Chapter 20
Introduction to
Systems
Development and
Systems Analysis
What Initiates Systems Analysis?
• Solve a problem
• New requirements
• New technology
• Competitive advantage
• Productivity gains
• Outgrow current system
• Distribute processing
Systems are continually
being modified
and replaced
Why Perform Systems Analysis?
• 75% of all large systems are not used as intended or generate meaningless or inaccurate data
• Over 40% of IT projects don’t produce a satisfactory outcome
• Half of systems projects are challenged or in trouble
• 35% of all major systems projects are runaways
System Development
Life Cycle
Systems
Analysis
Systems
Design(conceptual and
physical)
Systems
Operation and
Maintenance
Systems
Implementation
and ConversionUSERS
Systems
Master
Plan
Information Systems
Steering Committee
• Sets long-term strategic
Systems Master Plan
• Identifies development
priorities
• Who should sit on
committee?
System Analysis Participants
• ISSC
– initiate analysis; review progress
• Management
– provide support & direction
• Accountants
– users, evaluators, control consultants
• Project Development Team
– Systems analysts, management, accountants,
users, programmers
Systems Development Plans
Master
Plan
Project
Development
Plan
Long-range planning
document developed by ISSC –
encompasses all projects
Developed for each project –
Contains schedule of activities,
requirements and timetables
Feasibility Study
• Determine feasibility as to:
– Technological implementation
– Operational objectives
– Time constraints
– Legal requirements
– Economic costs vs. benefits
• Report findings to ISSC
– determine whether to proceed
Economic Feasibility
• Capital Budgeting
– Payback
• how long to recoup investment
• considers return of investment vs.
return on investment
– NPV
• discounted cash flow analysis
– IRR
• calculates effective rate of return
• NPV = 0
Manage Change
• Involve users
• Communicate benefits
• Alleviate fears
• Management support
• Keep changes manageable
Systems Analysis
Initial Investigation
Systems Survey
Determine Detailed Information Needs
and Systems Requirements
Deliver Systems Requirements
Initial Investigation
• Designed to answer:
– What are problems/changes required?
– What are objectives/goals of changes?
– Is project viable?
– Is it cost/beneficial?
• Recommendation to ISSC?
Continue? Modify?Abandon?
System Survey
• Document existing system:
– info on data flows
– effectiveness of current system
– efficiency " " "
– adequacy of I/C
• Via:
– documentation/report review
– interviews & questionnaires
– DFD's and other tools
Identify Information Needs and System
Requirements
Outputs
Data
Processes
Inputs
Objectives
Magnetic
Tape or
On-line
Storage
USERS
Systems Analysis Report
Report to ISSC:
• Objectives
• Scope
• Requirements
– System
– Resource
• Estimated cost
Description of system including:
Systems Approach
• Consider ramifications of overall
organization
• Break into smaller integrated modules
(limit scope)
• Use a team with varying expertise
• Approval at end of each phase by ISSC
Provides
accurate
and
timely
info
Satisfies users
Meets
organization's
needs
Qualities of a Successful
System
Developed in
reasonable time
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