UNIT – 4

SYSTEM ANALYSIS AND DESIGN

System development life cycle means combination of various activities. In other words we can say that
various activities put together are referred as system development life cycle. In the System Analy- sis and
Design terminology, the system development life cycle also means software development life cycle.

Following are the different phases of system development life cycle:

• Preliminary study
• System analysis
• System design
• Programming / Coding
• Testing
• Implementation
• Maintenance

The different phases of system development life cycle is shown

(a) PRELIMINARY SYSTEM STUDY

Preliminary system study is the first stage of system development life cycle. This is a brief investigation
of the system under consider- ation and gives a clear picture of what actually the physical system is? In
practice, the initial system study involves the preparation of a ‘System Proposal’ which lists the Problem
Definition, Objectives of the Study, Terms of reference for Study, Constraints, Expected ben- efits of the
new system, etc. in the light of the user requirements. The system proposal is prepared by the System
 Analyst (who stud- ies the system) and places it before the user management. The man- agement may
accept the proposal and the cycle proceeds to the next stage. The management may also reject the
proposal or re- quest some modifications in the proposal. In summary, we would say that system study
phase passes through the following steps:

 problem identification and project initiation

 background analysis

 inference or findings (system proposal)

Feasibility Study
In case the system proposal is acceptable to the management, the next phase is to examine the feasibility
of the system. The feasibility study is basically the test of the proposed system in the light of its
workability, meeting user’s requirements, effective use of resources and of course, the cost effectiveness.
These are categorized as tech- nical, operational, economic and schedule feasibility. The main goal of
feasibility study is not to solve the problem but to achieve the scope. In the process of feasibility study, the
cost and benefits are estimated with greater accuracy to find the Return on Investment (ROI). This also
defines the resources needed to complete the de- tailed investigation. The result is a feasibility report
submitted to the management. This may be accepted or accepted with modifica- tions or rejected. The
system cycle proceeds only if the manage- ment accepts it.
Detailed System Study

The detailed investigation of the system is carried out in accordance with the objectives of the proposed
system. This involves detailed study of various operations performed by a system and their rela- tionships
within and outside the system. During this process, data are collected on the available files, decision points
and transactions handled by the present system. Interviews, on-site observation and questionnaire are the
tools used for detailed system study. Using the following steps it becomes easy to draw the exact boundary
of the new system under consideration:

 Keeping in view the problems and new requirements

 Workout the pros and cons including new areas of the system

All the data and the findings must be documented in the form of detailed data flow diagrams (DFDs), data
dictionary, logical data struc- tures and miniature specification. The main points to be discussed in this stage
are:

Specification of what the new system is to accomplish based on the user requirements.

Functional hierarchy showing the functions to be performed by the new system and their relationship with
each other.

Functional network, which are similar to function hierarchy but they highlight the functions which are
common to more than one procedure.
List of attributes of the entities – these are the data items which need to be held about each entity (record)
(b) SYSTEM ANALYSIS

Systems analysis is a process of collecting factual data, understand the processes involved,
identifying problems and recommending fea- sible suggestions for improving the system
functioning. This involves studying the business processes, gathering operational data, un-
derstand the information flow, finding out bottlenecks and evolving solutions for overcoming the
weaknesses of the system so as to achieve the organizational goals. System Analysis also includes
sub- dividing of complex process involving the entire system, identifica- tion of data store and
manual processes.

The major objectives of systems analysis are to find answers for each business process: What is
being done, How is it being done, Who is doing it, When is he doing it, Why is it being done and
How can it be improved? It is more of a thinking process and involves the creative skills of the
System Analyst. It attempts to give birth to a new effi- cient system that satisfies the current needs
of the user and has scope for future growth within the organizational constraints. The result of this
process is a logical system design. Systems analysis is an iterative process that continues until a
preferred and acceptable solution emerges.
(c) SYSTEM DESIGN

Based on the user requirements and the detailed analysis of the existing system, the new system
must be designed. This is the phase of system designing. It is the most crucial phase in the
develop- ments of a system. The logical system design arrived at as a result of systems analysis is
converted into physical system design. Normally, the design proceeds in two stages:

• Preliminary or General Design

• Structured or Detailed Design

Preliminary or General Design: In the preliminary or general de- sign, the features of the new
system are specified. The costs of imple- menting these features and the benefits to be derived are
estimated. If the project is still considered to be feasible, we move to the de- tailed design stage.
Structured or Detailed Design: In the detailed design stage, com- puter oriented work begins in earnest.
At this stage, the design of the system becomes more structured. Structure design is a blue print of a
computer system solution to a given problem having the same components and inter-relationships among
the same compo- nents as the original problem. Input, output, databases, forms, codi- fication schemes and
processing specifications are drawn up in de- tail. In the design stage, the programming language and the
hard- ware and software platform in which the new system will run are also decided.

There are several tools and techniques used for describing the sys- tem design of the system. These tools
and techniques are:

 Flowchart
 Data flow diagram (DFD)
  Data dictionary
 Structured English
 Decision table
 Decision tree

Each of the above tools for designing will be discussed in detailed in the next lesson.

The system design involves:

 Defining precisely the required system output

 Determining the data requirement for producing the output
 Determining the medium and format of files and databases
 Devising processing methods and use of software to produce output
 Determine the methods of data capture and data input
 Designing Input forms
 Designing Codification Schemes
 Detailed manual procedures
 Documenting the Design
(d) PROGRAMMING / CODING
The system design needs to be implemented to make it a workable system. This demands the coding of
design into computer under- standable language, i.e., programming language. This is also called the
programming phase in which the programmer converts the program specifications into computer
instructions, which we refer to as programs. It is an important stage where the defined procedures are
transformed into control specifications by the help of a computer language. The programs coordinate the
data movements and con- trol the entire process in a system.

It is generally felt that the programs must be modular in nature. This helps in fast development,
maintenance and future changes, if required.
(e) TESTING

Before actually implementing the new system into operation, a test run of the system is done for
removing the bugs, if any. It is an important phase of a successful system. After codifying the whole
programs of the system, a test plan should be developed and run on a given set of test data. The output of
the test run should match the expected results. Sometimes, system testing is considered a part of
implementation process.

Using the test data following test run are carried out:

• Program test
• System test
Program test: When the programs have been coded, compiled and brought to working conditions, they
must be individually tested with the prepared test data. Any undesirable happening must be noted and
debugged (error corrections)
System Test: After carrying out the program test for each of the programs of the system and errors
removed, then system test is done. At this stage the test is done on actual data. The complete system is
executed on the actual data. At each stage of the execu- tion, the results or output of the system is
analysed. During the result analysis, it may be found that the outputs are not matching the expected
output of the system. In such case, the errors in the particular programs are identified and are fixed and
further tested for the expected output.

When it is ensured that the system is running error-free, the users are called with their own actual data so
that the system could be shown running as per their requirements.
(f) IMPLEMENTATION
After having the user acceptance of the new system developed, the implementation phase begins.
Implementation is the stage of a project during which theory is turned into practice. The major steps in-
volved in this phase are:

Acquisition and Installation of Hardware and Software

Conversion
User Training
Documentation

The hardware and the relevant software required for running the system must be made fully
operational before implementation. The conversion is also one of the most critical and expensive
activities in the system development life cycle. The data from the old system needs to be converted to
operate in the new format of the new system. The database needs to be setup with security and recovery
procedures fully defined.

During this phase, all the programs of the system are loaded onto the user’s computer. After loading
the system, training of the user starts. Main topics of such type of training are:

 How to execute the package

 How to enter the data
 How to process the data (processing details)
 How to take out the reports

After the users are trained about the computerized system, working has to shift from manual to
computerized working. The process is called ‘Changeover’. The following strategies are followed for
changeover of the system.
Direct Changeover: This is the complete replacement of the old system by the new system. It is a risky
approach and requires comprehensive system testing and training.
Parallel run: In parallel run both the systems, i.e., computerized and manual, are executed
simultaneously for certain defined period. The same data is processed by both the systems. This
strategy is less risky but more expensive because of the following:
Manual results can be compared with the results of the computerized system. The operational
work is doubled.

Failure of the computerized system at the early stage does not affect the working of the
organization, because the manual system continues to work, as it used to do.
Pilot run: In this type of run, the new system is run with the data from one or more of the
previous periods for the whole or part of the system. The results are compared with the old
system results. It is less expensive and risky than parallel run approach. This strategy builds the
confidence and the errors are traced easily without affecting the operations.

The documentation of the system is also one of the most im- portant activity in the system
development life cycle. This ensures the continuity of the system. There are generally two
types of documentation prepared for any system. These are:

 User or Operator Documentation

 System Documentation

The user documentation is a complete description of the system from the users point of view
detailing how to use or operate the system. It also includes the major error messages likely to
be en- countered by the users. The system documentation contains the details of system design,
programs, their coding, system flow, data dictionary, process description, etc. This helps to
understand the system and permit changes to be made in the existing system to satisfy new user
needs.
(D) MAINTENANCE

Maintenance is necessary to eliminate errors in the system during its working life and to tune
the system to any variations in its work- ing environments. It has been seen that there are
always some er- rors found in the systems that must be noted and corrected. It also means the
review of the system from time to time. The review of the system is done for:

 knowing the full capabilities of the system

 knowing the required changes or the additional requirements
 studying the performance.

If a major change to a system is needed, a new project may have to be set up to carry out the
change. The new project will then proceed through all the above life cycle phases.

SYSTEM ANALYST
A systems analyst is an individual who engages systems analysis and design techniques in solving
a business problem. Systems analysts keep up to date with the latest technology to improve
productivity at all times for an organization.

ROLES OR IMPORTANCE OF A SYSTEMS ANALYST

1. Defining user requirements

A systems analyst has the responsibility of observing users and their requirements from a system. This can
be done through conversational interviews with the users and anticipating the new needs of users from
already existing systems. This helps in identifying the requirements from new systems via examination of
current systems and updating configurations for new systems.

2. Prioritizing requirements

Systems analysts use social and analytical skills in prioritizing system specifications. Most enterprise
systems have a lot of requirements but these are frequently constrained due to a lack of resources.

Different users in an organization have different needs from a system, but a systems analyst helps to
prioritize the user’s needs in accordance with the available resources. This helps to ensure that maximum
productivity is obtained from a working system.

3. Problem analysis

Systems analysts tend to observe data and facts about an operating business. They use technological
techniques in identifying problems and removing unnecessary details so as to enable the fulfillment of real
needs from a system.

4. Drawing specifications

Systems analysts also assign the relevant responsibilities of managing system requirements to the right
individuals and team members. They specify programming tasks to programmers and managerial tasks to
managers. They also document these system tasks in detail, using specification documents, and review the
output to ensure that it matches the required specification

5. System design and evaluation

Systems analysts guide the development of every system in an organization, from the specification of
requirements to the designing of the system itself. They ensure that the built systems correspond to the
system specifications by carrying out system evaluation. They also test the performance of the built system
to ensure that it meets the required performance as specified.
6. Keeping up to date with technological advancements

Systems analysts are real agents of change in the use of technology in an organization. They tend to
observe the overall use of technology in an organization and work to keep up with evolving technological
demands by replacing outdated technologies with the latest ones.

They frequently encounter the challenge of having the users accept the changes and, therefore, involve the
users in the development process. They do this by conducting interviews with the systems’ users and
identifying possible user needs and requirements in order to integrate the latest technology for users. From
time to time, systems analysts check to make sure that an organization is working with the latest
technological systems, thus giving rise to high productivity and output.

FUNCTIONAL INFORMATION SYSTEM (REFER THE NOTES)

A functional information system is a type of information system that focuses on supporting specific
business functions or processes within an organization. It is designed to fulfill the particular needs of a
department or functional area by providing relevant and timely information to facilitate decision-making
and improve operational efficiency.
1. MIS is a planned system of collecting, processing, storing and disseminating the data in the form of
information to perform the task of decision making and management of an organisation.
2. An organisation basically operates in an environment, which is surrounded by its suppliers and
customers. The informational needs of the organisation emerge from the business processes stratified into
its various functional areas.
Thus, in this sense, MIS has functional relationship with other functional management information system
namely Manufacturing Information System, Human Resource Information System, Accounting
Information System and Marketing Information System.
3. MIS receives information from these other functional information systems and uses the . received
information to take appropriate decisions.
An Accounting Information System (AIS) is a system that identifies, collects, processes, summarises,
generates and presents information about a business organisation to a wide variety of users. It is an
important component of MIS. It receives and provides information to the various sub-systems of the MIS
Relationship between AIS, Manufacturing Information System and Human Resource

Information System:

The Human Resource Department sends a list of workers to the Manufacturing Department. The
Manufacturing Department on the basis of this information prepares a report on the performance of each
worker and deductions to be made from the wages, if any. There after, this report is send to both Accounts
Department as well as to Human Resource Department. After this, the Human Resource Department sends
report to the Accounts Department to pay the wages
The Accounts Department with the help of these reports calculates the amount payable and statutory dues
and subsequently, makes the final payments to the workers. The report of the final payments is send to the
HR Department and the Manufacturing Department by the Accounts Department.

Manufacturing Department include the following activities:

a. Preparation of Plans and Schedules
b. Issue of Material Requisition Form and Job Cards
c. Issue of Stock and Inventory
d. Issue of Raw Material Procurement Orders
e. Handling Supplier Invoices
f. Payments to Suppliers

The AIS would accordingly include the process of:

a. Purchasing Orders
b. Payments to Suppliers
c. Preparing Inventory Status Reports
d. Preparing Reports of Accounts Payable

Relationship between AIS and Marketing Information System Business processes in the

Marketing and Sales Department involve the following activities:

a. Inquiry Process
b. Creation of Contacts
c. Entry of Orders
d. Dispatching Goods
e. Generation of Bills to Customers

The AIS would accordingly include the following activities:

a. Processing of Sales Orders
b. Authorisation of Credit
c. Keeping Custody of the Goods
d. Inventory Status
e. Shipping Details
IMPORTANCE OF FUNCTIONAL INFORMATION SYSTEM

Improved Decision-Making
Increased Operational Efficiency:
Enhanced Communication and Collaboration
Resource Optimization
Strategic Planning and Forecasting
Integration of Business Functions:
 Compliance and Reporting:
DECISION SUPPORT SYSTEM

Decision Support System refers to a class of systems which support in the process of decision
making and does not always give a decision itself.
Decision Support Systems (DSS) are a specific class of computerized information system that
supports business and organizational decision-making activities. A properly designed DSS is an
interactive software-based system intended to help decision makers compile useful information from
raw data, documents, personal knowledge, and/or business models to identify and solve problems
and make decisions
DSS is an application of Hebert Simon model, as discussed, the model has three phases:
i) Intelligence
ii) Design
iii) Choice

The DSS basically helps in the information system in the intelligence phase where the objective is to
identify the problem and then go to the design phase for solution. The choice of selection criteria
varies from problem to problem.
It is therefore, required to go through these phases again and again till satisfactory solution is found.
In the following three phase cycle, you may use inquiry, analysis, and models and accounting system
to come to rational solution.
These systems are helpful where the decision maker calls for complex manipulation of data and use
of several methods to reach an acceptable solution using different analysis approach. The decision
support system helps in making a decision and also in performance analysis. DSS can be built
around the rule in case of programmable decision situation. The rules are not fixed or predetermined
and requires every time the user to go through the decision making cycle as indicated in Herbert
Simon model.

Attributes:
i) DSS should be adaptable and flexible.
ii) DSS should be interactive and provide ease of use.
iii) Effectiveness balanced with efficiency (benefit must exceed cost).
iv) Complete control by decision-makers.
v) Ease of development by (modification to suit needs and changing environment) end users.
vi) Support modeling and analysis.
vii) Data access.
viii) Standalone, integration and Web-based

DSS Characteristics:
i) Support for decision makers in semi structured and unstructured problems.
ii) Support managers at all levels.
iii) Support individuals and groups.
iv) Support for interdependent or sequential decisions.
v) Support intelligence, design, choice, and implementation.
Support variety of decision processes and styles

Advantages of a Decision Support System

 A decision support system increases the speed and efficiency of decision-making activities. It
is possible, as a DSS can collect and analyze real-time data.
 It promotes training within the organization, as specific skills must be developed to
implement and run a DSS within an organization.
 It automates monotonous managerial processes, which means more of the manager’s time can
be spent on decision-making.
 It improves interpersonal communication within the organization.

Disadvantages of a Decision Support System

 The cost to develop and implement a DSS is a huge capital investment, which makes it less
accessible to smaller organizations.
 A company can develop a dependence on a DSS, as it is integrated into daily decision-making
processes to improve efficiency and speed. However, managers tend to rely on the system too
much, which takes away the subjectivity aspect of decision-making.
 A DSS may lead to information overload because an information system tends to consider all
aspects of a problem. It creates a dilemma for end-users, as they are left with multiple
choices.
 Implementation of a DSS can cause fear and backlash from lower-level employees. Many of
them are not comfortable with new technology and are afraid of losing their jobs to
technology.

GROUP DECISION SUPPORT SYSTEM

GDSS is the abbreviation for Group Decision Support System. It is a system that supports decision-
making and has been designed and structured in such a way so that the members constituting a group can
interact with each other to arrive at a particular decision. It provides support for various group decision-
making activities such as file sharing, integration of the individual opinions with that of the group,
communication, modelling of group actions and any other action which requires interaction of the group
members.

Features

1)Ease of Use
It consists of an interactive interface that makes working with GDSS simple and easy.

2) Better Decision Making :

It provides the conference room setting and various software tools that facilitate users at different locations
to make decisions as a group resulting in better decisions.

3) Emphasis on Semi-structured and Unstructured Decisions :

It provides important information that assists middle and higher level management in making semi-
structured and unstructured decisions.

4) Specific and General Support :

The facilitator controls the different phases of the group decision support system meeting (idea generation,
discussion, voting and vote counting, etc.) what is displayed on the central screen and the type of ranking
and voting that takes place, etc. In addition, the facilitator also provides general support to the group and
helps them to use the system.

5) Supports all Phases of the Decision Making :

It can support all the four phases of decision making, viz intelligence, design, choice, and implementation.

6) Supports Positive Group Behavior :

In a group meeting, as participants can share their ideas more openly without the fear of being criticized,
they display more positive group behavior towards the subject matter of the meeting.

ADVANTAGE

1) More Information in Less Time :

It is possible to gather huge amount of information in a very short time period as GDSS facilitates the
members of the team to work parallel.

2) Greater Participation :
The risks associated with conformity pressure and groupthink is greatly decreased when the members of
the group work in a GDSS because the members are able to express their thoughts freely. This is due to the
anonymity feature extended by GDSS.

3) More Structure :
In a GDSS environment the discussions are much more concentrated and focused. Irrelevant degradations
are greatly reduced.

4) Automated Documentation :
Comments are preserved forever and the system provides the result without any delay. Excellent graphics
makes viewing more attractive.
DISADVANTAGE

1) Cost :
A significant amount of cost may be associated with putting up the infrastructure consisting of the room,
network connectivity and the software.

2) Security :
This risk arises when the facility for setting up GDSS has been rented. There are chances that information
gets leaked to the peers by a low level employee.

3) Technical Failure :
The system must be properly implemented to reduce the risk associated with loss of connectivity and power
loss. It is highly dependent on LAN/WAN infrastructure and bandwidth.

4) Keyboarding Skills :
If the members get frustrated they might participate less.

5) Training :
There is variation in the learning curve of the user in various situation