GENERAL SYSTEM MODEL OF A FIRM

is a physical system that is managed through the use of a virtual system

is an open system that it interfaces with its environment

takes resources from its environment, transforms the resources into products or services, and returns the transformed resources to the environment

Flow of resources from the environment, through the firm, and back to

Flow of virtual resources

Flow of Physical Resources are at the

General Systems Model Includes the

It includes: personnel, material, machines, and money
Personnel are hired by the firm then…
Transformed to higher skill levels through T&D
Materials enter in the firm as raw input & transformed in to finished goods
Machines are purchased, used and scrapped
Money enters in firm in the form of sales receipts, investment, and loans and transformed into payments to suppliers, tax
Physical resources are used to produce to product & services

Data, information and info in the form of decisions
Two way flow of data and info that connects the firm to its environment

It enables the firm to control its own operation includes
-The performance standards the firm must meet
-The firm’s management, and
An information processor that transforms data into information

Composed of the virtual resources
Data are gathered from the firm & from the environment and entered into the into information processor, which transform data into info
Info goes to management to make decisions to affect necessary changes in the physical system
Info processor uses standards to determine when the firm is not performing as planned

As we know environment is very important in the firm’s success
Firm exist for the purpose of providing products and services that meet environment needs
Environment varies firm to firm
School is different than sports ground and so on
The environmental elements are organizations & individuals that exist outside the firm
These elements exist in a larger system called a society

The Firm in its environment (environment of firm)

Manage resources from supplier to firms and then to customers
It should be timely and efficient
It includes following activities:
Forecasting customer demand
Scheduling production
Establishing transportation networks
Ordering replenishment stock from supplier
Receiving stock from suppliers
Managing inventory- RM, work in process, finished goods
Executing production
Transporting resources to customers
Tracking the flow of resources from supplier, through the firm & customers

consist of hardware, software, data, people and procedures that work together to produce quality information

sets of components that work together to achieve a common goal

System Development Life Cycle Phases

Review project requests
Prioritize project requests
Allocate resources
Identify project development team

Conduct preliminary investigation
Perform detailed analysis activities
Study current system
Determine the user requirements
Recommend solution

Acquire hardware and software, if necessary
Develop details of system

Develop programs, if necessary
Install and test new.system
Train users
Convert to new system

Conduct post-implementation systems review
identify errors and enhancements
Monitor system performance

What are guidelines for system development?

Who participates in the system development life cycle?

Responsible for designing and developing information system

Liaison between users and IT professionals

Formed to work on project from beginning to end

Consists of users, systems analyst, and other IT professionals

Project leader-one member of the team who manages and controls project budget and schedule

Measure of how suitable system development will be to the company

Four Feasibility Test

Collection and summarization of data and information

Includes reports, diagrams, programs, and other deliverables

What are six data and information gathering techniques?

What are some reasons to create modify an information system?

Formal request for new or modified information system (Also called project request)

Begins when steering committee receives project request

Steering committee- decision-making body for the company

Functions of Steering Committee

Conduct preliminary investigation, also called feasibility study

Perform detailed analysis

Determine exact nature of problem or improvement and whether it is worth pursuing

Findings are presented in feasibility report, also known as a feasibility study

1. Study how current system works

2. Determine user's wants, needs. and requirements

3. Recommend solution

Sometimes called logical design

assesses feasibility of each alternative solution

Recommend s the most feasible solution for the project

Presented to steering committee, which decides how system will be developed

What are possible solutions?

designed for particular industry

meets needs of many companies

Acquire hardware and software

Develop all details of new or modified information system

What is needed to acquire new hardware and software?

What are three basic documents used to summarize technical specifications?

Identifies product(s) you want

Vendor quotes price(s) for listed product(s)

Vendor selects product(s) that meet(s) your requirements and then quotes price(s)

Less formal method that uses standard form to request information about product or service

How do systems analysts test software products?

Detailed design specifications for components in proposed solution

Includes several activities:

Database design

Input and output design

Program design

Sample of input or output that contains actual data

Working model of proposed system

Beginning a prototype too early may lead to problems

Software tools designed to support activities of system development cycle

Purpose is to construct, or build, new or modified system and then deliver it to users

In Order:
Convert to new system

Train users

Install and test new system

Develop programs

What are the three types of tests performed by system developers?

Verifies each individual program works by itself

Verifies all programs in application work together

Verifies application works with other applications

Showing users exactly how they will use new hardware and software in system

Provides ongoing assistance after system is implemented
In Order:
Conduct post-implementation system review-meeting to find out if information system is performing according to expectations
Identify errors
Identify enhancements
Monitor system performance