FIS 431/631 Financial Information Systems: Analysis and Design Introduction Joe Callaghan

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FIS 431/631Financial Information Systems
Analysis and DesignIntroductionJoe Callaghan
Oakland University Department of Accounting
Finance
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IntroductionCourse Overview

• Review Tentative Course Syllabus
• Prerequisites
• Instructor Info
• Ways to Communicate
• Course Resources
• Grading
• Other Handouts/Readings
• Questions?

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Course Overview

• M.O.T.E. framework
• Planning Overview
• Analysis Overview
• Design Overview

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The MOTE Approach

• MO - Model-Oriented
• We use the SDLC logical framework a systematic
  and orderly approach to systems development
• We implement this framework by using the IE set
  of methodologies (developed by James Martin, 1989)

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Stages of the Systems Development Life Cycle
Planning
Analysis
Design
Construction
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Systems Planning

• Also called Information Strategy Planning (ISP)
• Concerned with top management goals, targets, and
  critical success factors
• Concerned with how IT can be used to create new
  opportunities or competitive advantages
• An overview model is created of the enterprise,
  its functions, data, and information needs
• The overview model is split into areas
  appropriate for analysis

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Systems Analysis

• Decides what processes are needed to implement
  business strategy
• Decides how processes interrelate
• Decides what data is needed
• Identifies areas for systems design
• Involves users extensively

• Creates activity models (FHD, PM)
• Creates a fully normalized data model (ERD)
• Creates interaction models (REA)
• Identify PLDs, which contain business logic to
  enforce business rules
• Remains independent of technology and current
  systems

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Systems Design

• Implements processes (conceptual views of what
  actions need to be carried out from systems
  analysis) into procedures (practical views of
  possible ways to implement processes)
• Builds windows, interfaces, dialogue boxes, forms
• Maps to technical environment

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Systems Construction

• Generates programming code which results in
  executables
• Physically structures the database
• Design is linked to construction by means of
  prototyping

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The MOTE Approach (continued)

• TE - Tool-Enhanced
• Software development tool used is Oracles
  Designer 9i

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Tool Oracle Designer 9i
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Designer 9i Implements Entire Systems
Development Life Cycle...
Phases
PLANNING
ANALYSIS
DESIGN
ENVIRONMENT MAPPING
CONSTRUCTION
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Designer 9i Tool Outputs
Organization Hierarchy, ERD, FHD, PM, PLD
Planning Analysis
Interfaces, Mappings
Design
Generated Code, DDL (Java, PL/SQL)
Construction
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Advantages of the MOTE Approach

• rigorous, yet flexible framework
• structured logic, but not language-specific
• relational database, but not vendor-specific
• support for varied technological environments,
  e.g., block mode, batch processing,
  client-server, web-enabled systems
• produces IT-savvy graduates

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Systems Planning Overview

• Desired Orientation
• IPSO
• Business as a System
• Management Functions (Peace)

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Desired Orientation

• Systems Viewpoint
• Input (resources), Process (convert), Storage
  (data), Output (product/service) (IPSO business
  template or pattern)
• RDBMS vs. Legacy Systems
• Tables vs. Journals Ledgers
• Signing Convention vs. Drs Crs
• Cross-functional vs. Stovepipe Systems
• Diagramming vs. coding
• A Focus on a Variety of User Views
• versus only what accountant wants

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Modeling A Business
Cash Disbursements
Cash Receipts


Suppliers
Enterprise
Customers
AMP Raw Materials, Supplies, Labor,
Finance, Fixed assets
MSC Marketing Sales Collection Delivery
Convert Operations Job Costing
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Activity ModelsTemplate for Decomposition of
Business Processes (IPSO template)
Add value
Relational Database Management System
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Business Process Types

• Acquisition/ Maintenance /Payment Processes -
  (AMP) - acquire, maintain, and pay for resources
  needed (e.g. labor, finance, fixed assets, raw
  materials and supplies, research development)
  to provide goods and services.
• Conversion Processes - adding value converting
  the resources into goods and services for
  customers.
• Marketing/Sales/Collection Processes (MSC)
  marketing, delivering goods and services to
  customers, and collecting payment.

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Traditional Accounting Stovepipe Systems
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Managing Business and Information Processes
(PEACE)
Should Do
Do
Feedback
Control Evaluate
Plan
Execute And
Trigger
Measures
Business Rules
Business Processes
Information System
Data
Record Data Convert to Information
How to Value Add
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P - Plan
Planning requires leaders to define the business
objectives, to prioritize business processes, and
to provide a blueprint for achieving the
objectives. They must identify opportunities
available to the organization as well as assess
the risk associated with each opportunity.
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E - Execute
Managers execute their plan by dividing business
processes into smaller activities (events),
assigning people to perform each activity, and
motivating them to do a good job. A clearly
defined plan increases the likelihood of proper
execution.
A - And
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C - Control
Control is exercised by reviewing the results of
an activity or an entire business process to see
if they are consistent with expectations. The
review may cause a change in expectations or a
change in the way an activity or a process is
performed to bring the actual results in line
with expectations.
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E - Evaluate
Periodically, managers evaluate the operating
results to see if the business processes are
achieving the organization's objectives. The
results of the evaluation are used to modify the
plans, objectives, and expectations.
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Relationship between Business Processes,
Information Processes and Management Activities
Information System
RDMS Data
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Managing OrganizationsBusiness Information
Processes

• PEACE (Management)
• Plan
• Execute, And
• Control
• Evaluate
• Business Processes
• AMP Acquire, Maintain, Pay Factors of Production
• Convert Add value, particularly unique to
  organization
• MSC Market, Sell/Provide, Collect payment
• Information Processes
• Record, Maintain, Report
• Convert Data into Information

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Overview of Systems Analysis
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Modeling

• A model is a representation of reality
• Systems analysts seek to understand an
  organization by building a representation of the
  business and its workings, called a business
  model (also conceptual or logical model)
• A business model includes three primary types of
  models (1) a data model, (2) activity models,
  and (3) interaction models

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Analysis Tasks
Data Analysis
Interaction Analysis
Analysis Model Confirmation
Design Planning
Activity Analysis
Current System Analysis
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Data Activity Analysis

• Done in parallel
• Developed iteratively
• Ask User
• Document
• Feedback
• Refine
• Deliverables - Entity Relationship Diagram,
  Function Hierarchy Diagram, Process Models

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Interaction Analysis

• Examines the relationships and interactions
  between data and processes
• Three techniques
• REA analysis
• Entity type life cycle analysis
• Process logic analysis

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Current Systems Analysis

• Provides validation of understanding
• Planning for transition
• Preparation for conversion
• Identification of reusable components

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Model Confirmation

• Checks business area model for correctness and
  completeness
• Comparison with current systems
• Stability analysis

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Business Modeling In Analysis An Overview of the
MIS Approach
ERD
Data Model

User Feedback
PLD, ELC
Interaction Models
Analysis Model Confirmation
Activity Models
Design
FHD, PM
IE captures information at the highest possible
level of abstraction and refines each element
until all of them combine to form executing
applications
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Analysis Tasks with REA Interaction Modeling
FHD, PM
Activity Analysis
REA
Interaction Analysis 1
PLD, ELC
ERD
Systems Design
Data Analysis
Interaction Analysis 2
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Types of Models 1

• Data model The ERD is a data model that depicts
  data (entity types, attributes) and the
  relationships enforcing business rules between
  entity types
• The primary goal is to accurately depict the
  fundamental elements of business information,
  i.e., entity types, attributes, and associations
  between entity types
• The data model is implemented as a database in a
  developed system (central to the IS)

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ERD with Normalization
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Types of Models 2

• Activity models Records the activities of
  interest to the business (i.e., the things the
  business does or should do).
• Involves decomposition of business processes from
  the highest level (AMP of Resources, Conversion
  Processes, MSC Processes) to the lowest
  (elementary processes)
• Also involves the specification of process
  dependency events, to refine decomposition of the
  processes.

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Types of Models 3

• Interaction models Define how things the
  business does (activities/events) affect things
  of interest to the business (data)
• The REA model is an interaction model
• Faculty at OU have combined the IE notation of an
  interaction model with the accounting REA model
• Interaction modeling provides a detailed basis
  for systems design, in the form of a completed
  business model

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Overview of Systems Design
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Introduction

• Analysis precedes it and is prerequisite to it
• Construction and Implementation is next stage
• Consists of two parts
• External
• Internal or Technical

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Prerequisites to Design

• Analysis Deliverables
• Data Model ERD
• Activity Model FHD, PM
• Interaction model REA, PLD
• Use Belgium Chocolate
• Website link
• See models and Access database

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Design

• External
• Goal develop system as it appears to users
• Who are the users?
• What are the locations?
• What are the technical possibilities?
• Internal (Technical)
• transform logical data model into a physical
  representation of the database
• transform activity models into executable system

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Tasks

• Choose Application Style
• GUI
• Client Server
• Terminal based
• Batch, perhaps using legacy systems
• Designing the Dialog
• Data Flow Diagrams
• Design the Interface
• Windows, Dialog boxes, controls
• Design the Procedure Logic (PrAD)
• Triggers, Procedures and Reports
• Design the Data Structure

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Design Deliverables

• Interface Layouts, using views and Interface
  Design Tool (Forms Developer)
• A Set of Procedural Logic
• Report requirements (Reports Developer)
• Data Structure List

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GUIs

• Create Window
• Specify Window characteristics
• Exercise to re-enforce learning
• Add menu items to a window
• Specify menu items
• Create Controls
• Add controls that implement views
• Add other controls, e.g. OK, Cancel
• Map Import/Export Views
• Add Events, invocation of system logic

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Client/Server

• Presentation logic, Data manipulation logic, Data
  Management
• Remote Presentation (Presentation management only
  on Client, all logic on Server)
• Distributed Process (Presentation Logic on
  Client, others on Server)
• Remote Data Access (Only Data management on
  Server)

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Technical Issues

• Oracle Designer/Developer
• RDBMS Oracle 8i, ODBC
• Code PL/SQL, Java
• Student Models
• E-mail, Web-page, etc.
• Oracle accounts
• Production server
• Development server

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Gen to Designer
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Next Session

• Process Modeling
• Review Belgium Chocolate
• Read Article
• Review Oracle Tutorial