2. Introduction
System
• A system is a set of components that interact to accomplish some
purpose. e.g. College system, Economic system, Language system, a
Business and its parts - Marketing, Sales, Research, Shipping,
Accounting, Government.
Information System (I.S.)
• Interrelated components working together to collect, process, store,
and disseminate information to support decision making,
coordination control analysis and visualization in an organization.
3. Problem Identification
Systems Planning
• Identify and prioritize those technologies and applications
that will return the most value to the business.
• Prioritization of the requirements for solving the problem.
The emphasis is on the business, not the computer.
• In other words, is the study of current business and
information system, and the definition of user requirements
and priorities for new information system. Synonyms
include business problem analysis, requirement analysis,
and logical design.
• Basically, WHAT TO DO, NOT HOW TO DO IT.
4. SDLC Definition
The systems development life cycle (SDLC), also referred
to as the application development life-cycle, is a process
for planning, creating, testing, and deploying an
information system.
There are usually six stages in this cycle:
– Requirement analysis,
– Design,
– Code and
– Testing,
– Implementation,
– Documentation, and evaluation.
6. SDLC :Concept
• The SDLC is not a methodology, but rather a
description of the phases in the life cycle of a
software application.
• Methodologies are different approaches, where they
contain the SDLC phases in which a requirement is
born, then travels through the life cycle phases ending
in the final phase of maintenance and support.
7. SDLC
SDLC can have spectrum of methodologies from
• Sequential
• Agile
• Iterative etc.
8. System Analysis
Basically, WHAT TO DO, NOT HOW TO DO IT.
• What should system do?
- Keep records of sales
- Keep records of stock levels - produce sales reports
• Feasibility Study
– Advantages Vs Disadvantage
9. System Analysis
• At this step, desired features and operations are
described in detail, including screen
layouts, business rules, process
diagrams, pseudocode, and other
documentation
10. Requirement Types
Requirements engineering is about the elicitation,
analysis, specification, and validation of requirements for
software.
Software requirements can be of three different types.
– Functional requirements
– Non-functional requirements,
– Domain requirements.
11. Requirement Continued..
• Functional
– The operation of the software should be performed and the proper
output should be expected for the user to use.
• Non-functional
– Requirements deal with issues like portability, security, maintainability,
reliability, scalability, performance, reusability, and flexibility. They are
classified into the following types: interference constraints,
performance constraints (such as response time, security, storage space,
etc.), operating constraints, life cycle constraints (maintainability,
portability, etc.), and economic constraints.
12. System Analysis Contd..
A series of steps followed by the developer include:
• Collection of facts: Obtain end user requirements
through documentation, client interviews, observation,
and questionnaires.
• Scrutiny of the existing system: Identify pros and cons
of the current system in-place, so as to carry forward
the pros and avoid the cons in the new system.
• Analysis of the proposed system: Find solutions to the
shortcomings described in step two and prepare the
specifications using any specific user proposals.
13. SRS
• The SRS (Software Requirement Specification)
document is created.
• It is a document thoroughly understood by the
developers and also should be reviewed by the
customer for future reference.
14. Feasibility
TELCOS Acronym
• Technical feasibility (technically practical, staff, expertise)
• E Economic feasibility
– Is it cost effective?
• L Law feasibility
– Is it legal?
• O Operational feasibility
Does it fulfil user requirements?
To what degree?
Will the work environment change?
How does users feel about such a solution?
• S Schedule feasibility
Design and implementation in acceptable period of time?
15. System Design
Software design
• It involve the process of defining the architecture, components,
interfaces, and other characteristics of a system or component. At
this step, desired features and operations are described in detail,
including screen layouts, business rules, process diagrams,
pseudocode, and other documentation.
• This is also called software architecture.
• Software design is divided into three different levels of design.
– Interface design,
– Architectural design, and
– Detailed design.
16. System Design
The evaluation of alternative problem solutions and the detailed
specifications of the final solution computer-based. Emphasis shifts
from the business to the computer solution.
SRS sent to programmers.
It is also called physical design.
Basically, HOW TO DO IT.
Logical
What data to hold?
Which process to transform data?
Physical
Which software and hardware to use?
Decided on a package which could be modified
17. Software Testing
Software testing
All the modules are brought together into a special
testing environment, then checked for errors, bugs,
and interoperability.
• It is an empirical, technical investigation conducted to
provide stakeholders with information about the
quality of the product or service .
• It is one aspect of software quality.
18. Software Testing
The following are types of testing that may be relevant, depending on the
type of system under development:
• Defect testing the failed scenarios, including
• Path testing
• Data set testing
• Unit testing
• System testing
• Integration testing
• Black-box testing
• White-box testing
• Regression testing
• Automation testing
• User acceptance testing
• Software performance testing
19. Implementation
• The SDLC ensures that proper training on the system is
performed or documented before transitioning the system to
its support staff and end users.
• Training usually covers operational training for those people
who will be responsible for supporting the system as well as
training for those end users who will be using the system
after its delivery to a production operating environment.
• After training has been successfully completed, systems
engineers and developers transition the system to its final
production environment, where it is intended to be used by
its end users and supported by its support and operations
staff.
20. Software Maintenance
• It refers to the activities required to provide cost-effective
support after shipping the software product.
• The activities include modifying and updating distribution
to correct faults and to improve its performance with the
real changes, software maintenance is required.
• Software maintenance includes:
– Error correction,
– Optimization,
– Deletion of unused and discarded features, and enhancement of
features that already exist.
21. Investigation Tools
• Interviews
• Studying the current system documentation
• Questionnaires
• Observation of the system in operation
• Reviewing previous studies
• Surveys
25. SDLC Models
The software development models are the various processes or
methodologies that are being selected for the development of the project
depending on the project’s aims and goals. There are many development
life cycle models that have been developed in order to achieve different
required objectives. The models specify the various stages of the process
and the order in which they are carried out.
• Waterfall model
• V model
• Incremental model
• RAD model
• Agile model
• Iterative model
• Spiral model
• Prototype model
26. Waterfall Model
It is the very old model.
• In ‘Waterfall Model’ testing starts only after the
development is completed. Because of which there
are many defects and failures which are reported at
the end.
• The cost of fixing these issues are high. Hence, these
days people are preferring ‘Agile Model’. In ‘Agile
Model’ after every sprint there is a demo-able feature
to the customer. Hence customer can see the features
whether they are satisfying their need or not.
28. V-Model
• It is also used by many of the companies in their
product.
• ‘V-model’ is nothing but ‘Verification’ and
‘Validation’ model.
• In this model testing is done side by side of the
development.
31. Agile Model
• In the Agile methodology, each project is broken up into several
‘Iterations’.
• All Iterations should be of the same time duration (between 2 to 8 weeks).
• At the end of each iteration, a working product should be delivered.
• In simple terms, in the Agile approach the project will be broken up into 10
releases (assuming each iteration is set to last 4 weeks).
• Rather than spending 1.5 months on requirements gathering, in Agile
software development, the team will decide the basic core features that are
required in the product and decide which of these features can be
developed in the first iteration.
• Any remaining features that cannot be delivered in the first iteration will be
taken up in the next iteration or subsequent iterations, based on priority.
• At the end of the first iterations, the team will deliver a working software
with the features that were finalized for that iteration.
• There will be 10 iterations and at the end of each iteration the customer is
delivered a working software that is incrementally enhanced and updated
with the features that were shortlisted for that iteration.
32. Business & Commerce
Dictionary meaning of business
• Business is a person’s regular occupation or
• trade,
• commercial activity,
• a commercial organisation.
Business can be called as a social science of
managing people to organise and maintain
collective productivity towards accomplishing
particular creative and productive goals usually to
generate revenue.
33. Contd..
Besides doing the activity is in an organisation,
the goal is to generate revenue.
Another definition again from Internet from
business dictionary.
Business also called an organisational entity
involved in provision of goods and services to
the consumers.
34. Business Types ..
Every business requires some form of
investment and enough customers to whom its
output can be sold on a consistent basis in
order to make a profit.
• Business can be privately owned, eg. TATA
• Can be non-profit or
• Can be state owned eg COAL INDIA
35. Definition
• A business is generally an organisational unit
that has or that should have a defence
strategy and a manager with sales and profit
responsibility. Ucker and Matt Locklin
• Strategy for making sales and profit.
• Generate revenue
• Deliver value to customers. And not only they
deliver the value to the customer,
• Satisfy customer.
36. Customer Value
Kotler says, the
Customer delivered value is the difference
between the total customer value and the total
customer cost.
For example, Buying the washing machine.
38. Contd..
5- primary business processes of every company,
whether it is a manufacturing company which
manufactures products, whether it is a service company.
• Inbound Logistics,
• Operations,
• Outbound logistics,
• Marketing and sales,
• Then services(after sale ).
39. Contd..
• Through inbound Logistics: get raw material
for making certain products,
• Through operations :actually produce
• Through outbound logistics: try to make these
products reach customer and
• Through marketing and sales strategy, you
promote work, promote products and service
• Finally at the end, to provide after sales
services.
40. Contd..
Besides these 5 primary activities, some
supporting activities are.
• Procurement is some activity which spans
across all the 5 primary business activities.
• Then technology development,
• Then to have human resource development
• Finally, have to have the firm’s infrastructure
developed over the time.
41. Business Stakeholder
The firm actually cannot exist on its own.
And there are many stakeholders of the company.
Who are the stakeholders?
• Customers, employees, suppliers, distributors,
stakeholders, financial institutions and
governments.
• All these stakeholders are connected to the
company and they also participate in this value
delivery and all of them are connected to the
company through some information system.
42. Business Resources
• Resources are labour, material and machines,
information and energy.
• And the organisation, it is a structure, it has
policies, and it has some corporate culture.
And what are processes?
• Processes are the workflows that links the
interdependent activities to carry out certain
business activities.
43. Contd..
• When the customer orders the retailer, customer order
cycle happens because the order will be placed, then the
material will be made and it will be supplied. Then
there is a replenishment cycle, there is manufacturing
cycle and there is procurement cycle.
• The customers order the retailer, the retailer orders the
manufacturer, manufacturer to its supplier and so on.
• The order is basically the flow of information whereas
the delivery is the flow of the product .
• And during the delivery, besides flow of the product,
many documents also flow. That is again another flow
of information.
44. Why ICT in Business?
In Ordering process and delivery process,
many cycles happen and that introduces the
delay in the process.
• Basically ICT is the strategy to reduce the
delay in all these cycles. A s the business aim
is to be of high performance.
• ICT strategies, contribute to improving the
business processes and that is how the e-
business comes into picture.
45. Commerce
Definition from Oxford English dictionary :
It is the activity of buying and selling,
specially on a large-scale.
• Only the commercial activities do not make
the business.
• So besides commercial activities, there are
other businesses processes as well. And
therefore commerce is a subset of business.
46. Summary
Businesses do exist to make profit .But they cannot
make profit just like that.
• They have to deliver value to the customer and not only
to deliver value to the customer, they have to make the
customers happy, they have to make the customer
satisfied .
• And for this process , they need the help of many
stakeholders,
• They have to have their business processes work in a
efficient manner,
• They must be utilising many resources to make the
business make their business profitable group.
47. e-Business
E stands for electronic transactions. It is all about ICT technologies.
• E-commerce is about buying and selling of goods and services
through digital communication network which uses the Internet
technology and web in particular.
• e-Business which is a superset of e- commerce activities, it is not
limited to buying and selling. It includes other business activities
such as servicing the customer, collaborating with the business
partners or other stakeholders, supporting internal transactions and
so on.
• Or it is in general conducting all the business activities online.
• Term E-business was actually coined by Lou Gerstner, CEO of IBM
49. Contd..
The first part of the business that got
automated was the transactions.
• Example: Payroll system is basically a set of
very mundane transactions with definite rules.
and do not have any kind of decision-making
involved over there i.e TRANSACTION
PROCESSING
50. Contd..
Data that is getting generated out of the
transactions, summarising it and providing it in
a more comprehensive manner to the managers
for decision-making. So those systems are
called :Management Information Systems.
51. Contd..
• Every day business involve taking decisions but
by automating the decision making process it
mean to have a model of the decision and if the
decision has to be repeatedly executed, that model
has to be executed repeatedly. So here such kind
of systems to be called decision support systems.
• Information systems which combines all the
subsystems of the business, and to connect
information system of many businesses.
52. Contd..
Now technologies makes the Information Systems
interoperable. By interoperability, we mean the
Information Systems of various organisations
which have different kinds of technologies now
they need to be integrated.
• Besides that the business process is web-based
systems.
• It involve web services and cloud computing
which is a more recent phenomena, mobile
computing, use of RFID and GPS/GIS for
tracking the products across the supply chain.
53. Contd..
• Through various business processes. So now the
information system which integrates all these 4
areas and in turn makes the business processes
automated within the organisation are called the
enterprise systems or ERP. ERP system which
integrates their individual subsystems. Basically,
we had some major subsystems of every business.
Let us say finance and accounting, manufacturing
and production, human resources, sales and
marketing.
54. Advantages of E-Business
• Better availability of service,
• Cost reduction in information processing,
• better timeliness of service,
• better access to the customer market. Through B2C, now they are
connecting.
• Initial cost of operations are less expensive because things are online.
• Operating costs of operation has reduced because mostly things have gone
paperless and they have many of the things automated,
• Better purchasing price from the suppliers where example is about reverse
auction. In reverse auction, actually one can make suppliers compete with
each other to reduce the price.
• Improved product development, taking input from customers as there are
websites which can help customer customise their product. Nike’s website,
thus the product development can be improved.
• Business can have improved product development,
• They can have improved scheduling and
• They can have better quality, supplier and quality control.
56. Transaction Models
Transaction model :the various entities
that exist in the in the business and how do the
way they interact with each other.
• These transactions can be of various types,
depending on the stakeholder, whether it is
business, customers or government.
• These 3 models can exist both in traditional
businesses and in Internet businesses both.
• Internet is just a tool to enhance their business
processes.
58. Contd..
3 entities
• Customer,
• Business and
• Government.
Types of transaction:
– C2C-or consumer to consumer,
– C2B-customer and the business
– B2C-business house to customer,
– B2B-between businesses
59. Examples
• eBay not only supports C2C kind of transactions
• It also supports B2C kind of transactions.
• The consumer themselves cannot have their own
website. There the site has to be, the intermediary
which hosts the site and through which the
transaction takes place, takes all the responsibility
and is responsible for security and payment
system to deal with security and payment system
issues as well.eg. olx
60. B2C
• B2C transactions can be either hosted by the
business to directly deal with its customers like
that of Dell or it can also be hosted by some
intermediary like your Amazon or your eBay.
61. C2B
• So those transactions where customers give
their feedback and their reviews to the
businesses, are termed as C2B kind of
transactions.
• Example:buying a book, and submitting
reviews to the Amazon.
63. Contd..
E-bay: Internet company,
• Internet or information technology is just some kind of tool
which businesses are using to improve, their business
processes. That does not mean that businesses cannot run
without information , communication technology.
• Businesses were existing, businesses are going to exist as
well with Internet or without Internet. EG. Tata motors, Tata
steel, or any other company that way, SAIL or any other
company, all of them were existing but right now, all of
them have come to have their web interfaces as well.
• Company actually surface because of the Internet and eBay
is one such multinational.
• e-commerce facilitating online consumer to consumer and
business to increase sales.
64. Contd..(B2C CASE)
• Dell’s case because it is the manufacturer
itself. Dell is the manufacturer itself and Dell’s
computers can be sold through the physical
channel through its supply chain partners.
• Internet has provided them a channel because
of which they now directly interact with the
customer.
• And in fact, Dell, though started very later than
that of IBM is doing well then former
65. C2B CASE
• C2B transactions are those where the customers
actually interact with the business through giving
feedback, mostly through giving feedback.
• 1st product that Amazon was started selling was
books with its headquarter at Seattle, Washington,
United States.
• And when the company started selling books, it
was a Internet company. It was not very well-
known then
67. Business Model
• A business model articulates the logic and provides data
and other evidence that demonstrates how a business
creates and delivers value to the customer.
• It also outlines the architecture of revenue, cost and
profit associated with the business enterprise delivering
that value.
• E-Business existing because of the Internet and in turn,
they are having a good business model to deliver value
to the customer, to satisfy the customer and in turn, they
are making revenue. They select the technology and the
features to be embedded into the products and service.
68. E-Business Models
• E-business: The businesses that started
because of the web.
• And the traditional model physically, the
organisation is existing, it is dealing with some
kind of product and service where Internet is
just used as a tool to facilitate it further to
improve the business.
69. Business Models on Web
A few successful models. It does not mean that a
company has to follow exactly one of these models. A
company can have multiple of these models and these
models are not exhaustive.
• Brokerage model,
• Advertising model,
• Infomediary model,
• Merchant model,
• Manufacturers or direct model,
• Affiliate model,
• Community model,
• Subscription model and
• Utility model.
70. Brokerage Model
• The brokers are market-makers who bring buyers and
sellers together and facilitate transactions.
• They do not have any product or service of their own. They
are just a market broker or the facilitator.
• They are also 3rd party service provider, they are brokers.
• Within this segment, within this business model, it can be
both, B2B, either B2B, B2C or C2C kind of business.
• There are search agents, there are price bots or shop bots
who actually try to collect data from various sources about
the prices available in the market and provide services.
• Brokers charge a fee or some commission for each
transaction and that is how they generate money.
71. Brokerage Model:Example
Metal-junction, is also a brokerage model, they
do not buy, they do not make steel, they do not
sell steel but they are just a facilitator.
• Auction broker: e-Bay
• Transaction Broker: Paypal
• Virtual Market: Amazon.com
72. Advertising Model
A very successful model is advertising model.
• Web advertising model is an extension of the
traditional media broadcast model. Website
provides contents and services mixed with
advertising messages in the form of banner ads, it
can be a line ad as well.
• Providing a place to the company for hosting the
advertisement, it charges some money. Once you
click on this, you visit the site, again they will
charge some money. If you do not click, probably
you will not be charged anything.
73. Advertising Model;Example
Example: Yahoo, classified site monster,
Monster. Here the model is a bit different. It is a
3rd party service provider, It is a kind of broker
but it takes the advertisement responsibility for
other companies.
Other companies put their advertisement through
this. So it shows the advertisement and if and for
hosting the advertisement, it charges some money
and for contacting jobseekers with that of the
company, it takes some money.
74. Example 2
• Google does auction on adwords. It does
auction on adwords. That is how it arranges
the advertisements on the screen. So this is
actually Google’s advertisement model.
• The marketers who would like to be
advertising with the way Google provides a set
of adwords and the auction takes place on the
adwords and the highest paid person gets the
place on the top.
76. Informatics
• DoubleClick as a tool, they have every
opportunity to know the user behaviour, what
their users are looking at, what all it can do for
their users, they try to analyse and ultimately, they
generate the infomediary, they create their money
from selling information whether it is
DoubleClick network, advertisement network or
whether it is Nielsen’s rating, the data that it tries
to sell, both of them are actually infomediaries.
revenue.
77. Informatics:Example Contd..
Google analytics provides companies with the statistics
about what kind of customers visited their site, wherefrom
they visited that, and many statistics about the customers
who visit.
• Working: Within webpages, there is a chunk of code which
is to be inserted within the webpages of a company. And the
customer’s visit pattern, their behaviour pattern, their details
how they are browsing through company site, everything is
collected and sent to the Google. So any time user login to
Google analytics of a company, then it can actually see the
customer behaviour pattern geographical region from where
they are coming, what all advertisements, what is their
interest pattern depending on, the kind of links they click
through on Google search and it collects data because of
Google search, Google is now almost to everything.
78. Merchant Model
• In merchant models they are wholesalers and
retailers of goods and services on the web.
• There are many virtual merchant. For example,
Amazon,it does not have any products.
• By virtuals it mean, they truly do not have their
own stocks, warehouses, et cetera but they have
the list of products available with them and
depending on what the customer demands , they
tries to arrange that product and sell.
79. Contd..
• Catalogue merchant. These catalogue merchants
are specifically for clothing. It brings in various
brands together, it is a store. The retailer cloth
store actually is not producing on its own but it is
a cloth store and deals with various brands and
one can buy from, choose from any of the brand.
• Then, there is another category called Bit
vendors, who sell audios, videos and so on. The
example is Apple iTunes Music Store.
80. Difference in Broker N Merchant
Model
The direct sellers of certain products. They are
the merchants who directly sell the product,
responsible, starting from its buying, Let us
say they are dealing with Amazon is dealing
with a specific book, buying from the
publisher and ending the cycle by sending it
through, using its supply chain to send it to the
end customer, the whole thing is managed by
the company ie Amazon.
81. Manufacturer or the Direct model.
Dell is one example of this manufacturer model.
It is about selling its own product directly to the
customer.
• Reaching the buyers directly and thereby
compress the distribution channel.
• This manufacturer model can be based on
efficiency, improved customer service and better
understanding of customer’s preference and that
is how they make money.
82. Utility Model
• It measures the measures and bills the user based
on the actual usage of the service and then user
pay. For example, this Internet service providers
in some parts of the world operate as utilities.
• They allows users to purchase access to the
content in a metered portion which can be
measured, the number of webpages user see,
number of advertisements seen, number of lists
browsed and so on.
83. Subscription model
Subscription model, the users are charged on a
periodic basis, either daily, monthly or annual.
• Netflix is a content provider. It provides videos
and movies and all.
84. Affiliated Model
This affiliate model provides a purchase point click through to
a merchant. It is a pay for performance model. If an affiliate
does not generate sales, it represents no cost to the merchant.
Otherwise, it provides some money.
• Example: Banner ad by DoubleClick is posted on say with the
Amazon site, as long the banner is displayed, the site actually
provides the space and no money is charged by the site, on
Amazon Or there may be some very minimal fee they might be
charging to display the advertisement.
• But the moment somebody clicks the advertisement, who will
be paid? DoubleClick will be paid and Amazon will be paid
their shares. So that is how DoubleClick gets affiliated with
Amazon and generates its revenue. So it is affiliation model.
85. Community Model
Example
• The open source software platform like that of Red Hat Linux.
It is actually open source and all the open source products, are
they really open source? Are they really free?
• To the users at the lower segment, they are free. But the
moment one need a very specialised technical component of
that open source platform, they need to pay. And when one
need to pay, that is actually a huge amount of money, it is not
small amount. And that is how they charge.
• Many times, they will be asking for donations. If somebody is
happy with the kind of product or service they are providing,
people can donate. That is how they will be surviving.
86. Contd..
• LinkedIn user and as a LinkedIn user, if one would like
to connect to a specific company or one would like to
have their profile being showed up to specific groups to
increase visibility, then one has to become a premium
member and there they charge some additional money
for that the user.
• User contribution model used by not-for-profit radio
and television broadcasting is extended to the web. The
model is based on the creation of a community of users
who support the site through voluntary donations.