Business Information Systems

1st Lecture
Introduction
What is BIS?

 Information
Data that has been put into a meaningful and useful context. Usually, to help
make-decision.
 Business Information System
A combination of computers and people that is used to provide information
to aid in making decisions and managing a business firm.

 Major application categories of information systems include:

–Operations Support Systems; and
–Management Support Systems
 Information Technology (IT)
Business Information System make extensive use of information technology,
such as personal computers.

Why is BIS Important?

BIS affects all areas of business.

 Manufacturing
 Accounting & Finance
 Human resources
 Marketing
 Top management
 Performance evaluations—expectations
Traditional Management

Decentralization

Business Trends

 Changing business environment

 Specialization
 Management by Methodology and Franchises
 Mergers
 Decentralization and Small Business
 Temporary Workers
 Internationalization
 Service-Oriented Business
 Re-engineering
 Need for faster responses and flexibility.
Business Trend Summary:

Business Trend Implications for Technology

1. Increased demand for technical skills
Specialization 2. Specialized MIS tools
3. Increased communication
1. Reduction of middle management
2. Increased data sharing
Methodology &
3. Increased analysis by top management
Franchises 4. Computer support for rules
5. Re-engineering
1. Four or five big firms dominate most industries.
Mergers 2. Need for communication.
3. Strategic ties to customers and suppliers
1. Communication needs
Decentralization &
2. Lower cost of management tasks
Small Business 3. Low maintenance technology
1. Managing through rules
2. Finding and evaluating workers
Temporary Workers 3. Coordination and control
4. Personal advancement through technology
5. Security
1. Communication
2. Product design
Internationalization
3. System development and programming
4. Sales and marketing
1. Management jobs are information jobs.
Service Orientation 2. Customer service requires better information.
3. Speed

What is a system?

 A set of components that interact to accomplish goals.

 Systems can be viewed as process models in terms of their inputs, outputs,
processing, and feedback/control mechanisms. Examples.
What is an Information System IS?

A set of interrelated components that

collect input, process, and output data
and information and provide a
feedback/control mechanism.

What is CBIS? (Computer-Based Information System)

 An IS that uses IT.

 Components: hardware,
software, databases, networks,
people, procedure

A Manufacturing System: Generic

Components
What You Need to Know

 Foundation Concepts: Fundamental concepts about the components and

roles of IS.
 IT: Major concepts, developments, and management issues in information
technologies
 Business Applications: The major uses of IS for operations, management,
and competitive advantage.
 Development Processes: How end users or information specialists develop,
and implement IS
 The challenges of effectively and ethically managing information
technologies, strategies, and security at the end user, enterprise, and global
levels of a business

Major Roles of Information Systems

Information systems perform three vital
roles in business firms. They support:
 Business processes and operations,
 Business decision making; and
 Strategic competitive advantage

The Electronic Business / The e-Business Enterprise

IS Resources: •Products:
–Hardware Resources –Paper Reports
–Software Resources –Visual Displays
–People Resources –Multimedia Documents
–Data Resources –Electronic Messages
–Network Resources –Graphics images
–Audio Responses
2nd Lecture
Global e-Business

 Problem: Using IT to win the America’s Cup race

 Solutions:
 New technology for physical engineering of boat;
 sensor network to monitor conditions, and
 data analysis to improve the performance of sails and more
 IBM Oracle Database 11g data management software: provided real time
analysis of boat’s sensor data.
 Demonstrates Its role in fostering innovation and improving performance.
 Illustrates the benefits of using data analysis and IT to improve products.
The fundamental MIS concepts using an integrated framework for describing and
analyzing information systems. This framework shows information systems
composed of management, organization, and technology elements and is reinforced
in projects and case studies.

A diagram illustrates how management, organization, and technology elements

work together to create an information system solution to the business challenges
discussed in the case.

Components of a Business
Business:
Formal organization that makes products or provides a service to make a profit.
1. Basic Business Functions
2. Business Entities
3. Business Processes
4. Business Environment

1-Basic Business Functions

Every business regardless of its size must
perform four functions to succeed.
 produce the product or service.
 market and sell the product.
 keep track of accounting and
financial transactions.
 perform basic human resources tasks,
such as hiring and retaining employees.
2-Business Entities
Five Basic Entities
 Suppliers
 Customers
 Employees
 Invoices/payments
 Products and services

Managing a Business and Firm Hierarchies

Firms coordinate the work of employees by
developing a hierarchy in which authority is
concentrated at the top.
Each group has different needs for
information.

3-Business Processes
-Logically related set of procedures that define how specific business tasks are
performed.
-The procedures each employee performs, in what order, and on what schedule,
e.g., steps in hiring an employee.
 Some processes are tied to functional area.
 Sales and marketing: identifying customers.
 Some processes are cross-functional.
 Fulfilling customer order

The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the close
coordination of the sales, accounting, and manufacturing functions.

The Business Environment

A firm’s environment includes specific groups with which the business must deal
directly as well as the broader general environment, including socioeconomic
trends, political conditions, technological innovations, and global events.

The Role of Information Systems in a Business

Firms invest in information systems to:
 Achieve operational excellence.
 Develop new products and services.
 Attain customer familiarity and service.
 Improve decision making.
 Promote competitive advantage.
 Ensure survival.
Types of Business Information Systems
1. Transaction processing systems (TPS)
Keep track of basic activities and transactions of organization
2. Systems for business intelligence
Address decision-making needs of all levels of management.
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Executive Support Systems (ESS)

1-Transaction Processing Systems

 Serve operational managers.
  The principal purpose is to answer routine questions and to track the flow of
transactions through the organization.
 E.g., inventory questions, granting credit to customers.
 Monitor status of internal operations and firm’s relationship with external
environment
 Major producers of data and information for other systems
 Highly central to business operations and functioning

A Payroll TPS

A TPS for payroll processing captures employee payment transaction data (such as
a timecard). System outputs include online, and hard copy reports for management
and employee paychecks.

Management Information Systems

 Provide middle managers with reports on the firm’s performance.
 To monitor firm and help predict future performance.
 Summarize and report on basic operations using data from TPS.
 Provide weekly, monthly, annual results, but may enable drilling down into
daily or hourly data.
 Typically, not very flexible systems with little analytic capability

How MIS Obtain Their Data from TPS

Decision Support Systems (DSS)

 Serve middle managers.

 Support non-routine decision making.
 Often use external information as well from TPS and MIS
 Model driven DSS.
 Voyage-estimating systems.
 Data driven DSS.
 Intrawest’s
marketing analysis
systems

Voyage-Estimating Decision
Support System

This DSS operates on a

powerful PC. It is used daily by
managers who must develop bids
on shipping contracts.
Executive Support Systems (ESS)
 Serve senior managers.
 Address strategic issues and long-term trends.
 E.g., What products should we make in five years?
 Address non-routine decision making.
  Provide generalized computing capacity that can be applied to changing
array of problems.
 Draw summarized information from MIS, DSS, and data from external
events.
 Typically use portal with Web interface, or digital dashboard, to present
content

Digital Dashboard

A digital dashboard delivers

comprehensive and accurate
information for decision
making often using a single
screen. The graphical
overview of key performance
indicators helps managers
quickly spot areas that need
attention.

3rd Lecture
Collaboration and Teamwork

Importance of Collaboration

 Changing nature of work

 Growth of professional work
 Changing organization of the firm
 Changing scope of the firm
 Emphasis on innovation
 Changing culture of work and business

Requirements for Collaboration

Successful collaboration requires an appropriate organizational structure and
culture, along with appropriate collaboration technology.

The Time/Space Collaboration Tool Matrix

Collaboration technologies can be classified in terms of whether they support

interactions at the same or different time or place, and whether these interactions
are remote or co-located.

Tools and Technologies for Collaboration and Teamwork

1. E-mail and instant messaging (IM)
2. Social networking
3. Wikis
4. Virtual worlds
5. Internet-based collaboration environments
 Virtual meeting systems (telepresence)
  Google Apps/Google Sites
 Microsoft SharePoint
 Lotus Notes

Enterprise Applications
-Systems that span functional areas, focus on executing business processes across
the firm, and include all levels of
management.
-Four major types
1. Enterprise systems
2. Supply chain management
systems.
3. Customer relationship
management systems
4. Knowledge management systems

Enterprise Application Architecture

Enterprise applications automate

processes that span multiple business
functions and organizational levels and
may extend outside the organization.

1-Enterprise Systems
 Also called enterprise resource planning (ERP) systems
 Integrate data from key business processes into a single system.
 Speed communication of information throughout firm
 Enable greater flexibility in responding to customer requests, greater
accuracy in order fulfillment.
 Enable managers to assemble an overall view of operations.

2-Supply Chain Management Systems

 Manage relationships with suppliers, purchasing firms, distributors, and
logistics companies.
 Manage shared information about orders, production, inventory levels, and
so on
 The goal is to move the correct amount of product from source to point of
consumption as quickly as possible and at lowest cost.
 Type of interorganizational system:
 Automating flow of information across organizational boundaries
3-Customer Relationship Management CRM Systems
 Help manage relationships with customers.
 Coordinate business processes that deal with customers in sales, marketing,
and customer service
 Goals:
 Optimize revenue.
 Improve customer satisfaction.
 Increase customer retention.
 Identify and retain the most profitable customers.

4-Knowledge Management Systems

 Manage processes for capturing and applying knowledge and expertise.
 Collect relevant knowledge and make it available wherever needed in the
enterprise to improve business processes and management decisions.
 Link firm to external sources of knowledge.

Intranets and Extranets

Technology platforms that increase integration and expedite the flow of
information.
 Intranets
 Internal networks based on Internet standards.
 Often are private access areas in company’s Web site.
 Extranets
 Company Web sites are accessible only to authorized vendors and
suppliers.
 Facilitate collaboration.

E-Business, E-Commerce, and E-Government

 E-business:
 Use of digital technology and Internet to drive major business processes.
 E-commerce:
 Subset of e-business
 Buying and selling goods and services through Internet
 E-government:
 Using Internet technology to deliver information and services to
citizens, employees, and businesses.
Evaluating and Selecting Collaboration Software Tools
1. What are your firm’s collaboration challenges?
2. What kinds of solutions are available?
3. Analyze available products ‘cost and benefits.
 4. Evaluate security risks.
5. Consult users for implementation and training issues.
6. Select candidate tools and evaluate vendors.

The Information Systems Department

 Programmers
 Systems analysts
 Principle liaisons to rest of firm.
 Information systems managers
 teams Leaders of programmers and analysts,
 project managers,
 physical facility managers,
 telecommunications managers,
 database specialists,
 managers of computer operations, and
 data entry staff
 Senior managers: CIO, CPO, CSO, CKO
 End users.

Information Systems Services

 Computing services
 Telecommunications services
 Data management services
 Application software services
 Physical facilities management services
 IT management services
 IT standards services
 IT educational services
 IT research and development services

4th Lecture
Requirement Engineering

Requirements Engineering

 The process of establishing the services that the customer requires from a
system.
 The constraints under which the system operates and is developed.
 “… to cover all of the activities involved in discovering, documenting, and
maintaining a set of requirements for a computer-based system.”
  Importance of requirements illustrated by need for rigor, structure,
repeatable techniques, etc.
 Key concepts:
 Requirements analysis
o Discovery (capture, elicitation, identification)
o Documenting (specifying, modeling)
 Maintenance (changes in environment of system)

What Are Requirements?

 They are descriptions of how the system should.

 behave,
 application domain information,
 constraints on the system’s operation, or
 specifications of a system property or attribute.
 A requirement is a statement of need, something that some class of user or
other stakeholder wants”.
 Requirements definition is a careful assessment of the needs that a system is
to fulfill.
 It Says:
 Why is a system needed?
 What system features will serve and satisfy?
 How the system is to be constructed?
 Requirements represent a specification for the new system.

Why is Requirements Engineering Important?

 Identifies stakeholder needs to ensure that you are building the right system.
 Help you manage the development process to ensure a quality system.
 Identify defects early, reducing costs.

Why are Requirements Important?

Consequences of poor or incorrect requirements are:

 System delivered later than planned (Important).
 System cost more than planned (Important).
 Customers and end-users unsatisfied (not used or even scrapped)
(Important).
 Maintenance related costs higher.
 System is unreliable or does not work.
Reasons for Poor Requirements

 Not well understood (domain complexity).

 Requirements do not reflect the real needs of the customer.
 Misunderstanding between various stakeholders: customers, requirements
engineers and developers.
 Expensive to make changes to requirements after they have been agreed
upon (contract).
 Requirements evolution: existing system enhancement not clear.
 Requirements could be incomplete, ambiguous, inconsistent, overlapping,
not implementable, ...

Defects Propagate and Grow

Effects of Poor Requirements Analysis

 "Once your software hits the field, removing requirements defect costs at
least a hundred times as much, assuming you can fix it at all. “
 Poor or incorrect requirements affects later stages of SDLC through
exponentially increasing costs:
 investment far greater during design and coding.
 Investing time in effective requirements analysis early saves time, effort, and
money.

Types of Requirements
Usually classified into two categories:
 Functional (Behavioural) requirements Specify.
 The function that the system should provide.
 How the system should react to inputs.
 How the system should behave in a situation. (affordance, capability) of the
system
 Non-Functional (non-behavioural) requirements Describe.
 Constraints on the services or functions offered by the system such as
timing constraints.
 Constraints on the development process, standards, etc. (performance,
reliability, usability, portability, ...)
 General requirements
sets out in broad terms what the system should do For Example:
The system shall maintain records of all library materials including books,
serials, newspapers, and magazines, ...).
 Functional requirements
define system’s functionality. For Example:
The system shall allow users to search for an item by title, author, or ISBN
 Data requirements
define the type of data the system shall operate upon or produce
For Example: The ISBN is a 5-part item: the “ISBN tag” and a 4-part identifier.
 Implementation requirements
states how the system must be implemented.
For Example: The system’s user interface shall be implemented using a WWW
browser.
 Performance requirements
specify the minimum acceptable performance of the system.
For Example: The system shall support at least 20 transactions per second.
 Usability requirements
state user interface and system availability constraints.
For Example: Should use a hierarchical menu structure for navigation.
 Operational requirements
specify constraints that should be satisfied during system usage.
For Example: Reliability in terms of “mean-time to failure”.

Properties of Good Requirements

 Understandable by users
effectively contract and should be comprehendible.
 Non-prescriptive
describes what the system should do not how.
  Correct
user judge of correctness
 Complete
nothing missing from set or individual requirement.
 Consistent
does not contradict other requirements.
 Unambiguous
only one interpretation
 Precise, concise, feasible, testable, traceable, ...

Contents of Requirements Document

 The services and functions which the system should provide.

 The constraints under which the system must operate.
 Overall (emergent) properties of the system (reliability, maintainability,
performance, usability, security, etc.).
 System’s environment including related systems.
 Application domain information.
 Constraints on the development processes.

Requirements Specifications

 Definition of the function or entity.

 Description of inputs and where they come from.
 Description of outputs and where they go to.
 Indication of other entities required.
 Pre and post conditions (if appropriate).
 The side effects (if any) of the function.

Guidelines for Writing Requirements

 Invent a standard format and use it for all requirements.

 Use language in a consistent way. Use shall for mandatory requirements,
should for desirable requirements.
 Use text highlighting to identify key parts of the requirement.
 Avoid the use of computer jargon.

5th Lecture
 Conceptual Database Design
Entity Relationship Diagrams (ERDs)

 ERDs were introduced by Chen in 1976 for modeling the semantics of data
to be stored in an information system.
 The essential Components of ERDs
 Entities
 Attributes (properties)
 Relationships
 Many different notations but fundamentals same:
 Barker notation (Oracle Designer)
 IE
 Chen
 IDEF1X

Objectives of ERDs

 Provide an accurate model of the information needs of the organization.

 Act as a framework for development of new enhanced systems.
 Modeling the data that satisfies the organization's information needs.
 Modeling the data that helps in the constructing of the proposed new system
database independently of any storage or access method (objective view).
 Communication tool to help clarify data requirements with users.
 Verify functional requirements.

Main Components of ERDs

Entity
Relationship

Entities
 Entity type (class):
 Definition of attributes and range of values (domain) for each attribute.
 Template.
 Entity instance:
 A particular example (occurrence) of an entity type.
 Values assigned to each attribute from domain.
A thing which can be distinctly identified [Chen (1976)]

Entity Categories

 Tangible: planes, book, vehicle, document, ...

 Roles: employee, customer, doctor, patient, ...
 Organisation units: division, department, section, ...
 Devices: sensor, timer, disk drive, mouse, button, ...
 Incidents/events/interactions/transactions: flight, contract, purchase,
order, ...
 Sites/locations: warehouse, branch office, factory, ...

Type classification:

 Lists of valid items.

 Example: gender, recording type, ...
 Represented logically as lookup tables.

Attributes

A piece of information that describes an entity.

 Types include:
 Descriptive
individual atomic properties that describe the object of interest.
 Identifying
used to uniquely identify occurrences of entity types.
 Assigned a member of a particular value set called a domain.
  Example attributes of an entity type: color, weight, age.
 The color attribute can take values from the domain: {red, blue, white,
yellow}.
 Other attributes may be introduced for logical design:
 surrogate keys (no candidates from descriptive attributes)
 foreign keys (implement relationships)

Attribute optionality shows what information is required for an entity type.

 Optional:
 A value is not required when instance created.
 Logically represented using ‘nulls’.
 Examples: email, car registration, ...
 Mandatory:
 A value is always required when instance created.
 Examples: customer name, contact details, ...

Both determined by organization's business rules.

Relationships

An association among entities

 Reflects real world relationship between domain items.

 Entity types are called participants.
 The number of participants is called the degree of the relationship.
 Usually binary
 Can be unary, ternary, ...

Relationship types

 Many – Many (M-M)

  One – Many (1-M)

 One – One (1-1)

Relationships Properties

 Cardinality:
 Represents how many instances of one entity type can be associated with an
instance of the other entity type.
 Options: 1:1, 1:M, M:M
 Optionality (participation):
 Represents whether or not instances of one entity type must participate with
instances of a related entity type.
 Options: O:O, O:M, M:O, M:M.
 Labels:
 Describes in sentence form the nature of the association.
 Clarifies meaning in both directions.
 Translates to business rules in conjunction with other elements.

Example on Relationship
How do you recognize type of relationship?
Types of ERDs

 Conceptual ERDs
 More closely associated with documenting the real world
o Use of M:M relationships.
o Do not show foreign keys as being attributes of entities.
 No concern for the type of database to store resulting data.
 Logical ERDs
 More closely associated with documenting the real world in terms of the
corresponding, typically relational database structure
o Replacing M:M relationships with two 1:M relationships and an all-
key intermediary entity.
o Shows foreign keys.

Suggested Steps for ERD Creation

1. Identify entities:
 at least one descriptive attribute.
 multiple occurrences (define identifier).
 strong, weak, associative, ...
 synonyms (e.g. customer  client)
2. Identify relationships between entities:
 optionality, cardinality, degree (business rules).
 label in both directions.
3. Document the attributes for each entity:
 attach attribute once to entity.
 define suitable domain.
 investigate possibilities for further decomposition.

General Guidelines

 Break domain problem into smaller, manageable chunks and integrate later:
 model distinct areas based on entity categories.
 All labels (entities, attributes, labels, ...) should be meaningful and map to
existing domain terms.
 All elements of a relationship definition should translate to a coherent
business rule.
 One rule in each direction.
 Layout of ERD important for readability.
Analysis of Itinerary Contents

Review Itinerary Contents

 Basic Entities
 Itinerary:
o date prepared.
 Staff:
o name
 Sector:
o time and date of departure.
o time and date of arrival.
o name of airline, flight number, and type of aircraft
 Customer:
o name, address.
 Payment:
o date, number, and amount.
 Relationships
 An itinerary is related to a staff member.
 An itinerary is related to a customer.
 An itinerary has one or more sectors.
 A sector may be used in more than one itinerary.

Tasty Travel Agency ERD

ERD Example
A firm has a number of sales offices in several states. Attributes of sales office
include Office_Number (identifier/key) and Location. Each sales office is
assigned one or more employees. Attributes of employee include Employee_ID
(identifier/key) and Employee_Name. An employee must be assigned to only one
sales office. For each sales office, there is always one employee assigned to
manage that office. An employee may manage only the sales office to which he/she
is assigned. The firm lists property for sale. Attributes of property include
Property_ID (identifier) and Location. Components of Location include Address,
City, State, and Zip_Code. Each unit of property must be listed with one (and only
one) of the sales offices. A sales office may have any number of properties listed,
or may have no properties listed. Each unit of property must be listed with one
(and only one) of the sales offices. A sales office may have any number of
properties listed, or may have no properties listed. Each unit of property has one or
more owners. Attributes of owners are Owner_ID (identifier) and Owner_Name.
An owner may own one or more units of property. An attribute of the association
between property and owner is Percent_Owned.

Rough ERD
ERD with Cardinality

Eliminating this many relationships with an associative/link entity.

Eliminating Many Relationship

Fully Attributed ERD with Keys

 6th Lecture
Logical Database Design
Example COMPANY Database

We need to create a database schema design based on the following (simplified)

requirements of the COMPANY Database:
 The company is organized into DEPARTMENTs. Each department has a
name, number and an employee who manages the department. We keep
track of the start date of the department manager. A department may have
several locations.
 Each department controls a number of PROJECTs. Each project has a
unique name, unique number and is located at a single location.
 We store each EMPLOYEE’s social security number, address, salary, sex,
and birthdate.
 Each employee works for one department but may work on several projects.
 We keep track of the number of hours per week that an employee currently
works on each project.
 We also keep track of the direct supervisor of each employee.
 Each employee may have a number of DEPENDENTs.
 For each dependent, we keep track of their name, sex, birthdate, and
relationship to the employee.
Level (1)

Based on the requirements, we can identify four initial entity types in the
COMPANY database:
 DEPARTMENT
 PROJECT
 EMPLOYEE
 DEPENDENT
Their initial design is shown on the following slide
The initial attributes shown are derived from the requirements description

Level (2)

 An employee who manages the

department
 Each department controls a number of
projects
 Each employee works for one
department
 But may work on several projects
 Each employee may have a number of
dependents

Level (3)
  an employee who manages the department
 Each department controls a number of PROJECTs
 Each employee works for one department
 but may work on several projects
 Each employee may have a number of DEPENDENTs

Relational Keys

 Primary keys
 Concrete value (one that is always going to be there)
 Need to identify one and only one record in the entity.
 Needs to be stable over time (nothing that may change (or control from
outside the organisation)) Example: engine number (e.g. a car can change
its engine)
 Alternate key
 Searchable keys that do not become the primary key
 Foreign key
 A primary key of another entity exist within the attributes of the current
entity
 Represent the relationship between entities

Primary Key Types

 Surrogate key
 Constructed from only one attribute
 Can be invented by the database designer
 Composite key (compound)
 Constructed from more than one attributes

Example COMPANY Database

Relationship Transformation Rules
 1:1
 Place PK of first relation into the second relation as a foreign key (or vice-
versa)
 1:M
 Place PK of the ‘1’ end relation into the ‘M’ end relation as a FK
 M:M
 Create a new ‘all key relation’ to represent M:M relationship
 Follow 1:M transformation rules
Categories of Entity

 Strong
 Exist independently of other entities
 Weak
 Existence dependent on another entity
 Associative
 Describes a particular association
 Requires at least one descriptive attribute

Associative Entities

Example COMPANY Database

Logical database Model
Operation on Database

These are the database

management operations

Poor Database Design

 Inconsistent data
 Incorrect data
 Missing data
 Lost data
 Data redundancy

Business Information Systems

9th Lecture
User Interface Design
Human Computer Interaction

HCI: Multi-Disciplinary Subject

Human: Capacities and Limitations

Computer: Capacities and Limitations
 Input devices
 e.g. keyboard, positioning and pointing devices, handwriting
recognition, speech recognition, others …
 Output devices
 e.g. Computer screens, 3D displays, Printing, Virtual Reality, etc.
 Memory and Processing
Interaction: Different Styles

User Profiles: Human Diversity

  Physical abilities and physical workplaces
 Cognitive and perceptual abilities
 Personality differences
 Cultural and international diversity
 Users with disabilities
 Elderly users

User Profiles: Diversity of Users

Business Information Systems

10th Lecture
Systems Implementation

Activities of the Implementation Phase

 Hardware Acquisition
 Software Acquisition
 Make or Buy?
 User preparation
 Effect of untrained users
 Good documentation
 Categories of users
 Ongoing training and user support
 Deployment
  Site preparation
 Data preparation
 Installation and start-up
 User Acceptance
End user activities System operator activities
Creating records or transactions Starting or stopping the system
Modifying database contents Querying system status
Generating reports Backing up data to archive
Querying database Recovering data from archive
Importing or exporting data Installing or upgrading software

Implementation Methodologies

 Direct : New system is turned on and old system turned off

 Riskiest but least expensive – no need to support 2
systems
 Parallel operation : All transactions are entered in new and
old system
 Very expensive to maintain 2 systems
 Least risky that you can identify bugs and go back to
old system if needed
 Phased implementation : New functions are implemented as
parts of old system are turned off
 Slowly move from old system to new one
Direct Installation
Parallel Installation
System Implementation lifecycle