Principles of Information Systems, Sixth Edition

Chapter 12

Chapter 12
Systems Investigation and Analysis
At a Glance

Instructors Manual Table of Contents

Chapter Overview

Chapter Outline

Chapter Principles and Objectives

Teacher Notes

Quick Quizzes

Teaching Tips

Further Readings or Resources

Discussion Questions

Projects to Assign

Key Terms

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Chapter Overview
Systems development is the activity of creating or modifying existing business systems. It refers to all
aspects of the process, from identifying problems to be solved or opportunities to be exploited, to the
implementation and refinement of the chosen solution. In order to effectively create an information system,
a team consisting of stakeholders, managers, users, systems development specialists, and support personnel
is required. The process begins with careful planning and the identification of problems and opportunities.
After selecting those items requiring immediate attention, systems analysis can be conducted to determine
user requirements and to understand the system currently in place. Successful systems development means
that the system must be delivered on time and within budget and a variety of tools and techniques can be
used to ensure that this occurs.

Chapter Outline
Lecture Topics
An Overview of Systems Development
Systems Development Lifecycles
Factors Affecting Systems Development
Success
Systems Investigation
Systems Analysis

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Chapter Principles and Objectives

Principles
Effective systems development requires a team
effort of stakeholders, users, managers, systems
development specialists, and various support
personnel, and it starts with careful planning.

Learning Objectives

Systems development often uses tools to select,

implement, and monitor projects, including net
present value (NPV), prototyping, rapid application
development, CASE tools, and object-oriented
development.

Systems development starts with investigation and

analysis of existing systems.

Identify the key participants in the systems

development process and discuss their roles.
Define the term information systems planning
and list several reasons for initiating a systems
project.
Identify important system performance
requirements for applications that run on the
Internet or a corporate intranet or extranet.
Discuss three trends that illustrate the impact of
enterprise resource planning software packages
on systems development.
Discuss the key features, advantages, and
disadvantages of the traditional, prototyping,
rapid application development, and end-user
systems development life cycles.
Identify several factors that influence the
success or failure of a systems development
project.
Discuss the use of CASE tools and the object
oriented approach to systems development.

State the purpose of systems investigation.

Discuss the importance of performance and cost
objectives.

State the purpose of systems analysis and

discuss some of the tools and techniques used
in this phase of systems development.

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Teacher Notes
An Overview of Systems Development
Systems development is the process of transforming organizational problems or opportunities into
information technology enabled solutions. The following table summarizes its primary participants:
Participants in
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Stakeholders
Users
Systems analyst
Programmer

In the context of systems development, stakeholders are individuals who, either themselves or through the
area of the organization they represent, benefit from the systems development project. Users are individuals
who will interact with the system regularly. They can be employees, managers, or suppliers. A systems
analyst is a professional who specializes in analyzing and designing business systems. Systems analysts
play various roles while interacting with the stakeholders and users, management, vendors and suppliers,
external companies, software programmers, and other IS support personnel. The programmer is
responsible for modifying or developing programs to satisfy user requirements. Like a contractor
constructing a new building or renovating an existing one, the programmer takes the plans from the systems
analyst and builds or modifies the necessary software.

Initiating Systems Development

Systems development begins when an individual or group capable of initiating organizational change
perceives a need for a new or modified system. Such individuals have a stake in the development of the
system. Systems development initiatives arise from all levels of an organization and are both planned and
unplanned. Solid planning and managerial involvement helps ensure that these initiatives support broader
organizational goals.

Information Systems Planning

The term information systems planning, refers to the translation of strategic and organizational goals into
systems development initiatives. Proper IS planning ensures that specific systems development objectives
support organizational goals.
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Developing a Competitive Advantage

In todays business environment, many companies seek systems development projects that will provide
them with a competitive advantage. Thinking competitively usually requires both creative and critical
analysis. Creative analysis involves the investigation of new approaches to existing problems. By looking
at problems in new or different ways and by introducing innovative methods to solve them, many firms
have gained a competitive advantage.
Critical analysis requires unbiased and careful questioning of whether system elements are related in the
most effective or efficient ways. It involves considering the establishment of new or different relationships
among system elements and perhaps introducing new elements into the system. Critical analysis in systems
development involves the following actions:
Critical
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Going beyond automating manual systems.

Questioning statements and assumptions.
Identifying and resolving objectives and orientations that conflict.

Establishing Objectives for Systems Development

The overall objective of systems development is to achieve business goals by delivering the right
information to the right person, in the right format, at the right time. The impact a particular system has on
an organizations ability to meet its goals determines its true value. Regardless of the particular systems
development effort however, the development process should define a system with specific performance
and cost objectives.

Trends in Systems Development and Enterprise Resource Planning

An important trend in systems development and the use of ERP systems is that companies wish to stay with
their primary ERP vendor instead of looking elsewhere for answers to their data warehousing and
production planning needs, or developing in-house solutions. Thus, they look to their original ERP vendor
to provide these solutions. A second trend is that many software vendors are building software that
integrates with the ERP vendors package. A third interesting trend is the increase in the number of
companies that, once they have successfully implemented their own companys ERP project, are branching
out to provide consulting to other companies.

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Quick Quiz
1.

Another name for the individuals who ultimately benefit from systems development projects
is _____.
ANSWER: stakeholders

2.

Who is responsible for modifying or developing programs to satisfy user requirements?

ANSWER: The programmer

3.

Which systems play a pivotal role in an organizations continued operations and goal
attainment?
ANSWER: Mission-critical systems

4.

The investigation of new approaches to existing problems is referred to as _____.

ANSWER: creative analysis

5.

What two sets of objectives are important to a systems development project?

ANSWER: Cost and performance

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Systems Development Lifecycles

The systems development process is also called a systems development life cycle (SDLC) because the
activities associated with it are ongoing. The life of the system continues as it is maintained and reviewed
and if it needs significant improvement beyond the scope of maintenance, if it needs to be replaced because
of a new generation of technology, or if the IS needs of the organization change significantly, a new project
will be initiated and the cycle will start over. Four common systems development life cycles exist:
traditional, prototyping, rapid application development (RAD), and end-user development.
The traditional systems development life cycle is as follows:
Traditional
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Systems Investigation
Systems Analysis
Systems Implementation
Systems Maintenance
System Review

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The traditional SDLC allows for a large degree of management control. At the end of each phase, a formal
review is performed and a decision is made whether to continue with the project, terminate it, or perhaps
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repeat some of the tasks of the current phase. Use of this life cycle also creates a lot of documentation,
which if kept current, can be useful when modifying the system. The traditional SDLC also ensures that
every system requirement can be related to a business need. In addition, resulting products can be reviewed
to verify that they satisfy the system requirements and conform to organizational standards. A major
problem with this life cycle however, is that the user does not have access to the solution until the system is
nearly complete. It is also inflexible as changes in user requirements cannot be accommodated during
development.
Prototyping takes an iterative approach to the systems development process. During each iteration,
requirements and alternative solutions to the problem are identified and analyzed, new solutions are
designed, and a portion of the system is implemented. Users are then encouraged to try the prototype and
provide feedback. One advantage of this approach is that an operational prototype can be constructed in
weeks. It also allows for early error and omission detection. Disadvantages include incomplete or absent
documentation, the fact that backup and recovery, performance, and security issues may be overlooked, and
that lack of reviews may create never-ending projects.
Rapid application development (RAD) employs tools, techniques, and methodologies designed to speed
application development. It is advantageous because it combines the structure of the traditional SDLC with
the speed of prototyping. It also produces good documentation and stimulates teamwork between users and
stakeholders. RADs disadvantages include: high developer burnout rates and the requirement of a larger
percentage of the stakeholders and users time.
The end-user SDLC has both positive and negative aspects. On the positive side, systems are sometimes
developed more quickly because end-users believe they have solid knowledge of their own needs. On the
negative side, many systems fail due to lack of expertise and may not integrate well with other applications.

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Quick Quiz
1.

Which SDLC results in the highest degree of user participation?

ANSWER: End-user SDLC

2.

What are the primary advantages of the traditional SDLC?

ANSWER: Managerial control and structure

3.

What is a key aspect of prototyping?

ANSWER: Iteration

4.

What is the term used to describe a process for data collection and requirements analysis?
ANSWER: Join application development (JAD)

Factors Affecting Systems Development Success

Successful systems development means delivering a system that meets user and organizational needs on
time and within budget. Systems development leaders have identified the following factors that can
contribute to successful systems development efforts at a reasonable cost:

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Successful
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Degree of change
Quality of standards
The capability maturity model (CMM),
Use of project management tools
Use of computer-aided software engineering (CASE) tools

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A major factor that affects the quality of systems development is the degree of change associated with the
project. The scope can vary from implementing minor enhancements to an existing system to major
reengineering. The project team needs to recognize where they are on this spectrum of change. Another key
success factor is the quality of project planning as the bigger the project, the more likely it is that poor
planning will lead to significant problems.
Project management tools are necessary when creating a successful system. Through the use of project
schedules that include milestones, critical paths, and deadlines, systems development is tracked and
monitored. One way to create a schedule is through program evaluation and review techniques. These
techniques use Pert and Gantt charts to plan, monitor, and coordinate projects.
Computer-aided software engineering (CASE) tools automate tasks needed in systems development. The
following tools are designed to support the entire lifecycle: upper, lower, and integrated CASE tools.
Upper CASE focuses on activities that take place during the early stages of systems development while
lower CASE targets activities that take place during the later of the project. Integrated packages provide the
link between upper and lower CASE.
Object-oriented systems development uses the logic of the SDLC but has the power of an object-oriented
model or program. The following steps are normally adhered to:

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OO Systems
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Identify the potential problems and opportunities in the organization that are appropriate for
the OO approach.
Define what kind of system the users require.
Design the system.
Program or modify the program modules.
Allow the users to test and evaluate and then fix it until the system gains their approval.
Set up periodic reviews and modify the system as needed.

Quick Quiz
1.

What is the term used to describe a detailed description of the tasks that need to be done?
ANSWER: Project schedule

2.

The critical date for the completion of a major part of the project is referred to as a(n) _____.
ANSWER: milestone.

3.

What is a formalized approach for developing a project schedule?

ANSWER: Program evaluation and review technique (PERT)

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Systems Investigation
Systems investigation is the first phase in the traditional SDLC of a new or modified business information
system. The purpose is to identify potential problems and opportunities and consider them in light of the
goals of the company. In general, systems investigation attempts to uncover answers to the following
questions:
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1. What primary problems might a new or enhanced system solve?

2. What opportunities might a new or enhanced system provide?
3. What new hardware, software, databases or procedures will improve an existing system?
4. What are the potential costs (variable and fixed)?
5. What are the associated risks?

Once a decision has been made to initiate systems investigation, the first step is to determine what members
of the development team should participate in the investigation phase of the project. Ideally, functional
managers are heavily involved. Other members could include users or stakeholders outside of management.
The members of the development team, who participate in the investigation, are then responsible for
gathering and analyzing data, preparing a report justifying systems development, and presenting the results
to top-level managers.
A key step of the systems investigation phase is feasibility analysis, which assesses technical, economic,
legal, operational, and schedule feasibility. Technical feasibility assesses whether the hardware, software,
and other systems components can be acquired or developed to solve the problem. Operational feasibility
measures if a project has the ability to be put into action. Schedule feasibility determines if a project can be
accomplished within a reasonable time period and economic feasibility decides if the project is a financially
sound investment. Lastly, legal feasibility determines if there are laws that prevent or limit the project.
The primary outcome of systems investigation is a systems investigation report, which summarizes the
results of the investigation and the process of feasibility analysis. It also recommends a course of action:
continue on into systems analysis, modify the project in some manner, or drop it. The systems
investigation report is then reviewed by senior management, often organized as an advisory committee, or
steering committee, consisting of senior management and users from the IS department and other functional
areas.

Quick Quiz
1.

What type of feasibility is concerned with whether the project can be completed on time?
ANSWER: Schedule

2.

What type of feasibility is concerned with whether the project makes financial sense?
ANSWER: Economic
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Chapter 12

What type of feasibility is concerned with whether the project violates particular laws or
regulations?
ANSWER: Legal

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Systems Analysis
Systems analysis starts by clarifying the overall goals of the organization and determining how the existing
or proposed information system helps meet them. Analysis of a small companys information system can be
fairly straightforward. On the other hand, evaluating an existing information system for a large company
can be a long, tedious process. As a result, large organizations evaluating a major information system
normally follow a formalized analysis procedure, involving the following steps:
Analysis
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1. Assembling the participants for systems analysis

2. Collecting appropriate data and requirements
3. Analyzing the data and requirements
4. Preparing a report on the existing system, new system requirements, and project priorities

The first step in formal analysis is to assemble a team to study the existing system. This group includes
members of the original development team, from users and stakeholders to IS personnel and management.
Once the participants have gathered, a list of specific objectives and activities is developed.
The purpose of data collection is to seek additional information about the problems or needs identified in
the systems investigation report. During this process, the strengths and weaknesses of the existing system
are emphasized and the following techniques are used: interviewing, observation, questionnaire
distribution, and sampling. The data collected in its raw form is usually not adequate to determine the
effectiveness and efficiency of the existing system or the requirements for the new one.
The next step is to manipulate the data collected so that it becomes useful to the members of the
development team. This manipulation is called data analysis. Data and activity modeling using data-flow
and entity-relationship diagrams, are useful during data analysis to show the relationships among various
objects, associations, and activities. Other common tools and techniques include application flowcharts,
grid charts, and CASE tools.
The overall purpose of requirements analysis is to determine user, stakeholder, and organizational needs.
The techniques used include: asking directly, using critical success factors, specifying screen and report
layout, and using requirement analysis tools. Systems analysis concludes with a formal
systems analysis report, which should cover the following elements:

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Systems
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1. The strengths and weaknesses of the existing system from a stakeholders perspective
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2. The user/stakeholder requirements for the new system
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3. The organizational requirements for the new system
4. A description of what the new information system should do to solve the problem
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Quick Quiz
1.

A(n) _____ models objects, associations, and activities by describing how data can flow
between and around various objects.
ANSWER: data-flow diagram (DFD)

2.

_____ flowcharts show the relationships among applications or systems.

ANSWER: Application

3.

_____ is a technique that allows a designer to quickly and efficiently design the features,
layout, and format of a display screen.
ANSWER: Screen layout

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Teaching Tips

Invite a systems developer to provide a class presentation. Most university computing centers have
systems developers on staff.
Coordinate with a systems analysis course instructor so that when semester projects are presented, your
class can attend.
Demonstrate a CASE tool in class. Many demos are available on the Internet.
Demonstrate project management software in class.
Invite a CASE tool sales representative to do a classroom presentation of his/her software.
Use a class session to gather information about a system that is familiar to students (e.g. course
registration). Use some questionnaires, some interviews, and even direct observation of users if
possible.
Have a brainstorming session to determine information systems projects that would help improve the
university. Fill out some systems investigation forms to finish up the exercise.
Perform an in-class exercise using various life cycles. If possible, compare the results derived using
various approaches.

Further Readings or Resources

Readings
Highsmith III, J.A. 1999. Adaptive Software Development: A Collaborative Approach to Managing
Complex Systems. Dorset House.
Weinberg, G.M. 1998. The Psychology of Computer Programming : Silver Anniversary Edition. Dorset
House.
Zahran, S. 1998. Software Process Improvement : Practical Guidelines for Business Success (Sei Series in
Software Engineering). Addison-Wesley.

Discussion Questions
Some interesting topics of discussion in this chapter include the following:

Why are SDLCs important?

Discuss feasibility issues relating to systems development projects currently being considered by
the university.

Projects to Assign
1.
2.
3.

Assign Review Questions: 1, 3, 10, 13, and 16.

Assign Problem Solving Exercise 3.
Assign Team Activity 1 or Web Exercise 2 or Case 2.

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Key Terms

Computer-aided software engineering (CASE) - tools that automate many of the tasks required
in a systems development effort and enforce adherence to the SDLC.
Critical path - activities that, if delayed, would delay the entire project.
Data analysis - manipulation of the collected data so that it is usable for the development team
members who are participating in systems analysis.
Mission-critical systems - systems that play a pivotal role in an organizations continued
operations and goal attainment.
Prototyping - an iterative approach to the systems development process.
Stakeholders - individuals who, either themselves or through the area of the organization they
represent, ultimately benefit from the systems development project.

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