DEVELOPING MIS SYSTEM

Question paper

1. What is BPR? How IT is an enabler for BPR?2. What is Brick and Mortar ?How Virtual companies

are different from Brick and Mortar business?3. How IT helps in becoming the Agile company?4. What is SDLC?What are the steps involved in

SDLC?5. What is maintenance and its types?6. What is Testing ? Difference between White box

and Black box testing?7. What is Predictive and Adaptive approach for

software development with example?8. What is Waterfall model?

System Development Life Cycle

SDLC (System Development Life Cycle) is defined as the process (as a whole) of developing system or software to meet certain requirements.

It covers many activities Understanding why the system should be built, Studying the project feasibility, analyzing problems, choosing the system design and architecture,

implementing and testing it, up to delivering the system as product to the

user.

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.

Phases of SDLC

System development life cycle (SDLC). includes six steps

investigation, analysis, design, development, implementation and maintenance.

SDLC Methodology

The existing system is evaluated. Deficiencies are identified. This can be done by interviewing users of the system and consulting with support personnel.

The new system requirements are defined. In particular, the deficiencies in the existing system must be addressed with specific proposals for improvement.

The proposed system is designed. Plans are laid out concerning the physical construction, hardware, operating systems, programming, communications, and security issues.

 

SDLC Methodology Contd..

The new system is developed. The new components and programs must be obtained and installed. Users of the system must be trained in its use, and all aspects of performance must be tested. If necessary, adjustments must be made at this stage.

The system is put into use. This can be done in various ways. The new system can phased in, according to application or location, and the old system gradually replaced. In some cases, it may be more cost-effective to shut down the old system and implement the new system all at once.

Once the new system is up and running for a while, it should be exhaustively evaluated. Maintenance must be kept up rigorously at all times. Users of the system should be kept up-to-date concerning the latest modifications and procedures.

Phases of SDLC

Investigation Phase System Investigation :What is the Fault in the System? Preliminary Analysis Determining the nature and scope of the problems to be solved is

carried out. Possible solutions are proposed, Feasibility Study is carried outHere are some possible definitions of problems:

1. The existing system has a poor response time, i.e. it is slow.2. It is unable to handle workload.3. The problem of cost, i.e. the existing system is not economical.4. The problem of accuracy and reliability.5. The requisite information is not produced by the existing system.6. The problem of security.

Key Activities Conduct preliminary investigation/feasibility study Determine scope of problem/project Identify constraints to systems development Identify resources required

Feasibility Study The feasibility of a proposed system can be assessed in

terms of four major categories, as summarized below.1. Organizational Feasibility: the extent to which a proposed information system supports the objective of the organization.

2. Economic Feasibility: is the cost benefit analysis.In this study, costs and returns are evaluated to know whether returns justify the investment in the system project. (a) The cost of conducting a full system investigation.(b) The cost of hardware and software for the class of application being considered.(c) The benefits in the form of reduced costs, improved customer service, improved resource utilization or fewer costly errors.

3. Technical Feasibility: whether reliable hardware and software resources required to meet the needs of the proposed system can be acquired or developed by the organization in the required time.

4. Operational Feasibility: the willingness and the ability of the management, employees, customers, suppliers, etc., to operate, use and support a proposed system.

Analysis Phase/Requirement definition Phase

The aim of this phase is to document the existing user functions, processes, activities and data.

The analyst understands the type of information and the nature of the functions required for the propose system. The analyst makes a brief survey of the requirements and tries to analyze the performance of the system which is to be developed.

Key Activities Gather business requirements Build trust and rapport with users Document the existing system Develop preliminary data and process models Verify requirements and current system/procedures with

users

How to get information

Direct observation Interviews (individual and groups,

structured and unstructured) Questionares Surveys Records Observations Activity logs/work diaries

Requirements User Interface Requirement Processing Requirements Storage Requirements Control requirements Output of analysis phase is System

requirement specification, a requirements specification for a software system, is a complete description of the behavior of a system to be developed and may include a set of use cases that describe interactions the users will have with the software.

Flow Charts

A system flow chart, or data flow chart, is used to describe the flow of data through a complete data-processing system. Different graphic symbols represent the clerical operations involved and the different input, storage, and output equipment required. Although the flow chart may indicate the specific programs used, no details are given of how the programs process the data. In other words, it's like a DFD.

A program flow chart is used to describe the flow of data through a particular computer program, showing the exact sequence of operations performed by that program in order to process the data. Different graphic symbols are used to represent data input and output, decisions, branches, and subroutines.

Design Phase

Objective of the design phase is to create a design that satisfies the agreed software requirements.

Successful completion of the Design Phase should comprise:

Transformation of all requirements into detailed specifications covering all aspects of the system

Approval to progress to the Development Phase

System Design Phase Data structure (e.g. field names, data types and lengths, filenaming, folder structure

schemes etc How the data is to be acquired (what procedures and equipment will be

needed?)  Data input procedures and equipment (e.g. keyboard? barcode reader? ICR/OMR?)  Interfaces (e.g. what will a data entry screen look like? Will people need to leave the

main screen to access functions? How will menus be organised into commands and submenus? What shortcut keys will be used? Will you use a text box, listbox, combo box, tickbox for a particular item of data entry? What colour scheme will be used? What navigation scheme will be used? What icons represent what meaning? Will the layout of the data entry form help users enter data in the required order and the required format? Control procedures - What validation rules will be used on what fields to check for data reasonableness, existence or format?) What will different error messages say?

What workloads and capacities the system must be capable of - e.g. storage capacities, number of transactions per hour, disaster-recovery abilities 

Documentation and training requirements for different types of users  Validation and storage methods to be used   Backup requirements and procedures - what needs to be backed up, how often,

how backups are stored, what backup scheme will be used? 

Tools for System Design

A data flow diagram is used to describe the flow of data through a complete data-processing system.

Different graphic symbols are used to represent input, process ,storage, and output.

Flow chart may indicate the specific programs used, no details are given of how the programs process the data. 

Gantt Charts is detailed timeline of events in a project laid out.

Structure chart consist of a top-down description of a process and its sub-processes.

Data Dictionary - describes (for example) a database's fields, types, lengths, validation rules, formulae.

Development phase

The design must be translated into a machine-readable form.

The code generation step performs this task. If the design is performed in a detailed manner, code generation can be accomplished without much complication.

Programming tools like compilers, interpreters, debuggers etc. are used to generate the code.

Different high level programming languages like C, C++, Pascal, Java are used for coding.

Testing Phase

Software testing is the process of checking software, to verify that it satisfies its requirements and to detect errors.Software testing methods are traditionally divided into black box testing and white box testing.Black box testingBlack box testing treats the software as a black-box without any understanding of internal behavior. It aims to test the functionality according to the requirements. Thus, the tester inputs data and only sees the output from the test object. White box testingWhite box testing, however, is when the tester has access to the internal data structures and algorithms.

Implementation Phase

In SDLC, implementation refers to post-development process of guiding to use the system. This includes customizations, Systems Integrations, User Policies, User Training and Delivery.Software Implementations involve several professionals like Business Analysts, Technical Analysts, Solution Architect , and Project Managers.

Analysts in the implementation phase acts as the intermediator between user and developers.

The Implementation Phase includes:  Hardware and software installation User Training Documentation

Implementation

Deploying of new system in its target environment. The purpose of the Implementation Phase is to deploy and enable operations of the new information system in the production environment.

Types of Implementation

Direct Approach:Installation of new system and the immediate discontinuation of old system.Sometimes called Cut off.This approach produces rime gap when no system is working.

Parallel Approach:The new system is installed and operated in parallel with the current system untill it has been tested throughly.

It is the opposite of the direct implementation approach. It is costly because of duplicating facelities and personnel to maintain the dual

system. Advantage is the accuracy of the system. Modular Approach:”Pilot Approach” refers to implementation of a system in the

organisation on a module basis.for example:an inventory system might be implemented with only selected product grouping or with all the products on one location of multiple location oreganisation.

Advantages The risk of system failure is localised The problem is identified in the system can be corrected before further

implementation. Other operating personnel can be trained in a live environment before the system is

implemented at their location. Phase-in Approach:”Cut over by segments” which is similar to the modular approach.

The only difference is the system itself is segmented and not the organisation.

Maintenance

Maintenance includes all the activity after the installation of software that is performed to keep the system operational.

Types of Maintenance

System maintenance is an ongoing activity, which covers a wide variety of activities, including removing program and design errors, updating documentation and test data and updating user support. For the purpose of convenience,

Maintenance may be categorized into three classes, namelyi) Corrective,ii) Adaptive, andiii)Perfective.

Corrective Maintenance: - Corrective maintenance refers to action only taken when a system or component failure has occurred.

This type of maintenance implies removing errors in a program, which might have crept in the system due to faulty design or wrong assumptions.

Adaptive Maintenance: - In adaptive maintenance, program functions are changed to enable the information system to satisfy the information needs of the user. This type of maintenance occurs due to organizational changes which may include:

a) Change in the organizational procedures,b) Change in organizational objectives, goals, policies, etc.c) Change in forms,d) Change in information needs of managers.e) Change in system controls and security needs, etc.

Perfective Maintenance: - Perfective maintenance means adding new programs or modifying the existing programs to enhance the performance of the information system.

To respond to user’s additional needs which may be due to the changes within or outside of the organization.

Outside changes are primarily environmental changes that include:a) Changes in governmental policies,laws, etc.,b) Economic and competitive conditions, andc) New technology.

Data Flow diagramsGraphical representation of the logical flow

of data. It is also know as bubble chart.A DFD consists of a series of bubbles joined

by lines representing data flow in the system.

Square: Represents the source and destination of system data.

Arrow: It represents the data flow. Circle or Bubble: Represents a process

that transforms incoming data flow into outgoing data flow.

Open Rectangle: Represents a data store.

Rules for DFD Process should be named and

numbered The direction of flow is from top to

bottom and from left to right. When a process is exploded into

lower levels they are numbered properly.e.g-5 can be exploded in 5.1,5.2..

The name of data stores, source and destinations are written in capital letters.

ER Diagrams  A graphical representation of entities and

their relationships to each other.It is used in organization of data

within databases.The elements of an ERD are: Entities are the "things" for which we want

to store information. An entity is a person, place, thing or event.

Attributes are the data we want to collect for an entity.

Relationships describe the relations between the entities.

 

A relationship is how the data is shared between entities.

There are three types of relationships

1. One-to-One For example, in a database of

employees, each employee name (A) is associated with only one social security number (B).

One to Many For example, for a company with all employees

working in one building, the building name (A) is associated with many different employees (B), but those employees all share the same singular association with entity A.

 Many-to-Many For example, for a company in which all of its

employees work on multiple projects, each instance of an employee (A) is associated with many instances of a project (B), and at the same time, each instance of a project (B) has multiple employees (A) associated with it.

Relationships

Decision Tree

Graphical representation of a sequence of decisions and actions.

The decision tree represents various conditions and actions that resembles branches of a tree that why it is called decision tree.

Example

A computer firm offers the following discount policy to its customers

If payment is made within 10 days 3% discount is allowed on orders above

Rs 10000 2% for orders between 5000 to 10000 1% for orders upto 5000 However if the payment is made more

than 10 days than no discount is allowed.

Objectives of SDLC

An SDLC has three primary business objectives:- Ensure the delivery of high quality systems;- Provide strong management controls;- Maximize productivity.

Waterfall Model In "The Waterfall" approach, the whole

process of software development is divided into separate process phases.

The phases in Waterfall model are: Requirement Specifications phase, Software Design, Implementation and Testing & Maintenance.

All these phases are cascaded to each other so that second phase is started as and when defined set of goals are achieved for first phase and it is signed off, so the name "Waterfall Model".

Waterfall Model

Phases of waterfall maodel Requirement Analysis and Definition

1. All possible requirements of the system to be developed are captured in this phase.

2. Requirements are a set of functions and constraints that the end user (who will be using the system) expects from the system.

3. The requirements are gathered from the end user are analyzed for their validity, and the possibility of incorporating the requirements in the system to be developed is also studied.

4. Finally, a requirement specification document is created which serves the purpose of guideline for the next phase of the model.

System and Software Design1. The requirement specifications from the first phase are studied in this

phase and a system design is prepared. 2. System design helps in specifying hardware and system requirements

and also helps in defining the overall system architecture. 3. The system design specifications serve as an input for the next phase of

the model.

Implementation and Unit Testing1. On receiving system design documents, the work is divided in

modules/units and actual coding is started. 2. The system is first developed in small programs called units, which

are integrated in the next phase. 3. Each unit is developed and tested for its functionality; this is referred

to as unit testing. Unit testing mainly verifies if the modules/units meet their specifications.

Integration and System Testing1. These units are integrated into a complete system during integration

phase and tested to check if all modules/units coordinate with each other, and the system as a whole behaves as per the specifications.

2. After successfully testing the software, it is delivered to the customer.

Operations & Maintenance This phase of the model is virtually a never-ending phase. Actions

taken to solve the problems or errors arises after the system become operational.

Spiral Model

The spiral model, also known as the spiral lifecycle model, combines the features of the prototyping model and the waterfall model.

The spiral model is intended for large, expensive, and complicated projects.

Steps of Spiral Model The new system requirements are defined in as much detail

as possible. This usually involves interviewing a number of users representing all the external or internal users and other aspects of the existing system.

A preliminary design is created for the new system. A first prototype of the new system is constructed from the

preliminary design. This is usually a scaled-down system, and represents an approximation of the characteristics of the final product.

A second prototype is evolved by a fourfold procedure: (1) evaluating the first prototype in terms of its strengths, weaknesses, and risks; (2) defining the requirements of the second prototype; (3) planning and designing the second prototype; (4) constructing and testing the second prototype.

The cycle keep on repeating itself untill the customer is satisfied.

The final system is constructed, based on the refined prototype.

Iterative Model Iteration means the act of repeating a process

with the aim of approaching a desired goal,target or result.

An iterative lifecycle model does not attempt to start with a full specification of requirements.

Instead, development begins by specifying and implementing just part of the software, which can then be reviewed in order to identify further requirements.

This process is then repeated, producing a new version of the software for each cycle of the model.

Prototype A prototype is a working model that is functionally

equivalent to a component of the product. In many instances the client only has a general view of what is expected from the software product.

In such a scenario where there is an absence of detailed information regarding the input to the system, the processing needs and the output requirements, the prototyping model may be employed.

This model reflects an attempt to increase the flexibility of the development process by allowing the client to interact and experiment with a working representation of the product.

The developmental process only continues once the client is satisfied with the functioning of the prototype.

At that stage the developer determines the specifications of the client’s real needs.

Software Prototyping

Software prototyping, a possible activity during software development, is the creation of prototypes, i.e., incomplete versions of the software program being developed.

A prototype typically implements only a small subset of the features of the eventual program, and the implementation may be completely different from that of the eventual product.

The purpose of a prototype is to allow users of the software to evaluate proposals for the design of the eventual product by actually trying them out, rather than having to interpret and evaluate the design based on descriptions.

Data Flow Daigram

A data-flow diagram (DFD) is a graphical representation of the "flow" of data through an information system.

Entities: can be people, departments, other companies, other systems are called sources if they are external to the system and provide data to the system, and sinks if they are external to the system and receive information from the system

Processes must have at least one input and at least one output at the primitive.

Data stores: can be online or “hard copy” (see notes on logical VS physical DFD’s below) are labeled with a noun (e.g. the label “customer” indicates that information about customers is kept in that data store)data is stored whenever there are more than one process that needs it and these processes don’t always run one after the other (if the data is ever needed in the future it must be stored)

Data flows :must originate from and/or lead to a process and data stores cannot communicate with anything except processes

Enterprise resource planning ERP software means Enterprise Resource Planning

systems. ERP systems are large computer systems that

integrate all facets of an operation, including development, manufacturing, sales and marketing.

This integration is accomplished with through a database shared by all the application programs.

An ERP is a “do it all” system that performs everything from entry of sales orders to customer service.

The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

Scope of ERP

The scope offered by ERP is to include other “back-office” functions such as order management, financial management, warehousing, distribution production, quality control, asset management and human resources management.

The evolution of extended-ERP systems has further expanded in recent years to include more “front-office” functions, such as sales force and marketing automation, electronic commerce and supply chain management systems.

Evolution of ERP

In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing.

ERP systems initially focused on automating back office functions that did not directly affect customers and the general public.

History of ERP

Inventory Management & Control : Inventory Management and control focuses on appropriate level of stock in a warehouse.

Material Requirement Planning (MRP) : Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the current inventories levels and the lot sizing procedure for each operation.

Manufacturing Requirements Planning (MRP II) : MRPII focused on the manufacturing process. Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution. A major purpose of MRPII is to integrate primary functions (i.e. production, marketing and finance).

Enterprise Resource Planning (ERP) : Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking.

ERP Software Modules

ERP software consists of many enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization.

Each ERP module is focused on one area of business processes, such as product development or marketing.

Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.

ERP Model

ERP Vendors Depending on your organization's size and needs there are a number of

enterprise resource planning software vendors to choose from in the large enterprise, midmarket and small business ERP markets.

The ERP vendors are continuously expanding the capabilities of their packages by adding functionality for new business functions such as sales force automation, supply-chain, order management, data warehousing, maintenance repair-and-overhaul, etc. SAP-AG, Oracle, JD Edwards,PeopleSoft and Baan – collectively called the “Big Five” of ERP software vendors coovering 70 percent of ERP market share.

Large Enterprise ERP (ERP Tier I)The ERP market for large enterprises is dominated by three companies:

SAP, Oracle and Microsoft. Midmarket ERP (ERP Tier II)For the midmarket vendors include Infor, QAD, Lawson, Epicor, Sage and

IFS. Small Business ERP (ERP Tier III)Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC Software and

Activant Solutions.

Advantages and Disadvantages ERP systems have certain advantages such as

low operating cost and improving customer service.

Tight Integration, Huge storage needs, networking requirements and training overheads are frequently mentioned ERP problems.

ERP projects are large, costly and difficult and that they require large investment in capital and staff and management time. ERP systems are complex, and implementing one can be a difficult, time-consuming and expensive project for a company

Selection criteria of ERP

The three distinct types of an ERP system evaluation were vendor, functional and technical. Criteria such as vendor reputation, financial stability, long term viability and the vendor’s vision/corporate direction were factors that were considered during the vendor evaluation.

Enterprise resource planning (ERP) system is a business management system that

comprises integrated sets of comprehensive software, which can be used, when

successfully implemented, to manage and integrate all the business functions within an

organisation. These sets usually include a set of mature business applications and tools

for financial and cost accounting, sales and distribution, materials management,

human resource, production planning and computer integrated manufacturing, supply

chain, and customer information

Customer Relationship Management Customer Relationship Management (CRM) is

specific software that allows a company to measure and control contacts with customers.

CRM is a business philosphy which provides a vision for the way your company wants to deal with your customers.

CRM can be used for controlling contacts with a customer either by phone, fax, mail and e-mail. The data collected can be used for research and analysis of the customer relationship.

Characteristics of CRM

It will track and report every interaction with a customer, describing the customer's purchase, interest or demand. It will report also the changing needs of the customer and the way your business reacts effectively to them.

Furthermore, the CRM will be a universal instrument for collecting data about the service requests, order entry, satisfaction and billing.

3. Third, the CRM will be able to measure the performance of the business on the basis of internal benchmarks.

4. Last the CRM will facilitate the working processes by emphasizing on the positive and exclude the negative practices in your customer relations center.

Benefits of CRM

• Improve customer Loyalty • Gain Competitive Advantage over

competitors • Increase Sales Revenue • Increase Profitability • Improve internal Productivity • Enhance executive decision making • Decrease costs and expenses • Deliver Value Added Service to your

clients

CRM

CRM Model Customer Attraction. This stage intends to attract the customer

towards the website in order to expose the client to our online offers. In this part of the cycle the customer must be able to find out about our products or services in an easy and simple way .

Customer Acquisition. This stage has the important mission of converting the visitor into a buyer of our products. In order for this to happen the potential customer has to be able to: evaluate the product, when possible visualising it as close as he would do

in a traditional shop compare the product with other similar options. select the product that best fits their needs, eventually purchasing it

Customer Analysis. In this stage the data gathered about the different actions and transactions preformed by the customers are analysed in different ways with the goal of understanding and better using the customers' buying patterns navigation patterns through the website problems they suffer when trying to find information, products or both.

CRM Cycle Plan your marketing strategy, determining the

customer segment you will target and the campaigns you will aim at those segments.Those campaigns should incorporate some kind of loyalty programmes to develop long term relationship with the customer.

Interact with customers through different channels and execute the marketing plan so that both the company and its customer gets most out of their interactions.

Process the information captured during the interaction and ensure that customer requirement are fulfilled.

Leverage the information collected during previous stages and use that to update your plan in order to take relationship with the customer to a higher level.

Vendors of CRM

Vendors of CRM are Microsoft,SAP,Oracle,SiebelSystems ,SalesForce ,Maximizer Software.

CRM Cycle

CRM Cycle- Understand and Differentiate

Understand what they value, what types of service are important to them, how and when they like to interact, and what they want to buy. True understanding is based on a combination of detailed analysis and interaction.

Profiling to understand demographics, purchase patterns and channel preference.

Segmentation to identify logical unique groups of customers that tend to look alike and behave in a similar fashion. Primary research to capture needs and attitudes. Customer valuation to understand profitability, as well as lifetime value or

long-term potential. Value may also be based on the customer's ability or inclination to refer other profitable customers.

Customers need to see that we are differentiating our service and communications based both on what we've learned independently and on what they've told us.

At the same time, differentiation should be based on the value customers are expected to deliver.

Develop and Customize

Earlier companies were product-oriented and used to develop products and services and expected customers to buy them. In a customer-focused world, product and channel development have to follow the customer's lead. Organizations are increasingly developing products and services, and even new channels, based on customer needs and service expectations.

Most organizations today are not able to cost-effectively customize products for individual customers. However, products, services, channels and media can be customized based on the needs of quantitative customer segments. The extent of customization should be based on the potential value delivered by the customer segment.

Interact and deliver

Interaction is also a critical component of a successful CRM initiative. It is important to remember that interaction doesn't just occur through marketing and sales channels and media; customers interact in many different ways with many different areas of the organization including distribution and shipping, customer service and online.

To foster relationships, organizations need to insure that:

All areas of the organization have easy access to relevant, actionable customer information.

All areas are trained how to use customer information to tailor interactions based on both customer needs and potential customer value.

With access to information and appropriate training, organizations will be prepared to steadily increase the value they deliver to customers.

Acquire and Retain

Successful customer retention is based very simply on the organization's ability to constantly deliver on three principles:

Maintain interaction; never stop listening. Continue to deliver on the customer's definition

of value. Remember that customers change as they

move through differing life stages; be alert for the changes and be prepared to modify the service and value proposition as they change.

The use of information technology in e-business has major impacts on society, and thus raises serious ethical issues in the areas such as:

CrimePrivacyIndividualityEmploymentHealthWorking Conditions

Computer crime is a growing threat to society by the criminal or irresponsible actions of computer individuals whoare taking advantage of the widespread use and vulnerability of computers and the Internet and other networks.

IT and Ethical Issues

Ethics refers to the principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors.

Many ethical issues are arising due to Information Technology for both individuals and societies.

IT creates opportunies and helped in social progress but it can also be used to commit crimes and threaten cherished social values. The development of information technology will produce benefits for many and costs for others.

Employment Challenges:The impact of IT on employment is a

major ethical concern and is directly related to the use of computers to achieve automation of work activities.

The use of e-business technologies has created new jobs and increased productivity. However, it has also caused a significant reduction in some types of job opportunities.

Computer Monitoring

One of the most explosive ethical issues concerning the quality of working conditions in e-business is computer monitoring

Computers are being used to monitor the productivity and behavior of employees while they work. Supposedly, computer monitoring is done so employers can collect productivity data about their employees to increase the efficiency and quality of services.

Computer monitoring has been criticized as unethical because:

1. It is used to monitor individuals, not just work, and is done continually, thus violating workers’ privacy and personal freedom.

2. Is considered an invasion of the privacy of employees, because in many cases, they do not know that they are being monitored, or don’t know how the information is being used.

3. Employee’s right of due process may be harmed by the improper use of collected data to make personneldecisions.

4. It increases the stress on employees who must work under constant electronic surveillance.

5. It has been blamed for causing health problems among monitored workers.

Challenges to Individuality

A frequent criticism of e-business systems concerns their negative effect on the

Individuality of people. Computer- based systems are criticized as:

Being impersonal systems they eliminate the human relationships present in non computer systems. Humans feel a loss of identity.

Humans feel a loss of individuality as some systems require strict adherence to detailed procedures.

Health issues

The use of IT in the workplace raises a variety of health issues

1. Job stress

2. Damaged arm and neck muscles

3. Eye strain

4. Radiation exposure

5. Death by computer-caused accidents

Security Issues

Computer crime is a growing threat to society by the criminal or irresponsible actions of computer individuals who are taking advantage of the widespread use and vulnerability of computers and the Internet and other networks.

Computer Crime

Association of Information Technology professionals (ATIP) defines computer crime as including:

1. The unauthorized use, access, modification, and destruction of hardware, software, data, or network resources.

2. The unauthorized release of information3. The unauthorized copying of software4. Denying an end user access to his or her own

hardware, software, data, or network resources5. Using or conspiring to use computer or network

resources to illegally obtain information

Hacking

Hacking is the obsessive use of computers, or the unauthorized access and use of networked computer systems.Illegal hackers (also calledcrackers) frequently assault the Internet and other networks to steal or damage data and programs. Hackers can:

1. Monitor e-mail, Web server access, or file transfers to extract passwords or steal network files, or to plant data that will cause a system to welcome intruders.

2. Use remote services that allow one computer on a network to execute programs on another computer to gain privileged access within a network.

Cyber Theft

Many computer crimes involve the theft of money.

In the majority of cases, they are “inside jobs” that involve unauthorized network entry and fraudulent alternation of computer databases to cover the tracks of the employees involved

Computer Viruses or worms

1. They typically enter a computer system through illegal or borrowed copies of software, or through network links to other computer systems.

2. A virus usually copies itself into the operating systems programs, and from there to the hard disk and any inserted floppy disks. Vaccine programs, and virus prevention and detection programs are available, but may not work for new types of viruses

Mona’s Factory

Mona is a manager of a gadget factory. Her factory has been quite successful the past three years. She is wondering whether or not it is a good idea to expand her factory this year. The cost to expand her factory is $1.5M. If she does nothing and the economy stays good and people continue to buy lots of gadgets she expects $3M in revenue; while only $1M if the economy is bad.

If she expands the factory, she expects to receive $6M if economy is good and $2M if economy is bad.

She also assumes that there is a 40% chance of a good economy and a 60% chance of a bad economy.

(a) Draw a Decision Tree showing these choices.

Decision Tree Example

Expand Factory

Cost = $1.5 M

Don’t Expand Factory

Cost = $0

40 % Chance of a Good Economy

Profit = $6M

60% Chance Bad Economy

Profit = $2M

Good Economy (40%)

Profit = $3M

Bad Economy (60%)

Profit = $1M

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DSS Techniques

Sensitivity analysis, what-if analysis, and goal seeking analysis are used to analyze complex relationships among data itemsto discover business patterns, trends. All of them are part of Decision support systems (DSS) analysis techniques.

What if Analysis

In what-if analysis, an end user makes changes to variables, or relationships among variables, and observes the resulting changes in the values of other variables.

Managers repeat this analysis with different variables until they understand all the effects of various situations.

Sensitivity Analysis

Under this analysis the value of only one variable is changed repeatedly at a time, and the resulting changes on other variables are observed.

Typically, sensitivity analysis is used when decision-makers are uncertain about the assumptions made in estimating the value of certain key variables.

Goal Seeking Analysis

 goal-seeking analysis sets a target value for a variable and then repeatedly changes other variables until the target value is achieved. 

Backwards approach, starts with goal Determines values of inputs needed to

achieve goal

Relationship is verb and entity is noun

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