1. SYSTEMS ANALYSIS
Chapter-2

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

3. 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.

4. 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

5. (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.

6. (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.

7. 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.

8. (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.

9. 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.

10. 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

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. (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.

17. THANK YOU