Introduction to Systems Analysis

© Copyright 2011 John Wiley & Sons, Inc. 1-1

 Introduction to Systems Analysis
and Design
 Information technology (IT) refers to the combination of hardware,
software, and services that people use to manage, communicate, and share
information

 Systems Development - Business information systems are developed by

people who are technically qualified, business-oriented, and highly motivated.
Successful developers also must be good communicators with strong analytical
and critical thinking skills.

 Systems Analysis & Design - is a step-by-step process for developing

high-quality information systems. An information system combines information
technology, people, and data to support business requirements. For example,
information systems handle daily business transactions, improve company
productivity, and help managers make sound decisions. The IT department
team includes systems analysts who plan, develop, and maintain information
systems.
© Copyright 2011 John Wiley & Sons, Inc. 1-2
 The Impact of Information
Technology
 Who develops Information Systems?
– Traditionally:
 In-house applications
 Software packages
– Today, the choice is much more complex,
 Internet-based application services
 Outsourcing
 Custom solutions from IT consultants
 Enterprise-wide software strategies
– It is always important for companies to plan the system
carefully before considering implementation options.
 System Components
 An information system has five key components, as shown in Figure 1-8:
hardware, software, data, processes, and people.
– Hardware consists of everything in the physical layer of the information system. For
example, hardware can include servers, workstations, networks, telecommunications
equipment, fiber-optic cables, mobile devices, scanners, digital capture devices, and
other technology-based infrastructure.
– Software refers to the programs that control the hardware and produce the desired
information or results. Software consists of system software and application software.
– Data is the raw material that an information system transforms into useful
information.
– Processes describe the tasks and business functions that users, managers, and IT staff
members perform to achieve specific results.
– People who have an interest in an information system are called stakeholders.
Stakeholders include the management group responsible for the system, the users
(sometimes called end users) inside and outside the company who will interact with
the system, and IT staff members, such as systems analysts, programmers, and
network administrators who develop and support the system.

© Copyright 2011 John Wiley & Sons, Inc. 1-4

 The Impact of Information
Technology
Who participates
in the system
development life
cycle?
 System Development Methods
 Structured analysis is a traditional systems development technique that is time-tested
and easy to understand. Structured analysis uses a series of phases, called the systems
development life cycle (SDLC), to plan, analyze, design, implement, and support an
information system. Structured analysis uses a set of process models to describe a
system graphically.
 Object-Oriented Analysis - Whereas structured analysis treats processes and data as
separate components, object oriented analysis combines data and the processes that
act on the data into things called objects. Systems analysts use O-O to model real-world
business processes and operations. The result is a set of software objects that represent
actual people, things, transactions, and events. Using an O-O programming language, a
programmer then writes the code that creates the objects.
 Agile methods attempts to develop a system incrementally, by building a series of
prototypes and constantly adjusting them to user requirements. As the agile process
continues, developers revise, extend, and merge earlier versions into the final product.
An agile approach emphasizes continuous feedback, and each incremental step is
affected by what was learned in the prior steps.

© Copyright 2011 John Wiley & Sons, Inc. 1-6

 SDLC
 The systems development life cycle (SDLC) is
the process of determining how an information
system (IS) can support business needs,
designing the system, building it, and delivering
it to users.
 The key person in the SDLC is the systems
analyst, who analyzes the business situation,
identifies the opportunities for improvements,
and designs an IS to implement the
improvements.
© Copyright 2011 John Wiley & Sons, Inc. 1-7
 THE SYSTEMS ANALYST
• The systems analyst plays a key role in IS development
projects.
• The systems analyst works closely with all project team
members so that the team develops the right system in
an effective way.
• Systems analysts must understand how to apply
technology in order to solve problems.
• Systems analysts may serve as change agents who
identify organizational improvement needed, design
systems to implement those changes, and train and
motivate others to use the systems.

© Copyright 2011 John Wiley & Sons, Inc. 1-8

 Systems Analyst Skills

Technical – Must understand the

technical environment, technical
foundation, and technical solution.
Business – Must understand how IT
can be applied to business situations.
Analytical – Must be problem
solvers.
© Copyright 2011 John Wiley & Sons, Inc. 1-9
Systems Analyst Skills cont’d

Interpersonal – Need to communicate

effectively.
Management – Need to manage people
and to manage pressure and risks.
Ethical - Must deal fairly, honestly, and
ethically with other project members,
managers, and systems users.
© Copyright 2011 John Wiley & Sons, Inc. 1-10
 Systems Analyst Roles
 Systems analyst - Focuses on the IS issues surrounding the
system.
 Business analyst - Focuses on the business issues surrounding
the system.
 Requirements analyst - Focuses on eliciting the requirements
from the
 stakeholders associated with the new system
 Infrastructure analyst - Focuses on technical issues surrounding
the ways the system will interact with the organization’s technical
infrastructure (hardware, software, networks, and databases)
 Change management analyst - Focuses on the people and
management issues surrounding the system installation;
documentation, support, training
 Project manager - Ensures that the project is completed on time
and within budget, and that the system delivers the expected
vale to the organization.
© Copyright 2011 John Wiley & Sons, Inc. 1-11
Career Paths for Systems Analysts

© Copyright 2011 John Wiley & Sons, Inc. 1-12

THE SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)

© Copyright 2011 John Wiley & Sons, Inc. 1-13

(cont’d)

The SDLC is composed of four fundamental phases:

• Planning
• Analysis
• Design
• Implementation
Each of the phases is composed of steps, which
rely on techniques that produce deliverables
(specific documents that explain various elements
of the system).
© Copyright 2011 John Wiley & Sons, Inc. 1-14
 Planning

This phase is the fundamental

process of understanding why an
information system should be built,
and determining how the project
team will go about building it.

© Copyright 2011 John Wiley & Sons, Inc. 1-15

The planning phase has two steps:
1. During project initiation, the system’s business
value to the organization is identified (How
will it lower costs or increase revenues?).
2. During project management (Once the project
is approved), the project manager creates a
work plan, staffs the project, and puts
techniques in place to help the project team
control and direct the project through the
entire SDLC.
© Copyright 2011 John Wiley & Sons, Inc. 1-16
 Analysis
The analysis phase answers the questions of
who will use the system, what the system
will do, and where and when it will be used.
During this phase the project team
investigates any current system(s), identifies
improvement opportunities, and develops a
concept for the new system.

© Copyright 2011 John Wiley & Sons, Inc. 1-17

 The analysis phase has three steps:

1. Analysis strategy: This is developed to guide the projects

team’s efforts. Such a strategy usually includes a study of the
current system (called the as-is system) and its problems, and
envisioning ways to design a new system (called the to-be
system).
2. Requirements gathering: The analysis of this information leads
to the development of a concept for a new system. This
concept is used to build a set of analysis models.
3. System proposal: The proposal (often called system
requirements document) is presented to the project sponsor
and other key individuals who decide whether the project
should continue to move forward.
© Copyright 2011 John Wiley & Sons, Inc. 1-18
 Design
The design phase decides how the
system will operate, in terms of the
hardware, software, and network
infrastructure; the user interface,
forms, and reports that will be used;
and the specific programs,
databases, and files that will be
needed.
© Copyright 2011 John Wiley & Sons, Inc. 1-19
 The design phase has four steps:
1. Design Strategy: This clarifies whether the system will be
developed by the company or outside the company.
2. Architecture Design: This describes the hardware, software,
and network infrastructure that will be used. The interface
design specifies how the users will move through the
system (e.g., by navigation methods such as menus and on-
screen buttons) and the forms and reports that the system
will use.
3. Database and File Specifications: These documents define
what and where the data will be stored.
4. Program Design: Defines what programs need to be written
and what they will do.

© Copyright 2011 John Wiley & Sons, Inc. 1-20

 Implementation

During the implementation phase,

the system is either developed or
purchased (in the case of packaged
software) and installed.
This phase is usually the longest and
most expensive part of the process.

© Copyright 2011 John Wiley & Sons, Inc. 1-21

 The implementation phase has three steps:

1. System Construction: The system is

built and tested to make sure it
performs as designed.
2. Installation: The old system is turned
off and the new one is turned on.
3. Support Plan: Includes a post-
implementation review as well as a
systematic way for identifying changes
needed for the system.

© Copyright 2011 John Wiley & Sons, Inc. 1-22

Systems Development Methods

Figure 1-6 The phases and deliverables of the SDLC

are shown in the waterfall model.
PROJECT IDENTIFICATION AND INITIATION

 A project is identified when someone in the

organization identifies a business need to build
a system.
 A need may surface when an organization
identifies unique and competitive ways of using
IT.
 To leverage the capabilities of emerging
technologies such as cloud computing, RFID,
Web 2.0
© Copyright 2011 John Wiley & Sons, Inc. 1-24
Business Process Management (BPM)

 Nowadays many new IS projects

grow out of BPM.
 BPM is a methodology used by
organizations to continuously
improve end-to-end business
processes.

© Copyright 2011 John Wiley & Sons, Inc. 1-25

 BPM Process
 Defining and mapping the steps in a
business process.
Creating ways to improve on the steps in the
process that add value
Finding ways to eliminate or consolidate
steps in the process that do not add value
 Creating and adjusting electronic workflows
to match the improved process maps.

© Copyright 2011 John Wiley & Sons, Inc. 1-26

(cont’d)
technology
Business process automation (BPA) –
components are used to complement or
substitute manual process.
creating
Business process improvement (BPI) –
new, re-designed processes to improve the
workflows, and/or utilizing new technologies
enabling new process structures.
Business process reengineering (BPR) –
changing the fundamental way in which the
organization operate.

© Copyright 2011 John Wiley & Sons, Inc. 1-27

 Project sponsor
 The project sponsor is a person (or group) who has
an interest in the system’s success
 The project sponsor will work throughout the SDLC
to make sure that the project is moving in the right
direction from the perspective of the business.
 The project sponsor serves as the primary point of
contact for the project team.
 The size or scope of the project determines by the
kind of sponsor that is involved.

© Copyright 2011 John Wiley & Sons, Inc. 1-28

(cont’d)
The project sponsor has the insights needed to
determine the business value that will be gained
from the system.
Tangible value can be quantified and measured
easily (reduction in operating costs).
An intangible value results from an intuitive belief
that the system provides important, but hard-to-
measure benefits to the organization.
© Copyright 2011 John Wiley & Sons, Inc. 1-29
 System Request
The document that describes the
business reasons for building a system
and the value that system is expected
to provide.
The project sponsor usually completes
this form as part of a formal system
selection process within the
organization.
© Copyright 2011 John Wiley & Sons, Inc. 1-30
(cont’d)
 The business requirements of the project refer
to the business capabilities that the system
will need to have.
 The business value describes the benefits that
the organization should expect from the
system.
 Special issues are included on the document
as a catchall category for other information
that should be considered in assessing the
project.
© Copyright 2011 John Wiley & Sons, Inc. 1-31
(cont’d)
 The completed system request is submitted
to the approval committee for
consideration.
 The committee reviews the system request
and makes an initial determination of
whether to investigate the proposed
project or not.
 If so, the next step is to conduct a feasibility
analysis.
© Copyright 2011 John Wiley & Sons, Inc. 1-32
 FEASIBILITY ANALYSIS

Feasibility analysis guides the

organization in determining whether
to proceed with a project.
Feasibility analysis also identifies the
important risks associated with the
project that must be managed if the
project is approved.
© Copyright 2011 John Wiley & Sons, Inc. 1-33
(cont’d)
 As with the system request, each organization has
its own process and format for the feasibility
analysis, but most include techniques to assess
three areas:
– Technical feasibility
– Economic feasibility
– Organizational feasibility
 The results of evaluating these three feasibility
factors are combined into a feasibility study
deliverable that is submitted to the approval
committee at the end of project initiation.
© Copyright 2011 John Wiley & Sons, Inc. 1-34
 Technical Feasibility

Technical feasibility is the extent to

which the system can be successfully
designed, developed, and installed
by the IT group.
It is, in essence, a technical risk
analysis that strives to answer the
question: “Can we build it?”
© Copyright 2011 John Wiley & Sons, Inc. 1-35
(cont’d)
 Risks can endanger the successful completion
of a project. The following aspects should be
considered:
– Users’ and analysts’ should be familiar with the
application.
– Familiarity with the technology
– Project size
– Compatibility of the new system with the
technology that already exists

© Copyright 2011 John Wiley & Sons, Inc. 1-36

 Economic Feasibility

Economic feasibility analysis is also

called a cost-benefit analysis, that
identifies the costs and benefits
associated with the system.
This attempts to answer the
question: “Should we build the
system?”
© Copyright 2011 John Wiley & Sons, Inc. 1-37
Cash Flow Analysis and Measures

IT projects involve an initial

investment that produces a steam of
benefits over time, along with some
on-going support costs.
 Cash flows, both inflows and
outflows, are estimated over some
future period.
© Copyright 2011 John Wiley & Sons, Inc. 1-38
Simple cash flow projection

© Copyright 2011 John Wiley & Sons, Inc. 1-39

Common methods for evaluating a project’s
worth

 Return on Investment (ROI)

ROI=(Total Benefits – Total Costs)/Total Costs
Break-Even Point (BEP)

© Copyright 2011 John Wiley & Sons, Inc. 1-40

 Discounted cash flow technique
 Discounted case flows are used to compare
the present value of all cash inflows and
outflows for the project in the today’s
dollar terms.

 Net present value (NPV): the difference

between the total PV of the benefits and
the total PV of the costs.
© Copyright 2011 John Wiley & Sons, Inc. 1-41
Discounted cash flow projection

© Copyright 2011 John Wiley & Sons, Inc. 1-42

 Steps to conduct an economic feasibility
analysis

1. Identify Costs and Benefits

2. Assign Values to Costs and Benefits
3. Determine Cash Flow
4. Assess Project’s Economic Value
- ROI
- BEP
- NPV

© Copyright 2011 John Wiley & Sons, Inc. 1-43

 Identify Costs and Benefits
 The costs and benefits and be broken down in
to four categories:
– Development costs
– Operational costs
– Tangible benefits
– Intangibles

© Copyright 2011 John Wiley & Sons, Inc. 1-44

 Assign Values to Costs and Benefits
 Once the types of costs and benefits have been identified, the
systems analysts needs to assign specific dollar values to them.

© Copyright 2011 John Wiley & Sons, Inc. 1-45

 Determine Cash Flow
A formal cost-benefit analysis usually
contains costs and benefits over a
selected number or years to show
cash flow over time.
- Determine ROI
- Determine BEP
- Determine NPV

© Copyright 2011 John Wiley & Sons, Inc. 1-46

(cont’d)

© Copyright 2011 John Wiley & Sons, Inc. 1-47

 Organizational Feasibility
 Organizational feasibility of the system is how well
the system ultimately will be accepted by its users
and incorporated into the ongoing operations of the
organization.
 There are many organizational factors that can have
an impact on the project, and seasoned developers
know that organizational feasibility can be the most
difficult feasibility dimension to assess.
 In essence, an organizational feasibility analysis is to
answer the question “If we build it, will they come?”

© Copyright 2011 John Wiley & Sons, Inc. 1-48

Feasibility Analysis Assessment
factors

© Copyright 2011 John Wiley & Sons, Inc. 1-49

(cont’d)
 One way to assess the organizational feasibility is to
understand how well the goals of the project align
with the business objectives and organizational
strategies.
 A second way to assess the organizational feasibility
is to conduct stakeholder analysis.
 A stakeholder is a person, group, or organization that
can affect a new system
- Project champion
- System users
- Organizational management
- Other stakeholders
© Copyright 2011 John Wiley & Sons, Inc. 1-50
 SUMMARY
 The Systems Analyst is the key person in the development
of information systems.
 The Systems Development Lifecycle consists of four
stages: Planning, Analysis, Design, and Implementation.
 Project Identification and Initiation recognize a business
need that can be satisfied through the use of information
technology.
 System Request describes the business value for an
information system.
 A Feasibility Analysis is used to provide more detail about
the risks associated with the proposed system.

© Copyright 2011 John Wiley & Sons, Inc. 1-51

 Test Yourself
1. In order to best support user’s IT needs, IT
professionals need to understand the
company’s business operations. What
process might a system analyst use to
accomplish this?
– Business process modeling is used to represent a
company’s operations and information needs.
 Test Yourself
2. What are the five key components of
information systems?
 Test Yourself
2. What are the five key components of
information systems?

Hardware
Software
Data
Processes
People
 Test Yourself
3. How are business information systems
identified?
 Test Yourself
3. How are business information systems
identified?

– Functions and features

 Test Yourself
4. True/False: An enterprise computing system
is highly specialized and targeted for a
company’s top executives.
 Test Yourself
4. True/False: An enterprise computing system
is highly specialized and targeted for a
company’s top executives.

False
 Test Yourself
5. SDLC is an example of a ________
approach, while Extreme Programming is an
example of an __________ approach.
 Test Yourself
5. SDLC is an example of a predictive
approach, while Extreme Programming is an
example of an adaptive approach.
 Test Yourself
6. CASE tools are:
a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
 Test Yourself
6. CASE tools are:
a) an object oriented methodology
b) techniques or tools to help plan and
design information systems
c) team-based fact finding techniques
 Test Yourself
7. Objects,classes, and methods are all terms
used in structured/object oriented
methodologies
 Test Yourself
7. Objects, classes, and methods are all terms
used in object oriented methodologies
 Test Yourself
8. What are the phases of the systems
development life cycle?
 Test Yourself
8. What are the phases of the systems
development life cycle?

– Systems planning
– Systems analysis
– Systems design
– Systems implementation
– Systems operation and support
 Test Yourself
9. List at least three of the six functions of a
typical IT department
 Test Yourself
9. List at least three of the six functions of a
typical IT department
1. Application development
2. Systems support
3. User support
4. Database administration
5. Network administration
6. Web support
 Test Yourself
10. True/False: Certification is a professional
credential that is valued by little (if any)
companies.
 Test Yourself
10. True/False: Certification is a professional
credential that is valued by little (if any)
companies.

False