HAPTER 18
Introduction to Systems
Development and Systems
Analysis
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INTRODUCTION
Questions to be addressed in this chapter
include:
What are the phases in the systems development
life cycle?
Who are the individuals involved in systems
development?
What techniques are used to plan the development
of a system?
How do you determine whether a particular system
is feasible?
How do people respond to systems changes, and
how can dysfunctional behavior be minimized?
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INTRODUCTION
As the environment, technology, and
competition change, an information
system must continually undergo
changes.
These changes range from minor
adjustments to major overhauls.
Occasionally, the old system is scrapped
and replaced.
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INTRODUCTION
Companies change their systems for a variety of
reasons:
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INTRODUCTION
Developing quality, error-free software is difficult,
expensive, and time-consuming.
Projects tend to deliver less than expected and consume
more time and money.
A KPMG survey found that 35% of all major information
systems projects were classified as runaways
hopelessly incomplete and over budget.
Major cause of runaways: Skimping on systems development
processes.
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INTRODUCTION
This chapter discusses five topics:
Systems development life cycle
Planning activities during the systems
development life cycle
Feasibility analysis
Behavioral aspects of change
Systems analysis
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Initial investigation
Systems survey
Feasibility study
Determination of information needs and system
requirements
Involves finding out and documenting what
users and management need.
This is the most important aspect of
systems analysis.
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Initial investigation
Systems survey Involves preparation of a report
Feasibility study summarizing the systems analysis work.
information
This report isneeds
submitted
the information
Determination of
and to
system
systems steering committee.
requirements
Delivery of systems requirements
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THE PLAYERS
Many people are involved in developing and
successfully implementing an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
Top managements role in systems development
is to:
Provide support and encouragement a clear signal
that user involvement is important.
Help align the systems with corporate strategies.
Establish system goals and objectives.
Review IS department performance and leadership.
Establish policies for project selection and
organizational structure.
Participate in important systems decisions.
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THE PLAYERS
User management needs to:
Determine information requirements for departmental
projects.
Assist systems analysts with project cost-benefit
estimates.
Assign key staff members to development projects.
Allocate funds.
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
Accountants also play an important role in
systems development:
As AIS users, they must determine their information needs
and systems requirements and communicate them to
system developers.
As members of project development teams or steering
committees, they help management in the development
process.
They are also active in:
Designing system controls and monitoring and testing these
controls.
Ensuring the system is easy to audit.
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
The information systems steering committee is
an executive-level committee whose duty is to
plan and oversee the IS function.
Consists of high level management, such as:
Controller
IS Manager
User department managers
Sets policies to govern the AIS and assure topmanagement participation, guidance, and control.
Attempts to encourage goal congruence and reduce
goal conflict.
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
The project development team includes systems
specialists, managers, accountants, auditors, and users
whose responsibility is to guide development.
Their job:
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
Systems analysts study existing systems,
design new ones, and prepare
specifications that are used by
programmers.
They interact with technical personnel and
users to bridge the gap.
They are responsible for ensuring the system
meets user needs.
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
Computer programmers write the
computer programs, using the specs
developed by the systems analysts.
They also modify and maintaining existing
programs.
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THE PLAYERS
Many people are involved in developing and
successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players
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THE PLAYERS
External players include:
Customers
Vendors
Auditors
Governmental entities
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Human resources
Hardware
Software
Financial resources
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It also provides:
Status of projects in process.
Prioritization of planned projects and criteria for
establishing priorities.
Timetables for development.
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Planning horizon:
About a 3-year horizon.
With updates at least 23 times/yeareven more
frequently in some companies.
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Planning techniques
Two techniques for scheduling and
monitoring systems development
activities are:
Program Evaluation and Review Technique
(PERT)
Gantt Charts
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Planning techniques
Two techniques for scheduling and
monitor systems development activities
are:
Program Evaluation and Review
Technique (PERT)
Gantt Charts
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Build
Base
(2)
(Bill)
Nail
Together
(2)
(Bill)
Design
Birdhouse
(2)
(Bill)
Buy
Paint
(1)
(Sara)
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Paint &
Decorate
(3)
(Sara)
Sell
(2)
(Sara)
Build
Roof
(1)
(Bill)
Accounting Information Systems, 11/e
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Planning techniques
Two techniques for scheduling and
monitor systems development activities
are:
Program Evaluation and Review Technique
(PERT)
Gantt Charts
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Period
5
6
10
Design birdhouse
Buy wood & nails
Buy paint
Build roof
Build base
Nail together
Paint & decorate
Sell
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FEASIBILITY ANALYSIS
During the systems analysis phase, a feasibility
study (aka, a business case) is prepared and is
updated during the remaining steps in the SDLC.
The extent of the feasibility study depends on
the size and nature of the system.
Feasibility team should include:
Management
Accountants skilled in controls and auditing
Systems personnel
Users
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FEASIBILITY ANALYSIS
The feasibility study and its updates are
used by the steering committee as the
project proceeds to decide whether to:
Terminate the project
Proceed
Proceed if specific problems are resolved
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FEASIBILITY ANALYSIS
Five aspects need to be considered during a
feasibility study:
Technical feasibility
Is the technology there to do it?
Operational feasibility
Do we have people who can do it, and will it get used?
Legal feasibility
Does it comply with legal, regulatory, and contractual
obligations?
Scheduling feasibility
Can it be done in time?
Economic feasibility
Will the benefits exceed the costs?
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FEASIBILITY ANALYSIS
Calculating economic feasibility costs and
benefits
Economic feasibility is probably the most important
and frequently analyzed aspect.
This examination requires a careful investigation of
costs and benefits.
It typically uses a capital budgeting model that
considers:
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FEASIBILITY ANALYSIS
When possible, benefits and costs should
be estimated and included even if they are
not easily quantifiable.
If some costs and benefits cannot be
accurately estimated, they should at least
be listed, along with the likelihood of their
occurrence and their expected impact.
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FEASIBILITY ANALYSIS
Benefits might include:
Cost savings.
Improved customer service, productivity,
decision making, or data processing.
Better management control.
Increased job satisfaction and employee
morale.
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FEASIBILITY ANALYSIS
Costs might include:
Equipment costs
Initial outlay plus ongoing operating costs.
Software costs
Costs of acquiring, maintaining, supporting, and operating.
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FEASIBILITY ANALYSIS
Capital budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There are three commonly used techniques:
Payback period
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FEASIBILITY ANALYSIS
Capital Budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There are three commonly used techniques:
Payback period
Net present value (NPV)
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FEASIBILITY ANALYSIS
Capital Budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There
are three
commonly
used
Calculates
the effective
interest
rate techniques:
that would result in
a net present
Payback
periodvalue of zero for the project.
Net
Select
projects
with
higher IRRs.
present
value
(NPV)
Internal rate of return (IRR)
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BEHAVIORAL ASPECTS OF
CHANGE
Reactions to change can be improved by
observing the following guidelines:
Meet users needs with respect to the form,
content, and volume of system output.
Keep communication lines open. Managers
and users should be fully informed about:
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BEHAVIORAL ASPECTS OF
CHANGE
Maintain a safe and open atmosphere.
If employees become hostile, its an uphill battle
you probably wont win.
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BEHAVIORAL ASPECTS OF
CHANGE
Solicit user participation.
It is ego enhancing, challenging, and intrinsically
satisfying.
Users who participate will be more committed to
using the system.
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BEHAVIORAL ASPECTS OF
CHANGE
Humanize the system.
Employees shouldnt feel the computer is
controlling them or has usurped their positions.
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BEHAVIORAL ASPECTS OF
CHANGE
Avoid emotionalism.
Emotional issues should be allowed to cool, handled in
a non-confrontational manner, or sidestepped.
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BEHAVIORAL ASPECTS OF
CHANGE
Ignoring the preceding steps can leave to
behavior issues that are difficult or
impossible to reverse.
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SYSTEMS ANALYSIS
When a new or improved system is
needed, a written request for systems
development is prepared. That request
describes:
The current systems problems.
The reasons for the proposed changes.
The goals and objectives of a proposed
system.
The anticipated benefits and costs.
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report
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SYSTEMS ANALYSIS
The initial investigation is conducted to:
Gain a clear picture of the problem or
need.
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SYSTEMS ANALYSIS
The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Determine the viability of the project and
expected costs and payoffs.
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SYSTEMS ANALYSIS
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SYSTEMS ANALYSIS
The initial investigation is conducted to:
Gain a clear picture of the problem or need.
Determine the viability of the project and
Either:
expected costs and
payoffs.
Initiate the project as proposed.
Evaluate the scope and
nature
of the new
Modify
it.
Abandon it.
AIS.
Recommend whether to proceed.
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SYSTEMS ANALYSIS
If the project is approved:
A proposal to conduct systems analysis is
prepared.
The project is assigned a priority and added
to the master plan.
The development team begins a survey of the
existing AIS.
The proposal will be modified as more
information becomes available.
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report
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SYSTEMS ANALYSIS
A systems survey involves an extensive study of the
current AIS which could take weeks or months.
Objectives are:
Gain a thorough understanding of:
Company operations, policies, and procedures.
Data and information flow.
AIS strengths and weaknesses.
Available hardware, software, and personnel.
Make preliminary assessments of current and future
processing needs, and determine extent and nature of
needed changes.
Develop working relationships with users and build support.
Collect data that identify user needs, conduct a feasibility
analysis, and make recommendations to management.
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SYSTEMS ANALYSIS
Data can be gathered from:
Employees.
Documentation such as organization charts
and procedure manuals.
External sources such as:
Consultants
Customers
Suppliers
Industry associations
Government agencies
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SYSTEMS ANALYSIS
Four common methods of gathering data
are:
Interviews
Questionnaires
Observation
System documentation
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SYSTEMS ANALYSIS
Four common methods of gathering data
are:
Interviews
Questionnaires
Observation
System documentation
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SYSTEMS ANALYSIS
Advantages of interviews:
Can answer why questions.
Can allow for follow-up and clarification.
Provides opportunity to build positive relationships
with interviewees and support for new system.
Disadvantages of interviews:
Time-consuming.
Expensive.
Personal biases or self-interest may produce
inaccurate information.
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SYSTEMS ANALYSIS
When you do interviews:
Make an appointment.
Explain the purpose ahead of time.
Indicate the amount of time needed.
Be on time.
Be familiar with the interviewees responsibilities.
Make notes on points to cover.
Put the interviewee at ease and let him/her do the
talking.
Pay attention to nonverbal cues.
Take notes and augment them with impressions after
the interview.
Request permission to tape critical interviews.
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SYSTEMS ANALYSIS
Four common methods of gathering data
are:
Interviews
Questionnaires
Observation
System documentation
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SYSTEMS ANALYSIS
Questionnaires can be used when:
The amount of information to be gathered is
small and well defined.
The information is to be obtained from many
people or from those who are remotely
located.
The information is intended to verify data from
other sources.
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SYSTEMS ANALYSIS
Advantages of questionnaires:
Can be anonymous.
Not time-consuming to complete.
Inexpensive.
Allows the subject time to think about responses.
Disadvantages of questionnaires:
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SYSTEMS ANALYSIS
Four common methods of gathering data
are:
Interviews
Questionnaires
Observation
System documentation
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SYSTEMS ANALYSIS
Advantages of observations:
Can verify how the system actually works
rather than how it should work.
Results in greater understanding of systems.
Disadvantages of observations:
Time-consuming.
Expensive.
Difficult to interpret.
People may alter behavior while being
observed.
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SYSTEMS ANALYSIS
When you do observations:
Identify what is to be observed and estimate
the time required.
Obtain permission.
Explain what will be done and why.
Dont make value judgments.
Take notes and document impressions ASAP.
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SYSTEMS ANALYSIS
Four common methods of gathering data
are:
Interviews
Questionnaires
Observation
System documentation
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SYSTEMS ANALYSIS
Advantages of systems documentation:
Describes how the system should work.
Written form facilitates review and analysis.
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SYSTEMS ANALYSIS
Once the data is gathered, document
findings and model the existing system.
Documentation consists of:
Questionnaire copies
Interview notes
Memos
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SYSTEMS ANALYSIS
Another form of documentation is a
system model:
Physical models illustrate how a system
functions by describing:
Flow of documents.
Computer processes performed and the people
doing them.
Equipment used.
Any other physical elements.
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SYSTEMS ANALYSIS
When documentation is complete, analyze
the existing system:
Evaluate the AISs strengths and weaknesses
to develop ideas for designing and structuring
the new AIS.
Try to retain strengths.
Correct weaknesses.
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SYSTEMS ANALYSIS
At the end of this phase, prepare systems
survey report:
Outlines and documents the data gathered.
Provides recommendations that result from
the systems survey.
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report
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SYSTEMS ANALYSIS
After the systems survey, a more thorough
feasibility analysis is conducted.
This analysis is updated regularly as the
project proceeds and costs and benefits
become clearer.
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems
requirements
Systems analysis report
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
Describes what is to be done
and by whom.
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
-
Processes
Data elements
Data structure
Outputs Layouts of system outputs and a
description of their purpose,
frequency, and distribution.
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
-
Processes
Data elements
Data structure
Outputs
Inputs A copy of system inputs and a
description of their contents,
source, and who is responsible
for them.
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
-
Processes
Data elements
Data structure
Outputs
Inputs
Constraints
A description of deadlines,
schedules, security requirements,
staffing limitations, and legal
requirements.
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
-
Processes
Data elements
Data structure
Outputs
Inputs
Constraints
Controls Controls that are needed to
ensure accuracy and reliability.
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SYSTEMS ANALYSIS
Once a project clears the feasibility hurdle, the company
identifies the information needs of AIS users and
documents systems processes, including:
-
Processes
Data elements
Data structure
Outputs
Inputs
Documentation constraints
Controls
Changes in staffing, job
Reorganizations
functions, etc., that would be
necessary.
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SYSTEMS ANALYSIS
Issues:
There is much to be specified, even for a
simple AIS.
It may be difficult to get employees to
accurately articulate their needs.
Errors are best caught early, as the cost to
correct them increases significantly the farther
you are into the project.
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SYSTEMS ANALYSIS
Systems objectives and constraints
Many entities take a systems approach to
determining information needs and systems
requirements.
Problems and alternatives are viewed from
the standpoint of the entire organizationas
opposed to a single department.
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Efficient and courteous.
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
- Capacity
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
- Capacity
- Ease of use
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
- Capacity
- Ease of use
- Flexibility
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Easily understood.
Facilitates problem solving and
future development.
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Auditability
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SYSTEMS ANALYSIS
Systems objectives must be identified, so
analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
-
Usefulness
Economy
Reliability
Availability
Timeliness
Customer service
Capacity
Ease of use
Flexibility
Tractability
Auditability
Security Available only to
authorized users.
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SYSTEMS ANALYSIS
There are often trade-offs between objectives.
Organizational constraints make it impossible to
develop all parts of an AIS simultaneously.
You divide it into modules that are analyzed,
developed, and installed independently.
When changes are made, only the affected modules
need to be changed.
The modules should be properly integrated into a
workable system.
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SYSTEMS ANALYSIS
Success often depends on the project
teams ability to cope with organizational
constraints, including:
Requirements of governmental agencies.
Managerial policies and guidelines.
Lack of sufficient, qualified staff.
Capabilities and attitudes of users.
Available technology.
Limited financial resources.
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SYSTEMS ANALYSIS
Strategies for determining
requirements:
One or more of the following four strategies
are used to determine AIS requirements:
Ask users what they need
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SYSTEMS ANALYSIS
Strategies for determining
requirements:
One or more of the following four strategies
are used to determine AIS requirements:
Ask users what they need
Analyze existing systems
Internal and external systems should be analyzed to
avoid reinventing the wheel.
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SYSTEMS ANALYSIS
Strategies for Determining
Requirements:
Certain modules:
May not be used as intended
One or more
of the following four strategies
May be augmented by manual tasks
are used
to determine
AIS requirements:
May
be avoided altogether
users
Ask
Helps determine
what theywhether
need the system really needs to be
simply modified rather than replaced.
Analyze
existing systems
Examine existing system use
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SYSTEMS ANALYSIS
Strategies for Determining
Requirements:
One or more of the following four strategies
Entails
roughing out AIS
a system
for users to critique.
are used
to determine
requirements:
Ask users
what they need
identify what they like and dont like.
Analyze
Goesexisting
throughsystems
iterations of improving and reviewing
with users
until
users agree
Examine
existing
system
use on their needs.
Create a prototype
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SYSTEMS ANALYSIS
Documentation and approval of user
requirements:
Detailed requirements for the new AIS should
be created and documented.
How to produce the required features is
determined during the design phases of the SDLC.
The requirements list should be supported by
sample input and output forms and charts that
make it easier to conceptualize.
A nontechnical summary is often prepared for
management.
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SYSTEMS ANALYSIS
Once user requirements have been
determined and documented, the project
team:
Meets with users.
Explains the requirements.
Obtains their agreement and approval.
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SYSTEMS ANALYSIS
The project development team will
conduct the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report
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SYSTEMS ANALYSIS
The last step in systems analysis is the systems
analysis report.
Summarizes and documents the activities.
Serves as a repository of data from which designers
can draw.
Outlines:
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SYSTEMS ANALYSIS
A go-no-go decision is usually made three
times during systems analysis:
During the initial investigation to determine
whether to go ahead with a systems survey.
At the end of the feasibility study to determine
whether to proceed with the information
requirements step.
At the completion of the analysis phase to
decide whether to proceed to the next phase
(conceptual design).
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SYSTEMS ANALYSIS
When systems analysis is completed, the
project can move on to:
Conceptual design phase
Physical design phase
Implementation and conversion
Operation and maintenance
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SUMMARY
Youve learned about the five phases in the
systems development life cycle, with a particular
emphasis on systems analysis.
Youve learned who the players are in the
systems development process.
Youve learned about various techniques that
are used to plan the development of a system.
Youve reviewed some techniques for
determining system feasibility.
Youve learned about behavioral responses to
systems changes and how dysfunctional
behavior can be minimized.
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