Chapter two

Developing information system solutions

Introduction

Systems Analysis once a development project has the necessary approvals from all participants,
the systems analysis stage begins. Systems analysis is the examination of the business problem
that the organization plans to solve with an information system. This stage defines the business
problem, identifies its causes, specifies the solution, and identifies the information requirements
that the solution must satisfy. Understanding the business problem requires understanding the
various processes involved. These can often be quite complicated and interdependent. Analysts
have a variety of tools that support this analysis. Organizations have three basic solutions to any
business problem: (1) Do nothing and continue to use the existing system unchanged. (2) Modify
or enhance the existing system. (3) Develop a new system.

The main purpose of the systems analysis stage is to gather information about the existing system,
to determine which of the three basic solutions to pursue, and to determine the requirements for an
enhanced or new system. The end product (the “deliverable”) of this stage is a set of systems
requirements. Arguably the most difficult task in systems analysis is to identify the specific
information requirements that the system must satisfy. Information requirements specify what
information, how much information, for whom, when, and in what format. Systems analysts use
many different techniques to obtain the information requirements for the new system.
2.0 Solving Business Problems with Information Systems
2.1 A systems approach to problem solving
The scientific Method
The systems approach is based on a widely accepted problem solving methodology known as the
scientific method.
The scientific method consists of the following steps:
✓ Recognize phenomena in the real world
✓ Formulate a hypothesis about the causes or effects of the phenomena
✓ Test the hypothesis through experimentation
✓ Evaluate the results of the experiments
✓ Draw conclusions about the hypothesis

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The systems Approach
The systems approach is a modification of the scientific method. It stresses a systematic process
of problem solving. Problems and opportunities are viewed in a systems context. Studying a
problem and formulating a solution becomes an organized system of interrelated activities, such
as:
➢Define a problem or opportunity in a systems context
➢Gather data describing the problems or opportunity
➢Identify alternative solutions
➢Evaluate each alternative solution using criteria that reveal their advantages and
disadvantages
➢ Select the best solution that best meets the evaluation criteria
➢ Implement the selected solution according to implementation plan.
➢ Evaluate the success of the implemented solution
Note:
▪ The steps in the systems approach can overlap each other
▪ Activities required for problem solving can be used in more than one step of the
process
Those steps can be grouped into three broad stages of problem solving.
1. Understanding a problem or opportunity
You can't solve a problem or pursue an opportunity if you don't understand it. That is why the first
stage of the systems approach is necessary.
I. Defining problems and opportunities
a) Separating problems or opportunities from symptoms
Symptoms must be separated from problems. Symptoms are merely signals of an underlying cause
or problem. A problem: A basic condition that is causing undesirable results.
An opportunity: is a basic condition that presents the potential for desirable results.E.g. the fact
that "sales are declining" is a symptom, not a properly defined problem.

b. Identifying systems in the organization and environment

Thus, to understand a problem or opportunity, you must understand both the organizational
systems and environmental systems in which the problem oropportunity arises.
➢ A business as an organizational system
The concept of a business as a system helps us isolate and better understand how a problem or
opportunity may be related to the basic system components of a business. It also emphasizes the
vital feedback role played by information systems in helping managers control the performance of

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their organizations.
➢ Environmental systems
A business is a subsystem of society and is surrounded by the other systems of the business
environment. A business tries to maintain proper interrelationships with the economic, political
and social stakeholders in its environment. Therefore, the stakeholders that interact with a business
should be identified this helps determine their effect on a problem or its solution.
➢ Organizational subsystems
A business is typically subdivided into various organizational subsystems For example; most
businesses are organized into departments divisions, and other types of business units. Firms may
also be subdivided into subsystems such as project teams, product groups, task forces, etc.
Whatever the case, you must try to identify these subsystems, the boundaries of each subsystem,
and their relationships to each other Process called decomposition.
➢ Relationships between systems
Once you have identified the subsystems in an organizational system, you can analyze the
relationships and connections between them.
Such analysis is frequently aided by a black box approach, where you concentrate on defining the
boundaries, interfaces, inputs, and outputs of a system but do not attempt to study the technical
details of transformation processes. In other words, a system's processing component remains in
an undefined black box while you study the components that define that system's interactions with
other components that define that system's interactions with other systems.

➢ Evaluating selected systems

The specific systems (or subsystems) in which a problem or opportunity arises should be viewed
as systems of input processing, output, feedback, and control components. To really understand a
problem and solve it you should try to determine if basic system functions are being properly
performed.
c. Determining objectives, standards, and constraints
Objectives: When using the systems approach, you should determine the objectives of the
organizational systems and subsystems you wish to study.
Standards: It is also important to identify the standards used to measure progress toward the
objectives of a system.

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Constraints: Constraints are restrictions on the form and content of a solution.
II. Gathering Data and Information
In order to properly understand a problem or opportunity you must gather data and information
about it.
2. Developing a solution
Once you understand a problem or opportunity, you can develop an appropriate solution.
It consists of three steps:

i. Designing alternative solutions

Jumping immediately from problem definition to a single solution is not a good idea. It limits your
options and robs you of the chance to consider the advantages and disadvantages of several
alternatives.
Where do alternative solutions come from?: Experience, The advice of others- including
consultants and expert, your intuition, ingenuity and creativity, Simulation - through decision
support software, also, don't forget that "doing nothing" about problem or opportunity is a
legitimate solution.
ii. Evaluating Alternative solutions
Once alternative solutions have been developed, they must be evaluated so that the best solution
can be identified.
Evaluation Criteria: Cost/ benefit analysis
Cost: Tangible costs- e.g. costs of hardware and software, employee salaries, etc
Intangible costs- are difficult to quantify, such as the loss of customer goodwill or employee morale
caused by errors and disruptions arising from the installation of a new system.
Benefits: Tangible benefits- are favorable results, such as the decrease in payroll costs caused by
a reduction in personnel or a decrease in inventory carrying costs caused by a reduction in
inventory like Increase in sales or profits, decrease in information processing costs, Decrease in
operating work….
Intangible benefits- harder to estimate: Better customer service or faster and more accurate
information for management, improved management decision-making, improved image.

iii. Selecting the best solution

Once all alternative solutions have been evaluated, the process of selecting the best solution can

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begin. Alternative solutions can be compared to each other because they have been evaluated using
the same criteria been evaluated using the same criteria.
3. Implementing a solution
i. Implement the selected solution
An implementation plan may have to be developed. Typically, an implementation plan specifies
the activities resources, and timing needed for proper implementation.
ii. Evaluate the success of the implemented solution
The results of implementing a solution should be monitored and evaluated. The focus of this step
is to determine if the implemented solution has indeed helped the firm and selected business units
meet their system objectives. If not, the systems approach assumes you will cycle back to a
previous step and make another attempt to find a workable solution previous step and make another
attempt to find a workable solution.

2.2 The Systems Development Cycle

Developing information system solutions to business problems is typically a multi step process or
cycle. This is frequently called the systems development cycle or systems development life cycle
(SDLC).
The traditional information systems development cycle includes five steps:
Investigation (Systems Investigation): product feasibility study
Analysis (Systems Analysis): Product system requirements
Design (Systems Design): Product System Specification
Implementation (Systems Implementation): Product Operational system
Maintenance: Improved system
The figure next page summarizes what goes on in each stage of the traditional information systems
development cycle.

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 Systems Investigation

product:
Feasibility study
System Development

Systems Analysis

Product:
Cycle

system Reguirements

Systems Design

Product:
System Specification

Systems Implementation

Product:
Operational system

Systems Maintenance

Product Improved
system

Fig 2.1: stage of the traditional information systems development cycle

1. Systems Investigation
This stage includes the following three steps:
i. Information systems planning
Survey the organization to screen and select potential systems development projects, including
those generated by formal information systems planning. Determine whether a business problem

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or opportunity exists.
ii. Feasibility studies
A feasibility study is a preliminary study to investigate the information needs of prospective end
users and the objectives, constraints, basic resource requirements, costs, benefits, and feasibility
of a proposed project.
The feasibility of a proposed system can be evaluated in terms of four major categories:
Organizational feasibility- how well the proposed system supports the strategic plan of the
organization.
Economic feasibility- whether expected cost savings increased revenue, increased profits
reductions in required investment, and other benefits exceed the costs of developing and operating
a proposed system.
Technical feasibility- whether reliable hardware and software capable of meeting the needs of
a proposed system.
Operational feasibility- the willingness and ability of the management, employees, customers,
suppliers, and so on to operate, use, and support a proposed system.
iii. Feasibility report
This report is submitted to the management of the firm for its approval before development work
can begin. If management approves the recommendations of the feasibility study, the systems
analysis stage can begin.

2. Systems Analysis
It is an in-depth study of end user information requirements that is needed before the design of a
new information system can be completed.
It traditionally involves a detailed study of:
✓ The information needs of the organization and its end users (organizational analysis
(subsystem, management structure, and its people), its business activities and
environmental systems).
✓ The activities, resources, and products of any present information systems (Analysis of the
present system): system that will be improved or replaced.
✓ The information system capabilities required to meet the information needs of users /
Functional requirements analysis-difficult task

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 3. Systems Design
Systems design specifies how the system will accomplish this objective andconsists of design
activities, which produce system specifications satisfying the system requirements developed in
the systems analysis stage.
Systems design consists of three activities: User Interface, Data, and process Designs

i. User Interface design:

Focuses on designing the interaction between end users and computer systems. It concentrates on
input /output methods and the conversion of data and information between human readable and
machine-readable forms. Therefore, the UID produces detailed specifications for information
products such as display screens, interactive user/ computer dialogues, audio responses, forms
documents, and reports
ii. Data Design:
Focuses on the design of the logical structure of databases and files to be used by the proposed
information system
Data design produces detailed descriptions of:
✓ The entities - people, places, things, events about which the proposed information system
needs to maintain information
✓ The relationships between these entities
✓ The specific data elements (databases, files, records, etc.)
iii. Process design:
Focuses on the design of the software resources, i.e., the programs and procedures needed by the
proposed information system. It concentrates on developing detailed specifications for the program
modules that will have to be: - Purchased as software packages, or Developed by custom
programming.

4. Systems implementation
It involves: acquisition of hardware and software, developing any computer programs that will
not be acquired externally as software packages, educating and training: management, end users,
and operating personnel, Testing and making necessary corrections to the programs, procedures,
and hardware used by a new system.

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 5. Systems Maintenance
Involves -a post implementation review process to monitor, evaluate, and modify the system as
needed.Errors in the development or use of a system are corrected by the maintenance activity.

Computer- Aided systems Development

Major changes are occurring in the traditional process of information systems just described. This
is because the SDLC is inflexible, time-consuming, and expensive
A computer-aided system engineering (CASE) process has emerged due to the availability of
fourth-generation languages (4GL) and a variety of software packages for system development.

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