e-business (electronic business)

E-business (electronic business) is the conduct of business

processes on the internet. These e-business processes
include buying and selling products, supplies and services;
servicing customers; processing payments; managing
production control; collaborating with business partners;
sharing information; running automated employee services;
recruiting; and more. E-business can comprise a range of
functions and services, ranging from the development
of intranets and extranets to e-services, the provision of
services and tasks over the internet by application service
providers. Today, as major corporations continuously rethink
their businesses in terms of the internet -- specifically, its
availability, wide reach and ever-changing capabilities -- they
are conducting e-business to buy parts and supplies from
other companies, collaborate on sales promotions and
conduct joint research. As e-commerce has accelerated,
stringent security protocols and tools, including encryption and
digital certificates, were adopted to protect against hackers,
fraud and theft. Nonetheless, security and data privacy remain
big concerns for companies and individuals conducting
business on the internet. With the security built
into browsers and with digital certificates now available for
individuals and companies from businesses such as Verisign,
a certificate issuer, some of the early concern about the
security of business transaction on the web has abated, and
e-business, by whatever name, is accelerating.

Trends in Management Information SystemsManagement

information systems (MIS) are complex decision support
systems used by companies to enhance and improve their
business operations. Historically, an MIS was a management
tool to help company management make informed decisions
for their business based on information gathered from all
business departments. Technology has greatly improved the
effectiveness of the MIS.

Enterprise Resource Planning Enterprise resource planning

(ERP) software is a form of MIS that is installed in all
departments and locations of businesses to enhance the
availability of company information. With the globalization of
the economic marketplace, companies have sought ways to
improve their ability to collect and report financial information
to management for effective decision making. ERPs fill this
void by allowing companies to use one computer system to
effectively record all company information.

Benefits of NetworkingAnother trend in MIS is the ability for

companies to network with other companies for business
purposes. Manufacturing firms can shorten their supply chain
using electronic data interchange (EDI) to transfer the
necessary information for ordering more products. Networking
also allows companies to transfer money through several bank
accounts, creating a quicker process for paying bills and
purchasing materials. An MIS ensures that management has
all the pertinent information for these business operations,
allowing them to review the effectiveness of their operations.

Data Mining, a Powerful ToolAn important trend in MIS is the

ability for companies to use data mining tools to collect
information regarding consumer purchases and other
economic trends. This allows management to translate this
information into goals and directions for future business
operations. Most MIS software also has trending or
forecasting models that allow companies to project emerging
consumer markets for profitable operations. Companies can
use their internal figures in the MIS to measure the effectivess
of their external data mining techniques.

Educational ProgramsAs MIS software becomes more

prevalent in businesses, many colleges and universities have
developed educational programs to train students on these
programs. Most degrees are four-year baccalaureate
programs that combine general business courses with a mix of
computer programming and management classes. This helps
students to develop a well-rounded education in the
development and implantation of MIS software. Advanced
degrees are also offered.

Careers in Database Management and Consulting

Computerized MIS programs have led to a new career in
database management and consulting. According to the U.S.
Bureau of Labor Statistics (BLS), employment of computer
and information technology occupations is projected to grow
13 percent from 2016 to 2026, faster than the average for all
occupations.

Importance of Management Support Systems for

Business Enterprises Management support systems
focus on managerial uses of information resources.
These systems provide information to manage for
planning and decision making. The information
provided by these systems is based on both the
internal and external data using various data analysis
tools.
They also offer a choice to the user to select out of these tools
for the purpose of data analysis. These systems serve the
information needs of managers at middle and top levels in the
managerial hierarchy.
There are three types of management support
systems, namely:
a) Decision Support Systems,
b) Executive Information (support) Systems and
c) Expert Systems.
Decision Support Systems:
Decision support systems (DSS) are designed to support the
decision making process of managers to improve their
effectiveness and thereby efficiency of the enterprise. They are
based on the premise that managerial judgement cannot be
replaced by any computer based solution. However, by
offering the support of data and models, it is possible to
improve the decision making process even in the case of semi-
structured and unstructured problems.
The basic purpose of DSS is to extend the capability of a
manager’s decision making process by supporting tools and
data made available to him under his direct control. DSS
neither presupposes specific information requirements and
predefined tools for analysis for different types of decisions
nor does it impose any solutions on a manager.
Thus, it gives flexibility to the manager to decide the input
data, tool of analysis, depth of analysis and reliance on the
outcome of Analysis for decision making. DSS offers an
interactive environment for users and thus permits manager
to experiment with data and models to develop the optimal
decision making strategy in a given situation.
DSS are also described as interactive information systems that
help managers utilise data analysis models to solve unstruc-
tured problems. DSS uses technologies that may be termed as
its building blocks. They are represented in Figure 10.3.

The Importance of Information Systems Audit Many

people have asked me, what is it I do as an Information
Systems Auditor? The answer, not in brief, is below (you can
skip to the last paragraph for the summary!):
Many organizations, no matter their size or scope of operation, have
come to realize the importance of using information technology to
stay ahead in the current global scenario. Companies have invested
in information systems because they recognize the numerous
benefits IT can bring to their operations. Management should realize
the need to ensure IT systems are reliable, secure and invulnerable to
computer attacks. The importance of information security is to
ensure data confidentiality, integrity and availability. Confidentiality
of data means protecting the information from disclosure to
unauthorized parties. Information such as bank account statements,
trade secrets, personal information should be kept private and
confidential. Protecting this information is a major part of
information security. Data integrity refers to protection of
information from being modified by unauthorized parties.
Information is only valuable when it has not been tampered with.
Information that has been altered inappropriately could prove costly,
for example if you made a transaction of $1,000 and someone altered
it to $100,000. Protecting data from tampering by unauthorized
persons is paramount in information security. Availability of
information refers to ensuring authorized people have access to the
information as and when needed. Denying the rightful users access
to information is quite a common attack in this internet age. Users
can also be denied access to data through natural disasters such as
floods or accidents such as power outages or fire. The key to
ensuring data availability is back-up. Backed-up data should ideally
be stored at a location far away to ensure its safety, but this distance
should take into account the time it would take to recover the
backed-up data. An information systems audit would therefore
ensure that the organization’s data is confidentially stored, that data
integrity is ensured and data is available at all times for the
authorized users. An information systems audit is an audit of an
organization’s IT Systems, management, operations and related
processes.
There are three types of information system audits: audit carried out
in support of a financial statements audit, audit to
evaluate compliance to applicable laws, policies and standards
related to IT, and finally an IT audit c
an also be a performance (or value-for-money) audit. The
objectives of this audit include finding out if there are any excesses,
inefficiency and wastage in the use and management of IT systems.
This audit is carried out to assure the stakeholders that the IT system
in place is value for the money invested in it.
Risks/Audit Rationale
Unreliable data leading to wrong payments or unwarranted
penalization.
Irregular, inaccurate or interrupted payments.
Beneficiary identification information inclusion/exclusion
errors.
 Unauthorized access to data or information.
Unauthorized changes or creation of false transactions.
Lack of system scalability.
Uniformed decisions lack of data quality/integrity causing
reputational or political
risks.
Audit Objective
The audit’s objective is to determine whether risk
management, control, and governance processes over the
Management Information System (MIS) provide reasonable
assurance that: 1 Security and confidentiality of data and
information is appropriate.2 Quality and Integrity of the data
processed ensures accurate and complete management
reporting.3 Availability of information for the users is
consistent with Service Level
Agreement (SLA) requirements.1 Effective and efficient
processing of information systems.System documentation is
adequately maintained.
Enterprise resource planning
ERP is an integrated, real-time, cross-functional
enterprise application, an enterprise-wide transaction
framework that supports all the internal business
processes of a company.
It supports all core business processes such as sales
order processing, inventory management and control,
production and distribution planning, and finance.

Why of ERP?
ERP is very helpful in the follwoing areas −
 Business integration and automated data update
  Linkage between all core business processes and
easy flow of integration
 Flexibility in business operations and more agility

to the company
 Better analysis and planning capabilities

 Critical decision-making

 Competitive advantage

 Use of latest technologies

Features of ERP
The following diagram illustrates the features of ERP
−
Scope of ERP
 Finance − Financial accounting, Managerial
accounting, treasury management, asset
management, budget control, costing, and
enterprise control.
 Logistics − Production planning, material
management, plant maintenance, project
management, events management, etc.
 Human resource − Personnel management,
training and development, etc.
 Supply Chain − Inventory control, purchase and

order control, supplier scheduling, planning, etc.

 Work flow − Integrate the entire organization
with the flexible assignment of tasks and
responsibility to locations, position, jobs, etc.
Advantages of ERP
 Reduction of lead time

 Reduction of cycle time

 Better customer satisfaction

  Increased flexibility, quality, and efficiency
 Improved information accuracy and decision

making capability
 Onetime shipment

 Improved resource utilization

 Improve supplier performance

 Reduced quality costs

 Quick decision-making

 Forecasting and optimization

 Better transparency

Disadvantage of ERP
 Expense and time in implementation

 Difficulty in integration with other system

 Risk of implementation failure

 Difficulty in implementation change

 Risk in using one vendor

What is structured data?

Structured data is sometimes thought of as traditional data,
consisting mainly of text files that include very well-organized
information. Structured data is stored inside of a data
warehouse where it can be pulled for analysis. Before the era
of big data and new, emerging data sources, structured data
was what organizations used to make business
decisions.Structured data is both highly-organized and easy to
digest, making analytics possible through the use of legacy
data mining solutions. More specifically, structured data is
made up largely of basic customer data, which includes
names, addresses, and contact information. In addition,
businesses also collect transaction data as a structured data
source, which can consist of financial information which needs
to be stored appropriately to meet compliance
standards.Structured data is largely managed with legacy
analytics solutions given its already-organized nature. Even
with the rapid rise of new data sources, companies
everywhere will continue to dip into their structured data stores
as a means of producing insights that can show them new
ways of doing business. While data-driven companies all over
the globe have analyzed structured data for many decades,
they are just now beginning to really take emerging data
sources seriously, and this has created chaos in what was
once a mature business sector.

What is unstructured data?

Unstructured data continues to grow in influence in the
enterprise as organizations try to leverage new and emerging
data sources. These new data sources are made up largely of
streaming data coming from social media platforms, mobile
applications, location services, and Internet of Things
technologies. Since the diversity among unstructured data
sources is so prevalent, businesses have much more trouble
managing it than they do with old-school structured data. As a
result, companies are being challenged in a way they weren’t
before, and are having to get creative in order to pull relevant
data for analytics.The maturation and growth of data lakes and
the Hadoop platform are a direct result of expanding
unstructured data collection. Traditional data warehouse
environments are no match for the different data types that
companies now want to analyze. In this way, companies are
having to pour additional resources into human talent and
software programs to help them with this task.The lack of an
easily definable structure inside an unstructured data store
presents a unique opportunity for an up-and-coming
profession, the data scientist. Unstructured data cannot simply
be recorded in an Excel spreadsheet or data table, and
requires more specialized skills and tools to work with, but
those who seek business insights are willing to make those
upfront investments.

Supply Chain Management

Supply chain management is the systemic, strategic
coordination of the traditional business functions and
tactics across these business functions - both within a
particular company and across businesses within the
supply chain- all coordinated to improve the long-term
performance of the individual companies and the
supply chain as a whole.
In a traditional manufacturing environment, supply
chain management meant managing movement and
storage of raw materials, work-in-progress inventory,
and finished goods from point of origin to point of
consumption.
It involves managing the network of interconnected
smaller business units, networks of channels that take
part in producing a merchandise of a service package
required by the end users or customers.
With businesses crossing the barriers of local markets
and reaching out to a global scenario, SCM is now
defined as −
Design, planning, execution, control, and monitoring
of supply chain activities with the objective of creating
net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply
with demand and measuring performance globally.
SCM consists of −
 operations management

 logistics

 procurement

 information technology

 integrated business operations

Objectives of SCM
 To decrease inventory cost by more accurately

predicting demand and scheduling production to

match it.
 To reduce overall production cost by streamlining

production and by improving information flow.

 To improve customer satisfaction.

Features of SCM
SCM Processes
 Customer Relationship Management
 Customer Service Management

 Demand Management

 Customer Order Fulfillment

 Manufacturing Flow Management

 Procurement Management

 Product Development and Commercialization

 Returns Management

Advantages of SCM
SCM have multi-dimensional advantages −
 To the suppliers −

o Help in giving clear-cut instruction

 o Online data transfer reduce paper work
 Inventory Economy −
o Low cost of handling inventory

o Low cost of stock outage by deciding optimum

size of replenishment orders

o Achieve excellent logistical performance such

as just in time
 Distribution Point −
o Satisfied distributor and whole seller ensure

that the right products reach the right place at

right time
o Clear business processes subject to fewer
errors
o Easy accounting of stock and cost of stock

 Channel Management −
o Reduce total number of transactions required

to provide product assortment

o Organization is logically capable of performing

customization requirements
 Financial management −
o Low cost

o Realistic analysis

 Operational performance −
o It involves delivery speed and consistency.

 External customer −
o Conformance of product and services to their

requirements
o Competitive prices

o Quality and reliability

o Delivery
 After sales services
o

 To employees and internal customers −

o Teamwork and cooperation

o Efficient structure and system

o Quality work

o Delivery

waterfall model
Phases of Waterfall Model in Software Engineering
There are several phases in the waterfall model. They are briefly
explained below. Let us understand the concept of Waterfall model
with example of a banking application for illustrating the topic.Let
us assume that the Citibank is planning to have a new banking
application developed and they have approached your organization
in the 1990’s.
Requirements Gathering and Analysis In this phase the
requirements are gathered by the business analyst and they are
analyzed by the team. Requirements are documented during this
phase and clarifications can be sought.The Business Analysts
document the requirement based on their discussion with the
customer.Going through the requirements and analyzing them
has revealed that the project team needs answers to the
following questions which were not covered in the requirements
document –
 Will the new banking application be used in more than one
country?
 Do we have to support multiple languages?
 How many users are expected to use the application? Etc
System Design The architect and senior members of the team
work on the software architecture, high level and low level design
for the project.It is decided that the banking application needs to
have redundant backup and failover capabilities such that system is
accessible at all times.The architect creates the Architecture
diagrams and high level / low level design documents.
Implementation The development team works on coding the
project. They take the design documents / artifacts and ensure that
their solution follows the design finalized by the architect.Since the
application is a banking application and security was a high priority
in the application requirements, they implement several security
checks, audit logging features in the application.They also perform
several other activities like a senior developer reviewing the other
developers code for any issues. Some developers perform static
analysis of the code.
Testing: The testing team tests the complete application
and identifies anydefects in the application.These defects
are fixed by the developers and the testing team tests the
fixes to ensure that the defect is fixed.They also
perform regression testing of the application to see if any
new defects were introduced.Testers with banking domain
knowledge were also hired for the project so that they could
test the application based on the domain
perspective.Security testing teams were assigned to test the
security of the banking application.
Deployment The team builds and installs the application on
the servers which were procured for the banking
application.Some of the high level activities include
installing the OS on the servers, installing security patches,
hardening the servers, installing web servers and
application servers, installing the database etc.They also co-
ordinate with network and IT administrative teams etc to
finally get the application up and running on the production
servers.
Maintenance During the maintenance phase, the team
ensures that the application is running smoothly on the
servers without any downtime.Issues that are reported
after going live are fixed by the team and tested by the
testing team.
Advantages of waterfall model
 This model is simple and easy to understand and use.
 It is easy to manage due to the rigidity of the model – each
phase has specific deliverables and a review process.
  In this model phases are processed and completed one at a
time. Phases do not overlap.
 Waterfall model works well for smaller projects where
requirements are clearly defined and very well understood.
Disadvantages of waterfall model
Once an application is in the testing stage, it is very difficult to
go back and change something that was not well-thought out in
the concept stage.
 No working software is produced until late during the life cycle.

 High amounts of risk and uncertainty.

 Not a good model for complex and object-oriented projects.

 Poor model for long and ongoing projects.

 Not suitable for the projects where requirements are at a

moderate to high risk of changing.

When to use the waterfall model
 This model is used only when the requirements are very well
known, clear and fixed.
 Product definition is stable.
 Technology is understood.
 There are no ambiguous requirements
 Ample resources with required expertise are available freely
 The project is short.
In Waterfall model, very less customer interaction is involved during
the development of the product. Once the product is ready then only
it can be demonstrated to the end users.
Once the product is developed and if any failure occurs then the cost
of fixing such issues are very high, because we need to update
everything from document till the logic.
In today’s world, Waterfall model has been replaced by other models
like iterative, agile etc.

Chief Information Officer (CIO)

CIO stands for Chief Information Officer, commonly the most
seniXZCCor IT and technology position within an organisation.
Although in some organisations the title is seen as
interchangeable with that of 'IT Director', the CIO role today is
generally seen as encompassing a wider range of
responsibilities.
"The era of IT Directors managing large complex data centres
in isolation, and in complete control, is over," said Andy
Caddy, when he was CIO at Virgin Active fitness group,
currently Group CTO of Whitbread.
"The new job description of a CIO involves relationships and
transparency, collaboration and business value. The great
digital leaders of the next decade will need to understand their
business intimately; they will be the masters of change and
they can only do this if they are intimately familiar with the
business they are changing."
The role of the CIO is now conceptualised as a strategic
business leadership position, tasked with driving change and
transformation within their organisation rather than solely
taking charge of IT operations.
The CIO manages and oversees multiple responsibilities,
which are critical to the smooth business operations, including:
 Monitoring necessary IT purchases and their timeliness

 Using strategy to improve and streamline all business IT

processes, such as implementing a project management

software system
  Improving client relationships via the Internet, such as
establishing the organization's Web presence to sell
products (The CIO continually searches for methods of
increasing and enabling company revenue and growth
through technology.)
 Establishing an organization’s IT policies and overseeing

IT security (This area is usually managed by a computer

information security officer (CISO).)
 Enabling and strategizing interdepartmental information

sharing between departments, executive management

and interested parties
 Automating office processes, implementing enterprise

resource planning (ERP) and customer relationship

management (CRM) systems
 Managing IT projects through specific program

management (Sometimes it is necessary to circumvent a

project’s potential to both exceed budget and still never
materialize.)
Technology is the primary component of the modern business
world. Thus, the CIO must be able to strategize and manage
IT projects, ensuring successful business operations.
Definition - What does Human Resources Information
System (HRIS) mean?
A Human Resources Information System (HRIS) is a software
or online solution that is used for data entry, data tracking and
the data information requirements of an organization's human
resources (HR) management, payroll and bookkeeping
operations. A HRIS is usually offered as a database.
HRIS software is a type of software that allows organizations
to handle many human resources functions electronically.
“HRIS” stands for Human Resources Information System and
 that’s exactly what the software is at its core, a platform that
collects and stores information related to the employees or
“human resources” within an organization.
In addition to passively collecting and storing information,
HRIS software has evolved to assist with many HR activities
such as time and attendance tracking, succession planning,
and recruiting. This can improve efficiency and save labor
hours, among other advantages.
HRIS is a valuable tool that is being utilized by many of the top
ranking companies across every industry to improve
operations starting at the heart of the organization.
HRIS Functionality and Modules
Functionality and modules that are offered with HRIS
software often include:
 Database of employee profiles that includes information like
names, addresses, salaries, and performance appraisal
history
 Employee portals that allow employees to manage their
information, request time off, view payroll history, and
sometimes communicate with peers
 Benefits management options that allow employees to view
information about available benefits, select desired options,
and make changes as needed
 Time and attendance tracking options that log employee hours
 Payroll functionality that uses time tracking to accurately
calculate and disperse pay and taxes
 Recruitment options that assist with sourcing candidates,
screening applicants, onboarding, and training new employees
 Succession planning resources that help with tracking
employee training and promotions
 Social media feeds that relay important company information
and updates
 Analytics and reporting that can be used to view historical
information, real-time data, and even make predictions for the
future

What is Feasibility Study? Types of Feasibility. Explain

Feasibility Study Process
BY DINESH THAKUR Category: Software Engineering
Feasibility is defined as the practical extent to which a
project can be performed successfully. To evaluate feasibility, a
feasibility study is performed, which determines whether the
solution considered to accomplish the requirements is
practical and workable in the software. Information such as
resource availability, cost estimation for software
development, benefits of the software to the organization after
it is developed and cost to be incurred on its maintenance are
considered during the feasibility study. The objective of the
feasibility study is to establish the reasons for developing the
software that is acceptable to users, adaptable to change and
conformable to established standards. Various other objectives
of feasibility study are listed below.
 To analyze whether the software will meet organizational
requirements
 To determine whether the software can be implemented using
the current technology and within the specified budget and
schedule
 To determine whether the software can be integrated with
other existing software.
 Types of Feasibility
Various types of feasibility that are commonly considered
include technical feasibility, operational feasibility, and
economic feasibility.
Technical feasibility assesses the current resources (such as
hardware and software) and technology, which are required to
accomplish user requirements in the software within the
allocated time and budget. For this, the software development
team ascertains whether the current resources and technology
can be upgraded or added in the software to accomplish
specified user requirements. Technical feasibility also
performs the following tasks.
 Analyzes the technical skills and capabilities of the software
development team members
 Determines whether the relevant technology is stable and
established
 Ascertains that the technology chosen for software
development has a large number of users so that they can be
consulted when problems arise or improvements are
required.
Operational feasibility assesses the extent to which the
required software performs a series of steps to solve business
problems and user requirements. This feasibility is dependent
on human resources (software development team) and
involves visualizing whether the software will operate after it is
developed and be operative once it is installed. Operational
feasibility also performs the following tasks.
 Determines whether the problems anticipated in user
requirements are of high priority
 Determines whether the solution suggested by the software
development team is acceptable
 Analyzes whether users will adapt to a new software
 Determines whether the organization is satisfied by the
alternative solutions proposed by the software development
team.
Economic feasibility determines whether the required
software is capable of generating financial gains for an
organization. It involves the cost incurred on the software
development team, estimated cost of hardware and software,
cost of performing feasibility study, and so on. For this, it is
essential to consider expenses made on purchases (such as
hardware purchase) and activities required to carry out
software development. In addition, it is necessary to consider
the benefits that can be achieved by developing the software.
Software is said to be economically feasible if it focuses on the
issues listed below.
 Cost incurred on software development to produce long-term
gains for an organization
 Cost required to conduct full software investigation (such as
requirements elicitation and requirements analysis)
 Cost of hardware, software, development team, and training.
Feasibility Study Process
Feasibility study comprises the following steps.
1. Information assessment: Identifies information about
whether the system helps in achieving the objectives of the
organization. It also verifies that the system can be
implemented using new technology and within the budget and
whether the system can be integrated with the existing system.
2. Information collection: Specifies the sources from where
information about software can be obtained. Generally, these
sources include users (who will operate the software),
organization (where the software will be used), and the
software development team (which understands user
requirements and knows how to fulfill them in software).
3. Report writing: Uses a feasibility report, which is the
conclusion of the feasibility study by the software development
team. It includes the recommendations whether the software
development should continue. This report may also include
information about changes in the software scope, budget, and
schedule and suggestions of any requirements in the system.
4. General information: Describes the purpose and scope of
feasibility study. It also describes system overview, project
references, acronyms and abbreviations, and points of
contact to be used. System overview provides description
about the name of the organization responsible for the
software development, system name or title, system category,
operational status, and so on. Project references provide a
list of the references used to prepare this document such as
documents relating to the project or previously developed
documents that are related to the project. Acronyms and
abbreviations provide a list of the terms that are used in this
document along with their meanings. Points of
contact provide a list of points of organizational contact with
users for information and coordination. For example, users
require assistance to solve problems (such as troubleshooting)
and collect information such as contact number, e-mail
address, and so on.
5. Management summary: Provides the following
information.
6. Environment: Identifies the individuals responsible for
software development. It provides information about input
and output requirements, processing requirements of the
software and the interaction of the software with other
software. It also identifies system security requirements and
the system's processing requirements
7. Current functional procedures: Describes the current
functional procedures of the existing system, whether
automated or manual. It also includes the data-flow of the
current system and the number of team members required to
operate and maintain the software.
8. Functional objective: Provides information about functions
of the system such as new services, increased capacity, and so
on.
9. Performance objective: Provides information about
performance objectives such as reduced staff and equipment
costs, increased processing speeds of software, and improved
controls.
10. Assumptions and constraints: Provides information
about assumptions and constraints such as operational life of
the proposed software, financial constraints, changing
hardware, software and operating environment, and
availability of information and sources.
11. Methodology: Describes the methods that are applied to
evaluate the proposed software in order to reach a feasible
alternative. These methods include survey, modeling,
benchmarking, etc.
12. Evaluation criteria: Identifies criteria such as cost,
priority, development time, and ease of system use, which are
applicable for the development process to determine the most
suitable system option.
13. Recommendation: Describes a recommendation for the
proposed system. This includes the delays and acceptable
risks.
14. Proposed software: Describes the overall concept of the
system as well as the procedure to be used to meet user
requirements. In addition, it provides information about
improvements, time and resource costs, and impacts.
Improvements are performed to enhance the functionality and
performance of the existing software. Time and resource costs
include the costs associated with software development from
its requirements to its maintenance and staff training. Impacts
describe the possibility of future happenings and include
various types of impacts as listed below.
The role of the analyst has however changed with time. Now a
system analyst is seen more as a change agent responsible for
delivering value to an organization on its investments in
management information systems (that includes a heavy dose
of information communication technology investment).
An organization requires system analysts as line managers
normally do not have an understanding of the kind of
information-based solutions that are possible for their
business problems. A system analysts bridges this gap as
he/she is has a thorough knowledge of both the business
systems and business processes. A system analyst is therefore
in a position to provide information system based solutions to
organizations after having studied the problem that the
organization is facing. They understand both business and
technology. They study a business problem or opportunity and
devise an information system enabled solution for it by
detailing the information system specifications. This set of
specification that the analyst delivers is in a technical format
 which is easily understandable to a technical (IT) specialist.
The technical specialist might not understand the business
issue, if it comes directly from the line managers as he has very
little knowledge of business processes. The system analyst
then bridges the gap between the two by translating and
transforming the business problem/opportunity into a
information systems solution and supplying the specification
of such a system to the technologist who can then take up the
task and build the actual system.
As we have pointed out in the previous section, the role of the
analyst encompasses both the business and technology
domain. In addition, the analyst also works, as a change agent
hence the work of an analyst not only requires very good
understanding of technical knowledge but also of business and
interpersonal skills.
The interpersonal skills required by a system analyst are:
1. Communication: The analyst needs to be a very good
communicator to understand and communicate to the user
group as well as to the1echnical specialists. Sometimes the
users may not be able to communicate their needs fully to the
analyst, but the analyst must be able to understand their needs
from incomplete communication of the users.
2. Foresightedness and vision: The analyst must have
foresight and vision, so that they can factor in the future
requirement of the users even if they have not factored that in
the design. The analyst must also have vision with regard to
the technological changes. He/she must be able to predict
where the business needs and technological
capabilities/constraints will be in the future. They should also
clearly communicate that the design holds good not only for
the short term but also the long term.
3. Adaptability and flexibility skills: The analyst may be
new to the environment of the particular business but he/she
has to be quick on the uptake and adapt fast to the culture and
environment of the organization. Some flexibility in the
understanding of problems is also required along with the
flexibility to come up with alternative solutions.
4. Selling: The analyst needs to have flair to sell their ideas and
solutions to the users. Sometimes this may be difficult as the
users and clients might not know what solution will serve
them best. The analyst needs to employ his selling skills to
convince the users on the suitability of a solution.
5. Patience and rationality: The analyst needs to be patient
and rational so that he/she do not rush to a solution. If they
make haste then they might miss critical information about
the problem/opportunity and end up promoting a wrong
solution for the users. Rationality is also a virtue for the
system analyst, as this will help them in analyzing the
problem/opportunity with a clear mind without prejudice.
6. Sound temperament: The analyst needs to remain calm in
the face of adverse situations. Most of the time the critical data
that the analyst seeks is hard to come by and may be late in
coming. The analyst will have to put up with all this and be
clam in such situations. Thus, the temperament that he
exhibits will help him in devising an appropriate solution for
the client.
1. Management skills: These skills are an absolute necessity
for any analyst. The system analyst has to deliver in spite of
several constraints hence they must have good management
skills to manage time and resources at their disposal. The
particular management skills that they need to have are:
1. Time management skills. This will help them adhere to the
strict schedules of the task.
2. Project management skills. This will help them manage the
project within the boundaries of time and cost.
3. Man management skills. The analyst will need human
resource skills so that they can manage people working under
him. This skill will also help them to connect to people in the
client organization so that there is greater acceptability for
their solutions.
4. Team management skills. The analyst must be a team player.
They have to work in a team and they should ensure smooth
team functioning.
5. Organizing and directing skills. These are basic managerial
skills that the analyst must have to conduct the analysis
properly.
6. Negotiation skills. The analyst should be a good negotiator to
get his way around for the purposes of selling his solution and
to get the relevant data from the client.

System Development Life Cycle

An effective System Development Life Cycle (SDLC)
should result in a high quality system that meets
customer expectations, reaches completion within
time and cost evaluations, and works effectively and
efficiently in the current and planned Information
Technology infrastructure.
System Development Life Cycle (SDLC) is a
conceptual model which includes policies and
procedures for developing or altering systems
throughout their life cycles.
SDLC is used by analysts to develop an information
system. SDLC includes the following activities −
  requirements
 design

 implementation

 testing

 deployment

 operations

 maintenance

Phases of SDLC
Systems Development Life Cycle is a systematic
approach which explicitly breaks down the work into
phases that are required to implement either new or
modified Information System.

Feasibility Study or Planning

 Define the problem and scope of existing system.

 Overview the new system and determine its

objectives.
 Confirm project feasibility and produce the project

Schedule.
 During this phase, threats, constraints, integration

and security of system are also considered.

 A feasibility report for the entire project is created

at the end of this phase.

Analysis and Specification
 Gather, analyze, and validate the information.

 Define the requirements and prototypes for new

system.
 Evaluate the alternatives and prioritize the
requirements.
  Examine the information needs of end-user and
enhances the system goal.
 A Software Requirement Specification (SRS)
document, which specifies the software, hardware,
functional, and network requirements of the
system is prepared at the end of this phase.
System Design
 Includes the design of application, network,
databases, user interfaces, and system interfaces.
 Transform the SRS document into logical
structure, which contains detailed and complete
set of specifications that can be implemented in a
programming language.
 Create a contingency, training, maintenance, and

operation plan.
 Review the proposed design. Ensure that the final

design must meet the requirements stated in SRS

document.
 Finally, prepare a design document which will be

used during next phases.

Implementation
 Implement the design into source code through

coding.
 Combine all the modules together into training

environment that detects errors and defects.

 A test report which contains errors is prepared

through test plan that includes test related tasks

such as test case generation, testing criteria, and
resource allocation for testing.
  Integrate the information system into its
environment and install the new system.
Maintenance/Support
 Include all the activities such as phone support or

physical on-site support for users that is required

once the system is installing.
 Implement the changes that software might
undergo over a period of time, or implement any
new requirements after the software is deployed
at the customer location.
 It also includes handling the residual errors and

resolve any issues that may exist in the system

even after the testing phase.
 Maintenance and support may be needed for a

longer time for large systems and for a short time

for smaller systems.
Life Cycle of System Analysis and Design
The following diagram shows the complete life cycle
of the system during analysis and design phase.

Role of System Analyst

The system analyst is a person who is thoroughly
aware of the system and guides the system
development project by giving proper directions. He is
an expert having technical and interpersonal skills to
carry out development tasks required at each phase.
He pursues to match the objectives of information
system with the organization goal.
Main Roles
 Defining and understanding the requirement of
user through various Fact finding techniques.
 Prioritizing the requirements by obtaining user
consensus.
 Gathering the facts or information and acquires

the opinions of users.

 Maintains analysis and evaluation to arrive at
appropriate system which is more user friendly.
 Suggests many flexible alternative solutions, pick

the best solution, and quantify cost and benefits.

 Draw certain specifications which are easily
understood by users and programmer in precise
and detailed form.
 Implemented the logical design of system which

must be modular.
 Plan the periodicity for evaluation after it has been

used for some time, and modify the system as

needed.

Customer Relationship Management

CRM is an enterprise application module that
manages a company's interactions with current and
future customers by organizing and coordinating,
sales and marketing, and providing better customer
services along with technical support.
Atul Parvatiyar and Jagdish N. Sheth provide an
excellent definition for customer relationship
management in their work titled - 'Customer
Relationship Management: Emerging Practice,
Process, and Discipline' −
Customer Relationship Management is a
comprehensive strategy and process of acquiring,
retaining, and partnering with selective customers to
create superior value for the company and the
customer. It involves the integration of marketing,
sales, customer service, and the supply-chain
functions of the organization to achieve greater
efficiencies and effectiveness in delivering customer
value.
Why CRM?
 To keep track of all present and future customers.

 To identify and target the best customers.

 To let the customers know about the existing as

well as the new products and services.

 To provide real-time and personalized services
based on the needs and habits of the existing
customers.
 To provide superior service and consistent
customer experience.
 To implement a feedback system.

Scope of CRM

Advantages of CRM
 Provides better customer service and increases
customer revenues.

 Discovers new customers.

  Cross-sells and up-sells products more effectively.
 Helps sales staff to close deals faster.

 Makes call centers more efficient.

 Simplifies marketing and sales processes.

Disadvantages of CRM
 Some times record loss is a major problem.

 Overhead costs.

 Giving training to employees is an issue in small

organizations.