Module 3
Information Systems Analysis and Design
InformatIon SyStemS analySIS and deSIgn
Applications of Information System
Information System for Strategic Advantage
Strategic role for information system
Breaking business barriers and Improving business qualities
Business process reengineering
Information system analysis and design: Information SDLC
Stages in System Analysis – Structured SAD and tools like DFD
(Data Flow Diagram)
Context Diagram Decision Table
System Development models
Emerging Concepts and Issues in Information Systems
Information System
Information System(IS) are used across virtually all sectors to collect ,
process, store and distribute information.
Information System can be any organized combination of people, hardware,
software, communications networks , data resources and policies and
procedure that stores, retrieves, transform and disseminate information in an
organization.
People rely on modern information system to communicate with one another
using variety of physical devices(hardware), information and
procedures(software), communication channels(networks) and stored data(data
resources) – O’Brien & Marakas , 2011
Information System
Information System(IS) can play a crucial role in providing
organization with strategic advantage.
Strategic advantage refers to the ability of a company to outperform
its competitors by using its resources effectively.
Information system can contribute significantly to achieving this
advantage.
Applications of Information Systems
Application of Information systems organized by area:
Business and Management
Enterprise Resource Planning (ERP): Integrates core business processes
like HR, finance, inventory, and supply chain (e.g., SAP, Oracle).
Customer Relationship Management (CRM): Helps manage customer
data, sales, and service interactions (e.g., Salesforce).
Business Intelligence (BI): Supports decision-making through data
analysis and visualization tools (e.g., Power BI, Tableau).
E-commerce Systems: Support online sales, payments, and logistics (e.g.,
Amazon backend systems).
applIcatIonS of InformatIon SyStemS
Education
Learning Management Systems (LMS): Platforms for managing
online courses and student information (e.g., Moodle, Google Classroom).
Student Information Systems (SIS): Store and manage student
records, grades, and attendance.
Virtual Classrooms & Collaboration Tools: Enable online teaching
and learning (e.g., Zoom, Microsoft Teams).
Applications of Information Systems
Healthcare
Electronic Health Records (EHR): Maintain patient data and
medical histories.
Telemedicine Platforms: Facilitate remote consultations and
monitoring.
Hospital Management Systems: Streamline hospital operations
like scheduling, billing, and lab results.
Applications of Information Systems
Banking and Finance
Core Banking Systems: Enable transactions, account management,
and digital banking.
ATM and Mobile Banking: Provide remote banking access.
Fraud Detection Systems: Use machine learning to identify suspicious
activities.
Applications of Information Systems
Manufacturing and Supply Chain
Supply Chain Management Systems: Optimize sourcing, inventory,
logistics, and delivery.
Manufacturing Execution Systems (MES): Control production
processes in real-time.
Automation and Robotics Control Systems: Integrate information
systems for smart manufacturing.
applIcatIonS of InformatIon SyStemS
Communication and Media
Content Management Systems (CMS): Manage digital content (e.g.,
WordPress, Drupal).
Social Media Platforms: Use IS to store and analyze massive user data.
Streaming Services: Rely on IS for recommendation engines and user
management (e.g., Netflix).
Applications of Information Systems
Transportation and Logistics
Fleet Management Systems: Track vehicle status, routes, and
maintenance.
Airline Reservation Systems: Handle bookings, ticketing, and check-
ins.
Smart Traffic Management: Monitor and optimize traffic flow using
sensors and data analytics.
Applications of Information Systems
Retail and Inventory
Point of Sale (POS) Systems: Manage sales, inventory, and customer
data.
Inventory Management Systems: Track stock levels, reorder items,
and manage suppliers.
Customer Analytics Systems: Understand buying behavior and
personalize marketing.
Applications of Information Systems
Security and Defense
Cybersecurity Systems: Monitor networks and prevent data
breaches.
Surveillance and Monitoring Systems: Use sensors, cameras, and
data analytics.
Military Information Systems: Support command, control,
communication, and intelligence.
When InformatIon SyStem BecomeS
StrategIc:
An information system (IS) becomes strategic when it goes
beyond supporting day-to-day operations and begins to
shape business goals, drive innovation, and create competitive
advantages.
In this role, IS is not just a back-office utility but a core enabler
of business success and growth.
When Information system Becomes
Strategic:
It's integrated into business strategy, not just strategy.
It delivers long-term benefits, not just short-term
efficiencies.
It supports transformation, not just automation.
Information System for Strategic
Advantage
Several ways information system can be used for strategic advantage:
1. Data-Driven Decision Making :
Information system can provide access to vast amount of
data, allowing organization to make informed decision.
By analyzing this data, companies can identify trends,
customer preferences and market opportunities that
can give them a competitive edge.
Information System for Strategic
Advantage
2. Efficiency and cost Reduction:
Information system can streamline business processed,
automate routine task and reduce operational costs.
This efficiency can lead to cost savings that can be
reinvested in innovation or used to lower prices,
making the organization more competitive.
InformatIon SyStem for StrategIc
advantage
3. Enhanced customer Relationship:
Customer relationship management(CRM) systems help
organization better understand their customers needs and
preferences.
By tailoring product and services to individual customers,
companies can build stronger customer loyalty and gain
a competitive advantage.
Information System for Strategic
Advantage
4. Supply Chain Optimization:
Information system can improve supply chain management
by providing real-time visibility into inventory levels,
production schedules and logistics.
This enables organization to reduce lead times, lower
inventory cost and respond more quickly to changes in
demand.
Information System for Strategic
Advantage
5. Market Analysis and Competitive Intelligence:
Information system can gather and analyze market data
and competitive intelligence
It helping organizations identify market trends, monitor
competitors' action and develop strategies to say ahead
in the market.
Information System for Strategic
Advantage
6. Innovation and product Development:
Information system can facilitate collaboration and
communication within and across teams, Speeding up
the product development process.
This agility can help organization bring new products and
services to market faster than their competitors.
InformatIon SyStem for StrategIc
advantage
7. Digital Marketing and Online presence:
Online marketing, social media and e-commerce
platforms are all enabled by information systems.
Effective digital marketing strategies can help organizations
reach a wider audience, engage with customers and
compete effectively in the digital marketplace.
Information System for Strategic
Advantage
8. Risk Management:
Information system can assist in identifying and
mitigating risks, whether they are related to
cybersecurity, regulatory compliance or market
fluctuations.
A proactive approach to risk management can provide a
competitive advantage by minimizing disruptions.
Information System for Strategic
Advantage
9. Global Expansion:
Information system can facilitate global expansion by
connecting geographically dispersed teams and
enabling cross-border operations.
This allows organizations to tap into new markets and
diversify their revenue streams.
Information System for Strategic
Advantage
10. Customer Feedback and continuous Improvement:
Feedback systems and analytics tools can help
organizations gather customer feedback and
continuously improve their product and services.
This iterative process can lead to higher customer
satisfaction and loyalty.
Key role of InformatIon SyStem
There are three vital role that information system can
perform for business enterprise:
Support of business process and operations.
Support of decision making by employees and managers.
Support of strategics for competitive advantage.
Strategic role for information system
The strategic role of an information system (IS) refers to how
it helps an organization achieve its
Long-term goals
Gain competitive advantage
Respond effectively to changes in the market.
It’s not just about automating processes or storing data — it’s
about aligning IS with the organization’s overall strategy.
Strategic role for information system
1. Supporting Competitive Advantage
Helps companies differentiate their
products/services, reduce costs, or focus on place
markets.
Example: Amazon’s recommendation engine uses data
analytics to increase sales and customer satisfaction.
Strategic role for information system
[Link] Decision-Making
Provides real-time data, predictive analytics, and
decision support tools to enhance strategic planning.
Example: BI (Business Intelligence) tools that help
executives identify market trends.
StrategIc role for InformatIon SyStem
3. Enabling Innovation
Facilitates the creation of new products, services, or
business models.
Example: Uber and Airbnb used mobile and cloud
technologies to disrupt traditional industries.
Strategic role for information system
4. Enhancing Operational Efficiency
Streamlines workflows and automates processes to cut
costs and improve service.
Example: ERP systems integrating supply chain, finance,
and HR functions.
Strategic role for information system
5. Strengthening Customer and Supplier Relationships
CRM and SCM systems improve communication,
collaboration, and satisfaction.
Example: A loyalty program system that customizes
rewards based on purchasing behavior.
Strategic role for information system
6. Driving Globalization
Supports international operations through communication,
collaboration tools, and standardized processes.
Example: Cloud-based platforms that connect global
teams and systems.
StrategIc role for InformatIon SyStem
7. Creating Strategic Information Assets
Data and analytics become a critical asset for identifying
new market opportunities or risks.
Example: Data monetization strategies in fintech and
telecom sectors.