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Business Information Systems

Business Information Systems (Vrije Universiteit Brussel)

Studocu is not sponsored or endorsed by any college or university

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Business Information Systems

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2. Basic Concepts
5) Servers:
Some introductory concepts: Computer only for calculation and storage
(no screen, no keyboard)
1) Hardware: Ex: mail server, web server, ...
Increasingly present in our modern society
6) Internet:
RAM-Random Access Memory
- the biggest internetwork
- input ROM-Read Only Memory - in OECD penetration rate of + - 83%
- output
- computer: 7) Computer architecture:
Fundamental organization of the computer
• memory: RAM/ROM system
• CPU (Central Processing Unit) - Phase 1: mainframe
external memory: RAM\ROM
internal memory: hard disk,USB-sticks,CD - Phase 2: PC & client server
2) Software:
- Phase 3: browser / cloud
- sequence of orders formulated by programs
- conversation into machine language: 8) Processes:
the set of symbolic instruction codes A business process is a sequence of
usually in binary form that is used to steps / actions with the aim of generating
represent operations and data in a a product or a service
machine
Start in '90: need for operation between
- modules: the various actors / departments within
• reuse an organization
• less complex
• splitting into sub-problems 9) Information System:
• error module easier to find the combination of IT hardware, software,
processes and people who use it
• collaboration with several people
- besides programs, software also can be
DATA!!!

3) Database:
- organized collection of data stored in a
computer
- relational data
4) Network:
- multiple computers to communicate and
exchange data
- types: PAN, LAN, MAN, WAN
- protocols:
• TCP: Transmission Control Protocol
• IP: Internet Protocol
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3. Algorithm Today, algorithms are used in many

applications such as:
Steps in programming: - the functioning of computers,
1) Problem definition: - cryptography (techniques for secure
The problem will be fully and accurately communication)
defined: - information routing (process of selecting a
from which initial situation is started, which path for traffic in networks),
results must be obtained and what is the link
between both. - planning and optimal use of resources,
2) Solution Strategy: - image processing,
This is the choice of a solution method and of - text processing,
the data representation: - bio-computing,
-trying to divide the problem into smaller sub- - etc.
problems
-agreeing what will happen in each sub-
problem An algorithm is a method to solve a problem:
- a sequence of actions / commands / rules
3) Representation of the algorithm:
- starting from a given initial situation
Eg: Flow Chart, Nassi-Schneidermann-diagram,
Pseudo Code, ... - leading to a certain goal
4) Programming: - within a finite time
When encoding, the fully elaborated algorithm
translated into the selected programming Algorithm Representation
language An algorithm can be represented, a.o., by:
E.g.: Ada, Basic, C ++, Cobol, Delphi, Fortran, - a Flow Chart
Java, Javascript, Pascal, Python, R, Visual
Basic, ... - a Nassi-Schneidermann-diagram (blockdiagram)
5) Compiling: - Pseudo Code
- to detected eventual syntax errors A flow chart is a:
- translation into machine language (binary 1/0) - scheme;
- compiler versus interpreter - with basic figures;
6) Testing: - instructions are included in the figures;
- results must also be logically correct - the figures are connected by lines / arrow's
- compare with results obtained in a different
way Note: at each operation figure (rectangle) only
- test all different cases one line arrives and only one line leaves!
7) Documenting:
All information that will help third parties to
understand, modify, improve or complete
the program
8) Maintenance:
- after a while the program eventually has to
be updated
- report changes in the documentation !!!
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Flow Chart - basic figures: 2.3) case

- Process
- Input / Output
- Choice
- Begin / End Begin
- Comment 3) Iteration (or repeat assignment or loop)
3.1) While
- Sub-process (procedure)

Overview algorithm representation

1) Sequence:

3.2) Repeat

2) Selection (or conditional assignment)

2.1) If then 3.3) For

Note: For X from E1 to E2 [Step E3]

Step being the value of the counter which
is moved If no Step value then it is
2.2) If then else standard set to 1

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4. Programming - Interpreters: every instruction is

executed immediately after it has
Generation programming languages: been translated
• BASIC, PROLOG, PYTHON
1) First-generation programming language:
- machine level languages Traditional programming concepts:
- no translator to compile or assemble
Data types:
- made of binary numbers, represented by 1s
and 0s 1. Single predefined types
- instructions are executed directly by the - Integer: Whole numbers (positive and
central negative)
processing unit
- Float (real): With numbers after the
2) Second-generation programming language: comma (floating point)
Assembler:
- uses a mnemonic to represent each low- - Character: Symbol (e.g. a letter)
level machine instruction or opcode - Boolean: True / false
Remarks:
Properties: - pseudo-code has no types
- One-to-one relationship between machine - some programming languages (such as
instructions and Python) also do not:
assembler instructions
- Inherently machine-specific • untyped languages
- Conversion of program in assembler • variables do not receive a type
language into machine language by mean of an declaration
assembler program - non-typed languages, the compiler/
- The first assembly language was developed interpreter will determine the type of each
in 1947 by Kathleen variable before converting into machine
instructions
3) Third-generation programming language: 2. Self-built single types
- generational way to categorize high-level 2.1 Enumerated types or list of vector
computer programming languages Ex: if, for,
while - in older languages (C, C ++, Java):
- considered high-level because they are identical data units
closer to human languages - in modern languages (Python, javascript):
- are much more machine independent and mixed types
more programmer friendly - always 1-dimensional
- each primitive corresponds to multiple - number of elements can grow and shrink
machine instructions 2.2 Interval types
The translation to machine language is carried - twenties = 20 .. 29
out automatically by special programs
- compilers: fully translate the program into
machine code
• FORTAN, PASCAL, COBOL, MODULA
• in first phase: compiler will check for syntax
errors
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Memo: Files are stored in the external memory!
All other variable types in the internal memory.
Reading elements of the file one by one and
storing them in the internal memory.
Special case is the text-file
Use of EOF (End of File) & EOLN (End of Line)

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3. Self-built multiple types Calculation rules in expressions

3.1 Array type - Are executed from the left to the right
- block of identical data units - Priorities:
- with a fixed number of dimensions • Brackets
(1 = row, 2 = matrix,> 2 = tensor) • Functions
- with a fixed number of elements in each • Power ( ^ or ** )
dimension •*/
3.2 Aggregated data type •+-
• Comparison operators: = <> < <= > >=
- block of mixed data units - Boolean values have their own operators
and priorities:
3.3 File type 1. NOT (unair)
- unlimited data units 2. AND
3. OR
Primitives:
1. Assignment statements 2. Controle statement
• In C, C++, C#, Java
2.1 Controle statement - Goto
Z = X + y;
• In Ada, Pascal 2.2. Controle statement – IF
Z := X + y;
• In APL (A Programming Language)
Z±X+y
• In VB.net, Python
Z=X+y

Operators in Python
2.3. Controle statement – While

3. Comments / annotations
• Explanation written between instructions
• Very helpful for a person to (better)
understand what a program or piece of code
does
• Is ignored by the compiler
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4. Procedures and/or Functions Pass by reference:

Function definition < > Function Call

- Definition in Python: def FunctionName(par1
[,par2,...]):
- Call in Python: FunctionName (arg1 [, arg2,...])

Parameters: a way of giving values to a

function
Local versus global:
2 way to pass the values:
1. pass by value: - variable: can be thought of as a box that
a copy of the value / variable is passed, the computer can use to store a value
this local copy will be deleted afterward - local variable: can be created in functions
- local variable can only be called in the
2. pass by reference: block they were created
a reference to the value / variable ³ same - you can call global variable from anywhere
register, all changes are permanent in the script
Pass by value:
Switching values:
When switching value between variables,
you need a third variable to store the value
of one of them

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5. Functionalities
Process Modeling Sequence flow
- to understand an IT system, you must A sequence flow:
first understand the processes in which indicates in which order the
the system is used activities are performed
- process modeling is used to analyze,
document and create processes Example Booking a Flight:
- graphical notations make processes
readily understandable

BPMN
- Business Process Model and Notation Pool
- current version: BPMN 2.0
- rich notation compared to flow chart A pool represents
- designed to be readily understandable the central entity
or an external
by all business stakeholders participant no

being, existence
Elements
Lane
A lane represents
a sub-partition of
a pool or another
lane; it is either a
department or a
role
Start event and End event Example Producing a Car:
A start event:
indicates the trigger
of a process

An end event:
indicates the
result of a
process
Task
Sub-process
A task is an activity that is not
broken down to more detail A sub-process:
is an activity that
can be described
into more detail by
a separate process
diagram
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Message flow
Fork/Join
A message flow:
indicates the flow of A fork has multiple outgoing
the process across pools sequence flows of which all are
taken in parallel
Message events A join can be used to close a fork
A start message event: Example Advertising:
indicates a message being
received
An end message event:
indicates a message being
sent
Example Producing a Car:

Time events
A start time event:
indicates begin time for a
process to start
An intermediate time event:
indicates the time that needs
to elapse to continue the
process
Example Library reservation:
Gateway
A gateway has multiple
outgoing sequence flows of
which only one is taken
A gateway can also be used
to close another gateway
Example Library:

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Link events Overview

A link event allows to Flow objects:
jump from one part
of the diagram to
another
Data object
A data object:
indicates data that is
manipulated or accessed by an
activity
Group
A group:
groups different
elements of the
diagram together, Connecting objects:
without effecting the
flow of the process
Annotation
An annotation gives
additional information
about the diagram or a
specific element

Example Online order: Swim lanes:

Artifacts:

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Use Case Diagrams Use Case

- A process model makes the processes in A use case denotes
which the system is used readily a functionality of
understandable, but does not hold enough the system
detail to develop a system
- A use case diagram denotes the
interaction between a system and its Example:
users and the hierarchical relation between
functionalities of the system
UML
- Unified Modeling Language
- Use case diagrams are part of UML
- It is a modeling language for object-
oriented software
- Used for the creation and documentation
of software
- Current version is UML 2.4.1
Elements
- actor - include
- generalization - extend
- use case Include
Actor The include relationship
denotes that a use case
An actor denotes a role includes the use of
a user plays in the another use case
system
An actor is usually a Example:
person, but can also be
another system

Generalization
A generalization denotes an "is a"
relationship between two elements
Example:

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Extend 6. Project Management

The extend relationship Views
denotes that a use case can be extended
by the functionality of another use case - Gantt Chart
- Resource Sheet
Example: - Resource Usage
- Task Usage
- Calendar
- Network Diagram
Creating a Project
- New Project
- Project Information
- Setting Nonworking Days
Introducing example:
Overview:
As an owner of a email account you can
both send and read messages. When you
send an email message, you must enter
the body of the message and the
recipients in the To, Cc and/or Bcc fields.
Additionally, you can add attachments. The
message can be either pure text or HTML. Creating a Task List
In case of HTML you can add an image as
attachment, which you can then - Enter task information
incorporate in the body of the message.
- Estimate and enter how long each task
should last
- Create a milestone to track an important
event
- Organize tasks into phases
- Create task relationships by linking tasks
- Enter the following tasks:
• Pre-production
• Develop script
• Develop production boards
• Pick locations
• Hold auditions
• Production
• Rehearse
• Shoot video
• Log footage
- Abbreviations for durations:
• Minute (m)
• Hour (h)
• Day (d)
• Week (w)
• Month (mo)
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- Enter the following durations: - Work resources

• Pre-production • Individual people identified by name
• Develop script (5d) • Individual people identified by job title or
• Develop production boards (3d) function
• Pick locations (2d) • Groups of people who have common skills
• Hold auditions (2d) • Equipment
• Production - Material resources
• Rehearse (2d) - Cost resources
• Shoot video (2d)
• Log footage (1d) - Add work resources
• Scott Cooper
• Patti Mintz
- Insert a milestone before 'Production': • Garrett R. Vargas
• Pre-production complete! (0d) • John Rodman
• Electrician
- Organize tasks into phases:
1. Pre-production - Enter max. units
• Develop script • Scott Cooper (100%)
• Develop production boards • Patti Mintz (50%)
• Pick locations • Garrett R. Vargas (100%)
• Hold auditions • John Rodman (100%)
• Pre-production complete! • Electrician (200%)
2. Production
• Rehearse - Add additional work resources
• Shoot video • Mini-DV Camcorder (300%)
• Log footage • Camera Boom (200%)
• Editing Lab (100%)
- Linking tasks
• Finish-to-start (FS) - Add material resources
• Start-to-start (SS) • Video Tape (30-min. Cassette)
• Finish-to-finish (FF)
• Start-to-finish (SF) - Add cost resources
• Travel
Setting up Resources • Catering
- Set up basic resource information for the - Add std. rate
people who work on projects • Scott Cooper (10.00/h)
- Enter basic resource information for the • Patti Mintz(15.50/h)
equipment that will be used in projects • Garrett R. Vargas (800.00/w)
- Enter resource information for the • John Rodman (22.00/h)
materials that will be consumed as the • Electrician (22.00/h)
project progresses • Mini-DV camcorder (250.00/w)
- Enter cost resource information for • Camera boom (0.00/h)
financial tracking • Editing lab (200.00/d)
- Set up cost information for work • Video tape (5.00)
resources
- Change a resource's availability for work

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Assign Resources to Tasks 7. Databases

- Assign work resources to tasks Data Modeling
- Control how Project schedules additional - After the processes are modeled and
resource assignments the functionalities of the system are
- Assign material and cost resources to
tasks known, the data in the system that
needs to function is modeled
- Compared to process and functional
- Assign modeling, data modeling is more technical
• 'Scott Cooper' to 'Develop script' and exact
• 'Garrett R. Vargas' and 'Patti Mintz' to Class Diagrams
'Develop production boards'
• 'Scott Cooper' to 'Pick locations' - A class diagram is a description of a
• 'John Rodman' and 'Scott Cooper' to 'Hold system based on entities that encapsulate
data, the relation between these entities
auditions' and functionalities they hold
- Class diagrams are also part of UML and
Other Functionalities form together with use case diagrams the
core of UML
- Critical path What is in the Class Diagram?
- Reports
- Tracking progress - No real world entities
- No instances in the computer memory
- But a description of how these instances
look like
Class
A class is a description of all
objects that belong to that
class
An object is an entity
corresponding to actual data
stored inside a computer
Association
An association
represents a
relationship between
instances of classes

Multiplicity
Multiplicity
indicates how
many objects may
participate in a
given relationship
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Example Organization: Composition

A composition is a special association that
indicates a strong 'part of' relationship
The part belongs to exactly one whole

Aggregation
An aggregation is a special association
that indicates a weak 'part of' relationship
It is used when the conditions of a
Attributes composition are not met
- If two classes are associated with Generalization
multiplicities equal to one and one class has
no other associations, then that class can A generalization denotes an 'is a'
be represented as an attribute of the other relationship between two elements
class It is not an association
- The properties of a class are its
attributes and associated classes
Database
Example Organization: - A database stores data and relationships
- Data is stored in tables, which have rows
and columns
- Each row in a table stores data about an
instance
- Data can first be modeled using a class
diagram, after which it can, with relative
ease, be transformed to database tables
Class to table
- A class can be transformed to a table,
Association class simply by giving the table the name of
class and creating a column in the table
An association class for each attribute of the class
describes additional - However, for this, the class must meet
data stored for the certain requirements
association
First normal form (1NF)
Example Organization:
- Columns have a type and every row must
have a single value for each column of the
corresponding type
- The table should have no duplicated
columns or rows
- There must be no significance in the order
of either rows or columns
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Column types Primary key

- The possible column types depend on the - A primary key is a candidate key selected
database management system (DBMS) you as the primary means of identifying rows in a
use relation:
- Common types are But e.g. not complex • There is one and only one primary key per
• Number data structures like a relation
• Text list, matrix or tree • The primary key may be a composite key
• Boolean (true, false) • The ideal primary key is short, numeric and
• Date never changes
• ...
Example classes: - A surrogate key as an artificial column
added to a relation to serve as a primary key:
• DBMS supplied
• Short, numeric and never changes (an ideal
primary key)
• Has artificial values that are meaningless to
users
• Normally hidden in forms and reports

Example Tables with primary key:

Example tables:

Keys
Mapping associations with multiplicity 1
- A key is a combination of one or more
columns that is used to identify rows in a - Associations are mapped to a database
relation using foreign keys
- A composite key is a key that consists of - A foreign key is the primary key of one
two or more columns relation that is placed in another relation to
- A candidate key is a key that determines form a link between the relations:
all of the other columns in a relation • A foreign key can be a single column or a
composite key
• The term refers to the fact that key
values are foreign to the relation in which
they appear as foreign key values
- An association with a class with
multiplicity 1 (or0..1) is mapped by adding a
foreign key to the table of the other class
Example:

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Mapping other associations 8. Informatics in a business context

- Associations with both multiplicities 1. Hardware
different from 1 (many-to-many), are Hardware refers to all physical components in
mapped by adding an additional table computer systems
containing both foreign keys referring to • power supplies
the classes of the association • motherboard
- If the association has an association
class, the attributes of the association - CPU: central processing unit
class are added to the table - buses: common transport medium to
connect different parts together
Example: • storage devices
- DVD
- hard disk drive
- RAM – ROM (internal)
• input/output peripherals
Instance - printer
- The actual data is stored in the rows - screen
- Each row holds the data for one instance -…
- The data corresponds with the type of
the columns • Moore's law was first formulated in 1959
- If an instance doesn't have a value for a by Gordon Moore and states that the
specific column, the value is NULL number of components (i.e., transistors) on
a chip doubles every two years
Example Supervisors: Example Staff table: (= exponential growth!)
• Implications or alternative formulations
include
- the processing power of micro processors
doubles every 18 months
- the price of transistors or data
processing capacity is halved every 18
months
In today's society, there is an increased
omnipresence of (interconnected)
hardware devices
- this allows organizations to gather much
more fine-grained information about
customers and their products (see
Internet of Things)

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2. Software - we can collaborate with several people on

• Software programs are typically the the same project by each focusing on a
result of a set of instructions formulated module and than assembling them later on
by programmers through a programming • evolvability
language, which is ultimately transformed - we can modify or change one module and
into machine language leave the other ones the same
• Such programming languages provide the
means to code tasks in a structured/
algorithmic way by using: • Currently, mainly 3rd generation languages
are used
- sequences
- one program instruction is transformed into
- iterations multiple processor instruction
- selections • Well-known older programming languages
• A software program is a set of specific include:
instructions that can be performed on the - COBOL (Common Business Oriented
processor of a computer Language)
-> Besides programs, software also can
be DATA!! - Pascal
• Most popular languages at this moment are:
- Java
- .NET
- Python 30% of actual programming

• Software systems are essential in an

• Sequence organizational context, as they:
- allow the processing of much data in a
short time frame
• Iteration - have low processing costs for calculations
- perform their calculations error free when
programmed correctly
• Selection - can easily communicate over large
distances
- allow for automatization
• Software architecture can be important
from a business perspective:
Software modules are intended to enable:
- how to achieve this modularity for re-use,
• re-use reduced complexity and evolvability?
- If a good module already exists, we can
3. Database
re-use it
• reduction of complexity
- we can split u large problems into several
subproblems
- if something does not work, we can most
likely relate the problem to a particular
module
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• A database is an organized collection of • Elementary operations on relational

data stored in a computer databases can already provide interesting
business insights!
Example: - e.g. give me an overview of the first name
• data might be: and last name of all customers living in
- name of a person Brussels
- address of a person
- age of a person
• a database might contain:
- all personal data of employees and
- customers of a company
- all orders of a company
• Most databases are so-called relational • Serves an input for many software
databases systems or stores information coming from
- all data is stored in a set of tables (columns, software systems (output)
rows) • See data modeling in chapter 7!
- each table stores a set of properties • Well-known relational databases are
(colums) – DB2
regarding a set of instances (rows) – MySQL
- the tables are interlinked via so-called keys – Oracle
– PostgreSQL
Primary key: making each elementen unique – (Access, PowerBI, ...)
Foreign key: to make the link
Primary-Partial key: when having many-to- 4. Network
many relations (association class) • A computer network is the
telecommunications network which allows
• Problem with duplications and consistency multiple computers to exchange data with
in a non-normalized table one another

• As databases can store many tables with

many instances and many attributes, they are
crucial for enterprises in storing and managing
their data • Different types (geographical scale)
• This data can always be - Personal Area Network (PAN)
- Local Area Network (LAN)
– created (add tables or instances) - Metropolitan Area Network (MAN)
– read (retrieve data regarding an instance) - Wide Area Network (WAN)
– updated (update changed data) • Different transmission media
– deleted (data no longer relevant) - Wireless (bluetooth)
- Cable (coax,UTP)
– searched (obtain data adhering certain
criteria)
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• Different topologies: 5. Server

•In order to enable the offering of services
fro one computer to another computer or
user, servers can be used in a network
• A server typically only has those
components which are necessary for its
function
- e.g. no screen, no dedicated keyboard
• Depending on the service offered,
different names are used:
• Different types (organizational scale) - Mail server
- Intranet: a network connecting a set of - Web server
- Application server
computers within a single organization - Database server
- Extranet: a network under control of a -…
single organization but allowing restricted
access to external parties (e.g. vendors) 6. Internet
- Internetwork: a network connecting • Is the largest internetwork
different networks (e.g. the internet) - A network of networks
• Widespread adoption in developed countries
• Network Protocols - e.g Belgium
Network protocol: Set of fixed rules that
dictate how data must be formatted, sent • Has several important benefits
and received so that computer network - Publicly and de facto freely accessible
devices - from servers and routers to - Makes use of worldwide adopted standards
endpoints - can communicate, regardless of (e.g. TCP/IP)
differences in their underlying - Highly scalable (computers, servers, can be
infrastructures, designs or standards.
- freely adapted or removed)
• Well-known network protocols: - Is, to a large extent, agnostic of the kind/
- TCP (Transmission Control Protocol): for size of information which is transmitted and
"chunking" different packets in data the kind of sending/receiving device
transmission.
- IP (Internet Protocol): allowing computers
on a computer network to communicate
with each other, such as on the Internet.
Networks are crucial in the context of
organizations as they allow:
• Data sources to be exchanged internally (no
duplicate data entry required)
- allow cross-departmental collaboration
instead of stand alone systems
• Functionality to be remotely accessible
(one computer can as a service from another
computer)
• Inter organizational connections can easily
be established: • Origins: fear for destruction of
- Vendor Managed Inventory (VMI)
- Electronic Data Interchange (EDI) communication means by a first strike
- Traditionally: direct, dedicated lines
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• DARPA (US military) started the Phase 1 - the mainframe

development of a new type of network • Mainly '60s, '70s and '80s
during 60s • Mainframe = large centralized computer
- Called ARPANET capacity
- Initiated to connect several research
centers and universities - Database and business logic centralized
• Important principles - User interface via "dumb clients" (no own
- Distributed connections
- Packet switching processing or storage capacity)
• Costs exceeded multiple millions
- Only for large and rich companies
• Downside = peak moments and network
capacity
• Sometimes still used

• The World Wide Web (WWW) is the most

popular internet service Phase 2 - PC and client/server
- System with universally accepted • Started around '80s
standards for the storage, retrieval, • Personal Computers (PCs) having their own
formatting and displaying of information via
web pages (limited) storage and processing capacity
- Uses a client-server architecture arose, just as mimi-computers/servers (less
- Make use of:
Hypertext markup language (HTML) powerful than mainframes)
Hypertext transfer protocol (HTTP) • Data storage and logic are "distributed"
Uniform resource locators (URL)
Web servers which limits the amounts of network traffic
Web browsers • Interaction between servers (mainly large
scale data storage) and "fat clients" (parts
7. Computer Architecture of processing, user interface)
• A computer architecture describes the • Risk: consistency among clients in case of
fundamental organization of a computer updated business logic?
system, its components and how they are
related (with their environment)
• Among other things, the configurations of • Fat Client:
the following components needs to be - A fat client (also called a thick client) is a
considered: network computer on which most resources
- Interaction/user interface are installed locally. This in contrast to the
- Database thin client, where the elements are
- Application/business logic distributed across a network.
• We can discern 3 major phases - Most personal computers are fat clients
- Mainframe because they have their own hard drives,
- Client/server CD/DVD drives, software applications and
- Browser/cloud others.
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• Thin Client: 8. Processes

The 'Thin Client' contrasts with the fat client. • A business process is a set (sequence) of
It is usually a relatively light computer that steps in order to produce a product or service
only exchanges image information, keystrokes
and mouse actions between the user and a - Defined at a business/organizational level, it
central computing environment. defines the way "things are done in an
• Dumb Client: only screen & keyboard (cf organization"
- Some of the tasks might be done by
mainframe)
humans, other by machines/software
- Might be end-to-end
Phase 3 - Browser/cloud
• Started around the '90s • Came into attention ('90s) after an
• Computer and network connections identified need to work across different
(Internet) become commoditized for functions and departments in an organization
companies and consumers - Idea = global instead of local optimization
• All devices can be connected to the internet - Important in the context of enterprise
(mostly via browser) applications:
Need to be analyzed
• A very large network is created, connecting: Need to be re-engineered
Way to be enabled
- Server (large data storage and computing
resources)
- "thin clients" (desktops, laptops,
smartphones,..)
• Risks:
- It all depends on the capacity and up-time
of the network!
- Security?
9. Information Systems
• An information system
is the combination of IT
hardware, software, the
supported processes and
the people using all this

• This highlights again the need for a socio-

technical approach
- People in the organization need to accept
and use the technology proposed
• ..and of business/IT alignment
- The technology should support the goals of
the organizational people

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Internet of Things (IoT) 9. Enterprise applications

• Rise of smart and connected products in Systems Development Lifecycle: General
our daily living environment Overview
- "Internet": interconnectedness, 1. Planning
transmission of information among devices • An IT project is a complex undertaking
- "Things": products which get new which needs adequate planning, including
capabilities (to be "smarter" than before) - Scoping
- 3rd wave of (IT Porter, 2014) - Alignment with IT/Business goals
- Cost-benefit analysis
- 1st wave: automation of individual activities - Feasibility, including risk analyses and
in value chain mitigation
- 2nd wave: coordination and integration - Planning of tasks and resources
across individual activities with supplies, -…
channels, and customers -> should all result in a clear business case
- 3rd wave: IT becomes part of the product which needs to be formally approved
itself!
- In each wave, significant increases in • An initial working schedule should be
productivity included as-well
Examples: - Which tasks have to be performed?
• Consumer goods: - How long do they take?
- Ceiling fans which adapt automatically based - Who is capable of doing that?
on the number of people present - How many people do we need concurrently?
- Home automation systems (lighting, - Which tasks are interdependent (need
multimedia) managed via mobile devices another task to be executed earlier)?
- Does this align with our anticipated cost
• Energy: analysis?
- Gather all types of data regarding all types - Helpful techniques:
of equipment to optimize efficiency and - Work breakdown structure
avoid, blackouts
- PERT charts
• Transport: - Gantt charts
- Cars heavily relying on IT to optimize their
performance, getting automatic updates, • A Work Breakdown Structure (WBS) is a
send signals to manufacturers when table or figure specifying all tasks necessary
maintenance is required to carry out a project:
- Tasks and subtasks
• Health care: - Optionally:
- Sensors under the patient's skin to measure - duration
glucose level and alert patient/clinician when - allocation
intervention is required - dependencies
• Manufacturing:
- Autonomous mining systems
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• A PERT chart allows the visualization of • Information should be gathered from all
- The dependencies between tasks different stakeholders relevant for the
project:
- Duration
- Internal business users
- Early start/end
- External business users (e.g. suppliers)
- Late start/end
- Customers
- Calculation and visualization of the critical
path - Management
- Executive management
• Helps with the allocation of resources - Technicians
(people) • Relevant issues
- Are all these requirements consistent?
- Are all these requirement formulated
exhaustively?
- Do the users of the system really know
the requirements?
• Possible sources of information include:
- Existing documents
- from within the company (forms,
procedures,..)
- from outside the company (standards,
already documented analyses)
• A Gantt chart allows a project manager to - Interviews with stakeholders
follow up the continuation of the project - possible variant: questionnaire
- On schedule? - Observations within the company
- Behind? - which tasks are executed?
- Ahead? - in which order (processes)?
- which information is created/required?
2. Analysis
• The analysis phase is concerned with • Possible sources of information include:
identifying the requirements of the IT - workshop/brainstorms
system which needs to be developed in the - a few meetings in which all stakeholders
project are together and interactively engaged
- What should be the specific functionality in formulating the requirements
of the system be? - e.g. use group decision support between
- more precise and less generic than systems (GDSS)
formulated in the planning phase
- what should the system do? - solve some contradictions between
stakeholders immediately
• Phase which is situated at the border - create momentum regarding the project
between business and IT
- requires the involvement of the business! - develop intermediate prototypes
• Goal = become domain expert for the - users can test intermediate versions
system to e developed and immediately give their feedback vs.
at the end
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• The analysis should result in a set of models • Programming can be done in several ways
of what the system should do - by in-house programmers or hired
• Possible techniques and artifacts/ consultants
documents -through external consultants/outsourcing
- Use cases - buying and modifying/configuring an off-
- Data models (ERD, class diagrams, ORM,.) the-shelf application (see part Il)
- it should also be studied which
information should be derived 5. Testing
- Process models (BPMN, DFD, YAML, Petri During testing, it should be tested whether
nets,..) the resulting software application matches
the requirements of the organization
• types of tests/controls
3. Design - validation
• Define the overall architecture of the
- does the application meet the actual
application (i.e., how should the fynctional of the end users? do they accept it?
requirements by attained) - was the right application build?
- which large building blocks will the application - verification
need/have? - does the application work according to
- how will they integrate (determine the the requirements as formulated during
interfaces)? the analysis phase? (right input/output)
- how will the application integrate with - unit tests (test modules) and system tests
external applications (again: interfaces)? (test whole application and the interaction
- which frameworks/technologies will we use? between modules)
- is not a simple 1:1 mapping problem! - security application controls
• Define the algorithms required for the - verify whether the application can only
application process authorised data in a complete
- how to calculate the route from location A and precise way
to B? - regarding input (all data, right format?),
- how to sort a set of numbers? throughput (correct calculations?) and
•Artefacts created are mainly data and output (all data, correctly presented?)
process models - typically, artefacts such as testing plans
enriched with technical details
are created and executed in
- e.g., interaction with other systems,
databases, etcetera this phase (compare expected results with
actual results)
4. Implementation A test plan is a document or schedule that
• During implementation, the formulated describes the scope, approach, resources and
functional requirements and design are timing of the intended test activities. It
transformed into programming code compares expected results with actual
results
- the actual programming instructions are
coded
- artefact created is typically the source
code (could become quite large)
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6. Go-live - adaptive
Different go-live strategies - maintenance in order to keep the
• "big bang": all users need to make use of software usable in a changing
the system as of the the same moment technological environment (e.g., due to
- riskful changes of data input/file formats,
- possible mitigation = fall-back scenario (i.e., changed hardware and software
back-up by old system until new system has systems/platforms)
proven its value) - preventive
• parallel strategy - not changing the actual behavior, but
- old and new system run a certain period of "refactoring" the structure of the code
time in parallel (i.e enhancing readability of code that
- secure but expensive has currently not shown itself in terms
• pilot study of an error to the user)
- a certain division or department "tries out" • Delivered artefact: updated and revised
the new system, afterwards the rest implemented software
follows if succesful
• gradual way 8. Project management
- functionalities are gradually introduced • A IT project a unique undertaking to
- needs interfacing between new and old develop an application:
application to ensure data-integration (or - non-routine
manual duplication?) - upfront formulated goal
- per business process, market, etcetera - beginning and end
• delivered artefact: implemented software - balancing
7. Maintenance - timing constraints
• In this phase, the application is adapted to - costs (e.g., human resources)
correct bugs, add new features, allow - quality/scope
compliance with new technological
frameworks, etcetera • Project failure factors (Standish group)
• Types (Lientz and Swanson, 1980): - Incomplete or changing requirements
- corrective - Limited user involvement
- correct identified problems of the - Lack of executive support
existing program, including emergency - Lack of technical support
fixes and the correction of bugs (e.g.,
- Poor project planning
abnormal termination of program)
- Unclear objectives
- perfective
- Lack of required resources
- incorporating new functionalities (e.g.,
new business requirements, higher
performance)

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• Project critical success factors (CSFs) 10. New Business models

(Standish group) Types of E-commerce
- Clear system requirement definitions •According to participants, most frequent
- Substantial user involvement division:
- Support from upper management - Business-to-consumer(B2C)
- Thorough and detailed project plans - e.g., Amazon, Kelkoo
- Realistic work schedules and milestones - Business-to-business (B2B)
- e.g., EC21, TradeKey
• How to be more succesfull? - integration standards such as EDI
- Apply suitable development methodology - Consumer-to-consumer(C2C)
(know pro's and con's) - e.g., eBay, social networks
- Apply best practices and be aware of • According to network medium
factors causing failures and escalations (cf. - wired
critical success factors of the Standish - wireless
Group)
- mobile
- Have experienced project managers not
understimating the job
- It's all about trying to bridge the gap
business/IT

The Boo.com story

• British Internet company would sell high-
end sports and fashion brands
• "18 months from concept to catastrophe"
• "get large or get lost"?
- £ 100m of investments burned
- simultaneous launch in 18 countries
- "no rationality. "investors could back
something they didn't quite understand"
- till £400m valuations
without being launched

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• Planned launch: May 1st 1999 • Results

- frequently postponed - bad user experience > few orders > low
- costs running up, investors kept on pushing incoming cashflow
in money - global big bang launch > project became
- 3 November 1999, "forced" launch too complex > almost impossible to succeed
• Upon launch: within such short time frame
- technology seemed to work, but could not See other dot com failures
be used by all users
- not that many orders as expected (0.25 11. Current Trend in IT
conversion rate!) 1. Outsourcing
- huge amount of fixes, relaunch required • Definition = IT outsourcing involves the
within 6 months to decrease download time handover of certain parts of the IT
and enable non-broadband version execution of an organization to one or
multiple IT suppliers, external to the
- running costs $10mio/month organization
• Nevertheless projections kepton rising - is not purely "acquisition" of existing
- until March/April 2000: NASDAQ crashed and software, it concerns the execution of
there was no longer money around certain specific IT tasks
- while conversion rate was clearly - mostly development, but also
increasing, it was impossible to support the implementation/configuration and deployment
costs: additional investments were required - "arrangements" are settled in a SLA (service
- within 6 months after opening for business, level agreement)
company was put into liquidation in May 2000
- typically initiated by reasons of "focusing
on core tasks and "need to reduce costs
• Problems
and a trend of globalization (often
- too high ambitions?
offshoring)
- overconfident due to well-known and wealthy
backers • While succesful in certain cases, many IT
- lack of inflowing cashflow in order to outsourcing projects fail:
compensate for the huge costs (offices, top - e.g., Gay and Essinger (2000): 35% of
employees, etcetera) outsourcing projects fail
- unknown technology, lack of experience with - e.g., CRM system by EDS for BSkyB in 2000
this order of magnitude! - estimated duration: 18 months
- several markets. languages, currencies - anticipated costs: £48 million
large seale missjana ritrihantegration - reality
with other platforms, allow for
multiplatform access months!? - project took 6 years
- "no one had done this before" > do it - costs amountet to £265 million
ourselves - court case
- even if it was technologically feasible - 15 monhts
(e.g., 3D images, digital assistant Miss Boo, - costs: £ 45 million
clothing a manaquin), current Internet - BSkyB was awarde £318 million
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2. Cloud Computing • Service models

• Philosophy = hardware, software and even - Infrastructure as a Service
complete "business processes" can be - extension of traditional webhosting
tapped from "the cloud" (i.e., the Internet) services
• Comparing all these things to the - now: all computing infrastructures
provisioning of a commodity including netwerk, server and storage
- only the right connection (i.e., the Internet) facilities
with the service provider required - provider takes care of the location,
- no complex installation, maintanance, operations, physical security, availability,
upgrades on-site hosting, etcetera
- on-premise (invoicing based on licenses) > - user can install all kinds of software
off- premise (invoicing based on usage) (standard, custom developed, etc.) and
operating systems, but no "worries"
regarding issues on the infrastructure
• Definition by the National Institute of layer
Standards and Technology (NIST): - Platform as a Service
- Cloud computing is a model for enabling - provider offers a "platform" in which
ubiquitous, convenient, on-demand network applications can be developed
access to a shared pool of configurable - infrastructure + standard applications,
computing resources (e.g., networks, modules, programming languages and
servers, storage, applications, and services) tools ("repositories")
that can be rapidly provisioned and released - no worries regarding underlying
with minimal management effort or service infrastructure or "boiler plate"
provider interaction. limited configuration possibilities (i.e.
•Characteristics select specific operating system,
- on-demand self service programming platform etcetera which
- broad network access are claimed to be easily integrated)
- resource pooling - Software as a Service
- rapid elasticity - completely finished and usable (business)
- measured service applications are offered to the client
- client does not need to worry but also
has only limited control regarding
underlying layers including network
specifications, servers, operating
systems, data storage, management of
individual applications, software or
hardware updates, etcetera
(configuration of user specific options in
an application typically stays possible)
- both consumer (e.g., outlook.com, Gmail)
and business (e.q. Salesforce.com)
oriented services available

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- Business Process as a Service • XML (Extensible Markup Language) is a

- complete business processes which are standard for the syntax of formal markup
offered "as a service" via a webbased languages that allow the presentation of
interface and architecture (based on structured data in the form of plain text.
This presentation is both machine-readable
Gartner)
and human- readable. The XML format is used
- e.g., payroll, e-commerce printing,
advertising, etcetera to store data (such as in the OpenDocument
- Also: Desktop aaS, Network aaS, Storage format) and to send data over the Internet.
aaS, Communication aS, Data aaS,.. • SOAP (Simple Object Access Protocol) is a
computer protocol used for communication
Overall characteristics: between different components. SOAP is a
• Reliability: software is located on the server protocol that sends XML messages, usually
of the service provider. Can be improved by over HTTP.
multiple data centers of the provider or by • HTLM (HyperText Markup Language) is the
subscription at several providers standard markup language for web pages.
• User is not bound to a device or location Documents in HTML can be opened and read
• Cost is determined by the subscription or by a web browser and then displayed as a
the services used web page. There are two types of HTML
editors: text and What You See Is What You
• Infrastructure can be used very flexibly Get (wysiwyg).
• Services can easily be made scalable • WSDL (Web Service Description Language)
• Security is often controlled by the service is an XML language used to describe the
provider interfaces of web services. In general, these
• Responsiveness is more dependent on the WSDL documents will mainly be read by
Internet applications and available to calling
• Legal aspects are a.o. in the field of applications.
ownership of the data - goal = increased flexibility by allowing all
and applications kinds of services to be combined
("orchestrated") to complete business
3. SOA processes (even composable by business
• SOA stands for Service Oriented
Architectures people)
- makes use of services = small software - some targeted characteristics:
modules but with a clear business meaning - reusability
- typical enterprise applications such as - information hiding
ERP CRM, SCM, HR, etcetera are split - low coupling
into many small very fine-grained
modules (the services)
- these services are made available via
standard protpcols over the internet
Such as:
- XML (eXtensible Markup Language),
- SOAP (Simple Object Access Protocol),
- HTML (HyperText Markup Language),
- WSDL (Web Service Description Language),
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A. Enterprise resource planning (ERP) • Selection of ERP:

is a category of business-management In the past: selection of software was quite
software—typically a suite of integrated easy. No technical cooperation with other
disciplines within the company needed for
applications—that an organization can use to Software ("Software at will"). Communication
collect, store, manage and interpret data between departments remained unchanged.
from many business activities, including:
- product planning, purchase Within ERP systems there is a strict form of
- manufacturing or service delivery cooperation between departments!
- marketing and sales Thoughtful agreements are needed and the
system must be selected carefully
- inventory management
- shipping and payment •Selection stages
- finance - Examination of own business processes
-... - Drafting of Requirements and Wishes
- Search of potential providers
- Drawing up business case
- Demonstration
- Hands-on demo to main users
- A principle decision is made based on all
previous steps
- Contract negotiations

• Advantages of ERP: • Implementation of ERP:

A successful ERP project should lead to cost
- all business processes, including inventory savings:
systems, business administration - reduce production costs,
and logistics are linked. All the information
gathered throughout the company is useful - shorten production time,
for everyone - improve customer service,
- Well integrated through the company - reduce inventories, etc.
• Disadvantages of ERP:
- can be quite expensive: must be adapted to However, implemented!
ERP package must be successfully
company needs
- potential pitfalls are usually related to the Research shows a failure of about 40% to
implementation and 50% in implementation projects
to the organization itself. Organizations and of ERP packages. From the point of view
managers must be aware "Return on investment" there is even a
of the major changes resulting from the failure of 60% to 80%.
implementation of an ERP system! Workers
within the company also have to accept Principal reasons for failure of ERP projects:
mentally this implementation. ERP software is - Poor or unclear strategic objectives,
worthless without proper implementation of
people, - Lack of top management support,
the strict use of rules and maintaining - Poor project management,
functionality. - End users are poorly trained or not,
Implementation is successful if there is
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B. Supply chain management (SCM) 4. Open Sourcing Software

The management of the flow of goods and • Remember Part 1:
services, involves the movement and storage
- executable software originates from
of raw materials, of work-in-process
inventory, and of finished goods from point source code which is compiled (transformed
of origin to point of consumption. into instructions readable and executable by
Interconnected or interlinked networks, a specific machine)
channels and node businesses combine in the - for most software, only the compiled code
provision of products and services required
by end customers in a supply chain. is made available to users (i.e., proprietary
software)
Supply chain management software includes
tools or modules used to execute supply chain -access
in the case of open source, users can
this code, for purposes of
transactions, manage supplier relationships,
and control associated business processes. - inspection
- modification
Since SCM is complex, only IT is able to - adaptation/amelioration
provide support at an acceptable cost. SCM
without IT is not feasible. This support is - spreading
typically offered through packaged - selling
applications, including ERP.
- de facto, and in most cases, this means
C. Customer relationship management (CRM) that the software is free (specific licenses
Is an approach to managing a company's may apply)
interaction with current and potential future
customers. • Most well-known open source software
product :
The CRM approach tries to analyze data about Linux
customers' history with
a company, to improve business relationships - initiated by Linus Torvalds
with customers, specifically focusing on - mainly used for server-side software,
customer retention, and ultimately to drive somewhat less for desktop software
sales growth. - nowadays very widely used (i.e., the Linux
Three types: kernel) on smartphones via Android
1. Customer-facing (callcenter, helpdesk); • What does this mean for an organization?
2. Customer-touching (selfservice); - benefits and drawbacks?
3. Customer-centric intelligence (CRM - adopt or not adopt?
inproving) - nuances regarding the "free" aspect
- code inspection/adaption only rarely used
NB: For optimal implementation of the in practice
strategy, customers with a too little profit - depends on what you need!
margin (or even on which the organization is
making losses) might be motivated to find
another supplier or service provider (de-
marketing).

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5. Data Mining Possible Security Threats

• The current situation in which more and • Software • Exploitation of
more data is available leads to organizations - virus human weaknesses
having a "mass" of information ("data - worm (social engineering!)
warehouses") - trojan horses - using technical means
- often unclear what insights these data - spyware - hoax
might offer ("big data", "mining" of data) - nigerian scam
- using advanced statistical methods but • Other technical - fishing
means - .. or not
often based on correlations (if X AND Y
- botnet - "just ask"
THEN often Z) and visual representation
- evil twins - dumpster diving
of data (e g. , exploring data by means
- click fraud - desk sniffing
of OLAP, "slicing and dicing")
- related to "business intelligence" (turning Measures
data into information) • Software updates/patches fixing security
- can assist in solving typical business breaches/weaknesses
questions: • Anti-virus applications, checking files and
- what will be a customer's next applications for harmful code
purchase? • Firewalls
- what is the chance that a particular - guarding the internal network from the
client (lead) will be a profitable one? "dangerous" outside world, i.e., the public
- What is good way to segment our client - e.g., from which system does the incoming
base? package originate? for which type of
application is an incoming package meant?
6. Security and privacy • Back-up systems
• Given the increasing dependency of - data, e.g., RAID
companies on information systems to store - infrastructure, e.g., completely duplicated
valuable (often confidential) information and data center for banks
execute transactions, maintaining the • Encryption
security of these information systems is a
crucial aspect - files (TrueCrypt?)
- be sure that critical system are always "up - data transfer (HTTPS, VPN)
and running • General and application controls
- be sure that information is no unintendently - general: general best practices regarding
disclosed software development, hardware
• This includes coverage for installation, etcetera
- technical failures (hardware/software) - application: unique for each application,
- environmental events (fire, floods) only authorized data should be completely
- human actions (intended/unintended, and accurately processed (i.e., input/
internally/externally) throughput/output)
• Also non-technical > awareness!! (cf.
social engineering)

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Glossary • More and detailed information +

• RAID (Redundant Array of Independent connectedness leads to the combination of
Disks) is a data storage technology that this new data and can deliver new types of
combines multiple physical hard disks into one business opportunities
or more logical virtual storage units for the - monitoring and controlling devices remotely
purpose of increasing security, speed and/or without interference of the
capacity. client
• VPN (Virtual Private Network) is a way to - advanced customer insights (cf. data mining)
extend a local area network (LAN) over an • ..but equally new types of threats
existing connection, a wide area network - security and privacy issues become
(WAN), such as the Internet, while maintaining primordial
confidentiality. • Also the development and operation of
• HTTPS (HyperText Transfer Protocol applications is performed in a more
Secure) is an extension of the HTTP protocol distributed, i.e., non-concentrated way
with the aim of exchanging data securely. - cf. "as a Service", Open Source, outsourcing,
When using HTTPS, the data is encrypted so SOA
that it should be impossible for an outsider, • Business models focus more on low-cost
for example someone who is eavesdropping, models….
to know what data is being sent.
- outsourcing, Open Source, "as a Service"
Trends • ..and on distributedness
• Higher levels of data gathering and storage - online retailers, network economy, long tail
- cf. IoT, Web 2.0, etcetera
- at a more detailed and fine-grained level
- personal level
- product/device level
- in a distributed way
- data at the disposal of organizations
and people is not just their
own/personal data but contains a lot of
external information of well
• Higher degrees of connectedness
(sometimes enabled by and required for the
above data gathering)
- cf. Web 2.0, demotics, smartphones/
tablets,..
- see evolution from stovepipe systems, to
integrated systems within organizations,
among organizations and now towards
individual products and devices from
individual persons

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