SYSTEMS ANALYSIS Chapter-2

SYSTEMS ANALYSIS It is the process of examining an existing IS and its environment to identify potential improvements. This phase is started in response to a request from a manager or planning group. Possibly three reasons:- 1. to solve a problem with an existing system 2. to satisfy a new requirement for information 3. to implement a new form of technology Systems Analysts play main role in this phase. Two major activities in this phase are:- Preliminary Survey Feasibility Study

THE PRELIMINARY SURVEY It consists of an evaluation of an existing system or systems. Performed by team of analysts and MIS managers. Objectives:- To get an understanding of an existing system. To develop good relationships with users of the system. To collect data that is useful in system design. To identify nature of the problem being investigated.

SYSTEM STUDY PROPOSAL System Study Proposal is a written request from a manager asking that a study team should be formed to analyze a system problem. Reasons For a System Study proposal Problems with an Existing System Insufficient processing capacity Erroneous processing Not Functioning as intended Processing inefficiency New Requirement for Information Legal Competitive Desire for New Technology Improved data entry Terminal reporting capability Ad hoc reporting capability Project initiation

(b) SYSTEM STUDY TEAM The study team may consists of System Analysts, clerical staff, engineers or technicians, production managers or supervisors, sales managers and accountants etc. The IS steering committee must ensure that managers of user departments support the project and allow employees to participate.

(c) SCOPE OF THE PRELIMINARY SURVEY Preliminary Survey is actually a fact-gathering process about how the organization operates. The study team collects information about the following factors:- 1. Data Flows: How data flows with in system, across other systems, in what form, from where to where. 2. Effectiveness: Effectiveness is measured in terms of goals-achievement. Team collects descriptive statistics on system operations or users’ opinions about system’s usefulness.

3. Efficiency: It is measured as the ratio of sys-outputs to sys-inputs. Also measured as a ratio of Sys-outputs to cost of sys-inputs. Team tries to find out ways how to improve system efficiency. 4. Internal Controls: Internal controls are the measures taken by the organization to safeguard assets, to ensure accurate data, to promote efficiency and to encourage compliance with management’s policies. With poor internal control, system records erroneous transactions and produces incorrect reports.

(d) USING SYSTEM TOOLS The main objective of study team is to understand how the current system operates. For this purpose the team uses a variety of system tools such as:- Documentation review Using Interviews Using Flowcharts or Data Flow Diagrams Using Questionnaires Work Measurement Audit Reports.

Documentation Review The study team examines three kinds of documents:- 1. Organizational 2. Individual 3. Processing These documentations reveals a lot of information about the structure of organization, the movement of data within and across the organization, accounting procedures used, budgets, how data is processed generated and obtained by various users.

Organizational Documentation Organization chart --------------------- diagram showing relationship of superior & subordinate Chart of accounts ---------------------- list of accounts in general ledger Departmental budgets ----- summary of projected costs and revenues, comparison with actuals Individual Documentation Job description -------------------- identifies position of employee with assigned task, procedure and responsibilities Procedures manual ------- a document that identifies & describes tasks. Performance standards ----------- expected measures of efficiency, quality, quantity for a task Computer operating instructions -------- computer operator assigned tasks Processing Documentation Flowcharts ------------------ a graphical representation of sequential processes Sample forms -------------- used for data input by the system Sample reports ------------ produced by the system

Using Interviews Interviews also provide important information to the study team. Managerial end users, supervisory and clerical staff and other related personnel are interviewed to get their description of the required system. These personnel can identify and confirm sources of information input and specific output requirements. Interviews are an effective way of gaining user acceptance also.

Using Flowcharts & Data Flow Diagrams Flowcharts or DFDs are used by team to describe the existing system. A DFD shows the flow of data between processes, files and external destinations. A flowchart is a graphic representation of sequential processes. DFDs are used by team for: Summarizing, Documenting and Analyzing.

Using Questionnaires Questionnaire is a useful tool for gathering information. It is used by study team in two ways:- 1. Prepared by analysts and filled during users’ interviews. 2. Prepared by analysts and filled by users.

Work Measurement Work measurement techniques determine the magnitude or quantities of the tasks performed by various users or departments. It shows how frequently an operation is applied by which user. It also shows how much time is taken by each task. It also shows number of outputs from a task or system, such as forms completed or reports produced. Work measurements are very important for determining system efficiency and for conducting cost-benefit analysis.

Audit Reports The study team may review the audit reports written by internal or independent auditors. These reports contain important information about the weaknesses or potential improvements he of the system.

(e) BENEFITS OF THE PRELIMINARY SURVEY The preliminary survey provides three major benefits. An objective evaluation of the situation that produced the study proposal. It provides necessary information about the new system. It facilitates in gaining user acceptance of a new system.

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