Chapter 20 Introduction to Systems Development and Systems Analysis Copyright © 2012 Pearson Education 20-1

Learning Objectives  Explain the five phases of the systems development life cycle.  Discuss the people involved in systems development and the roles they play.  Explain the importance of systems development planning and describe planning techniques.  Discuss the various types of feasibility analysis and calculate economic feasibility.  Explain why system changes trigger behavioral reactions, What form this resistance to change takes, and how to avoid or minimize the resulting problems.  Discuss the key issues and steps in systems analysis. Copyright © 2012 Pearson Education 20-2

Why Update Systems?  User or business changes  Technology changes  To improve business process  Create competitive advantage  Increase productivity gains  Integrate multiple systems  Aging systems need replacement Copyright © 2012 Pearson Education 20-3

Software Development Problems  Most software development projects deliver less, cost more, and take longer than expected.  Standish Group found that:  70 percent of software development projects were late  54 percent were over budget  66 percent were unsuccessful  30 percent were canceled before completion  American Management Systems found that:  75 percent of all large systems are not used  Not used as intended, or  Generate meaningless reports or inaccurate data Copyright © 2012 Pearson Education 20-4

Systems Development Life Cycle (SDLC) System Analysis Conceptual Design Physical Design Implementation & Conversion Operations & Maintenance Copyright © 2012 Pearson Education 20-5

SDLC Steps  System Analysis  Information about system needs, costs, and so on are gathered.  Conceptual Design  Gather system/user requirements.  Physical Design  Concepts are translated into detailed specifications.  Implementation and Conversion  New hardware and software are installed and tested.  Employees are hired and trained or existing employees relocated.  Processing procedures are tested and modified.  Standards and controls for the new system are established and system documentation completed.  Operation and Maintenance  New system is periodically reviewed.  Modifications are made as problems arise or as new needs become evident. Copyright © 2012 Pearson Education 20-6

Systems Analysis Activities Initial Investigation What’s the Problem What’s the Scope Systems Survey Gain Understanding of Company Preliminary Assessment of Needs & Changes Required Develop Working Relationships Collect Data Feasibility Study Determine Project Viability Information needs and System Requirements What do Users Need Document System Requirements Systems Analysis Report Summarize and Document Activities Copyright © 2012 Pearson Education 20-7

People Interacting in SDLC  Management  Accountants  Users  Information systems steering committee  Project development team  Systems analysts and programmers Copyright © 2012 Pearson Education 20-8

Planning SDLC  Project Development Plan  Cost/benefit analysis  Developmental and operational requirements (people, hardware, software, and financial)  Schedule of the activities required to develop and operate the new application  Master Plan  What the system will consist of  How it will be developed  Who will develop it  How needed resources will be acquired  Where the AIS is headed Copyright © 2012 Pearson Education 20-9

Planning Technique—PERT Chart  Program Evaluation and Review Technique (PERT)  Network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion and initiation of activities  Completion time estimates made  Critical path—the path requiring the greatest amount of time is determined Copyright © 2012 Pearson Education 20-10

Planning Technique—GANTT Chart  A bar chart with project activities on the left-hand side and units of time across the top  Graphically shows the entire schedule for a large, complex project Copyright © 2012 Pearson Education 20-11

Feasibility Analysis  Does it make sense to proceed with new system?  Economic:  Will system benefits justify the time, money, and resources required to implement it?  Technical:  Can the system be developed and implemented using existing technology?  Legal:  Does the system comply with all applicable federal and state laws, administrative agency regulations, and contractual obligations?  Scheduling  Can the system be developed and implemented in the time allotted?  Operational  Does the organization have access to people who can design, implement, and operate the proposed system? Will people use the system? Copyright © 2012 Pearson Education 20-12

Capital Budgeting: Economic Feasibility Cost-Benefit Analysis  Benefits and costs are estimated and compared to determine whether the system is cost beneficial.  Benefits and costs that are not easily quantifiable are estimated and included.  If they cannot be accurately estimated, they are listed, and their likelihood and expected impact on the organization evaluated. Techniques  Payback Period  Number of years required for the net savings to equal the initial cost of the investment.  Net Present Value (NPV)  Future benefits are discounted back to the present.  Initial cost is subtracted.  Positive NPV = economically feasible.  Internal Rate of Return (IRR)  The effective interest rate that results in an NPV of zero.  A project’s IRR is compared with a minimum acceptable rate to determine acceptance or rejection. Copyright © 2012 Pearson Education 20-13

System Failure Due to Change  The best system will fail without the support of the people it serves.  Why people resist change:  Fear  Lack of top management support  Lack of communication  Disruptive nature of change  Methods of instituting change  Biases and emotions  Personal characteristics and background Copyright © 2012 Pearson Education 20-14

Types of Resistance  Aggression  Behavior that destroys, cripples, or weakens system effectiveness, such as increased error rates, disruptions, or deliberate sabotage  Projection  Blaming the new system for everything that goes wrong  Avoidance  Ignoring a new AIS in the hope that the problem (the system) will eventually go away Copyright © 2012 Pearson Education 20-15

Preventing Resistance  Obtain management support  Meet user needs  Involve users  Stress new opportunities  Avoid being too emotional  Provide user training  Reexamine performance evaluation to make sure they are aligned with new system  Keep communication lines open  Control users expectations Copyright © 2012 Pearson Education 20-16