FIS 431/631 Financial Information Systems: Analysis and Design Introduction Joe Callaghan

1. FIS 431/631Financial Information Systems: Analysis and DesignIntroductionJoe Callaghan Oakland University Department of Accounting & Finance

2. IntroductionCourse Overview • Review Tentative Course Syllabus • Prerequisites • Instructor Info • Ways to Communicate • Course Resources • Grading • Other Handouts/Readings • Questions?

3. Course Overview • M.O.T.E. framework • Planning Overview • Analysis Overview • Design Overview

4. MO - Model-Oriented: We use the SDLC logical framework: a systematic and orderly approach to systems development We implement this framework by using the IE set of methodologies(developed by James Martin, 1989) The MOTE Approach

5. Stages of the Systems Development Life Cycle Planning Analysis Design Construction

6. Systems Planning • Also called Information Strategy Planning (ISP) • Concerned with top management goals, targets, and critical success factors • Concerned with how IT can be used to create new opportunities or competitive advantages • An overview model is created of the enterprise, its functions, data, and information needs • The overview model is split into areas appropriate for analysis

7. Decides what processes are needed to implement business strategy Decides how processes interrelate Decides what data is needed Identifies areas for systems design Involves users extensively Creates activity models (FHD, PM) Creates a fully normalized data model (ERD) Creates interaction models (REA) Identify PLDs, which contain business logic to enforce business rules Remains independent of technology and current systems Systems Analysis

8. Systems Design • Implements processes (conceptual views of what actions need to be carried out – from systems analysis) into procedures (practical views of possible ways to implement processes) • Builds windows, interfaces, dialogue boxes, forms • Maps to technical environment

9. Systems Construction • Generates programming code which results in executables • Physically structures the database • Design is linked to construction by means of prototyping

10. TE - Tool-Enhanced Software development tool used is Oracle’s Designer 9i™ The MOTE Approach (continued)

11. Tool: Oracle Designer 9i™

12. Designer 9i™ Implements Entire Systems Development Life Cycle... Phases: PLANNING ANALYSIS DESIGN ENVIRONMENT MAPPING CONSTRUCTION

13. Designer 9i™ Tool Outputs Organization Hierarchy, ERD, FHD, PM, PLD Planning & Analysis Interfaces, Mappings Design Generated Code, DDL (Java, PL/SQL) Construction

14. Advantages of the MOTE Approach • rigorous, yet flexible framework • structured logic, but not language-specific • relational database, but not vendor-specific • support for varied technological environments, e.g., block mode, batch processing, client-server, web-enabled systems • produces IT-savvy graduates

15. Systems Planning Overview • Desired Orientation • IPSO • Business as a System • Management Functions (Peace)

16. Desired Orientation • Systems Viewpoint • Input (resources), Process (convert), Storage (data), Output (product/service) (IPSO business template or pattern) • RDBMS vs. Legacy Systems • Tables vs. Journals & Ledgers • Signing Convention vs. Drs & Crs • Cross-functional vs. “Stovepipe” Systems • Diagramming vs. coding • A Focus on a Variety of User Views • versus only what accountant wants

17. Modeling A Business Cash Disbursements Cash Receipts $ $ “Suppliers” Enterprise Customers AMP: Raw Materials, Supplies, Labor, Finance, Fixed assets MSC: Marketing Sales Collection Delivery Convert: Operations Job Costing

18. Customers Suppliers Requestinput resources Pay for input resources Supply goods and services Receive payment ORGANIZATION AMP Processes ConversionProcesses MSC Processes Provides Finished Goods and Services Provides Input of Resources to Organization Activity Models:Template for Decomposition of Business Processes (IPSO template) Add value Relational Database Management System

19. Business Process Types • Acquisition/ Maintenance /Payment Processes - (AMP) - acquire, maintain, and pay for resources needed (e.g. labor, finance, fixed assets, raw materials and supplies, research & development) to provide goods and services. • Conversion Processes - adding value; converting the resources into goods and services for customers. • Marketing/Sales/Collection Processes (MSC) – marketing, delivering goods and services to customers, and collecting payment.

20. Traditional Accounting “Stovepipe” Systems

21. Managing Business and Information Processes (PEACE) Should Do Do Feedback Control; Evaluate Plan Execute And Trigger Measures Business Rules Business Processes Information System Data Record Data & Convert to Information How to Value Add

22. P - Plan Planningrequires leaders to define the business objectives, to prioritize business processes, and to provide a blueprint for achieving the objectives. They must identify opportunities available to the organization as well as assess the risk associated with each opportunity.

23. E - Execute Managers executetheir plan by dividing business processes into smaller activities (events), assigning people to perform each activity, and motivating them to do a good job. A clearly defined plan increases the likelihood of proper execution. A - And

24. C - Control Control is exercised by reviewing the results of an activity or an entire business process to see if they are consistent with expectations. The review may cause a change in expectations or a change in the way an activity or a process is performed to bring the actual results in line with expectations.

25. E - Evaluate Periodically, managers evaluate the operating results to see if the business processes are achieving the organization's objectives. The results of the evaluation are used to modify the plans, objectives, and expectations.

26. Business Processes Management Activities Manage Business Processes AMP Processes Plan Capture Data Execute & ConversionProcesses Provide Reports Control MSC Processes Evaluate Manage Business Processes Relationship between Business Processes, Information Processes and Management Activities Information System RDMS: Data

27. Managing Organizations:Business & Information Processes • PEACE (Management) • Plan • Execute, And • Control • Evaluate • Business Processes • AMP: Acquire, Maintain, Pay Factors of Production • Convert: Add value, particularly unique to organization • MSC: Market, Sell/Provide, Collect payment • Information Processes • Record, Maintain, Report • Convert Data into Information

28. Overview of Systems Analysis

29. Modeling • A model is a representation of reality • Systems analysts seek to understand an organization by building a representation of the business and its workings, called a business model (also conceptual or logical model) • A business model includes three primary types of models: (1) a data model, (2) activity models, and (3) interaction models

30. Analysis Tasks Data Analysis Interaction Analysis Analysis Model Confirmation Design Planning Activity Analysis Current System Analysis

31. Data & Activity Analysis • Done in parallel • Developed iteratively • Ask User • Document • Feedback • Refine • Deliverables - Entity Relationship Diagram, Function Hierarchy Diagram, Process Models

32. Interaction Analysis • Examines the relationships and interactions between data and processes • Three techniques • REA analysis • Entity type life cycle analysis • Process logic analysis

33. Current Systems Analysis • Provides validation of understanding • Planning for transition • Preparation for conversion • Identification of reusable components

34. Model Confirmation • Checks business area model for correctness and completeness • Comparison with current systems • Stability analysis

35. Business Modeling In Analysis: An Overview of the MIS Approach ERD Data Model User Feedback PLD, ELC Interaction Models Analysis Model Confirmation Activity Models Design FHD, PM IE captures information at the highest possible level of abstraction and refines each element until all of them combine to form executing applications

36. Analysis Tasks with REA Interaction Modeling FHD, PM Activity Analysis REA Interaction Analysis 1 ERD PLD, ELC Data Analysis Systems Design Interaction Analysis 2

37. Types of Models 1 • Data model: The ERD is a data model that depicts data (entity types, attributes) and the relationships enforcing business rules between entity types • The primary goal is to accurately depict the fundamental elements of business information, i.e., entity types, attributes, and associations between entity types • The data model is implemented as a database in a developed system (central to the IS)

38. ERD with Normalization

39. Types of Models 2 • Activity models: Records the activities of interest to the business (i.e., the things the business does or should do). • Involves decomposition of business processes from the highest level (AMP of Resources, Conversion Processes, MSC Processes) to the lowest (elementary processes) • Also involves the specification of process dependency events, to refine decomposition of the processes.

40. Types of Models 3 • Interaction models: Define how things the business does (activities/events) affect things of interest to the business (data) • The REA model is an interaction model • Faculty at OU have combined the IE notation of an interaction model with the accounting REA model • Interaction modeling provides a detailed basis for systems design, in the form of a completed business model

41. Overview of Systems Design

42. Introduction • Analysis precedes it and is prerequisite to it • Construction and Implementation is next stage • Consists of two parts • External • Internal or Technical

43. Prerequisites to Design • Analysis Deliverables: • Data Model: ERD • Activity Model: FHD, PM • Interaction model: REA, PLD • Use Belgium Chocolate • Website link • See models and Access database

44. Design • External • Goal: develop system as it appears to users • Who are the users? • What are the locations? • What are the technical possibilities? • Internal (Technical) • transform logical data model into a physical representation of the database • transform activity models into executable system

45. Tasks • Choose Application Style • GUI • Client Server • Terminal based • Batch, perhaps using legacy systems • Designing the Dialog • Data Flow Diagrams • Design the Interface • Windows, Dialog boxes, controls • Design the Procedure Logic (PrAD) • Triggers, Procedures and Reports • Design the Data Structure

46. Design Deliverables • Interface Layouts, using views and Interface Design Tool (Forms Developer) • A Set of Procedural Logic • Report requirements (Reports Developer) • Data Structure List

47. GUIs • Create Window • Specify Window characteristics • Exercise to re-enforce learning • Add menu items to a window • Specify menu items • Create Controls • Add controls that implement views • Add other controls, e.g. OK, Cancel • Map Import/Export Views • Add Events, invocation of system logic

48. Client/Server • Presentation logic, Data manipulation logic, Data Management • Remote Presentation (Presentation management only on Client, all logic on Server) • Distributed Process (Presentation Logic on Client, others on Server) • Remote Data Access (Only Data management on Server)

49. Technical Issues • Oracle Designer/Developer • RDBMS: Oracle 8i, ODBC • Code: PL/SQL, Java • Student Models • E-mail, Web-page, etc. • Oracle accounts • Production server • Development server

50. Gen to Designer