1. Introduction to Systems Development and Systems Analysis
HAPTER 18
Introduction to Systems Development and Systems Analysis

2. INTRODUCTION Questions to be addressed in this chapter include:
What are the phases in the systems development life cycle?
Who are the individuals involved in systems development?
What techniques are used to plan the development of a system?
How do you determine whether a particular system is feasible?
How do people respond to systems changes, and how can dysfunctional behavior be minimized?

3. INTRODUCTION
As the environment, technology, and competition change, an information system must continually undergo changes.
These changes range from minor adjustments to major overhauls.
Occasionally, the old system is scrapped and replaced.

4. INTRODUCTION Companies change their systems for a variety of reasons:
To respond to changes in user needs or business needs.
To take advantage of or respond to technology changes.
To accommodate improvements in their business process.
To gain a competitive advantage and/or lower costs.
To increase productivity.
To accommodate growth.
To accommodate downsizing or distribute decision making
To integrate incompatible systems.
To replace a system that is aged and unstable.

5. INTRODUCTION
Developing quality, error-free software is difficult, expensive, and time-consuming.
Projects tend to deliver less than expected and consume more time and money.
A KPMG survey found that 35% of all major information systems projects were classified as runaways—hopelessly incomplete and over budget.
Major cause of runaways: Skimping on systems development processes.
Omitting basic systems development steps becomes tempting but may lead to disaster as developers create well-structured systems that fail to meet user needs or solve business problems.

6. INTRODUCTION This chapter discusses five topics:
Systems development life cycle
Planning activities during the systems development life cycle
Feasibility analysis
Behavioral aspects of change
Systems analysis

7. SYSTEMS DEVELOPMENT LIFE CYCLE
Whether systems changes are major or minor, most companies go through a systems development life cycle.
In this section, we discuss the steps in the cycle and the people involved.

8. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

9. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

10. SYSTEMS DEVELOPMENT LIFE CYCLE
As organizations grow and change, they may need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Involves gathering the information needed to buy or develop a new system and determining whether it is a priority.

11. SYSTEMS DEVELOPMENT LIFE CYCLE
As organizations grow and change, they may need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
If the system is a priority, survey the existing system to define the nature and scope of the project and identify the strengths and weaknesses of the system.

12. SYSTEMS DEVELOPMENT LIFE CYCLE
As organizations grow and change, they may need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
Feasibility study
Involves an in-depth study of the proposed system to determine whether it’s feasible.

13. SYSTEMS DEVELOPMENT LIFE CYCLE
As organizations grow and change, they may need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
Feasibility study
Determination of information needs and system requirements
Involves finding out and documenting what users and management need.
This is the most important aspect of systems analysis.

14. SYSTEMS DEVELOPMENT LIFE CYCLE
As organizations grow and change, they may need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
Feasibility study
Determination of information needs and system requirements
Delivery of systems requirements
Involves preparation of a report summarizing the systems analysis work.
This report is submitted to the information systems steering committee.

15. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

16. SYSTEMS DEVELOPMENT LIFE CYCLE
In the conceptual design phase, the company decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Possibilities include:
Buying software
Developing in-house
Outsourcing

17. SYSTEMS DEVELOPMENT LIFE CYCLE
In the conceptual design phase, the company decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Develop design specifications
Involves writing up details of what the system is to accomplish and how it is to be controlled and developed.

18. SYSTEMS DEVELOPMENT LIFE CYCLE
In the conceptual design phase, the company decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Develop design specifications
Deliver conceptual design requirements
These requirements will be forwarded to the information systems steering committee.

19. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

20. SYSTEMS DEVELOPMENT LIFE CYCLE
In the physical design phase, the broad, user-oriented requirements of the conceptual design are translated into detailed specifications that can be used by programmers to code the programs.
Tasks include:
Design outputs, database, and inputs
Develop programs
Develop procedures
Design controls
Deliver developed system
Goes to information systems steering committee

21. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

22. SYSTEMS DEVELOPMENT LIFE CYCLE
This is the capstone phase during which everything comes together.
Tasks include:
Develop an implementation and conversion plan.
Needed because of the complexity and importance of this phase.
Install any new hardware and software.
Train personnel.
New employees may need to be hired and trained or existing employees relocated.
Test the system and make any needed modifications.
Complete the documentation.
Convert from the old to the new system.
Deliver operational system.
Send the final report to the IS steering committee.

23. SYSTEMS DEVELOPMENT LIFE CYCLE
The five stages in the systems development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

24. SYSTEMS DEVELOPMENT LIFE CYCLE
Once the system is up and running, operations and monitoring continue.
Tasks include:
Fine-tune and do post-implementation review.
Operate the system.
Periodically, review and modify the system.
Do ongoing maintenance.
Deliver improved system.

25. SYSTEMS DEVELOPMENT LIFE CYCLE
Eventually, a major modification or system replacement is necessary, and the systems development life cycle (SDLC) will start over.
In addition to the preceding five phases, three activities are performed throughout the life cycle:
Planning.
Managing behavioral reactions to change.
Assessing ongoing feasibility.
These three activities will be discussed in this chapter.
Additionally, the first phase in the SDLC, systems analysis, will be discussed in more detail.

26. THE PLAYERS
Many people are involved in developing and successfully implementing an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

27. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

28. THE PLAYERS Top management’s role in systems development is to:
Provide support and encouragement a clear signal that user involvement is important.
Help align the systems with corporate strategies.
Establish system goals and objectives.
Review IS department performance and leadership.
Establish policies for project selection and organizational structure.
Participate in important systems decisions.

29. THE PLAYERS User management needs to:
Determine information requirements for departmental projects.
Assist systems analysts with project cost-benefit estimates.
Assign key staff members to development projects.
Allocate funds.

30. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

31. THE PLAYERS
Accountants also play an important role in systems development:
As AIS users, they must determine their information needs and systems requirements and communicate them to system developers.
As members of project development teams or steering committees, they help management in the development process.
They are also active in:
Designing system controls and monitoring and testing these controls.
Ensuring the system is easy to audit.
Controls and “auditability” need to be built in early to minimize costs and inefficiencies later.

32. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

33. THE PLAYERS
The information systems steering committee is an executive-level committee whose duty is to plan and oversee the IS function.
Consists of high level management, such as:
Controller
IS Manager
User department managers
Sets policies to govern the AIS and assure top-management participation, guidance, and control.
Attempts to encourage goal congruence and reduce goal conflict.

34. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

35. THE PLAYERS
The project development team includes systems specialists, managers, accountants, auditors, and users whose responsibility is to guide development.
Their job:
Plan each project.
Monitor to ensure timely and cost-effective completion.
Ensure the human element is considered.
Communicate project status to top management and steering committee.
Communicate and meet with users to:
Consider ideas
Discuss progress
Eliminate surprises
The team approach produces more effective results and better user acceptance.

36. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

37. THE PLAYERS
Systems analysts study existing systems, design new ones, and prepare specifications that are used by programmers.
They interact with technical personnel and users to bridge the gap.
They are responsible for ensuring the system meets user needs.

38. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

39. THE PLAYERS
Computer programmers write the computer programs, using the specs developed by the systems analysts.
They also modify and maintaining existing programs.

40. THE PLAYERS
Many people are involved in developing and successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

41. THE PLAYERS External players include:
Customers
Vendors
Auditors
Governmental entities
Their needs must also be met in systems development.

42. PLANNING SYSTEMS DEVELOPMENT
Several activities must be performed at various times throughout the SDLC.
One of these activities is planning.
The organization should have plans for:
The long range.
Each systems development project.
Each phase of each systems development project.
We’ll discuss these plans and a number of techniques to develop them.

43. PLANNING SYSTEMS DEVELOPMENT
We’ve all experienced the disasters that occur when we fail to plan.
When you got it home, you realized it wasn’t compatible with your existing printer and scanner.
Furthermore, it wasn’t equipped for broadband Internet access and you had been hoping to switch to broadband.
By the time you spend the money and buy the parts to equip the computer to do what you want it to do, you find that you could have bought a leading-edge computer for less money.
Suppose you bought a personal computer on impulse without thinking about what you wanted to do with it.

44. PLANNING SYSTEMS DEVELOPMENT
Systems development planning is an important step for the following key reasons:
Consistency with the organization’s strategic plan.
Efficiency achieved through coordination of the subsystems.
Cutting edge technology and techniques.
Lower costs due to lack of duplication, wasted effort, time overruns, and cost overruns.
Adaptability for future changes.

45. PLANNING SYSTEMS DEVELOPMENT
When a system is poorly planned, a company must often return to a prior phase and correct errors and design flaws.
These returns are costly and result in delays, frustration, and low morale.

46. PLANNING SYSTEMS DEVELOPMENT
Two types of systems development plans are needed:
Individual project plans developed by the project teams.
A master plan developed by the IS steering committee.

47. PLANNING SYSTEMS DEVELOPMENT
Two types of systems development plans are needed:
Individual project plans developed by the project teams.
A master plan developed by the IS steering committee.

48. PLANNING SYSTEMS DEVELOPMENT
Individual project plans contain:
A cost-benefit analysis.
Developmental and operational requirements, including:
Human resources
Hardware
Software
Financial resources
A schedule of activities to develop and operate the new application.

49. PLANNING SYSTEMS DEVELOPMENT
Two types of systems development plans are needed:
Individual project plans developed by the project teams.
A master plan developed by the IS steering committee.

50. PLANNING SYSTEMS DEVELOPMENT
A master plan specifies:
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.
It also provides:
Status of projects in process.
Prioritization of planned projects and criteria for establishing priorities.
Timetables for development.

51. PLANNING SYSTEMS DEVELOPMENT
Projects with highest priority are first to be developed.
These decisions are made by top management.
Planning horizon:
About a 3-year horizon.
With updates at least 2–3 times/year—even more frequently in some companies.
The CIO should determine:
How soon technologies will be in wide use.
Whether the company should adopt late or early.
What business opportunities might arise from new technologies.

52. PLANNING SYSTEMS DEVELOPMENT
Planning techniques
Two techniques for scheduling and monitoring systems development activities are:
Program Evaluation and Review Technique (PERT)
Gantt Charts

53. PLANNING SYSTEMS DEVELOPMENT
Planning techniques
Two techniques for scheduling and monitor systems development activities are:
Program Evaluation and Review Technique (PERT)
Gantt Charts

54. PLANNING SYSTEMS DEVELOPMENT
A PERT diagram requires that all activities in a project be identified along with the activities that precede and follow them.
These activities are used to draw a PERT diagram, which consists of a network of:
Arrows—representing activities that require time and resources.
Nodes—representing completion and initiation of activities.

55. PLANNING SYSTEMS DEVELOPMENT
The critical path in a PERT diagram is the path requiring the greatest amount of time.
If an activity on the critical path is delayed, the whole project is delayed.
Resources may be shifted to the critical path to reduce the delay.

56. SAMPLE PERT CHART For building and selling a birdhouse.
Each block contains a task and a time estimate (may include best time, worst time, and average time).
May indicate who will be responsible for the task.
Buy Wood
& Nails
(1)
(Bill)
Build
Base
(2)
(Bill)
Nail
Together
(2)
(Bill)
Paint &
Decorate
(3)
(Sara)
Sell
(2)
(Sara)
Design
Birdhouse
(2)
(Bill)
Buy
Paint
(1)
(Sara)
Build
Roof
(1)
(Bill)

57. PLANNING SYSTEMS DEVELOPMENT
Planning techniques
Two techniques for scheduling and monitor systems development activities are:
Program Evaluation and Review Technique (PERT)
Gantt Charts

58. PLANNING SYSTEMS DEVELOPMENT
A Gantt chart is a bar chart with project activities on the left and time across the top.
For each activity, a bar of expected time is drawn.
As activities are completed, the bar is filled in.
The Gantt chart makes it easy to eyeball the chart and understand the current status of a project.
But the chart does not show the relationship between activities like the PERT chart does.

59. SAMPLE GANTT CHART
Complete
Testing
In Development
Milestone

60. FEASIBILITY ANALYSIS
During the systems analysis phase, a feasibility study (aka, a business case) is prepared and is updated during the remaining steps in the SDLC.
The extent of the feasibility study depends on the size and nature of the system.
Feasibility team should include:
Management
Accountants skilled in controls and auditing
Systems personnel
Users

61. FEASIBILITY ANALYSIS
The feasibility study and its updates are used by the steering committee as the project proceeds to decide whether to:
Terminate the project
Proceed
Proceed if specific problems are resolved

62. FEASIBILITY ANALYSIS
Five aspects need to be considered during a feasibility study:
Technical feasibility
Is the technology there to do it?
Operational feasibility
Do we have people who can do it, and will it get used?
Legal feasibility
Does it comply with legal, regulatory, and contractual obligations?
Scheduling feasibility
Can it be done in time?
Economic feasibility
Will the benefits exceed the costs?

63. FEASIBILITY ANALYSIS
Calculating economic feasibility costs and benefits
Economic feasibility is probably the most important and frequently analyzed aspect.
This examination requires a careful investigation of costs and benefits.
It typically uses a capital budgeting model that considers:
Cost savings and other benefits
Initial outlay costs
Operating costs
Other costs

64. FEASIBILITY ANALYSIS
When possible, benefits and costs should be estimated and included even if they are not easily quantifiable.
If some costs and benefits cannot be accurately estimated, they should at least be listed, along with the likelihood of their occurrence and their expected impact.

65. FEASIBILITY ANALYSIS Benefits might include: Cost savings.
Improved customer service, productivity, decision making, or data processing.
Better management control.
Increased job satisfaction and employee morale.
A rigorous cost-benefit analysis is a good strategy for ensuring the benefit of new information technology exceeds the cost.

66. FEASIBILITY ANALYSIS Costs might include:
Equipment costs
Initial outlay plus ongoing operating costs.
Software costs
Costs of acquiring, maintaining, supporting, and operating.
Human resource costs
Salaries, as well as costs of hiring, training, and relocating staff.
Site preparation costs.
Installation and conversion costs.
Supplies.
Overhead.
Financial charges.
The primary operating cost is maintaining the system.
Makes up 65–75% of the organization’s system efforts.

67. FEASIBILITY ANALYSIS Capital budgeting
Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives.
There are three commonly used techniques:
Payback period
Calculates the number of years before the new savings from the project equal the initial cost of the investment.
Select projects with shorter payback periods.

68. FEASIBILITY ANALYSIS Capital Budgeting
Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives.
There are three commonly used techniques:
Payback period
Net present value (NPV)
Calculates and sums the discounted future cash flows of the costs and benefits.
Select projects with higher positive NPV.

69. FEASIBILITY ANALYSIS Capital Budgeting
Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives.
There are three commonly used techniques:
Payback period
Net present value (NPV)
Internal rate of return (IRR)
Calculates the effective interest rate that would result in a net present value of zero for the project.
Select projects with higher IRRs.

70. BEHAVIORAL ASPECTS OF CHANGE
The best system will fail without the support of the people it serves.
So the behavioral aspects of change are crucial.
You need to be aware of and sensitive to the types of behavioral problems that can result from change.

71. BEHAVIORAL ASPECTS OF CHANGE
Why behavioral problems occur
Employees will tend to view change as good if they believe it will affect them positively and vice versa.
The Department of Defense with 3.3 million employees has faced tremendous resistance to change in the course of over 20 years of system integration attempts.
A more transparent system would likely expose personal agendas and a “project protection” mindset.

72. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Employees are more likely to accept change if they are:
Young;
Highly educated; or
Comfortable with technology.

73. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
The rationale used to sell the system may need to vary with the job responsibilities of the employees involved.

74. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Fool me once, shame on me . . .
Let’s see if I even give you a second chance.

75. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support

76. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication

77. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication
Biases and natural resistance to change
Employees may be too emotionally attached to their duties, i.e., “sacred cows.”

78. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication
Biases and natural resistance to change
Disruptive nature of the change process
Disturbances often create negative feelings.

79. BEHAVIORAL ASPECTS OF CHANGE
To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication
Biases and natural resistance to change
Disruptive nature of the change process
Fear
May include fear of:
The unknown
Failure
Technology
Losing respect or status
Losing their jobs

80. BEHAVIORAL ASPECTS OF CHANGE
How people resist AIS changes
Resistance to change often takes one of three forms:
Aggression
Behavior intended to destroy, cripple, or weaken the system’s effectiveness.
Examples: Increased error rates, disruptions, or deliberate sabotage.

81. BEHAVIORAL ASPECTS OF CHANGE
How people resist AIS changes
Resistance to change often takes one of three forms:
Aggression
Projection
Blaming the new system for any and every unpleasant occurrence, i.e., the system becomes a scapegoat.
To preserve the integrity of the system, these criticisms must be controlled or answered.

82. BEHAVIORAL ASPECTS OF CHANGE
How people resist AIS changes
Resistance to change often takes one of three forms:
Aggression
Projection
Avoidance
“If I don’t use this thing, maybe it will go away!”
At Davis Controls, the CEO eventually had to terminate employees who avoided using a new information system.

83. FEASIBILITY ANALYSIS
Reactions to change can be improved by observing the following guidelines:
Meet user’s needs with respect to the form, content, and volume of system output.
Keep communication lines open. Managers and users should be fully informed about:
What changes are being made
Why
How it will benefit them
Who to contact with questions

84. FEASIBILITY ANALYSIS Maintain a safe and open atmosphere.
If employees become hostile, it’s an uphill battle you probably won’t win.
Obtain management support.
Allay fears.
To the extent possible, reassure employees that no major job losses or responsibility shifts will occur.
If employees are terminated, severance pay and outplacement services should be provided.

85. FEASIBILITY ANALYSIS Solicit user participation.
It is ego enhancing, challenging, and intrinsically satisfying.
Users who participate will be more committed to using the system.
Provide honest feedback.
Explain which suggestions are and are not being used and why.
Make sure users understand the system.
Don’t underestimate training needs.

86. FEASIBILITY ANALYSIS Humanize the system.
Employees shouldn’t feel the computer is controlling them or has usurped their positions.
Describe new challenges and opportunities.
The system can provide greater job satisfaction and increased opportunities.
Reexamine performance evaluation.
Are performance standards and criteria realistic in light of the change?
Test the system’s integrity.
It’ important to minimize bad impressions

87. FEASIBILITY ANALYSIS Avoid emotionalism.
Emotional issues should be allowed to cool, handled in a non-confrontational manner, or sidestepped.
Present the system in the proper context.
Address the concerns of the people to whom you’re speaking, not the concerns of management or developers.
Control the user’s expectations.
Don’t oversell, and be realistic.
Keep the system simple.
Avoid complex systems that cause radical changes.

88. FEASIBILITY ANALYSIS
Ignoring the preceding steps can leave to behavior issues that are difficult or impossible to reverse.

89. SYSTEMS ANALYSIS
When a new or improved system is needed, a written request for systems development is prepared. That request describes:
The current system’s problems.
The reasons for the proposed changes.
The goals and objectives of a proposed system.
The anticipated benefits and costs.

90. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

91. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

92. SYSTEMS ANALYSIS The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Sometimes what is thought to be the cause of the problem is not the real source.

93. SYSTEMS ANALYSIS The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Determine the viability of the project and expected costs and payoffs.

94. SYSTEMS ANALYSIS The initial investigation is conducted to:
A new AIS is useful when problems are a result of:
Lack of information
Inaccessibility of data
Inefficient data processing
A new AIS will not answer problems such as:
A manager who has too many subordinates
A manager who lacks organizational skills
Failure to enforce existing problems
The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Determine the viability of the project and expected costs and payoffs.
Evaluate the scope and nature of the new AIS.

95. SYSTEMS ANALYSIS The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Determine the viability of the project and expected costs and payoffs.
Evaluate the scope and nature of the new AIS.
Recommend whether to proceed.
Either:
Initiate the project as proposed.
Modify it.
Abandon it.

96. SYSTEMS ANALYSIS If the project is approved:
A proposal to conduct systems analysis is prepared.
The project is assigned a priority and added to the master plan.
The development team begins a survey of the existing AIS.
The proposal will be modified as more information becomes available.

97. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

98. SYSTEMS ANALYSIS
A systems survey involves an extensive study of the current AIS which could take weeks or months. Objectives are:
Gain a thorough understanding of:
Company operations, policies, and procedures.
Data and information flow.
AIS strengths and weaknesses.
Available hardware, software, and personnel.
Make preliminary assessments of current and future processing needs, and determine extent and nature of needed changes.
Develop working relationships with users and build support.
Collect data that identify user needs, conduct a feasibility analysis, and make recommendations to management.

99. SYSTEMS ANALYSIS Data can be gathered from: Employees.
Documentation such as organization charts and procedure manuals.
External sources such as:
Consultants
Customers
Suppliers
Industry associations
Government agencies

100. SYSTEMS ANALYSIS Four common methods of gathering data are: Interviews
Questionnaires
Observation
System documentation

101. SYSTEMS ANALYSIS Four common methods of gathering data are: Interviews
Questionnaires
Observation
System documentation

102. SYSTEMS ANALYSIS Advantages of interviews:
Can answer “why” questions.
Can allow for follow-up and clarification.
Provides opportunity to build positive relationships with interviewees and support for new system.
Disadvantages of interviews:
Time-consuming.
Expensive.
Personal biases or self-interest may produce inaccurate information.

103. SYSTEMS ANALYSIS When you do interviews: Make an appointment.
Explain the purpose ahead of time.
Indicate the amount of time needed.
Be on time.
Be familiar with the interviewee’s responsibilities.
Make notes on points to cover.
Put the interviewee at ease and let him/her do the talking.
Pay attention to nonverbal cues.
Take notes and augment them with impressions after the interview.
Request permission to tape critical interviews.

104. SYSTEMS ANALYSIS Four common methods of gathering data are: Interviews
Questionnaires
Observation
System documentation

105. SYSTEMS ANALYSIS Questionnaires can be used when:
The amount of information to be gathered is small and well defined.
The information is to be obtained from many people or from those who are remotely located.
The information is intended to verify data from other sources.

106. SYSTEMS ANALYSIS Advantages of questionnaires:
Can be anonymous.
Not time-consuming to complete.
Inexpensive.
Allows the subject time to think about responses.
Disadvantages of questionnaires:
Does not allow in-depth questions or answers.
Does not allow follow-up or clarification.
Does not build relationships.
Difficult to develop.
May be ignored or completed superficially.

107. SYSTEMS ANALYSIS Four common methods of gathering data are: Interviews
Questionnaires
Observation
System documentation

108. SYSTEMS ANALYSIS Advantages of observations:
Can verify how the system actually works rather than how it should work.
Results in greater understanding of systems.
Disadvantages of observations:
Time-consuming.
Expensive.
Difficult to interpret.
People may alter behavior while being observed.

109. SYSTEMS ANALYSIS When you do observations:
Identify what is to be observed and estimate the time required.
Obtain permission.
Explain what will be done and why.
Don’t make value judgments.
Take notes and document impressions ASAP.

110. SYSTEMS ANALYSIS Four common methods of gathering data are: Interviews
Questionnaires
Observation
System documentation

111. SYSTEMS ANALYSIS Advantages of systems documentation:
Describes how the system should work.
Written form facilitates review and analysis.
Disadvantages of systems documentation:
Time consuming.
May be elusive.
When you examine systems documentation:
Keep in mind that the system doesn’t always work as it should per the documentation.
If documentation is unavailable, it may be worthwhile to develop it.

112. SYSTEMS ANALYSIS
Once the data is gathered, document findings and model the existing system.
Documentation consists of:
Questionnaire copies
Interview notes
Memos

113. SYSTEMS ANALYSIS Another form of documentation is a system model:
Physical models illustrate how a system functions by describing:
Flow of documents.
Computer processes performed and the people doing them.
Equipment used.
Any other physical elements.
Logical models illustrate what is being done regardless of how the flow is accomplished.

114. SYSTEMS ANALYSIS
When documentation is complete, analyze the existing system:
Evaluate the AIS’s strengths and weaknesses to develop ideas for designing and structuring the new AIS.
Try to retain strengths.
Correct weaknesses.
Sometimes, you need revolutionary, rather than evolutionary change.
Called reengineering.

115. SYSTEMS ANALYSIS
At the end of this phase, prepare systems survey report:
Outlines and documents the data gathered.
Provides recommendations that result from the systems survey.

116. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

117. SYSTEMS ANALYSIS
After the systems survey, a more thorough feasibility analysis is conducted.
This analysis is updated regularly as the project proceeds and costs and benefits become clearer.

118. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

119. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Describes what is to be done and by whom.

120. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Describes name, size, format, source, and significance of necessary data elements.

121. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
A preliminary structure showing how the data elements will be organized into logical records.

122. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
Outputs
Layouts of system outputs and a description of their purpose, frequency, and distribution.

123. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
Outputs
Inputs
A copy of system inputs and a description of their contents, source, and who is responsible for them.

124. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
Outputs
Inputs
Constraints
A description of deadlines, schedules, security requirements, staffing limitations, and legal requirements.

125. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
Outputs
Inputs
Constraints
Controls
Controls that are needed to ensure accuracy and reliability.

126. SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes
Data elements
Data structure
Outputs
Inputs
Documentation constraints
Controls
Reorganizations
Changes in staffing, job functions, etc., that would be necessary.

127. SYSTEMS ANALYSIS Issues:
There is much to be specified, even for a simple AIS.
It may be difficult to get employees to accurately articulate their needs.
Errors are best caught early, as the cost to correct them increases significantly the farther you are into the project.

128. SYSTEMS ANALYSIS Systems objectives and constraints
Many entities take a systems approach to determining information needs and systems requirements.
Problems and alternatives are viewed from the standpoint of the entire organization—as opposed to a single department.

129. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Able to help users make decisions.

130. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Benefits exceed costs.

131. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Data is processed accurately and reliably.

132. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
You can access it when you need it.

133. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
More critical information is provided first.

134. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Efficient and courteous.

135. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Can handle peak periods.

136. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use

137. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Can accommodate changes.

138. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Easily understood.
Facilitates problem solving and future development.

139. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Auditability

140. SYSTEMS ANALYSIS
Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Auditability
Security
Available only to authorized users.

141. SYSTEMS ANALYSIS There are often trade-offs between objectives.
Organizational constraints make it impossible to develop all parts of an AIS simultaneously.
You divide it into modules that are analyzed, developed, and installed independently.
When changes are made, only the affected modules need to be changed.
The modules should be properly integrated into a workable system.

142. SYSTEMS ANALYSIS
Success often depends on the project team’s ability to cope with organizational constraints, including:
Requirements of governmental agencies.
Managerial policies and guidelines.
Lack of sufficient, qualified staff.
Capabilities and attitudes of users.
Available technology.
Limited financial resources.

143. SYSTEMS ANALYSIS Strategies for determining requirements:
One or more of the following four strategies are used to determine AIS requirements:
Ask users what they need
This is the simplest and fastest strategy.
But many people don’t realize or understand their true needs.
It’s sometimes better to ask them what decisions they make and what processes they are involved in.
Users also need to think beyond their current information needs.

144. SYSTEMS ANALYSIS Strategies for determining requirements:
One or more of the following four strategies are used to determine AIS requirements:
Ask users what they need
Analyze existing systems
Internal and external systems should be analyzed to avoid reinventing the wheel.

145. SYSTEMS ANALYSIS Strategies for Determining Requirements:
One or more of the following four strategies are used to determine AIS requirements:
Ask users what they need
Analyze existing systems
Examine existing system use
Certain modules:
May not be used as intended
May be augmented by manual tasks
May be avoided altogether
Helps determine whether the system really needs to be simply modified rather than replaced.

146. SYSTEMS ANALYSIS Strategies for Determining Requirements:
One or more of the following four strategies are used to determine AIS requirements:
Ask users what they need
Analyze existing systems
Examine existing system use
Create a prototype
Entails roughing out a system for users to critique.
When they see something on a screen, it’s easier to identify what they like and don’t like.
Goes through iterations of improving and reviewing with users until users agree on their needs.

147. SYSTEMS ANALYSIS Documentation and approval of user requirements:
Detailed requirements for the new AIS should be created and documented.
How to produce the required features is determined during the design phases of the SDLC.
The requirements list should be supported by sample input and output forms and charts that make it easier to conceptualize.
A nontechnical summary is often prepared for management.

148. SYSTEMS ANALYSIS
Once user requirements have been determined and documented, the project team:
Meets with users.
Explains the requirements.
Obtains their agreement and approval.
When an agreement is reached, user management should sign off on the requirements.

149. SYSTEMS ANALYSIS
The project development team will conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

150. SYSTEMS ANALYSIS
The last step in systems analysis is the systems analysis report.
Summarizes and documents the activities.
Serves as a repository of data from which designers can draw.
Outlines:
Goals and objectives of the new system.
Scope of the project.
How the new system fits into the company’s master plan.
User processing requirements and information needs.
Feasibility analysis.
Recommendations for the new system.

151. SYSTEMS ANALYSIS
A go-no-go decision is usually made three times during systems analysis:
During the initial investigation to determine whether to go ahead with a systems survey.
At the end of the feasibility study to determine whether to proceed with the information requirements step.
At the completion of the analysis phase to decide whether to proceed to the next phase (conceptual design).

152. SYSTEMS ANALYSIS
When systems analysis is completed, the project can move on to:
Conceptual design phase
Physical design phase
Implementation and conversion
Operation and maintenance

153. SUMMARY
You’ve learned about the five phases in the systems development life cycle, with a particular emphasis on systems analysis.
You’ve learned who the players are in the systems development process.
You’ve learned about various techniques that are used to plan the development of a system.
You’ve reviewed some techniques for determining system feasibility.
You’ve learned about behavioral responses to systems changes and how dysfunctional behavior can be minimized.