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Chapter Six Theory of business and I.T. Systems Agenda Reasons for introducing new IT. Cost/ Benefit Analysis. Tangible costs or benefits. Intangible costs or benefits. General System Theory (GST). Cybernetics. Reasons for introducing new IT Replacement. Tangible Benefits. Quality.

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Presentation Transcript
agenda
Agenda
  • Reasons for introducing new IT.
  • Cost/ Benefit Analysis.
  • Tangible costs or benefits.
  • Intangible costs or benefits.
  • General System Theory (GST).
  • Cybernetics.

Mr. Yazan Al-Zawahreh

reasons for introducing new it
Reasons for introducing new IT
  • Replacement.
  • Tangible Benefits.
  • Quality.
  • Security.
  • Better management of information and better decision making.
  • Competitive advantage.
  • Transformation.

Mr. Yazan Al-Zawahreh

cost benefit analysis
Cost/ Benefit Analysis
  • It is an analysis to find that the benefits exceed the costs of a proposed information system.
  • The idea is to ensure that benefits of new system exceed the costs, and then to select the best of several proposals.

Mr. Yazan Al-Zawahreh

tangible costs or benefits
Tangible costs or benefits
  • Are things that can be measured or estimated, e.g. salaries, cost of equipments, increased speed of activity etc
  • Common tangible costs:
    • Example: - New equipments.

- Extend the work, or opening new branches.

  • Common tangible benefits:
    • Example: - Manpower savings.

- Avoiding maintenance costs of old system.

Mr. Yazan Al-Zawahreh

intangible costs or benefits
Intangible costs or benefits
  • Are those subjective things that can not be easily measured or estimated, e.g. low morale, improved output quality, Positive societal impacts
  • Common intangible costs:
    • Example: - Low morale in the organization.

- Weaker security.

  • Common intangible benefits:
    • Example: - More flexible user control over the system.

- Improved output quality / user interface.

Mr. Yazan Al-Zawahreh

general system theory gst
General System Theory (GST):
  • General System Theory (GST): It states that any system is composed of a set of interacting components within the boundary which separates the system from the outside world.
  • The common characteristics of most of the systems include the concepts like the following:

Mr. Yazan Al-Zawahreh

general system theory gst8
General System Theory (GST):

Cont’d

  • Components: System is a collection of components.
  • Boundary: There is a boundary within which the system works.
  • Interaction: The components of the system interact with each other and they could be tightly or loosely coupled.
  • Processing: Systems change inputs into outputs.

Mr. Yazan Al-Zawahreh

general system theory gst9
General System Theory (GST):

Cont’d

  • Hierarchy: Systems can be divided into further subsystems.
  • Control: Systems can be controlled by themselves or externally.
  • Holism: Parts of the system affect each other so they should be considered together .
  • Deterministic & Stochastic properties: Some systems are predictable while others are estimated using probability.

Mr. Yazan Al-Zawahreh

definition cybernetics
Definition: Cybernetics
  • Cybernetics: It is the part of the system theory that is concerned with communication and control.

Mr. Yazan Al-Zawahreh

cybernetics
Cybernetics:

Cont’d

  • i. Communication: Good communication depends on Common language, Operative link, Rate of data transfer, Noise level (should be low)
  • ii. Control:Control of a business process can take place before (pre-control), during(concurrent), or after(post) any event that disturb the process.

Mr. Yazan Al-Zawahreh

cybernetics12
Cybernetics

Cont’d

  • Control loops:
  • Open loop system: produce output in a preset way with no control at all
  • Feedback loop: output is compared with a predetermined standard or target value.
  • Feedforward loop: future output is predicted and compared with the target value,

Mr. Yazan Al-Zawahreh