provides structure to inexperienced staff
• Milestones are well understood
• Sets requirements stability
• Good for management control (plan, staff, track)
• Works well when quality is more important than cost or schedule

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Disadvantages
• All requirements must be known upfront
• Deliverables created for each phase are considered frozen
• inhibits flexibility
• Can give a false impression of progress
• Does not reflect problem
• iterations of phases
• Integration is one big bang at the end
• Little opportunity for customer to preview the system

When to use the waterfall model:

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 • Requirements are very well known
• Product definition is stable
• Technology is understood
• New version of an existing product
• Porting an existing product to a new platform

B. The Prototyping approach

The prototyping approach begins with the requirements gathering. The

developer and the customer meet and define the objectives for the software,
identify the needs, etc. A “quick design‟ is then created. This design focuses
on those aspects of the software that will be visible to the customer. It then
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leads to the construction of a prototype. The prototype is then checked by
the customer and any modifications or changes that are required are made
to the prototype. Looping takes place in this process and better versions of
the prototype are created. These are continuously shown to the user so that
any new changes can be updated in the prototype. This process continues
till the user is satisfied with the system. Once a user is satisfied, the
prototype is converted to the actual system with all considerations for
quality and security.
The prototype is considered as the „first system‟. It is advantageous because
both the customers and the developers get a feel of the actual system. But
there are certain problems with the prototyping model too. The next figure
shows the prototype approach.

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The prototype is usually created without taking into consideration overall
software quality.

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(2) When the customer sees a working model in the form of a prototype, and
then is told that the actual software is not created, the customer can get
irritated.
(3) Since the prototype is to be created quickly, the developer will use
whatever choices he has at that particular time (eg, he may not know a good
programming language, but later may learn. He then cannot change the
whole system for the new programming language). Thus the prototype may
be created with less-than-ideal choices.

C. The Rapid Application Development (RAD) approach:

Rapid Application Development (RAD) is an incremental software

development process model that focuses on a very short development cycle.
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The RAD model is a “high-speed‟ version of the linear sequential model. It
enables a development team to create a fully functional system within a very
short time period.
Rapid application development is a collection of methodologies that
emerged in response to the weaknesses of waterfall development and its
variations. RAD incorporates special techniques and computer tools to
speed up the analysis, design, and implementation phases in order to get
some portion of the system developed quickly and into the hands of the users
for evaluation and feedback. CASE (computer-aided software engineering)
tools, JAD (joint application development) sessions, fourth-
generation/visual programming languages (e.g., Visual Basic.NET), and
code generators may all play a role in RAD. While RAD can improve the

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speed and quality of systems development, it may also introduce a problem
in managing user expectations. As systems are developed more quickly and
users gain a better understanding of information technology, user
expectations may dramatically increase and system requirements may
expand during the project
Disadvantages:
· For Large projects, RAD requires sufficient resources to create the right
number of RAD teams.
· If a system cannot be properly divided into modules, building components
for RAD will be problematic
· RAD is not appropriate when technical risks are high, e.g. this occurs when
a new application makes heavy use of new technology.
D. Extreme programming
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Agile development is a group of programming-centric methodologies that
focus on streamlining the SDLC. Much of the modeling and documentation
overhead is eliminated; instead, face-to-face communication is preferred. A
project emphasizes simple, iterative application development in which every
iteration is a complete software project, including planning, requirements
analysis, design, coding, testing, and documentation. (See next Figure).
Cycles are kept short (one to four weeks), and the development team focuses
on adapting to the current business environment. There are several popular
approaches to agile development, including extreme programming (XP).

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Extreme programming emphasizes customer satisfaction and teamwork.
Communication, simplicity, feedback, and courage are core values.
Developers communicate with customers and fellow programmers. Designs
are kept simple and clean.

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Early and frequent testing provides feedback, and developers are able to
courageously respond to changing requirements and technology. Project
teams are kept small.
An XP project begins with user stories that describe what the system needs
to do. Then, programmers code in small, simple modules and test to meet
those needs.
Users are required to be available to clear up questions and issues as they
arise. Standards are very important to minimize confusion, so XP teams use
a common set of names, descriptions, and coding practices. XP projects
deliver results sooner than even the RAD approaches, and they rarely get
bogged down in gathering requirements for the system.
For small projects with highly motivated, cohesive, stable, and experienced

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teams, XP should work just fine.

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CHAPTER 5

MANAGEMENT INFORMATION SYSTEMS

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