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