System Analysis and Design

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Module I: Understanding System Concepts and Use

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within Industry
Unit 1. 1: Int rod uct ion t o t he Sy st em a nd It s Imp ort an c e

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Le ar nin g O b j ect i ve s:

Afte r st ud yin g t h i s c hapt e r, y ou w il l be a ble to:

• De f in e t he I ntr o d uc t i o n a nd M e a ni n g of Sy s t em .
• Dis c us s t he Sy s t e m Im por t anc e .
• Ex pl a i n th e C har ac ter i s tic s of a Sy s t e m .
• Dis c us s t he E le m en ts of a Sy s t e m .

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• Dis c us s R ol e o f s y s te m / In fo rm at i o n s y s t em in c re at i n g ef fec t iv e
org a n iz a t io n .
• Ex pl a i n th e Ty p es o f S y s te ms
• Ex pl a i n th e C at e gor i es o f i nf or ma t io n

1. 1. 1 Int ro du ct io n an d M e an ing of S y ste m si

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Pr ob l e ms ar e s o lv e d thr o ug h th e us e of s y s te ms . T he s y s t e ms ap pr o ac h c a n b e
th o ug ht o f as a s y s t em a tic ap pr oac h t o s o lv i n g a n is s u e . I n t od ay 's f as t - p ac e d
env ir o nm e nt , th e s u bj ec t Sy s t em A n a ly s is an d D es i g n ( S AD ) f oc us es o n s of tw ar e
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dev e l op m en t.

A s y s t em is a c o l lec t io n of c om p on e nts t h at op er at e t og e th er t o ac h iev e s o m e

go a ls . I n g e ner a l, ev er y s y s t em has t hr ee k e y c o m po n en ts : in p ut , p roc es s i n g, a n d
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ou t pu t.
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Th e v ar io us c o m po n en ts of a s y s t e m ar e i nt e rd e p e nd e nt a n d c on n e c te d t o on e
an o th er. T h e hu m a n b ody , f or ex a m p le , is a c om p l et e n at ur al s y s t e m. We are als o
ti e d by a n u mb er o f n a ti o na l s y s t e ms , s uc h a s t he po l it ic a l, ec o no m ic , an d
ed uc at i on a l s y s t ems . Th e s y s te m's g o a l n ec es s it at es t ha t s o me ou tp ut be pr o d uc e d
as a r es u lt o f pr oc es s i ng t h e a ppr o pr ia te i np uts . A w e ll - d es ig n e d s y s te m a ls o
m

i nc l u des a fe e db ac k e l em e nt k n o wn as 'c o ntr o l,' w h ic h of fers in p ut to h e l p th e

s y s te m ac h iev e i ts g o a ls .

1. 1. 2 S y st em Im po rt a nc e
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Tec hn o l ogy i m pr ov e m en ts o n a r eg u l ar bas i s g iv e org a n is a t io ns w it h o pp or tu n ity t o

i nc or p ora t e th e mos t up - t o- d a te k no w le d ge i nt o t he ir da i ly o p era t i ons . Th e us e of
s y s te m an a ly s is a n d d es ig n t o ad dr es s in t er na l pr ob l e ms , i nc re as e e ff ic i enc y , an d
ex t e nd pros p ec ts has a d ir ec t im p ac t on a c o m pa ny 's bo tt o m l i ne . As a res u lt ,
we i gh i n g th e b e ne f its i s a w or t hy e n de av our for b us i nes s ow ners a nd ma n ag ers .
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Cus tom iz e d App ro ac h

Th e da t a- pr oc es s in g r eq u ir e me nts o f a c om p any di ff er b as ed o n th e ty pe o f
c om p any a nd t he s iz e o f its op er at i o ns . W he t her a pp l i ed fo r s pec i f ic pr oj ec ts or
 ac ros s t he e nt ir e br e ad t h o f a c o mp a ny 's ac t iv it i es , s y s te m a na ly s is a n d d es ig n
as s is t e nt er pr is es . B y d is c ov er i ng a n d ev a lu at i n g t h e c om p any 's s tr en g ths a nd

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l im i ta t io ns , s y s t e m an a ly s is an d d es i g n as s is ts a f ir m in i de n ti fy in g b ot h
op p ort u n it i es a nd c h a l l en g es . F oc us i n g on t he c om p any 's s tr en gt hs wh i l e s tr iv in g
for c o nt i n uo us d ev e l o pm e nt i n ar eas w h er e it f a lls s h or t al l ows th e c o mp a ny to

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i mpr ov e q ua l ity f r o m a c r os s b oar d .

Comp et ing
Mo re an d mor e o r g a n is a t io ns , ac c ord i n g to T h e O h i o S t at e Un iv ers ity F is her
Co l l eg e o f B us i nes s , mus t d is c ov e r s tra t eg i es to c o mp et e g l o ba l l y . In ma ny c as es ,

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th is e nt a ils t h e lar g e - s c a le d ev e l o pm e nt a n d de p loy m e nt of e - c o m merc e. I n c as es
wh e n t h e in te gr at i o n of a g lo b a l in fo rm at i o n s y s t e m is nec es s ary , s y s t e m a n a ly s is
an d des i g n a r e c r i t ic a l. Im pr ov e d m ark e t c ov er a g e ar e a, wh ic h of te n r es ul ts i n
i nc re as ed ear n i ngs , is o n e of t h e be n ef i ts of c o m pe t in g g l ob a l ly .

1. 1. 3 Ch a ra ct e ri st i c s of a S yst em
Ch ar ac t er is t ic s a n d ty pes of s y s t em :

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O rg an iz at ion
• ord er a n d s tr uc t ur e
• A n ex a m p le is a c o m p any 's h ier arc h ic a l s tr u c tur e.
• Co m pu te r s y s t em : t he a r r a n ge m e nt of n u m e rous c o mp o ne n ts s uc h as i n pu t,
ou t pu t, C P U, a n d s tor ag e d ev ic es .

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• Str uc tur e a n d or d er a r e i m p li e d by or g an is at i on . It c an a ls o be de f in e d as
th e c o nf i gu r a t io n o f c o mp o ne n ts th at a ids in th e ac h iev e me n t of g o a ls .
• For ex a mp l e, i n t he d es ig n of a c om p any s y s te m, t h e or ga n is a t io n s truc t ure
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is re pr es e n te d by th e h i er arc h ic a l l i nk s t ha t s tar t w it h t h e pr es id en t a t t he
to p a n d l ea d d o wn to t h e work ers . As a r es u l t, t h e a ut h or ity s t ruc t ur e is
es t a bl is h ed , as w e ll a s t he off ic i a l c o mm u n i c at i on f l ow .
• A n i np ut d ev ic e, a c en tr al proc es s i ng u n it , an o ut p ut d ev ic e, a nd o n e or
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mo re s t o r ag e u n its ar e a l l b u il t i nt o a c o m p ut er s y s te m .

Int er a ctio n
•
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Interactions between subsystems or components

• For instance, the main memory stores the data that the ALU must process.
• The way each component interacts with the other components of the system is referred to as
interaction.
• i.e., each component of a system should interact with one another.
• For example, in a company, there should be interaction between the purchasing and
production departments, as well as advertising and sales, and payroll and employees.
• To address a problem in a computer system, the central processing unit must interface with
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the input device. The main memory, in turn, stores programmes and data that the arithmetic
unit utilises to do calculations.

Int er dep en de nc e
m

• L ink a ge b e tw e en c o m po n en ts
• De p en d enc e o n c o mp o ne n ts
• Th is is o n e of a s y s t e m's m os t s ig n if ic a nt pr op er ti es .
• In ter d ep e n de nc e r ef er s t o th e i n ter d ep e nd e n c e of t h e p arts or c om po n en ts
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of a n or g an is at i o n or c om p ut er s y s t em . E ac h c o m po n en t or s ec t io n s o f a n
org a n is a t io n s h o ul d b e d e pe n de nt on t h e ot h er c o mp o ne n ts . F or op ti m a l
fu nc t i o ni n g, o n e c o mp on e nt or s ubs y s t em r e qu ir es t he in p ut o f a no th er
s ubs y s t em , i .e . o ne s u bs y s t e m's o ut p ut is r e qu ir e d i np u t for a n ot h er
s ubs y s t em . For ex a m p l e, t he us er in i t ia tes t h e d ec is i o n to c o m p ut er is e an
ap p l ic a t io n , th e a n aly s t an a ly s es an d d es i gn s i t, a n d t he c o m p ut er op er at or
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pro gr a mm es a n d tes ts i t. I n t he d i a gra m b e l ow , n on e o f th es e pe o p le c a n

fu nc t i o n pr op er ly w it h ou t t he as s is ta nc e of ot h ers i n th e c o m pu te r c e ntr e
s ubs y s t em .
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Int eg rat ion

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• Ho w s u bs y s t e ms ar e c on n ec t e d to m e et t h e s y s te m's g o a l
• Th e t er m " i nt e gr at i on " a l l ud es t o t he ho l is ti c n a tur e o f s y s t ems . To f u lf i l
th e or g an iz at i o n's f un da m en t a l g oa l , s y nt h e s is c o m es a ft er a n aly s is . It is
c onc er n ed w it h th e way a s y s t em is c o nn ec te d. I t's m ore t h an j us t
s har i n g a p hy s ic a l s p a c e or por t io n . I t me a n s th a t ev e n if e ac h p o rti o n of
th e s y s te m p er f or ms a dis t inc t fu nc t i o n, t h e pi ec es of th e s y s t e m w ork
to g et her w i t hi n t he s y s te m.

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Cen tr al O b j ect iv e

• I t s h o ul d b e k n ow n t hr o u g ho ut t h e e arl y s t ag es o f th e a n aly s is .
• A s y s t em 's fu n da m en ta l g o al is i ts fi n a l c ha rac t er is t ic . Re a l or d e c l are d g o als

si
are bo th ac c e p ta b le . T he c r uc i a l e l em e nt is t ha t f or a s uc c es s f u l d es ig n a nd
c onv ers i on , us er s m us t un d er s t a nd t h e c or e go a l o f a c o mp u ter a p p lic a ti o n
ear ly in t h e a na ly s is .
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1. 1. 4 E l em ent s o f a S yst e m

A s y s t em is a n i nt er c o nn ec te d s e t of b us i nes s o p era t io ns (or c om p on e nts ) t h at

fu nc t i o n to g et he r for a s p ec if ic g o al w i th i n a s i ng l e b us i n es s u n it . I n th e p ay r o ll
de p art m en t, f or ex a mp l e, a s y s t e m k ee ps tr a c k o f c h ec k s , w her e as a n i nv en to ry
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s y s te m k e eps t r ac k o f go o ds . T he t w o s y s t e ms ar e i nd e pe n d en t of o n e an o th er .
Th ere are n i n e c h ar ac t er is t ic s t ha t d ef i ne a s y s te m. E ac h a ttr i b ut e i s ex p la i n ed in
de p th b e l ow ; th e s y s t e m oc c ur s i n s id e a br o a der w or l d, o r env ir o nm en t. T he
 s y s te m is s e p ar at ed f r om its s u r r o u nd i n gs by a b or de r. Th e s y s t e m rec e iv es i n pu t
fro m t he ou ts id e w or ld , pr oc es s es i t, a n d th e n r et ur ns t he o u tc o m e to its

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s urr ou n di n gs .

El e men ts of a Sy st e m:

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On
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1. Comp on ent s: A s u bs y s te m is a n i rre d uc ib l e par t or a g gr eg at e o f p i ec es t h at
mak es u p a s y s t e m.
2. Int er r el at ed co mpon e nt s: D ep e n de nc e of o ne s y s t e m c o mp o ne n t on on e or
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mo re o t her s y s t e m c o mp o ne n ts .
3. Bound a r y: T h e b ou n d ar y b et we e n th e i n ne r an d ex ter i or o f a s y s t e m,
s ep ar at i n g it fr o m i ts s ur r ou n di n gs .
4. Pu rpo s e: A s y s t e m ’s ov er a l l o bj ec t iv e o r f u nc t i ons .
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5. En vi ro nm ent : Ev er y th i ng t h at i n ter ac ts wi t h a s y s te m fr o m th e o ut s i de .
6. Int erf a ce s: T he p o i nt at w h ic h a s y s te m i n te rac ts w i th its s urr o u nd i ngs or
wh er e s u bs y s t ems in t e r ac t w i th o n e a no t her .
7. Con st ra int s: Th er e is a l i mi t t o wh at a s y s te m c a n ac h i ev e.
8. Input : T he i nf or ma t io n t ha t e nt ers t he s y s t e m fo r proc es s i ng is r ef err ed t o
as i np u ts .
9. O utput : A s y s te m's m a in g o a l is t o pr od uc e an ou tp u t th at is us ef u l t o its
ity

us er . Th e f i na l r es u lt of pr oc es s in g is c al l e d o ut p ut .

1. 1. 5 Ro le of s y st em / I nf o rm at i on s y ste m in c re at ing eff e cti v e org an iz at ion

As a s y s t e ms a n aly s t, y ou w i ll b e ab l e t o ha v e a b i g i m p ac t on h o w y o ur c om p any
m

fu nc t i o ns . Th is l uc r at i v e an d r a p id ly r is i n g ro le c a n b e fo u nd in bo t h la rg e a nd
s ma l l b us in es s es . Ac c or d i n g t o ID C, a re n o wn e d c ons u lt i ng f ir m, e mp l oy me n t in
i nf or ma t io n t ec hn o l og y ( IT) w i l l ex p a nd at a r at e of mo re th a n 3 % eac h y ear u nt i l
at le as t 20 1 3. Fr o m 2 00 4 t hr ou g h 2 01 4, t h e B ur e au of L a bor St a t is t ic s f or ec as ts
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fur th er ris es i n th e n um b er of IT p os it i ons . Du ri n g t h is t im e , t h e pr of es s io n a l I T

work fo rc e in th e U n it ed St a tes is ex pec t ed t o gr ow by m or e th a n 1 m i l l io n n e w
pos i t io ns . W or k er s in t he f i e ld of i n for m at i on tec h no l ogy are s t i l l i n h ig h d e ma n d.
Rol e O f S ys t e m An a l yst : A s y s t ems a na ly s t's maj or r es p o ns i b i l it y is t o r es earc h
a c o m pa ny 's c h a ll e ng es a n d n e eds i n ord e r to d is c ov er h ow pe o p le , t ec hn i qu es ,
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an d i nf or ma t io n t ec hn o lo gy c an b e b es t u ti l is e d to i mp rov e t h e org a n is a t io n . A
s y s te ms a n a ly s t as s is t s s y s te m us ers a n d o t her c o m pa ny ma n ag e me n t i n d ef i ni n g
th e ir n ee ds f or n ew or i mpr ov ed in f orm a ti o n s erv ic es .
 Th e r o le of s y s t e ms a n aly s ts is c r uc ia l i n th e c re at i o n of s y s te ms . T o b e
s uc c es s f ul as a s y s te ms a na ly s t, y o u' l l n ee d to mas te r fo ur d if f er en t s k i l ls :

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• an a ly t ic a l,
• tec h nic a l,

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• ma n ag er i a l, a n d
• i nt erp er s o na l

Un d ers t a nd i ng t he c o mp a ny an d its f unc t io ns , i de n ti fy i ng o pp or tu n it i es a n d is s u es ,

an d an a ly s in g a n d s o l v i ng pr o b l ems a l l re q u ire an a ly t ic a l s k il ls . Sy s t e ms t h ink i n g

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or th e c a p ac i ty t o un d er s t a nd o r g a nis a ti o ns an d i n for m at i on s y s t e ms as s y s t ems ,
are o ne of t h e m os t c r it ic a l a n aly t ic a l t a l e nts y ou c an le ar n. S y s te ms t h ink i n g
prov i d e a fr a m ew or k f or u n der s t an d in g t h e i mp or ta nt l i nk a g es t ha t ex is t be tw e en
i nf or ma t io n s y s te ms , t he or g a nis a ti o ns i n w h ic h t hey ex is t, a n d t h e env ir o nm e nt i n
wh ic h th e c o m pa n i es o pe r a te .
Tec hn ic a l s k i l ls en a bl e y o u t o c o m pr eh e nd b o th th e be n ef its a n d dr aw b ac k s o f

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i nf or ma t io n tec h no l o g y . As an a n aly s t, y o u mus t b e a b l e t o i m ag i ne a n i nf or ma t io n
s y s te m t ha t w i ll as s is t us er s i n s o lv i ng pro b l ems wh i l e a ls o gu i d in g th e d es i gn a n d
dev e l op m en t o f t he s y s t e m. Y ou mus t a ls o b e f a m il i ar w it h p ro gr am m i ng
l an g ua g es l ik e C an d J av a , o pe ra t in g s y s te ms lik e W in d ows an d Li n ux , an d
c om p ut er h ar dw ar e p l at for ms lik e I B M a nd Mac .

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Pr oj ec t m a na g em e nt , r es o ur c e m a na g em en t, r is k ma n ag e me nt ,
ma n ag e m en t ar e a l l th i ngs t h at m a na g em e nt s k i l ls as s is t y o u w it h.
a nd c h an g e
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W ork in g w i t h e n d us er s , as w e l l as o th er an a ly s ts a nd pr o gra m mers , r eq u ir es
i nt erp ers o na l s k i l ls . As a s y s t e ms an a ly s t , y ou 'l l s e rv e as a k ey l i nk be tw e en
us ers , pr ogr a mm er s , an d ot h er I T ex p erts . A na ly s ts mus t gras p ef fec t iv e wr it t en
an d or al c o m mu n ic at i o n, as we l l as ex p ert is e i n c o n duc t in g m ee t in gs , i nt erv i ew i ng
en d us ers , an d l is t en i n g. Th es e fo ur c at e gor i es of s k i lls a re s uc c es s f u lly
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c om b i ne d by e ff ec tiv e an a ly s ts .
E xa mpl e s:
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Co ns id er tw o s c e n a r i os in w h ic h y o u c a n enc o un t er org a n is a t io na l is s u es as a
s y s te ms a na ly s t.
Fir st ,
Y ou w ork i n a l ar ge ma g az in e c o m pa ny 's i nf or ma t io n s y s te ms d ep ar tm e nt . T h e
org a n is a t io n is h av i ng t r o u bl e k ee p i ng i ts s ubs c r i pt i o n l is t u p to da t e a n d c orr ec t,
an d s o m e c o n s u m er s ar e r ec e iv in g t wo p u bl ic at i o ns i ns t e ad o f o ne . If t h e
ity

pro b l ems pe r s is t, th e c o m pa ny w i l l l os e mo n ey a n d s u bs c r ib e rs . Us e rs of th e
c urr en t c o mp u ter s y s t em , as w e l l as f in a nc i a l m an a gers , s u b mi t t he ir pro b l ems t o
y ou an d y o ur c o l l ea gu es i n t h e i nf or ma t i on s y s t e ms d ep ar tm en t i n or d er t o
es t a bl is h a m or e ef f ec tiv e tr ac k in g s y s t em .
S ec ond ,
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Y ou w ork i n a u n iv er s ity 's i nf or ma t io n s y s t ems de p art m en t a nd are t as k ed w i t h

res o lv i n g a n or ga n is a ti o na l is s u e s uc h as s en d i ng s t u de n t gr ad es to th e wr o ng
ad dr es s es .
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Tr an sa ct ion P ro c e ss i ng S yst em s (T P S)
Tra ns ac t io n pr oc es s i n g s y s t e ms ( T P S) ar e t he f ou n da t io n a l b us i n es s s y s t e ms t h at
s up p ort a n or g an iz at i on 's op er at i on a l l ev el . A tr a ns ac t io n pr oc es s i ng s y s t e m is a
c om p ut er is ed s y s t e m th at ex ec u tes an d rec ords th e ev ery day r o u ti n e tr ans ac t i o ns
th at ar e re q ui r e d f or b us in es s o p er at i ons . T he tra ns ac t i o n pr oc es s i ng s y s te ms t h at
s up p ort t h e b us i n es s 's d ay - to - d ay o pe ra t i ons are f o un d a t t h e b ot to m o f th e
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org a n is a t io n a l s tr uc t ur e.
 Co ntr o l Sy s te ms for P r oc es s es M on i tor a n d c on tr ol i n d us tr i al or p hy s ic a l pr oc es s es
wi t h proc es s c o n tr o l s y s te ms .

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Co ntr o l Sy s te ms for P r oc es s es M on i tor a n d c on tr ol i n dus tr i al or p hy s ic a l pr oc es s es
wi t h proc es s c o n tr o l s y s te ms .

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P etr o le u m r ef i n in g , p o wer g e ner at i n g, a nd s t ee l pr o duc t io n s y s te m s ar e on ly a fe w
ex a m p les . A p e tr o l e u m r ef i ner y , f or ex a m p le , us es e lec tr on ic s ens ors l i nk e d t o
c om p ut ers t o c o nt i n uo us ly m on i tor c he m ic a l proc es s es a n d m ak e i ns t a nt (r ea l - ti m e)
mo d if ic at i o ns to c o n tr o l t h e r ef i n ery pr oc es s . Eq u i pm e nt , c o mp ut er pr ogr a m mes ,
an d op er at i o na l p r oc e dur es a ll m ak e u p a proc es s c on tr o l s y s t e m. Co l l ab or at i o n

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S of tw ar e f or Bus i nes s es ( O f f ic e A ut o ma t io n Sy s t e ms ) O ne of th e mos t ex t ens iv e ly
ut i l is e d for ms of i n for ma t io n s y s te ms for as s is t i n g m a na g ers in c on tr ol l i n g t he f l ow
of i n for m at i o n i n bus i n es s es is of f ic e a u to m a ti o n s y s te ms . E nt er pri s e c o l la b ora t io n
s o lu t io ns ( o ff ic e a u to ma t io n s y s t e ms ) i m p rov e c o mm u n ic a t io n an d p ro d uc t iv ity
wi t hi n t ea ms a n d w or k gr o u ps . O t h er for ms o f i nf or ma t io n s y s te ms i nc lu d e of fi c e
au t om at i o n s y s t ems , wh ic h ar e n ot pa rt ic ul ar t o a ny o ne l ev e l of t h e c o mp a ny b ut
prov i d e v i ta l s up p or t t o a w i de r a ng e o f us ers . I n for m at i o n tec h n o lo gy is us e d t o

ty
s up p ort o ff ic e t as k s v i a of f ic e in fo rm at i o n s y s te ms . O ff ic e i nf or ma t i on s y s t e ms c an
ha n d le v o ic e ma i l, m u lt i me d i a s y s t e ms , e l ec tr o nic m a i l, v i d eo c on f ere nc i ng , f i l e
s har i n g, a n d ev en g r o up dec is i ons .

si
Ma na ge me nt Inf o rm a t ion S y st em s
Ma n ag e m en t i nf or ma t i on s y s t e ms ar e a ty p e of c o mp u ter i n for m at i on s y s t e m t h at
may c o l l ec t a n d p r oc es s da ta fr o m ma ny s ourc es t o ai d i n m a na g er ia l d ec is io n -
mak i n g. I nf or m at i on s y s te ms f or m an a ge m e nt T o a id i n c or por at e d ec is io n - m ak i n g,
er
prov i d e i nf or ma t io n i n th e f or m of pre - d e fi n ed r ep or ts a nd dis p lay s . L ow - l ev e l
ma n ag ers a nd s u p er v i s or s oc c u py th e nex t l ev e l o f t he or g an iz a ti o na l h i erarc hy .
Th is l ev e l c o nt a i ns c om p ut er s y s t ems t h at ar e d es i g ne d t o a i d o p er at i on a l
ma n ag e m en t i n mo n it or i ng a n d s up erv is i ng t he c ler ic a l l ev e l's tra ns ac t i on
iv

proc es s i ng ac tiv i t ies . Th e d a ta g en er at e d by t h e T P S is us e d by ma n ag e me n t

i nf or ma t io n s y s t e ms ( MI S) to pr ov id e s up er v is ors w it h t h e r el ev a nt c on tr o l re p orts .
Ma n ag e m en t i nf or ma t i on s y s t e ms , ac c ord i n g t o H as a n, ar e i nf o rm at i on s y s t ems
th at tak e in t er n a l d at a fr o m a s y s t e m a n d s u m m ar is e it i nt o r el ev a n t a nd us ef u l
Un

for m ats s uc h as m a na ge m en t r e p orts , wh ic h ar e t he n us ed t o s u p por t m a na g em e nt

op er at i o ns an d d ec is io n m ak i n g.

De ci s ion S uppo rt Sy st e m s
A C h o ic e S u pp or t S y s te m is a c o mp u ter - bas e d s y s t e m d es i g ne d t o as s is t a
ma n ag er or , mor e c o m mo n ly , a gr ou p of ma n ag ers a t a ny or ga n is a t io n al l ev e l in
mak i n g a d ec is io n i n t he pr oc es s of s o lv i n g a s e m i - s truc tur e d d ec is io n .
He i da rk h a ni c la i ms th at . D ec is i on S u pp or t Sy s t e ms ar e a ty p e of c o m pu te ris e d
ity

org a n is a t io n a l in f or m a ti o n s y s te m th a t as s is ts ma n ag ers i n m ak in g dec is i ons t h at

req u ir e m od e l li n g, f or mu l at i n g, c a lc u la t in g, c om p ar in g , p ic k i n g th e b es t a l ter n at iv e,
or pre d ic ti n g s it u at i on s . D ec is io n - s up p ort s y s te ms , ac c or d in g to K ha n or e e t a l. , are
s pec i f ic a l ly dev e l op e d to as s is t m an a gers i n m ak i ng d ec is i o ns in s it u at i ons w he n
th e pos s i b le e ff ec ts of s uc h ac t io ns ar e unk n ow n. A d ec is io n s up p ort s y s t em ,
m

ac c or d i ng to S h im , is a c o m pu t er - b as ed i nf o rm at i on s y s te m t h at a i ds m an a g ers i n
mak i n g a v ar i ety of c o mp l ic at e d d ec is io ns , s uc h as th os e r eq u ir ed to tac k l e po or ly
de f in e d or s e m i - s tr uc t ur e d s i t ua t io ns .
)A

E xe cut iv e Inf or m at io n Sy st em s
Ex ec u t iv e I nf or ma t io n Sy s t e ms ( E IS ) h av e b ee n d es i g ne d to a l l ow q uic k ac c es s to
bo t h in t ern a l a nd ex t er n a l i nf or m at i on , wh i c h is of t en pr es e nt ed i n a gr ap h ic a l
fas h io n b ut c a n a ls o pr es e nt m or e ex t e ns iv e un d er ly in g d at a if n ee d ed . Ex ec ut iv e
i nf or ma t io n s y s te ms o ff er ex ec u tiv es a nd m an a ge rs w i th es s e nt i al i nf or ma t io n fr om
a v ar i ety o f i n ter n a l a n d ex ter n a l s o urc es ( MI S, D SS , a n d ot h er s o u rc es c us to m is ed
(c

to t he i n for m at i on n ee ds of ex ec ut iv es ) i n e as y - to- us e d is p l a y s . Ac c or d i ng t o
P at ters o n, a n EI S is a s y s te m t h at as s is ts t op ma n ag ers in mak i ng s tr a te g ic a nd
tac t ic a l dec is i ons . An ex ec u tiv e in f orm a t io n s y s te m, ac c ord i n g t o S hi m , is m ea n t t o
 ge n er at e in fo r m at i o n th at is a bs tr ac t e n ou g h t o d is p l ay t h e en t ir e c or p or at e
fu nc t i o n i n a s i m pl i f ie d m a nn er t o s at is fy to p ma n ag e m en t.

e
E xp ert Sy st em s
Ex per t s y s t e ms ar e t h e AI c at e g ory t h at h a s ha d th e m os t s uc c e s s i n d ev e lo p i ng

lin
c om m erc i al a p pl ic a ti o ns . Ex p er t s y s t ems , ac c or d i ng t o O ' Br i e n a nd M ark , a re
k no w le d ge - b as ed s y s te ms th a t prov i d e e x per t a dv i s e a n d op era t e as ex p er t
c ons u lt a nts t o us er s . A n ex p er t s y s t e m, a c c ord i n g t o P at t ers o n , is a c o m p ut er
s of tw ar e t h at a tt e m pt s t o m im i c h u ma n r e as o n i ng . Ex pe rt Sy s te ms , ac c or d in g t o
S hi m , ar e a c o l lec t io n o f c o m pu te r pr og ra m mes t h at d o t as k s at t h e l ev e l o f a

On
hu m an ex p er t.

Know le dge Ma na ge m ent S y st em s

K no w le d ge m an a ge m en t s y s t e ms ar e k n o wl e dg e - b as e d i n for m a ti o n s y s t ems th at
he l p c o mp a ni es c r e at e, or g an is e, a n d d is s e m i na te b us in es s k n ow l ed g e t o
em p l oy e es a n d m a na ger s ac r os s t he or ga n is at i on . K n ow l e dg e m an a ge m e nt is t he
i mp l e me nt a ti o n of a c om pr e he ns iv e s y s t e m th at h e l ps an or g an iz a ti o n's k n ow l ed g e
ex p a nd . S a l is bur y , M .W . Sy s t ems of Str a t e g ic I nf or m at i on St ra te g ic i nf or m at i on

ty
s y s te ms a pp ly i n for ma t io n t ec h n o lo gy to a c o mp a ny 's pr o du c ts , s erv ic es , or
bus i n es s o p er at i ons i n or d er to pr ov i de i t a c om p et i tiv e a dv a nt a ge . Str a te g ic
i nf or ma t io n s y s t e ms , ac c or d i ng t o Be l l e e t a l. , ar e a u n i qu e ty p e of or ga n is at i on a l
i nf or ma t io n s y s t em th at is us ed t o g a i n or ma i nt a i n a c o m pe t it iv e a dv an t ag e i n t he

si
ma rk e tp l ac e. B us i n es s Sy s t e ms T ha t Work (I n for m at i o n Sy s t ems fr o m F unc t io n a l
P ers p ec tiv e) In f or m a t i on s y s te ms th at f oc us o n op er at i o na l an d a d m in is tra t iv e
ap p l ic a t io ns i n s up p or t o f es s e n ti a l b us i n es s o per a ti o ns are k n o wn as fu nc t io n al
bus i n es s s y s t ems . Ac c ou n ti n g, f in a nc e , m a rk et i ng , op er at i ons m an a ge m e nt an d
er
hu m an r es our c e ma n a ge m en t a r e ex a m p les of in f orm a t io n s y s t e ms t h at s erv e th es e
ap p l ic a t io ns . S a l es a n d m ar k et i ng s y s te ms , ma n uf ac t ur i ng a nd pr o duc t io n s y s t e ms ,
fi n anc e an d ac c o u nt i n g s y s t ems , an d h u m an r es o urc e s y s t e ms ar e t h e f ou r ty pes of
i nf or ma t io n s y s t ems c l as s if i ed by org a n iz a t io na l f u nc t i on .
iv

S al es and M a rk et ing Inf o rm at ion S y st em s

Th e s a l es a n d m ar k et i ng d ep ar tm e nt is in c har g e o f s e l l i ng th e c om p any 's pr o duc t
or s erv ic e . M ar k e t in g i s c o nc er n ed w i th es ta b lis h i ng w ho t h e f ir m's c o ns u m ers ar e,
Un

dec i d in g w h at t h ey n e ed or d es ir e , p l an n i ng an d d es i gn i ng pr od uc t s a n d s erv ic es to
fu l fi l t he ir d e ma n ds , an d a dv er t is in g a nd ma rk e t in g th es e pr od uc ts a n d s erv ic es .
Co nt ac ti n g c o ns u m er s , s el l i ng it e ms an d s e rv ic es , rec e iv in g or d e rs , an d f ol l ow i n g
up o n s a l es ar e a l l par t o f s a l es . Th es e op er at i ons ar e a i de d by s a les an d
ma rk e t in g i nf or ma t io n s y s te ms . Ac c or d i ng to S h i m, a ma rk e t i ng m a na g em e nt
i nf or ma t io n s y s te m ( MI S) h e l ps ma n ag ers w it h pr od uc t c r ea t io n, m ark et i ng mix ,
d is tr i bu t io n , pr ic i n g, p r o mo t io n al ef fec t iv e n e s s , an d s a l es for ec as t i ng .
ity

Ma nuf act ur ing and Pr oduct ion I nfo rm ati on S y st em s

Th e m an uf ac tur i n g an d pr od uc t i o n d ep ar tm en t is in c h ar g e of ac tu a l ly mak i n g th e
go o ds a n d s er v ic es t h at th e c om p any s e l ls . Ma n uf ac t ur i ng a nd pr o duc t io n s y s te ms
are c o nc e r n e d w it h th e p l a nn i ng , dev e l op m en t, a nd m a in t en a nc e of m an uf ac tur i n g
fac i l it i es , as we l l as th e es t a b lis h me n t of pr od uc ti o n go a ls , th e ac q u is it i o n,
m

s tor a ge , an d av a i la b i li ty o f pr od uc ti o n m at er i als , a nd t he s c h e du l i ng o f eq u i pm e nt ,
fac i l it i es , m at er ia ls , an d la b o ur re q ui re d t o f as h io n f i n is h e d pro d uc ts . Th es e
op er at i o ns a r e a i de d by ma n uf ac t ur i ng a n d pr od uc ti o n in f orm a t io n s y s t e ms . Th e
pro d uc t i o n in fo r m at i o n s y s te m , ac c or d i ng t o Her n a nd ez an d R iv e r a, is a c o mp u ter
)A

s of tw ar e t ha t h a n dl e s a d at a bas e of pr o duc t io n - r e la t ed d at a. A ma n uf ac t ur i ng
i nf or ma t io n s y s t em 's o bj ec t iv e , ac c ord i n g to S hi m , is t o u s e c o m pu ter t ec hn o l ogy t o
i mpr ov e a pr o duc t io n s y s te m's pr oc es s a nd e ff ic i enc y , r es u lt i ng i n h ig h er pr od uc t
qu a l ity a n d lo w er m an uf ac t ur i ng c os ts . A m an u fac tur i n g s y s te m, i n ot h er w or ds , is
a s y s t em t ha t t ak es ma te r i a l, e qu i p me nt , da ta , ma n ag e me n t, an d in f o rm at i o n
s y s te ms t ec h n ol o gy as i n pu t a nd e m p loy s m a nu f ac t ur in g a nd in f orm at i on p roc es s es
(c

to pr o duc e s u p er ior f i n is he d pr o duc ts as o ut p ut .

Fin an ce a nd A cc ount ing Inf or mat ion S yst em s

 Th e fi n a nc e f u nc t i on i s i n c h ar ge of t he c o mp a ny 's f i na nc i al as s ets , s uc h as c as h,
s toc k , bo n ds , a n d ot h er i nv es t me nts . T h e ac c o u nt i ng d e pa rt m en t is in c h ar g e of

e
k ee p i ng a nd m on i tor i ng th e c om p any 's f i na nc ia l r ec ords , s u c h as r ec e ip ts ,
de pr ec ia t io n , a nd pay r o ll . S h i m c l a i ms th a t Ac c ou nt i n g s o ft war e's pr i m ary f unc t io n
is t o au to m at e t h e t e d io us w or k of e nt er in g a n d p os t i n g ac c o un ti n g tr a ns ac t io ns .

lin
Th is da t a is s tr uc t ur e d in a n e lec tr on ic f or ma t s o t h at f i na nc ia l s ta te m en ts c a n b e
ge n er at ed , a n d it m a y b e ac c es s i bl e ins ta nt ly t o a i d i n t he f ir m's m a na g e me nt .
Fi na nc i a l in for m at i o n i s pr ov i d ed t o al l f in a nc ia l m an a ger s ins i de a n or g a nis a ti o n
us in g a f i n anc i a l m an ag e me n t i nf or m at i on s y s te m. T h e i nf or m at i on ge n er at ed by
th e ac c ou n ti n g s y s te m is oft e n us ed t o m ak e f i na nc ia l d ec is i ons .

On
Hum an R es ou rc e Inf o rm at i on S y ste m s

Hu m an R es our c es I nf o r m at i on Sy s t e ms ( HR I S) ar e a m e th o d of g a t her i n g,
org a n is in g, s t or i ng , a n d d is s e m i na t in g h u ma n r es ourc e d at a t o as s is t ma n ag ers a t
a ll lev e ls o f a c o mp a n y i n m ak in g in for m e d d ec is i o ns . H u ma n res o u rc e i nf or ma t i on
s y s te ms ar e n ow us e d by t h e maj or ity of s uc c es s f u l f irms t o s u p po rt da i ly h u ma n
res o urc e ac tiv i t ies Kh an or e. T he hu m an r es ourc es d e par t me n t is i n c h arg e o f

ty
at trac t in g , dev e l op i n g, a n d r et a i ni n g th e c o m pa ny 's w ork forc e . Hu m an r es o urc es
i nf or ma t io n s y s t ems h e lp w i th t as k s i nc lu d i n g d is c ov er i ng po s s i b le e m pl oy e es ,
k ee p i ng c o m p le t e r ec o r ds o n c ur r en t e mp l oy ees , a nd dev e lo p i ng p rog ra m mes t o
he l p p eo p l e d ev e l op t h e ir ab i l i ti es a n d s k i l ls . Co nc lus i o n In c o m m er c i al

si
org a n is a t io ns , v ar io us ty pes of i n for m at i on s y s te ms ar e e mp l oy ed . Tra ns ac t io n
proc es s i ng s y s t e ms ar e us ed t o k e ep tr ac k o f t h e d a ily tr a ns ac t i on s t ha t ar e
req u ir ed t o r u n a f ir m.
er
1. 1. 6 Ty pe s of S y st e ms

Ty p es of Sy s t e ms
iv

Th e s y s te ms c a n b e d i v i de d i nt o t he f o l lo w i n g ty p es −
Ph y si ca l or A bst r a ct S yst em s
• Physical systems are real-world objects. We can reach out and touch them.
Un

• Physical systems can be either static or dynamic. Desks and chairs, for example, are static
physical components of a computer centre. A programmable computer is a dynamic system
that allows programmes, data, and applications to alter in response to the needs of the user.
• Abstract systems are non-physical or conceptual entities that can be formulas, models, or
representations of real systems.

O pen o r Cl os ed Sy st em s
ity

• A n op e n s y s te m mus t c om m u nic a te w i th its s urr ou n di n g s . I t r ec e iv e s i n pu ts

fro m t he ou ts id e w or ld a n d s en ds o ut ou tp u t s . A n i nf or ma t io n s y s t em , f or
ex a m p le , th a t m us t a d ap t t o c ha n g in g e nv iro nm e nt a l c o nd i t io ns .
• A c l os ed s y s t e m is o n e th a t do es n ot in t erac t w i t h its s urro u nd i n gs . I t is
pro t ec t ed f r o m o uts i d e i n fl u enc es . In ac t ua l it y , a c o mp l et e ly c l os ed s y s t em
m

is u nc o m m on .
Ada pti v e and N on - A d apt iv e S y ste m
• A da pt iv e s y s t ems ad a pt t o c h an g es i n th e e nv iro n me n t i n or der t o i m pr ov e
th e ir p er f or ma nc e a nd ens ur e th e ir s urv iv a l. Hu m ans an d a n im a ls , for
)A

ex a m p le .
• Th e ter m " n o n- a d ap t iv e s y s te m" re fe rs to a s y s te m t ha t d oes n o t r e s po n d to
its s ur r o u nd i n gs . M ac h i nes , for ex a m p le .
P er ma ne nt o r T emp o ra r y S y st e m
(c

• P erm a ne n t Sy s t em is a s y s t em th a t l as ts a l o ng t im e . C ons i d er c orp or at e

po l ic i es .
 • Te mp or ar y s y s t ems ar e bu i l t for a s pe c if ic p er i od of t i me a n d th e n
d is m a nt l ed . A DJ s y s te m, f or ex a m p le , i s s et u p f or a s ho w an d th e n

e
d is m a nt l ed af ter wa r d .
Nat ur al and M an uf a ct ur ed S y st e m

lin
• Na tur e is t h e o ne w h o c r ea t es na t ura l s y s t e m s . F or i ns ta nc e, c o ns i der t h e
s o lar s y s t e m a nd t h e s eas o na l s y s t e m.
• Th e ter m " m a nu fa c t ur ed s y s t e m" r ef ers t o a s y s te m t ha t h as be e n c rea t ed by
hu m ans . R oc k e ts , da m s , an d ra i l way s , for ex am p l e.
Det e rm ini st ic o r P rob abi li st ic Sy st em

On
• Th e i nt er ac t i on b et w e en s y s t e m c o mp o ne nt s is k n o wn w it h c o nf i de nc e i n
de t er m i n is t ic s y s t ems . W at er, f or ex am p l e, is m a de up o f tw o hy dr o g en
mo l ec u les a n d o ne ox y ge n m o l ec u l e.
• Th e be h av io ur of t h e Pr ob a b il is t ic Sy s t e m is i nc o nc l us iv e . T he pr ec is e
ou t pu t is u nk no wn . W e at h er for ec as t i ng an d ma i l d e l iv ery are t w o e x am p l es .

ty
So ci a l, Hu ma n - M a ch i ne, Ma ch in e S ys te m

• P eo p l e mak e u p t he s oc ia l s y s t em . S oc i al c l ubs an d s oc i et i es , f or ex a m p le .

si
• In a H u ma n - M ac h i n e S y s te m, bo th hu m ans a nd mac h i nes w ork t og et h er to
c om p l et e a t as k . T ak e , f or i ns t a nc e , c o mp u te r pr o gra m m i ng .
• Hu m an inv o lv em e nt is no t a l lo w ed in a mac h i ne s y s t e m. T he
er
mac h i nec o mp l et es a l l of t h e du t ies . Tak e, f o r ex a mp l e, a s e lf - dr iv i ng r ob ot .

Ma n – M ad e Inf o rm at io n Sy st em s
iv

• It is a n et wor k o f i nt er c on n ec t e d in f orm a ti o n res ou rc es us e d t o m a na g e da t a

for a s pec i fic or g a n is a ti o n a nd is m an a ge d d i rec t ly by ma n ag e me n t (DM C).
• Th is s y s t em c ons is ts o f h ard w are , s o ft wa re, c o m m un ic at i o n, d at a, an d
Un

ap p l ic a t io ns f or pr o duc i n g i nf or ma t io n bas e d o n a n or ga n iz a t io n's

req u ir e me nts .

Ma n- m ad e i n for m at i on s y s t ems ar e div i d ed i nt o t hr e e ty pes −

• For ma l Inf or m at io n S yst e m It is b as e d o n th e f l ow of in f orm a ti o n fr om th e
to p t o l ow er l ev e ls of ma n ag e m en t i n t he f or m o f m em or an d a, dir e c ti o ns , a n d
s o o n.
ity

• Info rm al I nf o rm at i on S yst em ( II S): T h is is an em p l oy e e - bas e d s y s te m t ha t

ad dr es s es day - t o- d ay wor k - r e l at e d is s ues .
• Comp ut e r- B as ed S y s t em For h a nd l i ng b us i nes s a p pl ic a ti o ns , t his s y s te m is
c om p l et e ly r e li a nt o n th e c o mp u ter . A ut o ma t ed l i br ary s y s te m s , ra i l way
res e r v a t io n s y s t ems , f i na nc i al s y s t e ms , an d s o for t h.
m

O p era t io n a l- l ev e l s y s t ems , m an a g em e nt - l ev e l s y s t e ms , a n d s tr at e g ic - l ev e l s y s te ms
are t h e t hr e e bas ic ty pes o f i nf or ma t io n s y s te ms th a t s erv e d is t in c t org a nis a t io n al
)A

l ev e ls . O per a t io n al - l e v e l s y s t e ms as s is t o per a ti o n al m a n ag ers by t rac k i ng t h e

org a n iz a t io n' s b as ic ac t iv it i es an d tra ns a c ti o ns , s uc h as s a l e s , rec e i pts , c as h
de p os its , p ay r o l l , c r e d it d ec is io ns , a nd ma ter i a l f lo w i n a pl a nt . At th is l ev e l, t h e
pr im ary g oa l o f s y s t ems is t o ans w er r o ut i ne q u er ies a n d f o l l ow th e f lo w of
tra ns ac t i ons w it h i n t h e c o m p a ny . H ow m a ny par ts d o y ou h av e in s toc k ? W he re d i d
Mr. W il l i a ms ' p ay m e nt g o? I n or d er to a ns w er th es e k i nds o f q uer i es , d at a m us t b e
(c

rea d i ly av a il a b le , r ec en t, an d c orr ec t . A s y s te m t ha t r ec or d s b ank de p os i ts fr om

au t om at ic t e l ler m ac h i nes or o n e th a t c ou nts t he n u mb er o f ho urs work e d eac h d ay
by p ers o n ne l o n a f ac t or y f lo or ar e ex a mp l es o f o per at i o na l - l ev el s y s te ms .
 M id d l e m a na g er s ' m on i tor i n g, c on tr o ll i n g, dec is i on - m ak in g , a n d a d m in is tra t iv e
op er at i o ns ar e s up p or te d by m a na g e me nt - l ev e l s y s te ms . T he pr i ma ry c o nc ern o f

e
s uc h s y s te ms is w he th er or n ot t h i ngs ar e ru n ni n g s m o ot h ly . M an a ge m e nt - l ev e l
s y s te ms of te n g en er at e r ep or t s o n a r eg u l ar bas is ra th er th a n pro v i di n g r ea l - t im e
da t a o n ac t iv i ti es . A r e loc at i o n c o ntr o l s y s te m, for ex a m p le , re por ts o n ov er a ll

lin
re loc at i n g, ho us e - h u n ti n g, an d h o m e - f i na n c i ng c os ts f or em p l o y ees ac r os s a l l
c orp or at e d iv is io ns , h i gh l i gh t in g a ny ar e as w her e ac tu a l c os ts ex c e ed bu d ge ts .

Ro ut i n e dec is i on - m ak i ng is no t s u pp ort e d b y s ev er al m a n ag e me n t - l ev e l s y s te ms .
Th ey pre fe r t o c o nc e nt r at e o n les s - s tr uc t ur ed d ec is i o ns w i th a m b ig uo us i nf or m at i on

On
req u ir e me nts . T h es e s y s te ms fr eq u en t ly s o lv e " w h at - i f" pro b l ems , s uc h as : W h at
wo u ld h ap p en to pr o duc t io n pl a ns i f s a l e s d o u bl e d i n D ec e m b er? W h at i mp ac t
wo u ld a s ix - m o nt h de l ay i n a pro d uc t i on s c h e du l e hav e o n our re t urn o n
i nv es tm e nt ? A ns w er s to t h es e c o nc erns f req u e nt ly n ec es s i ta te n ew d at a fr om
ou ts id e t he or g an is at i on , as we l l as d at a fr om w i th i n th e or ga n is at i on t h at c a nn ot
be eas i ly ex tr ac t ed fr o m o per a ti o na l - l ev el s y s te ms .

S en i or ma n ag e me n t c an us e s tr at e g ic - l e v e l s y s t ems to a tt a c k an d ad dr es s

ty
s tra te g ic c o nc er ns a nd l on g - ter m tr e nds bo t h w it h in t h e c o m pa ny a n d i n t he
ex t er na l env ir o nm e nt . T he ir ma i n f oc us is ens ur i ng th at c ha n ge s in t h e ex ter n a l
env ir o nm e nt ar e m atc he d w i th or g a n is a t io n a l c a pac i ty . W ha t w i ll t h e e mp l oy me n t
s it u at i on be l ik e i n f iv e y e ar s ? W h at a re t h e l o ng - t erm c os t t re n d s in t h e i n dus try ,

si
an d h ow d oes o ur c om p any f i t in ? In f iv e y ears , wh at pr o d uc ts s h o u ld w e be
pro d uc in g ?

S al es a nd m ar k et i ng , ma n uf ac t ur i ng a n d pr od uc ti o n, f in a nc e a n d ac c o u nt i n g, an d
er
hu m an res o ur c es ar e a m on g th e p ri m a ry c orp or at e op er at i ons s erv ed by
i nf or ma t io n s y s t e ms . Eac h f u nc t i on a l ar e a i n a ty p ic a l or ga n is at i on c on ta i ns
op er at i o na l , m a na g e me n t, an d s t ra te g ic s y s te ms . O n an o pe r at i on a l lev e l, th e
s a les f unc t io n, f or ex am p l e, us ua l ly h as a s a les s y s t em t o rec or d d a i ly s a les d at a
iv

an d ex ec u te or d er s . A s y s t e m at th e m a na g em e nt l ev el tr ac k s m on th ly s a l es
nu m be rs by s a le s r eg i on an d g en er at es re p orts o n t err it or i es wh e re s a les ex c e e d
or fa l l s h or t o f ex pe c ta t io ns . T he s tr at e g i c l ev el is s erv e d by a s y s t em t h at
for ec as ts s a les tr e n ds ov er a f iv e - y ear p er i od . We b eg i n by d es c ri bi n g t h e m a ny
Un

ty p es o f s y s te ms t ha t s er v e e ac h or ga n is a t i on a l l ev e l , as w e ll a s t he ir us e fu l n es s
to th e c om p a ny . T h en , f or e ac h im p ort a nt b us in es s f u nc t i on , w e de m ons tr at e ho w
fir ms us e t hes e p l at fo r ms .

Four Ma jo r Ty pe s of S yst em s

Th e ty p es o f i nf or ma t i on s y s t ems t ha t c orr e s po n d t o e ac h or g an is at i on a l l ev e l ar e
de p ic t e d i n t h e d i ag r am . At t h e s tr at e g ic l ev e l , t he org a n is a t io n h as ex ec ut iv e
ity

s up p ort s y s t e ms ( E S S ) ; at th e m a na g em e nt l ev e l , it h as m an a ge me n t in f orm a ti o n
s y s te ms (M I S) a n d d e c is io n - s u pp ort s y s te m s (D S S) ; a nd at t h e o per a ti o n al l ev e l , i t
has tr ans ac ti o n pr oc e s s i ng s y s te ms ( T PS ). E ac h o f t he pr i m ary f u nc t i on a l are as is
s erv e d by s pec i a l is e d s y s te ms at e ac h l ev e l. As a r es u lt , s t an d ar d o rg a nis a ti o n al
s y s te ms ar e des i gn e d to a i d wor k ers or m a na g ers at a l l l ev e ls , a s we l l as i n th e
m

fu nc t i o ns of s a l es a nd mar k e ti n g, m a nu f ac t ur in g a n d pr od uc t i on , f in a nc e an d
ac c o u nt i ng , a nd hu m a n r es our c es .
)A
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ty
si
Th e fo ur m aj or ty p es o f i nf or ma t io n s y s t ems are de p ic t e d i n F i g ure 1.
er
TP S , D S S, MI S , a nd E S S ex a mp l es ar e s ho wn in th is d ia gr am , a l on g w i th th e lev e l
of t h e org a n is a t io n a n d b us i n es s fu nc ti o n th at e ac h s u pp or ts .
iv

Th e c h ar ac t er is t ic s of th e f o ur ty pes o f i n for ma t io n s y s te ms are s u m mar is e d i n t h e

ta b le . I t's w or th no t in g t h at eac h of t h e m a ny s y s t e ms m ay c on ta i n c om p on e nts th a t
are us e d by or ga n is a t i on a l l ev e ls a nd g ro u p s ot h er th a n th e pr i ma ry s t ak e h ol d ers .
Un

A s ec r e tary m ig h t n ee d t o us e a M I S t o f in d in for m at i o n, or a m i d d le ma n ag e m en t
m ig ht ne e d to ex tr ac t da t a fr o m a T P S.

TAB LE C ha r a ct e r ist ic s o f I nfo rm at ion P ro c es s ing S y st em s

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TRA N SA CTI O N PRO C E S SI NG S Y ST E M S

Tra ns ac t io n pr oc es s i n g s y s t e ms ( T P S) ar e t he f ou n da t io n a l b us i n es s s y s t e ms t h at
s up p ort a n or g an iz at i on 's op er at i on a l l ev el . A tr a ns ac t io n pr oc es s i ng s y s t e m is a
c om p ut er is ed s y s t e m t h at ex ec ut es a n d r ec or ds t h e ev ery d ay nor m a l b us in es s
(c

tra ns ac t i ons . Sa l es o r de r e ntr y , h ot e l r es erv a t io n s y s t e ms , p a y ro ll , e m p loy e e

rec o rd k e e p in g, an d s h ip p in g ar e j us t a fe w ex a m p les .
 Tas k s , res o ur c es , an d go a ls ar e s e t an d h ig h ly s tr uc t ur e d a t t h e o per a ti o n al l ev e l.
A lo w er - lev e l s u p er v is or , for ex am p l e, dec i d es w he t her or no t t o i s s ue c r e d it t o a

e
c us t o mer b as e d o n pr e d et er m in e d c ri t er i a. A l l t ha t re m a ins is t o s e e if t h e
c ons u me r s at is fi es t he r e q ui r e m en ts .

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A pay r o l l T P S, as s ho w n i n F i g ure 2 - 3, is a c o m mo n ac c o u nt i ng tr ans ac ti o n
proc es s i ng s y s t em s e en i n mos t bus i nes s es . T h e mo n ey p a i d to e mp l oy ees is
trac k e d by a p ay r o l l s y s te m. D at a el e m en ts are d is ti nc t p i ec es o f i nf or ma t io n (s uc h
as a n a me , a d dr es s , or e m pl oy ee nu m b er) th at mak e u p t h e m as ter f i l e. T he da t a
e le m en ts ar e u pd a te d as d at a is e n ter e d i nt o t he s y s t e m. T h e ma s t e r f il e's c on t en ts

On
are m ix ed a n d m atc h ed i n v ar io us w ay s t o c re a te r e p orts for ma n ag e m en t a n d
gov er n me nt a ge nc ies , as we l l as to d is tr i bu t e p ay c h ec k s t o e mp l oy ees . O t h er
rep or t c o mb i n at i ons o f c ur r e nt d a ta p i ec es c an be g e ne ra te d us i ng t hes e T P S.

ty
si
er
iv
Un

Figu r e: A gr a ph ic a l i l l us tr at i o n of a T P S f or pay r o l l.

A p ay ro l l s y s t em is a s ta n dar d ac c ou n ti n g T P S t ha t h an d les tra ns ac t i ons lik e

em p l oy e e t i me c ar ds a nd s a lar y an d d e duc t i on c ha n ges . I t k e eps t rac k o f e mp l oy ee
s a lar i es , w i th h o ld i ng t ax es , a nd pay c h ec k s .

Fi gu re s ho ws s om e o th er c om m o n TP S ap p l ic a t io ns . S al es /m ark et i n g,
ity

ma n uf ac t ur i ng / pr o d uc t i on , f in a nc e / ac c o u nt i n g, hu m an r es o urc es , an d o t her for ms

of T PS t ha t ar e u n i qu e to a g iv en i n d us try ar e s ho w n in th e d ia gr a m. A
ma n uf ac t ur i ng T P S is th e Un i t ed P arc e l S erv ic e (U P S) p ac k a g e trac k i n g s y s t e m
de t ai l e d i n C ha p ter 1. U P S pr ov i d es p ac k ag e d e l iv ery s erv ic e s , a nd t h e T P S
s y s te m rec or ds a l l of i ts pac k a ge s hi p m en t tr ans ac ti o ns .
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TP S is us e d i n a v ar i e ty of w ay s , as s ho w n i n th e d i ag ra m.

si
TP S is d iv i de d i nt o f iv e f u nc ti o na l c a te g or ies : s a l es / m ark e t in g,
ma n uf ac t ur i ng / pr o d uc t i on , f in a nc e / ac c o u nt i ng , h u ma n res o urc es , a n d o th er
i nd us try - s p ec if ic s y s t ems . T h er e ar e s ub - fu nc t i o ns w i th i n eac h of t hes e maj or
fu nc t i o ns . T h er e is a s i gn i fic a nt a pp l ic at i on s y s te m f or e ac h o f t hes e s u b tas k s ( fo r
er
ex a m p le , s a l es ma n a g em e nt) .

Tra ns ac t io n pr oc es s i ng s y s te ms ar e ty p ic al ly s o im p ort a nt to a c o m pa ny 's

op er at i o ns t h at ev e n a br i ef o u ta g e c an r es u lt in t h e c om p a ny 's d e m is e , as w el l as
iv

th e d e m is e of ot h er c om p an i es r el a te d t o it . C ons i der w ha t m i gh t h a p pe n if U P S's

pac k a ge tr ac k in g s y s te m br ok e d ow n! W ha t wo u ld t he a ir l i nes d o if t he ir
res e rv a t io n s y s t ems w er e n' t c o mp u ter is e d?
Un

TP S is us ed by m an ag er s to k e e p tr ac k of i nt er na l o pe ra t io ns an d th e f irm 's
re la t io ns h ips w i th t h e o uts i d e wo r l d . T P S are a ls o k ey i nf or ma t i on prov i d ers for
ot h er s orts of s y s t e m s . ( F or ex a m p le , t h e pay r o l l s y s te m s h ow n b el o w, to g et h er
wi t h o t her ac c o un t in g TP S , f e eds d at a to t he c o m pa ny 's g en er a l l ed g er s y s t e m,
wh ic h k ee ps tr a c k o f th e fir m 's inc o me a n d ex pe ns es an d g en er at es r e por ts l ik e
i nc o m e s ta te m e nts a n d b al a nc e s he ets .)
ity

MA NAG E M E NT IN FO R MA TIO N S Y ST E M S

Th e s t u dy of i nf or m a ti o n s y s t e ms i n bus i nes s a n d ma n ag e me nt is d ef i n ed as
ma n ag e m en t i nf or ma t i on s y s t e ms . M a na g e me n t i nf or ma t io n s y s te ms ( M I S) a ls o
ref ers to a s ubs et o f i nf or ma t io n s y s te ms th at s u pp ort m a na g em e nt - l ev e l fu nc t io ns .
m

Ma n ag e m en t in f or m a ti on s y s t ems (M I S) prov i de r e po rts a nd , in m a ny c a s es , o n l i ne

ac c es s t o t he or ga n i z at i on 's c ur r e nt p erf o rm anc e an d his t or ic a l r ec o rds to th e
org a n iz a t io n's m a na g em e nt l ev e l. MI S ar e us u a l ly al w ay s f oc us e d o n in t ern a l
ev e n ts , r at he r t ha n e n v ir on m en t al or ex t ern a l o nes . At t h e m a na g em e nt l ev e l , M I S
)A

l arg e ly s er v es t h e pl an n i ng , c on tr ol l i n g, a nd d ec is io n - m ak i n g a c tiv i t ies . F or th e

mos t p art , t hey r e ly o n u n der ly i ng tr a ns a c t i o n pr oc es s i n g s y s te ms for d a ta .

Th e c or e o p er at i ons o f th e c om p any ar e s u m mar is e d a nd r e por t e d o n by th e MI S .

TP S's c ore t r a ns ac t i on d at a is c o mpr es s ed a nd f re q ue nt ly prov i d ed i n lar g e r e por ts
th at ar e g en er at e d o n a r eg u l ar bas is . T h e d ia gr am d e p ic ts h o w a ty p ic a l M I S
(c

c onv er ts tr ans ac ti o n - l ev e l da t a fr om i nv e n to ry , pr o duc t io n, a nd ac c ou n ti n g i n to MI S

fi l es th a t ar e us e d to g en er at e r e p orts f or ma n ag e m en t. An ex a mp l e r e po rt fr om
th is s y s t em is s h ow n i n F i g.
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FIG Ho w c a n m an a g em e nt in for m at i o n s y s te ms g et d at a fr om t he T P S of a n
org a n is a t io n

si
Thr ee TP S g iv e s u m ma r is e d tr a ns ac t io n d at a t o t h e M I S r ep or ti ng s y s te m at th e
c onc l us io n o f th e t i m e p er i o d i n th e s y s t e m d ep ic te d i n t his d i agr a m. Ma n ag ers
hav e ac c es s to or ga n i s at i on a l da ta v i a t h e MI S , w h ic h a ls o pr ov i des th e m w i th th e
er
nec es s ary r e po r ts .
iv
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ity
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A s a m pl e M I S r e por t i s s h ow n i n FIG

Th e MI S in F i g c r ea t e d a r e po r t t ha t s u m ma ris ed a n n ua l s a l es d at a.

A lt h ou g h s o me M I S a l l ow m a na g ers to d ri l l do w n t o ac c es s d a ily or h our ly d at a i f

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ne e de d , m os t MI S s er v e m an a ge r s wh o ar e pr im ar i ly i nt er es t e d i n we ek ly , mo nt h ly ,
an d y e ar ly r es u l ts . M I S ty p ic a l ly r es p o nd t o ro ut i ne q u er ies t h at hav e b ee n pr e -
de f in e d a nd h av e a pr e - d e fi n e d s tra te gy f or res p o n di n g to t h em . F or ex am p l e, M I S
rep or ts m i gh t lis t t h e to ta l po u nds of l et tuc e c o ns um e d by a f as t - fo o d c h a in th is
qu ar ter , or c om p ar e to ta l an n ua l s al es n um b ers f or v ar i o us g oo ds t o p l an n e d
tar g ets , as s h o wn i n Fi g ur e 2 - 6 . I n g en e ra l, t hes e s y s te ms ar e r i gi d a nd l ac k
(c

an a ly t ic a l c a pa b i li t ie s . I n c o ntr as t t o s op h is t ic at e d m at he m at ic a l mo d e ls or
s ta t is t ic al m e th o do l og i es , m os t M I S us e s i m p le pr oc es s es s uc h as s u mm ar i es an d
c om p ar is o ns .
 DE CI S IO N - SU P PO RT S Y ST E M S

Dec is i on - s u pp or t s y s t ems ( DS S) are eq u a l ly us ef u l at t h e ex ec ut iv e l ev e l o f a

e
c om p any . D S S as s is t m a na g er s i n mak i ng d ec is i o ns t ha t ar e o n e - o f- a- k in d,
fre q ue nt ly c ha n g in g, an d d i ff ic u lt t o pr e dic t i n a dv a nc e. T hey a re us ed to s olv e

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pro b l ems wh er e th e t e c hn i q ue f or a rriv i n g at a s ol u ti o n is n' t c o mp l et e ly pr ed e fi n e d
ah e ad o f t im e . A lt ho u gh D S S us es i nt er na l da t a fr o m T P S a n d MI S, t h ey f re q ue nt ly
us e d at a fr o m o uts i de s o ur c es , s uc h as c ur ren t s toc k pr ic es or c om p et i tor pr o duc t
pr ic es .

DS S c l e ar ly hav e h ig her a n a ly t ic al p ow er th a n o t her s y s t ems b y d es i g n. Th ey

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an a ly s e d a ta us i ng a n um b er of a l gor i th ms or c o nd e ns e v as t am o un ts o f da t a in to a
for m at th a t d ec is io n mak er s c a n u n ders t an d. D S S ar e c r e at ed i n s uc h a way t ha t
c ons u me rs c a n i nt er a c t w it h th e m di rec t ly ; t h es e s y s t e ms f e at u re us er - fr i en d ly
s of tw ar e. D S S a r e i nt e r ac t iv e in t he s e ns e t h at th e us er c an a lt er a s s um p ti o ns , as k
ne w q ues t io ns , an d a d d n ew d at a .

Th e v oy a g e - es t im a ti n g s y s te m o f a s u bs i di ar y of a l ar g e Am er ic an me t als f ir m th at

ty
op er at es ex c l us iv e ly t o t r a ns por t bu lk c ar g o es of c o a l, o i l, or es , a nd f i nis h e d g o o ds
for its p are n t c o m pa n y is a n in tr ig u i ng , m o des t, b ut po we rf u l D S S. T h e c o m p any
ow ns s om e s h ips , c ha r ter s o th er s , a n d c o m pe t es f or ge n era l c ar go tr ans p ort at i o n
c on tr ac ts o n th e fr ee ma r k e t. Th e f in a nc ia l an d t ec h n ic a l d et a i ls of a v oy a ge ar e

si
c a lc u l at e d by a v oy ag e - es t i ma t in g s y s te m. S hi p /t i me c os ts (f u e l, l ab o ur, c a p it a l),
fre i gh t ra tes f or v ar i o us ty p es o f c ar go , a n d p ort c h ar ges are al l i nc l ud e d i n th e
fi n anc i a l c a lc ul a ti o ns . Sh i p c ar g o c a pac i ty , s p e ed , p ort d is t anc e s , fu e l a n d wa t er
us a g e, a nd l o ad i n g p at ter ns ar e o n ly a f e w o f t h e t ec hn ic a l f e a tur es ( l oc a t io n of
er
c arg o f or d if f er e n t por t s ) .

Q u es t i ons l ik e t h es e c an be ans we re d by th e s y s t em : W h ic h v es s e l s h o u ld be
as s ig n ed a t wh a t r a t e t o op t im is e pr of it a b i li ty giv e n a c l i en t de l iv ery s c he d u le a n d
iv

an of f ere d f r e i gh t r at e ? Wh at is th e o p ti m u m s pe e d a t w h ic h a v es s e l c a n m ax i m is e
pro f it w h i le s t i l l m e et i ng its d e l iv ery d ea d l in e? W ha t is t h e bes t l o ad i n g pa tt er n f or
a s h i p s a i l in g fr o m M a lay s i a t o t he W es t Co as t of th e U n it e d St a tes ? T he D SS
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c rea t ed fo r t his c o m p any is s ho w n i n F i g ur e 2 - 7 . Th e s y s te m r u ns o n a p ow er fu l

des k t op c o m p ut er a nd f ea t ur es a m en u s y s te m t ha t m ak es it s i m p le f or us ers t o
en t er da t a a nd r e tr i ev e i nf or ma t io n .
ity
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FIG A s y s t e m for es t i ma t in g a n d m ak i n g d e c is io ns a b ou t a tr i p.
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Th is D S S r u ns o n a po w er f u l c o m pu t er. M an a ge rs t ha t mus t g e ner a te b ids f or

s h ip p in g c o nt r ac ts ut i l i s e i t on a da i ly b as is .
 Th is D S S f or es t im a ti n g v oy a ges la rg e ly re l i e s o n an a ly t ic a l m o de ls . O t her v ers io ns

e
of D S S ar e l es s mo d el - dr iv e n , f oc us e d ins t e ad o n r etr i ev in g me a n i ng f ul i nf or m at i on
fro m l ar ge a m ou n ts of d at a to a i d dec is i on - mak i n g. I ntr aw es t, fo r ex a m p le , c o ll ec ts

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an d m a i nt a ins mas s i v e a mo u nts o f c l i e nt d at a fr o m it s W eb s it e , c a ll c en tr e ,
ac c o m m od at i o n r es er v at i ons , s k i s c ho o ls , a nd s k i e q ui p m en t r en t a l o u tl e ts , a mo n g
ot h er p l ac es . It a na l y s es t hes e d a ta w i t h s o p h is t ic at e d s of tw a re t o as s es s t he
v a lu e, i nc om e po t en t i a l, an d l oy a l ty o f e ac h c o ns um er s o t h at ma n ag e m en t may
be tt er ta rg et t he ir m a r k et i ng in i ti a tiv es . C u s to m ers are d iv i de d i nt o s ev e n gr ou ps

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de p en d i ng on th e ir n e eds , a tt i tu d es , a n d h a b its , w it h c l as s if ic at i o ns r a n gi n g fr om
" pas s i o na te ex p er ts " t o " v a lu e - c o ns c i o us f a m ily v ac a t io n ers ." T h e c or p or at i on t h en
s en ds o ut v id e o s n ip p ets t o e ac h p ar t i n or der t o e nt ic e m or e pe op l e t o v is it i ts
res o rts .

B ec a us e DS S s y s t e m s ar e foc us ed o n as s i s ti n g us ers in m ak i ng b et ter b us i nes s

dec is i ons , t hey a r e s o me t i mes r e f err ed t o as b us in es s i n te l l i ge nc e s y s te ms .

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E xe cut iv e Supp ort Sy st e m s

Ex ec u t iv e s u pp or t s y s te ms ( E S S) as s is t s en i or m a na g ers i n m ak i n g d ec is io ns . T he

si
s tra te g ic l ev e l of t he or g a n is a t io n is s erv e d by ES S . B ec aus e t he re is n o a gr ee d -
up o n t ec hn i q ue f or a r r iv in g at a s o l ut i on , t hey h a nd l e no n - r ou t in e d ec is i ons t ha t
req u ir e j ud g e me nt , a p pr a is a l, an d i ns ig h t.
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Ex t er n al ev e nts , l ik e as ne w t ax r e gu l at i o n s or c o mp et i to rs , ar e i nc or p ora t ed i n to
E S S, bu t t hey a ls o p u ll s um m ar y d a ta fr o m i nt er n al MI S an d DS S . Th ey f i lt er ,
c om pr es s , a n d t r ac k i mp or ta n t d a ta , d is p l a y i ng o n ly t h e i nf or ma t i o n t ha t ma tt ers
mos t t o s e n ior ex ec u t iv es . F or ex am p l e, t h e C EO o f L e in er H e al th Pro d uc ts , t he
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na t io n's la r g es t pr iv a t e - la b e l v it a m in an d s up p l em e nt ma n uf ac t ur er, has an E S S

th at g iv es h i m a r e a l - t i me v ie w of t h e c o m pa ny 's f i na nc i al p erf or m anc e as
me as ur ed by w or k in g c a p it a l, ac c ou n ts r ec e iv a b le , ac c ou nts p ay ab l e, c as h f lo w,
an d i nv en t or y o n h is d es k t o p.
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E S S us es c u tt i ng - e d g e gr a p h ic s t o ols t o pr es e n t gr a p hs a n d da ta fro m a v ar i ety of

s ourc es . T h e in f or m a t i on is fr e qu e nt ly s u pp l ie d t o s en i or ex ec u ti v es v i a a p or ta l ,
wh ic h pr es en ts in t egr at e d t ai l or ed b us in es s c on te n t fr o m a r an g e of s ourc es v i a a
W eb i n ter f ac e . U n l ik e ot h er ty p es of i nf or m a ti o n s y s t e ms , E S S ar e n't b u i lt w it h th e
go a l of s o lv in g a s p ec if ic pr ob l em in m i nd . E S S, o n t h e ot h er ha n d, g iv e a
ge n er al is e d c o mp u ta t i on an d c om m un ic at i o ns c a pa b i l ity t h at ma y b e a p p l ie d t o a
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wi d e r a ng e of is s u es . E S S ar e l es s l ik e ly t o ut i l is e a n a ly t ic a l mo de ls , des p it e t he
fac t th at ma ny D S S ar e s u pp os ed t o b e ex t r em e ly a n aly t ic a l .

Th e f ol l ow i n g ar e s o me of th e q u es t i on s th at E S S c a n h e l p w i th : W h at k i nd of
bus i n es s s h o u ld w e b e in ? W h at ar e y o ur r i v a ls u p to ? W h at fres h p urc h as es mi g ht
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s h ie l d us fr om c om p a ny c y c l ic al s w i n gs ? W h ic h as s e ts s ho u l d we s e l l i n or d er to
ra is e f un ds f or ac qu is i ti o ns ? A m o de l of a n E S S is s h o wn i n F i gu r e 2 - 8 . I t c ons is ts
of work s t at i ons wi t h me n us , i nt er ac t iv e gr a ph ic s , a n d c o m mu n ic a ti o ns c a p ab i l it i es
for ac c es s in g h is tor ic a l an d c o mp e ti t iv e d a ta fr o m in t ern a l c or po rat e s y s te ms a n d
)A

ex t er na l d a ta b as es l ik e D ow J o n es N ews /R e tri ev a l a nd St a nd ar d & Po or's . B ec aus e

E S S ar e i nt en d ed f or us e by s e n i or ex ec u tiv es w h o m ay hav e l it t le or no d irec t
ex p er tis e w i th c o m p ut er - bas e d i nf or ma t io n s y s te ms , t h ey i nc lu d e s i m p le gra p h ic
i nt erf ac es .
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A ty pic a l ex ec ut iv e s u pp or t s y s te m is de p ic t ed in F IG

Th is s y s t e m ga t her s da t a fr o m a v ari e ty of i nt er n al a n d ex t er na l s o urc es a n d

pres e nts it t o ex ec u t iv es i n a n eas y - t o- u n d er s ta n d for m at .
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Re lat ion sh ip of S y st e ms t o O n e Anoth e r

Th e re l at i o ns h i p be tw ee n th e s y s te ms s erv i ng d if f ere n t lev e ls of t he or g an is at i o n i s

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de p ic t e d i n Fi g . T P S a r e us ua l ly a k ey da t a s ourc e f or o th er s y s t e ms , w h ere as E SS
are l ar ge ly d at a r ec e i v er s fr o m lo wer - l ev e l s y s te ms . O t her ty pes of s y s te ms may
a ls o c o mm u n ic a te w it h o n e a n ot h er. Da ta c an a ls o b e s har e d a m on g s y s te ms t h at
s erv e v ar i ous f u nc t i o n a l ar eas . An ord er c a pt ur ed by a s al es s y s t em , f or ex a mp l e ,
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c ou l d be s e nt as a tr a ns ac t io n to a m an u fac tur i ng s y s t e m f or pr od uc t i on or d e liv ery

of t h e g oo ds i n d ic a t ed i n t h e or der , or t o a ma n ag e m en t i nf or m at i on s y s t e m (M I S)
for f i na nc i a l r ep or t in g .
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1. 1. 7 S y st em Mo de l s
 S ch em ati c Mo de ls
• A s c h em a tic mo d e l is a tw o - d im e ns io n a l d i agr a m th a t de p ic t s s y s t em

e
e le m en ts a nd t h e ir c o nn ec ti o ns .
• In for m at i o n f l ow , m at e r i al f l ow , a nd i n for m at i on f e ed b ac k are a l l re pres e nt e d
by d if fer e nt a r r o ws .

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Flow Sy st em M od el s
• Th e or d er ly f l ow o f m at er ia l , e ner gy , an d i n for m at i on t h at h o l ds t he s y s t e m
to g et her is d ep ic te d i n a f l ow s y s t e m m od e l.

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• For ex a mp l e, t h e Pr o g r a m Ev al u at i o n an d R ev ie w T ec h ni q ue ( P ER T) is us ed
to a bs tr ac t a r e a l - w or l d s y s te m i n to a mo d e l.

St ati c S y st e m Mo de l s

• Th ey d e pic t a s i n gl e pa ir of r e l at i ons h i ps , s uc h as ac t iv ity –t i m e or c os t –

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qu a nt i ty .
• Th e G a nt t c h ar t, f or ex a m p le , d e pic ts t h e ac t iv ity - t im e r el a ti o n s h ip i n a
s ta t ic ma n ne r .
Dyn a mi c S y st e m Mod el s

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O rg an iz at i o ns i n th e b us in es s w or ld ar e dy n am ic s y s t e ms . T he s o r t of or g an is at i o n
er
or a pp l ic at i on t h at a n a ly s ts de a l w it h is a p pr ox im at e d by a dy n am i c m o de l .

It d e pic ts t he s y s t e m's c ur r e nt s t at e , wh ic h i s a l way s c h a ng i n g. I t i s m a de u p o f

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• E nt er in g t he s y s t e m's i np uts
• Th e dev ic e t ha t a l lo ws m et a m orp h os is to t ak e p lac e .
• Th e pr ogr a m( s ) n ee d e d to proc es s t he d a ta
• Th e it e m( s ) t ha t ar e pr od uc ed as a r es u lt o f t he proc es s i ng .
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Cat ego r ie s of Inf o r m at i on

Th ere are t hr ee ty p es of d a ta p er ta i n in g t o m an a ge ri a l l ev els an d t he dec is i ons

ma d e by m a na g er s .
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 St ra teg i c Inf o rm at ion
• Th is d at a is n ec es s ar y by t o p ma n ag e m en t f or l on g - te rm p l a nn i n g i n it i at iv es

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i n th e n ex t y e ar s . Tr e n ds i n r ev en u e, f i na nc i a l i nv es tm e nt , h um a n res o urc es ,
an d p o pu l at i o n i nc r e as e, f or ex a mp l e.

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• W it h t he he l p of a Dec is io n S u p por t Sy s te m , th is ty pe of i n for m at i o n c a n be
ob t ai n ed ( DS S) .
Ma na ge r ia l Inf o rm at i on
• M id d l e ma n ag e m en t r e qu ir es t h is ty p e o f da t a for s hor t a nd in t erm ed i at e -

On
ter m p l an n i ng , wh ic h i s m e as ur e d i n m on t hs . S a l es an a ly s is , c as h f l ow
proj ec t i o ns , a n d a nn u a l fi n anc i a l s ta t em e nts ar e j us t a fe w ex am p l es .

• It is ac c o m pl is h ed t hr o ug h t he us e o f M a na g em e nt I nf or m at i on Sy s te ms
(MI S)

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O pe r atio na l inf o r mat i on
• Lo w m an a g em e nt r e q u ir es th is i n for m at i o n fo r d a i ly a nd s h or t - t er m p la n ni n g
i n or d er t o e nf or c e d a y - to- d ay o per a ti o na l a c ti o ns . Ke e p in g tr ac k of
em p l oy e e a tt e nd a nc e , ov er d u e purc h as e ord ers , a n d c urr e nt s t oc k l ev e ls , for
ex a m p le .

si
• Da ta Pr oc es s i ng Sy s t e ms ar e us ed t o d o th is (D P S) .
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1. 1. 8 C ate go ri e s of i n f or mat ion

Fur th er C at e gor iz ed a s :
• Formal Information Systems (FIS) are in charge of the flow of data from upper management
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to lower management. Lower authority, on the other hand, might provide feedback to top
management.
• Informal Information Systems: Informal information systems are built on employees. These
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are designed to address difficulties that arise in the workplace on a regular basis.
• Computer-Based Information Systems (CBIS): These systems rely on computers to manage
business applications.
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Info rm at ion s y st e ms ( IS )
Data is captured and managed in businesses in order to provide meaningful information that benefits
the organization's employees, customers, suppliers, and partners. Many businesses believe that
information systems are critical to their capacity to compete and obtain a competitive advantage. Most

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businesses have realised that employees must be involved in the development of information
systems.

1. Tra ns ac t io n pr oc es s in g s y s te ms (T P Ss )

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2. Ma n ag e m en t In f or m a ti on s y s t e ms ( M I Ss )
3. D ec is i o n s u pp or t s y s t ems ( DS Ss )
4. Ex ec u t iv e in f or m a ti o n s y s te m (E I S)
5. Ex per t s y s t ems
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6. Co m mu n ic at i ons an d c o ll a bo ra t io n s y s t em

A ut o ma t io n s y s t ems
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• O rd er s , c r e d it c ar ds , pay m en ts , a n d r e s er' l at l ons ar e a l l proc es s ed us i n g

tra ns ac t i on pr oc es s i ng s y s t ems (T P Ss ) .
• Tra ns ac t io n d at a is us e d by m an a ge m en t i nf or ma t io n s y s te ms (M ISs ) t o
ge n er at e i nf or ma t io n t ha t m an a g ers ne e d to run t h e ir b us i n es s es .
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• DS Ss ( d ec is i o n s u p por t s y s t e ms ) as s is t v ari o us d ec is io n mak ers i n

i de nt i fy in g a nd s e lec t i ng op t io ns or d ec is io n s .
• Ex ec u t iv e i nf or m at i on s y s t e ms ( EI S) ar e des i g ne d t o m ee t t h e s p ec if ic
i nf or ma t io n r e q ui r e m e nts o f ex ec ut iv es w ho pl a n f or th e f ut u re of th e
c om p any an d ev a lu a te p er f or m anc e a g ai ns t t hos e o b j ec t iv es .
• Ex per t s y s te ms c a pt ur e an d r ec r e at e a n ex p ert pr o b le m s o lv er's o r d ec is i o n
mak er 's k no w le d ge , a nd t h en s im u l at e t ha t ex p er t's " th i nk i ng ."
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• In ter n a l a n d ex t er na l c om m u nic a ti o n an d c o op er at i o n ar e i mp rov e d w i th t he

us e of a c o m m un ic at i o ns a nd c o l l ab or at i o n s y s te m.
• Fi na l ly , of f ic e a u to m at i on t ec hn o l og i es as s is t em p loy e es i n c r ea t in g a n d
s har i n g d oc u m en ts th a t ar e nec es s ary fo r da y - to- d ay of f ic e op er at i ons .
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Impo rt ant In f o rm at i o n Sy st em Co nc ept s

Sy s t e ms a na ly s ts n ee d to k no w s ev era l o t he r i m p ort an t s y s t ems c o nc e p ts :

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1. Dec o mp os it i o n
2. Mo d u lar i ty
3. Co u pl i n g
4. Co h es i o n

Th e proc es s o f br eak i ng d o wn a s y s t e m i nt o its s ma l l er c o mp o ne nts is k no wn as

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dec o mp os i ti o n. T h es e c om p on e nts m ay c o n s ti t ut e s y s t e ms (s u bs y s te ms ) i n a n d o f
th e ms e lv es , a n d t h ey c an b e s p l it d ow n f ur t her . Dec o mp os i ng a s y s te m a ls o a l l ows
us t o f oc us on a s i ng l e c o m p on e nt of t he s y s te m, m ak in g i t e as i er t o c onc e iv e o f
 way s t o i mpr ov e th at c o m po n en t wi t ho u t a ff ec ti n g th e r es t of t h e s y s t e m.
Dec o mp os it i o n is a t ec hn i q ue t h at a l l ows a s y s te ms a na ly s t to do t he f o l lo w in g :

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1. Bre ak a s y s t e m do w n i nt o s m a l l, m a na g ea b le , a nd u n de rs t oo d s ubs y s t ems .

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2. C o nc e ntr a te y our a tt e nt i on o n o n e a rea (s ubs y s t em) at a t im e, fr e e o f
d is tr ac t i o ns fr om o th e r r eg i o ns . Co nc en tr at e o n t h e p ar ts o f t h e s y s t e m t h at a r e
re lev a nt t o a s p ec if ic gr o u p of us ers , r a th er th a n d is tr ac t i n g th e m wi t h irr e lev a nt .

3. B u i ld di ff er en t e l em en ts of t h e s y s t e m at d if fer e nt t i mes a n d wi t h th e as s is t a nc e

On
of v ar i o us a na ly s ts .

Dec o mp os it i o n is a d ir ec t e ff ec t of m o du l ar it y . I t r e fers t o t he div i s i on o f a s y s t em

i nt o p i ec es o r m o du l e s of a c o ns is t en t s iz e . M od u les c a n r ep res e nt a s y s te m i n a
s i mp l e way , m ak i n g it e as ier t o c o mpr e he n d an d r e des i g n. E ac h of t h e s ep ar at e
s ubs y s t em m od u l es f or th e M P3 p l ay er, for ex a mp l e, d em o ns tr a tes h ow
dec o mp os i ti o n s i m pl i f i es u nd er s t a n di n g of t h e ov era l l s y s t em .

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Co u pl i n g T h is i n d ic a te s t ha t s u bs y s t e ms ar e i n ter d ep e nd e nt . S u bs y s te ms m us t be
as s e lf - c o nt a i ne d as pos s i b le . I f o ne s ubs y s te m f a il s a nd ot he r s u bs y s te ms ar e
he av i ly r e li a nt o n it , th e ot h er s w i l l e i t h er f a i l or hav e d if fic u lty o per at i n g. A

si
ha n dh e l d M P3 p lay er 's c o m po n en ts ar e t ig ht l y c o n nec te d .

Th e c o ntr o l s y s t e m, w h ic h is ma d e u p o f t h e pr i nt e d c i rc u i t b oa rd an d its c h ips , is

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th e b es t ex am p l e. Th e b oar d a nd c h i ps e na b l e ev ery o p era t io n t ha t t h e M P3 p l ay er
may ac c o m pl is h. R at her o f at t em p ti n g to is ol a te a n d s olv e t he pr ob l e m on t h e
bo ar d, a f a i lu r e i n o ne p or t i on o f t he c ir c u it bo ar d w o u ld ty p i c a lly l e ad to t he
rep l ac em e nt o f t h e e n tir e b oar d . Al t ho u gh i t is pos s i b l e t o r ep a ir a c irc u i t bo ar d in
an M P3 pl ay er , it is us u a l ly n ot c os t - ef fec tiv e ; th e c os t of l ab o ur t o i de nt i fy a nd
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re me dy th e pr ob l e m may b e gr ea t er t h an th e v a l ue o f t h e c ir c u it b oar d i ts e l f.
B ec a us e t h e s ubs y s t e ms , s uc h as th e s p eak ers , a m p li f ier , r ec e iv er , a n d CD p l ay er ,
are p hy s ic a l ly s e p ar a te a nd o per a te i nd e p en d en t ly , th e c o mp o n en ts in a ho m e
au d i o s y s t em ar e l o o s e ly c o nn ec te d. O n ly th e a m p l if i er i n a h o me s te re o s y s t e m
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has t o b e f ix e d i f i t fa i l s .

Coh es ion

Cohesion Is the amount to which a subsystem carries out a single task? Providing electricity is a
single function in the MP3 player example. This quick overview of systems should help you better
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understand computer-based information systems and how they are constructed. Many of the same
ideas apply to information systems as they do to systems in general. In the next section, we'll look at
how the process of developing information systems has evolved over time, as well as the
technologies that have aided it.
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Check Your Understanding

A. Fill in the Blanks:

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1. …… … …… … … is a s er v ic e pr ov i d er to t h e a p p lic a ti o n pr ogr a ms .
2. To ac c es s th e s er v ic e s o f th e o p era t in g s y s t em , t he in te rf ac e is pr ov id e d by th e
…… … …… … …
3. O p era t in g s y s t em pl ac ed in …… …. . m e mory .
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4. If a process fails, most operating system write the error information to a .............
5. .................is not a real time operating system?
 True/False

1) Th e m ai n f unc t io n o f t he c om m an d i n ter pr et er is t o pr ov id e t he in t erf ac e

e
be tw e en t h e A P I an d a pp l ic at i on pro gr a m
2) In O per at i n g Sy s te m s , pr i or ity is a C P U s c h ed u l in g a l g ori t hms

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3) CP U s c h e du l i ng is th e b as is of mu l ti pr o gra m m in g o p era t in g s y s t em s
4) K ern e l is t h e pr ogr a m th at c ons t it ut es t he c e ntr a l c or e of t h e o per a ti n g s y s te m
5) P ow er f ai l ur ew i l l b e h an d l e by th e o p era t in g s y s t em

On
Su mm ar y

• Pr ob l e ms ar e s o lv e d t hr o u g h t h e us e of s y s t ems . Th e s y s t ems ap p roac h c a n b e

th o ug ht of as a s y s t e m at ic a p pro ac h to s olv i n g a n is s ue . In t o day 's fas t - p ac ed
env ir o nm e nt , th e s u bj ec t Sy s t e m A na ly s is a nd D es i gn ( S AD) f oc us es o n
s of tw ar e dev e l op m e nt.

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• Tec hn o l ogy im pr ov e m en ts o n a r e g ul ar b as i s g iv e or ga n is at i ons w it h
op p ort u n ity t o i nc or p or at e t he m os t up - t o- da t e k n ow l ed g e i nt o t he ir d a i ly
op er at i o ns . Th e us e o f s y s t em an a ly s is a nd des i g n to a d dr es s i nt e rna l
pro b l ems , i nc r eas e e ff ic ie nc y , an d ex te n d pr os p ec ts has a d irec t i mp ac t on a

si
c om p any 's b ot to m l i n e . As a r es u lt , w ei g h in g t he be n ef its is a w ort hy e nd e av o ur
for b us i nes s ow ner s a nd ma n ag ers .

• A s y s te m is a n i nt e r c on n ec t e d s et of b us i n es s op er at i ons (o r c o mp o ne n ts ) t h at
er
fu nc t i o n t o ge th er fo r a s pec i f ic g o a l w i th i n a s i ng l e bus i n es s u n it . In th e p ay ro l l
de p art m en t, for ex a m p l e, a s y s t e m k e e ps tra c k o f c h ec k s , w h er eas a n i nv en t ory
s y s te m k ee ps tr ac k of go o ds . T h e tw o s y s te ms ar e i nd e pe n de nt o f on e a n ot h er.
Th ere a r e n i ne c har ac ter is tic s t h at d ef i n e a s y s te m. Eac h a ttr i bu t e is ex p l ai n ed
i n d e pt h be l ow ; t h e s y s te m oc c urs i ns i de a bro a d er w or ld , or env i ron m e nt . T he
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s y s te m is s e p ar a t ed f r o m its s urr o u nd i ngs by a bo rd er . T h e s y s te m r ec e iv es

i np ut fr o m t he o u ts i d e w or ld , pr oc es s es i t, an d t he n re tu rns t h e ou tc om e t o its
s urr ou n di n gs .
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Act iv it y

Pr ep ar e a P P T on V ar i ous ty p es of s y s t e m .

Questions & Exercises

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1. De f in e t he I ntr o d uc t i o n a nd M e a ni n g of Sy s t em .
2. Dis c us s t he Sy s t e m Im por t anc e .
3. Ex pl a i n th e C har ac ter i s tic s of a Sy s t e m .
4. Dis c us s t he E le m en ts of a Sy s t e m .
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5. Dis c us s R o le o f s y s t e m / In f or m a ti o n s y s te m i n c r e at i ng ef fec t iv e or g an iz at i o n .
6. Ex pl a i n th e Ty p es o f S y s te ms
7. Ex pl a i n th e C at e gor i es o f i nf or ma t io n
)A

G lo ss a ry

• Comp on ent s: A n ir r e duc i b le p art or ag gr eg a ti o n o f par ts t h at mak es up a

s y s te m; als o c a l l ed a s ubs y s t em .

•
(c

Int er r el at ed co mpon ent s: De p e nd e nc e o f on e p art o f t h e s y s te m on o n e or

mo re o t her s y s t e m p ar ts .
 • Bound a r y: T h e l i n e th at mar k s th e ins i de a n d o uts i de of a s y s t em an d t h at s ets
of f th e s y s t em fr o m i ts e nv ir o n m en t.

e
• Pu rpo s e: Th e ov er al l go a l or f u nc t i on o f a s y s te m.

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• En vi ro nm ent : Ev er y th i ng ex t ern a l t o a s y s te m th a t i nt er ac ts w it h t he s y s t e m.

• Int erf a ce s: Po i nt of c on t ac t w h ere a s y s t e m m e ets its env ir o nm en t or wh er e

s ubs y s t ems me et eac h o th er .

On
• Con st ra int s: A li m i t t o wh a t a s y s te m c a n a c c om p l is h.

• Input: I n pu ts ar e t he i nf or ma t io n t ha t e nt ers i n to t h e s y s te m f or pr oc es s i n g.

• O utput : T he ma i n o bj ec t iv e of a s y s t em is t o g et a n o u t p ut wh ic h is he l pf u l f or
its us er . O u tp ut is th e fi n a l ou tc om e o f pr oc e s s i ng .

ty
Furt he r R ea din gs
• Ho w t o D o Sy s t e ms A na ly s is , J o h n E . G i b s on , W i ll i a m T. Sc h er er, W i l l ia m F .
G i bs o n , M ic h a e l C. S m it h
• Sy s t e ms A n aly s is an d Des i gn Pr in t ed Ac c es s C ard ), H arry J . R os e n b la tt

si
• Th e Sy s te ms T hi nk e r , A na ly t ic a l Sk i l ls : Lev e l U p Y o ur Dec i s i on Mak i ng ,
Pr ob l e m S o lv i n g, a n d De d uc t i on Sk il ls . No t ic e T h e De t ai ls O t h ers M is s .
er
Ans w e r s t o S elf - A ss e ss me nt Q ue st ion s

Fil l Up the B l an ks:

1. O p era t in g Sy s t em
iv

2. Sy s t e m c a l ls
3. l ow or h i g h
4. l og f i l e
Un

5. Palm OS

Tru e/ Fa l se :
1. Fa ls e
2. Tru e
3. Tru e
4. Tru e
5. Tru e
ity

Unit - 2 .1 R ol e o f S yst em
m

Le ar nin g O b j ect i ve s:

Afte r st ud yin g t h i s c hapt e r, y ou w il l be a ble to:

)A

• De f in e t he R o l e of s y s te m / i n for m at i o n s y s te m i n v a l u e ge n er at i on w i th i n
org a n iz a t io n a l l ev e l .
• Dis c us s t he A ut om a ti o n Sy s te m S tr uc t ur e i n bus i n es s pr oc es s .
• Ex pl a i n th e In t egr a t ed b us i nes s m o du l e s - ma n uf ac t ur i ng a n d s erv ic e
i nd us tr y .
•
(c

Dis c us s t he Tr a di t io n a l E R P Sy s te m .
• Dis c us s O n l i ne ER P S y s te m .
 Int rodu ct ion

e
Ma n go has a c or e of d es i gn er s a n d pr od uc ti o n fac i l i ti es c a pa b l e of r ap i d ly
pro d uc in g n ew f as h io n d es i g ns . M a n go , o n t he ot her ha n d, w o ul d n ot b e a b le t o
s toc k its s t or es w it h tr e ndy f as h io n tr en d s as r ap i d ly w it h ou t its s op h is t ic at e d

lin
i nf or ma t io n s y s t e ms . T o pr o mo te i nv e nt ory re p le n is hm e nt , t hes e in fo rm at i o n
s y s te ms as s is t f in e ly c a li br at e d b us in es s p r oc es s es t h at org a n is e it e ms d ep e nd i n g
on s ty l e a nd c us t o mer tas tes .

Y ou 'l l wa n t t o d is c ov er h o w i n for m at i on s y s te ms c an a id y o ur o rga n is at i on as a

On
ma n ag er . Yo u' l l n ee d to k n ow wh a t k in ds of i nf or ma t io n s y s te ms are av a i la b l e a n d
wh at t h ey c a n do f or f i r ms .

W e b eg i n by ex a m in i n g v ar i ous c las s i f ic a t io n m et h ods b as e d on t he org a n is a t io n a l

l ev e l , bus i nes s f u nc t i ons , an d b us in es s proc es s es th at in fo r ma t io n s y s t ems
s up p ort . En t er pr is e a pp l ic at i ons , w h ic h inc l ud e en te rpr is e s y s t e ms , s u pp ly c h ai n
ma n ag e m en t s y s t e ms , c us t om er r e la t io ns h ip ma n ag e me n t s y s t em s , a nd k no w l ed g e

ty
ma n ag e m en t s y s te ms , ar e n ex t br i ef ly d is c u s s ed . Th es e en t erpr is e ap ps c ov er t he
en t ire c or p or a t io n , i n t egr a ti n g da ta fr om m a ny f u nc t i ons a nd b us i n es s pr oc es s es t o
i mpr ov e ov er a l l p er for ma nc e.

si
Ma jo r Ty pe s of S y st e ms n O r gan iz atio ns

V ar ie d ty p es of s y s t ems ex is t i n an or g an is at i o n b ec aus e d i ff ere n t i n ter es ts ,

s pec i a lt i es , a n d l ev e ls ex is t . T h er e is n o s in g le s y s t e m t h at c a n p rov id e a l l of t he
er
i nf or ma t io n t h at a c o mp a ny r e q u ires . F i gur e 2 - 1 de p ic ts on e me th o d o f d ep ic t in g
th e ma ny ty p e s of s y s te ms f o un d i n a n or ga n is a t io n. Th e or ga n is a ti o n is s e p ara t ed
i nt o s tr at eg ic , m a na g em e nt , a nd o per at i o na l lev e ls i n t h e d i agr a m, an d t h en
fu nc t i o na l d iv is io ns s uc h as s a l es a nd m a rk et i ng , m an u fac tu ri n g an d pr o duc t io n,
iv

fi n anc e a nd ac c o un t i ng , an d h um a n r es o urc es ar e fu rt he r s e gm e nt e d. Th es e
v ar io us or g an is at i o na l i n ter es ts are s erv e d t hro u g h s y s t e ms (A n th ony , 1 96 5) .
Un
ity
m
)A
(c

Fi g: Ty pes of i n for m at i on s y s t e ms
 S al es a nd m ar k e t in g , ma n uf ac t ur i ng a n d pr od uc ti o n, f in a nc e a nd ac c o u nt i ng , an d
hu m an res o ur c es ar e t he f our b as ic f un c t i on a l c a te g or ies t ha t org a n is a t io ns c an b e

e
s ep ar at e d i n to at th e s tr a te g ic , m an a ge m e nt , an d o p er at i on a l lev e l s . E ac h o f t hes e
l ev e ls a n d fu nc t i o ns is s er v e d by i nf or m at i on s y s t ems .

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2. 1. 1 Ro le of s y st em / i nf o rm at i on s y ste m in v alu e ge ne r ati on w ithi n
org an iz at ion a l le v el

By de l iv er in g ac c ur a t e an d up - t o- d a te d at a an d pe rf or mi n g an a ly t ic ac t iv it i es ,

On
ma n ag e m en t i nf or m at i on s y s t e ms c a n as s is t y ou in mak i n g s o un d d ec is i o ns . Yo u
mus t e ns ur e t h at t h e ma n ag e m en t i nf or m at i on s y s t e m y o u s e l ec t i s c o m pa t ib l e w it h
th e in fo rm at i o n f or ma t s us e d in y o ur f ir m a n d i nc l ud es t h e c a p ab i l i ti es y ou r e qu ir e.
Th e b as ic da t a ac c e s s i bl e fr o m y o ur c om pa ny 's ac tiv i t ies a nd rec ords c a n be
s truc tu re d i n to r ep or ts by s u it a bl e ma n ag e m en t i n for m at i o n s y s te ms , prov i d in g y ou
wi t h d irec t io n f or y o ur dec is i ons .

Info rm at ion f r om Co mpa ny O p e rat ion s

ty
W he n y o u m ak e j u d g me n ts b as ed o n da t a fro m m an a ge m en t i nf o rm at i on s y s t ems ,
y ou 're r ef l ec t i n g i n for ma t io n f r o m y o ur c o mp a ny 's ac t iv it i es . Da ta c r ea t ed at th e
work i n g lev e l is o r g a ni s ed in t o us e f ul f or m at s by m a na g e me nt in f o rm at i on s y s t e ms .

si
S al es fi g ur es , ex p e n s es , i nv es t me nts , an d l a b our d at a a re c om m o nly s e en i n
ma n ag e m en t in fo r m at i on s y s te ms . M a na g e me n t i n for m at i on s y s t ems c a n pr ov i de
re li a b le s ta t is t ic s i f y ou ne e d t o k n ow h o w m uc h pr of i t y o ur f ir m h as m a de e ac h
y ear f or t h e pas t f iv e y ear s in or d er t o m ak e a d ec is i o n.
er
Cap ab il it y t o R un S c en ar io s
iv

A s i gn i fic a nt d ec is io n - mak i n g t o o l is t h e c a p ac ity to ru n s c en ar i os . T his f ea t ure is

i nc or p ora t ed i nt o c er t a i n m a na g e me nt i n for m at i on s y s t ems , wh i l e o th ers c an s u p ply
th e d at a ne e de d t o r un s c e nar i os i n ot he r p ro gr am m es , s uc h a s s p re a ds h e ets .
W ha t ha p p ens i f y ou m ak e a g iv e n dec is i on i n fl u enc es y o ur d ec is i o n. Wh at - i f
Un

s c en ar i os d em o ns tr at e h ow s ev er a l v ar i ab l es c h a ng e as a r es u l t of a d ec is i o n.

Y ou c a n e nt er l ow er s t a ff l ev e ls or h i g h er pr o m ot i on b ud g ets t o ex a m i ne h ow
d if fer e nt de gr ees of c ut b ac k s or inc r e as es af fec t re v e nu e , ex pe n d it ures , a n d pr of i t.
Ma n ag e m en t i n for m at i on s y s te ms ( MI S) s y s t ems ar e es s en t i al for c rea t in g r ea l is tic
s c en ar i os .
ity

P roj e cti on s t o A s si st in D e ci sio n M ak ing

A ny ac ti o ns y o u mak e a ff ec t t he c o mp a ny 's pre d ic t e d res u lts a nd may n ec es s i ta te

rev is i o n s t o y o ur b us i nes s p la n a n d u l ti m at e g o als . Tr en d a n a ly s is is e it h er b u i lt
i nt o m an a ge m en t i nf or ma t io n s y s t ems or c a n s up p ly i nf or m at i on t ha t a l lo ws y o u t o
m

do s o. A l l f un d a me nt a l o p er a t in g r es u lts a re proj ec t e d i n m os t c o m pa ny s tr at e g ies .

A tr en d a na ly s is e n ab l es y ou t o d e mo ns tr a te w ha t th es e ou tc om es w ou l d b e in t h e
c urr en t c irc u ms t anc es a n d ho w t hey w i l l c h an g e o nc e t h e d ec is i ons y ou 'v e m a d e
)A

hav e be e n ex ec ut e d. Th e n ew i d ea ls wi l l s erv e as th e f o un d at i o n f or y our fu t ure

s tra te g ic a p pr o ac h.

Imp le me nt a t io n and E va lu at i on
Y ou mus t tr ac k c om p a ny r es ul ts t o ens ur e t h ey ev olv e as a n tic i p at ed , ev en if y o u
mak e d ec is io ns w it h p ar t ic u lar go a ls i n m i nd a n d hav e d oc um e nt at i on fr o m
(c

ma n ag e m en t i nf or m at i on s y s t e ms a nd tr e nd an a ly s is to bac k u p y o ur ex pec ta t i ons .

Ma n ag e m en t i nf or m at i on s y s t e ms pr ov id e y o u w it h th e d at a y o u n e ed t o s e e i f y o ur
dec is i ons w er e s uc c es s fu l or if y o u n e ed t o mak e c h a ng es t o ac hi ev e y our
 obj ec t iv es . I f c er ta i n r es u l ts ar en 't m e et i ng ex p ec ta t io ns , y ou c a n ut i l is e
ma n ag e m en t i nf or m at i on s y s t e ms t o as s es s th e s i tu a ti o n a nd , i f ne c es s ary , t ak e

e
ex tr a m e as ur es .

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2. 1. 2 Aut om at i on S y s t em St r uct ur e in bu s i ne ss p ro ce s s

B us i n es s Pr ac t ic e Au t om a ti o n ( B P A) is t h e proc es s of e m pl oy i ng tec h no l ogy a n d

ot h er m et h ods to h el p b us in es s es ru n mo re s m o ot h ly , an d it i s t h e s u bj ec t o f

On
to d ay 's gu i de . W e' l l l o ok a t t h e v a ri o us as p e c ts o f B PA , as w e l l as th e in f lu e nc e i t
has on bus i nes s es , a s w e ll as h ow i t m ay b e a pp l i e d an d t h e us u a l t oo ls o f t he
tra d e.

Th is h as ev o lv e d i nt o a v er y s op h is t ic at e d pr oc es s , bu t t h e c onc e pt was f irs t

c onc e iv ed in 1 9 13 w h en H e nr y F or d d ev is e d a m et ho d t o m ore e f fec t iv e ly b u i ld h is
au t om o b il es . Wi t h t h e a dv an c e m en t of t ec h n o lo gy , w ha t be g an as a mov i n g
as s e m b ly l i ne i n pr o d uc t i on has n ow ev o lv ed ev e n mor e . B P A i s n o w a s t a nd ar d

ty
par t of t he ins tr um e n ts us e d to c o nt i n uo u s ly i mpr ov e en t erp ris es , fr om ro b ot ic
pro d uc t i o n to ar t if ic i a l i nt e ll i g enc e.

Th e B as ic s of Bus i n es s P r oc es s A ut o m at i on

si
" A pr oc es s of ma n a g in g i nf or m at i on , d at a, a n d pr oc es s es t o d ec r eas e c os ts ,
res o urc es , an d i nv es t me n t," ac c or d in g t o B us in es s Pr oc es s A ut o ma t io n .
er
B us i n es s Pr oc es s A u to m at i on , or B P A, is i n te n de d t o m ak e b us in es s es m ore
ef f ic i e nt a n d to as s is t o r g a nis a t io ns m a in ta i n l o ng - t erm ef f ic ie nc y . Cer ta i n
ac t iv it i es ar e a ut o m at e d us i n g a r a n ge of t ec h n ol o g y - bas e d s o l ut i o ns , m os t
iv

c om m o nly s of tw ar e a p p lic a ti o ns , s o t ha t f ew er res o urc es ar e c o m m it te d t o mak i ng

th es e th i ngs ha p pe n m an u a lly .

Ac c ord i n g t o a r es ea r c h by V en tur e B e at , B P A c a n he l p f ir ms s av e up t o 40 0
Un

perc e nt of t he ir c os ts . It w as th e f as t es t - gr ow i ng s of tw ar e c at e g ory i n t he f o ur t h
qu ar ter of 2 01 9, a nd i t w i ll c o nt i nu e t o ex p a nd as it bec o mes m or e w i de ly ad o pt e d
ac ros s in d us tr i es .

B us i n es s pr oc es s a ut o ma t io n is b as ed on thr e e f un d am en t al pr i nc i p l es .
O rc h es tr at i o n is t he f ir s t of t h es e . B ec aus e of t h e w ay a B P A s y s te m is s et u p ,
fir ms w i l l b e a b le to c ons tr uc t ma ny c o nc u rre nt s y s t e ms to be tt er m a na g e th e ir
ity

c om p ut er i n fr as tr uc t ur e.

A no th er o f t h es e i d ea s is i nt e gr a t io n . Wh e n al l o f t h es e p arts a re s i mp l if i e d in t o
on e s y s t e m, t h ey c a n wor k t o ge t her for be tt er e ff ic ie nc y a n d s y n e rgy w he n i t c o m es
to ac h i ev i n g fu t ur e c or por a te o bj ec t iv es .
m

Fi na l ly , th er e's a u to m at e d ex ec u ti o n, w h ic h is , af ter al l , w ha t i t's a ll ab o ut . Hu m a n

en g ag e m en t is mi n i m i s ed as m uc h as p os s i b le w h en ex ec u ti o n is a u to m at ed . T his
s av es m on ey by r e d u c i ng th e n u m ber of r es o urc es re q u ire d an d t he n um b er o f
)A

tas k s t h at s t af f m us t a c c om p l is h.

B us i n es s pr oc es s a ut om a ti o n s y s t ems are c om p l ic at ed in an d o f t he ms e lv es , b ut
th ey a i m t o dr as t ic al ly s i m p l ify h o w a c o m pa ny o per a tes . B P A s y s t ems en a b l e y ou
to c o or d in a te a s tr a t egy , i nt e gr at e a l l o f y our bus i n es s pr oc es s es , a n d ex ec u t e
(c

i mp or ta nt t as k s a ut o m at ic a lly .

Th e g o al o f B P A is to ma i nt a i n y o ur c o mp ut i ng i nfr as truc t ure c l e a n a n d or g an is e d.

Th is mak es ev er y t h in g m or e tr a ns p ar en t, a n d it m ak es it e as ier f or v i ta l i nf or m at i on
 to b e tra ns m it te d a nd us ed by ev ery on e w ho n e eds it w it h in a c orp or at i o n. To
c rea t e s i m p lic i ty a n d tr a ns par e nc y , a ll b us i nes s pr oc es s es t h at f it i nt o s p ec if i e d

e
box es ar e c o ns ol i d at e d as m uc h as p os s i b l e .

Fi na l ly , as pr ev io us ly s ta te d , t he g oa l of b u s i nes s pr oc es s a ut o m at i on is to r e duc e

lin
hu m an en g ag e m en t. Dev ot i n g i mp or ta n t p ers o n n el r es o urc es , mo n ey , a n d o th er
res o urc es t o o p er at i o ns t ha t m ay be a ut o ma t ed wi l l s wi ft ly de p l et e a c om p a ny 's
res o urc es a nd br in g i t do w n i n th e l o ng r u n .

Th es e s y s t e ms pr ov i d e nu m er ous a dv an ta g es f or b us in es s es , a n d it is c r it ic a l t o

On
dev e l op th e m as q u ic k ly as p os s ib l e in or d er t o max i m is e a c o m pa ny 's p ot e nt i al .
Th e m aj ori ty of t h es e s y s te ms ar e m ad e up of thr e e pr i m ary c o m p on e nts , w h ic h w e
wi l l g o t hro u gh in t h e nex t p ar t .

Wh at a r e t h e El em ent s o f Bus in e ss Pr oc e s s Auto mat ion ?

ty
W he n y o u lo ok a t t h e t hr e e es s e nt i a l " bu i ld i n g bl oc k s " of a b us in es s pr oc es s
au t om at i o n s y s te m t h at y o u j us t r e ad a b o u t, t her e ar e s o m e is s ues t h at t h ey ar e
des i g ne d t o a d dr es s , j u s t l ik e any ot h er s y s t em th at is in tro d uc ed to he l p i nc r eas e
org a n is a t io n a l e ff ic i e nc y . Th e as p ec ts o f th e s t ra te gy th a t b us i nes s es ne e d t o

si
c rea t e to mak e t his ha pp e n w il l b e re f erre d t o as t he c h a l le n ge s t h at B PA s olv es .

B P A s y s t e ms c an b e q ui t e c o m p l ic a t e d , h ow ev er t h ey us u a l ly c ons is t of th re e
er
c om p on e nts . T he f ir s t o f t h es e f ac tors is b us in es s ru l es a n d l o g i c . B us in es s r ul es
are es s en t ia l ly t h e p o l ic ies th at a c om p any im p l em e nts ; h o wev er , t his is a m or e
for m a l um br e l la w or d th at e nc o mp as s es a ll of t hos e p o l ic i es . B us i nes s l o g ic is i n
l in e w it h th is s i nc e it is h ow p o lic i es ar e c o nv er t ed i n to pr oc es s e s , w h ic h a re t he
proc e d ures th a t m ov e a c o m pa ny to w ard i ts obj ec t iv es . Th is e le m e nt of th e s y s te m
iv

wi l l b e t h e b as e li n e t h at i nf or ms t h e r em a i n der o f t h e s y s t e m in b us in es s proc es s
au t om at i o n.
Un

Th e r e as o n i ng w i l l b e de f in e d by t h e r u l es , a nd mos t o f t he lo g ic c an be au t om a te d.
Ev en p ar ti a l a ut o ma t i on c a n h e lp t o r e duc e hu m a n erro r an d k e ep t h in gs m ov in g
a lo n g s m oo th ly .

Th en th er e's s tr uc tur ed d at a. Da t a is a v a lu a bl e as s e t f or y ou r c om p any , a n d

s truc tu re d d at a is o n e of t h e ty p es o f da t a th at w i l l b e r ef err e d to t he mos t.
ity

Th is is th e ty pe o f da t a t h at a na ly t ic s u s es t o as s is t in fo rm fu t ure b us i nes s
proc es s es a n d as s es s p er for m a nc e . B P A pl ans of te n c o n ta i n pr o c es s e s th at he l p
ex p e d it e t he c o l lec t io n a n d i n te gr at i on of th i s d a ta i nt o us a bl e an d s uc c i nc t r e por ts
s o th a t it may b e e ff ic i en t ly us ed .
m

Uns truc t ure d d at a is l ik ew is e c ov er e d by B P A s y s te ms . Uns truc t ure d d at a is b es t

th o ug ht o f as " a ny t h in g e ls e" t ha t is n't s tr u c tur e d. R ev ie ws , s oc i a l me d i a, e ma i ls ,
an d ne ws le tt er s ar e e x am p l es o f t h is ty pe o f c o nt e nt , w h ic h is of t en tex t - bas e d b u t
c an a ls o i nc or por a te ph o tos , f i l es , an d o th er el e m en ts . A s uc c es s f u l b us i nes s
)A

proc es s a u to m at i on pr o gr a mm e w i l l s e am l es s ly in t egr a te t h es e thr e e as pec ts ,

a ll o wi n g t h e m t o wor k i nd e pe n de n tly w h i le s ti l l pr ov i d i ng a c o m pr eh e ns iv e v i ew o f
eac h .

Wh at a r e t h e B en ef it s o f Bus in e ss Pr oc e s s Auto mat ion ?

(c

W he n fac e d w i th th e t as k o f c ons tr uc t i ng a s y s te m t h at is p l ai n ly c om p l ex , i t c a n be
d if fic u lt to s ee th e v a lu e i n inv es ti n g i n o n e w it h ou t k n o wi n g w ha t t he en d
 ou tc om es w i l l b e. S o, le t's t ak e a lo ok a t a f e w o f B P A's m os t i m por t an t
adv a nt a ges .

e
Inc r e as e d pr o d uc t iv ity is t h e m os t ev i de n t be n ef i t. W he n y ou a u to m at e b us i nes s
proc es s es a nd w or k f l ows , t h e a mo u nt o f t i me i t t ak es t o e x ec u t e ac t iv it i es

lin
dec r e as es dr a ma t ic a l l y . Wh e n y o ur work f orc e is n o l on g er r eq u ir e d f or c ert a i n j o bs
th at hav e be e n a ut o ma t ed , y o u c a n be tt e r ma n ag e y o ur r es o ur c es . T h e t im e of
th os e p e o pl e c a n no w b e s pe nt o n ac t iv i ti e s th a t w i l l i nc re as e r e v en u e an d dr iv e
i nn ov at i on in t h e or g a n is a t io n. T hey ' ll als o hav e m or e ti m e t o f o c us on c us t o mer
s erv ic e .

On
As a res u lt , i m pr ov e d c us t o m er s erv ic e wi l l b e a p ri m ary b e ne f it o f b us in es s
proc es s a ut o m at i on . C us t o mer s w i l l b e ne f it fr o m i nc re as ed ac c ur ac y an d
c ons is te nc y s i nc e th e w or k f or c e wi l l h av e mo re t i me t o d ev o t e to t hes e g o als .
Fur th er mor e , B P A l o wer s th e pos s i b i li ty of hu m a n m is tak e a c ros s t h e w ho l e
c orp or at e s t r uc tur e . T he a ut o ma te d ac t i ons wi l l be pe rf or me d e x ac tly th e s am e w ay
ev ery t i m e, w i th n o o p por t un i ty for erro r.

ty
As a r es u lt , t h e c us t o me r s w h o r e ly on y o ur b us in es s w il l n o t s uf f er as a r es ul t of
th es e er r or s , a n d y o u wi l l n ot be ar t he c os t of c or rec t in g t he m .

si
Re d uc e d ex pe ns es , t i me s pe nt on d u ti es , c us t o mer ha p pi n es s , an d o th er f ac t ors
wi l l a l l c o ntr i b ut e to i mp r ov e d op er at i o na l e ff ic ie nc y i n t he lo n g r u n.
er
A no th er a dv an t ag e o f bus i n es s pr oc es s a u to ma t io n is t h at it im pr o v es tra ns pa re nc y
thr o ug h ou t th e or g a n is a t io n. Bec a us e a ut o ma te d s y s t ems gi v e a v is ua l a n d
s truc tu re d e nv ir on m e nt w h er e a l l o f t he pe o p le pa rt ic ip a ti n g i n a proj ec t c a n
ex a m i ne t h e s a me i nf or ma t io n a n d fo l l ow p rog res s , c o mm u n ic a t i on c an be m or e
s i mp l if i e d. . D et a ils m i gh t b e los t a nd i ns tru c ti o ns m is c o ns tru e d w he n as s i gn m en t s
iv

are g iv en m an u a l ly or c om m u nic a ti o n oc c ur s v i a p h on e c al ls a nd em a i ls . Th is wi l l
ha p pe n f ar les s f r e q ue n tly wh e n ev ery t h i ng is a ut o m at ed a nd h o us e d in on e
l oc a t io n, wh ic h w i l l h e l p k e ep ev e ry o n e o n t he s a me pa g e. I n for m at i on c a n b e k e pt
Un

up- t o- d a te a ut o m at ic a l ly , w it h t he as s ur anc e t h at ev ery on e w ho req u ir es ac c es s

has it . No on e o uts i d e of t h e pr oj ec t n ee d s t o b e k ep t u p - t o- da t e or i nv ol v e d i f i t
do es n ot af fec t th e ir d ay - t o- day r es p o ns ib i l it i es an d p er for m anc e .

Inc r e as i n g c o mm u n ic a ti o n t hr o ug h ou t y ou r c om p any in t h is w ay w i l l he l p it b ec o me
mo re c o l l a bor at iv e a n d e ns ur e t h at ev ery on e i nv o lv e d is o n t he s am e p a ge .I t a ls o
en a b les t h e p er s o n i n c har g e t o k ee p tr ac k o f wh er e ev ery o n e is a t a n d ens ur e t ha t
is s ues ar e a d dr es s e d as s o on as t h ey e mer g e.
ity

Th is me t ho d of c o r p or at e m an a ge m en t a ls o a ll o ws y ou t o mak e gr ea t er us e o f y our
me tr ic s . Yo u' l l h av e a b et t er u nd ers t a n di n g o f pr oc es s es as t h ey oc c ur, an d y o u
wo n' t h av e t o w ai t f or i nf or ma t io n t o b e c om mu n ic at e d t o y o u b ef o re i t c a n be us ed .
Me tr ic s ar e c r it ic a l f o r g u id i ng s tr at e g ies a nd ac h i ev i n g obj ec t iv es . Y o u c an g et
m

v a lu a bl e me tr ic s i nf or ma t io n fr o m t he pr oc e dur es y ou au to m at e t ha t y o u w o ul d n't
hav e g ot t en o t her w is e .
)A

B ey o n d t h is , t h er e ar e a s l ew o f ot he r a dv a n ta g es t o b us i n es s pr o c es s au to m at i o n,
bu t t his is o nly a tas te o f wh a t th is ty pe of s y s te m c a n d o for a c o mp a ny .

Cha ll en ge s of Bu sin e ss P roc e s s Auto mat i on

Th ere are v ar io us d i ff ic ul t ies i n a ut om a t in g c or p or at e pr oc es s e s . We be l i ev e t h at

(c

th e b e ne f it f ar o u tw e ig hs t he da n ger , b ut it is b e ne f ic ia l t o h av e a h o lis t ic p ic t ur e o f
s om e th i n g t h at c a n b e c om e s o i m po rt an t to a c om p a ny 's fu nc t i o n ov er t i m e. I n t h is
s ec t i on , w e' l l g o ov er t h e m aj or pr o bl e ms . Ma ny in d iv i du a ls re g a rd a ut o m at i on as
 th e w ay of t h e f ut ur e an d ar e a nx io us t o j u mp o n b o ard ; y et, t her e ar e ma ny ot h ers
wh o w an t to lo ok a t th e s i tu at i o n fro m a l l a n g les b e for e m ov in g f or war d.

e
It's c ruc i a l t o r e me m b er t h at b us in es s pr oc e s s a ut om a t io n do es n ot a lw ay s r e p lac e
ev ery o n e e n ga g ed . As th e s y s te m ma t ures a nd is c o m pl e te ly i nt e g rat e d t hr ou g ho u t

lin
a ll as pec ts of a f ir m, s om e it e ms w i l l ne e d t o be ev a lu at e d, ov ers e en , or m o n it or ed
on a r eg u l ar b as is .

W ork f l ows ar e o n e of th e m os t d i ff ic ul t is s u es to ov erc o me . B ef or e work f lo w s c a n

be a ut o ma t ed , t h ey m us t b e c o m p le t ely c o m pre h e nd e d fr o m t o p t o bo tt o m, a n d t h is

On
me a ns o n a s t e p - by - s te p b as is . Eac h s t a ge m us t be c l ear ly des c ri be d i n s uc h a
way t ha t it c a n be a u t om a te d s o th at t h e p r op er c o nd i t io ns w il l a l way s tr i gg er th e
ri gh t ac t i o ns . I f a c om p any do es n ot go i n to g re at de ta i l w h il e d ef i n i ng its
work f lo ws , t h e s y s te m may no t b e ab l e t o fu l l y a ut o ma t e pr oc es s es .

A no th er pr ob l e m t ha t bus i n es s es e nc o u nt er is g e tt i ng of f t h e gr o un d t o o q u ic k ly .
Do i ng to o muc h at onc e a n d f ul ly ov e rh a u l i n g ev ery p roc e dur e m ig ht be d if f ic u l t f or

ty
em p l oy e es a nd ma n a ger s . W h en a u to m at i ng a bus i nes s , y o u s ho u l d au t om at e
work f lo ws on e at a t i me or i n p has es t o e n s ure t h at ev ery as p ec t of t he s y s t e m is
th or ou g h ly ev a l ua te d . Inv es ti n g in a b us in e s s pr oc es s a ut o m at i o n t ec hn o l ogy c a n
be b e ne f ic i a l to a c o mp a ny or , i f no t us e d a ppr o pr ia te ly , c an q u ic k ly de p le t e b o th

si
pers o n ne l a n d r es our c es .

G o als ar e d if fic u lt t o ac h i ev e in a ny bus i ne s s s y s te m , b u t t h is is es p ec i al ly tr ue i n

er
th e c as e o f bus i n es s pr oc es s a ut o m at i on . G o als i n b us in es s m u s t b e d ef i ne d i n
ord er to trac k pr ogr es s a n d e ns ur e th a t t he p ro p er m e as ur es are c o ns ta n tly d on e;
th is e ns ure s t h at y o ur c o m pa ny 's k ey r es o u rc es ar e n ot w as t e d. B ec a us e y o u wi l l
hav e c l e ar v is ua l is at i ons o n pr o gres s a n d h ow i t is e n ha nc in g y o ur o per at i o na l
ef f ic i e nc y , tes t in g w or k fl o ws a nd tes t in g pro c es s es w il l as s is t les s en th e pro b l ems
iv

of d ev e lo p in g t h is s y s t e m ( or n ot) . T h os e me c ha n is ms c a n be mo d i fi e d i f it is n 't .

In a de q ua te s of tw ar e c an po t en t ia l ly l e ad to t he f a i l ure of a wh o le b us in es s pr oc es s
Un

au t om at i o n s t r a te gy . Th er e w i l l be a v ar i e ty o f s of tw ar e to o ls t ha t do d i ff er en t
th i ngs , a nd eac h b us in es s w il l h a v e i ts ow n s et o f r e qu ir e m en ts .

Mak i n g s ur e y o u fo l l o w t h e a p pr opr i at e m et ho ds fo r s e tt i n g g o a ls a nd m e as ur i n g
th e m, as w el l as k n o w i ng eac h w ork f lo w a t i ts m os t bas ic l ev e l , w i l l a i d y o ur t e am
i n d ec i d in g wh ic h s of t war e is b es t f or y ou . W h en s o ft war e d oes n't d o e no u gh , it
l im i ts th e ex te nt of a u to m at i on in y o ur c o m pa ny a n d mak es t he s y s te m f ee l m or e
ity

l ik e a bu rd e n th a n a b en e fi t.

Th ere are o t her is s u e s as s oc ia t ed w i th ov e rly s o ph is t ic a te d s o ft war e. W he n y o u

on ly n ee d a l i mi t ed s et of t o ols a n d s p e nd a l ot of m o ney o n s of tw ar e t h at d oes
th i ngs th a t ar e c o ns i d er a b ly mor e c om p l ex t ha n y our c o mp a ny 's n ee ds , t he s y s te m
c an b e ex p e ns iv e , d i ff ic ul t t o us e, an d a po or i nv es t me n t. Un ders t an d i ng y o ur
m

c om p any 's n ee ds is t h e m os t e ff ec t iv e s tr at e gy to ov erc o me t h is o b s ta c l e.

W h il e a ny s y s t e m t ha t is p ut w it h i n a c or p ora t io n h as h ur d les , bus i n es s pr oc es s

)A

au t om at i o n is a m a in ly pr of i ta b l e i nv es tm e nt . Th e k ey t ak e a way fr o m th is s h o u ld b e
th at au to m at i n g y ou r bus i n es s w il l p ay o ff h a nds o me ly if y o u mak e s ur e y o u'r e
do i n g ev ery t h in g y o u c an to mak e t h e m os t o f it , s uc h as i de nt i fy in g w ha t y o u n ee d ,
purc h as in g s of tw ar e to m ee t t h os e n ee ds , a n d tr ac k in g ho w i t's h e l p in g y our
c om p any ac h i ev e its o bj ec t iv es ov er t i me .
(c

Y ou c an 't j us t " s et an d f or ge t" wh e n i t c o m es t o b us in es s pr oc es s a ut o ma t io n. Lac k

of f ol l ow - u p o n t h e bu s i nes s pr oc es s au to m at i on p l a n t h at h as be en i m p le m e nt ed
m ig ht a ls o pr ov id e p r ob l e ms . F o l lo w - ups en a b le or ga n is a t i ons t o ad dr es s a ny
 is s ues th a t m ay oc c u r l at er in t he s o ft war e or s y s t em as a w h o le , as w e ll as
ens ur i ng th a t t he c or r ec t m etr ic s are b e in g us e d ac ros s t he b oa rd t o mak e B P A

e
work f or y o u.

Typ e s of B us in es s P r oc es s Aut om atio n

lin
No w t ha t y o u k no w h o w b us in es s pr oc es s a ut o ma t io n c a n he l p y o ur c o m pa ny , l et 's
l ook a t t h e ma ny f o r ms of b us in es s pr o c es s au to m at i o n. W h en i t c o mes t o
au t om at i o n, n ot ev e r y or g a n is a t io n w il l h av e t h e s a m e lev e l of d em a nd , an d eac h
ty p e m ay b e th e g r e a tes t f it f or y o ur c o m p any . D ep e nd i n g on th e s c a le of t h ei r

On
ne e ds , s o m e b us in es s es us e a c o mb i n at i on of t h es e s or ts o f au t o ma t io n .

Th ere ar e fo ur d i ff er e nt f or ms o f B P A, ra n g in g fro m t he m os t b as ic t o th e m os t
c om p l ic at ed . Th es e ar e th e f o ll o wi n g:

• B as ic A ut om a t io n
• Pr oc es s Au t hor iz at i o n

ty
• In te gr at i o n A ut o ma t io n
• Art i f ic ia l I nt e l li g e nc e A ut o ma t io n

Th e m os t bas ic f or m o f b us in es s p roc es s a u to m at i on is ba s ic a utom at ion . It

si
foc us es on t he mos t b as ic t as k s i n a n o rga n is at i on a n d or ga n is es a l l r e l at ed
i nf or ma t io n i n o n e ea s y - to- f in d l oc at i o n s o th at ev ery o ne w h o n e eds it c a n f i nd it .
As we s a i d ea r l i er , o n e s i mp l e ex a m p le o f t h is is us i n g a mes s a g i ng p l at fo rm f or a
gro u p o f e mp l oy ees o r a s pec i f ic pr oj ec t, ens ur i ng th at a ll c o m mu n ic at i on tak es
er
p lac e i n o ne t o o l a nd t ha t n o i nf or ma t io n is l os t b e tw ee n t ea m m e mb ers .

P ro ce s s Aut om at i on is a l i tt l e m or e c o m p l ic a te d, a nd i t's her e t ha t s pec i a l is e d

iv

B P A s of tw ar e ( a b ou t w h ic h y o u' l l l e ar n mo re la ter ) c o mes in to p l ay . Pr oc es s

au t om at i o n is us e d to s tr e a m li n e t he ma n ag e me n t of t as k s , pr oc es s es , a n d pr oj ec ts
s o t h at ev er y t h i ng is c ons is te n t a n d on t i m e. Th e d ed ic at e d s of t war e pr ogr a m me
wi l l i nc l u de a das h b oa r d w h er e a l l o f t h e in f or ma t io n w i l l be s av ed an d ac c es s i b le ,
Un

wh ic h w il l p r o m ot e tr a ns p ar e nc y .

Int eg rat ion A ut om at i on is t he s t ar ti n g p o i nt f or ac tu a l a ut o ma t i on . Th is ty p e of

au t om at i o n e m p loy s mac h i nes or s oft w are to per f orm j o bs t ha t wo u ld n orm a l ly b e
per f orm e d by h u ma ns . Ho wev er , s o me hu m an inv o lv em e nt is s t il l re q u ire d i n t h is
for m o f au to m at i o n. B ec a us e r u les a re c re a te d by h um a ns , t h is is a n ar ea o f B P A
wh er e pr o per ly de f in ed wor k f lo ws ar e c r i tic a l. Cus to m er s erv i c e p os it i ons , f or
ity

ex a m p le , ar e o n e ar e a wh er e t h is ty p e o f a ut o ma t io n c o u l d be us ef u l. A c us t o m er
s erv ic e p l atf or m t h at c o ll ec ts c us to m er c om p l a in ts c a n b e pr oc es s e d t hr ou g h
s of tw ar e t ha t as s i g ns a c h ec k l is t t o an e mp l oy e e w h o is r es po ns i b le for r es olv i n g
th os e c o mp l a in ts ; t h i s m e ans th at pr oc es s a ut o m at i on or pr oc es s m an a ge m e nt
s of tw ar e is i n te gr at e d i n to t h e c us t o mer s er v ic e s of tw ar e, w h ic h i s w hy i t is c a l le d
i nt egr a ti o n a ut o ma t io n .
m

Fi na l ly , Ar t if ic ia l I n te l l ig e nc e A ut o ma t io n is t he m os t c o m p lex s o rt of B P A. Mor e
th a n ev er b ef or e, AI i nt egr a ti o n is dr iv in g bus i n es s in n ov a t i on a nd s tr e am l i n in g
)A

op er at i o ns . Ar t if ic ia l i nt e l li g enc e r e fers to t he a b il i ty of c o mp u ter s o ft wa re

ap p l ic a t io ns t o m ak e hu m an - l ik e d ec is i o ns or pr ov i d e tec h no l o gi c a l as s is t anc e i n
th e s am e way th a t a hu m a n e m pl oy e e c o u ld . AI b us i n es s p ro c es s a u to m at i on
em p l oy s s o ft w ar e s y s t ems t o o r g a nis e d at a an d th e n in i ti a te a p roc es s b as ed o n
th e i nf or m at i on r ec e iv ed by th e s o ft war e .
(c

Th ere ar e m or e f or m s o f b us i nes s pr oc es s a u to m at i on th a t y o u w i l l l e arn ab o ut

thr o ug h ou t t h is t u tor i a l, b ut th es e a re th e m os t fu n da m e nt a l u m br e ll as un d er w h ic h
a ll of t he ot he r ty p es f a ll .
 Wh at Bu si ne s se s U s e Bu sin e ss P roc e s s Auto mat ion ?

e
As y ou m ay r ec a l l, b us in es s pr oc es s au t o ma t io n b eg a n w it h th e inv e nt i on of t he
as s e m b ly l i ne i n th e a ut o mo t iv e in d us try . I t' s d i ff ic u lt t o b e l iev e t h at s o m et h i ng t h at

lin
no w a p pe ar s t o be s o i mp or ta nt to b us i n es s es h a d s uc h h u mb l e b eg i n ni n g s , bu t it's
tru e. O v er t he la s t s e v er a l dec a des , t ec h n o l ogy h as a dv anc e d t o t he po i nt wh er e
th e e nt ir e l a nds c a p e of b us i nes s proc es s au t om at i o n h as s h if te d, a n d i t is no w
s om e th i n g t h at any c o mp a ny c a n us e to m ak e p os i t iv e i mpr ov em e n ts .

On
Hav i ng s a i d th a t, t her e ar e p art ic u lar i n dus tr ies w h ere bus i n es s proc es s
au t om at i o n is mos t p r ev a l e nt . I n t h is pa rt , we' l l d is c us s v ar i o us i nd us tri es a nd h ow
th ey e mp l oy B P A in t h e ir op er at i o ns .

Ev ery in d us tr y is d is ti nc t i n ho w i t o p er at e s a nd t he ro l e it p l ay s for i ts c l i en ts ,
wh et h er t hr o ug h pr o d uc ts , s e r v ic es , or o th er me a ns . F ur th er m or e, e ac h c o m pa ny
wi l l h av e a d iv e r s i f ie d wor k f or c e w it h i ts u n i qu e s et o f s tr e ng th s an d o per a ti o na l

ty
s truc tu re . T h es e ar e c r it ic a l c o ns id er at i ons i n d et er mi n i ng w h ic h b us in es s es ut i l is e
B P A an d h ow th ey e m p loy i t. B P A m ay be b en e fic i a l t o a ny s ec t or ; b e l ow ar e s om e
i ns t anc es of i nd us t r i es w her e it is es s en t ia l to th e bas i c op er at i ons o f
org a n is a t io ns w it h i n th at in d us tr y .

Ban k ing
si
er
S om e b ank i n g an d f i na nc e pr oc es s es , s u c h as au t om at i n g c r ed i t an d m on ey
tra ns f ers , pr oc es s in g l oa ns , a nd i nt erf ac i ng w i th ot h er f i na nc i a l s y s te ms t h at may
hav e d i ff er en t p o l ic ie s a n d pr oc ed ur es i n p lac e, ar e ex t re m ely rep e ti t io us . I n th e
ba nk i ng i n dus tr y , o ff i c e p r oc es s es a re a ls o lar g e ly a u to m at e d b ec a us e t h e s am e
bas ic ac ts m us t b e c o nd uc te d o n a re g ul ar b as is .
iv

Hu m an e rr or may b e d is as tr o us f or b ot h i n d iv i d ua ls w h o r e ly on b ank s an d t he
ba nk s ' c or p or at e r e p ut at i o ns , h e nc e bus i n es s pr oc es s au t om a ti on i n ba nk i ng is
Un

c rit ic a l. B P A als o a s s is ts b ank s i n mov i ng m on ey mor e ef f i c i en t ly f or t h ei r

c ons u me rs , r ed uc in g t he wor k l o ad f or f i n anc i al i ns t it u ti o n e m pl oy e es . C o ns id er h o w
i nc o nv en i en t i t wo u l d be if e ac h p ay m e nt h a d to be h a nd l e d s ep ar at e ly .

He alt hc a r e

B us i n es s pr oc es s a ut om a ti o n is us e d i n ev ery t h in g fr o m b i ot ec h n o lo gy b us in es s es
ity

to hos p it a ls , d oc t or 's of f ic es , p h arm ac eu t ic a l l a bs , an d mor e . Fo r ov er a c e n tur y ,

he a lt hc ar e has b e en o ne of t he in d us tr i es wh er e i nn ov at i on a nd s tr e a ml i n in g
proc es s es h av e b ee n at t h e f or e fr on t o f b u s i nes s . B ec aus e s o m any pa t ie n ts a nd
i nd iv i du a ls r e ly o n th e he a l thc ar e s y s te m t o s tay h e a lt hy a nd r e s po n d to me d ic a l
em er g enc i es , e ff ic i en t op er at i ons ar e c ru c i al t o ac hi ev i ng t h e gre a t pa t ie n t
m

ou tc om es t ha t e ac h bu s i nes s s tr iv es fo r.

He a lt hc are is o ne o f t he w or l d's m os t q ua l i ty - dr iv e n s ec t o rs . It als o pr ov i des

s tri n ge n t re q ui r e m en ts on wh at m et ho ds s ho u ld be us ed an d ho w proc es s es s h o u ld
)A

be c arr ie d o u t i n or de r t o pr es er v e pa t ie n t s af ety , e ns ure da ta pr i v ac y , a n d s o o n .

A ut o ma t io n o f pr oc e dur es l ik e as r ec or d k ee p in g , pr oj e c t m an a ge m e nt , a nd
l og is tic s is es s e n ti a l t o t he r u nn i n g o f a ny he a lt hc ar e f ac i l i ty , an d t ha t's j us t t h e
be g i nn i ng .
(c

Tel e com mun i cat ion s

Telecommunications is a broad term that includes broadcasting, telephone communication, and
internet communication, among other things. More than 60% of the world's population utilises the
internet on a daily basis, and even more people use their phones on a daily basis; the average
 consumer also watches television for more than four hours each day. This industry is involved in
practically everything we do on a daily basis, therefore there is always a lot going on behind the

e
scenes. Billing, customer and technical support, databases, and office systems are just a few of the
things that BPA systems have automated for telecoms firms.

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Tr adi ng an d Ma nuf ac t ur ing

Th e ma n uf ac t ur i ng in dus tr y was t h e f irs t t o de p l oy bus i nes s p r oc es s a u to m at i on ,

an d it h as d e pe n de d on i t m or e s ig n if ic a nt l y s i nc e th e n. Ev ery d ay , m ore pr od uc ts
are m a de av a i la b l e, pur c h as ed , an d us e d as th e po p u la t io n gr ows , pe o pl e b uy

On
mo r e , a n d m or e pr od u c ts ar e m a de av ai l a bl e, purc h as e d , a n d us e d. F or t h e t hi n gs
th ey n e ed t o s u r v iv e an d t h e th i n gs th ey u s e t o e nt ert a i n th e ms e lv es , ev ery on e i n
th e w orl d r e l i es o n th e m a nu fac t ur in g a nd t ra d in g o f go o ds .

Mos t t h i ngs ar e n ow ma n uf ac t ur ed as e f f ic ie n tly as pos s i b le t o s av e t i m e a n d

ens ur e th at d e m an d i s s at is f ie d w it h s uf f ic i en t s up p ly . I n th e m an u fac tur i n g an d
c om m erc e i nd us tr i es , war e ho us e ac t iv it i es , res o urc e m an a ge m e nt , doc u me n t f l ow

ty
ma n ag e m en t, an d a v ar ie ty o f ot h er pr oc e d ures are au t om a t e d t o k e ep t h e w orl d
mov i n g a nd e ns ur e t h a t c ons u me r s hav e ac c es s to w h at t h ey ne e d.

Wh at Ty pe s of Bu si n es s P ro c e ss e s Sho ul d B e Aut om ate d?

si
No w th a t y o u'v e l ear n ed ab o ut t h e m any f or ms of bus i n es s pr oc es s a ut o m at i on a n d
th e in d us tr i es t ha t u t i l is e th e m, l et's tak e a c l os er l o ok a t t h e d if fer e nt s orts of
proc es s es th a t c a n an d s h ou l d b e au t om a te d w it h t he he l p of a B P A s y s t em .
er
B us i n es s pr oc es s a ut om a ti o n is u ni q ue in t ha t it is n o t l im i te d to a s i ng l e ty p e of
work or gr ou p of pr oc e s s es . Ins t ea d, i f t h e t h i ngs y o ur c o m p any p er for ms fa l l un d er
a s p ec if ic s e t o f c r it er i a, it c a n be ex ec u t ed i n a v ar i ety of w ay s . W he n it c o m es t o
iv

au t om at i n g a b us i n es s pr oc es s , t her e ar e a f ew f ac t ors t o k ee p i n m in d . T o b eg i n
s tar te d , he r e ar e s o m e f an t as t ic q ues t io ns t o as k :

•
Un

Is t h er e a l ar ge n u m be r o f tas k s in t h is pr oc e s s ?
• Is it n ec es s ar y to as s i gn t h es e r es p o ns ib i l it i es to nu m ero us p e op l e ?
• Is it n ec es s ar y to d o t hes e ac t iv i t ies w i th i n a c ert a i n a mo u nt o f t i me ?
• Is t h er e a b en ef i t to a ut o ma t in g t h is proc es s f or ot h er s y s t ems o r p roc es s es ?
• W i l l a ut om a t in g t h is pr oc es s a l l ow us to r em a i n c o mp l i an t w i th c urre n t
reg u l at i ons ?
• W i l l au t om at i n g th is pr oc e d ur e mak e f ut ur e a ud i t in g e as ier ?
ity

If y ou a ns w er e d " y es " to th e q ues t io ns ab ov e, th is is m os t c ert a i n l y a p roc es s th at

s ho u l d be au t om at e d an d a ut o m at i ng it w i l l hav e a g o od i mp ac t o n y o ur c o mp a ny 's
ov er a l l op er at i ons . T h os e q ues t io ns c an b e a b i t h az y , b ut h ere ' s a ru n do w n o f
s om e f an t as t ic i ns ta nc es of au to m at e d o per a ti o ns .
m

Br ing ing In N ew Emp loy e es

E mp l oy ee o n bo ar d in g is a mu l ti- s t ep p roc e s s t ha t i nc lu d es th i ng s l ik e f il l i ng ou t
)A

pa p erw ork , s c h ed u l in g or i e nt at i on an d tr a in i ng , g at h er in g a l l o f a ne w e m pl oy ee 's

doc u me n ta t io n an d i nf or ma t io n , s e tt i n g u p p ay m en t ac c o u nts , an d as s ig n i ng
s om e on e t o m en t or or ma n ag e t h em in t h ei r n e w r o l e.

B ec a us e o f th e nu m er ous du t ies i nv o lv e d, t h is pr oc es s c a n tak e a l o ng ti m e, an d

an e mp l oy ee m ay b e r eq u ir ed to d o a s i gn i f i c an t a m o un t o f p a per work a nd fo l l ow -
(c

up c hor es t o e ns u r e t h at ev er y th i n g work s pr op er ly . A ny m is t ak es i n th is proc e dur e

c an m ak e y o ur n ew e mp l oy ee fe e l s lo w ed do w n or g iv e th e ap p ear a nc e t ha t y o ur
op er at i o ns ar e u nor ga n is ed , an d du t ies an d i mp or ta n t in fo rm at i on c a n b e
 ov er l o ok e d . A ny th i ng t ha t d e l ay s t h is pr oc ed ure w i ll j us t pr ol o n g i t an d r ed uc e t he
pro d uc t iv i ty of y o ur H R de p a r t m en t as w e ll as th e n ew em p l oy e e.

e
A ut o ma t in g t h is pr oc e s s el i m i na tes th e c ha nc e of h um a n m is tak e an d e ns ur es t ha t
a ll of t h e i nf or m at i on y o ur c o m p any ne e ds is ac c u ra te an d in o ne p lac e. I t a ls o

lin
me a ns t ha t th e pr oc e s s c a n b e tr ac e d fr o m o ne s t a ge to t h e n ex t , e ns ur i n g th at
no t hi n g is m is s e d a lo ng t he w ay . R e lev a nt pers o n ne l , s uc h as H R a n d s up erv is ors
wh o w i l l b e ac c o u nt a b le for th e ne w e m p l oy e e, c a n b e k e p t i nf or me d as t his
oc c urs , a nd au t om at i o n c a n mak e t h e proc es s g o m uc h mor e q u ic k l y .

On
Pu r ch as ing Th ing s Y our Bu s in es s N ee ds

P urc h as e or der s c an b e i nc onv e n ie nt . R eq u es ts a re c o m m on i n a f ir m s i nc e

res o urc es m us t be r e p lac e d o n a re g ul ar b as is . Wi t ho u t a ut om a t i on , th is proc es s
en t ai ls a n um b er o f s te ps , fr o m t h e p ers on w h o i n it i at es t he or d er t o t he pers o n
wh o a p prov es i t, an d th e n o n to t h e s t af f w ho do t h e ac tu a l p urc has e a n d th os e
wh o m a in t ai n y o ur c o mp a ny 's e nt ir e i nv en t o ry .

ty
W he n t h is p r oc es s is no t a ut o ma t ed , er ro rs in th e i ni t ia l r e qu es ts c an oc c ur,
nec es s it a ti n g t h e us e of ad d it i o na l r es ourc e s t o f ix . T her e c ou l d b e a wa i t b et w ee n
per m is s i on a n d t h e a c tu a l pur c h as e o f th e pr od uc ts , a nd t hos e g oo ds c o ul d b e

si
m is h a nd l e d w he n t h ey a r r iv e . W h en a p urc h as e or der is p l ac ed , i t is c r it ic al to k ee p
ac c ur a te r ec or ds s o th at c o r p or at e m o ney c a n b e fo l l ow e d a nd no t h in g g o es wro n g.
A ny pr o bl e ms t h at de v e lo p t hr ou g ho u t t his proc e d ure c an h av e a ne g at iv e i m pac t
er
on t he p ur c has i n g t e am 's ov er a l l pro d uc t i v ity . T o k ee p th i n gs mov i n g w e l l, t hey
mus t b e a b l e t o p ut ou t a s i mp l e an d c orr ec t r e q ues t an d r ec e i v e t h e r es o urc es
th ey r e qu ir e i n a t i m el y m a nn er .
iv

In t h is c as e, b us in es s pr oc es s a ut o m at i on is a p ow erf u l ac c ou n ta b i l ity t o o l. By
c ha n g in g t he w ay r es o ur c es ar e us e d, s at is f y i ng t h e d irec t n ee ds of y o ur t ea m w i th
ef f ic i e nc y , a n d e ns ur i n g th a t wh at eac h t ea m h as is m o n it or e d a n d ac c o u nt e d for ,
y ou c an av o i d du p l ic at e or der s an d u nn ec es s ary r es ourc e us e . B ec aus e t her e w i l l
Un

be no b ac k - a nd- fo r t h b y e m ai l o r ph o ne , a l l c om m u nic a ti o n fo r th is proc es s m ay b e

k ep t s tr uc t ur ed .

Cr e atin g A P la n F or Bus in e ss Au tom ati on

A c o m pa ny c a n u t il is e a v ar i ety o f b u s i nes s p roc es s a ut o ma t io n m e th o ds
de p en d i ng o n t he ir r e qu ir e me n ts . W e' l l g o ov er s o m e o f t hes e a ppr o ac hes be l o w
be f ore m ov i n g o n t o t he m or e c o mpr e h ens iv e s or ts o f s o ft wa re th at c an b e u ti l is ed
ity

i n ad d it i o n to t h es e m et h ods .

AI Aut om at i on
Th ere 's AI A ut o ma t io n , f or s t ar ter s . Ar ti f ic ia l i nt e l li g enc e , as pr ev i ous ly s a i d, is th e
mos t d i ff ic u lt f or m o f b us i nes s pr oc es s au to m at i on ; t he re for e , we are a na ly s i ng
m

th es e tec h no l o gi es a l ph a be t ic a l ly r at her th an in or der of t h eir s i mp l ic ity . Th is is

do n e by i n te gr at i ng a ll of t h e c o mp a ny proc es s es w it h ar t if i c i al in t e ll i g enc e
i ns t a ll a ti o n. T h is s tr at egy has th e a dv an t ag e o f o ne of t h e m os t ef f ic i e nt w ay s t o
en t ire ly r e pl ac e h u ma n p er s on n el wh o are i nv o lv e d i n a s pec i f ic proc es s or s e t o f
)A

res p o ns ib i l i t i es .

AI Au to m at i o n c an b e us ed t o an a ly s e v as t v o lu m es of d at a a nd pr ov id e a r e por t
bas e d on t h at d at a, e l i mi n at i n g t h e ne e d f or a p ers o n t o f i lt er t hro ug h a nd a n a ly s e
th e d a ta , s av i n g t im e an d mak i ng th e da t a mor e ac t i on a b le . A rt i fic i a l i n te l l i ge nc e
(c

c an he l p y o u i nc r eas e y o ur m ar k et i n g an d s a les by pre d ic ti n g w h ere y ou 'l l r ec e iv e

th e gre at es t c o nv er s i ons a nd t he b es t a pp roac h to r e ac h o ut to c l ie n ts t o o b ta i n
y our s al es .
 Fi na l ly , ar t if ic ia l i nt e ll i ge nc e c a n a i d i n t h e e nh a nc e m e nt o f c o ns u me r p l eas ur e. By
us in g A I - i nt eg r a te d t e c h s u pp or t t o a ut om a t e t his proc es s , y o u c a n p ut mor e ira t e

e
c us t o mers o n hi g he r pr ior i ty w a it i n g l is ts a nd e ns u re th a t t h ey r eac h th e r e lev a nt
rep res e nt at iv e by a n al y s i ng t h e ter ms t hey u s e to des c r i b e t h e ir is s ues .

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IT S e rv ic e s E xp an s io n

IT Au to m at i o n, ac c or d i ng to m u lt i p le s ou rc es , h as b e en s te a d i ly i nc reas i n g a n d c a n
res u l t in s i g ni f ic a n t i n c r eas es i n pr o d uc t iv it y . Th is is a mor e ma nu a l ap pr oac h to

On
th e pr oc ed ur e t ha t r e qu ir es y o ur I T t ea m t o d ev is e a t ec h n i qu e t o i n te gr at e a n d
s i mp l ify a l l o f y o ur c o mp a ny 's ex is t in g s y s t ems . Fr om a t e mp or a l as p ec t , t h is m ay
be m or e r es o ur c e - in t e ns iv e . Ex is t i ng A P Is a nd s o ft war e ov er la p c an b e l ev er a ge d
to c o n nec t a l l of y our s y s te ms .

S om e ex p er ts s ay t h at wh i l e t his is on e of th e m os t ex p ens iv e t ec h n i qu es of

ty
bus i n es s pr oc es s i nt e gr a t io n bu t t ha t i t is n ot ap pr op ri a te f or a ll fir ms , i t c a n p ay
of f. If y o ur o r g a nis at i on c a n' t ru n a ny ot h er w ay bu t ne e ds t o s e iz e th e
op p ort u n it i es th at bus i nes s pr oc es s a ut o ma t i on may g iv e, t h is is t h e b es t o pt i o n.

Bus in e ss Pr oc e ss Ma nag em ent Sy st em s

si
Cor p ora t e pr oc es s ma na g em e nt s y s t e ms h a v e b ee n d oc um e nt e d a s o n e of t h e m os t
er
ef fec t iv e w ay s t o be g i n au t om at i n g bus i n es s pr oc es s es , a nd t h e y n e ed t he le as t
am o un t of f i n anc i a l a nd t im e in p ut . T her e are d ed ic at e d t oo ls fo r t h is , b ut it m ay
a ls o be d on e ma n ua l l y w i th a b as ic s p re a d s he e t or w or d d oc u m en t if it is m or e
ap pr o pri a te f or y o ur c om p any .
iv

To a do pt t h is s tr a t egy , y ou' d g o thr o ug h t h e proc es s o f s te p - by - s te p m ap p i ng o ut

a ll of y o ur w or k f l ows , mak i n g s ur e t h at ea c h p h a s e is s ep ar at e an d ac c ur at e ly
rec o rd e d. Y ou c a n u t i l is e th is b lu e pr in t t o f u l ly dev e lo p y ou r b us in es s proc es s
Un

au t om at i o n s tr at e gy a ft er y o u h av e i t. T h is r es o urc e m ay b e us ed by a ny t e am
me m b er t o o bs er v e h ow wor k f lo ws s h o u ld be f lo w in g in or der to g e t t he gr ea tes t
res u l ts , a n d i t e ns ur es t ha t ev er y o n e w ho n e eds t h e k n ow l ed g e c a n g et i t.

Th is o n e r es o ur c e wi l l s ho w y ou h ow to es t a b lis h a n ov er a ll r o a dm a p f or
i mp l e me nt i n g a f u l l - f l e dg e d bus i n es s p roc es s a ut o ma t io n s tra t egy . E ac h p h as e w i l l
l et y o u s e e wh er e o th e r s o ft wa r e t o ols c an b e us ed , as w el l as ot h er th i n gs .
ity

2. 1. 3 Int eg r at e d Bu si ne ss Modu le s - M anuf act ur ing and S e r vi ce Indu st ry

m

A bus i nes s o f a ny k in d m us t b uy fr o m, s e l l to , tr a ns ac t w it h , a n d c on d uc t b us i n es s
wi t h o th er b us i n es s e s l on g be f ore i t c a n s tar t s el l i ng , t ra ns a c ti n g, a nd d o in g
bus i n es s w it h c us t o m er s . W h en i t c o m es t o b e g in n i ng a bus i n e s s of a ny k in d,
bu i l d in g tr us t i n g b us i nes s t i es is c r i tic a l. B ut , o nc e f or m ed , t h os e bus i n es s t ies
)A

mus t b e m a na g ed ef f i c i en t ly – a n d i n t he d i g it a l er a, t h at inv o lv e s b u i ld i n g d i gi t al
l ink s b et w ee n s u pp l i er s , p ar t n ers , m an uf ac t ur ers , res e l lers , a nd a l l ot h er
org a n is a t io ns wi t h w h i c h a f ir m r e l i es an d d oes b us in es s i n t he s up p ly c ha i n. Th is
is why a s o l id b us i nes s i nt e gr a t io n s tr at egy i s s o i mp or ta nt . T h e na tur e of b us in es s
is c h a ng i n g, a n d d i g it iz at i on is dr iv i ng th is s h i ft . C us t o mers , s u pp l i ers , par t ners ,
s erv ic e prov i d er s , a n d a l l o th er s t ak eh o l der s i n t h e s u pp ly c h a i n mus t a n d m ay b e
(c

d ig i ta l ly c o nn ec t e d, c om m u nic a te d w it h, a n d c o ll a bo ra te d w it h i n t o d ay 's g lo b a l
bus i n es s ec os y s t e m. In d ee d, th e mo d er n s up p ly c h a i n h as ev o lv ed i nt o a d i gi t al
ec os y s t em i n a nd of i ts e l f, a l l ow i ng for de e per c o l la b ora t io n a n d ne w c o o per a tiv e
work me th o ds .
 B us i n es s es s t a nd t o g a in a l o t f r o m t he d i g i tiz a ti o n of s u p p ly ne t work s . Ac c or di n g
to r es e arc h, h ig h er l ev e ls of di g it iz at i o n c an i nc re as e f i l l r a te s (t h e a m ou nt of

e
c us t o mer de m an d m e t thr o ug h s t oc k av a il a b il ity ) by u p to 80 % a nd s hor t en c as h - t o-
c as h (C 2 C) c y c l e t im e s ( t he t i m e b et we e n w he n a c o m p any s e n ds c as h t o s u p pl i ers
an d r ec e iv e s c as h fr o m c us t o mer s ), wh ic h l ea ds t o inc r e as e d pr of it a b il i ty i n 75 % of

lin
c as es . Ac c or di n g to Mc K ins ey , o rg a nis a ti o ns wi t h h ig h ly - di g it iz e d s up p ly c h a ins
may ex p ec t y e ar ly E BI T ( ear n i ngs be for e in t eres t a n d tax es ) gr o wt h of 3. 2 p erc en t
– th e h i gh es t i nc r e as e o f a ny i nd us try – a nd an n ua l s a l es gr ow t h of 2 .3 perc e nt .

Th e a dv an t ag es ar e obv i o us , bu t ho w c an bus i n es s es g o a b ou t ac h i ev in g th e m?

On
B us i n es s i nt e gr a t i on i s t he ans wer .

S i mp ly p ut , b us in es s i n te gr at i on ( a ls o r ef err ed t o as B2 B in t e gra t io n o r s i mp ly
B 2 Bi) is a c o m pr e h en s iv e d i gi t al s tr at egy th at en a b les th e in t egr a ti o n, au t om a ti o n,
an d o pt i miz a ti o n of k ey b us i nes s pr oc es s e s th at c o n nec t an or g an is at i o n w i th i ts
tra d e pa rt ne r s – c u s to m er s , s u pp l i ers , l og is tic s c o m pa n i e s , a n d f i na nc i al
i ns t it u ti o ns . It is t h e ex c h a ng e a nd in te gr a ti o n of e l ec tr o nic m es s ag es , d a ta , an d

ty
tra ns ac t i ons by a n or g an is at i o n ac r os s a b u s i nes s ne tw ork of ex t e rna l p art ne rs v i a
i nt er - c om p any bus i nes s pr oc es s es .

Na tur a l ly , t ec hn o lo gy s o lu t io ns ar e n ee d ed t o s up p ort t h es e in te ra c ti o ns , t he re for e

si
bus i n es s i nt egr a t io n a ls o r ef er s t o th e tec h no l o gy arc h i tec t ure t h at f ac il i ta t es th e
c o ll a bo ra t iv e p ar tn er s h ips t h at dr iv e m od er n s u p ply c ha i ns .

Wh y Do We N e ed Bu s ine s s Int eg ra tio n?

er
B us i n es s es n e ed a m e c ha n is m t o tra ns m it i n for m at i on q u ic k ly a n d ef f ic i e nt ly , w h ic h
is wh er e t he f un d a me n ta ls o f bus i n es s i nt eg r at i on c o m e fr om . Th e bas ic f ac t is t h at
i n t od ay 's d i gi t al e nv ir on m en t, f ax es a nd e m a ils ar e no l o ng er s uf f ic ie n t. Ho wev er ,
as b us i n es s es hav e p r og r es s e d a lo n g th e ir d ig i ta l tr a ns f or ma t io n pa t hs , t hey hav e
iv

dev e l op e d t h eir o wn s tr a te g i es f or ex c h a n g in g c om m u nic a ti o ns an d i nf or ma t io n

wi t h tr ad i n g p ar t n er s . As a r es u lt , e ac h c o mp a ny in a s u p p ly c h a in has i ts o wn
un i q ue m ix of a p pl ic at i ons , c l ou d r es o urc es , an d ot h er s y s t e ms , a l l of w hic h r e ly on
d if fer e nt fo r m ats a n d p la tf or ms an d are s u bj ec t to v ar i e d s ec ur ity , c o mp l i anc e, a n d
Un

gov er n anc e c onc er ns . Th es e d iv ers e s y s t e ms do n' t n ec es s a ri ly c om m u nic a te w it h

on e a n ot her , a nd de p l oy i n g a s l ew o f s o l u ti o ns to c o p e w it h th e v as t r an g e of
c om m u nic a ti o n s t an d ar ds , d a ta for m ats , a n d s ec ur ity fra m e work s th at e ac h
c om p any d e a ls w i th i s s i m ply t oo i n ef f ic ie nt a nd c os t ly . As a res u l t, b us in es s
i nt egr a ti o n s o l ut i o ns , s tr a te g i es , an d tec h n o lo g ies ar e n ec es s a r y t o ma n ag e th e
c ha os a n d e na b l e d is ti nc t fi r ms t o s w i ft ly an d e ff ic i en t ly c o nn e c t an d ex c h an g e
bus i n es s - c r it ic al i nf or ma t io n .
ity

Th e ul t im a te g o al o f b us in es s i nt e gra t io n is to i nc r eas e t he s p e ed an d ef f ic ie nc y of
d ig i ta l tr a ns ac t io ns ac r os s th e s u p p ly c ha i n a n d v a l ue c ha i n. F urt h er mor e ,
bus i n es s in te gr at i o n e li m i na t es t he n e ed f or t i m e - c o ns u mi n g, c os t ly , a n d er ror -
pro n e m an u a l o per at i o ns .
m

Mos t b us i nes s es , for ex a m p le , n ow ac c ep t purc h as e or ders fro m ot h er b us in es s es

e lec tro n ic a lly , m os t fr eq u en t ly v i a e ma i l. Pr oc es s i n g th es e buy o r ders us e d t o be a
ma n ua l o per a ti o n, r e q u ir i n g a n em p l oy e e t o do a rev i e w a nd t he n m a nu a l ly e n ter
)A

th e in fo rm at i o n i n to s om e s or t of or de r f ul f i l me nt s y s t em . Wh e n a c orp or at i o n us es
a bus i nes s in te gr at i on s o l ut i on , h ow ev e r , a p urc has e or der is a ut o ma t ic a l ly
rev ie w ed a nd s e nt i nt o t h e or d er f u lf i l m en t s y s t e m, r e duc i n g ord er fu l fi l m en t
de l ay s .

Fur th er mor e , t h e s u b m it ti n g c o m p any n o lo ng er h as a ny do u bts ab o ut wh e th er or

(c

no t th e p ur c h as e or d er was r ec e iv e d , bec aus e th e b us in es s i n te gr at i on s y s t e m

a ll o ws t h e s u b m it t in g c om p any t o ac c es s t h i s i nf or ma t io n a nd e ns ure t ha t th e or der
is b e in g pr oc es s e d.
 The B en ef it s of Bu si ne ss I nt e gr at ion
B us i n es s es g a in gr e a t ly fr o m s uc h tr a ns p ar enc y . Bus i nes s i nt e gr at i on a l lo ws f ir ms

e
to ta l c o ntr o l ov er t he ir tr ad e p art n ers ' o per a ti o ns , fr o m b us in es s pr oc es s
ma n ag e m en t ( B P M) t o s u pp ly c h a in v is ib i l i ty an d g l ob a l c o m mu n ity m a na g em e nt .
Thr ou g h a c en tr al is e d p er s p ec t iv e o f r ev e n ue - dr iv i ng B 2 B pr oc e s s es , f ir ms may

lin
e li m i na t e s h ip m en t de l ay s , an t ic i p at e s up p ly c h a in b o tt l en ec k s , a n d g et
c om pr e he ns iv e v is i bi l i ty , e n ab l i n g i m prov e d e n d - t o- en d r es p o ns iv en es s a n d b et t er
c us t o mer s er v ic e .

Th e k ey b e ne f its o f b u s i nes s in t egr a ti o n t ec hn i q ues , as i de f ro m i mp rov e d v is i bi l i ty ,

On
l ie aro u nd t h e c o l la b or at iv e p ar t n ers h i ps a nd n ew w ork p a tt erns t h a t are en a b le d.

For ex am p l e, u p to 8 5 per c e nt o f th e p arts f o r a v e h ic l e's i n ter i or s y s te ms ar e of te n

pro d uc ed by a c om p l i c at e d ne tw ork o f v e nd ors . F urt h erm or e, as we m ov e i nt o t he
c on n ec t e d v e h ic l e er a ( w i th dr iv er l es s t ec h n o lo gy l oo m i ng o n t h e hor iz o n),
c ar mak ers ar e inc r e a s i ng ly r ely i n g o n w h o le ne w s w at hs o f s tra te g ic s u p p li er
par t ners h i ps t o pr ov id e t he m w i th th e el ec t ron ic s an d t ec h no l og i es t hey n ee d t o

ty
mak e t h e ir v e h ic les s ma r t an d c o n nec t t h e m t o t he i nt er ne t, r a th er t ha n j us t en g in e
par ts .

For ex am p l e, as Ch i n a 's c o n nec te d v e h ic l e s ec t or ev olv es , 98 c ar mak ers , c ol l e ges ,

si
an d i ns t i tu t es hav e f or m e d a s tra t eg ic p art n ers h i p to inc reas e c ros s ov er
c o ll a bo ra t io n a n d s tr e ng t he n n a ti o na l i nd us tri a l s t a nd ar ds . V eh ic l e dr iv ers s p e nd
91 h ours c o n nec te d t o t h e i n ter n et du ri n g th e ir j o ur ney s e ac h y ear , ac c or d i ng to
K urt L e hm a n n, f or m er CTO o f C on t in e n ta l , th er ef or e c o ll a b ora t io n b e tw ee n
er
c ar mak ers a n d te l ec o m mu n ic a t io n s erv ic e p rov id ers is es s e nt i a l.

B us i n es s in t egr at i o n t ec h n i qu es t h at a l lo w f or t h e f as t a nd s ec ur e s har i n g o f di g it a l
i nf or ma t io n ac r os s a l l par tn er s i n a s u p p ly c ha i n ec os y s te m are es s e nt i al t o
iv

s up p ort any n ew c ol l ab or at iv e b us in es s op er at i o ns . " By 2 02 0 , 6 0 p erc en t o f

ma n uf ac t ur er s w i l l r e ly o n d ig i t al p la tf or ms to bo os t th e ir inv es t m e nts in
ec os y s t ems a n d ex p e r i enc es a nd s u p por t as muc h as 3 0 pe rc e nt o f t h e ir en t ir e
i nc o m e," ac c or d in g t o ID C Ma n uf ac t ur i ng I ns i gh ts .
Un

Fro m E DI t o Bu si ne s s Int eg rat ion

W h il e bus i n es s i nt e g r at i on is a p o pu l ar i s s ue r i g ht no w, s o lu ti o ns h av e b e en
aro u n d f or qu i te s o m e ti m e. E DI ( e l ec tr o n ic d a t a in terc h a ng e), w h i c h d a tes b ac k t o
th e 1 97 0s , is o n e e a r ly ex a mp l e. ED I is p ri mar i ly c o nc er ne d w i th t h e e lec tr on ic
ex c h a ng e o f doc u me nts . W he n s o l ut i ons i ni t ia l ly e m erg e d, t he re wer e n o da t a
for m at s t an d ar ds ; w he n tw o c o mp a n ies a gre e d to c o m mu n ic at e i nf or ma t io n
ity

e lec tro n ic a lly , t hey w o u ld a gr e e on t h e for m a t t o us e.

In t h e 1 98 0s a n d 1 99 0 s , E DI s t a nd ar ds w ere i m p le m e nt ed , a n d E D I pr ov e d t o b e a
hu g e t im e s av er f or ma ny b us in es s es – a l be i t it w as f ar fro m i de a l. T o be g i n,
bus i n es s es ne e de d t o p ur c has e v ar i o us ge ar an d s o ft wa re , a s w e l l as t e ac h
m

pers o n ne l o n h ow to s e t u p a nd ma na g e c o nn ec ti o ns . Fur th er mor e , IT

org a n is a t io ns w er e r e qu ir e d t o i nc or por a te pa p ers in to ex is t i n g s of tw ar e s y s t ems ,
wh ic h a dd e d ti m e a nd r es o ur c es t o th e pr oc e s s .
)A

To day 's hy br i d c lo u d ED I s o ft wa r e is fa r m ore adv a nc e d , v ir tu a l l y e l i m in at i n g th e

ne e d f or h um a n da ta en tr y . F ur t h erm or e, bec a us e ev ery t h i ng i s s up p l i ed as - a-
S erv ic e , th er e is n o n e ed t o p ur c has e h ar dw a re or s o ft war e .

ED I s y s t e ms , wh ic h s ti l l f or m t h e b e droc k of bus i n es s i nt e g r at i on tec h no l o gy ,

au t om at e a n d s tr ea m l i ne t h e pr oc es s of ex c ha n g in g c ri t ic al c om pa ny d oc um e nts
(c

wi t h tra d i ng pa r t ner s , s uc h as i nv o ic es , s h ip p in g n o t ic es , a nd purc h as e or der s .

Ho wev er , as b us in es s es b eg a n to d o m o re b us i n es s e l ec tr o ni c a lly , i t b ec a m e
ev id e nt t h at a d d in g c o ll a bo r a t io n a n d c o m mu n ity m an a ge m en t t oo ls t o t h e s a me
 s o lu t io n m i g ht i m pr o v e ev en mo re b us i n es s pr oc es s es . As a r es u lt , c urr en t
bus i n es s in t egr a ti o n s o lu t io ns , s uc h as Ac ti o n B us i n es s Ex c ha n ge , no w pr ov id e
mo re c o m pl e te f ea t ur e s ets – s uc h as B P M to o ls an d s u pp ly c ha i n a na ly tic s – i n

e
ad d it i o n to b as ic E DI c ap a b il i t ies .

lin
O rg an iz at i o ns m ay ex c ha n ge e lec tr on ic pro c ure m e nt a n d s u p p ly c ha i n d oc um e nts
wi t h tr ad i ng pa r t ne r s us i n g a s o l ut i o n l i k e Ac t io n — a f u ll y - m an a ge d B2 B
In te gr at i o n as a S er v ic e s o lu t io n – in d ep e nd e nt o f fo rm a t or e nt er pr is e s y s te m.

For p urc h as er s , Ac t io n B us i nes s Ex c ha n ge s tre a m li n es a n d l ow er s t h e ex pe ns es o f

On
th e ac c ou n ts pay a b le ( AP ) pr oc es s , as w e ll as a ll o wi n g f or e as y i nf or ma t io n
s har i n g w i th s u pp l i er s v i a a c o m mu n ic at i on l ay er . D ay s s a les o u ts t an d i ng ( D SO )
rat es f or s u p p l ier s ar e dr a ma t ic a l ly dec r e a s ed wh e n t he or ders to c as h c y c l e is
s pe d up an d th e in v o ic e s en d i ng pr oc e dur e is a u to m at e d. B ot h b uy ers a n d
s up p l ie rs b en ef i t fr om a c l ou d - bas e d p ort a l t h at a l l ows f or e as y o n b o ar d in g a n d
c on n ec t i ons w i th t r a d i ng par tn er s o f a l l s iz es a nd lev e ls of I T s op h is t ic at i o n, as
we l l as p o wer f ul k ey p er f or ma nc e i n dic a tor ( K PI) das h bo ar ds t ha t trac k D SO , d ay s

ty
pay a b le o uts t an d in g ( DP O ) , a nd err ors , as we l l as v is ib i l ity i n to o rde r, i nv o ic e , a n d
re mi tt a nc e doc u me n t s ta tus .

How Bu si ne s s Int eg r at i on Wo r k s

si
To be g i n w i th b us i nes s i n te gr at i on , a c o mp a ny m us t f irs t d ec i de o n t h e
tec h no l og ic a l p la tf or m i t w i l l us e. Th e o pt i o ns are d iv i de d i nt o f o ur c at e gor i es : o n -
pre m is es , h os te d, c lo u d, a n d hy br id .
er
Th e es s e nt i a l i nt e gr at i on s o ft w are is in s ta l l ed o n - s it e at t h e org a n iz a t io n's
pre m is es w it h on - pr e m is es b us in es s in t egr at i on s o lu t io ns . H os t e d i nt e gra t io n r ef ers
to s of tw ar e t h at is d e p loy e d o ff - s i te , c l ou d i nt eg ra t io n r ef ers to s of tw ar e t h at is
iv

s up p l ie d as - a- s er v ic e thr o ug h t he i n ter n et , an d hy br id a p pr oac h e s c o mb i n e tw o or

mo re o f t he t hr ee s tr a t eg i es .

A bas ic bus i n es s in te g r at i on pr oc es s h as f o u r c o mp o ne nts , r eg ar d l es s o f w h ic h o n e

Un

a c o mp a ny ut i l is es for its ow n r e as o ns .

1. Sou r c e Ap pl ic at ion: To be g i n, d at a f ro m a n org a n iz a t io n's fr on t - en d b us i n es s

ap p l ic a t io n m us t b e e x tr ac te d . T his c o u ld be a p urc h as e ord er fro m an E R P
s y s te m or m on t hl y s al es nu m be rs fr o m a p oi nt - of - s a l e s y s te m fo r a r et a i l s t or e.
Th e da t a wi l l b e pr e p ar e d f or tr ans m is s io n to t he ex t er na l b us in e s s p art n er by
th e b us in es s i nt e gr at i on s ol u ti o n o nc e it h as b e en p u l le d .
ity

2. Dat a Fo rm at : As pr ev i ous ly i n d ic a te d , no t a l l d at a i n a bus i n es s 's ap p l ic a t io n is

s ta n dar d is ed . B ec aus e for m ats di ff er , th e d at a m us t be t ra ns l at ed in t o a
s ta n dar d is ed f or m at b ef or e b ei n g tr ans f erre d to th e ex te rn a l b us i nes s par t ner 's
tar g et a p p l ic a t io n. As a r es u lt , wh i l e ev a lu a t i ng bus i nes s i nt eg ra t i on s o lu t io ns ,
fir ms m us t c ons i de r t he ty p es of i n te gr at i o n th at a re s u p por t ed , p art ic u lar ly if
m

th ey s ou r c e a nd /o r s e ll c o m mo d it i es t hro u g h i n ter n at i on a l s up p ly c ha i n
par t ner s .
3. Tr an spo rt Pr ot o col : Na tur a l ly , a l l p art i es mus t a gr e e o n t he c om m u nic a ti o n
rou t e – or pr o t oc o l – f or in fo r m at i o n t o b e s en t. Th er e ar e a v a ri e t y of adv a nc ed
)A

pro t oc o ls for d at a s h ar in g av a i l ab l e, i nc lu d in g SFT P , A S2 , a n d HTT Ps , b ut

tra d in g par t ner s a nd per h a ps e nt ir e in d us tr i es w i ll o ft en d ic t at e th e tr a ns p or t
mec h an is m to be u ti l i s ed . As a r es u lt , b us i nes s es s ho u ld c h oos e a b us i n es s
i nt egr a ti o n s ol u ti o n t h at s u pp or ts a l l of th e pro t oc o ls th a t t he ir tr a d in g par t ners
req u ir e, as w e ll as t he a bi l i ty t o a dd n e w c o m mu n ic a t io n pro toc o ls as th ey
bec o me av a i l ab l e.
(c

4. Ta rg et App li c at i on: T he fi n a l s te p en t a ils th e tr a di n g p ar tn er's t ar g et

ap p l ic a t io n . T he t ar g e t a p pl ic a ti o n mus t be ab l e t o ac c ep t an d pro c es s t h e d a ta
s en t, as w e l l as m ak e th e d a ta r e ad a b le a nd in t egr a te it i nt o t h e r ec ip i en t's k ey
bus i n es s s y s te ms .
 In a n uts he l l , th es e f o ur c o m po n en ts c o l l ec t d a ta fr o m s o urc e a pp s , c h an g e i t i nt o
th e s u i ta b l e f or m a t, a nd th e n tr a ns m i t i t t o t h e d es t i n at i on a pp l i c at i on us in g t h e

e
ap pr o pri a te tr a ns p or t pr o t oc o l .

Le t's t ak e a l o ok a t a hy p ot h et ic a l r et a il or d er - t o- c as h s it ua t io n in wh ic h

lin
S up er ma rk e t A is l ook i ng t o p ur c has e c a t fo o d fro m Su p pl i er B.

In i ts purc h as in g s y s t em , S up er m ark e t A p rep ar e s an or d er for c at f oo d (s o urc e

ap p l ic a t io n) . Th e or d er is r etr i ev e d a n d c onv er te d i n to a P urc has e O r der ( da t a
for m at) . Th e P ur c h as e O r der is s u bs e q ue n tl y s ec ur e ly c o mm u n ic a te d t o S up p l i er B

On
thr o ug h t h e in t er n e t ( tr a ns por t pro t oc o l) a nd pr oc es s e d by Su pp l i er B. ( t arg et
ap p l ic a t io n) . S u pp l i er B t he n r ep l i es w i th a Fu nc t i o na l Ac k no w le d ge m e nt ,
c on f ir mi n g r ec e ip t of t he or d er .

S up p l ier B s e nds a n A dv a nc ed Sh i p pi n g N ot ic e to Su p er mark e t A a ft er pr oc es s i n g

th e ord er t o le t t h em k n ow th e c at f oo d i s o n i ts way . S u p er m ark e t A ge ts th e
S hi p p in g N ot ic e, r e s p on ds w it h a F unc t io n a l Ac k n ow l e dg e me nt , a n d th e n i nt e gra t es

ty
th e S hi p p in g No t ic e i nt o its b ac k - e n d ER P s y s t em , pre p ar i ng f or d e l iv ery .
S up er ma rk e t A s en ds a n ot h er F u nc t i o na l Ac k no w le d ge m e nt t o S up p l ier B a ft er
S up p l ier B s h ips t h e c at f oo d or d er, a n d S up er m ark e t A s e n ds a no t her I nv oic e t o
S up p l ier B. Su p er m ar k et A t h en s en ds a P ay m e nt O r der t o S u pp l ier B to c o n fi rm

si
pay m en t d et a i ls , a nd S up er ma r k e t A s e nds an o th er Fu nc t i o na l Ac k no w le d ge m e nt t o
S up p l ier B t o ac k n o wl ed g e r ec e ip t of t h e d o c um e nt .

A l l o f t h is is h a nd l e d a ut o ma t ic a l ly by t h e b u s i nes s i nt e gra t io n s o lu ti o n, wh ic h us es
er
th e s am e d at a b e i ng tr a ns f er r e d b e tw ee n t he tw o or ga n is at i ons to c o mm u n ic a t e
wi t h ot h er d is tr ib ut i o n, w ar eh o us in g, a nd f u lf i lm e nt ap p l ic a t io ns in ord er t o pre p are
for a n d ex pe d it e t he o r de r 's c o mp l et i o n.
iv

Comp et iti v e Ad van t a ge s

B us i n es s i nt e gr a t io n fu n da m en t al ly re f lec t s t he d i g it a l tra ns f or ma t io n o f th es e
ex t er na l t ies , as d ea l in g wi t h ex t ern a l or ga n is at i ons is c r uc i al to n ear ly ev ery
bus i n es s o p er a t in g to d ay . B us i n es s in t egr a ti o n s o l u ti o ns p rov id e a c l e ar
Un

c om p et i tiv e adv a nt a g e s i nc e t h ey m ak e i t eas i er f or a b us i nes s t o c om m u nic a te

an d rec e iv e m is s i o n - c r it ic a l d at a w it h i ts tra d i ng p ar tn ers .

Re d uc e d ex pe ns es fr o m r e mov i ng h u m an h a nd l i ng in ar e as l ik e d a ta e ntry , c l er ic a l
doc u me n t pr e par at i o n , a nd ma i lr o om s ort i ng ar e j us t a f ew of t h e b e ne f its .
Fur th er mor e , th e pos s i bi l i ty of hu m a n err o r is r e duc e d, r es u l t in g i n l es s c os t ly
bus i n es s doc u m en t a d j us t me n ts .
ity

W it h i n t h e ir tr a d i ng c om m u ni ty , o rg a nis a ti o ns c an als o ex p ec t gr ea t er op er at i o na l
ef f ic i e nc ies . Tr a d in g par t ner s c a n c o op er at e, c o l l ab or at e, a n d c o m mu n ic a t e mor e
s uc c es s f ul ly wh e n da t a is tr a ns m i tt ed s ec ur e ly , qu ic k ly , a n d e ff ec tiv e ly . I mpr ov ed
c om m u nic a ti o n a ls o i mp r ov es s p e nd i n g v is i b il i ty , as w e l l as v is i bi l ity in t o i nv e n tory
m

fl o ws an d s u p pl i er ac t i v ity .

B us i n es s i nt e gr a t io n s o lu t io ns a ls o i mpr ov e da t a qu a l ity b ec a us e s ta ff m a n ua l ly
en t eri n g d at a ar e l es s lik e ly t o m ak e m is tak es . Ma n ua l da t a e ntry h as a 1% err or
)A

rat e, wh ic h may b e ex tr e m e ly d es t r uc tiv e an d c os t ly f or e nt er pr is e s . If a n or d er is

i nc orr ec t, i t m us t be c or r ec t ed , a nd a n ew o rde r m us t b e is s u ed , s l ow i ng d o wn t h e
en t ire pr oc es s an d i n c r eas i n g th e c os ts f o r a l l p ar t ies inv o lv ed . D at a q u a li ty is
i mpr ov ed by bus i n es s i nt e gr at i on s o l ut i o n s n ot o n ly by m i ni m is i ng t h e da n ge r of
hu m an m is tak e, b ut a ls o by es t a bl is h in g a " v irt ua l q uar a nt i n e" th at v er i fi es th e
i nt egr i ty a n d ac c ur ac y o f d at a c o m i ng f ro m a n or g an iz at i on 's tra d in g p ar tn ers
(c

be f ore it r e ac h es en ter pr is e a pp l ic at i o ns . As a r es ul t, b u s in es s es c a n h av e
c om p l et e c o nf i de nc e i n d at a i nt e gr ity a n d, as a res u lt , i n t he bu s i nes s in t egr at i o n
s y s te m's ab i l ity t o s up p or t en d - to- e nd da ta in t erc h a ng e , wh ic h is es s en t ia l t o
au t om at e b us i nes s o p er a t io ns .
 Fin al Tho ught s
In te gr at i o n w i th o t her fir ms , s up p l ie rs , r es e ll ers , a n d ot he r tr a d in g p art n ers is v i ta l

e
to y o ur s uc c es s u nl es s y o u'r e A ma z o n or W a lm ar t, w ho c a n b a s ic al ly d ic ta te an d
ow n t he s u p p ly c ha n n e l fr o m m a nu f ac t ur in g to e n d s a le .

lin
Tot a l tr ad i n g p ar t n er e n ab l e me nt is pr ov i de d by bus i nes s i nt e gra t io n s o l ut i o ns .
B us i n es s i nt e gr a t io n s o lu t io ns g iv e y ou t h e ed g e y o u ne e d to s t a y c o m pe t it iv e i n
th e d ig i ta l a g e, fr o m r ed uc i ng t i me a n d c os t s as s oc ia te d w it h m an ua l pr oc es s in g to
e li m i na t in g h um a n er r or s , i m pr ov i n g da ta q ua l i ty , i nc r eas i ng pr o duc t iv ity , g a i ni n g
s up p ly c ha i n v is i bi l i ty , a nd e nh a nc in g c o l la b ora t io n w it h y ou r e n tir e tr a d in g p art n er

On
c om m u ni ty . O r g an iz a ti o ns h av e c om e a l o ng way s inc e t h e e ar ly da y s of
i nf or ma t io n ex c h a n ge th a nk s t o mo d er n b us i nes s i nt e gr at i on t oo ls a nd pr oc es s es .
Da ta c a n n ow b e s e nt i n t h e b li nk o f a n ey e th a nk s t o th es e tec h n o lo g ies , a l lo w in g
y our f ir m t o o per a te m or e ef fic i e nt ly , c om p et it iv e ly , a n d c os t - e ff ec t iv ely .

ty
In a v er t ic a l ly i n te gr at ed c o r p or at e m od e l, v ar io us s t eps in t he no rm al d is tr ib u ti o n
proc es s ar e c o ns ol i d a te d . A v er t ic a l ly in te gr at e d c or p ora t io n , ra t h er t h an o per a ti n g
ex c lus iv e ly as a ma n uf ac t ur er , d is tr i b ut or, or r et a il er , p er for ms f unc t io ns th at ar e
ty p ic a lly p er f or m ed by s up p l ier s or tra d e b u y ers . V ert ic a l in te gr at i on h as a n um b er

si
of a dv a n ta g es an d d i s adv a n t a ges w he n c o mp ar e d t o c o nc e ntr a t i ng i n a s i ng l e
bus i n es s fu nc t i o n.
er
Forw a rd Int eg r at i on
In m any c ir c um s t anc es , a f ir m g ro ws v er tic a l ly i n te gr at e d fr o m a s i ng l e tr a d e
c onc e ntr at i o n. O n e m e th o d f or th is t o h a p pe n is f or a m an u fac tur e r or d is tr i b ut or to
iv

ha n d le i ts o wn c o ns u me r d is t r i b ut i on . A c o mp a ny m ay c ho os e t o bu i l d d is tr ib ut i o n
c en tr es a nd op er at e it s o w n d is tr i b ut i on agr ee m en ts w i th r et a i lers , or s e l l d ir ec t ly
to c us t om er s . F or war d i n te gr at i on is w he n a m a nu f ac t ure r tak es c on tr ol of i ts o wn
d is tr i bu t io n .
Un

Ba c kw a rd I nt e gr at ion
W he n a pr o d uc t r es e l l er d ec i des t o b uy its s ourc e or dev e lo p its o wn m an uf ac tur i n g
or d is tr i bu t io n b us in es s , t h is is t he p o l ar op pos i te o f v er tic a l i nt e g rat i on . B ac k w ar d
i nt egr a ti o n oc c ur s w he n a d is tr i bu t or e n ga g es i n m a nu f ac t ur i ng or a r et a i ler
en g ag es i n m an uf ac t ur in g or d is tr i b ut i on ac t iv it i es . T his is a ty p e of v er t ic a l
i nt egr a ti o n us ed by r et a il s t or es th a t s e l l pr iv at e l a be l or s t or e br an ds .
ity

Ben ef its
Th ere are a f ew k ey a dv a n ta g es of v ert ic a l i nt e gra t io n . C o n tro l is on e o f t he m . Y o u
hav e m or e c o nt r o l ov er t he en t ir e fl o w o f g oo ds t i l l t hey r eac h t h e f in a l c l i e nt t h e
mo re ac t iv i ti es y ou p er f or m in th e ma n uf a c tur i ng a nd d is t ri b ut i on pr oc es s . Yo u
m ig ht a ls o be ab l e t o s av e mo n ey . W he n y o u m an u fac tu re it e ms , y ou on ly hav e t o
m

pay f or t h e c os ts of pr od uc ti o n. W h en a w ho l es a l er or r et a i ler b uy s s o me th i n g fr o m
a m an uf ac tur er , th ey a dd a ma r k u p t o th e pr i c e.

Con ce rn s
)A

V ert ic a l i nt eg r a t io n h a s t he dr a wb ac k o f r e q u iri n g y o ur c o mp a ny a nd its le a ders h i p

to b e k n ow l e dg e ab l e i n m ul t ip l e d is tri b ut i o n c ha n ne l ac t iv it i es . M a nu f ac t ure r,
wh o les a l er , a n d r e ta i l er ar e a l l un i q ue pos i ti ons . A ma n uf ac t ur er w ho w a nts t o s e l l
d irec t ly to c us t om er s mus t h av e no t o n ly pr od uc ti o n c a pa b i l it i es , bu t a ls o th e
c ap ac ity t o m ar k et a n d d is tr i b ut e pr o duc ts ef f ic ie n tly . Ex p an d i ng in t o v ert ic a l
i nt egr a ti o n c a n a ls o c om e w it h a h e fty pr ic e t ag . Ty p ic a lly , y o u m u s t e it her
(c

purc h as e ex is t i ng s u p p li er s or merc h an d is i n g b us i n es s es , or c o ns t ruc t a n d ex pa n d

th e m fro m t he gr o u nd up .
 2. 1. 4 T rad it ion al ER P S y st em

e
W ha t d is t i n gu is h es c ur r en t E R P s y s te ms fro m tr ad i t io n a l E RP s y s t ems ? I t's a
fa nt as tic q u es t i on t ha t we g et a l ot o f. Y o u m ig ht f ee l a l it t le ov er wh e lm e d by al l o f
th e a l t ern at iv es ac c es s i bl e to y o u. B ut t h at ' s ok ay ; I' l l try my b es t t o c l e ar u p any

lin
m is u n ders t an d i ngs y o u m i gh t h av e a bo ut w ha t d is ti n gu is h es a m od er n c l o ud E RP
fro m a tr a di t io n a l o ne .

ER P ( en ter pr is e r es o ur c e pl a nn i n g) s of tw a re h as lo n g h ad s tr o n g c ap a b il i t ies f or
ha n d li n g o per at i o na l da t a an d i nc r eas i n g b us in es s ef f ic ie nc y . T o day 's bus i n es s es

On
rec o g n is e t h e i m por ta nc e of E R P s o l ut i ons i n as s is t i ng t h em in s erv in g c us to m ers
thr o ug h ou t th e ir l i fec y c l es an d pr ov id i n g t h e c orr ec t , up - t o- d a te da t a t h ey r e qu ir e
to m ak e b et ter dec is i o ns m or e qu ic k ly .

Tra d it i on a l ER Ps ar e t y p ic a l ly hos te d on a c om p any 's o w n s erv ers an d ma i nt a i ne d

by y o ur IT de p ar t m e nt or a t h ir d - p arty c o ns u l ta n t. T h ey n ec es s it a te c o nt i nu o us
up d at es a n d ex p e n di t ur es i n th e n ec es s ar y h ar dw ar e. O n - pr e m i s es a nd hos te d

ty
ER P s ol u ti o ns ar e t he t wo ty p es of tr a d it i o na l ER P s o l ut i o ns . I n t he f irs t c as e, a
c om p any p ur c h as es a s o ft w ar e l ic e nc e f or its c hos e n s y s t em an d i ns t a ls i t i n its
da t a c en tr e. As a r es u lt , th e c o m pa ny c ov ers t he c os ts of r ep a ir in g a nd ma i nt a i ni n g
th e i nt er n al in fr as tr uc t ur e as we l l as t h e ac q u is i t io n o f a ny ad d it i o na l e q u ip m en t.

si
Cl o ud ER P, o n th e ot her h a nd , is hos t ed i n th e c l ou d ( w it h in a d at a c en tr e, o n a
s erv e r c o nt r o l l ed by s om e on e e ls e , ty p ic a ll y th e ER P pr ov id er) a nd ac c es s e d v i a
er
an I nt er n et c o nn ec ti o n by y ou ( t h e us er). Th ere is no n e ed t o p urc h as e h ard w are
wi t h m od er n E R P, a nd up d at es ar e us u a l ly h an d l ed au t om at ic a lly by t he ER P
v en d or. Th e S of tw ar e as a S er v ic e ( Sa a S) p ara d i gm , in w h ic h t he s up p l ie r d e l iv ers
th e a pp l ic at i on t o c o n s um er s v i a t he I nt er n e t, is us e d i n mo d er n E RP . It a ls o o ff ers
iv

s o lu t io ns t h at g iv e c ap a b il i t ies w it h inc r e as e d s i mp l ic ity of us e, en h a nc i n g t h e

c om p any 's b en ef i ts a n d r et ur n o n i nv es t me n t .
Un

Ben ef its of a C lou d E RP sy st em

Cl o ud ER P s y s t e ms c an he l p y o u av oi d a l l of t h e is s ues l is t ed be l ow . T h ey pr ov id e
a fe w b en e fi ts t ha t r e g u lar ER Ps d o n ot :

1. A l l s y s te ms r ec e iv e i n s ta nt up gr ad es .
2. Th er e is o nly on e v er s i on o f t he tr ut h .
ity

3. Pr od uc tiv i ty h as i nc r e as e d .
4. Ma i nt e n anc e h ea d ac h es ar e r e duc e d.
5. Ac c es s at a ny t i me an d fr o m a ny l oc at i on

B us i n es s es t h at ar e as s es s i n g ER P b us i n es s s of tw ar e fre q ue n tl y f oc us on t h e
pr ic i n g a n d f unc t io n a li ty of th e pr o gr a mm e . W h il e t h e c a p ac i ty o f s of tw ar e t o a da p t
m

to ex is t i n g bus i nes s pr oc es s es is c r i tic a l, c o ns i d er in g t he c os t of u p gra d i ng or

rep l ac i ng y our ER P af ter on ly t wo or t hre e y ears , t he ab i l i ty of s of tw are to ad a pt t o
fu tur e b us in es s d ev e l o pm e nt is j us t as i m por ta nt . T h e un d er ly in g p l at for m o n wh ic h
th e bus i nes s m a na g e me n t s o ft wa re is bas e d d e ter m i nes a la rg e par t of its f ut ur e
)A

ad a pt a bi l i ty .

2. 1. 5 O nl in e E R P S ys t em
(c

Cl o ud E RP is a ty p e of en ter pr is e res o urc e p l a nn i n g ( E R P) s y s t e m t ha t ru ns o n a

v en d or's c l ou d p l atf or m r at h er t h an o n - pre m is es n et w ork s , a l lo w i ng e nt er pr is es t o
ac c es s in f or m a ti o n o v er th e i nt er n et . ER P s o ft war e i nt e gr at e s a nd au to m at es
 c rit ic a l f i n anc i a l a n d op er at i o na l c o mp a ny op er at i o n s , i nc l u d in g i nv e nt ory , or d er,
an d s up p ly c h a in m a na g em e nt , as we l l as p roc ur em e nt , pr o duc ti o n, d is tr i bu t io n ,

e
an d f u lf i l me nt , a nd pr o v i des a s in g l e s ou rc e of d a ta .

G iv en th is s c a le , a ny ER P s y s t e m m us t pr ov id e a c o ns is t en t, u p - t o- da t e v i ew of

lin
da t a to a l l b us in es s u n its , r e ga r d l es s o f w h ere p ers o n ne l ar e w or k i ng . Th es e n e eds
are m et by c l ou d - b as ed E R P as a s erv ic e. B ec a us e t h e s o ft wa r e is ac c es s ed v i a
th e i nt er n et, a ll t h at is r e q ui r e d is a n i n ter n e t c on n ec t i on an d a br o ws er .

Wh at I s Clo ud E R P S of t w a r e?

On
Cl o ud ER P s o ft war e of f er s th e s a me , o r b et te r, c a pa b i l it i es as o n - p re m is es
s y s te ms w it h o ut t h e maj or ity of t h e dr aw b ac k s , s uc h as u pfr o n t l ic enc i ng fe es ,
bec a us e it is hos t ed b y t he ER P v e n do r an d g iv e n as a s e rv ic e t o e nt er pr is es .
" De m an d f or c l ou d- ba s ed E R P s y s t e ms c o nt i nu es t o gro w bec a us e of th e ir c a p ac ity
to ac c es s an d a n aly s e l ar g e v o l um es o f d at a i n ne ar re a l t i me ," ac c ord i n g to ID C's
an a ly s is .
S al es t e ams wi l l hav e r e a l - ti m e i nv en t ory i nf or ma t io n , a nd f i n an c e t ea ms w i l l b e

ty
ab l e to k e ep a c l os e ey e o n c as h ru n way an d r es po n d s w i ft ly t o au d its or o th er
req u es ts f or p er f or m a nc e da ta .

si
Comp on ent s of C lou d ER P Sof t w a re
Core financial and accounting functionality is provided by all cloud-based ERP software. The types of
modules or apps that an organisation implements after that are determined by its industry and specific
business requirements. The following are some of the cloud ERP modules that are available:
er
• Fi na nc i a ls an d ac c o un ti n g
• Hu m an c ap i ta l m a na ge m en t (H CM) an d/ o r H u ma n r es o urc e m an a ge m e n t
s of tw ar e ( HR M S)
•
iv

Cus to m er r e l at i ons h i p ma n ag e m en t ( CR M)
• Inv e nt or y m an a ge m e nt
• O rd er m an a ge m en t
• Pr oc ur e m en t
Un

• S up p ly c h a in m a n ag e me n t
• Pr oj ec t m an a ge m e nt
• Ma t er ia l r e q u ir e m en ts p la n ni n g ( M R P)

Clou d E R P Con ce pt s
It ’s i mp or ta nt t o un d er s ta n d s o m e bas ic c o n c ep ts as s oc i at e d wi t h c l ou d E RP as w e
d iv e d e ep er in to t h e s ubj ec t :
ity

1. Dep lo ym ent st r at eg y : E RP s of tw ar e c a n be i ns t a ll e d o n - pre m i s es or o n

pr iv a te ly ho s t ed s er v er s , or i t c a n be p urc h as e d as a " as a s erv ic e"
ap pr o ac h . C lo u d E RP fu nc t i o na l ity is us u al ly de l iv ere d fas ter , b ut
org a n is a t io ns m us t b u dg e t t im e f or p l an n i ng , d at a m i gra t io n , c us t om is at i o n
m

an d c o nf i g ur a t io n , an d e m pl oy e e t ra i n in g i n bo t h s c en ar i os .
2. Clou d - b as ed ER P : C l ou d - b as e d E R P r ef ers t o en te rpr is e r es ourc e p la n ni n g
s of tw ar e t h at is h os te d of fs it e on t h e ER P v en d or's s erv ers a nd ac c es s e d
v i a a we b br o ws er .
)A

3. O n- pr e mi se s E RP : E RP s o ft war e t h at is i ns t a l le d loc a l ly o n a c om p any 's

c om p ut er s an d s er v er s an d c o n tro l l ed by in t ern a l or h ir ed IT em p l oy e es . Th e
s of tw ar e, as we l l as t he i n fras tr uc t ur e t h at s up p orts i t, is m a na g ed , s tor e d,
an d m a i nt a in e d i n - h o u s e.
4. Hos t ed ER P: T he de p l oy m e nt o f E R P s o ft war e a n d ac c om p any i n g
i nfr as tr uc tur e is ma n ag e d by a c or p ora t io n or a h os t i n g pro v i der . W h en
(c

c om p an i es w a nt to ou t s our c e t h e ir IT op er at i ons , t h ey fr eq u en t ly u s e h os t e d
de p l oy m e nt m o de ls . W h il e t his s o l u ti o n ha s c er ta i n c l ou d b en e f i ts , i t is n ot
tru ly " as a s er v ic e ."
 5. End - t o - end se cu r it y: A l i nk b e tw ee n a c lo ud - b as ed E R P c o m pa ny a n d its
c us t o mer s t h at is s ec u r e a nd e nc ry pt e d.

e
6. Sub s c ript ion li c en sin g: T he C om p any p ay s a f ix ed s u bs c r ip t io n c os t to us e
th e pr o gr am m e a t pr e de t erm i n ed per i o ds (a nn u a lly or m o nt h ly ). Th is pr ic e
us u a l ly c ov er s al l s of tw ar e u pg ra d es a n d m a in t en a nc e , a n d it c an b e

lin
c har g e d per per s o n or p er or g an is at i on ..

Clou d E R P vs . O n - P r em is e s E R P
Th e f ol l ow i n g br e ak d o wn pr o b ab ly r a is es th e q u es t i on : w hy us e t h e c l o ud wh e n o n -
pre m is es E R P s y s te m s pr ov id e e q u iv a l en t f unc t io n a li ty ?

On
A c o m pa ny 's IT s t af f o r a m a na g e d s erv i c e pr ov id er ins t als a nd m an a ges on -
pr em is e s E R P s o ft w ar e . T he c om p any b uy s or r en ts e nt er pr i s e - g ra d e s erv ers ,
ne tw ork i ng , a n d s t or a ge to p hy s ic a l ly ru n a nd h ous e t h e s o ft war e a n d i ts re l at e d
da t a af ter i n it i a l ly l ic en c i n g t h e ba s ic s of tw ar e p la tf or m. M a i nt en a nc e ,
tro u bl es h oo t in g, s up p l em e nt ar y s o ft war e , up da t es , a n d c us t o miz a ti ons a re a l l ex tra
c os ts fo r on- p r em i se s ER P us er s . A d di t io na l c os ts i nc l ud e an t i v ir us a n d s ec ur i ty
s of tw ar e, as w e l l as s t or a g e a nd s erv er bac k u p s ol u ti o ns .

ty
Clou d - b as ed ER P , on t he o th er h a nd , is h o s te d a nd c o nt ro l l ed by th e v e n dor , wh o
d is tr i bu t es t he s o ft war e v ia th e c l ou d as a " as a s erv ic e" m o d el . Th e a p p lic a ti o n,
da t a s t or ag e , un d er ly in g o per a ti n g s y s t em , s erv ers , p hy s ic a l d a ta c e nt re

si
arc h i te c t ur e , an d s ec ur ity up d at es an d f e a tur e up gr ad es are a l l ha n dl e d by t he
v en d or.
er
W h il e t he l oc a t io n o f t he pr o gr a mm e a n d wh o c o ntr o ls i t ar e t he mos t o bv io us
d if fer e nc es be tw e en on - pr e m is es a n d c l o ud ER P , th er e ar e ot h er s i gn i f ic a nt
d if fer e nc es .

Typ e s of C lou d ER P Sof t w a r e

iv

To b eg i n w it h , no t a l l c l ou ds ar e c r e at e d e q ua l . S o me le g ac y E RP s u p pl i ers h av e
up gr a de d t he ir s o ft w ar e to r un fr o m i nt er ne t - c on n ec t e d da t a c en tr e s . B us i n es s e s
wh o us e tra d i ti o na l ER P s y s t ems may mis s o ut o n a l l o f th e a dv a n t ag es o f c l ou d -
Un

bas e d E R P, s uc h a s e as ier u p gr ad es a n d th e p ow er of t h e c l o ud d at a c e ntr e

par a d ig m , wh ic h us es a l ar g e p o o l of res o urc es to s up p ort a p p lic a ti ons r at he r th a n
de d ic at i ng in fr as tr uc t u r e to in d iv i du a l s of tw a re c o mp o ne n ts .

The r e a re a l so mul t ip le t y pe s of c loud ER P sof tw a r e:

• Mul t i- t en ant S a aS : Mu l t ip l e f ir ms c a n s har e a s i ng l e v e rs i o n o f ER P
s of tw ar e an d its ac c om p any i n g i nfr as t ruc t ure . D es p i te t h e fac t t ha t e ac h
c orp or at i o n ut i l is es th e s a me s of tw ar e a nd is h os t e d o n t he s am e s erv ers ,
ity

th e d a ta of o ne c o mp a ny is i n ac c es s i b le to t he d at a o f t h e o th ers . Ty p ic a l ly ,
a r e al c l ou d E R P s o lu t i on is a m u lt i - t e na n t S aa S .
• Si ngl e- t en ant Sa a S: O n ly o ne or ga n is a t io n c a n us e a s i ng l e v ers i on of ER P
s of tw ar e an d i ts r e l at e d in fr as tr uc t ur e. I n ot h er wor ds , priv a te s erv ers
run n i ng a s i ng l e s o ft wa r e i ns ta nc e h os t a n or ga n iz at i on 's d at a. C us t o mers
m

c an c h o os e b e tw ee n hos t in g a pr iv at e or s har e d i ns t anc e w it h s om e c l o ud

ER P v en d or s .
• Pub li c clou d: M u lt i pl e or g an is at i o ns s h are c lo u d c o m pu t in g s e r v ic es th a t
are o wn e d by th e s er v ic e pr ov id er . H ow ev er, th e da ta a nd a pp l ic at i ons of
)A

eac h or g a n is a t io n ar e i nac c es s ib l e t o ot h ers . A maz o n We b S erv ic e s , G o o g le

Cl o ud , M ic r os o ft Az ur e, a n d O r ac l e C lo u d ar e ex am p l es of p u b lic c l ou ds .
• P ri v at e c lou d: A s er v i c e th a t y ou do n' t h av e t o s h are w i th a ny o ne e ls e .
• Hyb r id E RP : A hy b r i d E RP a p pro ac h in t egr at es on - pr e m is es s o ft war e wi t h
proc es s i ng , s t or a g e, a nd s erv ic es pr ov i de d b y a pr iv at e or pu b l ic c l ou d .
(c

8 B en efit s of Cl oud ER P Sof t w a re

 In fras tr uc t ur e an d o per a ti o n al c os ts u p fr on t. O ne o f th e m os t s ig n if ic a nt
adv a nt a ges of a c l o ud - bas e d ER P s o l ut i o n i s t h e ov er al l c os t s av i ngs , w h ic h b eg i n

e
wi t h im p l em e nt at i o n. A c o mp a ny 's up fr on t c os ts f or o n - pre m i s es ER P i nc lu d e
s erv e r pu r c h as es , d at a bas e c o ns tr uc ti o n , firs t d e pl oy m en t, c o ns ul t an ts , I T
ma n po w er, s ec ur i ty , a nd bac k u p.

lin
As a f ir m gr ows , it w i l l i nc ur hi g he r c os ts f or m ai n te n anc e , s pec i a lis t i n - ho us e or
on- c a l l res o ur c es , u p gr a d es a n d u pd at es , as w el l as n ew s erv e rs . C lo u d E R P is
ty p ic a lly 30 % l es s ex p ens iv e t ha n o n - pr em is es E R P. Bus i n es s es e l im i n at e u pfr o nt
i nfr as tr uc tur e ex pe n d it ur es as w el l as ad d it i o na l c os ts for IT e m p loy e es ,

On
ma i nt e n anc e, s ec ur i ty , an d u p gr ad es b ec a us e t h e c l o ud ER P v en d or h os ts an d
ad m i n is t ers th e s of tw a r e on its o wn s erv ers . IT s u pp or t is prov i d e d by t h e pr ov i d er
on an o n go i n g b as is .

Imp le me nt a t io n sp e e d . Th e im p l em e nt at i o n t im e of a ny ne w E R P s o l ut i o n is o n e
of t he m os t s ig n if ic an t r oa d bl oc k s , w h ic h c an h av e a dir ec t im p ac t o n bus i n es s

ty
do w nt i me a n d t im e t o v a l ue — i n on e res e ar c h, a b ou t h a lf o f or g an is at i o ns s ta te d
th e ir i mp l em e nt a ti o ns wer e c o mp l et e d o n ti m e. A c l o ud - b as e d ER P s y s t em c a n
us u a l ly ge t a c o mp a n y u p an d o per a ti n g fa s ter t ha n a n on - pr e m i s es ER P s y s t e m
bec a us e it d o es no t n ee d s e l ec t i ng a n d s et t i ng u p h ard w are o r hi ri ng a n d tra i n in g

si
IT pr of es s io n a ls .

Ac c es si bi lit y. Us er s of c l ou d- b as e d ER P s y s te ms c an ac c es s r e a l - t i me b us in es s
da t a fro m a ny loc at i o n a nd on any dev ic e. Th is m e ans t h at e m p l oy e es ac r os s t h e
er
fir m , r eg ar d les s o f bu s i nes s u n it or l oc at i o n, ar e work i n g w i th t h e s am e d at a an d
c an mak e c h o ic es mor e q uic k ly a n d r e l ia b ly .
iv

S ca la bi lit y. C l o ud- b a s ed ER P s o l ut i o ns en ab l e s c a l in g a f ir m e a s i er by e l im i n at i ng
th e c h al l e ng es of ins t a ll i n g ne w s erv ers f or m or e us ers , r e gi o ns , or s u bs id i ar ies .
As a c o m pa ny ex p an d s , s o d oes its c l o ud E RP .
Un

W it h ou t a dd i n g mo r e h ar dw ar e, a n or ga n i s at i on c a n s t art w i th t he m os t bas ic ,
fu n da m en t al fu nc t io ns an d ex p a nd as ne e d ed . A c lo u d E R P s ol u ti o n a ls o al l ows
us ers a l l ov er t he wor l d t o ac c es s b us in es s da t a by j us t c o nn ec t in g t o th e in t ern e t.
B ec a us e no l oc a l s er v er s ar e r eq u ire d , ne w u n its c a n b e bro u g ht u p fas t w h e n a
fir m gro ws t hr ou g h m er g er s an d ac q u is it i o ns . Cl o ud v e nd ors of t en p os s es s da t a
c en tr es al l ov er t he wor l d a nd s t ore e ac h c us t o m er's d at a i n v ar io us l oc at i ons ,
a ll o wi n g t he m t o pr ov i de be tt er a n d m or e r e li a b le s erv ic e t h an mos t e nt er pr is e s
ity

c ou l d h a n dl e on th e i r ow n. C lo u d s o ft war e pr ov i ders ty p ic a l ly ai m for 9 9. 99 9

perc e nt av a i l a bi l i ty , w h ic h c or r es p o nds to l es s t ha n e i g ht mi n ut e s o f u n ex p ec te d
do w nt i me per y e ar f or c l ie n ts .

Cus tom iz at ion s and ad apt abi lit y ar e t w o t h in gs th at c o m e t o m i nd w h il e th i nk i ng

m

ab o ut c us t o miz a ti o ns . J us t as c l ou d - bas e d ER P c an s c a le w it h a n or g an is at i on , it
c an a ls o b e mor e eas i ly c us t om is ed t o m e e t s p ec if ic bus i n es s g o a ls , ei t her fr om
th e s tar t or as a c om p any gr o ws a n d ev o lv e s . Wh i l e on - pr e mi s es ER P s o ft wa re c a n
be c us t o m is e d, th os e adj us t m e nts a re bo u n d t o t he c urr en t v ers i o n o f t he s of tw ar e
)A

an d m ay b e di ff ic u lt t o r e im p l em e nt i n f ut u re v ers io ns , es p ec i al l y i f i nt eg ra t io ns
wer e dev e l op e d i n - h o us e . T h is is o ne o f t h e pr i m ary r eas o ns w h y s om e c o mp a ni es
ref us e to u p gr a d e th e ir o n - p r e m is es ER P s y s te ms a nd c o n t in u e to us e o ut d at ed
tec h no l og i es . In a dd i t i on , c l o ud E R P s o l ut i ons te n d t o c o n nec t ef fec t iv e ly wi t h
ot h er c lo u d - b as ed pr o duc ts , a nd n ew m o du l es c a n be a d de d t o a c l ou d ER P s y s t em
wi t ho ut r e qu ir i ng a ny do w nt i me o r a d di t io n a l h ar dw ar e. T h is ty pe o f a gi l i ty a l lo ws a
(c

c om p any t o be pr o ac tiv e r at h er th a n r eac t iv e, a da pt i n g mor e s wi ft ly t o in d us try

c ha n ges , c us to m er tr e nds , u nf or es e e n ev en t s , an d o th er f ac t ors .
 Upg ra de s . C l o ud ER P c o mp a n ies o ft e n ha nd l e a l l s y s t e m u pgr a des a n d c ha n g es
on a c o nt i nu o us bas is , k e ep i ng u p wi t h c h a n g in g bus i n es s n e e ds a nd e ns uri n g t h at

e
c us t o mers ar e us i ng th e m os t c urr e nt t e c hn o l ogy . Up d at i ng o r u pgr a d in g o n -
pre m is es ER P s of tw a r e t ak es l o ng er an d may n ec es s i ta te th e ap p oi n tm e nt of
c on tr ac t ors to ov er s ee th e pr oc es s . Up d at es to c l o ud ER P c an t ak e as li tt l e as 30

lin
m in ut es a n d ar e fr e q ue n tly per f orm e d d ur i ng of f - p e ak h ours t o av o id bus i nes s
d is ru pt i o ns .

On
S ec ur i ty , c o m p li a nc e , an d d is as t er r ec ov ery are a l l i m po rt an t c o ns i der a ti o ns . M a ny
fir ms ar e u nd er s t a n d ab ly c o nc er n e d ab o ut e ntr us t i n g t h e ir bus i nes s d at a t o an
ex t er na l s o ur c e. C lo u d - b as e d ER P v e nd ors , o n t h e ot h er ha n d, m ay prov i d e be tt er
s ec ur i ty a n d c o m pl i a n c e t ha n b us i nes s es c ou l d o t her w is e af fo rd . F urt h erm or e, a
c om p any m ay r es t as s ur e d t h at its da ta is a lw ay s b ac k e d up , a n d t ha t t he v en d or
has dis as ter r ec ov er y p la ns i n p l ac e .

ty
O n- pre m is es ER P s o l ut i ons c ar r y t h e d a ng e r of c a t as tr op h ic d at a l os s in t he ev e nt
of har d war e or s o ft war e f a i lur e , n at ur a l dis as ter , f ir e, or bre ak - i n u n l es s
en t erpr is es h av e a d is as t er rec ov ery a n d bus i n es s c o nt i nu i ty p la n i n
p lac e. E nt er pr is e - gr a d e s ec ur i ty an d e n d - t o- e n d e nc ry p t io n of da t a be tw e en t he

si
v en d or an d th e or ga n is at i on ar e c om m o n f ea t ures o f c lo u d prov i ders . Co m pa n i es
are r es p o ns i b l e for m an a g in g c l o ud ER P u s ers ' i d en t it i es an d a c c es s , as w e l l as
s af e gu ar d in g d ev ic es s uc h as PCs an d c e l l p ho n es .
er
St or a ge ac c es s an d r e s i l ie nc y I f o n - pre m is e s h ar dw ar e d i es , mov i ng da t a t o a n e w
s tor a ge s y s t e m c o u ld tak e a lo n g t im e a n d c os t a l ot o f m o ney . Da ta is s t ore d in
th e c l ou d- b as e d E R P pr ov i d er 's d at a c e ntr e s , w h ic h are fr e qu e nt l y re du n d an t an d
ge o gr ap h ic a l ly d is tr ib ut e d. T his is a ls o a dv an t ag e ous in ter ms o f prov i d i ng in t ern et
iv

ac c es s t o c or p or a t e i nf or ma t io n a n d da t a, wh ic h is b ec om i n g i n c reas i n g ly c r uc ia l
as m ore e m p loy m e nt a nd o p er at i ons s h i ft o n l i ne a n d bus i n es s es s tr iv e t o a ut o m at e
an d s tr ea m l i ne p r oc e d ur es .
Un

Clou d E R P Ch all en ge s

W h il e t he r e is a c l e ar tr en d t ow ar d gr ea ter c lo u d a do pt i o n, t her e ar e s o m e
po t en t ia l pr o b le ms t ha t c om p an i es m ay f ac e :

Sy s t e ms t h at ar e no l on g er in us e. If a l a rge r c o m pa ny h as b e en us i ng a n on -
pre m is es E R P s y s t e m for a lo n g ti m e a nd w a nts t o s w itc h to c lo u d - bas e d E R P, t he
ity

tra ns it i o n c an be d i ff ic u lt a n d ti m e - c ons u m in g.

Ch a ng e is m et w i th r es is t anc e . K ey s t ak e ho l d ers may pus h b a c k a ga i ns t lar g er

en t erpr is es w it h ex t e n s iv e I T an d a d mi n is tr at iv e te a ms . A d m in is t rat ors l os e s om e
c on tr ol ov er o p er a t io ns t ha t b ec om e au to ma t ed wh e n E R P s o ftw ar e is m ov e d
m

ou ts id e , a n d IT t ea m s l os e c o ntr o l ov er s om e o per at i o na l ac t iv it i es w h en t he
v en d or m an a ges a ll m a i n te n anc e a n d i nfr as t ruc t ur e.

Reg ul ato r y adh e ren c e . C om p an i es w it h p ar tic u l arly s tr i n ge nt c y b er s ec u ri ty r u les ,

)A

pro h i b it i ons o n p ut t in g c us t o me r da ta in t he c lo u d, a n d r e gu l a tory c o m p l ia nc e

d if fic u lt i es may n ot b e ab l e to r e a p t h e f u l l b en e fi ts of a c l ou d- bas ed E R P s o lu t io n.
No n et he l es s , l ar g e s o f tw ar e - as - a- s erv ic e pro v i ders hav e m a de s i gn if ic a nt pr o gr es s
i n c o m p ly i n g wi t h r e g u l at i ons s uc h as H I P AA an d G D PR , an d c a n u s ua l ly m ee t da ta
s ov er e i gn ty an d l oc a l iz at i on d em a nds , s o do n' t as s u m e y o u'r e s t uc k w i th o n-
pre m is es E R P.
(c

Net Su it e E R P
Ne t Su i te w as d es i gn e d fo r th e c l o ud an d s u pp or ts s m a ll t o m i ds iz ed en te rpr is es i n
a v ar ie ty o f i nd us tr i es , pr ov id i n g r e a l - t i me in s i gh ts , im pr ov e d c us to me r ex p er i enc e ,
 an d l o wer s up p ly c h a in c os ts by i n te gr at i ng a n d a ut o ma t in g k ey f in a nc i a l a n d
op er at i o na l o p er a t io ns .

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Che c k Yo ur U nd er st a nding

Fil l in the b la nk s:

1) ... .. .. .. .. .. .. .. .. .. .. . was des i g ne d f or th e c l o ud a n d s up p orts s ma l l t o m i ds iz e d

en t erpr is es i n a v ar i et y o f i nd us tri es

On
2) ... .. .. .. .. .. .. .. is a l i nk b et we e n a c l o ud - b as e d ER P c om p any an d i ts c us t o mers
th at is s ec ur e a n d e nc r y pt e d.
3) ... .. .. .. .. .. .. .. .. . s y s t e ms h av e be e n d oc u m en t e d as o ne of t he mos t e ff ec t iv e way s
to b e g in a u to m at i ng b us in es s pr oc es s es .
4) .................... is a broad term that includes broadcasting, telephone communication, and internet
communication, among other things.
5) ... .. .. .. .. .. .. .. .. is t h e pr oc es s of em p l oy i n g t e c hn o l ogy an d o t her m et h ods t o h e l p

ty
bus i n es s es r un m or e s mo o th ly .

Tru e/ Fa l se

1) Th ere ar e o n ly t wo ty p es of c lo u d E R P s of tw are .
si
2) B us i n es s es t h at ar e a s s es s in g E R P b us i n es s s o ft war e fr e qu e nt ly f oc us on t h e
er
pr ic i n g a nd f u nc t i on a l i ty of t he pro gr a mm e .
3) Core financial and accounting functionality is provided by rare cloud-based ERP software
4) Healthcare pr ov i d es s tr i ng e nt r e q u ire m e nts o n w ha t m et h ods s ho u ld be us e d a nd
ho w pr oc es s es s h o u ld be c ar r ie d o ut
5) Th ere ar e f o ur d if fe r e n t f or ms o f B P A
iv

Su mm ar y
Un

• Ma n go h as a c or e o f des i gn ers a nd pr od uc t i on fac i l i ti es c ap a b le of r a p id ly

pro d uc in g ne w f as h io n des i g ns . Ma n go , on t he ot h er ha n d, wo u ld no t b e ab l e t o
s toc k it s s t or es w it h t r en dy fas h i on tre n ds as ra p i dl y w it h ou t its s op h is t ic at e d
i nf or ma t io n s y s te ms . T o pr om o te i nv en t ory re p le n is h m e nt , t h es e in f orm a t io n
s y s te ms as s is t f in e l y c a l i br a t ed bus i n es s pr oc es s es th at or ga n is e i te ms
de p en d i ng o n s ty l e a n d c us t o me r tas tes .
ity

• Y ou 'l l w a nt t o d is c ov e r h ow in f orm a ti o n s y s t ems c an a i d y o ur or ga n is a t io n as a

ma n ag er . Y o u ' l l n e ed to k no w w ha t k in ds o f in fo rm at i o n s y s t ems are av ai l a bl e
an d w ha t t hey c a n d o f or f ir ms .
• By d e l iv er i ng ac c ur a t e a nd u p - to- d at e d at a a n d pe rf or mi n g a na l y tic ac t iv it i es ,
ma n ag e m en t in f or m a ti on s y s t ems c a n as s is t y o u i n m ak i ng s o un d d ec is i ons .
m

Y ou m us t ens ur e th at t he ma n ag e me n t i nf or ma t io n s y s t em y ou s e l ec t is
c om p at i b le w i th t h e i nf or ma t io n f or ma ts u s ed in y our f ir m a n d i nc l ud es t he
c ap a b il i t ies y o u r e q u ir e. Th e b as ic da t a ac c es s ib l e fro m y o ur c o mp a ny 's
ac t iv it i es an d r ec or ds c a n b e s truc t ure d i n to r e po rts by s u it ab l e m an a ge m en t
)A

i nf or ma t io n s y s t e ms , pr ov i d i ng y ou w it h d ir ec t i on fo r y o ur d ec is i ons . Bus i n es s
Pr ac t ic e A ut o ma t io n ( B P A) is t he pr oc es s of e m pl oy i ng t ec hn o l o gy an d o th er
me t ho ds t o he l p b us in es s es r un mor e s m o ot h ly , a n d it is th e s u bj ec t o f to d ay 's
gu i d e. We ' ll l ook at t h e v ar i ous as p ec ts o f B P A, as w el l as t he i n fl u enc e it has
on b us in es s es , as w e l l as h o w it m ay be ap p l ie d a nd t he us u a l to o ls of t he
tra d e.
•
(c

W he n y ou lo ok at t h e t hr ee es s en t ia l " b u i l d in g b l oc k s " o f a bus i nes s proc es s

au t om at i o n s y s t e m t ha t y o u j us t r ea d ab o ut , th er e ar e s om e is s ues t h at th ey ar e
des i g ne d t o a ddr es s , j us t l ik e a ny ot he r s y s te m t h at is i ntr o d uc e d to h e lp
 i nc re as e or ga n is at i on a l ef f ic i e nc y . T hes e is s ues t h at BP A ans wers w i l l b e
ref err ed t o as as p ec ts of t h e p la n t h a t f irms mus t d ev e l o p i n or der to s uc c e ed .

e
Act iv it y

lin
1) Pr e pa re a c o mp ar a tiv e c h ar t of d if fer e nc e b et we e n Tra d it i o na l a n d O n l i ne E PR
Sy s t e m

On
Q ue sti on s & E xe r ci s e

1) De f in e th e Ro l e of s y s te m / in f orm a ti o n s y s te m i n v al u e ge n era t io n w it h in
org a n iz a t io n a l l ev e l .
2) Dis c us s t he A ut om a ti o n Sy s te m S tr uc t ur e i n bus i n es s pr oc es s .
3) Ex pl a i n th e I nt e gr a te d b us in es s m o du l es - ma nu f ac t ur in g a n d s erv ic e i nd us try .
4) Dis c us s t he Tr a di t io n a l E R P Sy s te m .

ty
5) Dis c us s O n l i ne ER P S y s te m .

si
G lo ss a ry

• AI Aut om at i on F ir s t ly , t her e is AI Au t om a ti o n . As y ou r ea d e ar l ier , ar t if ic ia l

i nt e ll i g enc e is t h e m os t c om p l ex m et ho d o f b us in es s pr oc es s au t o ma t io n ;
er
ho w ev er , w e ar e dis c u s s i ng t h es e me th o ds i n a lp h ab e tic a l or d er r a th er t ha n
ac c or d i ng t o t he ir o r d e r o f s i m pl ic i ty . Th e w a y t ha t th is is d on e is b y i n te gr at i ng
a ll of y o ur b us in es s s y s te ms t hro u gh t h e i m p l em e nt at i o n of ar t if ic i a l
i nt e ll i g enc e. T h e be n e fi t of t h is m et h od is th at it is on e o f th e m os t e ff ec t iv e
iv

way s t o c o mp l e te ly r e p lac e t he h u m an e m p l oy e es t h a t ar e i nv olv e d i n a

par t ic u l ar pr oc es s or s et o f tas k s .
• IT S e rv ic e s E xp an sio n M u l ti p l e s ou rc es s t a te t h at IT Au to m at i o n has be e n
c ons is te n tly on t h e r is e a nd c a n pr ec i pi t at e s i gn i fic a nt j u m ps i n pr od uc tiv i ty .
Un

Th is is a mor e m a nu a l a p pr o ac h to t h e pr oc e s s t ha t r e qu ir es y o ur I T t e am t o
c rea t e a way f or a l l o f th e ex is t i n g s y s te ms w it h i n y ou r bus i n es s to be mor e
i nt egr a te d a n d s tr e a m l i ne d. T h is m ay be mor e r es ourc e - i nt e ns iv e fr om a ti m e
s ta n dp o in t. Ex is t i ng A PIs an d s o ft war e ov er l ap c an b e us e d to mak e a l l of y o ur
s y s te ms m or e i nt er c on nec t ed .
• Bus in e ss p ro c es s m an ag em ent sy st em s are d oc u m e nt ed as o ne of t he m os t
ef fec t iv e m et ho ds t o ge t s t ar t e d w it h bus i nes s pr oc es s a ut om a t i on , a n d t hey
ity

req u ir e t h e l eas t am o un t of i nv es t m en t in t er ms o f bo t h mo n ey a nd t i me . T h e re
are to o ls t ha t ar e d e d ic a te d t o d o in g t h is bu t, it c an als o b e d on e m a nu a l ly
us in g a s t a nd ar d s pr e ads h ee t or w or d doc u me n t if th a t is a b et t er f i t f or y o ur
bus i n es s .
• Sou r c e Ap pl ic at ion: To be g i n, d at a m us t be ex tra c t ed fr o m a n org a n iz a t io n ’s
fro nt - e n d bus i n es s a p p lic a ti o n. T h is m ig h t be a pu rc h as e or der fro m a n E R P
m

s y s te m, or s o me th i n g l ik e a r et a i l s tor e ’s m on t hly s al es f i gur es fr om a po i nt - o f-

s a le s y s t e m. O nc e t h is d at a is p u ll e d, t h e b us in es s i nt e gr at i on s o l ut i on w i l l
pre p ar e it t o b e tr ans m it te d t o t h e ex ter n a l bus i n es s pa rt ner .
• Dat a Fo rm at : As me n t i on e d ab ov e, no t a l l d at a is s t a nd ar d iz e d w he n i t res i des
)A

i n a b us i nes s ’s ap p l ic at i on . F orm a ts v ary , an d s o th e da ta m us t b e c onv er te d

i nt o a s t an d ar d iz e d for ma t f or tra ns fer in t o th e tar g et a p p l ic a t io n o f t he ex t ern a l
bus i n es s p ar t n er . As s uc h , w he n org a niz at i ons as s es b us in es s in t egr at i o n
s o lu t io ns , t h ey mus t p ay at te nt i o n t o th e ty p es of i nt e gr at i on t ha t are s u p po rt ed ,
es p ec i al ly i f t hey s o u r c e a n d/ or s el l m at er i a ls w it h in t ern a ti o na l s up p ly c h a i n
par t ner s .
(c

• Tr an spo rt P ro t oc ol: Na tur a l ly , t h e c o m mu n ic at i on c ha n ne l – or pr ot oc ol – m us t

be agr e ed up o n by b o t h p ar t i es t o ex c ha n ge i nf or ma t io n. T h ere are a nu m ber of
 adv a nc e d pr o toc o ls a v a il a b le – s uc h as SF TP , A S 2, a n d HTT Ps – to f ac i l it at e
da t a ex c ha n g e, t h ou g h tr a di n g p ar tn ers an d s o m et i mes e nt ir e i nd us tri es wi l l

e
of te n d ic t at e t he tr an s por t m ec h a n is m t o b e us e d. As s uc h , c om pa n i es s ho u ld
ens ur e t h at th ey s el e c t a bus i n es s i n te gr a ti o n s o l ut i o n t ha t s up por ts al l th e
pro t oc o ls th at th e ir t r a d in g p a r tn ers r e qu ir e, wi t h t he fl ex i b il i ty t o i nt e gra te n ew

lin
c om m u nic a ti o n pr ot oc o ls as th ey a p pe ar .

• Ta rg et App li c at i on: T he fi n a l s t ep i nv o lv es th e t ar ge t a pp l ic at i o n of t h e tr ad i n g
par t ner . Th e t ar g e t a pp l ic at i on mus t b e ab l e t o rec e iv e an d pr o c es s th e d at a

On
th at w as s e nt , m ak e i t r ea d a bl e , an d i nt e gra te t h e i nf or m a ti o n i nt o t he
rec ip i e nt ’s c or e b us in e s s s y s t ems .

Furt he r R ea din gs

• Sy s t e ms A n aly s is an d Des i gn , Sc ot t T il l ey

ty
• B un d l e, Sy s t ems An a l y s is a nd D es i gn , L oos e - le af V ers io n, 12 th + M in dT a p,
1 ter m Pr in te d Ac c es s Car d, Sc ot t T i l le y

Ans w e r s t o Che c k Y o ur Und e r st a ndi ng

Fil l Up s si
er
1) Ne t Su i te
2) E nd- t o- e n d s ec ur i ty
3) Cor p ora t e pr oc es s m a na g em e nt
4) Telecommunications
iv

5) B us i n es s Pr ac tic e A u t om a ti o n ( B P A )

Tru e/ Fa l se
Un

1) Fa ls e
2) Tru e
3) Fa ls e
4) Tru e
5) Tru e
ity

Unit - 3 .1 Sy st em A na l ys i s and D e sig n

m

Le ar nin g O b j ect i ve s:

Afte r st ud yin g t h i s c hapt e r, y ou w il l be a ble to:

)A

• De f in e t he Sy s t e m A n a ly s is an d D es i g n C on c ep ts .
• Dis c us s t he P has es o f S D LC .
• Ex pl a i n th e v ar i ou s r e as o ns f or c o nd uc ti n g s y s te m a na ly s is .
• Dis c us s Ma n ag e m en t r ol e i n s y s t em a na ly s is t o c a te r c o m pe ti t io n an d
i nc or p or a t in g l a tes t te c hn o l ogy .
•
(c

Dis c us s R o le o f Sy s t e m A n aly s t .
• Ex pl a i n th e S of tw ar e d ev e l o pm e nt f ir ms r o le i n E R P/ B us in es s I nt e ll i g en t
Sy s t e m
 • Des c r i b e t h e S A P, O R AC L E, B A A N, P E O P L E SO FT , MI CRO S O FT an d
G O O G L E r o l e i n E R P /B us i nes s I nt e l l ig e nt S y s te m

e
Int rodu ct ion

lin
Sy s t e m an a ly s is is a m et ho d of o bs erv in g a s y s t e m i n o rd er t o inv es ti g at e or
en h anc e it. It is us e d i n th e f i el d o f i nf or m at i on t ec hn o l ogy , wh er e c o m pu t er - b as ed
s y s te ms m us t b e d es c r i be d i n or de r t o b e ex a m i ne d b as e d o n th e ir s t ruc tu re a n d
des i g n.

On
Sy s t e ms an a ly s is in t he I nf or ma t io n T ec hn o lo gy do m a in m i gh t i nc lu d e l o ok in g at
en d- us er us a ge o f a p r od uc t b u n dl e or it e m, as we l l as lo ok i ng a t s ourc e c o de fr o m
to p t o bo tt o m to c har a c ter is e th e s y s t e ms us ed in pro gr a mm i n g.

Ex per ts in s y s te m an a ly s is ar e fr e q ue nt ly c a l le d up o n t o ex a m in e s y s te ms c r it ic a lly
an d rec o m me n d n ec es s ar y a dj us t me nts . . Sy s te ms a n a ly s is is us e d b o th ins i d e a nd
ou ts id e t h e b us in es s wor l d t o d et er m in e w h et h er a s y s t e m is p os s i bl e o r ef f ec t iv e

ty
wi t hi n th e c on t ex t of its ov er al l d es ig n an d to s h ow th e o pt i ons av a i l ab l e to th e
em p l oy in g i n dus tr y or an o th er p ar ty .

As a r es u l t, s y s t em a n a ly s is is u n iq u e t o s y s te m of f ic i a ls , w h o m a i nt a in s y s t ems o n

si
a da i ly b as is , a n d t h e i r j o bs ty p ic a lly e n ta i l a h ig h- l ev e l v i e w on a s y s t em in or d er
to d e ter m i ne its g e ner a l v i ab i l ity in ac c or d an c e w it h i ts p la n.
er
S yst em s An a ly si s

It is th e pr oc es s o f g at h er i n g an d i nt er pr et i ng d at a, f i nd i n g f a u lt s , a n d bre ak i ng
iv

do w n a s y s te m in to its c o ns t i tu e nt p ar ts .

A s y s t e m a na l y s is is c ar r ie d o u t to i nv es t ig a te a s y s te m or i ts c o m po n en ts i n o rd er
Un

to d e ter m i ne its g o a ls . It is a pr ob l e m - s o lv i ng s tr a te gy t ha t e nh a nc es t h e s y s te m
an d g uar a nt e es t h at a l l of th e s y s te m's c o m po n en ts work t og e th er to ac h iev e th e ir
go a ls .

S yst em s D e sig n
ity

It is t he pr oc es s o f s pec i fy in g t h e c o m po ne n ts or m od u les of a n ew b us in es s
s y s te m or r e pl ac i ng a n ex is t i n g s y s t em i n o rde r to m ee t c er ta i n n ee ds . B ef or e y o u
be g i n p l an n in g , y o u mus t f ir s t c o m pl e te ly gras p t h e o l d s y s t e m an d id e nt i fy h ow
c om p ut ers m ay b e e m p loy e d m os t e ff ec t iv e l y i n or d er to r un eff ic i en t ly .

Th e go a l o f s y s te m d e s i gn is to f i gu re o u t ho w t o ac h i ev e t h e s y s te m's g o al .
m

Th e m ai n f oc us of Sy s te m A n a ly s is an d D es i gn ( S AD) is o n−
)A

• Sy s t e ms
• Pr oc es s es
• Tec hn o l ogy

W ha t is a Sy s t e m?
(c
 Th e w or d " s y s t e m" c om es fr o m th e G r e e k wor d " s y s t e m a," w h ic h i m pl i es " an
s truc tu re d r e l at i ons h i p b et we e n an y c o ll ec ti o n of c om p on e nts f o r t he pur p os e of

e
ac h i ev in g a c o m m on g oa l ."

lin
" A s y s t e m is a n or ga n is ed gr ou p i ng o f i n ter de p en d en t c om p o ne nt s l ink e d t o ge t her
ac c or d i ng t o a p l a n to ac h i ev e a c er ta i n o bj e c tiv e ," ac c or d i ng t o t h e d ef i ni t io n .

Con st ra int s o f a S ys t em
Thr ee f u nd a m en ta l li m it a ti o ns m us t b e pr es e nt in e ac h s y s te m .

On
• A s y s t em mus t h av e s om e s tr uc t ur e a nd be h av io ur t ha t is in te n de d t o
ac c o m p l is h a s pec i fic go a l.
• Th e s y s te m's c o m p on e nts m us t be in t erc o n n ec t e d an d i n ter d ep e nd en t.
• Th e or ga n iz a t io n's ai m s t ak e prec e de nc e a bo v e th e o bj ec t iv es of i ts
s ubs y s t ems .

ty
For i ns ta nc e, a tr af f ic ma n ag e m en t s y s te m , a p ay ro l l s y s t em , a n a ut o ma te d l i br ary
s y s te m, an d a h u ma n r es o ur c e i nf or m at i on s y s te m.

3. 1. 1 S y st em An al y si s and D e sig n Con c ep ts

si
Th e ter m " s y s t e m" is c om m o nly us e d . W h en re f err in g t o i te ms or proc es s es , it has
er
bec o me p op u la r to u s e t he w or d s y s t em to ad d a c on te m p ora ry f l a ir. Ex e rc is e
s y s te ms , i nv es t m en t s y s te ms , d e liv ery s y s te ms , i nf or m at i on s y s te ms , e duc a ti o n
s y s te ms , c o mp u ter s y s te ms , a nd s o o n a re a l l m e nt i on e d. A ny gr o u p o f c o m po n en ts
th at w ork t og e th er t o a c h iev e a s h ar ed go a l o r re as on is r ef err e d to as a s y s t em .
iv

Def in itio n:
Th e wor d s y s t em c o mes f r o m t he G r eek wor d s y s t em a , wh ic h re fe rs t o a w e l l -
org a n iz e d i nt er ac t i o n b et we e n wor k i n g p arts or c o m p on e nts . A s y s t e m ex is ts
bec a us e i t is i nt en d e d t o ac c o mp l is h o ne o r m or e g oa ls . We i nt erac t w i th th e
Un

tra ns por t at i on s y s t e m, t h e p ho n e s y s te m, t h e ac c ou n ti n g s y s te m , th e
ma n uf ac t ur i ng s y s t e m, a n d, f or m or e th a n t wo d ec ad es , th e c o m p ut er s y s t em on a
da i ly b as is .

S i mi l ar ly , we r e fer to th e b us i nes s s y s te m a nd th e or ga n is a t io n as a s y s t em m ad e
up of in t er c o n nec t e d d e par t me n ts (s u bs y s te ms ) lik e pr o d uc t i o n, s al es , h um a n
res o urc es , a nd an i nf or ma t io n s y s t e m. As a s ta n da l o ne un i t, n o ne of th es e
ity

s ubs y s t ems ar e v er y us e f ul . T h e f ir m, o n t he o th er ha n d, m ay work s uc c es s f u l ly

an d pr of i t ab ly w he n t h ey ar e pr op er ly c o or di na t ed .

Th ere are ov er a hu n d r ed de f in i t io ns o f th e wor d s y s t em , b ut t h ey a l l s e e m to p o i nt

to t h e s a me t h i ng : a s y s t e m is a n o rga n is ed gro u p in g o f i nt er de p en d en t
m

c om p on e nts l i nk ed to g et h er ac c or d in g to a p l an to ac h iev e a c ert a i n g o a l. P hy s ic a l

e le m en ts ( e ng i n es , a ir c r af t w in gs , c ars ), ad m in is tra t iv e s t e ps ( p l a nn i n g, or g an is i ng ,
an d re g u la t in g) , or a s y s te m i n a mu l ti l ay er s tr uc tur e ar e a ll ex a m p les o f
c om p on e nts . T h e c o m po n en t c o ul d b e b as i c or a dv anc e d, s i m p l e or c o mp l ex . A
)A

s i ng l e c o mp u ter w i th a k ey bo ar d, m e m ory , a n d pr in te r, or a s er i es of in te l l i ge nt
ter m i na ls l ink e d t o a ma i nf r a m e, ar e ex a mp l es . I n any i ns t a nc e , e ac h c o mp o ne n t is
a p art o f t he ov er a l l s y s te m a n d mu s t c o ntr i bu t e to t h e s y s te m's a b il i ty to f u lf i l its
i nt en d ed a i m. F or t h e d es i g n of a s uc c e s s f u l s y s t e m, t his or i e nt a ti o n nec es s it a tes
an ord er ly ar r a ng e me n t of t he c om p on e nts .
1. As a r es u lt , s t udy i ng s y s te ms c o nc e p ts h as t hre e m aj or i mp l ic at i o n s :
(c

2. A s y s t em mus t b e dev e lo p ed t o ac c o mp l is h a c ert a i n g oa l .

3. In ter d ep e n de nc e a n d in t erre l at i o ns h i ps be tw e en th e c o mp o ne n ts ar e
req u ir ed .
 Th e ov er a l l a ims o f t he or g a nis a ti o n tak e prec e d enc e ov er t h e obj ec t iv es of its
s ubs y s t ems . Co m p ut e r iz in g p er s on n e l ap p l i c at i ons , fo r ex a m p le , m us t a d he re t o

e
th e or ga n iz at i on 's pr i v ac y , c o n fi d en t ia l i ty , an d s ec ur ity po l ic ies , as m us t m ak i n g
c hos e n d at a ( s uc h as pay r o l l) av a il a b le t o t h e ac c ou nt i n g d iv is i o n on de m an d .

lin
Cha r a cte r ist i cs of a S yst em

O ur d e fi n it i o n of a s y s t e m i m p li es t h at al l s y s t e ms h av e t he f o l l ow i ng
c har ac ter is t ic s : or ga n i s at i on ( or d er), i nt er ac ti o n, i nt er de p e n d e nc e , i nt eg ra t io n, a n d
a c or e go a l .

On
1. O rg aniz at ion
S tr uc t ur e a n d or d er a r e i mp l i ed by or g an is at i on . T h e arra n ge m e nt o f c o m p on e nts
a ids i n t he ac h i ev e me n t of g o als . T h e or ga n is at i on s tr uc t u re i l lus tr at es th e
h ier arc h ic a l li nk s in t h e d es i g n o f a c o m pa ny s y s t e m, f or ex a mp l e, s tar t in g w it h t he
pres i d en t a t t he to p a n d l e ad i n g d ow n t o t he b lu e - c o ll ar w or k ers . A s y s t e m -
s ubs y s t em r el a ti o ns h i p is d ep ic te d , th e a ut hor i ty s truc t ure is d ef i ne d, t h e for m a l
fl o w of c o m mu n ic a t i o n is s p ec i f ie d , an d t h e c ha i n of c o m m an d is for m a l is e d. A

ty
c om p ut er s y s t em is b u il t ar ou n d an in p ut dev ic e, a c e n tra l pr o c es s in g u ni t, a n
ou t pu t d ev ic e , a n d o n e or m or e s tor a ge u ni ts , as w el l as o th er c om p on e nts . Wh e n
l ink e d to g et h er , t h ey c om pr is e a c o m pl e te in f or ma t io n - pro d uc t i o n s y s te m.

si
2. Int e r act ion
Th e way eac h c o m po ne n t i nt er ac ts w it h t h e ot h er c o m po n en ts of t h e s y s te m i s
ref err ed to as i nt er ac ti o n. Pu r c h as in g , fo r ex a m p le , m us t work wi t h pr od uc ti o n,
adv er tis i n g w it h s a l es , a n d p ay r o l l w i th s t af f i n a c o m pa ny . T o s o lv e a pr o b le m i n a
er
c om p ut er s y s te m , t h e c e ntr a l pr oc es s i ng u n it m us t c o m mu n ic at e w i th t h e in p ut
dev ic e. T h e ma i n m e mo r y , i n t ur n, s t or es p rog ra m mes an d d at a t ha t t he a ri t hm et ic
un i t u t i lis es to d o c a lc ul a ti o ns . T h e c om p ut er's p erf or ma nc e is en a b le d by t he
i nt erp l ay b et w ee n t hes e c o mp o ne n ts .
iv

3. Int e rd ep end en c e
I nt er de p en d enc e r ef e r s t o th e f ac t t ha t d i f fer e nt s ec t i ons o f a n org a n is a t io n or
c om p ut er s y s t em ar e r e l ia n t on o n e a n ot h er. Ac c or d in g t o a s t rat e gy , t hey ar e
Un

c oor d i na t ed a n d l ink e d t o g et her . For o pt i m a l f u nc t i on i n g, o ne s u bs y s t e m r eq u ir es

th e i np ut o f an ot h er s ubs y s t em : t h at is , o ne s u bs y s t e m's o ut pu t is t he re q u ire d
i np ut f or a n ot h er s ubs y s te m. I n s y s t e ms wor k , t h is i n terc o nn ec te d nes s is c r i tic a l .
A n i n te gr at e d i n for m a ti o n s y s t e m is d es ig n ed t o m e et th e ne e d s of au t hor is e d
us ers (d e par t me n t h e a ds , m an a gers , an d s o on) f or r em ot e ac c es s an d r etr i ev a l. It
is c l e ar th at t h e p eo p l e s u bs y s t em an d t he o rga n iz at i on 's us e rs ar e i nt er de p en d en t.
ity

To s u m m ar is e , n o s u bs y s t e m c a n f unc t io n in is o l at i o n b ec a us e it r el i es o n d a ta
(i np uts ) fro m o th er s u bs y s t e ms to c a rry ou t its f u nc t i ons .
Th e e ff orts a nd as s i s ta nc e o f s y s t ems a na ly s ts , pr ogr a mm ers , a nd o per a ti o na l
em p l oy e es i n a c o mp ut er c e nt r e f ur th er d e mo ns tra t e i nt e r de p en de nc e. T he us e r
i ni t ia t es th e c h o ic e to c o m p ut er is e an a pp l ic at i on , t he an a ly s t an a ly s es a nd
des i g ns it , t he pr o gr a m mer pr o gr a m mes a n d t es ts i t, a nd t he c o mp u ter o p era to r
m

runs it . N o ne o f th es e pe o p le c a n do t h ei r j obs w i th o ut t he h e lp of o t hers i n t he

c om p ut er c e nt r e s u bs y s te m.

O rg an iz at i o n St r uc tur e – An Ex a m p le
)A
(c
 e
lin
On
ty
Int eg rat ion
Th e t er m " i nt e gr at i on " r ef er s t o t h e h o l is tic n at ur e o f s y s t e m s . To fu l f i l t he
org a n iz a t io n's f un d a m en t al g o a l, s y nt h es is c om es a ft er an a ly s is . T he w ay a s y s t e m

si
is c on n ec t e d is r ef er r ed t o as in te gr at i o n. It's m or e t h an j us t s h ar in g a phy s ic a l
s pac e or po r t i on . I t me a ns t h at ev en i f e ac h p ort i o n o f th e s y s te m pe rf or ms a
d is t i nc t f unc t io n, t h e p i ec es o f th e s y s t em w ork t og e th er w i th i n th e s y s t em .
S uc c es s fu l in t egr a ti o n us u al ly r es u l ts i n a s y ner g is t ic ef fec t a nd a s tr on g er ov er al l
er
i mp ac t t h an if e ac h c o mp o ne n t fu nc t i o ns a lo ne .

Cen tr al ob j ect i ve
Th e f in a l as p ec t o f a s y s te m is its pr i mary go a l. Re a l or dec l ar e d g oa ls are bo t h
iv

ac c e p ta b le . A lt ho u gh a d ec lar e d g o a l m ay be th e tr u e g o al , it is f a ir ly u nc om m o n
for a n or g an is at i o n t o dec l ar e o ne g o a l an d w ork to w ard a n o th er. T he c r uc i a l
as p ec t is t ha t us er s mus t be aw ar e of a c om p ut er ap p l ic a t io n's pr im ary go a l f ro m
th e s ta rt o f th e ir for m a l or ga n is at i on a l p os i t i ons . V ic e Pr es id e nt o f S a l es , Pr es i de n t
Un

Pr od uc ti o n V ic e - P r es i de n t Vic e Pr es i de nt , Ac c ou nt i n g D e pa rt me n t H e ad , As s em b ly
De p art i ng H e ad , P a i nt i ng Au t hor i ty L in es

Wo r ke r s
For a s uc c es s fu l d es ig n a nd c o nv ers io n , wor k ers m us t b e a n aly s e d . P ol i t ic a l a n d
org a n is a t io n a l c ons i d e r at i on s c an obs c ur e th e tru e g o a l. Th is me a n s t ha t th e
an a ly s t w i l l h av e t o w o r k t hr ou g h th es e r o ad b l oc k s i n or der t o d et er m in e t he tr u e
ity

go a l o f th e pr o pos e d mo d if ic at i o n.

3. 1. 2 P ha s es of SDL C
m

Th e So ft w ar e D ev e l o pm e nt L if e Cy c le (S D LC) is a fra m ew ork t ha t l ay s o u t t he

s te ps i nv o lv ed i n s o ftw ar e dev e l op m e nt at e ac h s t ag e . I t c o nt a ins a pr ec is e
b lu e pr in t for dev e l op i n g, d e p loy i ng , a nd s us t a in i ng s of tw ar e.
)A

Th e So ft wa r e D ev e l o pm e nt L if e Cy c le ( S D LC) d es c r ib es th e en tir e d ev e l op m e nt
proc es s , inc l ud i n g a l l pr oc es s es i nv o lv ed i n d es i gn i n g, dev e l op i ng , t es ti n g, a nd
de p l oy i n g a s o ft war e p r od uc t .

Softw a r e De v elo pm e nt L if e C y cl e P ro c es s
(c

Th e S oft w ar e D ev e lo p me n t Li f e Cy c l e ( S DL C) is a me t ho d th a t s pec i f ies t he m a ny

s te ps r e qu ir e d in s o ft war e d ev e l o pm e nt i n ord er t o c r ea t e a h i g h - q u a l ity r es u lt .
 SD L C s t a ges e nc o m pas s t he e nt ir e l if e cycle of a s o ft w ar e p ro d uc t , fr o m
c onc e pt i on t hr o ug h r e t ir em e nt .

e
Fo l lo w in g th e S DL C p r oc es s e ns ur es t h at s of tw ar e is dev e l op e d i n a m e th o d ic a l
an d d is c i pl i n ed ma n ne r .

lin
Pu rpo s e:

Th e go a l of t h e SD L C is t o c r e at e a h ig h- q ua l i ty pro d uc t t ha t m e ets t he n e eds of

th e c us to m er .

On
Re q ui re m en t c o l l ec t i n g, d es i gn , c o d in g , tes t i ng , a nd ma i nt e n anc e are th e p h as es of
th e S DL C. T o s u pp ly th e Pr o duc t i n a m et h od ic a l m an n er, it is c r it ic a l to s t ic k t o
th e p has es .

As a n ex a m p le , A s of tw ar e m us t b e pr o duc e d, an d a t ea m i s s ep ar at e d i nt o

ty
s ec t i ons t o wor k o n d if f er e nt as p ec ts o f t h e pro d uc t , eac h of w h ic h is fr e e t o d o
any t hi n g t hey wa n t. O ne d ev e l op er c ho os es to des i g n f irs t , w h il e t he ot h er c h o os es
to c o d e f irs t a n d th e n wor k o n d oc um e nt at i o n.

si
Th is w i l l r es u l t in pr o j ec t fa i l ur e , t h us t e a m me m bers m us t h av e a h i gh l ev el o f
k no w le d ge an d c o m pr eh e ns io n i n or d er to d e liv er t h e des ir e d pr od uc t .
er
SD LC C y cl e
Th e S DL C Cy c le d e p ic ts t h e s o ft war e d ev el o pm e nt p roc es s .

B el o w is t he di a gr am m at ic r e pr es e n ta t io n o f th e S DL C c y c l e :
iv
Un
ity
m
)A
(c
 SD LC Ph as e s

e
G iv en be l ow a r e t h e v ar io us p h as es o f a n S DL C :
• Re q ui r e m en t g at h er i n g a n d an a ly s is
• Des i gn

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• Im p le m e nt at i on or c o d i ng
• Tes t i n g
• De p loy m e nt
• Ma i nt e n anc e

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#1) R eq ui r em ent G at he rin g and A na ly s is

Dur i n g th is p h as e , a l l per t in e nt in f orm a ti o n f ro m th e c o ns um er is g at h ere d i n or d er

to b ui l d a pr o d uc t t h at m ee ts t h e ir ne e ds . A ny d is c r e pa nc i es mus t be c l ar if i e d
s o le ly d ur i ng t h is s te p .

A m ee t in g w it h t h e c u s to m er is s et u p by t h e bus i nes s a n a ly s t a n d proj ec t m a na g er

ty
to o bt a in a l l of t h e n ec es s ar y i nf or m at i on , s uc h as w h at t he c u s to m er w a nts t o
c ons tr uc t , wh o w il l b e t he e n d- us er , an d w ha t th e pr o duc t's p ur pos e is . Pr i or to
c ons tr uc t i ng a pr o duc t, i t is c r it ic a l to h a v e a s o li d gr as p o r ex p er tis e o f t h e
pro d uc t .

si
For Ex a m pl e , A c us to me r r eq u es ts a fi n an c i al tr a ns ac t i on - r e l at e d a pp l ic at i on . I n
th is s c e n ar i o , th e r e qu ir em e nts m us t be s pec if ic , s uc h as wh at k in d o f tra ns ac t i ons
er
wi l l be c o n duc te d , h o w t hey w i l l b e c on d uc te d, a nd i n wh at c urr enc y t hey w i ll b e
c on d uc t e d.

Af t er g at h er in g r e q u ir em e nts , a n a n a ly s is is c o n d uc t ed to de t erm i ne th e v ia b i l ity o f

iv

dev e l op i ng a pr o duc t. In th e ev en t of a ny a m b ig u ity , a c o nf er e nc e c a ll is s c h ed u l ed

for a d d it i on a l d is c us s i on .
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Th e SR S ( S of tw ar e Re q ui r e m en t S pec i fic at i on) d oc um e nt is p rep ar e d o nc e t h e

req u ir e me nt h as b e en we l l un d er s t o od . T he dev e l op ers s ho u l d pr o per ly u nd ers ta n d
th is d oc um e nt , a nd t h e c us t o me r s ho u l d ex a m in e i t fo r fu tur e re f er enc e .

#2) D e si gn
The requirements acquired in the SRS document are used as input in this phase, and the software
architecture required to implement system development is derived.
ity

#3) I mp le me nt at ion o r Cod ing

W he n t h e d ev e lo p er r ec e iv es t h e D es ig n doc u me n t, th e im p l e me n ta t io n/c o d in g
proc es s be g ins . So ur c e c o de is c re a te d f ro m th e s o ft w are des i gn . D ur in g t h is
m

ph as e, a l l o f th e s o ft w ar e 's c o mp o ne n ts are i mp l e me nt e d.

#4) T e stin g
)A

Tes t i n g be g i ns onc e th e c o di n g is c o mp l e te a n d t h e m od u les are r ea dy to b e

tes te d . Dur i n g th is p h as e , t he r es u l ti n g s o ft war e is r i gor o us ly tes t ed , a nd any f a u lts
de t ec t ed ar e as s i g ne d t o d ev e l op ers t o b e f i x ed .
Re tes t in g , als o k n ow n as r e gr es s i o n tes t in g , is d o ne u nt i l t he pr o g ra mm e fu l f i ls t h e
req u ir e me nts of t he c u s to m er . T h e SR S doc u me n t is us ed by t es ter s t o c on f ir m t ha t
th e pr og ra m me me e ts th e n ee ds o f th e c us to me r.
(c
 #5) D ep lo ym ent
De p en d in g o n th e c us t o mer 's ex p ec ta t io n s , t h e pr od uc t is ei th er p ut i n t he

e
pro d uc t i o n env ir o nm e n t or i n it i al ly s ubj ec t e d to U AT (Us er Ac c e pt a nc e T es t i ng ).
In U AT, a r e p l ic a o f t he pr od uc ti o n e nv ir on me n t is c o ns tr uc t e d, a nd th e c us t o mer ,
i n c o l l ab or at i on w it h t h e d ev e lo p ers , pe r for ms t h e t es t i n g. I f t h e c us t om er is

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s at is fi e d w it h th e a p pl i c at i on , t he c us t om er mus t s i g n of f fo r it t o go l iv e .

#6) Ma int en an ce
Af t er a pr od uc t is d ep l oy ed i n a pr od uc t i on env ir o n me nt , t h e dev e lo p ers are

On
res p o ns ib l e for pr o du c t m a i nt e na nc e, w hic h inc l u des f ix in g a ny is s ues t ha t ar is e
an d a ny e nh a nc em e nt s t ha t n ee d t o b e m ad e.

3. 1. 3 V a ri ou s re a son s f or c ondu ct ing s y st em a na ly s is

Re as ons f or I n it i at i ng Sy s t e m A n aly s is :

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1. It is re q u ir e d to s pec i fy t he s y s te m bo u nd a ri es , wh ic h w i l l d e fi n e t h e s y s t e m's
s c op e an d c ov er a ge . Th is a i ds in th e id e nt if ic at i o n a nd c o mp re h ens i o n o f t he
s y s te m's f u nc t i o na l bo un d ar ies , d e par t me n ta l b o un d ar ies , a n d p ers ons i nv o lv e d

si
i n t h e s y s t em . It a ls o a i ds i n th e i d en t if ic a ti o n of t h e nu m er ous s ub - s y s t ems '
i np uts an d o ut p uts , as w e ll as th e ov er al l s y s te m.
2. Th e s y s te m's a n a ly s i s a i ds th e s y s t em de s i gn er i n d et er m in i n g w he t her t h e
s y s te m is c l os e d or op e n, d et er m in is t ic or pro b a bi l is tic . T o ac h i ev e t h e
er
ap pr o pr i a te des i gn a r c h it ec t ur e, s uc h a n u n ders t an d in g o f t he s y s t e m is
req u ir ed pr ior t o d es ig n in g t he p roc es s .
3. It is v it a l t o s p ec ify t h e s y s te m's go a l (s ). Ma ny t i m es , i t is s ee n t ha t s y s t ems
hav e be e n i n us e f or a l o ng t im e a n d h av e los t s i g ht of th e ir pr i ma ry g oa l of
iv

ac h i ev in g obj ec t iv es . Th e us er s o f t he s y s te m, as w e ll as t he s ta ff e n g ag e d, a re
un a b le to i d en t ify th e g o a l( s ). S i nc e we are d ev e l o p in g a c om p ut er - b as e d
s y s te m, w e m us t r ed ef i ne or r es et t he o bj ec t iv es as a re fer e nc e p oi n t i n t h e
c on t ex t o f th e pr es en t bus i n es s de m a nd .
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4. Th e s tr a t eg ic g o a l of t he s y s t e m a na ly s is is to g e t th e p eo p l e's ac c ep t anc e o f a
ne w dev e lo p m en t. T h e pr oc es s o f s y s t e m an a ly s is g iv es pe o p l e a s e ns e o f
i nv o lv e me nt . T h is ai ds i n br e ak i ng d ow n r es i s ta nc e t o th e ne w dev e lo p me n t a n d
gu ar a nt ees t h at t h e ne w s y s te m is a d h ere d t o.
5. Th e im p or t a nc e of t h e s y s t e m in th e or ga n is a t io n mus t be u nd ers t o od . T h is
c l ari f ies i ts u ti l i ty a nd as s is ts t he d es i g ne r i n d et er m in i ng th e s y s te m's des i g n
e le m en ts . T hey w ou l d b e ab l e to p l ac e th e s y s te m i n r e la t io n t o ot h er s y s t e ms
ity

i n ord er t o d et er m in e des i g n s tra t egy a n d d ev e l o pm e nt .

6. Ma ny ti m es , th e s y s te m s er v es as a n i nt erf ac e to o th er s y s te ms . As a res u lt , it
tri g ge rs or s u pp or ts c ha n ges in t h e ot h er s y s te m t hro u gh s uc h a n i nt erf ac e. I t is
v it a l to c o m pr e h en d th e s y s t e ms ' c urr en t r o l e as a n i nt er fac e to t h e in t eres ts of
ot h er s y s te ms . A ny m od i f ic a t io ns or a dj us t me n ts per f or me d s h ou l d no t h av e a n
i mp ac t on t h e ot h er s y s te ms ' f u nc t i on a l ity or go a ls .
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7. Th e s y s t e m's an a ly s is a ids i n de t erm i n i ng t he s y s t em 's f e as ib i l ity fro m s ev era l

pers p ec t iv es . Th e s y s te m mus t b e tec h nic a l ly , ec on o m ic a l ly , a nd op er at i o na l ly
fe as ib l e.
8. Th e s y s t em an a ly s is a s s is ts i n d et er m in i n g t he ha rd wa re an d s o ft war e res o urc e
)A

ne e ds . As a r es u lt , i f ex tr a r es ourc es ar e nec es s ary , t h is w i l l n ec es s i ta t e a

fi n anc i a l c o m m it m en t. T h e m a na g em e nt p ref ers t o ev al u at e in v es t m en ts in
ter ms of th e ir r et ur n on i nv es t me n t. If t h e proj ec t 's re t urn o n i n v es t m en t is n' t
ap p ea l i ng , m a na g em e nt m ay d ec id e t o a ba n do n i t.
(c

3. 1. 4 M an ag em ent rol e in s ys t e m an al y s i s to cat e r co mpe tit ion and

inc or po rat ing l at e st t ec hno log y
 Sy s t e ms an a ly s ts m us t m an a g e p e op l e i n ad d it i o n t o ti m e an d r es ourc es .
Ma n ag e m en t is ge n e r a lly p er f or me d t hr ou gh pr ec is e c o m m un ic at i on wi t h te a m

e
me m b ers w h o hav e b ee n c h os e n fo r t h e ir c om p et e nc e a n d c om pa t ib i l ity . Pr oj ec t
pro d uc t iv i ty go a ls m u s t be es t ab l is he d , an d m em b ers of s y s t e m s a na ly s is t e ams
mus t b e e nc o ur ag e d t o m ee t th e m.

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As s emb lin g a Te am
P ut ti n g t o ge t her a te a m is a g o od i d ea . Wh o s ho u l d a pr oj ec t ma n ag er c h oos e if h e
or s h e has t h e o pp or t un i ty to as s e m bl e a d r ea m t ea m o f h i gh ly t a l en t ed in d iv id u a ls
to d es i gn a s y s te m ? I n g en er a l, p roj ec t ma n ag ers s h o u ld s eek ou t t hos e w h o s h are

On
th e ir i d ea ls o f t ea m w or k a nd ar e mo t iv at ed by t h e g oa l t o pr o du c e a h i gh - q u al i ty
s y s te m o n t i me an d wi t hi n b u dg e t. O t h er ex c e l l en t t ea m me m b er tr a its i nc l ud e a
s tro n g w or k e th ic , h on es ty , a nd c o m pe t e nc y ; a w i ll i n gn es s to l ea d b as e d o n
ex p er tis e ; m ot iv at i on , ex c it em e nt f or t he proj ec t , a nd t e am m at es ' tr us t .

A lt h ou g h t he pr oj ec t ma n ag er mus t b e f am i l i ar w it h bus i n es s pri nc i p les , i t is

ty
be n ef ic i al t o hav e at l eas t on e a dd i ti o n al m em b er of t he t ea m wh o is . Th is p ers o n
s ho u l d i de a l ly b e an e x per t i n t he s am e f i el d as t h e s y s te m b e in g dev e l op e d. Wh e n
c rea t in g an ec o m m er c e s i te , t e ams c an s eek th e s u p po rt o f a m ark et er ; w he n
c rea t in g a n i nv en t or y s y s te m, t ea ms c an e n l is t t he h el p of s o me o n e k n o wl e dg e a bl e
i n pro d uc t i o n an d o p er at i ons .

si
A t e am s h ou l d id e al ly hav e t wo s y s t ems a na ly s ts . T h ey c a n as s is t o ne an o th er ,
do u b le- c h ec k e ac h ot her 's w or k , an d a dj us t th e ir w ork l oa ds as ne e de d . Th er e is
er
un d ou b te d ly a r e qu ir e me n t f or pr o gra m m ers to j o i n t h e t ea m . P e op l e w ho k n ow ho w
to do wa lk thr o ug hs , r ev ie ws , t es ti n g, an d d oc u m en t i ng s y s t e ms a re j us t as c ruc i a l
as t hos e w h o k n ow h ow t o c od e. S o me pe op l e ex c e l a t v i e wi n g t h e b i g p ic t ur e,
wh i l e o t her s t hr iv e w h en t as k s ar e br ok en d ow n i nt o s ma l l er c hu n k s . Bo th ty p es o f
pe o p le s h o u ld be pr es en t o n ev er y te a m.
iv

A pr oj ec t m a na g er s ho u l d s ea r c h f or p er s on n e l wh o h av e bo t h ex per i e nc e a n d
en t hus i as m i n a dd i ti o n t o t h e es s e nt i a ls . W he n es t i m at i n g th e ti m e r eq u ir ed to
Un

ac c o m p l is h a j o b, ex per i e nc e is v ery s i gn if ic a nt . W he n c o mp ar ed t o a te a m of
nov ic e pr og r a m me r s , ex pe r i e nc e in pro g ra mm i n g c an r es u l t i n c o de be i ng
dev e l op e d fiv e t i mes f as t er . A us ab i l ity s pec i al is t is a g o od ad d it i o n to t h e te a m as
we l l.

Th e gr ou p m us t b e e ner g is ed . S e lec t in g g oo d e m p loy e es fro m th e s t art is on e

ity

ap pr o ac h t o k e ep t h e te a m pos i t iv e t hr ou gh o ut t he proc es s . L ook f or p as s io n,

c rea t iv ity , a n d t h e ab i l ity t o c o m m un ic a te w it h a v ar i ety o f pe o p le . T hes e
fu n da m en t al c h ar ac t e r is t ic s h av e t he p ot en t ia l to l e ad t o s u c c es s . It's a ls o
be n ef ic i al t o h ir e ex c e ll e nt wr i ter s a n d pr e s en t ers wh o c a n pr es en t pr op os a ls an d
i nt erac t d ir ec t ly w it h c us t o mer s .
m

A t ea m's fo u nd a ti o n i s b u i lt on t r us t. A ll pr oj ec t p art ic i pa n ts m us t ac t r es p o ns ib l y
an d pr o m is e to do t h e i r b es t a nd f i n is h th e ir as s ig n ed t as k s . P e op l e m ay o p era te i n
a v ar ie ty o f way s , b ut th ey m us t a l l a gr ee t o work t o ge th er t ow ar d a s i m il ar g o a l.
)A

Com mun ic at ion S t r at egi e s f or Ma nag ing T ea ms

Te ams d ev e l o p t he ir ow n p er s o na l it i es as a res u lt of m ix i ng eac h i n d iv id u al te a m

me m b er w i th e ac h o t her i n s uc h a w ay th at a wh o l e ne w ne tw o rk of i n ter ac ti o ns
(c

em er g es . V is ua l iz e t e ams as a l way s f in d i ng a ba l a nc e b et we e n c o mp l et i n g t h e t as k
at h a nd a n d ma i nt a i n i ng r e l a ti o ns h i ps a mo n g te a m me m b ers a s a w ay t o or g an is e
y our t h i nk in g a bo u t th em .
 In f ac t , te a ms fr e q ue nt ly h av e t w o l ea d er s ra th er t ha n j us t on e. Ty pic a l ly , o n e
i nd iv i du a l wi l l e me r g e wh o w i ll le a d o t hers i n c o m p le t in g w ork , w h il e a no t her w i l l

e
em er g e w h o w i l l b e c onc er n ed w it h gro u p me m b ers ' s oc ia l r e la t i ons h i ps . B ot h are
es s e n ti a l t o t h e te a m' s s uc c es s . O t h er r es e arc h es h av e c l as s i f ie d t hes e i n div i d ua ls
as t as k l ea d er an d s oc i oe m ot i on a l l ea d er, r e s pec t iv e ly . Ev ery t e am h as c o n fl ic ts as

lin
a r es u l t o f at te m pt i ng to s tr ik e a b al a nc e b et we e n c o m p le t in g du t i e s an d pr es erv i n g
re la t io ns h ips a m o ng m em b er s .

Te ns i o ns m us t b e r es o lv e d o n a re g u lar b as is for t h e te a m t o re ma i n ef f ec t iv e.
In ef f ec t iv en es s a nd ev e n tu a l te a m bre a k up w i l l r es u l t fro m m in i m is in g or

On
d is re g ard i n g t ens i o ns . T he s k i l lf u l u t il is at i o n o f f e ed b ac k by a ll te am m em b ers c a n
prov i d e a s ig n if ic a nt a m o un t o f t he es s en t ia l t e ns io n r el i e f. H ow ev er, a ll
par t ic ip a nts mus t a gr ee th a t t he me t ho d t hey i nt er ac t ( i. e ., pro c es s ) is es s en t ia l
en o ug h t o w ar r a n t t im e. I n a s u bs eq u e nt p a rt, w e' l l t alk ab o ut pr o c es s pr od uc tiv i ty
tar g ets .

ty
Cre at i n g ex p l ic it a n d i m pl ic i t t e am n or ms (c o l lec t iv e ex p ec t at i ons , be l i efs , an d
way s o f b eh av in g) t ha t gu i de me m be rs in t h e ir r e la t io ns h ips is on e way t o s ec ure
c ons e ns us on p r o p er me m b er en g a ge m en t. Th e no rms o f a t ea m a re un i q ue t o th a t
te a m a nd wi l l n o t nec es s ar i ly tra ns fer to an ot h er. T h es e s ta n dar ds ev o lv e

si
thr o ug h ou t t im e a n d ar e be tt er v i ew e d as a c o l l ab or at iv e ef f or t r at h er th a n a
fi n is he d res u lt .

Nor ms c an b e us e fu l or in e ff ec t iv e. J us t bec a us e a c ert a i n c o nd uc t is c o m mo n

er
am o ng m e m ber s o f a t e a m d o es no t i n d ic a te i t is b en e fic i a l t o th e te a m's
ac h i ev em e nt of i ts o bj ec t iv es . A te a m s t a nd ard , f or ex am p l e, m ig ht b e t ha t j u n i or
te a m m em b er s s h ou l d h a nd l e a l l proj ec t s c h ed u l in g . T h e te a m is p ut t in g e nor m o us
pres s ur e o n n e w me m ber s a n d no t tak i ng f u ll b e ne f it o f t h e t e a m's ex per i e nc e by
iv

ad h er in g t o t h is nor m . I t's a c us to m t h at , if f o ll o we d, c o u ld c aus e t ea m me m b ers t o

was te v al u ab l e r es o ur c es .

Te am m e mb er s m us t mak e n or ms ex p l ic i t a nd ev a lu a te w he th er t hey ar e ef fec t iv e

Un

or dy s f unc t io n al i n as s is t i n g t he te a m in ac hi ev in g its obj ec t iv es on a re g ul ar b as is .

Y our t e am 's ov er ar c h i ng ex p ec t a ti o n m us t be t h at c h a ng e is t h e n or m. C o ns i d er
wh et h er te a m n or ms a r e as s is t i n g or o bs tr uc ti n g th e t ea m's s uc c es s .

S etti ng P ro j e ct Pr od uct iv it y G o a ls
ity

Af t er wo rk i n g o n a v ar i ety o f pr oj ec ts w it h y our te a m, y o u or y our t ea m le a der w i l l

dev e l op an un d er s t a n d in g o f w ha t t he t e a m c a n d o in a g iv e n le ng t h of ti m e. T h e
te a m w i l l be a b le t o s et w or t hw h i le pr o d uc t iv ity t arg e ts by us i ng t he p o in ters
pres e nt e d in t he e ar li er s ec t i on o f t h is c h a pt er on s tr at e gi es for es t i m at i ng t im e
nec es s ary a nd c ou p l in g th e m w it h ex per i e nc e.
m

E mp l oy ees w ho pr o du c e c onc r e te o ut p uts , s uc h as t he n u mb er o f b lu e j ea ns s ew e d

per ho ur , th e n u mb er o f e ntr i es e nt er ed in p er m i n ut e, or th e n um b er o f th i n gs
s c an n ed per s ec o nd , ar e us e d to t h i nk i n g ab o ut pr o duc t iv ity t ar ge ts fo r s y s t e ms
)A

an a ly s ts . H ow ev er , a s i n d us tr i al pr od uc t iv i ty r is es , it is ev id e nt t ha t m a na g er ia l
pro d uc t iv i ty mus t a ls o r is e . T h e pr od uc tiv i ty t arg e ts for t h e s y s te ms a na ly s is t ea m
are de f in e d w it h th is g oa l in m i n d.

Th e t e am m us t c r e a t e an d ag r e e on g o a ls , w h ic h s h ou l d b e bas e d on t ea m
me m b ers ' s k i l ls , pr ev i ous p er for m a nc e , a n d th e n a tur e o f th e proj ec t . B ec a us e
(c

s om e ti m es a w h ol e s y s te m wi l l b e i ns ta l l ed , an d ot h er t i m es o n ly a s ec t i on o f a n
ex is t i ng s y s t e m w il l b e m o di f ie d , th e g o als f o r e ac h pr oj ec t wi l l d i ff er s l i gh t ly .
 Mot iv at ing P ro j ect T e am M em be r s

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A lt h ou g h mo t iv a t io n is a c om p l ex s u bj ec t , it is on e wo rt h c ons i de r i ng , ev e n if o n ly
br ie f ly , a t t h is t i me . T o pu t i t an o th er w ay , p eo p l e j oi n gr o ups t o m ee t s o me o f t he ir
mos t bas ic ne e ds , s uc h as f o od , c lo th i ng , a n d s h e lt er . A ff i l ia t io n, c o ntr o l,

lin
i nd e pe n de nc e, an d c r ea t iv ity ar e j us t a f e w o f t he h ig h er - lev e l des ir es t h at al l
i nd iv i du a ls h av e . O n v ar io us l ev e ls , p e op l e a re m ot iv at e d to m e et u nm e t wa nts .

P art ic i pa t io n in go a l s et t in g, as o u tl i n ed i n t he pr ev i o us s ec t io n, c an e nc o ur ag e
te a m me m b er s to s o m e ex t e nt . S et ti n g a d if fic u lt b u t at ta i n ab l e o bj ec t iv e a n d th e n

On
c om p ar in g pe r f or ma nc e a g a ins t it on a r e g u lar b as is a p pe ars to be e ff ec t iv e in
mo t iv a t in g pe o p le . G o a ls dr iv e p e op l e t o at t a in th e m i n a s im i l ar way th at m ag n ets
do . G o a l s et t in g dr iv es e mp l oy e es i n p ar t b ec aus e te a m m e mb ers k n ow ex ac t ly
wh at is ex p ec te d o f t he m pr ior to a ny p er for m anc e as s e s s m en t . It c a n a ls o b e
c red i te d w it h th e s uc c es s of g oa l - s et t in g f or mo t iv a t io n , as it g iv es e ac h t e a m
me m b er s o me au to n o my i n ac c om p l is hi n g t he go a ls . T he me a ns t o at t ai n a go a l
may or m ay no t b e pr e de t er m i n ed . I n th is c a s e, t ea m m em b ers are a l lo we d to a p pl y

ty
th e ir ow n k n o wl e dg e a nd ex p er i enc e t o ac h i e v e th e ir o bj ec t iv es .

S et ti n g g o a ls c a n h e l p e nc our a ge te a m m em b ers by d ef i n in g w ha t n e eds to b e

do n e t o ac h iev e s uc c e s s f or t h e m a nd ot h er s . G o a ls dr iv e t ea m m em b ers b ec aus e

si
th ey de f in e th e l ev e l of ac hi ev e me n t t ha t i s ex p ec te d of th e m. Th is go a l - s et ti n g
ap pr o ac h s i m p l if i es t he w or k i ng e nv ir on m en t wh i l e s i mu l ta n eo us ly en er g is i n g it
wi t h th e p ot e nt i al of a c c om p l is hi n g wh a t is e x pec t ed .
er
Ma na gin g E com me r c e P ro je ct s

Ma ny of th e pr ev i o us i de as an d t ec h ni q ue s c an b e us e d t o ec om m erc e pr oj ec t
iv

ma n ag e m en t. H ow ev e r , y o u s h ou l d be a war e t h at , w h i le t he re ar e ma ny pa ra l l els ,
th er e ar e a ls o s i gn i f i c an t v ar i a nc es . O n e d is t i nc t i on is th at ec o m merc e s y s t e ms '
da t a is d is pe r s e d t hr o ug h ou t t he f ir m . As a res u l t, y ou' re no t j us t m a n ag i n g d at a i n
a s in g l e de p ar t m en t o r ev en a s i n g le u n it . S inc e a r es u lt , v a ri o u s or ga n is at i on a l
Un

po l i tic s c an em er g e, as u ni ts fr e qu e nt ly f e e l pr ot ec t iv e o f th e d at a t hey ge n era t e

an d ar e u n aw ar e of t h e i mp or ta nc e of s har i n g i nf or ma t io n ac r os s t he org a n is a t io n.

A no th er s i g n if ic an t d is t i nc t i o n is t h at ec o m merc e pr oj ec t t e am s of t en re q ui re
ad d it i o na l p er s o n ne l fr o m v ar io us d ep art m en ts , i nc lu d i ng as d ev e lo p er s ,
c ons u lt a nts , da ta b as e ex per ts , a nd s y s t e m i nt e gra to rs . W i th i n a c oh er e nt I S gr o up
or s y s te ms d ev e lo p m en t t ea m, ne a tly de f i ne d , s ta b le proj ec t gr ou ps w i l l b e th e
ity

ex c e p ti o n r at h er t ha n th e r u l e. Fu rt her m or e, b ec a us e s o m uc h as s is t a nc e may b e
req u ir ed at f ir s t, ec om m er c e pr oj ec t m a na g ers m us t f or m p art n ers h i ps b ot h
ex t er na l ly an d in te r n a l ly w e ll i n a dv anc e of t h e i m p le m e nt at i on , pos s i b ly s h ar i ng
ta l en t ac r os s pr oj ec ts to r e d uc e ec o m merc e i mp l e me nt a ti o n c os t s a nd g at h er th e
req u ir ed n um b er s of pe o p le w it h t h e n ec e s s ary ex p ert is e. O rg a n iz a t io n al p o li t ic s
has t h e c a pac i ty to d e v e lo p a r ift be tw e en t e am me m be rs .
m

O n e s tr a te gy t o av o i d po l i tic s r ui n i ng a proj ec t is for t h e ec om m erc e proj ec t

ma n ag er to s tr es s t h e ec o m mer c e's c o nn e c ti o n w i th th e org a n i z at i on 's i n ter n a l
s y s te ms , t hus e mp h a s is in g t h e o rg a nis a ti on a l s id e of th e ec o m merc e proj ec t .
)A

" Des i gn i n g th e fr o nt e nd [ w ha t t he c us t om er s e es ] is t he s im p l e p art of a l l o f th is ,"

on e ec om m er c e pr oj ec t m an a ge r t o ld us . T he ac tu a l pro b l e m is s tr a te g ic al ly
i nt egr a ti n g ec om m er c e i n to a l l o f th e or g an iz at i on 's op er at i o ns ."
(c
 A f our t h d is t i nc t i on be tw ee n tr a di t io n a l pr oj e c t m an a ge m en t a nd ec om m erc e pr oj ec t
ma n ag e m en t is t h at , bec a us e th e s y s t e m w i l l c o nn ec t to t h e o uts i de w or l d v i a t he

e
In ter n et , s ec u r i ty is p ar a m o un t. B e for e th e ne w s y s te m is i ns t a l l e d, d ev e l o p in g a nd
i mp l e me nt i n g a s ec ur i ty pl a n is a pr oj ec t i n a nd o f i ts e l f an d m us t be m a na g ed as
s uc h .

lin
Int eg rat ing T ec hno lo gie s f o r S ys te ms
As us ers a do p t n ew t ec h n o lo g ies , s om e of th e j o b of th e s y s te m s an a ly s t w i ll b e
dev o te d to i nt e gr a t in g tr a d it i on a l s y s t e ms wi t h n e w o n es in o rde r t o ens ur e a

On
re lev a nt c o nt ex t, as i nd ic at e d i n th e d ia gr a m be l o w. As p e op l e work t o i nt e gra t e
th e ir ec o m mer c e a p p l i c at i ons i nt o t h ei r o l d f ir ms or s tar t t ot a l ly n e w e bus i nes s es ,
th is s ec ti o n d es c r i b es s o m e of t he n e w in f o rm at i on t ec h n o lo g i es s y s te ms a na ly s ts
wi l l b e a do p ti n g.

E com me r c e App li cat i ons a nd W eb Sy st em s

Ma ny of t he s y s te ms c ov er e d her e c an b e en h anc e d if th ey are t rans f erre d to t he
W or ld Wi d e W eb or i f t h ey w er e des i g ne d a nd b u i lt as W e b - b a s ed t ec h n o lo g i es

ty
fro m t he s t ar t.
Th ere ar e n u m er o us a dv a n ta g es o f ins ta l l i n g o r d ev e l o p in g an a p p lic a ti o n v ia th e
In ter n et :

si
1. Inc r e as i n g us er a wa r en es s of a s erv ic e, pr od uc t , i nd us t ry , pers o n, or
gro u p's av a i la b i l ity .
2. Us er s h av e t he o p ti o n of h av i ng ac c es s 2 4 h ours a day , s ev e n day s a w e ek .
3. Im pr ov in g t he in te r f ac e d es i g n's u t il i ty a n d u s ab i l ity .
er
4. Dev e lo p i ng a s y s te m th at c a n b e ex t e n de d i nt er na t io n al ly r at h er t ha n
re ma i n in g loc a l, a ll o wi ng pe o p le i n r e m ot e r eg i o ns t o b e r e ac h e d reg ar d les s
of t h eir t i m e z o ne .
iv
Un
ity
m
)A

In te gr at i n g t ec h no l og i es ef f ec t a l l ty pes o f us ers an d s y s t ems , w h ic h s y s t e m s

an a ly s ts mus t b e aw ar e of .

Ent e rp ri s e S yst e ms
Ma ny or ga n is at i ons s ee p ot e nt i a l b e n ef its fro m i nt e gra t i ng m u l ti p l e in fo rm at i o n
(c

s y s te ms t ha t ex is t at v ar io us l ev e ls o f m an ag e me n t a nd wi t hi n v ar io us ac t iv it i es .
S om e p ub l ic at i ons r ef er to i nt e gr at i on as a lay er - b as e d s erv ic e - or i e nt ed
arc h i tec t ur e ( SO A) . T he t op lay er wo u l d be m ad e u p of e nt er pr is e s y s t e ms . T his
 i nt egr a ti o n is h a nd l e d v i a en t er pr is e s y s t ems , c o m mo n ly k n ow n as e nt er pris e
res o urc e p l a nn i ng ( E RP ) s y s te ms . E R P i m p le m en t at i on nec es s it at es a s i gn i fic a nt

e
am o un t o f de d ic at i on a nd or g a n is a t io n a l t rans f orm a ti o n. Sy s t e ms a na ly s ts are
fre q ue nt ly h ir ed as c o ns u l ta n ts f or ER P pr oj ec ts th a t us e pro pr i et a ry s of tw ar e. S A P
an d O r ac l e ER P s o ft war e ar e t wo ex a m p l es of po p u lar ER P s of tw ar e. So m e of

lin
th es e to o ls ar e d es i g ne d t o h el p b us i nes s es m ig ra te t o t he I n t ern e t. I n or de r t o
ef fec t iv e ly d es i gn , i ns ta l l, ma n ag e , u pd at e , an d us e a n E R P pr o g ra mm e, an a ly s ts
an d s o m e us er s ty p ic a l ly r e qu ir e v e nd or tr a i n in g, s up p ort , a nd m a i nt e na nc e.

S yst em s f o r W ir e le s s an d Mob il e D ev i ce s

On
A na ly s ts ar e be i n g tas k ed w i th dev e lo p i ng a s l e w of n e w s y s te ms an d a p pl ic at i o ns
for adv e nt ur ous us er s , i nc lu d i ng m any f or w ir e les s a nd m ob i l e d ev ic es l ik e t h e
A pp l e i Ph o ne , i P od , an d B l ac k Berry . A na l y s ts m ay a ls o b e c a l l ed u p on t o b u i ld
c onv e nt i on a l or w ir e l es s c om m u nic a ti o ns ne tw ork s f or c us t o me rs w ho w an t to
i nc or p ora t e ph o ne , v i de o , t ex t mes s a gi n g, a nd e m a il in to c o rp ora t e in tr an e ts or
i nd us tr i a l ex tr a n ets . M - c o m merc e re fe r s t o w ire l es s ec o m merc e (m o b il e

ty
c om m erc e) .

W ir el es s l oc a l ar e a ne tw or k s ( W L A Ns ), w ir el es s f id e l ity n et wo rk s (W i - Fi) , an d
pers o n al w ir e les s n e t wor k s ( P WNs ) t ha t c on n ec t a v ar i ety o f d ev ic es us i ng t h e

si
B lu e to ot h s ta n d ar d a r e al l s y s t ems y o u m ig ht b e as k e d to d ev e l o p. In m or e
adv a nc e d s it ua t io ns , an a ly s ts may be r e li ed up o n to c r e at e i n te l l ig e nt ag e nts ,
s of tw ar e th a t c an as s is t us er s w i th ac t iv it i es by l e arn i n g th e ir pre f ere nc es ov er
ti m e a n d ac ti n g o n t h em . F or ex a mp l e, a n i nt e ll i g en t a g en t us i n g p u l l t ec hn o lo gy
er
wo u ld s e ar c h t h e W eb for s t or ies o f in t eres t to t he u s er af te r o bs erv in g th e us er's
be h av io ur p at ter ns w it h in f or m a ti o n ov e r t i m e, a nd w o ul d c o nd uc t s earc h es on t he
W eb w i th o ut t h e us e r ' s c o ns t a nt pr o d di n g.

O pen Sou r ce Sof t w a r e

iv

O p en s o urc e s o ft w ar e is an a l ter n at iv e t o tra d it i on a l s of tw ar e d ev e l op m en t i n w h ic h

pro pr i et ary c o d e is h i dd e n fr o m us ers (O S S). M any us ers a nd pro gr a mm ers c an
Un

s tu dy , ex c h an g e, a n d m od i fy th e c o de , or c om p ut er i ns t ruc t io ns , w it h O S S . T h e
i de a th a t any s o ft w a r e m od i fi c a ti o ns m us t b e d is c los e d w i th e v ery o n e o n t h e
proj ec t is o ne of t he c om m u ni ty 's ru l es .

O S S d ev e lo p me n t h a s a ls o b e en des c ri b e d as a p hi l os op hy ra th er t ha n j us t a
me t ho d f or g en er at i ng ne w s of tw are . Ma ny pe o p le wh o pa rt ic ip a t e in o pe n s ourc e
c om m u ni t ies s e e it a s a m e th o d t o as s is t c iv i liz a ti o ns c h a ng e . A pac h e, a We b
ity

s erv e r proj ec t , M oz i ll a F ir ef ox , a br ows er, a n d Li n ux , a U n ix - l i k e o pe n s o urc e

op er at i n g s y s te m, ar e a ll w e l l - k no wn op e n s o urc e in i t ia t iv es .

Ho wev er , th i nk i ng of O S S as a m on o l it h ic mov e m en t i s an ov ers i mp l if ic a ti o n t ha t

rev e a ls l i tt l e a bo ut t he k in d o f us ers or us er an a ly s ts t h at ar e pr od uc i ng O S S
proj ec ts a n d on w h at b as is . Res e arc he rs rec en t ly c las s i f ie d op e n s o urc e
m

c om m u ni t ies in to f ou r ty p es —a d h oc , s t an d ard is e d, or g an is ed , a nd c o m me rc i a l —
a lo n g s ix d i ff er en t d i me ns i ons — ge n er al s t ruc t ur e, e nv ir on m e nt , a i ms , me t ho ds ,
us er c o m mu n ity , an d l ic e ns i ng —t o h el p u s be tt er c o mpr e he n d th e op e n s o urc e
mov e m en t. So m e s c h o lar s s ay t h at O S S i s a t a fo rk in t h e r o ad , a nd t h at b ot h
)A

c om m erc i al a n d c o mm un i ty O S S gr o ups n e e d to i d en t ify w h ere t h ey i nt ers ec t a nd

wh er e c o nf l ic t c a n ar is e.

Ma ny pr ogr a m mes t h at r u n o n m any t ec h no l o gi es , s uc h as mo b il e dev ic es an d

c om m u nic a ti o n eq u i p me n t, b en ef i t fr o m o pe n s o urc e d ev e l o pm en t. Its us e may
(c

dr iv e t he d ev e l o pm e nt of s t an d ards t ha t a ll o w d ev ic es t o c om m u nic a te m or e
s i mp ly . W id es pr e a d us e o f O S S c ou l d he l p a ll ev i at e s om e of t he s ev ere
pro gr a mm i n g s h or ta g e s by p ut t in g pr ogr a m m in g t o o ls i n th e ha n ds o f s t u de nts i n
dev e l op i ng c o un tr ies s oo n er t ha n if t h ey w er e l i m it e d to pr opr i et ar y p ac k ag es , a nd
 it c o ul d l ea d t o la r ge - s c a l e pr o b le m s ol v i ng thr o ug h i nt ens e an d ex t ens iv e
c o ll a bo ra t io n.

e
lin
3. 1. 5 Ro le of Sy st em Ana l yst

By s tu dy i ng t he i n p u tt i ng a nd p roc es s in g of d at a as we l l as t he o ut p ut t in g of
i nf or ma t io n w it h t he go a l o f en h anc i n g or ga n is at i on a l pr oc es s e s , t h e s y s te ms
an a ly s t c ar ef u l ly ex am i n es h o w p e o pl e i nt er ac t w it h t ec h no l o gy a n d ho w

On
bus i n es s es fu nc ti o n. Ma ny of t h e a dv an c es i nv o lv e th e us e of c om p ut er is ed
i nf or ma t io n s y s te ms t o be tt er as s is t us ers ' w ork du t ies a n d b us i nes s pr oc es s es .
Th is c onc e pt e m ph a s is es a r ig or ous , s y s te m at ic a ppr o ac h t o a na ly z i ng — an d
po t en t ia l ly i m pr ov i n g —w h at is h a pp e ni n g i n t h e un i q ue c o nt e x t ex per i e nc e d by
us ers an d g e ner at e d b y a c o m pa ny .

As a r es ul t, o ur d ef i n i ti o n of a s y s t ems a n al y s t mus t be w i de . T h e a na ly s t mus t be

ty
ab l e t o wo r k w i th p eo p le of v ar i o us ty p es a nd h av e pr ev i ous c o m pu t er s k il ls . T he
an a ly s t f i l ls a v ar ie ty of f unc t io ns , s o m et i m es j ug g l in g s ev era l a t onc e . C o ns u l ta n t,
s up p ort i n g ex p er t , a n d c ha n ge a ge n t ar e th e thr e e pr i m ary f u nc t i on s of th e s y s te ms
an a ly s t .

S yst em s An a ly st a s Con sul t an t

si
As a s y s t e ms c o ns u l t an t t o i nd iv i du a ls a n d t he ir en ter pr is es , t h e s y s t ems an a ly s t
may be rec r u i te d p ar t ic ul ar ly t o ad dr es s i nf or ma t io n s y s t ems d i ff i c u lt i es wi t hi n a
er
c om p any . Suc h h ir i n g m ig ht b e a dv a nt a g eo u s s inc e o u ts i d e c o ns ul ta nts c an br in g a
fres h v i ew po i nt t o a n or ga n is a t io n th a t o t her e m p loy e es d o no t h av e. O u ts i d e
an a ly s t s ar e a ls o a t a d is adv a nt a ge b ec a us e th ey w i l l n ev er be aw ar e o f t h e
ge n u in e or g a n is a t io n a l c ul t ur e . Y ou w i ll re ly l arg e ly on t he s y s t e ma t ic ap pr oac h es
me n ti o n ed t hr o ug h ou t t h is c o ur s e as a n ou ts i d e c o ns ul t an t t o a n a ly s e an d c r ea te
iv

ap pr o pri a te in for m at i o n s y s te ms f or us ers o per a ti n g i n a s p ec i f ic f ir m. Fu rt her m or e,

y ou wi l l r e ly o n i nf or m at i on s y s te ms us ers to as s is t y o u i n c om pr eh en d i ng c om p a ny
c u lt ure f ro m t he p er s p ec t iv e of ot hers .
Un

S yst em s An a ly st a s Sup po rt in g E xp er t

A no th er fu nc t i o n y o u may b e c a l l ed up o n t o f i l l is th at of a s up por t in g s pec i a l is t

wi t hi n a c o m pa ny w he r e y o u ar e fr e qu e nt ly work i n g in a s y s t e ms c ap ac ity . In t h is
fu nc t i o n, t he a n aly s t dr a ws o n pr o f es s i o n al k n ow l ed g e of c o m pu t er ha rd wa re a n d
s of tw ar e, as w e ll as t h e ir ap p l ic a t io ns i n t he w ork p l ac e . T h is work i s fr eq u en t ly no t
a fu l l- fl e dg e d s y s te ms pr oj ec t, b u t r at h er a ti ny c h an g e or d ec is i o n th at a ff ec ts a
ity

par t ic u l ar d e par t me n t.

Y ou are no t m an a g in g th e pr oj ec t as a s up p ort i n g s pec i a l is t ; i ns t e ad , y o u ar e

ac t i ng as a r es o ur c e f or t h os e w h o ar e. M a n y of y o ur ev ery d ay re s po ns i bi l i ti es m ay
be c ov ere d by t h is f un c ti o n i f y ou work as a s y s te ms an a ly s t for a ma n uf ac t ur i ng or
m

s erv ic e c o m p any .

S yst em s An a ly st a s Age nt of Ch ang e

Th e s y s t e ms a na ly s t's m os t ex te ns iv e an d r es p o ns ib l e fu nc t i o n, w he t he r i n ter n a l or
)A

ex t er na l t o t h e or ga n i s at i on , is th a t of a c h an g e a g en t. W he n y o u ex ec u t e a ny o f
th e ac t iv it i es i n t h e s y s te ms d ev e l op m e nt l if e c y c l e ( d es c r ib e d i n t h e fo l l ow i ng
s ec t i on) a n d ar e pr e s en t an d i nt erac t i ng wi t h us ers an d th e c om p any f or an
ex t e nd e d p er i od o f t i m e as a n a na ly s t, y o u a re an a ge n t o f c h an g e (fro m tw o we ek s
to m ore th a n a y e ar ) . A n a g en t o f c h a n ge i s s om e on e wh o ac ts as a c at a ly s t f or
c ha n ge , c r e a tes a s tr at e gy fo r c h an g e, an d c o l l ab or at es w it h o th ers t o m ak e i t
(c

ha p pe n .
 Y our pr es e nc e in th e c om p any h as a n i mp a c t. As a s y s te ms an a l y s t, y ou m us t be
aw ar e of t h is a n d us e i t as a be g i nn i ng po i nt f or y o ur i nv es t i g at i on . As a r es ul t,

e
fro m th e s t ar t of y o ur pr oj ec t , y ou m us t i nt er ac t wi t h us ers an d m an a ge m en t
(as s u m i ng th ey ar e n o t o ne a nd t h e s a m e). Y ou wo n' t b e a b l e t o c om pr e he n d w ha t
pe o p le n ee d to s u pp o r t t he ir w or k in th e c o mp a ny w i th o ut th e ir h e lp , a n d g e n ui n e

lin
c ha n ge w o n' t ha p pe n .

If c h a ng e a p pe ar s t o b e n ec es s ary af ter a na ly s is , th e n ex t s ta g e is t o c re at e a
c ha n ge p l a n w i th t h e pe o p le w ho w i l l be re s po ns i bl e f or pu tt i n g i t in to ac t io n . Y ou
mus t c o ns t a nt ly i nt er a c t w i th t h os e w h o ar e c h an g i ng o nc e a c o n s ens us h as b ee n

On
ac h i ev ed o n t h e c h a n ge t ha t h as to b e m a de . . Y o u pr o m ot e a c ert a in av e nu e of
c ha n ge v ia t he u t il is at i on o f in f or m a ti o n s y s te ms as a s y s te ms a n a ly s t fu nc ti o n in g
as a c h an g e a ge n t. Y o u s h ou l d a ls o tra i n us ers a bo u t th e c h an g e proc es s , b ec a us e
c ha n ges in th e i nf or m at i on s y s t e m d o n ot h ap p en in a v ac uu m ; r a th er, t h ey tr ig g er
c ha n ges t hr o ug h ou t th e b us i n es s .

Q ua lit ie s of t he S y st em s An al y st

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It is c le ar fr om th e a b ov e d ef i n it i ons o f t he t as k s p l ay ed by s y s te m s an a ly s ts t ha t a
go o d s y s t ems an a ly s t m us t p os s es s a d iv e rs e s e t o f at tr i bu tes . B ec a us e s y s t ems
an a ly s ts c o m e in m a n y s h ap es an d s iz es , a ny des c r i pt i o n is b o un d t o fa l l s h o rt i n

si
s om e w ay . Ho wev er , th er e ar e s o me c ha ra c ter is tic s th at mos t s y s te ms a n aly s ts
ap p ea r t o p os s es s .

Th e a n aly s t is , ab ov e al l , a pr ob l e m s o lv er . H e or s h e is a p ro b le m - s o lv er wh o
er
ap pr ec ia t es th e c ha l l en g e o f a n aly s i n g d if fic u lt i es a n d c o m in g up w it h pr ac t ic a l
ans w ers . W he n ap pr o pr ia te , t h e a n aly s t mu s t b e a b le t o a pp ly to o ls , t ec hn i q ues ,
an d ex p er i enc e to s y s te m at ic al ly a ddr es s th e s it ua t io n at h an d . T he a na ly s t mus t
a ls o be a c o m m un ic a tor wh o c a n ma i nt a i n me a ni n gf u l re l at i o ns h ips wi t h o th ers
iv

ov er l o ng p e r i o ds o f t i me . Sy s t e ms a n aly s ts mus t b e ab l e t o c o m pre h e nd hu m a ns '

ne e ds wh i l e e ng a g in g w it h tec h no l o gy , as we l l as h av e s u ff ic ie n t c om p ut er
k no w le d ge t o pr o gr a m me , c o mpr e he n d c o mp u ter c a p a bi l i ti es , e lic i t i nf or ma t io n
req u ir e me nts fr om us er s , a nd c o mm u n ic a te w h at is r eq u ir ed to pro gr a mm ers . T o
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as s is t t he m s h a pe t h e ir c l ie n t c on n ec t i ons , t h ey m us t a ls o hav e s tro n g pe rs o n al

an d pr of es s i on a l e th ic s .

Th e s y s te ms an a ly s t mus t b e s e l f - d is c i p li n e d a nd s e lf - m ot iv at ed , wi t h th e a b i l ity t o
ma n ag e an d c oor d i na t e a l ar g e nu m b er o f p eo p l e a n d pr oj ec t r es ourc es . Sy s t ems
an a ly s is is a t ou g h p r of es s io n , b ut it is a l s o o ne th at is a l way s d ev e lo p in g an d
c ha l l en g i ng .
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3. 1. 6 Att ri but es of Sy st e m An al y st

A s y s t e m a na ly s t is s om e on e w h o u nd er ta k es a s y s t e ma t ic s tu dy a nd r ev ie w o f
m

nu m er ous p ar ts of c o mp a ny i n or der t o es ta b l is h d es ir ed o bj ec t iv es an d d ev is e
proc e d ures t o ac h iev e t he m .
Th e s y s te m a n a ly s t p os s es s es a un i q ue s e t o f t al e nts , i nc lu d i ng c om m o n s e ns e , a
s y s te m at ic fr a me w or k , a n d a d is c i p l in e d a p p roac h t o p ro b le m s o lv i ng . As a res u lt ,
)A

th e a n aly s t m us t pos s es s a u n i qu e b l en d o f a b i l it i es , ex p er ie nc e, p ers on a l ity , a n d

c om m o n s ens e . B ec a us e a s y s t e m is t a il or ed t o a s p ec if ic us er, t he a n a ly s t m us t
be a b l e t o c o mm u n ic at e ef fec t iv e ly . T h e f o ll o wi n g are t h e v ari ous i n ter p ers on a l
s k i l ls th at a s y s te m a n a ly s t s h o ul d p os s es s :

1. Com mun ic at ion S ki ll s - A s y s t e m a n a ly s t s ho u l d b e ab l e t o art i c u la te a nd

(c

s pe ak c l e ar ly , as w e l l as h av e t h e a bi l i ty to work w i th pe o pl e a t a l l l ev els of
th e or ga n iz at i on 's m an ag e me n t.
2. Und er st and ing - A s y s te m an a ly s t s h o ul d be a b le t o rec o gn is e pr ob l ems
an d an a ly s e th e ir s ol ut i ons , h av e a fi rm gr as p of th e c om p any 's ai ms an d
 obj ec t iv es , be s e ns i tiv e t o th e s y s t em ' s i m pac t o n e mp l o y ees a n d
c om pr e he n d th e ir is s u es .
3. Te ac hin g and s e ll ing id e as — A s y s t e m a na ly s t s h ou l d b e a b le t o te ac h

e
ot h er s h o w t o us e c om pu t ers , as w e l l as s e l l i de as an d pro m ot e ad v anc es i n
c om p ut er - as s is t e d pr o b le m res o lu t io n .

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Th e v ar io us T EC HN IC A L S KI L L S th a t a s y s t em an a ly s t s ho u ld hav e ar e :

Cr e ati vit y – T h e a n al y s t s h ou l d b e c r ea t iv e t o h e l p t he us ers t o mo d e l i d eas i nt o

rea l p l a ns a nd d ev e lo p i ng c a n d id at e s y s t e ms t o m atc h us er r e qu ir e me n ts .

On
1. P rob le m sol vi ng and pro j ect m ana ge m en t - A s y s t em a n aly s t s ho u l d b e
c ap a b le o f s o lv i n g pr o b le ms , c o m i ng u p w it h a lt er na t e s ol u ti o ns , s c he d u li n g,
ov er c o m in g l i m its , or ga n is in g t ea m work , a nd k e e p in g tr ac k of c os ts a n d
ac c o u nts .
2. S yst em an al y st — In fu nc t i o na l s pec i fic a ti o ns a n d g en er a l d es ig n , a s y s t e m
an a ly s t s h ou l d h av e a g r e at c o mb i n at i on of bo t h t ec h n ic a l an d no n - t ec hn ic a l
s k i l ls . H e s h ou l d a ls o hav e a c ur i o us m in d a nd a qu es ti o n in g m e nt a li ty .

ty
3. Comp ut e r e xp ert i se - A s y s te m a na ly s t s h o ul d b e f a m il i ar wi t h t h e
fu n da m en t als of c o m p ut er s as w e l l as b us i n es s ac t iv i ti es .

A gr a ph d ep ic ti n g t he i mp or ta nc e of i nt er per s on a l a n d t ec h n ic a l ab i l i t i es fo r a g o od

si
s y s te m an a ly s t d ur i ng t he s y s te m d ev e lo p me n t p h as e is s ho w n b e lo w —
er
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Un
ity

In a d d it i on t o t hes e p e r s on a l s k i l ls , th e s y s t e m a na ly s t s h ou l d p os s es s a ppr o pr ia te
ac a d em ic qu a l if ic at i on s i n s y s t em an a ly s is a nd des i gn or ot h er c o mp u ter - re l at e d
m

de gr e es .

3. 1. 7 S oftw ar e d ev el o pme nt f i rm’ s r ol e in ER P /B us in es s Int e ll i gent Sy st em

)A

Ma ny f ir ms c ol l ec t h u ge a mo u nts of d a ta a nd i nf or ma t io n ev ery day as a r es u l t o f

th e ir b us i n es s o per a ti ons , w hic h c a n b e d if f ic ul t t o k ee p tr ac k of an d ev a lu a te . T o
s tor e t h e d a ta , t h ey us e d an d s ti l l us e a v ar ie ty o f le g ac y s o ft war e an d ma n ua l
s pre a ds he et s s uc h as M ic r os of t Ex c e l. T h e is s u e is th at th e pr oc e d ur e is t i me -
c ons u m in g , la b or - in te ns iv e , an d err or - p ro n e, a nd t he d at a is s tor e d in v ar i ous
(c

s of tw ar e.
 Co m pa n i es us e En t er p r is e R es o urc e P l an n i ng ( ER P) s o ft wa re to c e n tra l is e
i nf or ma t io n an d g a i n be tt er v is ib i l ity i nt o da ta . ER P s of tw ar e is a c e ntr a l is e d

e
bus i n es s m a na g em e n t s y s t em th a t i nt e gr at es a n d s tr e am l i nes al l ar eas of a
c om p any 's o pe r a t io ns , s uc h as p la n ni n g, pro c ure m e nt , s a les an d m ark e t in g , a nd s o
on . B ut w ha t go o d is hav i n g al l o f y our d a ta i n o n e p l ac e i f y o u c a n't us e i t t o g a in

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de e pe r i ns i g hts a n d m ak e bus i nes s dec is i on s ?

Th is is w h er e B us in e s s I nt e l li g e nc e ( BI) c om es in to p lay in an ER P. It e n ab l es
us ers to ac c es s a mas s iv e am o un t o f da t a a nd ef f ec t iv e ly an a ly s e b us in es s
proc es s i n for m at i o n i n or d er to mak e b et t er dec is i ons .

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Wh at i s Bu sin e ss I nt el lig en c e ( BI) ?

Forr es t er Res e ar c h c l ai ms th a t " B us i nes s i nt e ll i g enc e ( B I) is a c o l l ec t i o n o f

ap pr o ac h es , pr oc es s es , a r c h i tec tu res , and tec h no l o gy f or tr ans f orm i n g
uns tr uc t ur ed da t a i nt o ac t i on a bl e in f or ma t io n. I t e n a bl es bus i ne s s us ers to m ak e

ty
i nf or me d d ec is io ns b a s ed on r ea l - t i me da ta , w h ic h c an he l p a c om pa ny s t ay a h ea d
of t h e c om p et i ti o n."

It prov i d es a de t a il e d an d c om pr eh e ns iv e p ic t ure o f t he c o mp a n y 's h is t or ic al a nd

si
c urr en t d at a i n pr ac t is e. It ai ds i n t he r e duc ti o n o f i n ef f ic ie nc ies , th e id e nt if ic at i o n
of m ark et tr e nds , a n d th e s m oo t her r un n i ng of o p era t i ons .

Wh y Bu si ne s s Int el li gen c e in E R P?
er
In E R P s y s te ms , bus i nes s i n te l l ig e nc e en ab l es a n org a n is a t io n t o ex a m in e a n d
ex p l o it h u ge da t a c a pt ur ed by th e E R P s of tw ar e. T he BI s o f tw are t ak es t he
i nf or ma t io n, an a ly s es i t, a n d pr es e nts it i n a us a b l e an d u n ders t an d ab l e s ty le .
Th e fo l l ow i ng ar e s om e of t h e m os t i m p ort a n t as p ec ts of BI :
iv

Dat a An al y si s: Da t a c o ll ec te d fr om v ar i o us o per a t io ns o f a c om p any is us e d t o

ev a l u at e a n d dr iv e m an a ge m e nt c h o ic es , a nd it is o n e o f t he ba s ic as p ec ts of
BI .
Un

Leg a cy Dat a: W it h t h e h e lp of a r el i a bl e BI s ol u ti o n, l eg ac y da ta ga t her e d fr o m

ma ny o t her pr oc es s es or ap p l ic a t io ns c a n b e pr op er ly ex a m in e d. I t's d if f ic u l t t o
ex p l a in ol d d at a w i th o ut a dec e nt B I t oo l .
Tr end s & P at t e rn s: W i th t he a p pr opr i at e t o o ls i n pl ac e, b u s i nes s es c a n
unc ov er tr en ds a nd pa tt er ns in t h e ir d at a a n d m ak e f as t er d ec is io n s .

Bus in e ss In t e ll ig en c e F e at u r es
ity

To day 's m ar k et of f er s a v as t s el ec ti o n of bus i nes s i nt e l l ig e nc e s of t war e wi t h a w id e

ran g e of a pp l ic at i ons . Al l o f t h es e s o ft w are s o l ut i o ns c o m e wi t h a s l e w o f
c ap a b il i t ies th at h el p or g an is at i ons m ak e b et te r, f as t er , a n d m or e i nf or m ed
dec is i ons at a l l l ev e ls .
m

Ac c ord i n g to S el ec t Hu b' s s t u di es , th e gr ap h b e l ow d e p ic ts t h e to p Bus i n es s

In te l l i ge nc e e le m en ts t ha t b uy er s des ir e.
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On
ty
si
er
Sou r c e: S e lec tH u b
iv

Da shb oa rd s:
Th e i nt era c t iv e das h b oar ds ar e i n c h ar ge o f pr ov id i n g bus i n es s es wi t h ins i g hts t ha t
th ey h av e n ev er ha d b ef or e. T h es e das h bo ar ds g iv e d ec is i o n - m ak ers a m ore
Un

ho l is tic v ie w of t h e f ir m by a l lo w in g t he m to as s es s d a ta fr o m ma n y v i ew p o in ts w it h
j us t a f ew c l ic k s .
To n a me a f e w adv a nt ag es :
• Da ta is e as i ly ac c es s i b le a n d us ef u l.
• Pr ov id es c o m pl e te f l ex i bi l i ty for b us i nes s ex p ans i o n.
ity

Dat a V i sua liz at ion s:

Th e tec h n iq u e of pr es e n ti n g d at a i n a gra p h ic a l f or ma t is k no w n as d at a
v is ua l is at i on . B ec aus e v is ua l in fo rm a ti o n i s pr oc es s e d 6 0, 0 00 t i mes f as t er t h an
tex t, p e op l e a t a ll lev e ls o f t h e or ga n is at i on are mor e l ik e ly t o abs orb it .
A to o l th at c a n t ur n da ta f r o m nu m be r s o n a s pre a ds h e et to m e an i n gf u l
m

v is ua l is at i ons is a p op u lar mo t iv a to r f or a be g in n in g i n Bus i nes s I n te l l ig e nc e .

Th e fo l l ow i ng ar e s om e of t h e a dv a nt a ges of d at a v is u a lis a ti o n:

•
)A

Q u ic k d at a a bs or p ti o n i nc r e as es i ns ig hts an d s p e eds u p d ec is io n - m ak in g.
• Da ta is s i mp l e t o g et a nd c om pr eh e nd .
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 Rep or tin g:
Re p ort i ng is a s ubs e t o f B us i n es s In te l l i ge nc e t h at v is u a lis es d a ta i n t he f or m of

e
ta b les , gr ap hs , an d c har ts . BI r e p ort i ng a n a ly s es d at a m or e pre c is ely f or e as ier
c om pr e he ns io n .
Sc orec ar ds , das h bo ar ds , K PI me tr ic s , O L A P, ad hoc qu er i es , an d ot h er b us in es s

lin
rep or t in g t o o ls t ha t pr ov i d e v a l u e t o s u m mar is e t h e p as t i n c l ud e s c orec ar ds ,
das h bo ar ds , K PI m e tr i c s , O L A P, a d h oc q uer i es , a n d s o o n.
B us i n es s In t e ll i g enc e Re p or t i ng 's A dv a n ta g e s :
• Da ta qu a l ity is i mpr ov ed .
• Th e pu r c h as e pr oc e d u r e is m a de eas i er.

On
P re di cti v e An al yt i c s:

Da ta , s t at is t ic a l a lg or it h ms , a nd m ac h i ne l ear n i ng a ppr o ac h es are c o mb i n ed i n

pre d ic t iv e a n a ly s is t o pr ov i de im pr ov ed ins i gh ts i nt o t he fu tur e ou tc om e o f d at a
bas e d on p r i or d at a. I t's no t s o m uc h a b ou t w ha t ha p pe n ed as it is a b ou t why i t

ty
ha p pe n ed an d w ha t m i gh t h ap p en in t h e fu t u re.

Pr ed ic t iv e a n a ly t ic s h a s t he f o l lo w in g a dv an t ag es :

•
•
si
Im pr ov es pa tt er n r ec o gn i t io n a nd de te rs c r i m in a l ac t iv i ty .
As s is ts b us i nes s es i n at trac t in g , r et a in i n g, a n d gro w in g t he ir c o ns u m er
bas e .
er
Bus in e ss In t e ll ig en c e T ool s an d P latf or m s
Th e s y s t ems , s o ft wa r e, an d a p ps t ha t s tr iv e t o l oc at e, r etr i ev e, an d a n a ly s e d at a
are k n ow n as bus i nes s i nt e l l ig e nc e t o o ls . T h er e ar e n u me ro us bus i n es s
iv

i nt e ll i g enc e s ol u ti o ns av a i l ab l e t o as s is t y ou d is c ov er pa tt er ns an d ge t i ns i gh ts
fro m y o ur d at a i n or d e r t o m ak e s tr a te g ic a n d tac t ic a l d ec is io ns .
Th e G art ne r M a g ic Q u adr a nt is th e p in n ac le of res e arc h i n a c e rt a in m ark e t,
prov i d i ng y o u w i th a b r oa d v ie w of t h e m ark et's r iv als . Th e a n a ly t i c s a n d b us i n es s
Un

i nt e ll i g enc e p l at for ms ar e r epr es e nt ed in t h is 2 0 20 M a g ic Q u adr a nt .

Her e ar e a f ew B us i nes s I nt e l l ig e nc e t o o l s t o he l p y o u i mpr o v e y ou r dec is i on -

mak i n g a nd s oc i a l c o l l ab or at i o n ab i l it i es :

Mi c ro soft P ow er B I :
ity

M ic ros o ft P ow er B I is a pr e m i er bus i nes s i n t e ll i g enc e p la tf or m th at c o mb i n es d a ta

pre p ar at i on , v is u a l d at a dis c ov er y , i n ter ac t iv e das h bo ar ds , a nd e n ha nc ed a n aly t ic s
i nt o a s i ng l e of f er i n g. Th is t oo l c o m b in e s d at a fro m a v ar i et y o f s ourc es t o
ge n er at e in t er ac t iv e , i m mer s iv e das h bo ar ds an d r e por ts th at d e l iv e r c o mpr e h ens iv e
m

i nf or ma t io n w hi l e a ls o dr iv i n g b us in es s o utc o mes .

M ic ros o ft BI is av a i l a b le as a c l ou d - b as e d Sa a S s o lu t i o n o r as an on - pr e m is e
s o lu t io n i n P o wer BI R ep or t S er v e r.
)A

Ac c ord i n g t o t he G ar tn er r es e ar c h, d ec o m pos i t io n tr e e gr a ph ic s , L i nk e dI n da t a
c on n ec t iv ity , a n d g eo gr a ph ic m a pp i n g en h anc e m en ts ar e am o ng th e n ew
c ap a b il i t ies a d d ed t o M ic r os o ft B I rec e nt ly .
(c
 Tab le au :
Ta bl e a u's g oa l is t o pr ov id e a s im p l e , dy n a m ic , v is u a l - ba s ed ex p l or at i on

e
ex p er i enc e t ha t a ll o w s b us in es s us ers to ac c es s , pr ep ar e, a n a l y s e, a n d pres e nt
da t a r es u l ts w it ho u t r eq u ir i ng a ny t ec h n ic a l k no w le d ge or s c r i pt i ng . Ta b le a u's
s of tw ar e is m os t ly us ed o n- pr e m is es . I t c a n b e us e d as a s t an d - a l o ne d es k t op

lin
ap p l ic a t io n or as pa r t of a c on te n t s har i n g s erv e r.
• Des k to p v er s i o n of T a b le a u ( for any o ne)
• Ta bl e a u S er v er ( an a ly tic s f or b us in es s es ), w h ic h is i ns t a ll e d l oc al l y .
• O n l in e Ta b l ea u ( h os t e d a na ly tic s f or or g an iz at i ons ) .

On
Ta bl e a u O n l in e is a c l ou d - b as e d s o ft war e a s a s erv ic e ( S aa S) pr od uc t. Ac c or d i ng
to T a bl e au 's c us to m e r r ep or t, t h e c o mp a n y 's ov er a l l rev e nu e i nc re as e d by 1 4
perc e nt fro m th e f ir s t s ix m o nt hs of 20 1 8 t o th e f irs t s ix m on t hs o f 2 0 1 9, br in g i ng i t
to s li g ht ly ov er $ 9 00 m il l i o n.

Q li k Vi ew :

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In t h e Ma g ic Q u a dr an t 20 2 0, Q l ik is t he c le ar l ea d er. V is u a l iz a t io ns , d as hb o ar ds ,
an d ap ps ar e a l l pos s i b le w it h t h is t ec hn o l o gy . Q l ik V i ew a ls o h as s om e i nt er es t i ng
fe at ur es , s uc h as :

fl ex i bl e .
si
S i mp l e dr a g - an d- dr op in t er f ac es f or c r ea t in g dy n am ic d at a v is u a l is at i ons th a t ar e

• Na tur a l s e ar c h m ak es it eas i er to nav i g at e c om p l ex d at a.

er
• It res p on ds t o a l l c ha n ges in a ti m e ly m an n er .
• Mu l t ip l e d at a s o ur c es an d f i le k in ds ar e re i nf orc e d by Q l ik Vi e w.
• Th e t ec h n o l ogy a ls o ens ur es t h at d at a a n d c on te n t a re s ec ur e ac r os s a l l
dev ic es .
iv

Cus to m ers g en er a lly us e d i t f or d ec e n tra l i s ed a n a ly t ic s ( 7 0 p er c en t) a nd a g i le

c en tr al is e d BI pr ov is i o n in g ( 6 6 perc e nt) , ac c ord i n g t o t he G a rt ner rep or t. Q lik a ls o
bo u gh t P od i u m Da ta i n J uly 2 0 18 t o ex pa n d its d at a m an a g em e nt c a pa b i l it i es . I n
Un

J an u ary 20 1 9, Q l ik pur c h as ed Cr unc h D at a, a c o mp a ny t h at s pec i a l is es i n

c onv ers at i o na l a n aly t i c s .

SA S:

In t he Ma g ic Q u adr a n t 20 2 0, S A S is a f or e run n er. I t is a s e lf - s e rv ic e ap p l ic a t io n

ity

th at a ll o ws us er s t o m an i p ul a te da t a a nd a n a ly t ic s i n ord er t o mak e b et te r b us in es s
dec is i ons . S A S' s o p h is t ic at ed pr e d ic t iv e an a ly s is is o ne o f i ts mos t po p u lar
fe at ur es . S A S V iy a a l s o h as V is ua l An a ly t i c s . S A S V is ua l An a ly tic s is g en er a lly
us e d on - pr e m is es , b u t i t is a ls o av a i l ab l e i n t h e c l o ud a n d t hro u gh o th er hos t in g
c ho ic es .
m

Ac c ord i n g to G ar tn er 's 20 2 0 f orec as t , SA S i m pr ov e d its a u g me n te d a n a ly t ic s

c ap a b il i t ies i n 2 0 19 . I t n ow fe at ur es AI - dr iv en d at a pr e par a ti o n a dv ic e as w e ll as
au t om at ic fo r ec as ts w i th " w h at i f?" S A S has a ls o i mp rov e d t he l oc at i on i nt e l l ig e nc e
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c ap a b il i t ies o f V is u al A na ly tic s an d re l e as e d a n e w SD K .

Ben ef its of B us in es s Int ell ig en ce i n E R P S yst e ms

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 B us i n es s i nt e l li g enc e' s u lt i m at e pu rp os e is to a n aly s e , c om pr eh e nd , a nd m ak e k ey
dec is i ons b as e d on d at a. E n d - us ers c an c l os e ly ex am i n e d at a a nd c o nv er t it i nt o

e
me a n in g fu l k n ow l e dg e us i ng BI in te gr at e d E RP s of tw ar e.
To b et te r gr as p t h e be ne f its , l et's lo ok a t In 4 S ui t e® , a B I i nt e gr at e d E R P s of tw ar e.
(a) C us to m iz ab l e Re p or t G en er at i on

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Th e c r e at i o n of r ep or ts is t he f irs t s t e p i n t he da ta pr oc e s s i ng proc es s . It
rep res e nts da ta i n m u lt i p le l ev e ls of i nt erac t iv ity , i nc l ud i ng dr i l l - d o wn , s or t in g, a nd
fi l ter i n g c h o ic es . T h e r e a r e a ls o s o m e ex t ra o p t io ns t h at a l lo w th e en d - us e r t o
ta i l or th e d at a f or d e e per ins i g hts .

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(b) I nt er ac t iv e D as h b oar d Cr e at i on
W ha t's t he s t at us o f y our le a ds th is m o nt h ? Hav e y o u no t ic e d a d e c reas e i n s a l es ?
If t h at's t he c as e, w h y di d it fa l l ? A ll of t h es e q ues t io ns s ho u l d be a ns w er ed by
y ou .
In 4 Su i te ® c a n d ev e lo p i nt er ac t iv e d as hb o ard s th at c a n be c us t o m i s ed ac c or di n g t o
th e n e eds of t h e us er . T he s of tw ar e of f ers a dr a g - an d- dro p f e at ur e t ha t i nc r eas es
y our c om p any 's o per at i on a l a nd c os t e ff ic ie n c i es .

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(c ) R e al- T im e L o ok At Th e Da ta
Th e n ic es t p ar t a b o ut B I s o ft war e t ha t's in te g r at ed wi t h an ER P s y s t em is th a t

dec is i ons .
si
ma n ag ers c an s e e d at a i n r e a l t i me , wh i c h m ak es it eas i er f or t he m t o m ak e

Co ns id er t he c as e o f a p iec e o f s of tw ar e l ik e In 4 S ui t e® . If t he C E O w an ts t o k no w
ho w m any le a ds wer e c r e at e d th is m o nt h, he c a n g o s tra i g ht t o t he d as hb o ar d ,
er
wh ic h d is pl ay s t h e m on t hly c us t o mer c ou nt , ex p l a na t io n p o i nts , l ea d a g e in g, le a d
i nt eres t i n pr oj ec t - w is e a na ly s is , an d ov er a l l l e ad c onv ers io n . T h i s i n for m at i on wi l l
a id in th e id e nt if ic at i on of pa tt er ns a n d p ot e nt i al for pr oc es s i mp rov e me n t i n a
l on g- t er m r es e ar c h .
iv

(d) M ov in g B ey on d El e me n tar y R e po rt i ng
A no th er ar ea w her e BI s of tw ar e c a n hav e a t rans f orm a tiv e ef f ec t o n t h e b us in es s is
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rep or t in g f unc t io ns . I n4 S u it e ® s e ek s t o prov i d e us e rs w i t h a m ore dy n a mic

env ir o nm e nt in w h ic h t hey c an c h a ng e d at a a s n e ed e d.
Us ers c a n a ls o ex po r t da ta fr o m be h i nd th e c har ts t o M ic r os of t E x c e l i n r ea l t i m e
us in g t he BI s o ft w ar e . I n4 S u it e ® c a n a ls o b e us ed t o c o py gr ap hs a n d c har ts t o a
P ow er po i nt p r es e nt at i on in r ea l t i me an d k e ep it u p da t ed .
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( e) C os t R ed uc ti o n
Th ere ar e c os ts c o nn ec t e d w it h th e o per a ti on a n d i ns ta l l at i on o f BI , bu t t h e r et ur n
on i nv es t m en t is s u ff ic ie n t t o j us t ify th e i nv es t me nt . D a ta c o ll ec ti n g, r e po rt
ge n er at i ng , pr ogr a m mi ng , a nd I T tra i n in g ex p en d it ur es ar e a l l r e duc ed .
m

(f) M in i m iz es T h e R is k
Na tur a l ly , any or g a n i s at i on en t ai ls s om e r is k , bu t B I re p ort i n g to o ls c a n as s is t
m it i ga te t h os e r is k s . Th e B I tec h n ol o g ies ac c o mp l is h th is by g iv i n g r e al - t i me ,
hy p er - ac c ur a t e r ep or t s a nd as s is t in g e nt er pr is es in f u lly c om pr e he n d in g t he d at a .
)A

In t h e en d , it ai ds i n t he el i m i na t io n o f th e n ee d f or g ues s w ork .

Futu re of Bu si ne s s I nt e lli ge nc e
W h il e w e s p ec u l at e o n t he f ut ur e o f B I, i t is c rit ic a l to r em e m ber t h a t t h e s c o pe of
B us i n es s In t e ll i g enc e s of tw ar e is c o nt i n ua l ly ex p an d in g . In t h e ne a r f ut ur e, BI t oo ls
(c

wi l l b ec om e m or e c o l l ab or at iv e, mak i ng c o ll ab or at i n g eas i er.

 Th ir d- p ar ty s y s te ms w i l l i nc r e as i ng ly b e c o n n ec t e d wi t h BI , m ak in g da t a proc es s i ng
an d res p on d i ng t o ac ti on a b le ins i g hts e as ier . Th e t ec h n o lo gy i n fras truc tu re w i l l b e

e
ab l e t o ha n d le a b ig v o lu m e of d a ta an d w i ll be ab l e to s up p ort b us i nes s
i nt e ll i g enc e s y s t ems b et ter .

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3. 1. 8 S A P, O RA CL E, BA AN , P EO PL E SO F T, M IC RO SO FT and G O O G LE rol e in
ER P /B us in es s Int e ll i gent Sy st em

SA P

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W ha t d oes t h e ac r ony m S A P s t an d f or?
W he n tr ans l at e d, t he or i gi n a l na m e f or S A P is Sy s te m A n aly s is an d Pr o gr am
Dev e lo p m en t, a nd i t i s i n it i at ed as S A P . Be c aus e S A P is an i n it i a l ra t her t ha n a n
ac ro ny m, it is pr on o u nc e d as in d iv id u a l l et t ers r a th er t ha n as t h e w or d " s ap ." Th e
" S E" i n S A P SE r e f er s t o S oc ie t as E ur op a ea , w hic h is an a l og o us to I nc . i n th e
Un i te d S ta t es .

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S A P S E is a m ul t in a ti on a l s o ft war e c o m pa n y t ha t is a mark e t l ea der in t h e f ie l d of
en t erpr is e r es our c e p l an n i ng ( ER P) . T he c o mp a ny no w h as c us t o me rs in ov er 1 80
c ou n tri es , w it h t he m aj or i ty of th e m b ei n g s m a l l a nd me d i um - s iz ed bus i nes s es
(S M B). S A P d at a c e ntr es pr ov i de o n - pr e m is es , c l o ud , a n d h y br id de p l oy m e nt

si
mo d e ls , w it h c lo u d c o mp u ti n g p os s ib i l it i es b e in g a f oc us f or t h e c o mp a ny 's f ut ur e.

W ha t ex ac t ly is S A P E RP ( en t er pr is e res o urc e p la n n in g) ?
er
S A P S E is a le a d in g pr ov i d er o f e nt er pr is e res o urc e p la n n in g ( E RP ) s of tw ar e a n d
re la te d b us in es s s o lu ti o ns . C us t o mers c a n us e t h e c om p any 's ER P s y s t e m t o
ha n d le a l l o f t he ir bu s i nes s pr oc es s es in o ne p lac e , i nc l ud i ng a c c ou n ti n g, s a les ,
pro d uc t i o n, h u m an r es our c es , a nd f in a nc e . I t's a ls o re g ard e d as t he fo u nd a ti o n o f
iv

S A P's s o ft war e s o l ut i o ns .
Th e i nt erf ac e h e lps i mp os e f in a nc ia l , pr oc ed ur a l, a n d l e ga l c o n tro ls by ens ur i ng
th at i n for m at i o n f l ows fr o m o n e S A P c o m p on e nt t o an ot h er wi t h ou t th e n ee d for
red u n da nt d a ta e ntr y . It a ls o m ak es i t e as i er to m ak e th e m os t us e o f r es ourc es
Un

l ik e la b ou r , m ac hi n es , an d pr o duc t io n c a p ac i t y .

S A P E R P s o ft war e i s m a de up of s ev er a l k ey m o du l es t ha t ar e d iv i de d in to
fu nc t i o n a l a nd t ec h n i c a l c a te g or ies . T h e f o ll o wi n g are s o m e o f S A P's fu nc ti o na l
mo d u les :

•
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Hu m an C a p it a l M an a g em e nt ( S A P HC M)
• Pr od uc ti o n P l an n i ng ( S A P P P)
• Ma t er ia ls M a na g e me nt ( S A P MM)
• Pr oj ec t Sy s te m ( SA P P S)
m

• S al es a n d D is tr i bu t io n ( S A P SD)
• P la n t M ai n te n anc e ( S A P P M)
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• Fi na nc e a nd c on tr o l l i n g ( S A P FI CO )
• Q u al i ty M an a ge m e nt ( S A P Q M)
Th e S A P E R P s of tw ar e s y s te m , a ls o k n o wn as S A P E R P Ce n tra l C om p on e nt ( S A P
EC C) , is t he u m br el l a ter m f or S A P's f u nc t i o na l a n d tec h no l o g ic a l c om p on e nts t h at
(c

a ll o w bus i n es s es t o m an a ge t h e ir b us i n es s p roc es s es t hr ou g h a s i n g le s y s t e m.
EC C is S A P's o n - p r e m is es v er s io n , wh ic h is ty p ic a lly us e d i n m e di um - an d l ar g e -
s iz ed b us i nes s es . S A P 's Bus i n es s O n e E RP pro d uc t is d es i g ne d f o r s m a l l
bus i n es s es .
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ty
si
Th is d ia gr a m d ep ic ts S A P's f unc t io n a l an d t ec h n o lo g ic a l mo d ul es .

Cros s - a pp l ic at i o n c o m po n en ts , s uc h as c or por a te doc u m en t m a n ag e me n t s y s t ems

an d pro d uc t l if ec y c le ma n ag e m en t ( PL M) , a re av a i la b l e i n S A P a nd c a n b e us e d
er
wi t h any of t he c or e m od u l es .

Wh at i s th e SA P E R P sy st em a nd how do e s it w or k?
iv

A t hr ee- t ie r , c l ie nt - s er v e r d es ig n is c o m mo n f or S A P E R P s y s t e ms . T h is
c on f ig ur at i o n i s pr e fer r ed s i nc e it a l lo ws f or gr ea ter f l ex i b i l ity a nd s c a la b i l ity . T he
pres e nt at i o n t i er , a pp l ic at i on t ier , an d da t a bas e ti er ar e t h e t hr e e lev e ls us e d by
S A P E R P s of tw ar e.
Un

Th e pres e nt at i o n ti er de l iv er s th e S A P gr a p h ic a l us er i nt er fac e t o th e us er ( S A P
G UI) . Th e S A P G U I c an be ins t al l e d on e it her a M ic r os o ft W i nd o ws or a M ac
c om p ut er . T he S A P G UI s er v es as a p o in t of c o nt ac t b et w ee n us ers an d th e S A P
ER P s y s t e m.
ity

Th e S AP E R P s y s t e m' s ap p l ic at i on t ier is i ts he ar t. Pr oc es s i n g c l i en t tr a ns ac t i ons ,

i mp l e me nt i n g b us i n es s l o g ic , r un n in g r ep ort s , m on i tor i n g d at ab as e ac c es s , p ri n ti n g
j obs , a nd c o n nec t i ng wi t h ot h er a pp l ic at i ons ar e a l l h an d l ed by t h i s l ay er.

B ot h bus i n es s - g e ne r a te d d at a an d S A P a p p lic a ti o n pr ogr a mm e s ar e k ep t i n th e

da t ab as e ti er .
m

W he n t h e a p pl ic at i o n a n d pr es e n ta t io n ti ers c ol l a bor a te , t he a p p l ic a t io n t i er
rec e iv es t h e d at a a n d s en ds it t o t h e pr es en t at i on t ier . Th e ou t pu t wi l l be d is p l ay e d
i n t he S A P G UI d ur i ng t he pr es e n ta t io n. Af t er t h at, t he d at a is s av e d in t he
)A

da t ab as e ti er .

S A P i ns ta nc es r e fer t o a l l pr oc es s es th at are s tar t ed or s t op p e d w it h in th e S A P

ER P s y s t e m.
(c

A d is pa tc her an d n u m er o us w or k pr oc ed ur e s ar e pr es en t i n e ac h i ns ta nc e. T as k s
are as s i gn e d t o o ne of t h e w ork pr oc es s es by th e d is p atc he r. D if fe re nt work
 proc es s es ar e av a i la b l e i n th e S A P E RP s y s te m to c orr es po n d t o v a ri o us t as k s .
Th e fo l l ow i ng ar e ex a mp l es o f work proc es s es :

e
• W or k f l ows f or m a na g i n g us er r e qu es ts f or o n l i ne tr a ns ac t io ns v i a d i a lo g ue ;
• W or k pr oc es s es t ha t c on d uc t d a ta b a s e u p d at es ar e up d at e d;

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• s po o l w or k pr oc es s es , w h ic h a l l ow t h e S A P s y s te m t o pr in t;
• ba tc h wor k pr oc es s es , wh ic h h an d l e any b ac k gr o u nd j o bs t ha t hav e b e en
s c he d u le d i n t he s y s t e m; a n d
• W or k pr oc e du r es t ha t a l lo w ap p l ic a t io ns to c o mm u n ic a te w it h o n e an ot h er,
s uc h as S A P R/ 3 a n d S A P R/ 2.

On
W h il e t h e S A P ER P s y s te m c a n h av e m u lt i p l e a pp l ic at i o n i ns t a nc e s , o ne par t ic u l ar,
c ore i ns t a nc e m us t al way s be pr es e nt ( CI) . Th e m es s ag e pr oc es s an d t h e e n qu e uer
s erv e r ar e th e tw o p ar ts of t he C I. Th e mes s a gi n g proc es s es t ab l i s hes
c om m u nic a ti o n b et w e en th e S AP s y s te m's a p p lic a t io n i ns ta nc e s . T h e e n qu e uer
s erv e r is i n c h ar ge o f da t ab as e ta b le loc k s .

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Th e S A P E R P s y s te m is m ad e u p o f v ar io us ap p l ic a t io n m o du l es i n a d di t io n t o th is
bre ak d ow n. E ac h mo d u le is m e an t to h o us e S A P ap p l i c a t io n a pp l ic at i ons as w e ll as
s pec i a l is e d b us in es s d at a f or a c er ta i n i nd us try .

O r ac le B us in es s Int e l lig en c e S er v e r
si
er
iv
Un

Th e O rac l e Bus i n es s I nt e l l ig e nc e S u it e E nt er pr is e E d it i on P lus p l a tf or m is bu i l t

aro u n d a g en u i ne B I s er v er th a t is m e an t t o b e ex tr em e ly s c a la b l e, w it h
c onc urr e nc y an d p ar a ll e l is m op t im is e d t o m ak e t h e v al u e of B I ap p l ic a t io ns
av a i l ab l e t o t he wi d es t p os s i bl e au d ie nc e. It a ll o ws fo r c e ntr a l is e d da t a ac c es s a nd
c a lc u l at i on , t h er e by p r ov id i ng a b i g p i p e v i a wh ic h ev ery on e in th e org a n is a t io n c an
c ons u me a ny i nf or m at i on i n a ny f or m. A l l i nf or ma t io n - c on s um i n g bus i nes s
ac t iv it i es , inc l u di n g as d as h b oar ds , ad h o c q uer i es , i nt e ll i ge nt in t erac t io n
ity

c ap a b il i t ies , e nt er pr i s e a nd p r o d uc t i on rep or t in g, f i n anc i a l rep or t in g, O L A P

an a ly s is , d a ta m i n in g , a nd ot her W eb Serv i c e - b as e d ap p l ic a t io ns , r e ly on t h e BI
s erv e r (J 2 E E a nd .N E T) . T o of fer v a l ue , al l of t hes e ap ps r e qu ir e d e e p ac c es s to
l arg e c o l lec t io ns of d a ta ac r os s t h e c om p a ny , as w e ll as a s o ph is t i c at e d c a lc u la t io n
an d a g gre g at i on ar c h i t ec t ur e pr ov i d ed by th e p l at for m .
In o n e c om p l et e ly i nt e gr a te d We b e nv i r on m en t, t h e p la tf or m e na b l es a fu l l
m

c om p l em e nt of ac c es s , a na ly s is , a nd i nf or ma t io n dis s e m in a ti o n c ho ic es . E ac h of
th es e c o mp o ne nts c at er s t o d if fer e nt au d ie n c es i ns id e t he c o mp a n y , eac h o f w ho m
has a v ar ie d ap p et it e f or th e s am e un d er l y i ng d at a b ut r e q uir e s dis t inc t ac c es s
me t ho ds .
)A

Un l ik e ot her BI t oo ls , ho w ev er , a ll o f th e c o mp o ne n ts are i n te gr at ed i n to a s i n g le
arc h i tec t ur e , r es u lt i ng i n a s e am l es s a nd s tr a i gh tf orw ar d us er ex pe r i enc e.

O r ac le B us in es s Int e l lig en c e Da shb oa rd s

(c
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On
O rac le BI I nt er ac t iv e Das h bo ar ds g iv es ev e ry k n ow l e dg e work er c l ear , i nt er ac t iv e
ac c es s t o ac t io n ab l e, dy n a m ic a l ly t a il or e d i nf or ma t io n b as ed on t he ir f u nc t i on an d
i de nt i ty . Th e en d us er wor k s w it h l iv e re p orts , pr o m pts , c h ar ts , ta b l es , p iv ot ta b l es ,
gra p h ic s , a nd t ic k er s i n t h e O r ac l e B I I nt e l l i ge nc e D as hb o ar ds e n v ir on m en t, w h ic h

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is b as e d o n a p ur e W eb ar c h i tec t ure . Dr i ll i ng , ex p lor i n g, a l ter i n g , an d i n ter ac ti n g
wi t h t h es e f i nd i n gs a r e al l av a i la b l e t o th e us er . O r ac l e BI I nt e l li ge nc e Das h bo ar ds
c an a ls o pu l l d at a fr o m th e I nt er n et , s h ar ed fi l e s erv er s , an d d oc u me nt
rep os it or i es .

O r ac le B us in es s Int e l lig en c e Ans w e r s

si
er
iv
Un

In a p ur e W eb ar c h it ec tur e, O rac l e BI A ns w ers giv es fu l l e nd us er a d ho c

c ap a b il i t ies . Us er s m ay e as i ly c r e at e c h ar ts , p iv ot ta b l es , r ep o rts , an d v is u a l ly
ap p ea l i ng das h bo ar ds , a ll of w h ic h ar e fu l l y i n ter ac tiv e a n d d r i l l ab l e a n d c a n be
s av e d , s h ar e d, m od i fi ed , f or m a tt e d, or em b ed d ed i n th e us er's pe rs on a l is ed O r ac le
BI I nt e l li g enc e Das h b oar ds . T he e nd res u lt is un pr ec ed e nt ed d e gre es of b us in es s
ity

us er s el f - s uf f ic i e nc y i n a c o m p le te ly s af e a nd c o ntr o l l ed IT env ir o n me n t.

O r ac le B us in es s Int e l lig en c e De li v er s
m
)A
(c

O rac le BI D e l iv e r s is a pr o ac t iv e i nt e l l ig e nc e s ol u ti o n th a t m o n it ors a nd al er ts
us ers o n b us i nes s ac t iv it i es ac ros s a v ar ie ty o f c ha n ne ls , inc l u d in g em a i l,
das h bo ar ds , a n d mo b i l e d ev ic es . O rac l e B I De l iv ers fe a tur e s a s e lf - s erv ic e a l ert
 c rea t io n a n d s u bs c r ip ti o n i nt er fac e t ha t is ac c es s ib l e v i a t he W eb . Th is n ex t -
ge n er at i on s o l u ti o n m ay s ta r t a mu l tis t ep , mu l t ip ers on , m u lt i a pp l ic at i on an a ly t ic a l

e
work f lo w a n d f e ed c o nt ex t u a l i nf or m at i on t o o th er a ler ts . It c a n a ls o d y n a m ic a l ly
c ho os e r ec i pi e nts a n d c us to m is ed c o n te nt t o e ns ur e t ha t th e c orr ec t us ers rec e iv e
th e r i g ht i n for m at i o n a t t h e r i g ht t i me .

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O r ac le B us in es s Int e l lig en c e Pub li sh e r

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O rac le B I P u bl is h er ( p r ev io us ly k n ow n as X ML P ub l is h er) is a s c a l ab l e a n d ef f ic i e nt
rep or t in g s o l ut i on f or c om p l ex a nd dis tr i bu t ed s y s t e ms . I t es ta b l i s hes a c e ntr a l is e d

si
i nfr as tr uc tur e f or s ec ur e ly c r ea t in g a n d tr ans m it t in g in f orm a ti o n t o e mp l oy ees ,
c us t o mers , a n d b us in es s p ar t n er s . M ic ros o ft Wo rd or A d ob e Ac r ob a t c a n b e us e d
to c r ea t e O r ac l e BI P u b lis h er r e p ort for m ats , w h ic h m os t us ers ar e alr e a dy f am i l i ar
wi t h. Yo u m ay a ls o us e O r ac l e B I P u bl is h er to c o m b in e d at a fr o m s ev er a l s o urc es
er
i nt o a s i n g le o ut p ut d oc u m en t. R ep or ts c a n be pr i nt e d, e ma i l ed , fax e d, s en t ov er
W eb D av , or p ub l is he d to a p or ta l . O r ac le BI P u bl is h er c an b e us e d in d e pe n de nt ly
or i n c o nj unc t io n w i th O r ac l e Bu s i n es s I nt e l l ig e nc e S ui t e E nt er pr is e E d it i on P l us .
O rac le B I P u b lis h er mak es us e of c o mm o n d as h b oar d i ng , m e ta d at a, s ec ur i ty ,
iv

c om p ut at i o n, c ac h i n g, an d in te l l i ge n t re q ue s t g en er at i o n s erv ic es w h en ut i l is ed as
par t o f th e s u it e .
Un

G O O G L E:
B us i n es s i nt e l li g enc e ( BI ) is th e ac t o f c o l l ec t i ng a n d an a ly s in g da t a f or us e by
org a n is a t io ns i n t h e ir s tr at e gi c a nd ev ery d ay d ec is io n - m ak in g p roc es s es ,
l ev er a g in g t he c o m b in ed po w e r of p e op l e a n d tec h no l o gy .

Lo ok er, a bus i n es s in t e ll i g enc e pr o d uc t fr om G o og l e C l o ud , p rov i d es a s i n g le v i ew

ity

of y o ur c o m pa ny 's da t a.

Bus in e ss in t e ll ig en c e o v e rv ie w

Ty p ic a l ly , th e b us i ne s s i n te l l i ge nc e pr oc e s s is c o ll ec ti n g f ir m da t a i nt o a d a ta
m

war e ho us e or eq u iv a l en t r ep os i tory , t h e n a na ly s i ng t he d a ta w it h a pr op er ly bu i l t
to o l. A c or p or a t io n m i gh t, f or ex a m pl e , ex am i n e c l i en t o n l in e b uy in g b e hav i o ur,
op er at i o na l ex p en d it ur es , or r eg i on a l s a l es d at a. An o th er c o m pa ny c an c o m p are its
bus i n es s op e r at i o ns to i n dus tr y b e nc h m ark s .
)A

Th ere are t hr ee ty p es of t o ols t h at m ak e u p a b us i n es s i nt e l l ig e nc e s o lu t io n :

(c

O n- pre m is es : T h es e r un o n y our c o m pa ny 's i nfr as tr uc tur e a nd ar e fr e qu e nt ly us ed

i n c o nj u nc ti o n w i th t r ad i t io n a l d at a w ar e ho us es . Ho w ev er , t h ey m a y be l es s
s c a la b le t h an c lo u d - ba s ed al t er n a tiv es .
 O p en s ou rc e : T hes e s o lu t io ns a r e i nex p ens i v e, an d if th ey 'r e c lo u d - b as e d, t h ey c a n
a ls o h e l p y ou s av e m o ney on in fr as tr uc t ur e. O p en s o urc e to o ls , on t he o t her ha n d,

e
s ti l l n ec es s i t at e a c er t a in lev e l of un d e rs t a n d in g a nd ma n ua l c o d i n g to be e ff ec tiv e .

Cl o ud - b as ed : C l ou d - bas e d b us i nes s i nt e l l ig e nc e s o lu t io ns e x c e l a t h a nd l i ng

lin
s tre a m in g d at a a n d e nor m o us a mo u nts of i nf or ma t io n . T h ey c a n a ls o s av e mo n ey
bec a us e t he c l ou d v en dor t ak es c ar e o f t he i nfr as t ruc tur e a n d k no wl e dg e ne e de d to
k ee p t he env ir o nm e nt r un n i ng .

MI CRO S O FT

On
M ic ros o ft's bus i nes s i nt e l li g enc e ( BI) p ro d u c ts as s is t f ir ms i n tr ans f orm i n g d at a
i nt o s o ph is t ic a te d , e a s y - to- u nd er s ta n d r e pr es e n ta t io ns t ha t ar e s ho w n wh er ev er
dec is i ons ar e m ad e. O r g an iz at i o ns m ay us e th es e s o l ut i ons to dev e l op am as s i ng
da t a- ex p l or a t io n ex p er i enc es t h at lo ok an d a c t l ik e t he ot h er M ic r o s of t t ec h n o lo g ies
th ey us e on a d a i ly b as is , al l ow i n g t he m t o g e t u p a n d ru n n in g q u ic k ly . T hey m ay
a ls o us e t h e l i br a r y of d at a c o n ne c t ors t o c on n ec t t o m aj or c l o ud a n d o n - pr e m is es

ty
s ourc es i nc lu d i ng Ex c e l, S har e P o in t, Az ur e SQ L D at a bas e , Dy na m ic s 36 5 , a n d
S al es forc e , as we l l as dev e l op n e w o nes .

Pot ent ia l B en ef it s of BI S e r vi ce s

si
Thr ou g h b u il t - in au t o ma t io n a n d i nt e l l ig e n c e, M ic r os of t's B I s o l ut i ons mak e i t
s i mp l e f or b us i n es s es to pr ep ar e an d mo d e l da t a. T h ey may l ev e r ag e hu n dr eds of
er
da t a v is ua l is at i ons , A I - po w er e d f e at ur es , a n d br an d i ng op t io ns t o mak e t h ei r r e por t
mo re us er - fr i e nd ly . T he IT g ia nt 's BI s o lu t i ons pr ov id e s op h is t ic at e d, s e lf - s erv ic e
an a ly t ic a l an d en t er pr is e BI to o ls to ev ery o ne i n a n or g an iz a ti o n —fr o m bus i nes s
an a ly s ts a nd B I s p ec i a lis ts t o b us i nes s us ers — t o h e lp th e m m a k e b et t er, f as ter
dec is i ons .
iv

A no th er a dv an t ag e o f M ic r os o ft's BI s o l ut i o n is t h at d at a ac c ur ac y an d s ec ur ity c a n
be m ai n ta i ne d . Its bus i nes s in t e ll i g enc e s o l u ti o ns w ork w it h a n org an iz at i o n's m os t
Un

v a lu a bl e bus i n es s d at a, wh ic h n ec es s it at es a h i gh l ev el of s ec u rity a nd pr iv ac y .
W h il e em p l oy in g na t io na l c l ou ds t o m ee t loc a l res tr ic t i ons o n s erv i c e d e l iv ery , da ta
res id e nc y , ac c es s , an d c o ntr o l, us ers m ay be tt er s a fe g ua rd t h e i r d at a s o t ha t i t
me e ts i nd us t r y c o mp l i anc e s t an d ar ds an d c e rti f ic a t io ns .

Si gnif i ca nt BI t oo ls
ity

W it h eas y - t o- us e r e p or ts th a t a p pe ar wh er ev er j u dg m e nts ar e ma d e, M ic r os o ft 's

mos t k no wn b us in es s i nt e l li g enc e pr od uc t , P ow er BI , bri d g es t he g ap b et we e n d a ta
an d d ec is io ns . C us t o me r s c a n us e th e c o mp a ny 's Po w er B I E m be d de d p ro d uc t t o
ge t wor l d - c las s a n a ly tic s w it h ou t hav i n g t o c r ea te i t th e ms e lv es . Fur t her m or e,
m

Az ure Sy na ps e A n a ly t ic s d e l iv er s d at a f or rap i d BI an d m ac h in e le ar n in g n e eds

thr o ug h a s i n gl e in t er f ac e , a n d A z ur e An a ly s is Serv ic es h e l ps br ow s e v as t a m ou n ts
of d at a us i n g a f ul ly ma n ag e d pl a tf or m t ha t prov i d es e n ter pr is e - g rad e d at a m o d els
i n th e c l o ud .
)A

Us e r Be nef it s of Mi c r osof t ’ s BI Too ls and Comp et ito r An al y si s

(c

Th e IT gi a nt's B I t oo ls a n d s er v ic es ar e t h e bes t i n t h e b us in es s , wi t h fe a tur es l ik e

v is ua l an d mo b i le ex p lor at i o n a n d a ut h or i ng . I n c om p ar is o n t o ot he r p o pu l ar BI
s y s te ms l ik e Q l ik v i e w, t hey c a n pr ov id e a dv a nc e d em b ed d e d an a ly t ic s a n d
de m ons tr at e pr ov en r es u l ts . F urt h er mor e , M ic r os of t's s o l ut i on s i m pr ov e da ta
 s ourc e c o n nec t iv i ty a nd s u p po r t by i nt e gr a ti n g wi t h pl a tf or ms s uc h as M ic r os of t
Dy n a mi c s , S a l es f or c e , G oo g l e A na ly t ic s , G it H ub , c o m Sc or e , A do b e A na ly t ic s ,

e
Circ u it I D, Az ur e Mo b i l e M an a ge m en t, Ma i lc h i mp , M S Ex c e l, an d o t hers .

Fur th er mor e , t he P ow er BI ap p l ic a t io n has a m or e us er - fr ie n d ly d es ig n a n d c a n be

lin
us e d by a ny on e , i nc l ud i ng Mar k e ti n g, Sa l es , a n d ot h er r e la t ed de p art m en ts .
A dd i ti o n al ly , M ic r os o ft 's t o ols ar e qu i te c os t - ef fec t iv e .

On
P EO PL E SO F T

Ma ny p e op l e r e fer t o P eo p l eS o ft E R P as e n ab l i ng " t h e Re a l - T i me" b us in es s m o de l .

P eo p l eS o ft is a n i nt egr a te d s ui t e o f b us i nes s a pp l ic at i ons — C RM , H R, Pr oj ec t
A dm i n is tr at i o n, a n d s o on —t h at a i ds y ou i n t h e da i ly ex ec u t i on an d o per a ti o ns of
c om p any p r oc es s es . I t is an o n - pre m is e s ol ut i on t ha t y o u may h o s t o n a ny Cl o ud .
Th is s o l ut i o n, w h ic h is bas e d o n a c l i en t/s er v er arc h it ec tur e , a l l ow s y ou to c o nn ec t

ty
d irec t ly t o b us in es s pr oc es s es , re m ov in g i nt er na l a n d ex t er n a l in t erm e d iar i es ,
i nc re as i ng pr o d uc t iv ity , an d l o wer i n g ex p e ns es .

Th is u p da t ed v er s i on i nc lu d es ev ery t h i ng y o u' l l n e ed to i nc orp or at e t h is f unc t io n a l

si
to o lk it i n to y our en t ir e b us in es s . It c a n h e l p y ou ma n ag e h u ma n re s ourc e ac t iv it i es ,
s tre n gt he n c us t o mer r e la t io ns hi ps , a n d s i m p li fy n arr at iv e r ep or ti n g. Y ou c a n ev e n
pro gr a mm e i t t o up d at e i ts e l f ac c or d i ng t o y our s c he d u le .
er
W ha t is P e o pl e S of t E RP , ex ac t ly ? It's a s et o f ap p l ic a t io ns c re a te d s pec i f ic a l ly f or
to d ay 's e nt er pr is es . P eo p l e So ft is a c o mp l e te s o ft w are pac k a ge f ro m O r ac l e th at
i nc l u des u n iq u e t oo ls an d ap p l ic a t io ns f or g en er a l c o m pa ny us e , s uc h as ma te ri a ls ,
pay r o l l, an d c o m mu n i c at i on ma n ag e m en t. Th is wo rk f orc e ma n a ge m en t s o l ut i on ,
iv

wh ic h is i d ea l f or m i d - s iz e t o b ig bus i nes s es , i nc l ud es a f u ll s u it e of t o ols f or

ma n ag i n g, p l a nn i ng , a nd tr ac k i ng op er at i ons .

Wh at Do e s P eop le S of t D o ?
Un

P eo p l eS o ft pr ov i d es y ou wi t h a l l o f t he t o ols y o u' l l n ee d t o e ff ic ie n tl y a nd
ef fec t iv e ly m a na g e y o ur mos t i mp or ta n t b us i nes s t as k s . Th e P eo p l eS o ft s y s t em is
us er - fr i en d ly , a l lo w in g y ou to s e lec t t h e t oo l s y ou th i nk y o u' l l ne e d a n d o pt o ut of
th e res t. O n a dd i t io n, P eo p l eS o ft s t or es d at a i n t he c l ou d. As a r e s u lt , y o u' ll nev er
l os e s i g ht o f i m por ta n t ac t iv it i es or s e ns i t iv e i nf or ma t io n a ga i n. Y ou c a n a ls o us e
th is s erv ic e t o tr a ns fer d a ta t hr ou g h ou t y our c om p any , m a na ge r ep or ts , a n d
ity

dev e l op c us t om er r e l a t i o ns h i ps .

P eo p l eS o ft H u m an Ca p it a l M a na g em e nt ( HC M), for ex am p l e, al l o w s y ou to ma n a ge
te a m m em b er s , ap pr o v e pr o mo t io ns , c h an g e e mp l oy ee pe rs o n al i nf or ma t io n, an d
ex a m i ne p ay s t ubs , a mo n g o th er HR du t ies . Its an a ly tic s s of tw ar e a ls o a l l ows y ou
m

to ev a l ua te per s o nn e l an d or g an is at i o na l d at a.
)A
(c
 P eo p l eS o ft HC M is e x tr e m e ly ad a pt ab l e. I t c a n be us e d to a l mo s t a ny s ec tor o r
s it u at i on . M or e im p or ta nt ly , its d iv ers e s u i te o f ap ps i nc l ud es i nd us try - s p ec if ic

e
c ap a b il i t ies an d o ff er s u nr iv a ll e d f l ex i b i l ity f or i m pr ov i n g c or p ora t e o pe ra t io ns a n d
c om p et i tiv e n es s .

lin
Y ou c a n tr ac k , ma n a ge , a nd a d m in is tr at e t as k s for y o ur w h ol e work f orc e w i th
P eo p l eS o ft , i nc l ud i ng em p l oy e es , m a na g ers , c on t in g en t w ork ers , s tu d en t w ork ers ,
c on tr ac t ors , a nd fac u lt y . Y o u m ay als o us e P eo p l eS o ft t o c ons tr u c t C lo u d c lus ters ,
l ev er a ge y o ur d at a i n ap p l ic a t io ns , a nd m i gra t e a n d t es t y ou r i nn ov at i ons t o t he
Cl o ud .

On
Wh at do es Pe opl e Sof t E R P O f f e r You?

P eo p l eS o ft is us e d by te ns o f t ho us an ds of c om p an i es a ro u nd th e wor l d. Ac c ord i n g
to O r ac l e's w e bs i t e, ar o u nd 3 0, 00 0 pe op l e u t i li s e it . Pe o p le S of t n o t o n ly
au t om at es , m o n it or s , a n d tr a c k s b us i nes s pr oc es s es , b ut i t a ls o s tr ea m l in es ,

ty
mo n it ors , a n d tr ac k s th e m. I t a ls o k e e ps t rac k o f p ers on n e l d at a, de p art m en ts ,
tas k s , a nd p er k s . Pe op l e S oft h as a s u bs t an t ia l pres e nc e i n n um er o us ar eas ,
i nc l u d in g h ea l thc ar e, pu b l ic s ec t ors , ed uc a ti o n , res e arc h , a nd p rof es s io n a l an d
fi n anc i a l s er v ic es , a n d is w e l l - s ui t ed f or s o lv i ng H u m an C a p it a l M an ag e me n t ( HC M)

si
an d E n ter pr is e Res o ur c e M an a ge m en t (E R P) d e ma n ds .

P eo p l eS o ft i nc l u d es a nu m be r o f im p ort a nt bus i n es s a p pl ic at i o ns , w h ic h ar e l is t e d
be l ow . T h es e pr o gr a m mes c a n as s is t y o u in g a in i n g a d is ti nc t c o mp e ti t iv e
er
adv a nt a ge .

• Co nc ern e d ab o ut Pe o p le S of t S e lec t io n A d o pt i on 9 . 2 up d at es ? T h is pr ogr a m me

a ll o ws y o u t o c h oo s e no t o n ly w h ic h up d at e s y o u w a nt , b ut als o wh e n y o u w an t
iv

th e m t o b e a p p li e d. E v er y t en we ek s or s o , t h ere w il l b e a ne w u pd a te . Wi t hi n
y our par a m et er s , t h e a p pl ic at i o n a ls o a l l o ws y ou t o k e e p pr im ary s tr at eg ic
adj us t m e nts .
• P eo p l eS o ft A pp l ic at i o n En g i ne – Cr ea te , tes t, a nd d e pl oy on l i ne b atc h
Un

pro gr a mm es t h at r eq u i r e h i gh - v o l um e b ac k gr ou n d pr oc es s i n g w it h t h is s of tw ar e.
Th e e n gi n e, l ik e CO BO L a p p lic a ti o ns , d e l iv ers m or e e ff ic i en t up d at es t h an
CO BO L , t h ank s t o a da t ab as e t ha t c o nt a i n s a l l of t h e i nf or m at i o n n ee d e d fo r
up d at i ng .
• P eo p l eS o ft D ep l oy me nt Fr am e work —T h is t oo l a l l ows y o u t o m o v e d at a fro m
P eo p l eS o ft D ev e l op m en t an d Tes t in g to t h e O r ac le C l ou d a nd tr ans f er da ta t o
v irt u a l s y s te ms o n t he O r ac le C l o ud .
ity

• P eo p l eTo o ls – T h is s of tw ar e is w h at m a k es Pe o p le S of t w h at it is . I t is a
po w erf u l ap p l ic at i on dev e l op m en t to o l t ha t al l o ws y ou t o a da pt Pe o pl e S of t
obj ec ts t o ma tc h y ou r s p ec if ic b us i n es s r eq u ir em e nts . P eo p l e To ols is a ls o
c ap a b le of i nt eg r a t i ng w it h P e op l e S of t Bus i n es s O bj ec ts as a " bo l t- o n"
ap p l ic a t io n .
• O rac le C l ou d P eo p l e S of t – Th is pr og ra m m e a l l ows y o u t o ac c e s s P eo p l e So ft
m

pro d uc ts ov er t h e c l o ud . Yo u c an a ls o us e th is ap p t o l au nc h o th er Pe o p le S of t
ap p l ic a t io ns , s uc h as P e op l e S of t HC M a nd o th er t oo ls y o u us e on a r eg u l ar
bas is , fr o m a s in g l e l o c at i on .
)A

Th es e ar e o nly a f ew o f t h e p ow erf u l c a p a b il i t ies av a i l ab l e w i th P eo p l eS o ft . Th e

s y s te m a ls o a l l ows y o u t o c h oos e w h ic h tec hn o l ogy s ol u t io ns t o u s e b as e d o n y our
tec h no l ogy r e qu ir e m e nts an d y our d es ire t o t rac k , p l an , an d m a na g e y o ur
tec h no l og ic a l fo o tpr i nt fr o m a s i ng l e l oc at i on .
(c
 Che c k Yo ur U nd er st a nding

e
Fil l Up s :

1) …… … …… … . m e ans a s tr uc tu re d l i nk b et we e n gr ou ps o f c o mp o ne n ts

lin
2) A s y s t em c on ta i ns a _ __ w h ic h is p l an n ed t o re ac h a s p ec if ic g oa l .
3) …… … …… … is t he m aj or g oa l o f a Sy s t em A na ly s is a n d Des i g n
4) Th er e ar e … … …. p has es in S AD
5) A n __ _ is a d et a il e d s t udy ab o ut a p ar t ic u l ar pro b l em .

On
Tru e/ Fa l se :

1) In ter pr et i n g fac ts is a par t o f Sy s te m A n a ly s i s .

2) In p ut d ev ic e is a n op e r at i on a l c o m po n en t o f th e s y s t em
3) Sy s t e ms A n aly s is an d Des i gn is th e pr oc es s of c re a ti n g a nd ma i nt a i ni n g
i nf or ma t io n s y s t ems

ty
4) Sy s t e m a na ly s is is a p r oc es s w h ic h is d o ne on t h e ex is t i ng mo d e l or th e n ew ly
c rea t ed mo d el
5) Str a te g ic I nf or ma t io n i s a c a t eg ory o f i nf or m at i on s y s t e m

Su mm ar y
si
er
• Sy s t e m a n aly s is is a me t ho d o f o bs e r v i n g a s y s te m in ord er t o i nv es t ig a te or
en h anc e i t. I t is us e d i n t he f i e ld o f i nf or m at i on t ec hn o l ogy , wh e re c o mp u ter -
bas e d s y s t e ms m us t be d es c r ib e d in or de r to b e ex a mi n e d b a s ed o n t h eir
s truc tu r e a n d d es i g n.
iv

• Sy s t e ms an a ly s is in th e I nf or m at i on Tec h no l o gy d o ma i n mi g ht i nc l ud e l ook i n g a t
en d- us er us a ge o f a p r od uc t b u nd l e or it e m, as w e l l as l o ok in g at s ou rc e c o de
fro m t op t o b ot t om t o c har ac ter is e t he s y s t e ms us ed in p ro gr am m i ng .
• Ex per ts i n s y s t e m a na ly s is ar e f re q ue nt l y c a l le d u po n to ex a m in e s y s te ms
Un

c r it ic a l ly a nd r ec o m me nd nec es s ary a dj us tm en ts . Sy s t e ms a na ly s i s is us e d b ot h
i ns i d e a nd ou ts id e t he bus i nes s wor l d t o d et er mi n e w he th er a s y s t e m is
pos s i b le or e ff ec t iv e wi t hi n t h e c on t ex t o f its ov er a l l d es ig n a n d t o s h ow t h e
op t io ns av a i la b l e to t h e e mp l o y in g i n dus try o r a n ot he r pa rty .
• As a res u lt , s y s t em an a ly s is is u n iq u e to s y s te m o ff ic i als , w ho ma i nt a in s y s t e ms
on a d a i ly b as is , an d t he ir j obs ty p ic a l ly e nt a il a h i g h - lev e l v i e w o n a s y s t e m in
ord er t o d et er m in e i ts ge n er al v ia b i l ity i n ac c ord a nc e wi t h its pl a n.
ity

• Th e S of tw ar e D ev e l o p me n t L if e Cy c l e ( S DL C) is a fra m ew ork t ha t l ay s o ut t h e
s te ps i nv olv e d i n s o ft war e d ev el o p me nt at e ac h s ta g e. I t c o nt a i ns a pr ec is e
b lu e pr in t for dev e l op i n g, d e p loy i ng , a nd s us t a in i ng s of tw ar e.
• Th e S of tw ar e Dev e lo p me n t L if e Cy c le ( SD L C) des c r i b es th e e nt ir e dev e l op m en t
proc es s , i nc l u d in g a l l pr oc es s es i nv o lv e d i n des i g ni n g, d ev e lo p in g , t es t i ng , a nd
m

de p l oy i n g a s o ft war e p r od uc t.
• Th e S of tw ar e D ev e l o pm e nt L if e Cy c le ( S D LC) is a me t ho d t ha t s p ec if i es t h e
ma ny s te ps r eq u ir ed i n s o ft w are d ev e l o pm e nt i n o rd er t o c r e at e a h i g h - q u a li ty
res u l t. SD LC s t a ges e nc o m pas s t h e en t ir e l i fe c y c l e o f a s of tw ar e pro d uc t , fro m
)A

c onc e pt i on t hr o ug h r e t ir em e nt .
• Th e r eq u ir em e nts ac qu ir e d in t h e SR S d oc u m en t ar e us e d as i np u t in t h is
ph as e, a nd th e s of tw a r e a r c h i tec tu re r e qu ir e d t o im p l em e nt s y s te m dev e l op m en t
is d er iv e d .
• W he n th e d ev e l op er r ec e iv es th e Des i gn d oc u m en t, t he i m p le m e nt at i o n/c od i n g
proc es s b eg i ns . S o ur c e c o d e is c r ea te d fr om t he s o ft war e des i gn . D ur i ng t his
(c

ph as e, a l l o f th e s o ft w ar e 's c o mp o ne n ts are i mp l e me nt e d.
• W he n th e c od i ng is f i n is h e d a n d t he m o du l es ar e av a i l a bl e for t es t i ng , t es ti n g
be g i ns . T he g e ne r a te d s of tw ar e is t h oro u g h ly tes te d i n t h is p h as e , a nd any
fl a ws d is c ov er ed ar e a s s i gn e d to d ev e lo p ers to b e c orr ec te d.
 • Re tes t in g , a ls o k n ow n as r e gr es s i o n tes t in g , is c arr i ed ou t u n ti l t h e pr o gra m m e
me e ts t h e c us t o mer 's ex pec ta t io ns . T es t er s us e t h e SR S d oc um en t to e ns ure

e
th at t h e pr ogr a m me m ee ts t he c us t om er's r e qu ir e me n ts
• De p en d in g on t h e c u s to m er 's ex p ec t at i o ns , th e p ro d uc t is e it h er p ut i n th e
pro d uc t i o n env ir o nm e n t or i n it i al ly s ubj ec t e d to U AT (Us er Ac c e pt a nc e T es t i ng ).

lin
• In UA T, a r e p l ic a o f t he pr od uc t i o n e nv ir on m en t is c o ns tr uc t ed , a n d t h e
c us t o mer , i n c ol l a bor at i on wi t h t he dev e l o pers , p er for ms t h e t es t i ng . I f th e
c us t o mer is s a ti s f ie d wi t h th e a p pl ic at i o n, t he c us t o mer mus t s i g n o ff f or i t t o g o
l iv e .
• Af t er a pr o d uc t is d e p loy e d in a pr o duc t io n env ir o nm e nt , t h e d ev e l o pers ar e

On
res p o ns ib l e for pr o duc t m a i nt e na nc e, w hic h i nc lu d es f ix i ng a ny is s ues t ha t ar is e
an d a ny e nh a nc em e nt s t ha t n ee d t o b e m ad e.

Act iv it y
• Pr ep ar e a S u m mar y C har t o f d if fer e nt p h as e s o f S DL C

ty
Q ue sti on s & E xe r ci s e
1) De f in e t he Sy s t e m A n a ly s is an d D es i g n C on c ep ts .
2) Dis c us s t he P has es o f S D LC .
3) Ex pl a i n th e v ar i ou s r e as o ns f or c o nd uc ti n g s y s te m a na ly s is .

i nc or p or a t in g l a tes t te c hn o l ogy .
5) Dis c us s R o le o f Sy s t e m A n aly s t . si
4) Dis c us s M a na g e me nt r o l e i n s y s t em an a ly s is t o c a te r c o m pe t it i on an d
er
6) Ex pl a i n th e S o ft war e d ev e l o pm e nt f ir ms r o l e i n ER P / Bus i n es s In t el l i ge nt Sy s t e m
7) Des c r i b e t h e S A P, O R AC L E , B A AN , P EO P L E SO FT , M IC RO SO FT an d G O O G L E
ro le in ER P / Bus i nes s I nt e l li g en t Sy s t em
iv

G lo ss a ry

• De si gn: In t h is p h as e , t h e r eq u ir em e nt g at her e d i n t h e SR S d oc um e nt is us e d
as an in p ut a n d s of t war e ar c h it ec t ur e th a t is us ed f or i m pl e m en t in g s y s t em
Un

dev e l op m en t is d er iv e d.
• Imp le me nt a t io n o r C oding : I m p le m en t at i o n/ Co d i ng s t arts o nc e th e dev e l op er
ge ts t h e D es ig n doc u me n t. T h e So ft war e d es ig n is tr a ns l a te d in t o s o urc e c o d e.
A l l th e c o m po n en ts of th e s o ft war e ar e i m p le me n te d i n t h is ph as e.
• Te stin g: Tes t in g s t ar ts o nc e th e c o d i ng i s c o m p le t e a nd th e mo d u les ar e
re le as ed f or tes t in g. I n t h is ph as e, t he d ev e l op e d s o ft w are is t es t ed t ho ro u gh ly
an d a ny d ef ec ts f o un d ar e as s i gn e d to dev e l op ers t o g et t he m f ix e d.
ity

• Re tes t in g , r e gr es s i o n tes t in g is d on e u n ti l t he p o i n t at wh ic h t h e s of tw ar e is as
per t he c us to m er ’s ex pec t at i on . T es t ers r e f er SR S d oc um e nt to mak e s ur e t h at
th e s o ft war e is as per th e c us to m er ’s s ta n da rd.
• Dep lo ym ent : O nc e t he pr o duc t is tes t ed , i t is de p loy e d i n t h e pro d uc t i on
env ir o nm e nt or f ir s t U AT ( Us er Ac c ep ta nc e tes t in g) is d o n e d e p en d i ng o n th e
m

c us t o mer ex p ec t a ti o n.
• Ma int en an ce : Af t er th e de p l oy m e nt o f a pr o duc t o n th e pr od uc ti o n e nv iro n m en t,
ma i nt e n anc e o f t h e pr od uc t i. e . if any is s u e c o m es up an d n e eds to b e f ix ed or
any en h anc e me n t is t o b e d on e is t ak en c are by t h e dev e l op ers .
)A

Furt he r R ea din g

• Sy s t e ms A n aly s is an d Des i gn , J IJ U J O HN
• Sy s t e ms A n aly s is An d Des i gn A C om p le t e G u i de 2 0 20 E di t io n , G er a rdus
(c

B lok dy k
 Ans w e r s t o ch ec k yo ur Und e r st a ndi ng

Fil l Up s

e
1) Sy s t e m

lin
2) Str uc tur e a n d b eh av io ur
3) Im pr ov e or g a n iz a t io n a l s y s t ems
4) 5
5) an a ly s is

Tru e/ Fa l se

On
1) Tru e
2) Fa ls e
3) Tru e
4) Tru e
5) Tru e

ty
Module II: Requirement Determination and
Development Cycle
si
Unit - 1: Und e rst an din g t h e n e ed s f or d ev e l oping /up gr ad ing sy st em
er
Le ar nin g O b j ect i ve s:

Afte r st ud yin g t h i s c hapt e r, y ou w il l be a ble to :

• Id e nt ify t h e n ee d f or s y s te m u pg ra d es .
iv

• Dis c us s t he ap pr oac h e s t o s y s te m i n te gr at i o n.
• Des c r i b e t h e v ar i ous d ep l oy me n t op t io ns f or i nt egr a te d s y s t ems .
• G o ov er th e m a i n s te p s o f s y s te m i n te gr at i o n.
•
Un

G o ov er s y s te m in te gr at i on me th o ds .
• Des c r i b e t h e a dv a n ta g es a nd d is a dv a nt a g es of s y s t e m i nt eg ra t io n.

Int rodu ct ion

Y ou s ho u ld c r ea t e an up gr ad e p l a n be for e y o u b eg i n a n up gr a de . T a b le - 1
des c r i b es s om e fu n d a me n ta l Fus i o n Mi d d le war e u pgr a de p l a nn i n g proc e du res a n d
ity

up gr a de r e q uir e m en ts to b e c ar e f ul ly c o ns id ere d b ef or e be g in n i ng a n u p gr ad e. T he
ta b le als o i n d ic a t es w her e t o g o for mor e i n f or ma t io n o n e ac h s t e p o f th e pr oc es s .

No te : P le as e k ee p i n m in d th at t h e or d er i n wh ic h y ou p er for m y our pr e - u pgr a de

tas k s m ay d i ff er de p en d in g on y o ur c urre n t e nv iro n me n t. Us e t he c hec k l is t b e lo w to
m

rev ie w th e m os t i mp or t an t pr e - up gr ad e c o ns i der a ti o ns .

Tab le - 1 Upg r ade Pl a nning R oa dm ap

)A

Ta sk De s cr ipt ion Doc um en ati on

Un d ers t a nd t he O r ac le Fus i o n M id d l ew are In tro d uc t i o n to O r ac l e

d if fer e nc es b et we en 11 g us ers s h o ul d u n d ers t a nd t h e Fus io n Mi d d le wa re 12 c
(c

O rac le F us i on c onc e pt u al d i ff ere nc e s be tw e en for 1 1 g Us e rs

M id d l ew ar e 1 1 g a nd 11 g a n d Re l eas e 12 c ( 12 .1 . 3)
Re l eas e 1 2c ( 1 2. 1 .3) be f or e s t ar t in g the u pgr a d e
 Ta sk De s cr ipt ion Doc um en ati on

e
pr oc es s .

lin
Un d ers t a nd wh ic h of Y ou s ho u l d u nd ers ta nd wh ic h o f " Pr od uc ts and
y our 1 1g pr o duc ts a nd y our 1 1 g c o m p on e nt s c a n be Fe at ur es Av a i l ab l e i n
fe at ur es c an be up gr a de d t o 12 . 1. 3. O rac le F us i o n

On
up gr a de d t o 12 . 1. 3 M id d l ew are 12c "
NO T E: If y ou p la n t o us e
11 g c o m po n en ts w i th up gr ad e d " Pr od uc ts and
12 . 1. 3 c o mp o ne n ts , y ou s ho u l d Fe at ur es N o t Av ai l a b l e
un d er s t a nd h o w t h e up gr a de in O r ac l e F us i o n
c ou l d i m pac t i n ter o p era b i l ity o r M id d l ew are 12"
c om p at i b i li ty .

ty
in t he U n ders t an d i n g
In ter o pe ra b i li ty and
Co m pa t ib i l ity gu i de .

V er ify t h at y our
da t ab as e is s u pp or te d . da t ab as e
s c he m as .
to
T he
si
Th e 1 2c d o m ai n req u ir es a
s t or e the
da t ab as e
new
th a t
hos ts t h e s c h e m as us ed i n F us io n
Up gr ad i n g and
Pr ep ar i ng Yo ur O r ac l e
Da ta b as es
(12 . 1. 3)
for 12 c
er
M id d l ew are mus t b e s up p ort e d.

Up d at e o r r e p l ac e y our If i t is d e ter m i ne d t h at y o ur n e w Up gr ad i n g fro m a 3 2 -

32- B i t o per a ti ng Re l eas e 1 2 c (1 2. 1 .3) c om p on e nts B it to a 64-Bit
iv

s y s te ms t o 6 4 - Bi t, if r eq u ir e a 6 4 - B it o p era t in g O p era t in g Sy s t em
nec es s ary . s y s te m, y o u s ho u l d mi gra t e t o th e
ne w mac h i nes b ef or e t he
up gr a de .
Un

V er ify t ha t you ar e Y our ex is t i n g O r ac l e Fus i o n Un d ers t a nd i ng the

run n i ng a s up p or t ed M id d l ew are d ep l oy me n t m us t S up p ort e d Up gr a d e
v ers io n of O r ac l e F us i on me e t c e rt a in re q ui re m en ts be f ore St ar t in g P o i nts
M id d l ew ar e 11 g . up gr a di n g to O r ac l e Fus i o n
M id d l ew are 12c ( 12 .1 . 3).
ity

V er ify t h at y our Th e system har d war e a nd V er ify i ng C er t if ic at i o n

op er at i n g s y s t e m, s of tw ar e t h at w i l l b e us e d t o an d Sy s te m
ex is t i ng h ar d w ar e , a nd s up p or t y our F us io n M id d l ew are Re q ui re m en ts
a ll s u p por t in g s of tw ar e 12c ( 1 2. 1. 3) d ep l oy me n t m us t
has b e en c er t if i ed to me e t the F us i o n M id d l ew are
m

work w i th t he c er t i fic a ti o n r e qu ir e m e nts .

c om p on e nts you ar e
up gr a di n g.
)A

Dev e lo p a b ac k u p a nd B ef or e y o u b e g in an up gr a de , b e Dev e lo p i ng a B ac k u p
rec ov ery s tr at e gy . s ur e y o u h av e c om p l e te c op i es o f Str a te gy f or Up gr a de
y our s y s te m - c r i t ic a l f i les ;
i nc l u d in g t he d at a ba s e th at w i l l
hos t y o ur s c h em as .
(c

Un d ers t a nd t h e b a s ic To pr ev en t a ny p ot e nt i a l Un d ers t a nd i ng the

ru les an d a ny pr o b l ems w it h y our u pgr a d e, y ou B as ic R u les and
res tr ic t io ns f or y our s ho u l d u nd ers ta n d s om e b as ic Res tr ic t i ons of
 Ta sk De s cr ipt ion Doc um en ati on

e
up gr a de . r u les a n d r es tr ic t i ons . Up gr ad e

lin
Co ns id er th e i mp ac t on If y o u w i ll be us i ng F us io n Un d ers t a nd i ng
de p l oy e d M id d l ew are 1 1 g c o m po n en ts i n In ter o pe ra b i li ty and
11 g a p pl ic at i o ns a nd y our u p gra d ed 12 c ( 12 .1 . 3) Co m pa t ib i l ity with
c om p on e nts . env ir o nm e nt , y ou s h ou l d r ev ie w Pr ev io us V ers i ons

On
an d u nd ers t a n d a n y p ot en t ia l
i nt er o p er ab i l ity an d c om p at i b i li ty
is s ues .

P la n f or s y s t em Th e up gr ad e pr oc es s i nv o lv es an P la n n in g f or Sy s te m
do w nt i me d ur i ng t he ” i n p lac e” u p gr ad e f or m os t Do wn t i me Du ri n g a n
up gr a de pr oc es s . Fus io n M i d dl e war e c om p on e nts . Up gr ad e

ty
Y ou w il l ne e d t o p re p are f or t he
s y s te m t o be do w n dur i n g th is
ti m e. To t es t ba c k up an d
r ec ov ery in c as e of a f a i lur e a n d

si
to p la n th e do wn t i me f or t h e
up gr a de , tes t t he u p gra d e
pr oc es s a nd t es t t he res t ore
fu nc t i o na l ity . T h is a l s o h e lp to
er
p la n for t he s c e n ari o i f s o m et h in g
go es wr on g dur i n g u pgr a d e a n d
th e 11 g s y s t em n e eds t o be
r es t or ed .
iv

G et t he pr o d uc t Y ou m us t ac q u ir e a nd ins t al l th e O bt a i ni n g Pro d uc t
d is tr i bu t io ns for y our Re l eas e 1 2c (1 2 .1 .3 ) s of tw ar e Dis tr ib u t io ns
up gr a de . be f or e y ou c an b eg i n t he up gr a de
Un

pr oc es s . Yo u wi l l ne e d to
do w nl o ad t h e a ppr o pr i at e pr od uc t
d is tr i bu t io ns f or y o ur u pgr a d e.

Un d ers t a nd ho w t o u s e O r ac le pr ov i des a s t a nd ar d s u it e Us i n g t he S ta n da r d
th e s t a nd ar d of t o o ls th a t c a n b e us ed to Ins ta l l at i on and
i ns t a ll a ti o n, au t om at e m any of th e Up gr ad e To o ls
c on f ig ur at i o n a nd i ns t a ll a ti o n, u pgr a de a nd
ity

up gr a de t o ols . c on f ig ur at i o n proc es s e s .

Nex t St e ps : Af ter E ac h c o mp o ne n t y o u up gr a de has Loc a ti n g Yo u r

ge n er al p la n n in g , y ou a s et o f s p ec if ic u p gra d e tas k s Co m po n en t - S pec i fic
wi l l n ee d to o bt a i n t he th at m us t b e p er for m e d. S o me of Up gr ad e
m

c om p on e nt - s p ec if ic th es e tas k s ar e p erf or me d a ft er Doc u me n ta t io n

up gr a de d oc u me nt a ti on th e up gr ad e . R ev ie w t he u p gra d e
for t he c o m p on e nts y ou doc u me n ta t io n fo r y o ur
are up gr ad i n g. c om p on e nt(s ) t o e ns u re y o u h av e
)A

a s uc c es s f u l up gr a de .

2 Upg r adi ng a C lon e d En vi ron me nt b ef or e Upg r adi ng a P ro du cti on

En vi ro nm ent ( R ec om men de d)
(c

O rac le s t r o n gly adv is es m ak in g a c o py o f y o ur ac tu a l pr o duc t i on env ir o nm e nt ,

up gr a di n g t he c l on e d env ir o nm e nt , v er i fy in g t h at th e u p gr ad e d c o mp o ne n ts w ork as
ex p ec te d, an d t he n ( a nd on ly t he n) u p gr ad i n g y o ur pr od uc t i o n e nv i ron m e nt .
 S ee " M ov i ng fr o m a T es t t o a Pr o du c ti o n E nv iro n me n t" i n O r ac l e F us io n
M id d l ew are A d m in is te r i ng O r ac l e Fus i o n M id d l ew are fo r m or e in f orm a ti o n o n

e
c rea t in g a t es t env ir o n me n t to us e w h en ro l l i ng ou t a n up gr a de .

Pr e- u p gr ad e t es t i ng o n a c lo n ed env ir o nm e nt y ie l ds v a l ua b l e i nf o rm at i on t h at c an

lin
be a p pl i e d t o y our o v er a l l pr od uc ti o n up g rad e s tr at egy . A mo n g t h e a d d it i on a l
adv a nt a ges a r e :

• Id e nt ify an d r es o lv e a ny u pgr a de is s u es .
• Ex per i m en t w it h c o mp l et i ng an e n d - t o- en d u p gra d e.

On
• Rec o gn iz e u pgr a de pe r for m anc e a n d h ow p u rge s c r i pts c a n as s is t .
• Us i n g t he U p gr ad e As s is t a nt , d et er mi n e t he ti m e re q u ire d t o u pgr a d e
Me t ad at a a n d O p en I n s ta nc es .
• B e fa m i l iar w i th th e d at a bas e's r es o urc e us ag e (s uc h as t em p or ary
ta b les p ac e ; P G A , e tc ) .

Cre at i n g a Bac k u p S tr a t e gy d es c r ib es a c o mpr e he ns iv e l is t o f bac k u p

ty
c ons i d era t io ns a nd pr oc e d ur es . B ef or e be g i nn i ng t h e u p gr ad e, ens ur e th at y o u
hav e rev i ew e d th is in f or ma t io n a nd per f orm e d a c o mp l et e b ac k up .

3 De v elo pin g a B ac k up St ra t eg y fo r Upg r ad e

si
B ef or e i ns t a l l in g any ne w R e le as e 1 2c ( 1 2. 1. 3) d is tr i bu t io ns a nd b eg i n ni n g t he
up gr a de o f y our O r ac le Fus i o n Mi d d le w are 1 1 g de p l oy m e nt to R e le as e 12c
er
(12 . 1. 3), ens ur e th at a ll s y s t e m - c r it ic a l fi l e s h av e be e n b ac k e d u p. O r ac l e s tr o ng ly
adv is es y o u t o p er for m a c om p l et e b ac k up o f y o ur ex is t in g de p l oy m e nt , i nc l ud i n g
th e d a ta b as e th a t h o us es y o ur O r ac l e F us i on M id d l ew ar e s c h e mas . f or s pec i f ic
i nf or ma t io n o n e ns ur i ng t h at al l of y our e nv ir on m en t's c om p on e nts c ou l d b e
ren e we d i n t he oc c as i on of a t hw ar te d u p gra de
iv

4 Und e rst an din g In - P la c e ve r su s O ut - of - P l ac e Up gr ad e s

Un

W he n u p gr a d i ng y o ur 11 g e nv ir on m en t to 12 c (1 2. 1 .3) , y o u s h ou l d u n ders ta n d h ow
th e up gr ad e wi l l af f ec t y o ur pr e - u p gra d e e n v ir on m en t. U pgr a des to s c h em as an d
do m a in d ir ec t or i es , f or ex am p l e, ar e d on e " i n p l ac e ," wh ic h m ea ns t ha t th e ex is t i n g
11 g fi l es ar e u pd a te d dur i n g t h e u p gra d e. As t h e bi n ar ies ar e in s ta l l ed i n a n ew
d irec to ry , t h e 12c ( 1 2. 1. 3) O r ac l e H o me bi n ar ies are up gr ad e d " o ut o f p l ac e ." Th e
m id t ier a n d s c he m as ar e inc l ud e d i n t h e up gra d e to 1 2c ( 1 2. 1. 3) . A m i dt i er - on ly or
s c he m a- on ly u p gr a d e i s n ot pos s i b le .
ity

Th e fo l l ow i ng s ec t i ons d es c r ib e h o w eac h c o mp o ne n t is u p gra d ed :

• O r ac le H o m e B i nar i e s - O ut of P l ac e Up gr a de
m

In a n e w O r ac le h o me , y o u wi l l i ns ta l l t he O r ac le I nfr as truc t ure 12c (1 2 .1 .3)

d is tr i bu t io n b in ar i es ( i nc l u d in g W eb L og ic S erv e r a n d J RF) as w e ll as ot h er 1 2c
(12 . 1. 3) d is tr i b ut i o n b i nar i es . T h e u pg ra d e o f b in ar i es is c o ns i der e d " o ut o f p l ac e"
as th e 1 1 g b in ar i es ar e n ot ov er w ri tt e n.
)A

• Sc he m as - U p gr a d e d I n P l ac e

Th e 1 1g s c he m as ar e u pg ra d ed t o 12c " i n p l ac e" w h ic h m e an s t h at t h e

Up gr ad e As s is t a nt up da t es a n d ov erw ri t es th e s c h e m as d ur i ng th e u p gra d e
proc es s . T h e s er v er s mus t b e d ow n d ur in g t h is proc es s .
(c

• Ins ta nc es - Mi gr at e d d ur in g t he s c he m a up gr ad e (F or SO A U p gra d es O n ly )
 Th e u p gr a d e of ac t i v e a n d c los e d ins t a nc es fr om 1 1 g t o 1 2c h a pp e ns
au t om at ic a l ly as par t of t he s c h e ma u p gra d e. Y o u c an m a na g e t h e up gr ad e

e
us in g a d mi n is tr a ti o n s c r i pts .

• Do m ai n D ir ec t or y R e c on f ig ur at i o n - I n- P lac e Up gr a de

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T h e c ur r en t d o ma i n h as b e en " in p l ac e" u pgr a d ed . Y o u wi l l id e n ti fy t he loc a ti o n
of t h e 1 1 g d o ma i n d ur i ng t h e u p gra d e, an d t he 1 1g do m a in wo u l d be r ec on f ig ur ed
to p o i nt t o th e n ew 12 c ( 1 2. 1 .3) ho m e d irec t ory .

• Do m ai n C o mp o ne n t Co nf i g ur a t io n - In- P l ac e Up gr a de

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1. 1. 1 N ee d f o r Up gr a dat ion of t he Sy st em

15 comp e ll ing r e as on s t o up gr ad e y ou r co mput er sy st em s

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If y o u ow n or m an a ge a s ma l l or m e di u m - s iz ed b us i nes s , y ou ar e we l l aw ar e of t he
adv a nt a ges of t ec h n o l ogy . Tec h no l o gy a l lo w s S M Bs t o c o m pe te wi th lar g er p l ay ers
i n w ay s t ha t w er e u nt h ink a bl e on ly a f ew y ears a go . H ow ev er, t ec h n o lo gy has a
dra w bac k f or m a ny S M B o wn er s : th e n ee d f or c o ns t a nt u p gr ad es .

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" W he n w il l t he c o ns ta nt c h an g es c o me t o a n en d ?" " Wh e n c an I s to p up gr a di n g my
s y s te ms ?" is a fr e q u e nt ly as k e d q u es t i on a t Cor rec t S o l ut i ons . T h e tru t h is t h at
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tec h no l og ic a l adv a nc e me n ts w i l l a lw ay s nec es s it at e up gr a des . C o ns u m er de m a nd
for n ew f e at ur es , c h an ges i n g ov er nm e nt c o mp l i a nc e an d r e por t in g, an d an ur g e f or
th i ngs t o p er for m b et t er ar e j us t t hre e of t he m a ny re as o ns w hy bus i n es s es w i l l
a lw ay s r e qu ir e u p gr a d es .
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G iv en t ha t u p gr a d es a r e h er e t o s t ay , t he k e y is t o r ec o g n is e th a t i nv es t in g i n t he m
wi l l b e ne f it y o ur b us i n es s r at h er t ha n v i e w t he m as a nu is a nc e . W e'v e c o mp i l ed a
l is t o f 1 3 r e as o ns w hy y ou s ho u ld k ee p u p gra d in g!
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1. Enh an c ed P ro du ct i vit y

To day , we h av e fas t er C PUs , fas t er ha rd dr i v es , a n d mo re pr oc es s ors – a nd t h es e

res o urc es m ea n t ha t w or k lo a ds are proc es s e d m or e qu ic k ly . Es s en t ia l ly , ol d er
s y s te ms ar e s l ow er t h an ne we r on es .
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2. Bett e r co mmu ni ca t io n

Ne wer t ec h n o lo gy al l o ws b us in es s es t o c om mu n ic at e w i th c us to m ers a n d p o te nt i a l
c us t o mers i n a v ar ie t y of w ay s . E m ai l , s o c i al m e di a , o r t hr ou g h y o ur w ebs i te .. .
Inc r e as e d b us in es s p o te nt i a l r es u lts fr o m mo re f lex i b le c om m un ic at i on o p ti o ns .
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3. Imp ro v ed ef f ic ie nc y

W e n o w h av e t he tec h no l o gy t o d o t h i ngs th at we c o ul d no t do i n t he p as t . R e mo te
)A

ac c es s v i a m ob i l e d e v ic es , f or ex a mp l e, a l l ows s a l es re ps t o q u ic k ly t ak e ord ers

wh i l e on t h e r o ad , k n o wi n g ex ac t ly w ha t t im e fra m e th ey c a n d e liv er i n .

4. Inc r e as ed s e cu rit y

B us i n es s es us i ng Wi n do ws X P, f or ex a m pl e , ar e v u ln er ab l e to i nf or ma t io n t h ef t or
(c

c om pr o m is e b ec aus e ou t da te d s y s t ems ar e n ot ac tiv e ly s ec ur ity - c hec k e d. Be tt er

s ec ur i ty c h ec k s ar e i n p lac e w it h n ew er t ec h no l o gy .
 5. Enh an c em ent s

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Ne w o per a ti n g s y s t em f ea t ur es c an be us e d to pr ov i de en h an c e me nts t h at w er e n o t
pos s i b le i n o l der s y s t ems . T his m ea ns t h at b us i nes s es us i n g o l d er t ec h n o lo gy w i l l
l ac k fu nc t i o na l ity t h at c ou l d pr ov id e t he m w i t h a c o mp e ti t iv e adv a nt ag e .

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6. V endo r a s si st an ce

S of tw ar e v e nd or s tes t t h e ir a pp l ic at i o ns o n th e m os t rec e nt v ers i ons of a ny g iv en

op er at i n g s y s t e m. Th e y w il l n ot s p e nd t i m e t es t i ng a p p lic a ti o ns on o ld m ac hi n es . Is

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y our v en d or s t il l s u p p or t i ng y our ol d t ec h n o l ogy ?

7. IT a ss is t an c e

Th is is r e l at ed t o th e pr ev i o us po i nt . IT pr of es s io n a ls are u na b l e t o s u pp or t
obs o l et e tec h n ol o gy . Y o u ng IT pro f es s i o na ls may b e u nf a m i l iar wi t h l eg ac y
s y s te ms . It w i l l t ak e t he m l on g er t o f in d an s wers t o y o ur IT qu es t i ons , r ais i n g y o ur

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s up p ort c os ts .

8. Cu rr ent ly av a il abl e w ar r ant ie s

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If y our s y s te m is s t i l l un d er w ar r an ty , it c a n b e r e p a ir ed an d r et urn e d t o s e rv ic e
qu ic k ly , c aus i n g l es s d is r u pt i o n to y our b us i nes s . Ho w ev er , s y s t e ms th a t ar e mo re
th a n f iv e y e ar s o l d an d ar e no l on g er c ov er ed by w arr a nty c an fa i l a n d f orc e t he
er
c om p any i nt o d is as t er r ec ov er y m o d e.

9. Cos t sa v ing s
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Up gr ad i n g m ay a p pe a r t o be c os t ly , h ow ev er t he fac t of t h e m at ter s ee ms to be
th at o ld er mo d e ls h av e f ar m or e is s u es – an d t h us m or e c os ts . T he ex pe ns e of
pro b l ems c aus e d by u ns t e ady h ar dw ar e a nd t ec h n o lo g ies c an qu i c k ly ex c ee d t he
c os t o f i nv es t i ng in a n u p gr a d ed s y s t e m.
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10 . Co mp at ib il it y

W he n s o m et h in g n ew e nt er s t he mark e t, it may b e i nc o mp at i b l e wi t h ex is t i ng
s y s te ms a n d s of tw ar e . F or ex a m pl e , th e n e x t up d at e t o W i n do ws 1 0 w i l l r e m ov e
s om e fe a tur es , m ak i n g it i nc o m p at i bl e w it h th e W i nd ows 2 0 03 s erv e r t h at s o me
S M Bs s ti l l us e.
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11 . R ed uc ed pow e r co n sum ptio n

E lec tr ic ity is b ec o m i ng pr o h i bi t iv ely ex p e ns iv e f or Aus tr al i a n bus i n es s es . Th e

ex c e l l en t th i n g wo u ld be t h at n ew ly d ev el o p ed c o m p ut er s y s te ms t y p ic a l ly c o ns u m e
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l es s po w er , r es u lt i n g i n s i gn i f ic a nt s av i n gs f o r y o ur c o mp a ny .

12 . St af f Sa t i sf a ct ion
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St a ff m em b er s bec o m e inc r e d ib ly a nn oy ed wi t h o ut - o f- d a te s y s t e ms an d s of tw ar e
bec a us e t h ey s i mp ly c an n ot d o t he ir j o bs as w el l or pro f ic ie nt ly as t hey w o ul d l ik e.
If t hey b ec om e s o d is s at is fi e d th a t t h ey l ea v e, y o u r is k los i n g bu s i nes s k n o wl e dg e
– a nd it's n o t go o d P R f or y o ur c o mp a ny i f i n d iv i d ua ls t e l l e ac h o t h er why t h ey l ef t.
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13 . Cus t om e rs w ho ar e i nt e re st ed
 Cus to m ers , l ik e e mp l oy e es , m ay b ec o m e d is s at is f ie d if t h ey in te rac t w it h a
c om p any t ha t us es ou t da t ed tec h no l o gy . T h is c an g iv e y o ur c o m pa n y t h e re p ut at i o n

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of be i n g " o ut of s t e p." By i nv es t i ng i n t ec h n o lo gy , y o u w i ll prov i d e a be tt er
c us t o mer ex p er i enc e wh i l e a ls o d e m ons tr at i ng t h at y o u ar e i n i t f o r t he lo n g h au l .

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1. 1. 2 S y st em int eg r at ion ap pr oa ch e s

Sy s t e m in t egr a ti o n i s m ul t if ac et ed a n d c an b e ap pr o ac h e d us i n g v a ri o us

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arc h i tec t ur a l fr a m ew o r k s , b as e d u p on t h e nu m be r a nd es s e nc e of e l e me n ts th a t
mus t b e l i nk e d .

Mod el of po int - t o - poi nt com mun ic at ion

Po int - t o - poi nt int eg r at i on ( P 2 P) is a n arc h it ec tur a l p at ter n w her e i n ev ery pr oc es s

is fu l ly l i nk e d t o a ll o t her a p p l ic a t io ns a nd s y s te ms w it h wh ic h i t mus t c o l la b ora t e

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an d s h ar e da t a. A P Is , w eb h ook s , or c us to m c o de c an b e us e d to i m p le m en t th is
mo d e l.

A po i nt - t o- p o in t c on n e c ti o n ex tr ac ts da t a fr o m o n e s y s t e m, m od i fi es or f orm a ts i t,

si
an d t he n s e nds it t o a no t her s y s t e m. E a c h ap p l ic a t i on i m p le me n ts a ll o f th e
rat i on a l e f or d at a tr a n s l at i on , tr a ns f or ma t io n , a n d r ou t in g wh i l e t ak i ng i nt o ac c o u nt
th e pr ot oc o ls an d d at a m o de ls s u p por t ed by ot h e r i nt e gra te d c o m p on e nts .
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 Th e po i nt - t o- po i nt in te gr a t io n ar c h it ec tur e (s tar /s p a gh e tt i) .
Adv ant ag e s an d di s ad va nt a ge s : O n e o f th e pr i m ary b e ne f its of po i nt - t o- p o i nt

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i nt egr a ti o n wo u l d b e th e a b i li ty of a n IT te a m to q u ic k ly b u i l d a s m a l l - s c al e
i nt egr a te d s y s t em . O n th e c o ntr ary , th e mo d e l is d if f ic ul t to s c a l e a nd t h e

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l ea d ers h i p of al l t he c o ll a bo r a t io ns c a n ge t v ery c h al l e ng i n g w h en ev er t h e r a ng e of
ap p l ic a n ts ex p a nds . A s s um e us ers ou g ht t o u nd er tak e 1 5 in te gr a ti o ns t o c o nn ec t
s ix m od u l es . As a r es u lt , th e s o- c a l l ed s t ar/s pa g he tt i in te gr at i o n oc c urs .
Wh en to a ppl y it : Th is a p pr o ac h is a p pr op ri at e f or b us i n es s es t ha t d o n ot hav e
c om p l ic at ed b us i n es s r at i on a l e a n d r e ly o n a f ew s of tw ar e c o m po ne n ts t o r u n t he ir

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op er at i o ns . It is a ls o a n ex c el l e nt c h o ic e f or bus i n es s es lo ok i ng t o c on n ec t t o S a a S
ap p l ic a t io ns .
Hub - and - sp ok e mod e l
Th e hu b- an d- s p ok e mo d e l is a fa r mor e ef fec t iv e t ec hn i q u e of i n te gr at i on
arc h i tec t ur e t h at o u tl i nes p o i nt - to - p o in t is s ues w h i le av o i d in g t h e s tar /s pa g he tt i
mes s . B ec a us e th e r e la t io ns hi ps a mo n g a l l s ub - s y s t e ms are m an a ge d by a

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c en tr al iz e d l oc at i on ( mes s a ge br ok e r), th e y do no t c o n n ec t di rec t ly w i t h o ne
an o th er.
Th e h u b f unc t io ns as a m es s ag e - or ie n te d m i dd l ew ar e w it h a c e nt r a lis e d i n te gr at i on
en g i ne , t ra ns la t i ng pr o c es s es i n to a s o l it ary c l as s ic a l d ia l ec t a n d r ou t in g m es s a g es

si
to t h e ap pr o pr i a te d e s ti n at i ons . Th e s p ok e s (a d ap te rs ) th a t c on nec t t he c e n tre t o
th e s u b - s y s t e ms ar e ha n d le d s e pa ra te ly .
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 Th e i nt eg ra t io n ar c h it e c tur e o f hu b - a nd- s p ok e.
Adv ant ag e s an d di s a dv ant ag es : I n c o m par is on to P 2 P, t h e m o d e l o ff ers s ev er a l

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adv a nt a ges , inc l ud i n g gr e a ter s c a la b i l ity . B ec a us e e ac h s y s t e m o n ly h as on e
re la t io n t o t he ma i n loc at i o n, s a f ety a n d arc h it ec tur e s im p l ic i ty i mp rov e. T h e

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c en tr al iz a ti o n o f t h e hu b , o n t h e o t her h a nd , c ou l d b e a v u l n er ab i l i ty i n s uc h a
mo d e l. Th e en t ir e in fr as tr uc t ur e is r e l ia nt o n a s in g le in te gr at i o n en g i ne , w h ic h c an
bec o me a b ig hi n dr anc e as t he v o l u me of w or k gr ows .
Wh en to app l y it : In e - c o m m er c e , f i na nc i a l op er at i ons , a n d p ay me n t pr oc es s i n g,
th e hu b- an d- s p ok e m o de l is w id e ly us e d. Fu rth er mo re , it is a pre f err ed d es ig n f or

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he av i ly r e gu l at e d i nd u s tr i es w it h s er i o us s ec ur ity r is k s .
Ent e rp ri s e S er v ic e B us ( E S B) mod e l

Th e E SB a r chit e ct u re c a l ls f or t h e dev e lo p me n t o f a s e par at e s p ec i a l is e d

s ubs y s t em — a n en te r pr is e s er v ic e bus — th a t ac ts as a ma i n s tre a m c ons u mer
i nt erf ac e l ay er l ink i n g ot h er s ub - s y s t ems .

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Th e E SB is a s e qu e nc e o f m id d le w are s erv i c es t h at c o nn ec t m u lt i p le s y s te ms a nd

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ac t as a mes s a gi n g b ac k b o n e. U nl ik e hu b - a nd- s p ok e , wh ic h us es a s in g l e
c en tr al is e d i nt eg r a t io n e ng i n e, E S B pr ov i de s e ac h s y s t e m wi t h it s o wn i n te gr at i o n
en g i ne a n d ad a pt er , wh ic h c o nv er ts a s ta t em e nt in to t h e c l as s i c a l t e m pl a te a n d
ret ur n t o t h e loc at i o n s up p or t e d f or ma t. E S Bs w er e ori g i na l ly des i gn e d t o c o n nec t
er
c om p l ic at e d i n ter n a l ne tw or k of lar g e en t erp ris es , b u t t h ey c a n als o wo rk w i th
c l ou d s erv ic es .
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Th e arc hi t ec t ur e f or e nt er pr is e s e rv ic e b us i nt e gra t io n .

Adv ant ag e s a nd d is ad va nt a ge s: O n e o f th e adv a nt ag es of E S Bs is t h at eac h

s ubs y s t em is d is as s o c i at ed by a " m es s ag i ng bus ," a l lo w in g i t t o b e r e pl ac e d or
(c

a lt ere d wi t ho ut i m pac t i ng th e c ap a b il i t ies of ot h er s u b - s y s t e ms . T h is b en e fi ts fr o m

h ig h s c a la b i l ity . F ur th er mor e, s uc h pr oj ec ts ar e d ep e nd a b le a n d s i mp l e to d es i gn .
In ter ms of dr aw b ac k s , t he s pr e ad of i n te gra t io n tas k s ac r os s s y s te ms mak es
ma i nt e n anc e a nd tr o u b les h oo t in g m or e d if f i c u lt .
 Wh en to us e it : A n E S B m od e l is t h e b es t way t o i m p le m en t l a rge proj ec ts l ik e
en t erpr is e ap p l ic a t io n i nt egr a ti o n ( E AI) , as i t al l o ws f or s c a l a b il i ty . I f a c or p ora t io n

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wa nts t o br i n g it al l t o ge t her o n - pr em is es , t h is is a go o d fi t.

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1. 1. 3 D epl oy me nt opt ion s f o r in t eg r at ed s yst e ms

Des p it e t h e f ac t t ha t we'v e m en t io n ed th e 3 m os t pr ev a l e nt arc h i tec t ures , t h e

rea l i ty is muc h di ff er en t. A s in g l e i nt e gr at i on ap pr oac h c ou l d n o l o ng er s uf fic e ,
par t ic u l ar ly for b us in e s s es t h at us e a d iv ers e r an g e o f tec h ni q ues . Bus i nes s es ar e

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fre q ue nt ly r e qu ir e d t o mer g e al l thr e e d i ff ere n t s e ts w i th i n a s i ng l e ec os y s te m ,
ut i l is in g m u lt i pl e k i n d s o f m id d le w are a n d A P I l ay ers b e tw e en IT c o m po n en ts .
For tu n at e ly , an i nc r e a s i ng n um b er of c l ou d p la tf or ms a re of f er in g th e ir s erv ic es to
de a l w i th c o m pl ex i nt e gr a t io ns . C o ns i d er t h e t w o p o pu l ar de p l oy m e nt o pt i ons l is t e d
be l ow .
Int eg rat ion pl at f or m as a S er v ic e (i P aa S)

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In te gr at i o n P la tf or m a s a S er v ic e r ef ers t o a c o ll ec t io n of c lo u d - bas e d i nt e gra t io n
s o lu t io ns t ha t ar e pr i m ar ily us e d f or i m pl e m e nt i ng in t egr a ti o ns i n th e c l ou d .

si
As a n a l l- inc l us iv e s er v ic e, i P a a S c on n ec ts s y s te ms , proc es s es , a n d d at a i nt o a
s i ng l e us er i nt er f ac e. I t pr ov i d es a l i bra ry of rea dy - to- us e c o nn ec to rs t ha t a l lo w
d is p ar at e us er to in t er ac t w i th o n e a no th er r eg ar d les s of w her e t h ey ar e p lac e d.
Da ta tr a ns f or m at i on a nd s hi p p in g fr om an d t o a pp l ic at i ons a re h a n d le d by i P a a S.
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Ex am p l es of p o te nt i a l i Pa a S c o n nec t io ns s i m p li f ie d .
 P ro s a nd con s : iP a a S ar e a dv an t ag e ous i n a v ar i ety o f w ay s . It's a d ap ta b l e,
v ers a t i le , a n d s c a la b l e. I nt e gr at i on ac t iv it i e s ar e a u to m at e d w it h i P a a S, al l ow i n g

e
for t he r el a ti o n of s y s te ms a nd d at a d e pl oy ed in a ny e nv i ro n me nt a nd a l l ow i ng f or
fas ter pr oj ec t d e l iv er y . I n ter ms o f f l a ws , th ere m ay b e s ec u ri ty c onc er ns , as w it h
any pu b l ic c l ou d.

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Wh en to u s e it : i P a a S is i d ea l f or r e a l - t i me ap p l ic a t io ns a n d s up p orts a w i de r an g e
of in t egr a ti o n s c e n ar i os s uc h as en t erpr is e a pp l ic at i o n i nt e gr at i on ( E AI) , d a ta
i nt egr a ti o n, c l ou d in t e gr a t io n , B 2 B in t egr at i o n, A PI m an a ge m en t, I nt er ne t o f T hi n gs
i nt egr a ti o n, an d m a ny ot h er s .

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Hyb r id int eg r at io n p l at f o rm ( H I P)

A hy br i d i nt e gr a t io n p l at for m ( H I P) is a m o re g en er a l is e d v ers i o n of wh at i P aa S
prov i d es . I t is a c ol l ec ti o n o f i nt e gr at i on s of t war e t h at inc l u des b ui lt - i n c a p ab i l i ti es
for mak i ng on - pr e m is es a nd c lo u d - bas e d me t ho ds w ork t og et h er as a c o h es iv e

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b loc k .

si
In te gr at i o n p la tf or ms s e r v e as a b ri d ge b e tw e e n le g ac y s y s te ms ru n n in g o n
phy s ic a l h ar dw ar e, a pp l ic at i ons a nd d at a b as es i n a pr iv at e c l o ud , a n d s y s t e ms
run n i ng i n t he p ub l i c c lo u d. S uc h p la tf o rms n ec es s it at e t h e l eas t a m ou n t o f
c on f ig ur at i o n. T h ey i n ter fac e an d i nt eg ra te wi t h a ny s y s t e m by ut i l is i n g t wo m aj or
er
c om p on e nts : pr o toc o l c o n nec t or s f or h a nd l i ng c om m u nic a ti o n pr ot oc ols s uc h as
HTT P, TC P , J MS , an d s o o n, a n d m es s ag e f or ma tt ers f or h a nd l in g v ar io us d at a
for m ats s uc h as J SO N , X ML , a nd s o on .
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Di a gr am o f a hy br i d i n te gr at i on pl a tf or m.
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Adv ant ag e s a nd d is ad va nt a ge s : HI Ps of f er a v ar i ety of b en e fi ts , r an g i ng fr om

ma n ag e d A P Is a nd c lo ud of fer i n gs to re - us ab l e i nt e gr at i on fr a me work s f or ty p ic a l
ap p l ic a t io ns . C o mp a ni es c a n ex p ec t h i gh s ec ur i ty a n d a d ec l in e in i nt e gra t io n
 c os ts , t im e , an d m a i nt en a nc e ef for ts w it h t h i s m o de l . A t t he s a m e ti m e, in t egr a ti o n
p la tf or ms h av e n ot y et r e ac he d m at ur ity , m a k i ng i t d if f ic u l t to s e l e c t a s u it ab l e o ut -

e
of- th e- b ox s o lu t io n.

Wh en to u s e it : HI P s ar e pr im ar i ly c o nc e rne d w i t h t he d ig i ta l tra ns f or m at i on of

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l eg ac y s y s t e ms . T h is is a n ex c e l l en t fr a m ew ork f or or ga n is a t io ns t ha t ne e d t o
re la te on - pr e mis e a n d c l ou d s o l ut i ons .

1. 1. 4 K ey st e ps of s y st e m int eg r atio n

On
Sy s t e m i nt e gr at i on k e y s t eps

By c o n nec t in g e n ter p r is e d at a a n d s y s te m s , b us i n es s es c ou l d c om p ut er is e a nd
ac q u ir e c o m pl e te d is c l os ur e o f t h eir b us i n e s s o p er at i ons . Th er e are a f ew c r i tic a l
s te ps t o t ak e i f y ou w an t to un d ert ak e fu l l i mp l e me n ta t io n a nd s e e a q u ic k r et ur n
on y our inv es tm e nt .

ty
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er
iv
Un
ity

Pr oc e d ur es f or im p l em en t in g s y s t e m i nt egr a t i on .
Ana l ys is of f ea si bi lit y and p lan nin g
m

Ev ery i nt eg r a t io n pr o c es s be g i ns wi t h an as s es s me nt o f t he s y s t ems t o b e
i nt egr a te d an d t h e dev e l op m en t o f a fe as ib l e s tr at e gy . Cre at e a n ac c ur at e
rep res e nt at i on o f y o ur ex is t i n g s o ft w are a n d i ts t ec hn ic a l s pec i f ic a ti o ns , as w el l a s
a lis t of a ll i nt e gr at i on r eq u ir em e nts . W id e n th e pri or i ty , ti m e l in e, an d c os t of y o ur
)A

i nt egr a ti o n pr oj ec t . It ' s a s m ar t op t io n t o inc l ud e a l l p o te nt i a l r is k s a n d s o l ut i ons i n

y our pl a n.
Ar ch ite ctu r e mod e lin g
Th is s t ep i nv o lv es c h oos i n g o ne of th e c o m mo n m o de ls we me nt i on e d a b ov e o r
des i g ni n g a c us t o m ar c h i tec t ur e t o m e et y o ur s p ec i f ic n ee ds . Yo u a ls o n ee d
(c

de t ai l e d bl u e pr i n ts of h ow s y s t ems w i l l c o m mu n ic a t e w i th o t her c o mp re h ens iv e

s y s te ms . T h e m os t la b our - i n te ns iv e , t h is p ha s e is o f gr e at im p ort a n c e as i t o ut l i nes
 th e i nt e gr at i on mo d e l, m e th o ds , a n d pr oc es s i n g e ne ra l . Pr e l im i n ary a nd phy s ic a l
des i g ns ar e c r ea t ed at t h is s t a g e.

e
E xe cut ion

lin
Th e ne w i nt e gr a t ed fr am e wor k h as b e en ex te ns iv e ly c h ec k ed t o de t erm i n e t h at a l l
c om p on e nts i nt er ac t s ea m l es s ly w i t h e ac h ot her a nd th a t n o d at a is l os t d ur in g
tra ns m is s i o n. I t c o u l d t h en be i nc or p or at e d a nd i ntr o duc e d t o c ons u me rs . I t is
s ug g es t e d t h at th e i m p le m en t at i on s t ag e be k e pt as s hor t as pos s i bl e i n ord er to
av o i d c h al l e ng es r e l a te d to p o te nt i a l c h an ges in t he in t egr a ti o n pr oc es s . A g il e

On
proj ec t m an a ge m en t c ou l d b e us e d b ot h d ur in g a n d a ft er t h is p has e t o as s is t a
c om p any i n ad a pt i ng t o c h an g in g e nv ir on m e nt o f i nt e gra t i on s y s t e ms .

Rep a ir s

Us ers s h o u ld n ’t ov er l o ok per i o d ic ins p ec t i on s o n t h e d ev ic e . I t is rec o m m en d ed t o

s c he d u le p er f or ma nc e di a gn os tic s t o e ns u r e t ha t a l l mo d u les o per a te f la w les s ly

ty
an d t ha t n o er r or s oc c ur .

1. 1. 5 S yst em i nt e gr at ion m et hod s

Fo ur Co m m on Sy s t e m In te gr at i o n Me t ho ds
si
er
V ert i ca l

Th e v er tic a l me th o d is s im p l e t o e nf orc e b ut h ar d t o m a na g e as w he n t h e i n dus try

ex p a nds . S ub - s y s t ems i n a v ert ic a l ly i nt e gra te d s y s t em ar e or ga n iz ed i nt o
iv

'i nf or ma t io n s i l os ' b as e d o n th e ir fu nc t i ons . T h es e s il os ' s ubs y s t ems ac t

au t on o mo us ly , w i th no c o m mu n ic at i on w i th o th er s i l os .

Adv ant ag e s
Un

• Co nv en i en t – Si nc e i t do es n ot r eq u ir e m uc h c o d in g k n ow l e dg e , th i s is a
go o d m et h od f or c o m p an i es t ha t d o no t h av e a s tr o ng I T t e a m.
• S i mp l e to bu i l d – N o r em ark a bl e c o d i ng s k il l s ar e re q ui re d t o br in g t h is
i nt egr a ti o n t o l if e.
• S ec l u d ed s u bs y s te ms – Ins t ea d o f be i n g c on nec t ed , e ac h s u bs y s te m
s en ds i n d iv i d u al r eq u e s ts t o o t her s u bs y s te m s .
ity

Dr aw b a ck s
• V er t ic a l i nt e gr a t io n is t oo r i gi d – it w i l l n ot p er m it f or a ny f lex i b i l ity o r
a lt er a t io n .
• Fur th er s i l os m us t b e bu i l t ov e r ti m e – A ne w s i lo mus t b e b ui l t fo r e ac h
m

ne w s u bs y s t e m.
• Di ff ic u lt t o m a na g e – W he n a s y s te m h as t oo ma ny in fo rm at i o n s i los , i t
bec o mes c l ut ter e d an d s l o w.
)A
(c
 Ho riz o nta l
Th e h or iz o n ta l me th od , as op p os e d t o v e rt ic al s y s te m in t egr a ti o n, a ll o ws

e
c om m u nic a ti o n b et we en s ubs y s t ems . Th is is ac c o m p l is h e d by es ta b l is hi n g a n
E nt er pris e S er v ic e B us ( E S B) . T he E S B s e rv es as b ot h a tra ns la t or a n d a
c on n ec t or b e tw ee n t h e s u bs y s te ms . T o c o m mu n ic at e w it h t h e E S B , e ac h s ubs y s te m

lin
req u ir es on ly o n e i nt er f ac e. O n e f ea tu r e of t his t ec hn i q ue is t ha t wh e n
mo d if ic a t i o ns ar e i nt r od uc ed to ot he r s u bs y s te ms , on ly t h e E S B ne e ds t o c h an g e,
i ns t ea d o f th e ov er a l l n et wor k . Nev er th e l e s s , s inc e t he E S B is t he o p era t io n's
c en tr al h u b, a ny is s ue s w it h th e s ubs y s t ems or th e E S B i ts e l f c an br i ng t he e nt ir e
proc es s t o a h a lt .

On
Adv ant ag e s
• Q u it e a da pt a b le – Su bs y s t e ms c ou l d e as i ly m ak e a n d r ec eiv e us er r e qu es t
v i a th e E S B .
• Few er m o d if ic at i ons – O n ly c h a ng es t o th e E S B ar e r e qu ir e d if a s ubs y s t em
c ha n ges .
• S ubs y s te m c o m mu n ic at i on – U n l ik e v er t ic a l in t egr at i o n, s u bs y s te ms c a n

ty
c om m u nic a te w i th e ac h ot h er.

Di sa dv ant ag e
• S ig n if ic a nt r is k of t ec hn ic a l e rror – If s o me t h in g go es wro n g w i th on e of t he

si
s ubs y s t ems o r th e E S B, it c o u l d hav e a n i m pac t o n th e e nt ir e s y s t em .
• S lo w er c o mm u n ic a t io n s p ee d – D ue t o t he v o lu m e of d at a b e in g p roc es s e d,
th e E S B m ay p er f or m s l ow ly .
• Ne ed s a de di ca t ed s t ru ct u r e – T he E S B r eq u ir es t o b e p art ic ul ar ly m a de
er
for a n i n d iv id u al ’s s y s t em .

St ar / Sp agh et t i
Th e s t ar, s p ag h et ti , or p o i nt - to- p o in t me t ho d , as it is a ls o i d en t if i ed , inv o lv es
iv

l ink i n g ev er y s ub - s y s te m i n div i d ua l ly t o mos t o f t h e ot h er s u b - s y s t e ms . T his

en a b les fu r t her i nt er a c ti o n w i th o ut th e us e of a n E S B . H ow ev er, if o ne s u bs y s t e m
req u ir es mo d i fic a ti o n, th e o th er s m us t as we l l . W he n th er e a ren 't t oo m a ny
s ubs y s t ems in t h e s y s t em , t his is a n ex c el l e n t me t h o d.
Un

Adv ant ag e s
• In d ep e nd e nt – C o m mu n ic a t io n is a u to m at ic .
• Ev er y s ubs y s t em is l i nk e d – E ac h s u bs y s t em is i nd iv i du a l ly l i n k ed t o
ev er y ot he r s ubs y s t em .
• Fas t er c o m mu n ic at i on – W it h ou t th e c u m bers om e E S B , da t a mov es mo re
qu ic k ly ac r os s t he s tr u c tur e.
ity

Di sa dv ant ag e
• W he n on e s ubs y s t em c ha n ges , al l s u bs y s te ms mus t c h a n ge a s w e l l –
e ls e t h ey wo u ld no t b e a b le t o e ff ec t iv e ly c o m mu n ic a t e.
• Ex t r e m ely s o ph is t ic a t ed – A g re at d ea l o f pr e par a ti o n is n ec es s ary t o
m

gu ar a nt ee t h at e ac h s ub - s y s t em is c o nn ec t ed c orrec t ly to t h e ot h ers .
• Th er e is a h i gh r is k of pr o b l ems w he n t h e re ar e t o o m a ny c o n n ec t i ons –
Th e m or e s u bs y s te ms th er e ar e, t he mor e l ik e ly th er e w il l b e pr o b l ems .
)A

Dat a fo rm at t hat ev e r yon e us e s

W he n t h is ty p e o f i n t egr a ti o n a p pr oac h is us e d , a ne w d a ta l an gu a ge is c r ea t ed .
Es per a nt o's l a ng u ag e is a u bi q u it ous t e mp l at e t h at a l m os t a l l s ubs y s te ms ar e us in g
to tr a ns m i t a nd an a ly z e i nf or ma t io n a m o ng e ac h ot he r. T his t ec hn i qu e c a n b e us e d
to av er t hav i n g m ul t ip l e a da pt or s f or e ac h s u bs y s t e m i n a s y s te m .
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Adv ant ag e s
• E xc el l ent t r an s lat ion – A l l s u bs y s t ems a re 'f l ue n t' a nd c an i nt er ac t
fl a wl es s ly .
• Dig it aliz ed – T h er e is n o n ee d t o p hy s ic a l ly s ub m it us er r eq u es t .
 • De vi c es n e ed n ot co l lab or at e – Ev ery s u b - s y s t em op er at es d if f e ren t ly .

e
Di sa dv ant ag e
• H igh c odi ng s ki ll r equ ir ed – T h is is a c om p l ex me t ho d t ha t n ec es s i ta t es a
h ig h l ev el of c o d i ng pr of ic i enc y .

lin
• T he ri s k of in it i a l prob l em s – A l o t o f i s s ues wi t h t he da t a f or ma t t en d t o
ar is e d ur i ng s et up .

On
1. 1. 6 Ben ef it s and c ha ll en ge s of sy st em int eg r ati on

Cor p ora t e m an a ge r s m ig ht we l l b e a fr a id t o s p en d in s y s t e m i n t egr a ti o n re m ed i es

bec a us e it 's d if f ic u l t t o f ul ly u n d ers t an d t he s c op e o f o ne ’ s s h or tf a lls an d
i nf or ma t io n f l ow d is c r ep a nc ies u nt i l t h ey 'r e c o m p le t ely r es o lv e d w i th a s t ro n g
s y s te m in te gr at i o n p l a n. B ut do n' t w orry , th ere 's a l ot of mo n ey t o b e m a de i n a
s y s te m in te gr at i o n d ev e lo p me n t pr oj ec t. Le t' s lo ok a t s o m e o f th e ot h er a dv a n ta g es
of s y s te m i nt e gr a t io n an d a n i nv es t m en t in tec h no l ogy t ha t enc o u rag es s i mp l i f ie d

ty
as s im i l at i on .

P ro ce s se s t h at a re m or e ef f i ci ent — A w e l l- des i g ne d s y s t e m in te gra t io n s tra t egy

wo u ld t he n s im p l ify or ev e n c o m p le t ely op t im is e bus i n es s o per a ti o ns . W h en

si
i nd iv i du a ls ar e n o l o n ger r e q u ir e d t o b ri d ge th e g ap b et w ee n s y s t ems , we ar e fr ee
to c o nc en tr at e o n m o r e pr od uc tiv e , h ig h er - l ev e l t as k s . M aj or s y s te m i nt e gr at i on
be n ef i ts i nc l u de i nc r e a s ed ef fic i e nc y an d s tr e am l i n ed o p era t i ons .
er
Enh an c ed Vo lum e O f sa l es — C o m pa n ies i n t h e eC om m erc e a n d r et a i l s ec tors (as
we l l as o t her s t ha t r e ly o n s a les ) ty pic a l l y s ee a s i g ni f ic a n t i nc re as e in s a l es
v o lu m e fo l l ow i ng an in v es t m en t i n s y s t em in t egr a ti o n. W he n i nv en t ory is u p da t ed in
rea l- t im e , c o ns u mer s wi l l h av e m or e pu rc has i n g o p p ort un i t ie s an d a be tt er
iv

purc h as in g ex p er ie nc e. F ur t h er m or e, t e a m m e mb ers a re g iv e n da t a th at en a b les

th e m to o pt i m is e r es toc k i ng o r d ers , t rac k i nv en to ry mo re e as i ly , a n d o pt i m is e
s a les - r e l at ed op er at i o ns .
Un

Re al- tim e Dat a — I n ma ny i nd us t ri es , h av in g ex p os ur e to pr ec is e , r ea l i nf o r ma t io n

me as ur em e nts c ou l d be a k ey d if f ere n ti a t or. B ec a us e y o ur ev a lu at i o ns w i l l b e
bas e d on ac c ur at e, u p - t o- da te d at a , s y s te m i nt eg ra t io n en a b les f ar g re at er
bus i n es s ag i l ity an d s ma r t er b us i n es s d ec is i ons .

Uti liz e N ew Dat a in Nov e l Wa y s — A n ot h er s u bs t a nt i a l s y s te m in t egr a ti o n

ity

adv a nt a ge r ev olv es a r ou n d d a ta a nd th e t y pes of d at a t h at a c orp or at i o n c o u ld

s tor e a n d r e tr i ev e. A s ea m l es s ly e ng a ge d d ev ic e w o u ld prov i d e n ew op p ort u ni t ies
for d at a c o l l ec t i on . T oo m uc h d at a r ep res en ts m ore s t at is t ic s an d p ers pec t iv es ,
wh ic h c o u ld p r ov e b en e fic i a l, im pr ov em e n ts , a n d ot h er s i g ni f ic an t pr o gres s in
ne ar ly ev er y d ep ar tm e nt o f a b us in es s .
m

Sub st ant ia l C ost E f f ic ie nc ie s — W it h ou t a do u bt , o n e of th e m os t ap p e al i n g

be n ef i ts o f s y s t e m i nt egr a ti o n is f i na nc i al s av i ngs . A c u s t om - b u i lt s y s te m
i nt egr a ti o n s tr at e gy wi l l s av e m o ney by s tre n gt he n i ng op er at i ons i nt o a s i n g le
p la tf or m o nc e f eas i b le an d li nk i ng s y s te ms t ha t w o ul d s t ay i n p l ac e. T h ere ar e a ls o
)A

c os t s av i n gs c or r e l a te d wi t h gr ea ter ef fic i e n c y a nd inc re as ed j u d g em e nt as a r es u l t

of av a i la b i l ity o f i nf or ma t io n .

Enh an c ed S ca l abi lit y — T he maj or ity o f m od er n s y s te m i nt e gra t io n s tr at e gi es

mak e us e of c lo u d - b as e d s t or a g e, c lo u d c om p ut i n g, a nd ot her c l o ud res o urc es .
(c

Sc al a b i li ty is an i mp or ta nt f ac tor i n b ot h th e f i na nc i al an d s tr at e g i c as p ec ts o f t he
eq u at i on .
 Th e c l o ud is v er y c o s t - e ff ec t iv e b ec aus e i t pr ov id es a l l o f t he b e ne f its of on -
pre m is es r es o ur c es w it h ou t t h e c os ts o f ac qu ir i n g a nd m a in ta i n i ng th e har d war e.

e
It's a ls o s c a l a bl e , as ad d it i o na l c l ou d r es ou rc e s are a ut o ma t ic a l ly m ad e av a i l ab l e
as y o ur bus i n es s ex pa nds . Sc a l in g b ac k is a ls o s i mp l e b ec a us e y o u'r e us ua l ly o n ly
c har g e d f or t h e r es our c es th a t th e c o mp a ny has ac t ua l ly us e d .

lin
Cha ll en ge s

Ev ery b us i nes s i n to d ay 's wor l d has a wi d e r an g e o f ap p l ic a t io ns a n d s erv ic es .

In te gr at i n g t h os e pr oc es s es is fr e qu e nt ly a c rit ic a l nec es s ity , a nd c a n be a s er i ous
obs t ac l e f or IT . L e t’s ex a m in es t h e f iv e m os t c o m mo n s y s te m i nt e gr at i on

On
obs t ac l es -

• Int eg rat ing w it h mon olit hi c s yst em s:

Le t us f irs t a gr ee th a t th e maj or ity of e nt er pr is es w i l l h av e m o no l i t h ic s y s t ems , an d

th at i t is o ft e n d i ff ic u lt to g et r i d o f t h os e s y s te ms . Th is is du e to t he f ac t th at s uc h

ty
s y s te ms ar e h e av i ly r e li e d o n by bus i nes s e s , a nd t h ey ar e m os tl y le g ac y s y s te ms
th at c an n ot b e r ep l ac ed f or t h e s ak e of i n te gr at i on . If a s of tw a re s y s t em has a
mo n o l it h ic ar c h i tec t ur e, it is r ef er r ed t o as mo n o l it h ic . Fu nc ti o n al l y d is ti nc t as p ec ts
are no t arc h it ec t ur a l ly s e p ar a t e c o mp o ne nts i n m o no l i th ic a rc h i tec tur e, bu t ar e a l l

si
i nt erw ov en . I nt e gr at i on bec o mes di ff ic u l t as a r es u l t of s uc h arc h it ec t ur e. A
s y s te ms i n te gr at or m us t k e e p h o ld t o rec og n is e a nd s e l ec t th e b es t m e th o d of
i nt egr a ti n g w it h m o no l i th ic b us in es s a p pl ic a ti ons .

•
er
Dat a i s vi ew ed dif f e r ent ly b y d iff er ent bu sin e ss un it s:

Th e us e of c ur r en t c or por a te d at a is im p ort a nt for t h e ac h i ev e m en t of th e b us in es s .

S inc e t he ir o p er a t io n a l r es p o ns ib i l it i es v ar i es an d th ey m i gh t e v en us e m u lt i p le
pro gr a ms or s o ft war e, e ac h b us i n es s e nt i ty or b us in es s d o ma i n s e es d at a
iv

d if fer e nt ly . T h is is f i ne for a n i n div i d ua l un i t, bu t i n ord er t o in te gr at e t h es e

s y s te ms ac r os s t h e en t er pr is e, a s t an d ar d d at a m o de l is re q u ire d. A s y s t e ms
i nt egr a tor m us t n ot o n ly m e et a c o mp a ny 's re qu ir e me nt s , bu t a l s o go a bov e a nd
bey o nd to d es ig n an in t egr a ti o n w it h a s ta n dar d is ed v i ew of da t a w it h in t he
Un

c om p any . T ha t's w h e r e a s y s t e m in te gr at or s h o ul d c onc e ntr at e m os t ly on da t a

mo d e l li n g a n d as s ur e a t hr es h o ld fo u n da t i on a l da ta s tr uc t ur e i s ac c o m p lis h e d
dur i n g i nt e gr a t io n . Th e te r m " mi n i mu m c an on ic a l d at a m o de l" is of te n us e d m any
en t erpr is e ar c hi t ec ts av o i d us in g c an o n ic a l da t a b ec aus e a gre e i n g o n i t fr e qu e nt ly
i nv o lv es a dd i ti o na l d i s c us s io ns a nd me et i n gs to re ac h a c o ns e ns us . In d iv id u a ls
fre q ue nt ly av o i d t h es e m e et i ngs , b ut th is c a n no t b e rej ec t e d th at a m i n im u m
c an o n ic a l da ta m od e l s ho u l d b e c h os e n f or i nt egr a ti n g s y s t e ms i n o rd er t o g a in a
ity

c ons is te n t v i ew o f d at a at t h e i nt e gra t io n l a y er. T h is a ims t o a l l ev i at e p oi n t - t o- po i nt

da t ab as e d es i g n a nd e n ab l es o th er e n ter pr is es or a pps t o c o m mu n ic a t e to t h e
dev ic es v i a a s e r v ic e t h at i m p le m en ts c an o n ic a l d a t a m od e l l i ng ra th er t ha n
i nt egr a ti n g t o s ta n da l o ne dev ic es ex pl ic i t ly i n th e ir n at iv e d at a m o de l .

• Do it qui c kl y or do it bet t e r:
m

W he n I T re q u ir es to s up p ly a ny th i n g t o t he i r bus i n es s , t h ey a re f req u e nt ly li m i te d
by t i m e a n d b u d ge t. Pr oj ec ts a r e fr eq u en t l y m an a ge d by n o n - t e c hn ic a l ma n ag ers
wh o ar e b us in es s - foc us e d a n d l ac k k n ow l e dg e o f b es t pr ac tis es an d arc h it ec tur a l
)A

pr inc i p les . B ec aus e o f th es e c o ns tr a in ts , p rop er arc h i tec t ura l p l an n i ng , w hic h is

us e d to e ns ur e q u al i ty , is fr e qu e nt ly d if f ic u l t for IT . T h er e ar e s ev era l t oo ls o n t h e
ma rk e t t ha t c a n h e l p s p ee d up proj ec t im p l em e nt at i o n a nd m e et bus i n es s
req u ir e me nts m or e q u ic k ly , bu t t h ey fr eq u e nt ly lac k a g o od d ev e l op m en t p i p el i n e
an d us e of t he b es t ar c h it ec t ur a l pri nc i p les . A s y s te m i n te gr at or s ho u l d w a lk a f in e
l in e an d gu ar an t ee th at th e i nt eg ra t io n s o lu t io n ad dr es s es n ot on ly to d ay 's
(c

fu nc t i o na l r e q u ir e m e nt s , bu t a ls o p ot en t ia l f ut ur e a nd n o n - f u nc t i o na l r eq u ir em e nts
s uc h as ef fec t iv e n es s , ex p an d ab i l ity , r e - us a b il i ty , a n d pr es erv a ti o n.
 • Pi c ki ng t he Ap p rop ri at e I nte gr at ion Too l:

e
Th ere are nu m er ous d ev ic es i n th e m ar k et t h at c l a i m to pr ov id e t he f i n es t
i nt egr a ti o n ex p er ie nc e . It is d i ff ic ul t t o s e l e c t th e bes t t oo l f or a n e nt er pr is e . A n
i nt egr a ti o n to o l i n m o der n c o n nec t iv i ty c a n qu i te d e fi n it e ly a i d f u s i on as s i m i la t io n.

lin
Hy br i d i nt e gr a t i on e n a b les o n - pr em is e s o ft w are t o w ork i n t an d em wi t h c l ou d - bas e d
ap p l ic a t io ns . I t c on n ec ts y o ur ex is t i ng e nt er p ris e n e tw ork to S a a S/ P aa S , B2 C, B 2 B ,
B YO D, an d B i g D at a . Hy br i d i nt egr a ti o n is des ir e d bec a us e e nt erp ris es m ay n o t
wa nt t o go c o m pl e te ly c l ou d du e to l e g ac y s y s te m de p e nd a bi l i ty , r e gu l at ory is s u es ,
an d wor ri es a bo ut t h e c on f id e nt i al i ty an d pro t ec t i on o f c r it ic a l ma t er ia l . Hy br i d

On
i nt egr a ti o n to o lk it c o nn ec t s uc h d is c r ep a n c i es by a l l ow i ng b us i nes s es to u t il is e
i nn ov at iv e w eb an d mo b i l e a pps of th e ir ex is t i ng pr ogr a ms v i a a s erv ic e or A PI
l ay er .

• The c ha ll eng ing asp e ct of int eg rat ion i s in teg ra tio n:

ty
“W he n y o u g o t o I B M , y ou ge t a n i nt eg ra te d I B M s o lu t io n . W he n y o u g o to H P , th ey
l ea d w it h a H P s o l ut i o n. Bu t wh e n y o u s ay , ‘ I a lre a dy h av e D e l l s er v ers , a n d I ’d l ik e
to a d d H P s tor a ge , ’ th at c a n b ec om e pr o bl e ma t ic , a n d th a t’s wh er e th e i n te gr at i on
c ha l l en g e c o mes fr o m, ” - Ro g er Ch a n ni n g , Ch i ef T ec h n o lo gy O f fi c er at C o ge n t

si
In br o ad s ens e , an or g an is at i o n s e lec ts a l o a d of pro d uc t l i n es fro m a s p ec if ic
ret a i ler , o n ly to d is c ov er th a t th e s t ac k is e it her v ery c o mp l ex t o m a in ta i n or d o es
no t m ee t t he ir n e eds . I t is c r i t ic a l t o s e l ec t t h e r i gh t s e t of p ro d uc ts f or y o ur
er
c om p any . Th e c o m mo d ity s e l ec t e d ou g ht t o be c ap a bl e o f i nt e gra t i ng w i th ot he r
s y s te ms or pr o d uc ts , e it h er th r o u gh a w e b s e rv ic e l ay er or thr o ug h th e us e of
l ibr ar i es . T h is wi l l as s i s t bus i n es s es in av o i d i ng a n ot h er m on o l it h a nd f or m ul a ti n g
an d d ev el o p in g i m p le me n ta t io ns f or pr es e n t or p ros p ec t iv e pr od uc t l in es .
iv

Che c k Yo ur U nd er st a nding
Un

Fil l in the B l an k

1. __ _ __ _ __ _ _ __ _ is r es po ns i bl e f or i nt e gr at i o n tes t in g .
2. Th e __ _ _ __ _ __ _ __ _ a l lo ws c o m mu n ic a t i on b et we e n s u bs y s t e ms .
3. A _ __ _ _ __ _ __ _ __ is a m or e g en er a liz e d v er s i on o f w ha t i P aa S p ro v i des .
4. A _ __ _ _ __ _ __ _ __ ex tr ac ts d a ta fr o m o ne s y s te m, mo d if i es or f or ma ts it , a nd
th e n s en ds i t t o an o th er s y s te m .
ity

5. __ _ __ _ __ _ _ __ _ as a S er v ic e re f ers to a c o l l ec t i on o f c l o ud - b as e d
i nt egr a t i o n s o l ut i ons t ha t ar e pr i mar i ly us e d for im p l em e nt i ng in t eg rat i ons i n
th e c l o ud .

Tru e- F al s e
m

1. Co m po n en t t es t i ng m a y b e d on e i n is o l at i on fro m res t of t h e s y s te m
de p en d i ng u p o n its l if e c y c l e m od e l.
2. St u bs a nd d r iv er s ar e us e d i n c o m po n en t a n d i nt e gra t io n t es t i ng . Tru e or
)A

fa ls e.
3. In b i g b an g i n te gr at i on , a ll t h e m od u l es are n ot re q u ire d t o b e c o mp l et ed
be f or e in t egr at i o n tes t i ng s t arts .
4. St u bs a nd d r iv er s ar e us e d i n b i g b an g i n te g rat i on .
5. Th e go a l o f i nt e gr a t io n t es t i ng is to f i n d de f e c ts i n c om m u nic a ti o n be tw e en
tw o m od u l es r at h er th an s ee i ng if mo d ul es a re wo rk i n g c orr ec t ly .
(c
 Su mm ar y

e
Sy s t e m i n te gr at i on is mu l t id i m ens i o na l a n d c ou l d b e a d dr es s e d u s i ng
v ar io us ar c h i tec tu r a l c onc e pts , l i m it o n t he a mo u nt an d es s e nc e o f el e me n ts
th at mus t b e l ink e d.

lin
• In te gr at i o n P l at for m a s a S erv ic e r ef ers t o a c o l l ec t i on of c lo u d - ba s ed
i nt egr a ti o n s o l ut i o ns t ha t ar e pr im ar i ly us e d f or des i g ni n g a n d i m p le m en t in g
s ea m l es s i nt e gr a t io n i n th e c l o ud .
• i Pa a S is be n ef ic i al i n a v ar i ety o f w ay s . I t's a d ap ta b l e, v er s a t il e , an d
s c a la b le . I nt e gr a t io n op er at i o ns ar e d ig i ta l i z ed w i t h i P aa S , a l lo w i ng f or t h e

On
l ink a ge o f s of tw ar e a n d p r oc es s es u t i l iz e d i n a ny s urr o un d in gs a n d a l l ow i n g
for s h or ter c ons tr uc t i o n d el iv ery .
• As f or f la ws , t h er e ma y b e s ec ur ity c o nc ern s , l ik e any c lo u d p la tf or m.
A hy br i d i nt e gr a t io n p l at for m (H I P) s e e ms t o b e a mo re ge n era l iz e d v ers i on
of w h at i P a a S pr ov i des . It is a c o l lec t i on of i nt e gr at i on s o f tw are t h at
i nc l u des bu i lt - i n c a p ab i l it i es f or m ak i n g o n - pre m is es a nd c l ou d - bas e d
s o lu t io ns wor k t og e th er as a s i n g le u n it . T he E S B arc h it ec t ur e c a lls f or t h e
dev e l op m en t of a s ep ar a t e s p ec i al iz e d s u b s y s te m — a n e nt er pri s e s e rv ic e

ty
bus — th at ac ts as a s i mp l e us er i nt er fac i a l r eg i o n l ink i n g ot h er s u bs y s t e ms .
• Th e h ub - a nd - s p ok e mo d e l is a m ore adv anc e d ty pe of in te gr at i on
arc h i tec t ur e t h at ad dr es s es p o i nt - to- p o in t is s ues w h i le av o i d in g t he
s tar /s p a gh e tt i m es s . B ec a us e t h e li nk s b et w ee n a l l s u bs y s t e ms ar e h a nd l e d

on e a n ot he r .
• si
by a c e n tr a l hu b ( m e s s ag e br ok er) , th ey d o n ot c om m un ic at e d i rec t ly w i th

P oi n t- t o- po i nt i nt e g r at i on ( P 2 P) is an in te gr at e d d ev e l o p me n t
er
env ir o nm e nt wh er e in ev er y s y s te m is c l os e l y a tt ac he d t o ot he r a pp l ic at i ons
an d s y s te ms w it h wh ic h it m us t c o l la b or at e an d s ha re d at a. A PIs , we b -
ho ok s , or c us t o m c o de c a n b e us ed t o i m p le me n t th is m o de l .
iv

Act iv it y

G et d iv i de d i n to t h e g r ou p o f 5 a nd pr e pa re a pr es en ta t io n o n v ar i ous m e th o ds of
s y s te m i nt e gr at i on .
Un

Q ue sti on and E xe r ci s e

1. D ef i n e th e N ee d f or u p gr a d at i on of t he s y s te m.

2. D is c us s th e Sy s t em i n te gr at i on ap pr oac h e s .
ity

3. Ex p la i n t he D e pl oy m en t o pt i ons f o r in te gr a te d s y s t ems .

4. D is c us s th e K ey s t e ps of s y s t e m i nt e gra t i on .

5. D is c us s Sy s t e m i nt e gr a t io n m e th o ds
m

6. Ex p l a in t h e B en e fi ts a n d c ha l l en g es of s y s te m i nt e gr at i on
)A

G lo ss a ry

• S yst em int eg rat ion is m u lt i d im e ns io n a l an d c o u ld be r eac h ed us i ng v ar io us

arc h i tec t ur a l c o nc ep ts , li m i t on t he a m o un t a nd es s e nc e o f e le me n ts t h at
mus t b e l i nk e d .
(c

• Int eg rat ion P l at f o rm as a S erv ic e r e fers to a c o l l ec t i on o f c l ou d - b as e d

i nt egr a ti o n s o l ut i o ns t ha t ar e pr im ar i ly us e d f or des i g ni n g a n d i m p le m en t in g
i nt egr a ti o ns i n t he c lo ud .
 • Pl at f or m f or h yb rid i nt eg r ati on ( HI P ) A hy br id in te gr at i o n p la tf or m ( HI P) is
a mor e ge n er al iz e d v er s io n of w ha t i Pa a S pr ov i d es . It is a c o l l ec t i on o f

e
i nt egr a ti o n s of tw ar e th at inc l ud es b u i lt - i n c a pa b i l it i es for m a k i ng o n -
pre m is es a nd c lo u d - b a s ed s ol u ti o ns wo rk to g et h er as a s i n g le u n it .
• Th e E S B a rc hit e ct u r e e nt a i ls th e dev e lo p me n t of a s e p ara t e s pec i a l iz e d

lin
s ubs y s t em — a n e nt e r pr is e s erv ic e b us — th at s erv es as a c o m mo n us er
i nt er f ac e l ay er t h at c o nn ec ts ot h er s u bs y s t e ms .
• Th e hu b - a nd - spo k e mod el is a mo re a dv a nc ed ty p e of i nt e gra t i on
arc h i tec t ur e t h at ad dr es s es p o i nt - to- p o in t is s ues w h i le av o i d in g t he
s tar /s p a gh e tt i m es s . B ec a us e t h e r el a ti o ns h i ps a m o ng a l l s u b - s y s te ms are

On
ma n ag e d b y a c en tr a l iz ed l oc a t io n ( m es s a g e br ok er), t hey d o n o t c o nn ec t
d irec t ly w it h o ne a n ot h er .
• Po int - t o - poi nt in t eg r at i on ( P2 P) is an arc h it ec t ur a l p at te rn wh e re in ev ery
s y s te m is c los e ly r e la te d t o a ll o th er s y s te ms o r a p pl ic a ti o ns w i t h w h ic h i t
mus t c o l la b or a te a n d s har e d at a. A P Is , w eb - ho ok s , or c us t om c o de c a n be
us e d t o i mp l e me n t th is m o de l .

ty
Furt he r R ea din g

1. Ho w to D o Sy s t ems A na ly s is , J oh n E. G ibs o n, W il l i am T . Sc he rer , W i l li a m F.

si
G i bs o n , M ic h a e l C. S m it h
2. Sy s t e ms A n aly s is an d Des i gn Pr in t ed Ac c es s C ard ), H arry J . R os e n b la tt
3. Th e Sy s t ems T h i nk er , A n a ly t ic al Sk i l ls : L ev e l Up Y ou r D ec is i on M ak in g,
Pr ob l e m S o lv i n g, a n d De d uc t i on Sk il ls . No t ic e T h e De t ai ls O t h ers M is s .
er
4. Mo d er n Sy s t e ms A na ly s is an d D es i g n, J e ffr ey A. H of f er, J o ey G e or ge ,
J os e p h S . V a lac ic h
5. Mo d e l in g a n d A n aly s is o f Dy na m ic Sy s t e ms , S ec o n d E d it i on , R a mi n S.
Es f a nd i ar i, B ei Lu
iv

6. Sy s t e ms A n aly s is a n d D es i g n, An O bj ec t - O r i en te d A p pr oac h w it h UM L A l an
De n nis , B ar ba r a W ix o m, D av id T e gar d en
7. Mo d er n Sy s te ms An a l y s is a n d Des i g n, G lo ba l Ed i t io n, J os e p h S Va l ac ic h ,
J oey F . G e or g e
Un

8. Sy s t e ms A n aly s is an d Des i gn , Sc ot t T il l ey , H arry J . R os e n bl a tt

9. Sy s t e ms A na ly s is a n d D es i gn i n a C ha n g in g W or ld J o h n W . S atz i n ger ,
Ro b er t B. J ac k s o n, S t ep h en D . B ur d
10 . Sy s t e ms A n aly s is an d Des i gn , Sc ot t T il l ey
11 . B un d l e, Sy s t e ms A n al y s is a n d D es i g n, Lo os e - le af V ers io n , 1 2t h + Mi n dT ap ,
1 ter m Pr in te d Ac c es s Car d, Sc ot t T i l le y
12 . Sy s t ems An a ly s is a nd D es ig n, J IJ U J O H N
ity

13 . Sy s t e ms An a ly s is An d D es ig n A C o m pl e te G u id e 20 2 0 Ed i t io n, G er ard us
B lok dy k

Che c k you r Un de r st a nding : Ans w e r s

m

Fil l in the B l an k

1. Dev e lo p er , Sp ec i a lis t i nt e gra t io n t es t er

)A

2. Hor iz o nt a l me t ho d
3. Hy br i d i nt e gr a t io n p l at for m (H I P)
4. P oi n t- t o- po i nt I n te gr at i on
5. In te gr at i o n P la tf or m
(c

Tru e/ Fa l se

1. Tru e
 2. Tru e
3. Fa ls e

e
4. Fa ls e
5. Tru e

lin
Unit - 2: R equ i re me nt Det e rm in at io n

On
Le ar nin g O b j ect i ve s:

Afte r st ud yin g t h i s c hapt e r, y ou w il l be a ble to:

• Des c r i b e t h e R eq u ir e me n ts de f in i t io n .
• Dis c us s t he D e ter m i n i ng r eq u ir em e nts .
• Ex pl a i n th e M aj o r ac t i v it i es i n r e q uir e m en t d et er m in at i o n

ty
• Dis c us s t he R e qu ir e m en t a na ly s is t ec h n i qu e s
• Dis c us s I nf or ma t io n g at h er i n g t ec h n iq u es ) .
• Des c r i b e t h e o n li n e m et h ods /t o ols f or re q u ir em e n t g a th er i ng fr o m us er
• Ex pl a i n th e A u to m at e d d at a c o l l ec t i on

2. 1. 1 . I nt rodu ct ion

si
Th e d et er m in a ti o n o f r eq u ir em e nts an d t h e s tr uc t ur i ng of r e qu i re me nts ar e t wo
er
c rit ic a l c o m p on e nts of s y s te m an a ly s is . I n terv i ew i n g, qu es ti on n a ires , d ir ec t
obs erv at i o n, an d doc u me n t a n a ly s is h av e tr ad i t io n al ly b ee n th e f o ur ma i n me th o ds
us e d by s y s te m a n a ly s ts to ga t her da t a. J AD an d pro to ty p in g a re tw o pro m i ne nt
me t ho ds f or d e ter m i n i ng r e qu ir e me nt s th a t wer e d ev e lo p ed an d b as e d o n prev i o us
tra d it i on a l m e th o ds . A w e ll - s tr uc t ur ed c har a c ter iz at i o n of s y s t e m r eq u ir em e nts c an
iv

c om m u nic a te ef fec t iv e ly a mo n g a na ly s ts , d es i gn ers , us e rs , a nd pro gr a mm ers

s i gn i fic a nt ly . Tr ad i ti o na l pr i mar y r e qu ir e m en ts s tr uc tur i n g t oo l s inc l u de DF D,
s truc tu re d En g l is h , d ec is i o n t ab l es , d ec is i on tre es , a n d E - R d i agr a ms . R AD an d
O O A ar e e me r g i ng t o day t o h el p s tr ea m l in e an d s h ort e n t h e ov era l l S D LC . R A D
Un

SD L C, o n t h e ot her h a nd , c om b i nes t he tr ad i ti o na l a na ly s is p has e an d a po rt i on o f

th e d es ig n p has e i n to a s i ng l e s t ep .

Wh at i s Re qui r em ent s?
A r e qu ir e me n t is a n ec es s ar y as p ec t of a n ew s y s t em w h ic h m i gh t i nc l u de d a ta
proc es s i ng or c a pt ur e, b us in es s ac t iv i ty c o ntr o l, k n ow l e dg e pr od uc ti o n, a nd
s up erv is or s u pp or t.
ity

Th e pr oc es s o f d et er m in i n g r e qu ir e m en ts e nt a i ls s t udy i ng th e ex i s ti n g s y s t em a nd
ga t her i n g de ta i ls t o d et er m in e wh a t t h e pr e req u is it es ar e, h o w it ap p ea rs t o w ork ,
or wh er e a dv a nc e me nt s m us t be ma d e.

Si gnif i ca nt Init i at i v e s in t he Pe r s ev e ra nc e o f Req ui r em ent s

m

Anti c ipa tion of R equ i re m ent s

• I t pr ed ic ts s y s te m c h ar ac t er is t ic s b as e d o n pr ev io us ex p er ie nc e, s uc h as s pec i fic
)A

pro b l ems or fe a tur es a nd s y s t e m r e qu ir e me n t s f or a n ew s y s t e m.

Th is c ou l d r es u lt t o an a ly z at i on o f as pec t s t ha t an in ex per i e nc ed a n a ly s t w ou l d
ot h erw is e ov er l ook . H ow ev er , if s h ortc uts a re o b ta i ne d an d pr ef e renc e is in i t ia te d
dur i n g th e i n qu ir y , m a nd a te es t im a t io n m i gh t w e ll be c o m pr om is e d.
(c

Inv e sti gat ion of R equ ir em ent s

 • It is r es e ar c h in g t h e ex is t i ng m od e l an d d es c r ib i n g i ts c har ac t e ris t ic s fo r
fu tur e us e.

e
• A na ly s ts us e f ac t - fi n d in g s tr at e g ies , pr ot oty p in g , a nd c om p ut er - as s is t ed
to o ls t o d oc u m en t a n d des c r i b e s y s t e m f e at ur es at th e h ear t o f s y s t e m

lin
an a ly s is .

Req ui r em ent s De s c ri pt ion

• It c o ns is ts o f d at a a na ly s is t o d et er mi n e t he r eq u ir em e nt s p e c if ic at i o n,

On
fu nc t i o na l ity of d es c r i pt i ons f or t he n e w s y s te m, an d c l e arl y s t at i ng ho w
muc h i n for m at i o n r eq u ir em e nts w o ul d b e m a de av a i l ab l e.
• It e nt a i ls th e ex am i n at i on of f ac t ua l d a ta , t he u n de rs t an d i ng o f t h e k ey
pre r e q uis i tes , a nd t h e c l as s i f ic a t io n o f r e qu ir em e nt - f ul f i ll m e nt s tr at eg i es .

Te chn iqu es f o r G at he rin g Inf o rm at ion

ty
Th e pr i m ar y g o a l of i nf or ma t io n ga t h er in g me t ho ds is t o as c er ta i n a n
org a n iz a t io n's i nf or ma ti o n r e q ui r e m en ts , wh ic h ar e t he n ut i l is e d by an a ly s ts to
org a n is e a c onc is e S R S t ha t th e us er u n ders ta n ds .
Th e op t i mu m S R S d oc um e nt s h o u ld -
•
• si
be c om pr eh e ns iv e , d ef i ni t e an d j ar g on fr e e.
De f in e d, or g an is at i o na l, s tr a te g ic , a n d fu l f i ls tac t ic a l i n for m at i on ne eds .
er
• res o lv e a ny d is agr e em en ts t ha t m ay ar is e be tw ee n us ers a n d an a ly s ts .
• em p l oy s gr ap h ic al ai d s t o fac i l it a te c o m pr eh ens i o n an d d es i gn .

Th ere are n u m er o us m et h ods f or c o l l ec t i ng d at a -

iv

Int er vi ew ing
Un

A s y s te ms an a ly s t c o l l ec ts i nf or ma t io n fro m i nd iv i du a ls or gro u ps by in t erv ie w in g

th e m. T he an a ly s t c o u ld b e pr o fes s i o na l , p res c r ip t iv e , p o l it ic al , or c as ua l , as t he
ef fec t iv e n es s of an i nt er v ie w is de p en d e nt o n t h e a n a ly s t's ex p er tis e as an
i nt erv ie w er .

Th ere are t w o ap pr oac hes t h at c a n b e t ak e n

ity

• Uns tr uc t ur e d I nt er v i e w - Th e s y s t e m a na ly s t u nd er tak es a qu e s ti o n - a n d-
ans w er s es s io n t o g at her s t a nd ar d s y s t em i nf or ma t io n .
• Str uc tur e d I nt er v i ew - I t i nc lu d es v ar i ous b a s ic q ues t io ns t o w h ic h t h e us er
mus t a ns w er i n e i th er a c l os e ( obj ec t iv e) or op e n ( d es c r ip t iv e) s ty l e.
m

The B en ef it s of Int e r vi ew ing

• Th is t ec hn i qu e is of t en th e m os t ef fec t iv e me t ho d of ga i n in g q ua l i ta t iv e
)A

da t a.
• It is b e ne f ic i a l f or t h os e wh o are u na b le to ef fec t iv e ly c om m u n ic a te i n
wri tt e n fo r m o r wh o d o n ot hav e t he o p po rt un ity t o f i nis h a q u es t i on na ir e.
• I nf or ma t io n c a n b e q u ic k ly af f ir me d a nd c r os s - c hec k e d.
• It is c a p a bl e o f d ea l i n g w it h c o mp l ic at e d s u bj ec ts .
(c

• It is s im p l e to d is c ov er k ey pr o b le m s by s o l ic it i n g op i n io ns ;
• It is s im p l e to c o m pr e he n d m a in c h a l le n ges by pr oc ur i n g op i n i ons ;
 • It c ov er s u p t h e o p en i n gs i n th e r a ng e s of c o nf us io ns an d red uc es
for thc o m in g d i ff ic ul t ie s .

e
Q ue sti onn ai r es

lin
S uc h a t ec hn i q ue w ou l d b e us e d by a na ly s ts to c o l l ec t k no w le d ge ab o ut
v ar ie d s y s t em is s u es f r o m a l ar ge n u mb er o f p eo p le . Q u es t i on n a ir es are c l as s if i e d
i nt o tw o ty pes .

• O pen - en de d Q u est io nna ir e s - T h is ty p e o f qu es ti o nn a ir e inc l u des qu es ti o ns

On
th at c o u ld b e q uic k ly a nd ac c ur at e ly be c ons tr ue d. it c o ul d i nv es t i ga t e a
d if fic u lty an d c o ntr i b ut e to a par t ic u l ar s o l ut i on .
• Clo s ed - end ed Q ue st i onna i re s - It c o nt a i n qu es ti o ns wh ic h are u s ed w h en
th e s y s t ems a n a ly s t e f fic ac i ous ly rec or ds a l l mu t ua l ly ex c l us iv e r es po ns es .

Ben ef its of Q u e st io n nai r e s

ty
• It is v e r y ef f ic ac i ous i n i nv es t i ga t in g n o n - c o- loc at e d us ers ' i n te res ts ,
be h av ior s , e mo t io ns , a nd op i n io ns .
• It is b e ne f ic ia l t o fi n d ou t h o w m a ny p eo p l e i n a s p ec if i ed p op u l at i on

•
si
s up p or t o r op p os e of a p art ic u l ar c ha rac ter is t ic o f t h e pr op os e d mo de l .
B ef or e giv i n g an y s p e c if ic d ir ec t i o n t o t he s y s te m pr oj ec t, i t is us ef u l to
as c er t ai n t h e ov er a l l o p in i on .
er
• It is m or e d e pe n da b l e a nd ens ur es t he a no ny m ity of c o m m en t s a n d
fe e db ac k .
• It is a de q u at e f or s e lec t in g c re d i b le da t a a n d pr ov id i n g s ta t is t ic a l
ev id e nc e t h at c o u l d b e e m ai l e d or m a i le d.
iv

Re vi ew of R ec or ds , P ro ce du re s, and Fo rm s
Un

A n a na ly s is o f av a i la b l e d at a, me t ho ds , an d f or ma t io n a i ds in ge n era t in g ins i g hts

i nt o a fra m ew or k by a na ly s i ng t h e ex is t i ng s y s t e m's a bi l i ti es , pr oc es s es , or
ac t i ons .

Ben ef its
ity
m
)A
(c
 • It e na b l es c o ns u mer s to ac c es s s o me i n for ma t io n a bo u t t h e org a n iz a t io n or
proc es s es b ef or e i mp o s i ng o n o th ers .

e
• It a ids in t he d oc um e n ta t io n of o p era t io n a l p roc es s es i n a br ie f s p an o f ti m e
bec a us e pr oc es s h an db o ok s a n d s tr uc t ur e s c h ar ac t er is e t he l a y ou t a n d
fe at ur es of t h e ex is t i n g ar r an g e me nt .

lin
• It c o u ld pr ov i de a s o li d k n ow l e dg e o f t h e tra ns ac t i ons ha n dl ed in t h e
org a n is a t io n , as w e l l as r ec o g n is e i n for m at i on f or c o mp ut a ti o n an d ev a l u at e
ef fec t iv e n es s .
• Th is c o u l d as s is t a n an a ly s t i n un d ers t a nd i ng t he s y s te m's pr oc es s es t ha t
mus t b e e nd or s ed .

On
• It a ddr es s es t he s it u at i on , t he p arts t h at are i mp ac te d, a nd t h e d es ire d
ou tc om e.

O bs e rv ati on
It is a w ay o f c o l l ec t i ng d at a t ha t i nv o lv es n ot ic i ng a nd s tu dy in g p eo p le ,
oc c ur re nc es , a n d o bj e c ts . T he an a ly s t v is its t h e or ga n is at i o n t o p erc e iv e h o w th e
c urr en t s y s te m w or k s an d t o c o mpr e he n d th e s y s te m's r eq u ir em e n ts .

ty
Ben ef its
• It is a s t r a i gh tf or war d way t o c o l lec t d at a.

si
• It is us e fu l wh e n t h e a ut h e nt ic ity of th e da ta c o l lec t ed is c a ll e d in to
qu es ti o n, or w h en t he c om p l ex i ty of c ert a i n as p ec ts o f t he s y s te m pr ev e nt s
c l ear ex p l an a ti o n by e nd - us ers .
•
er
It ge n er a t es qu i t e v a li d a nd pr ec is e i nf or ma t i on
• It y i e l ds a ll t h e fac e t o f r ec o rds t h at ar e i ns u ff ic ie n t an d o ut m o de d.

Joi nt App li c at io n De ve lop me nt ( J AD)

iv

It is a nov e l I BM t ec h n iq u e th at us es or g an is ed a n d i nt e ns iv e w o rk s ho ps t o br i ng
ow n ers , us er s , a n aly s t s , d es i g ne r s , a n d b u i l ders to g et h er to d ef i n e a nd des i g n t he
s y s te m. J AD - tr a in e d a na ly s ts wh o h av e s om e s p ec i a l is e d s k i l ls s e rv e as w ork s h o p
Un

fac i l it at ors .

Ben ef its of J A D
• I t k ee ps c os ts d ow n by s u bs ti t ut i ng l e n gt hy tr ad i ti o n al i n terv i ew pr oc es s a n d
fo l l ow - u p me e ti n gs .
It is b e n ef ic ia l in c o r p or a t e s tr uc t ure t h at e n dors es m u tu a l c o nf l ic t res o l ut i o n.
• Pr om o tes p r o fes s i o n a l r e la t io ns h ip a m o ng work ers a t a l l l ev e ls .
ity

• T h is c o ul d r es u lt t o t he c r ea t iv e dev e lo p m e nt o f a d es ig n ; •
• I t E n ab l es ex p los iv e gr o wt h a n d e nh a nc es au t hor i ty of in f orm a ti o n m an a ge m en t.

S ec ond ar y R e se a rc h or B ac kg ro und R ea di ng
m

By ac c es s in g t he g l ea n ed in f orm a ti o n, t h is proc es s is f re q u en t ly us ed f or
i nf or ma t io n g at h er in g. It c on ta i ns s uc h a n or i gi n a lly c ol l ec te d i nf or ma t io n fr o m a ny
for e ig n or do m es t ic s o ur c e t h at t h e m ark e t er h as us ed .
)A

Ben ef its

• It is mor e e as i ly ac c es s i bl e g iv en t h e a bu n da nc e of t he in t ern e t.
• It pr ov i d es c r i tic a l i nf or ma t io n w it h r e d uc e d m o ney a n d ef f ort .
•
(c

It b eh av es as p i on e er t o pr im ary res e arc h an d l i n es up t h e e mp has is o f

pr im ar y r es e ar c h.
 • It is us e d by th e r es e ar c h er t o c o nc l u d e if t he r es e arc h is w ort h i t as it is
av a i l ab l e w it h pr oc ed u r es us ed a n d is s u es i n c o l l ec t i ng t h em .

e
lin
Fe as ib ili ty A na ly s is

Fe as i b i l ity s t ud i es a r e pr e li m i nary inv es t i ga t io ns t ha t as s is t ma n ag e m en t i n

de t erm i n in g wh et h er a s y s t em s tu dy is f e as ib l e f or dev e lo pm e nt or no t. It
rec o g n is es t he p ot e nt i al o f dev e l op i ng t he pres e nt fr a me work , c r ea t in g a wh o l e

On
ne w s y s t em , a nd pr o d uc in g s tr ea m l in e d f ore c as ts f or f urt h er s y s te m d ev e l o pm e nt .

Ben ef its

• It is us ed t o s k e tc h ou t t h e pr o b le m an d d et er m in e w h et h er a v i ab l e or s u i ta b l e
s o lu t io n c a n b e fo u nd .

ty
• T h e pr im ar y g o a l of a fe as i bi l i ty s tu dy is t o d et er mi n e th e s c o p e of t h e pr ob l em
rat h er th a n to s olv e i t.

si
•Th e o u tc o m e o f a f eas i b i li ty a n a ly s is is th at a for m a l s y s t em pro p os al ac t as
dec is i on d oc u m e nt th a t i nv o lv es th e c o mpr e he ns iv e c h ar ac t er is t ic s an d fe at ur es of
th e pr op os e d fr a m ew o r k .
er
2. 1. 2 . Req ui r em ent s def init ion
iv
Un
ity
m
)A
(c
 e
lin
On
ty
si
er
iv
Un

1. D efi ne Fu nct ion al Req ui r em ent s

De f in i ti o n o f r eq u ir em en ts is b o th a n ar t a nd a s c i enc e. It n ec e s s it a tes a na ly s ts
work i n g d ir ec t ly wi t h c l ie n ts an d dr a wi n g on t h e ir c o mm u n ic a t i on an d t ec h n ic a l
ab i l it i es t o unc ov er u nd er p in n i ng c l ie n t re q u ire m en ts t h at a s y s t em s o l ut i on c ou l d
ity

res o lv e. O ne o f t h e mos t p ot en t ia l m is tak e is at t em p ti n g to " l e ap t o a s o lu t io n"

wi t ho ut a t h or o u gh k no w le d ge of t he c us t om er's op er at i on a l is s ues a n d b as ic
ne e ds . R eq u ir em e nts an a ly s is is , by d ef i ni t io n , a n ex pl or at or y an d dy na m ic
proc es s . Cus t om er s fr eq u en t ly c o ul d n o t s uf fic i e nt ly s t at e wh a t th e y tr u ly ne e d u nt i l
th ey s e e wh a t th ey h a v e r e qu es t e d i n pr i or d em a nds it er at i ons w i t h a n IT t ea m .
m

As prev i o us ly m en t i o ne d , a n it er at iv e pr o j ec t s t ra te gy m ig h t w e ll b e re q u ire d ,
wh er e in r e pe a te d s e qu e nc es o f R e qu ir e m en ts De f in i ti o n, Sy s t em D es ig n, a n d
Sy s t e m B u il d p has es wo u l d pr ogr es s iv ely de f in e a nd b u i ld t h e s o lu t i on i n a n
)A

it er at iv e or s p ir a l a ppr oac h .

W h il e c r e at i n g a pr oj e c t - s p ec if ic pr o pos a l, k ee p i n m i nd t ha t th e W ork Br eak d ow n

Str uc tur e fo r s uc h a s ta g e d o es no t al w ay s por tr ay t h e ord er i n w h ic h t he pr oc es s
an d t as k s mus t b e c om p l et e d on a s p ec if ic pr oj ec t. B ec a us e t he R e qu ir e me n ts
De f in i ti o n P has e is it er a t iv e an d ex p lor a to ry i n n at ur e, i t is re c om m e nd e d th at
(c

s ta g es 1 - 4 ( De f in e F u nc t i on a l R e qu ir e m en ts , D ef i ne N on - Fu nc t i o n a l R eq u ir em e nts ,
an d C on d uc t Ex is t i ng S o l ut i on I nv en t ory a nd G ap A na ly s is ) b e ov er l ap p ed a n d
ex ec u te d c o nc u r r e nt ly wi t h a f in is h - t o- fi n is h r e li a nc e on t h e pu b l ic at i on .
 S ol u ti o n r eq u ir em e nt s ar e c l as s if i e d a s " Fu nc t i on a l" or " No n - F un c t i on a l."
Fu nc t i on a l r e q u ir e m e nts de f in e w h at t h e s o l ut i o n m i gh t b e a b le t o do . N on -

e
Fu nc t i on a l r eq u ir em e nts ar e t hos e t h at are r e q uir e d f or t h e s ol u ti o n t o be
i nc or p ora t ed an d e n d or s e d b u t do no t c h a rac t er is e th e i n na t e b us in es s is s u e or
op p ort u n ity t o b e r ec t if i e d. F u nc t i on a l r eq u ir em e nts ar e d et er m i ne d i n a m a nn er

lin
th at e n ab l es th e m t o be in d ep e nd e nt o f a s pec i f ic t ec hn o l og ic a l i mp l e me n ta t io n s o
as t o b et t er c om pr e h en d t he c o ns um er's pro b l em a tic are a b ef o re for m u la t in g a
re me dy . T h ey c h ar ac t er is e th e a b i l it i es a n d f ea tu res of t h e n e c es s ary s o lu t io n
rat h er t h an s p ec if ic s of tw ar e f e at ur es . F o r ex am p l e, a F unc t io na l r e qu ir e me n t
m ig ht be : “ Th e s y s t e m s h a ll ac c e pt a s tu de n t r e gis tr at i on f or a c l as s ” or “T he

On
s y s te m s h a l l au t om a ti c a lly r ou t e th e a pp rov a l of a purc h as e r eq u i s it i o ns to a pre -
des i g na te d s i g n in g a ut hor i ty fo r a p art ic u lar un i t”.

Dur i n g t h e a na ly s is pr oc es s , r e qu ir e me nt s m us t al w ay s b e e mp h as is e d . It is
ac c o m p l is h e d pr i m ar i l y by c at e go ris i n g an d as s es s i n g ev ery r e qu ir em e nt w it h th e
he l p o f c ons u m er i ns ig ht a n d th e re q u ire m en t 's c os t - be n ef i t r at i o. A s a n i ns t a nc e :

Req ui r em ent

ty
De s cr ipt ion
P rio r ity

A “ s h ow s to p per ” re q u ir em e nts , w i th o ut w hic h t h e s o l u ti o n is

Mus t H av e

si
of li tt l e us e or b e ne f it

De m ons tr ab l e e ff ic i en c y , c os t s av in gs , or i nc o m e pr o duc i ng
Pr ef err ed
er
r eq u ir e me nt

O pt i o na l In ta n g ib l e or s m a l l b e ne f its o n ly ; c os t > = be ne f it)

iv

Ca nc el To o c o mp l ex or c os t ly , or n o v a l u e ad d

W he n a n aly s i n g IT s o l ut i ons f or a s pec i f ic c ons u m er is s ue , t hre e m aj o r

Un

c ons i d era t io ns s h ou l d b e t ak en : Pr oc es s , Da ta , a nd B e hav i or . Th e w ork ac t iv i ty

an d s t eps t h at t h e s o l ut i on mus t s u pp or t ar e r ef err e d to as t h e p roc es s . Th e t er m
" da ta" r e fer s to t he i nf or ma t io n an d f ac ts t ha t ar e r eq u ir ed to c arry ou t t h e pr oc es s .
Th e t er m " b e hav i o ur " r ef er s to t he pr oc es s 's a n im a ti o n an d i nt erac t io n w it h t h e
proc es s 's ac to r s . T h e s e el e m en ts are i d e n ti f ie d a n d a re i nt err e l at e d in ev ery IT
s o lu t io n, bu t th e ir i m p or t a nc e w i l l v ary d ep e nd i n g on t h e es s e nc e of t he c us t om er
de m an ds . A F ac u l ty La d de r R ank i n g p roc es s , a St u d en t R e g is t rat i on pr oc es s , a
ity

fac i l ity m on i to r i n g p r oc es s , an d a D a ta Ma rt or D ec is i on S u pp or t Sy s t e m, for

ex a m p le , w i l l a l l d i ff e r in th e a m o un t o f d at a, pr oc es s , a n d b e hav i o ur i nv o lv e d.
W he n c ons i d er in g ac tiv i t ies i n t h is p h as e, th e an a ly s t m us t us e th e ir bes t
j ud g em e nt t o d ev el o p a pr oj ec t - s p ec if ic a p pro ac h t ha t a dd res s e s t h is v ar i at i on in
th e pr ob l e m d om a i n.
m

▪ Th e an a ly s t mus t a ls o c h oos e t he me th o d fo r g at h e r in g d at a t ha t wi l l b e us ed
to c a p tur e r e q u ir e m en ts as a f i n al c o ns id er at i on . C us t o me rs m ay b e
i nt erv ie w ed in d iv id u a l l y , i n s m a ll gr ou ps , du ri ng f ac i l it at e d w ork s es s io ns , or
)A

i n s om e c o mb i n at i on of t hes e m et h ods . T h e ex ac t ap pr o ac h a n d s e qu e nc in g
of wo r k m us t b e de t er mi n ed a n d a gr ee d up o n w i th t he c l i en t i n or d er t o
m in i m is e d is r u pt i o n to t he ir da i ly o p era t io ns w h il e m ax i m is i n g p art ic ip a ti o n of
k ey s t ak e h ol d er s a n d s u bj ec t ma tt er ex p er ts . Bec a us e th e S o l ut i on C o nt ex t
Di a gr am s e r v es as a b o un d ary a nd b as e l i n e f or t h e an a ly s is ef for t, it is
s tro n gly adv is e d th at i t b e c r e at e d i n a f ac il i ta t ed w ork s es s i o n w it h th e
(c

l arg es t nu m be r of c us t om er re pr es en ta t iv es an d t he Pr oj ec t S po ns or pr es e n t.
 ▪ Conf ir m t he a va il abi lit y of User Sub j ect Ma tte r Ex pe rts fo r
Req ui r em ent s De f in it ion.

e
Th e f ir s t c r it ic a l s t ep in de f in i ng r e qu ir e m en ts is i de nt i fy in g t h os e pe o p le
wh o u n der s t an d t h e pr ob l e m d o ma i n a n d c a n s p e ak w it h a ut h or ity a b o ut t h e
c l ie n t's an d c us t o m er c o ns t it u enc y 's ne e ds . Wh e n a s ol u ti o n wi l l s erv e a

lin
l arg e an d div er s e s e t of c us t o mers , it w il l b e n ec es s ary t o c o l l ab ora t e w it h
c l ie n t l e ad er s h ip t o i de n ti fy a s ubs e t o f c us t o mers wh o c a n ad e qu a te ly
rep r es e nt t he la r g er s et o f c us to m ers wh o w i l l us e t h e IT s o l ut i on .

On
▪ Cr e at e a So lut ion Co nt e xt Di ag r am
It is nec es s ar y t o c r e at e a gr a p hic a l re pr e s en t at i on of t he i nt er fac es a n d
bo u nd ar i es o f t h e pr ob l e m ar e a or pr oc e s s t o be a na ly z e d. T he c o nt ex t
d ia gr am mus t d e pic t a l l k n ow n a n d re l e v an t ex ter n a l a ge nts or ac t ors
(or ga n iz a t io ns , s y s t em s , r o l es , ex t ern a l p roc es s es , a n d s o on ) as we l l as th e
maj or i n for m at i on s tr ea ms i n a n d ou t o f t he a re a f or th e e x c ha n ge of
i nf or ma t io n or r es p o ns e to ev e nts .

ty
• Cr e at e a P ro ce s s Mo del
Ex c el l e nt tr e at is es o n th e d ev e l o pm e nt of pr oc es s mo d e ls h av e be en w ri tt e n,
an d a c o m pl e te ex pl a na t io n is f ar be y o nd t he p urv ie w o f t h is h a nd b ook . T he

si
go a l o f c r e a ti n g a pr o c es s m o de l is t o c o m p reh e n d th e ef for ts b e i ng m ad e as
we l l as t he d ut i es of th e nu m er ous ac t ors in t he pr oc es s . Fu nc t i on a l
Dec o mp os it i o n D i a gr a ms an d Cr os s - F unc t i on a l W ork f l ow m o d el s m us t b e
dev is e d w it h c us t o me r s ubj ec t m at t er ex p ert s i n c as es wh er e t h e p roc es s f l ow
er
as p ec t of t he pr o b l e m d om a i n is s i gn i f ic an t. A F u nc t i on a l D e c om p os it i on
Di a gr am may b e s u ff ic ie n t i n s i mp l er c as es to par t it i on , d ec o mp os e, an d
des c r i b e th e ac t iv i t ies o f t h e ar ea u n d e r s t udy . T h e ex t e nt o f a po t en t ia l IT
s o lu t io n is c a lc u la te d by a na ly z i ng t h e ex i s ti n g s ta te pr oc es s m od e l to t h e
v i ab l e v is i o n o r " To B e" pr oc es s m o de l th at th e c l ie n t ex p ec ts th e ne w IT
iv

s o lu t io n t o s up p or t .

• Cr e at e a Hig h - L ev el Dat a Mo de l
Un

To d ef i ne t h e c us t o m er 's d at a n ee ds a n d maj or b us in es s ru l es , a n e nt ity

re la t io ns h ip d i agr a m ( ER D) at t h e c o nc ep t u a l lev e l s ho u l d be c r ea t ed . T h is
s ho u l d inc l u de t he m aj or f u nd a m en ta l a n d as s oc ia t iv e e nt i ty ty p es , as w e l l as
th e ir pr i mar y a ttr i b ut e s a nd re l a ti o ns h i ps . T h is s ho u ld b e a c o nc ep t ua l l ev el
ER D t h at is n ot d e p en d en t o n a n y p ar t ic u l ar p hy s ic a l d at a bas e
i mp l e me nt a ti o n. Its p r i mar y g o a l is t o en ab l e v a li d at i o n o f bu s i nes s d at a
req u ir e me nts , t er ms , an d b us i nes s r u les , a s w e l l as t o pr ov i de f ee d bac k to
des i g ner s a nd d at ab a s e a d m in is tra t ors w ho w i l l bu i l d m or e d et a i l ed l og ic a l
ity

an d p hy s ic a l d a ta mo d e ls for im p l em e nt at i o n . I f t he c u rre nt s it u at i on inv o lv es

an ex is t i ng IT s ol u ti o n , ex is t i n g c o nc e p tu a l d at a m o d els fro m th e s o lu t io n c a n
be r e us e d or r ev er s e e n g in e ere d . Th e d at a m o de l c o u l d a ls o be us e d t o
de f in e fr es h b us i nes s r e gu l at i o ns an d d at a re qu ir e m en ts f or t he pr op os e d
s o lu t io n.
m

▪ Cr e at e U s e Ca s e s
Us e Cas es fac i l it a te t he tr ans i t io n fr o m t h e proc es s m od e l t o th e h u m an -
s y s te m in t er ac t io n t h at wi l l be s u pp or te d by t he IT s ol u ti o n. H i g h - lev e l
)A

" bus i n es s " Us e Cas e s th a t c h ar ac t er iz e t he m aj or in t erac t io ns b et we e n

us er s a n d th e s o l ut i o n s ho u l d be d ef i n ed . If a c ros s - f unc t io n a l w ork f l ow
mo d e l h as b e en c r ea te d, c an d i da t e Us e Cas es c a n b e id e nt i f i ed at t h e
po i nts wh er e c us t om e r r o les i nt er ac t wi t h t he s y s te m to c o mp l et e a tas k .
J ud g me n t m us t b e u s ed to e ns ur e t h at t he Us e C as es c an b e v a l i da te d
d irec t ly w it h th e c us to m er w h i le a ls o s er v i ng as a f ou n da t io n f or t h e
(c

A pp l ic at i on Dev e l op er s t o d ev e lo p mor e d et a i le d Us e C as es d ur in g t h e
Sy s t e m D es i g n P h as e .
 Def in ing Fun ct i on al Req ui r em ent s

e
As a res u lt of t he pr ec ed i n g ac t iv it i es i n t his s t ag e , f u nc t i o na l re q u ire m en ts w i ll be
d is c ov er ed t hr o u gh a c om b i na t io n of c o nv er s at i ons w it h c us t o mer s an d a na ly s is of
th e c o nt ex t m o de l , p r oc es s mo d e ls , d at a mo d e l, a n d us e c as e s . T he B us i n es s

lin
A na ly s t s i mp ly d oc um en ts th es e Fu nc t i o na l R eq u ir em e nts d ur i ng t his ac t iv ity in
pre p ar at i on for m or e f or ma l r eq u ir em e nts s p ec if ic at i on , gr o up i n g, an d r ank i n g l a ter
i n th e s t ag e.

2. Est ab li sh No n - Fun ct i ona l R equ ir em ent s

On
No n- f u nc t i o na l r e q ui r e me n ts i nc l u de al l o f th e c ha rac te ris t ic s th at t he s o l ut i o n m us t
hav e i n or der t o b e u s ab l e, f as t , r e l ia b l e, s ec ur e , an d a pp e a li n g to us ers . D ur i ng
th is s t ag e , th e t ea m wi l l i d en t ify , c at e go ris e, a n d pr io ri t is e t h e v a r io us ty pes o f
req u ir e me nts .

• Det e rm in e t h e R equ i r em ent s f or th e S olut i on T e chno log y P l atfo rm

ty
If th e tec h no l o gy pl a tf or m r e q u ir e d t o s u p po rt t h e s o l u ti o n is k no w n at th is p o in t, i t
s ho u l d be s p ec if i ed . It is ex pec t ed t ha t i n m any c as es , t h e s ol ut i on w i l l be a n
ex t e ns i o n of a n ex is ti ng I T S er v ic e , an d t hu s t he t ec hn o lo gy p l at f or m r eq u ir em e nts
wi l l b e k n o wn . D ur in g th is ac t iv ity , c urr en t IT Arc h i tec t ure s t a n dar d s s h o u ld als o b e
c ons i d ere d .

• E va lu at e T e chno log y V endo r (CO T S) si

er
▪ If a C o mm er c i a l O ff - Th e- Sh e lf (C O T S) s o l ut i on is b ei n g c o ns i der e d, its
tec h no l ogy p la tf or m mus t b e as s es s e d a g a ins t f unc t io n a l r e qu i re me nts i n
th is ac t iv i ty as w el l as t h e I T Arc h i tec t ure . F ur th er mo re , t h e v e n d or's
fi n anc i a l v i ab i l i ty an d qu a l if ic at i ons (r ef er en c es , e tc .) s ho u ld be a s s es s e d .
▪
iv

De f in e t he r eq u ir em e nts f or q u al i ty , de p en da b i l ity , av ai l a bi l i ty , a nd s erv ic e

l ev e l .
▪ Th e te a m s h o u ld doc um e nt t h e s o l ut i on 's ex p ec ta t io ns i n t er ms o f s y s t e m
qu a l ity , r el i a b il i ty , a v a il a b il i ty w i n do ws , an d ov era l l IT S erv ic e lev e l
Un

req u ir e me nts .
▪ Def in e P e rf o rm an ce Req ui r em ent s
▪ A ny s y s te m p er for m anc e a n d v o lu m et ric i n for m at i o n (r es po n s e t im e ,
tra ns ac t i on v o lu m es a nd c y c l es , c onc urr en t us ers , d at as et s iz e a nd gr ow th
rat e, ar c h iv a l n ee ds , e tc .) th at c a n b e us e d t o d ef i n e t h e p erf or m a nc e n ee ds
an d m et r ic s f or t h e s o l ut i on s ho u ld be c a p tur ed an d es ti m at e d by t he t e am .
▪ Det e rm in e S ec ur it y, Leg al , R egul at or y, an d Co mp li an ce R eq ui r em ent s
ity

▪ A ny s ec ur ity , l eg a l, r eg u l at ory , a n d c o m p l ia nc e r eq u ir em e nts s ho u l d b e

doc u me n te d a nd v er if i ed w i th t h e c l ie n t, a nd s h ou l d b e c o mp ar ed t o F e der a l,
St a te , U C, an d U C S C IT c om p l ia nc e p o l i c i es . T he pr oj ec t t ea m s h o ul d
c ons u lt t h e S ec u r i ty D es ig n P ac k ag e f or g ui da nc e o n po l ic i es th at w i l l gu i d e
s y s te m a nd da t a c l a s s if ic at i o n, t he re by i de n ti fy in g s ec ur ity r e qu ir e me n ts
m

th at mus t b e m et w it h i n th e s y s t em des i g n.
▪ Det e rm in e t h e IT B ud get Co nst r ain ts on th e So lut ion
▪ If t he s o l ut i o n has any ex is t in g b ud g et c o ns tr a i nts , t h es e s ho u l d be
i de nt i f ie d i n th is ac t i v ity t o g ui d e d ec is i o n m ak in g a nd t h e ge n era t io n o f
)A

s o lu t io n o pt i o ns . T he te a m s h ou l d a ls o as s e s s t he f e as ib i l ity of m ee t in g t he
s o lu t io n r e qu ir e me n ts i n l ig h t of th e c l i en t's f in a nc ia l c o ns tr a in ts an d
ex p ec ta t io ns .
(c
 Non - F unc t io na l Re qu ir em ent s M ust B e Do cum ent ed

e
Th e Bus i n es s A na ly s t d oc u me nts t h e N o n - F unc t io n a l r eq u ir em en ts d is c ov er e d
dur i n g th is s t a ge .

lin
3. Co ndu ct an i nv ent or y o f ex i st in g sol uti ons a nd a ga p an al y s is .

• O rg an iz e Ex i st in g So lut i ons i n Re l atio n to R equ ir e men ts

Th e fu nc ti o na l an d n o n - f u nc t i on a l re q ui re m e nts s h o u ld be ma p pe d a g ai ns t ex is t i n g

On
IT s erv ic es a nd s o lu t i ons to s ee if an ex is t i ng s o lu t io n c a n b e r e us e d , p art i a lly or
c om p l et e ly , t o m ee t t h e n ee ds o f th e c l i en t.

• Ide nt if y Fun ct i on al G ap s in t he Sol uti on

If a pr e - ex is t in g s ol u t i on th at p art i al ly m ee ts th e r eq u ir em e nts is d is c ov ere d , t he

s hor tc om i n gs or g aps i n th e s o l ut i on s ho u l d be no te d a n d we i g ht ed f or i m por ta nc e.

ty
• Cr e at e St rat eg i es t o Clo s e So lut ion G a ps

Dur i n g t h is ac t iv i ty , t h e t e am w i ll d ev is e s tr a te g ies a nd a p pro ac hes to f il l fu nc t io n al

si
ga ps b et we e n t h e r e q u ir e m en ts a nd t he ex i s ti n g s ol u t io n. T hir d - p arty " b o lt - o ns " o r
ad d it i o na l m o du l es f o r s o ft war e p ac k ag e s o lu t io ns , us e o f ot h er ex is t i n g s o lu t io n
c om p on e nts , o r c us to m d ev e lo p me n t a n d i nt erf ac e d ev e lo p me n t are ex am p l es o f
th es e s tra te g i es .
er
• Sp e cif y t he Sol ut io n G ap R equ i re me nts

Th e fu nc t i o na l g a ps i n th e s o l ut i on a n d th e s tr at e gi es f or a ddr es s i ng t he m s h o u ld
iv

be r ef i n ed i nt o a s et o f s o l ut i on ga p r eq u ir e me n t s t at e me nts th a t wi l l be i nc l u de d in
th e f in a l R eq u ir em e nts S p ec if ic at i on doc u me nt .

4. Sp ec ify R eq ui r em e nt s
Un

Th e fu nc t i o na l g a ps i n th e s o l ut i on a n d th e s tr at e gi es f or a ddr es s i ng t he m s h o u ld
be r ef i n ed i nt o a s et o f s o l ut i on ga p r eq u ir e me n t s t at e me nts th a t wi l l be i nc l u de d in
th e f in a l R eq u ir em e nts S p ec if ic at i on doc u me nt .
▪ Req ui r em ent s Com pi l at i on
Ev en i n a m ed i u m - s i z ed pr oj ec t, th e nu m ber o f re q ui re m en ts c ap t ure d c an b e
d if fic u lt to ma n ag e a nd ev a l u at e w it h t h e c li e nt t e a m. T o a i d in t h is pr oc es s ,
req u ir e me nts s h ou l d be s p ec i f ie d in a c o n s is t e nt , s tr uc t ur ed m a nn er t o f ac i l it at e
ity

ma n ag e m en t a nd ev a l u a t io n. T o h el p w it h t his ef for t, a r eq u ir em e nts t e mp l at e

bas e d o n th e Vo l er e R e qu ir e me nts S p e c if ic at i o n Te m p la t e f ro m t he A t la nt ic
Sy s t e ms G u i l d was c r e at e d.
▪ Req ui r em ent s mu st b e e va lu ate d and ran k ed.
Th e s et of r eq u ir e m e n ts s h o u ld b e ev al u at e d an d pr i ori t is ed b as e d on us er pr i or ity
m

an d c ri t ic al i ty .
▪ Imp le me nt a t io n G rou p a nd P ha s e Re qui r e ment s
S om e r e q uir e m en ts wi l l s h ar e lo g ic a l d ep e nd e nc ies a n d af f i ni ty . Wh e n
c ons i d er in g t h e s c o p e of th e i ni t ia l s o l ut i on to b e i m p le m e nt ed , t h e t e am s h ou l d
)A

us e t his i n for m at i o n, a lo n g w i th th e r e qu ir e me n t ra nk i ng i nf or m at i on , t o gro u p

an d p h as e th e r eq u ir e me n ts fo r i m pl e m en ta t i on s eq u enc e a n d p erf or m a tr a de -
of f a na ly s is . A t t his po i nt , a l l k n ow n re q ui re me n ts s h ou l d b e c a pt u red , gr o up e d,
an d p has e d – ev e n i f th ey g o bey o nd t h e s y s te m's c urr e nt p l an n e d s c op e . T h is
is s ig n if ic a nt bec a us e an i nt e nd e d n ec es s it y in a s ubs e qu e nt d e s i gn e d s t ag e
c ou l d w el l im p ac t t h e l ay o u t of pr ev i ous s y s t em des i g ns i n c ert a i n s it u at i ons .
(c
 Pub li c ati on of t h e R e qui re m ent s Sp e cif ic a tion

e
Th e R eq u ir em e nts S p ec if ic at i on was pu b l is he d a n d d is tr ib ut e d f or rev i ew to t h e
c l ie n t an d k ey s tak e ho l der s d ur i ng t h is ac t iv i ty . Doc u m en t v ers io n c on tr ol is c r it ic a l
i n th is a n d l at er s t ag es as f ee d bac k f ro m mu l t ip l e s t ak e h ol d ers is r ec e iv e d a nd

lin
c orr ec t i ons ar e m a d e. As a r es u lt , it is s ug ges t ed th a t a s i ng l e t ea m m em b er b e
as s ig n ed t o m a na g e v er s io n c o nt ro l f or t he Re q ui re m en ts S p ec if ic at i on doc u m en t
as we l l as t h e r ec or d i n g of t h e a ppr ov a l proc es s for agr e ed - u p on c ha n ges .

5. O bt ai n Req ui r em e nt s Ap pr ov al

On
Condu ct a re v iew of t he r equ i re me nts w ith th e spon so r s.

A f or ma l rev i ew me e t i ng w i th th e c l i e nt , k ey s t ak e h o ld ers , a nd s p ons ors s h o u ld be

he l d t o ga t her f e ed b ac k o n t he R e qu ir e me nts S p ec if ic at i on de l iv era b le .

Add re s s R equi r em en t s and I s su es

ty
Is s u es r ais e d d ur i ng t h e R e qu ir e me n ts Rev i ew s h ou l d b e d oc u m en t ed i n t h e
Pr oj ec t Is s ue lo g by t h e Pr oj ec t M a na g er a n d a ddr es s e d i n a s y s t em a tic m an n er by
th e t e a m. T o av oi d gr i dl oc k a nd " a na ly s is p ara ly s is ," is s u es s ho u l d b e pr io ri t iz e d
an d w ei g ht e d in r e l at i on t o th e s et o f pr ior i t iz ed re q ui re m en ts . Be f ore m ov i ng o n to

si
th e nex t ph as e, t he p r oj ec t t e a m a n d s po n s or s ho u l d s tr iv e t o r es o lv e a ll m aj or
is s ues . M i no r is s u es c an b e p os t p on e d a nd ad dr es s ed dur i n g t he s o lu t io n re l e as e
p la n ni n g pr oc es s .
er
O bta in t he Spo nso r' s Aut ho riz at i on of th e Req ui r em ent s

Th e c ons u m er , IT S , a n d ex ec u t iv e s p o ns o rs mus t a l l g iv e of f ic i a l w rit t en c o ns e nt t o

iv

th e R eq u ir em e nts Sp e c if ic at i o n.
Un

2. 1. 3 D ete r min ing re q uir e me nt s

A r e qu ir e me n t is a n ec es s ar y as p ec t of a n ew s y s t em w h ic h m i gh t i nc l u de d a ta
proc es s i ng or c a pt ur e, b us in es s ac t iv i ty c o ntr o l, k n ow l e dg e pr od uc ti o n, a nd
s up erv is or s u pp or t.
Th e pr oc es s o f d et er m in i n g r e qu ir e m en ts e nt a i ls s t udy i ng th e ex i s ti n g s y s t em a nd
ga t her i n g de ta i ls t o d et er m in e wh a t t h e pr e req u is it es ar e, h o w it ap p ea rs t o w ork ,
ity

or wh er e a dv a nc e me nt s m us t be ma d e.
Si gnif i ca nt Init i at i v e s in t he Pe r s ev e ra nc e o f Req ui r em e nt s
Anti c ipa tion of R equ i re m ent s
• I t pr ed ic ts s y s te m c h ar ac t er is t ic s b as e d o n pr ev io us ex p er ie nc e, s uc h as s pec i fic
pro b l ems or fe a tur es a nd s y s t e m r e qu ir e me n t s f or a n ew s y s t e m.
m

Th is c ou l d r es u lt t o an a ly z at i on o f as pec t s t ha t an in ex per i e nc ed a n a ly s t w o u l d
ot h erw is e ov er l ook . H ow ev er , if s h ortc uts a re o b ta i ne d an d pr ef e renc e is in i t ia te d
dur i n g th e i n qu ir y , m a nd a te es t im a t io n m i gh t w e ll be c o m pr om is e d.
)A

Inv e sti gat ion of R equ ir em ent s

• It is r es e ar c h in g t h e ex is t i ng m od e l an d d es c r ib i n g i ts c har ac t e ris t ic s fo r
fu tur e us e.
•
(c

A na ly s ts us e f ac t - fi n d in g s tr at e g ies , pr ot oty p in g , a nd c om p ut er - as s is t ed
to o ls t o d oc u m en t a n d des c r i b e s y s t e m f e at ur es at th e h ear t o f s y s t e m
an a ly s is .
 Req ui r em ent s De s c ri pt ion

e
• It c o ns is ts o f d at a a na ly s is t o d et er mi n e t he r eq u ir em e nt s p e c if ic at i o n,
fu nc t i o na l ity of d es c r i pt i ons f or t he n e w s y s te m, an d c l e arl y s t at i ng ho w
muc h i n for m at i o n r eq u ir em e nts w o ul d b e m a de av a i l ab l e.

lin
• It e nt a i ls th e ex am i n at i on of f ac t ua l d a ta , t he u n de rs t an d i ng o f t h e k ey
pre r e q uis i tes , a nd t h e c l as s i f ic a t io n o f r e qu ir em e nt - f ul f i ll m e nt s tr at eg i es .

Te chn iqu es f o r G at he rin g Inf o rm at ion

On
Th e pr i m ar y g o a l o f f ac t - f i nd i n g m e th o d s is t o as c er t ai n a n or g an iz a ti o n's
i nf or ma t io n r e qu ir e m en ts , w h ic h ar e t he n ut i l is e d by a n aly s t s to o rg a nis e a
c onc is e S R S th a t th e us er un d er s t a nds .
Th e op t i mu m S R S d oc um e nt s h o u ld -
• be c om pr eh e ns iv e , d ef i ni t e an d j ar g on fr e e.

ty
• De f in e d, or g an is at i o na l, s tr a te g ic , a n d fu l f i ls tac t ic a l i n for m at i on ne eds .
• res o lv e a ny d is agr e em en ts t ha t m ay ar is e be tw ee n us ers a n d an a ly s ts .
• em p l oy s gr ap h ic al a i d s t o fac i l it a te c o m pr eh ens i o n an d d es i gn .

Th ere are n u m er o us m et h ods f or c o l l ec t i ng d at a -

si
er
Int er vi ew ing

A s y s te ms an a ly s t c o l l ec ts i nf or ma t io n fro m i nd iv i du a ls or gro u ps by in t erv ie w in g

iv

th e m. T he an a ly s t c o u ld b e pr o fes s i o na l , p res c r ip t iv e , p o l it ic al , or c as ua l , as t he
ef fec t iv e n es s of an i nt er v ie w is de p en d e nt o n t h e a n a ly s t's ex p er tis e as an
i nt erv ie w er .
Un

Th ere are t w o ap pr oac hes t h at c a n b e t ak e n

• Uns tr uc t ur e d I nt er v i e w - Th e s y s t e m a na ly s t u nd er tak es a qu e s ti o n - a n d-
ans w er s es s io n t o g at her s t a nd ar d s y s t e m i nf or ma t io n .
• Str uc tur e d I nt er v i ew - I t i nc lu d es v ar i ous b a s ic q ues t io ns t o w h ic h t h e us er
mus t a ns w er i n e i th er a c l os e ( obj ec t iv e) or op e n ( d es c r ip t iv e) s ty l e.
ity

The B en ef it s of Int e r vi ew ing

• Th is t ec hn i qu e is of t en th e m os t ef fec t iv e me t ho d of ga i n in g q ua l i ta t iv e
da t a.
m

• It is b e ne f ic i a l f or t h os e wh o are u na b le to ef fec t iv e ly c om m u n ic a te i n
wri tt e n fo r m o r wh o d o n ot hav e t he o p po rt un ity t o f i nis h a q u es t i on na ir e.
• I nf or ma t io n c a n b e q u ic k ly af f ir me d a nd c r os s - c hec k e d.
)A

• It is c a p a bl e o f d ea l i n g w it h c o mp l ic at e d s u bj ec ts .
• It is s im p l e to d is c ov er k ey pr o b le ms by s o l ic it i n g op i n io ns ;
• It is s im p l e to c o m pr e he n d m a in c h a l le n ges by pr oc ur i n g op i n i ons ;
• It c ov er s u p t h e o p en i n gs i n th e r a ng e s of c o nf us io ns an d red uc es
(c

for thc o m in g d i ff ic ul t ie s .

Q ue sti onn ai r es
 S uc h a t ec hn i q ue w ou l d b e us e d by a na ly s ts to c o l l ec t k no w le d ge ab o ut
v ar ie d s y s t em is s u es f r o m a l ar ge n u mb er o f p eo p le . Q u es t i on n a ir es are c l as s if i e d

e
i nt o tw o ty pes .

• O pen - en de d Q u est io nna ir e s - T h is ty p e o f qu es ti o nn a ir e inc l u des qu es ti o ns

lin
th at c o u ld b e q uic k ly a nd ac c ur at e ly be c ons tr ue d. it c o ul d i nv es t i ga t e a
d if fic u lty an d c o ntr i b ut e to a par t ic u l ar s o l ut i on .
• Clo s ed - end ed Q ue st i onna i re s - It c o nt a i n qu es ti o ns wh ic h are u s ed w h en
th e s y s t ems a n a ly s t e f fic ac i ous ly rec or ds a l l mu t ua l ly ex c l us iv e r es po ns es .

On
Ben ef its of Q u e st io n nai r e s
• It is v e r y ef f ic ac i ous i n i nv es t i ga t in g n o n - c o- loc at e d us ers ' i n te res ts ,
be h av ior s , e mo t io ns , a nd op i n io ns .
• It is b e ne f ic ia l t o fi n d ou t h o w m a ny p eo p l e i n a s p ec if i ed p op u l at i on
s up p or t o r op p os e of a p art ic u l ar c ha rac te r is t ic o f t h e pr op os e d mo de l .

ty
• B ef or e giv i n g any s p e c if ic d ir ec t i o n t o t he s y s te m pr oj ec t, i t is us ef u l to
as c er t ai n t h e ov er a l l o p in i on .
• It is m or e d e pe n da b l e a nd ens ur es t he a no ny m ity of c o m m en t s a n d

si
fe e db ac k .
• It is a de q u at e f or s e lec t in g c re d i b le da t a a n d pr ov id i n g s ta t is t ic a l
ev id e nc e t h at c o u l d be e m ai l e d or m a i le d.
er
Re vi ew of R ec or ds , P ro ce du re s, and Fo rm s
A n an a ly s is o f av a i l ab l e da t a, m et h o ds , a n d f or ma t io n a i ds i n g e ner a ti n g i ns ig h ts
i nt o a fr am e wor k by a na ly s i ng t h e ex is t i n g s y s te m's a b i l it i es , pr oc es s es , or ac t io ns .
Ben ef its
iv

• It e na b l es c o ns u mer s to ac c es s s o me i n for ma t io n a bo u t t h e org a n iz a t io n or

proc es s es b ef or e i mp o s i ng o n o th ers .
• It a ids in t he d oc um e n ta t io n of o p era t io n a l p roc es s es i n a br ie f s p an o f ti m e
Un

bec a us e pr oc es s h an db o ok s a n d s tr uc t ur e s c h ar ac t er is e t he l a y ou t a n d
fe at ur es of t h e ex is t i n g ar r an g e me nt .
• It c o u ld pr ov i de a s o li d k n ow l e dg e o f t h e tra ns ac t i ons ha n dl ed in t h e
org a n is a t io n , as w e l l as r ec o g n is e i n for m at i on f or c o mp ut a ti o n an d ev a l u at e
ef fec t iv e n es s .
• Th is c o u l d a s s is t a n an a ly s t i n un d ers t a nd i ng t he s y s te m's pr oc es s es t ha t
mus t b e e nd or s ed .
ity

• It a ddr es s es t he s it u at i on , t he p arts t h at are i mp ac te d, a nd t h e d es ire d

ou tc om e.
O bs e rv ati on
It is a w ay o f c o l l ec t i ng d at a t ha t i nv o lv es n ot ic i ng a nd s tu dy in g p eo p le ,
oc c ur r e nc es , a n d o bj e c ts . T he an a ly s t v is its t h e or ga n is at i on t o p erc e iv e h o w th e
m

c urr en t s y s te m w or k s an d t o c o mpr e he n d th e s y s te m's r eq u ir em e n ts .

Ben ef its
• It is a s t r a i gh tf or war d way t o c o l lec t d at a.
• It is us e fu l wh e n t h e a ut h e nt ic ity of th e da ta c o l lec t ed is c a ll e d in to
)A

qu es ti o n, or w h en t he c om p l ex i ty of c ert a in as p ec ts o f t he s y s te m pr ev e nt s
c l ear ex p l an a ti o n by e nd - us ers .
• It ge n er a t es qu i t e v a li d a nd pr ec is e i nf or ma t i on
• It y i e l ds a ll t h e fac e t o f r ec o rds t h at ar e i ns u ff ic ie n t an d o ut m o de d.
(c
 Joi nt App li c at io n De ve lop me nt ( J AD)
It is a nov e l I BM t ec h n iq u e th at us es or g an is ed a n d i nt e ns iv e w o rk s ho ps t o br i ng

e
ow n ers , us er s , a n aly s t s , d es i g ne r s , a n d b u i l ders to g et h er to d ef i n e a nd des i g n t he
s y s te m. J AD - tr a in e d a na ly s ts wh o h av e s om e s p ec i a l is e d s k i l ls s e rv e as w ork s h o p
fac i l it at ors .

lin
Ben ef its of J A D
• I t k ee ps c os ts d ow n by s u bs ti t ut i ng l e n gt hy tr ad i ti o n al i n terv i ew pr oc es s a n d