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Lecture Note 2 Understanding Organizational Style and Its Impact on Information Systems


Part I: System Analysis Fundamentals Lecture Note 2 Understanding Organizational Style and Its Impact on Information Systems Systems Analysis and Design – PowerPoint PPT presentation

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Title: Lecture Note 2 Understanding Organizational Style and Its Impact on Information Systems

Lecture Note 2Understanding OrganizationalStyle
and Its Impact onInformation Systems
Part I System Analysis Fundamentals
  • Systems Analysis and Design
  • Kendall Kendall
  • Sixth Edition

Major Topics
  • Analytical skills for systems analysts
  • System Thinking
  • Organizational environment
  • Context-level Data Flow Diagram
  • Entity-relationship Diagram
  • Levels of management

Succeeding as a Systems Analyst
  • An successful SA should have
  • Interpersonal skills
  • Analytical skills
  • Management skills
  • Technical skills

The relationship between a system analysts
skills and the systems development life cycle.
Interpersonal Skill
  • Interpersonal skill It is important to
    establish and maintain good working relationships
    with clients and colleagues by effective
    communication. Skills could be improved by
    experience alone.
  • Gathering information may be achieved by
    conduction interviewing, listening and
  • Written or oral presentations will be used
    during the project development process.

Analytical Skill
  • Analytical skill The ability to see things as
    system. That means SA should be able to have
    system thinking when they analysis a system.
  • System thinking subsystem, interrelated,
    procedures, input, output. ..
  • Organizational knowledge company operation,
    knowledge on functions, internal policies,
  • Problem identification compare current results
    and predictable results so as to identify
  • Problem analyzing and solving collect data,
    project design, test system and choose best

Management Skills
  • Management skills
  • Resource Management Arrange the most suitable
    resources of a project development.
  • Project Management Control the project finished
    on time and within the budget. SA can keep track
    with the whole projects progress in order to
    achieve the goal.
  • Risk Management have ability of prediction (??)
    on what might go wrong in a project and use the
    knowledge and skills to prevent (??) them.
  • Change Management SA is the agent of change,
    which aims at creating a most smooth and
    effective system for users.

Technical Skills
  • Technical skills SA should keep their skills
    up-to-date and understand a wide variety of
    technologies required.
  • The different kinds of computers
  • Programming languages
  • Operating systems
  • Database and file management systems
  • Data communication standards
  • Systems development tools and environments
  • Web development languages and tools
  • Decision support system generators.

System Thinking
  • System An interrelated set of components, with
    an identifiable boundary, working together for
    some purpose.
  • A system has nine characteristics
  • Component (Subsystem)
  • Interrelated subsystems,
  • Boundary,
  • Purpose,
  • Environment,
  • Interface,
  • Input,
  • Output,
  • Constrains.

A general depiction of a system
  • Subsystem An irreducible (?????) part or
    aggregation of parts that make up a system.
  • Interrelated subsystem Dependence of one
    subsystem on one or more subsystem.
  • Boundary The line that marks the inside and
    outside of a system and that sets off the system
    from its environment.
  • Purpose The overall goal or function of a
  • Environment Everything external to a system that
    interacts with the system.
  • Interface Point of contact where a system meets
    its environment or where subsystems meet each
  • Constraint A limit to what a system can
  • Input whatever a system takes from its
    environment in order to fulfil its purpose.
  • Output whatever a system returns to its
    environment in order to fulfil its purpose.

Apply System Thinking to Information System
  • Thinking of organizations as system is a useful
    perspective from which to begin developing
    information systems.
  • Information systems can be seen as subsystems in
    larger organizational systems, taking input from,
    returning output to and their organizational

  • To analyze and design appropriate information
    systems, systems analysts need to comprehend the
  • The levels of management
  • Design of organizations
  • The organizational cultures
  • Organizations are composed of smaller
  • interrelated system departments, units and
  • interdependent subsystems.
  • Serving specialized functions accounting,
    marking, production, data process and management.
  • System and subsystem boundaries and environments
    impact on information system analysis and design.
  • How smaller systems are involved.
  • How they function.
  • What its environment

Interrelatedness and interdependence of systems
  • All system and subsystem are interrelated and
  • When any element of a system is changed or
    eliminated, the rest of the systems elements and
    subsystems are also significantly affect.
  • All system are contained by boundaries separating
    them from their environments.
  • Organizations must be able first to import
    people, raw materials and information through
    their boundaries (input), then to exchange their
    finished products, services or information with
    the outside world (output).
  • Feedback
  • Is useful for system planning and control.
  • It is received from within the organization and
    from the outside environment around it. It is
    self-corrects. It helps administrators formulate
    more specific goals as inputs.

This figure Shows how system outputs are used as
feedback that compares performance with goals.
This comparison in turn helps administrators
formulate more specific goals as inputs.
Italian knitwear company that markets its
clothing in USA.
Computerized Inventory Information System
Find out what colors are selling best and dyes
(??) sweaters (???) in hot-selling colors
immediately before shipping them.
For production planning
Account current projected demand ? formulates a
proposed solution
Organizational Environment
  • Anything external to an organizations boundaries
    is considered to be an environment.
  • Community environment
  • Size of its population and physical location.
  • Factors such as education, income.
  • Economic environment
  • Market factors
  • Competition
  • Political environment
  • State and local government

Open and Closed Systems
  • A key aspect (??) of a system for building is the
    systems relationship with its environment.
  • There is no such thing as an absolutely open or
    completely closed organization.
  • Systems are described as either
  • Open system interacts freely with its
    environment, taking input and returning output.
    (such as creative, art departments, library,
    information system are characterized as open.)
  • Free-flowing information within the organization.
    As environment changes an open system must adapt
    (???) to change .
  • Output from one system becomes input to another.
  • Closed system is cut off from its environment
    and does not interact with it. (such as defense
    (??) department unit assigned to work on
    top-secret defense planning affecting national
  • Limited by numerous (??) rules.
  • Information on a need to know basis.

Taking a Systems Perspective
  • Taking a system perspective allows systems
    analysts to start broadly (???) clarifying and
    understanding the various business with which
    they will come into contact.
  • It is important that members of subsystems
    realize that their work is interrelated.

Neither subsystem can accomplish its goals
without the other.
  • Problem occur when each manager possesses a
    different picture of the importance of his or her
    own functional subsystem.
  • If a production manager is promoted but
    continues to stress (??) production scheduling
    and performance of line workers, the broader
    aspects of forecasting (??) and policy making may
  • This tendency is a danger in all sorts of
    businesses. Their tunnel vision often creates
    problems for the systems analyst trying to
    separate actual informational requirements from
    desires (??) for a particular kind of information.

Example A fast food restaurant Hoosier Burger
as a system.
  1. Physical subsystems kitchen, dining room,
    counter, storage and office.
  2. The subsystems are interrelated and work together
    to prepare food and deliver it to customers.
  3. The boundary of Hoosier Burger is represented by
    its physical walls.
  4. One purpose is to make a profit (??) for its
  5. Environment customers, food distributors, bank,
    local labor supply and neighbourhood fast food
  6. Interface at the counter where customers place
    orders and another at the back door where food
    and supplies are delivered. Still another is the
    telephone manager use regularly to talk with
    bankers and food distributors.

7. Input food, labor and cash. 8. Output
prepare food bank deposits and trash (???). 9.
Constraints the restaurant in the foods it may
offer for sale, how much money it can make on
any given day, Rules governing food storage.
  • Using a systems to understand organizations
    allows to
  • Acknowledge (??) the idea of systems composed of
  • Their interrelatedness and their interdependence,
  • The existence of boundaries that allow or prevent
    (??) interaction between various departments and
    elements of other subsystems and environments.
  • The existence of internal environments,
    characterized by degrees of openness and closed
    ness, which might differ (??) across departments,
    units, or even projects.

Enterprise Resource Planning
  • Enterprise Resource Planning (ERP) describes an
    integrated organizational (enterprise)
    information system.
  • EPR is software helps the flow of information
    between the functional areas within the
  • ERP systems include
  • Manufacturing components
  • Capacity planning
  • Material production scheduling
  • Forecasting.
  • Sales and operations planning
  • Distribution
  • Managing the supply chain.

Context-Level Data Flow Diagram (DFD)An
Environment Model
A system or subsystem may be graphically depicted
in several ways. The various graphical models
show the boundaries of the system and the
information used in the system.
  • A context-level data flow diagram is an important
    tool for showing data used and information
    produced by a system.
  • It provides an overview of the setting or
    environment the system exists within which
    entities supply and receive data/information.
  • It shows how data moves through an information
    system. DFD represent a logical model that shows
    what the system does, not how it does it.

  • Relationships show how the entities are
  • Degrees of relationship
  • the number of entity types
  • that participate in that
  • relationship.
  • There are three types of relationships
  • One to one.
  • One to many.
  • Many to many.
  • Many to many.
  • Relationship Notations

Mandatory one
Mandatory many
Optional one
Optional many
  • A process receives input data and produces
    output information.
  • Context level has only one process, representing
    the entire system.
  • Process, representing the entire system. It is
    given the number 0.
  • An Entity is labeled with a noun.
  • Data flow, represented by an arrow.
  • Data flow is labeled with a noun.

Travel Request
Data Flow Example1
The passenger (an Entity) initiates a travel
request (data flow). The context level diagram
doesnt show enough detail to indicate exactly
what happens, but we can see that the passengers
preferences (??) and the available flights are
sent to the travel agent, who sends ticketing
information back to the process. We can also see
that the passenger reservation is sent to the
A Fast Food Restaurants Customer Order
Information System depicted in a data flow
Data Flow Example2
  • Four subsystems
  • Process Customer Food Order
  • Update Goods Sold File
  • Update Inventory File
  • Produce Management Report
  • The arrows show how these subsystems are
  • Input of the system Customer Order.
  • Output of the system Receipt, Kitchen Order and
    Management Report.
  • Environment Customers, the Kitchen, and
    Restaurant Manager.
  • Constraints is the system inability to provide
    on-line, real time information inventory level
    and so on.

Systems purpose is to take customer orders ,
send the orders to the kitchen, monitor (??)
goods sold and inventory, generate reports for
management, and improve the efficiency of the
restaurants operations.
Entity-Relationship Diagrams (E-R Diagrams)
  • Entity-relationship Diagrams help the analyst
    understand the organizational system and the data
    stored by the organization.
  • E-R Diagram consists of
  • Entity Anything about which we wish to maintain
    information, may be a person, a place , a thing,
    a concept or an event.
  • Relationship is the association that describes
    the interaction among the entities.
  • Attribute Property or characteristic of an
    entity type. Data attributes may be added to the

  • There are three types of entities
  • Fundamental entity
  • Symbol is a rectangle.
  • Be labeled with a noun.
  • Associative entity, linking entities.
  • Joins two entities.
  • Can only exist between two entities.
  • Symbol is a diamond inside a rectangle.
  • Attributive entity, to describe attributes and
    repeating groups.

- Describes attributes and repeating groups. -
Symbol is an oval in a rectangle.
1. An EMPLOYEE is assigned to one OFFICE. 2. An
OFFICE is occupied by one EMPLOYEE. 1. One CARGO
AIRCRAFT will serve one or more DISTRIBUTION
served by one CARGO AIRCRAFT. 1. A SYSTEM
ANALYST is assigned to zero or many PROJECTs. 2.
Zero or many PROJECTS will be developed by one
1. A MACHINE is undergoing zero or more SCHEDULED
are being done to one MACHINE.
1. One or many SALESPEOPLE are assigned to one or
many CUSTOMER. 2. One or many CUSTOMERs are
called on by one or many SALESPEOPLE.
1. Zero or many HOME OFFICEs have one or many
EMPLOYEE, 2. One or many EMPLOYEE are assigned to
zero or many HOME OFFICEs.
1. Many PASSENGERs are flying to many
visited by many PASSENGERs.
Another Entity Relationship Examples
  • Exactly one employee is assigned to one phone
    extension. No one shares the phone extension in
    this office.
  • The red arrows are not part of the
    entity-relationship diagram. They are present to
    demonstrate how to read the E-R diagram.

The red arrows are not part of the
entity-relationship diagram. They are present to
demonstrate how to read the E-R diagram.
Creating Entity-Relationship Diagrams
  • Entity-Relationship (E-R) Diagrams are used by
    system designers to help model the file /
  • Steps used to create E-R diagrams
  • List the entities in the organization to gain a
    better understanding of the organization.
  • Choose key entities to narrow the scope of the
  • Identify what the primary entity should be.
  • Confirm (??) the results of the above through
    data gathering methods (investigation,
    interviewing, administering questionnaires,
    observation, prototyping)..
  • E-R diagrams help the SA
  • To understand what business the organization is
    actually in.
  • To determine the size of the problem.
  • To discern (??) if the right problem is being
  • E-R diagrams need to be confirmed / revised
    as the data-gathering process takes place.

Levels of Management
  • The three levels of managerial control are
  • Operations management.
  • Middle management.
  • Strategic management.

Each level carries its own responsibilities and
all work toward achieving organizational goals
and objectives in their own ways.
Operations Management
  • Operations manager make decisions using
    predetermined rules that have predictable (????)
    outcomes when implemented correctly.
  • Management make decisions that affect
    implementation in work scheduling, inventory
    control, shipping, receiving, and control of
    processes . Operation managers oversee the
    operating details of the organization.
  • To ensure that the basic tasks of the
    organization are accomplished on time and in
    accordance (??) with organizational constraints.
  • Implications for Operations Manager
  • Dependent on internal information that is of a
    repetitive, low-level nature.
  • Highly dependent on information that captures
    current performance.
  • Large uses of on-line, real-time information
  • Past performance information and periodic (???)
    information is only moderate (???).
  • They have little use for external information
    that allows future projections..

Middle Management
  • Makes short-term planning control decisions
    about how resources may best be allocated to meet
    organizational objectives.
  • Decisions are dependent on internal information,
    both historical and prediction oriented.
  • Their decision range all the way from forecasting
    future resource requirements to solving employee
    problem that threaten (??) productivity.
  • Decisions may be partly operational and partly
  • Implications for Middle Manger
  • Need both short- longer-term information.
  • Highly need for information in real time
  • Current information on performance.
  • Highly dependent on internal information.
  • Highly need for historical information, along
    with information that allows prediction of future

Strategic Management
  • Look outward from the organization to the future.
  • Make decisions that will guide middle and
    operations managers.
  • Work in highly uncertain decision-making
  • Define statements of goals and the determination
    of strategies policies to achieve them. (E.g.
    develop new product lines, acquire (??) other
    compatible companies.)
  • Implications for strategic Manager
  • Highly dependent on information from external
    sources that supply news of market trends and the
    strategies of competing corporations.
  • Need for information of a predictive nature.
  • Need for periodically reported information.
  • Need general , summarized information.
  • Need qualitative (????) information, mainly from
    external sources.

Managerial Levels
  • Each of the three levels of management have
  • Different organization structure.
  • Leadership style.
  • Technological considerations (??).
  • Organization culture.
  • Human interaction.
  • All carry implications for the analysis and
    design of information systems.

  • What skills an successful SA should be have ?
  • What is the system thinking?
  • Define openness and closeness in an
    organizational environment.
  • What is the main purposes for drawing a DFD and
    E-R Diagram ?
  • List the three broad, horizontal levels of
    management in organizations.
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