Fundamentals of System Analysis

and Design

Chapter One: Basic Concepts in Information

System Development

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 Topics
• System Analysis and design, System, Information
systems, System thinking
• Types and Characteristics of Information Systems
• Participants in Information System Development
• Roles and qualities of System Analyst
• System development methodologies,
Processes/Phase

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 Some basic definitions
• Systems Analysis and Design: What is it?
– Systems analysis
Process of studying an existing system to
determine how it works and how it meets user
needs
– Systems design
Process of developing a plan for an improved
system, based upon the results of the systems
analysis

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 Basic Definitions cont’d
• System analysis and design is a step by step complex
method whereby computer based information systems that
can perform basic business function are developed and
maintained.
• It can also be defined as a standard set of activities,
methods, best practices, deliverables, and automated tools
that stakeholders use to develop and maintain information
systems.
• System Analysis and Design is used to analyze, design and
implement improvements in the functioning of businesses
that can be accomplished through use of computerized
information systems. Notice the emphasis on business
improvement.

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 Basic Definitions cont’d
• SAD is based on two skills/knowledge
– Understanding of organizations objectives, structure and process
(domain Knowledge)
– Knowledge of how to exploit information technology for the
advantage of the business at hand
• Out come of such SAD
– An application software (information systems) to improve
users/employee efficiency by improving the business process
• What is System in general, information system, in particular?
– A system is a core concept defined as an interrelated set of
components with an identifiable boundary, working together for
some purpose.

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 Basic Definitions cont’d
• Characteristics of a system (9 characteristics used to describe
systems)
– Components - either an irreducible part( the tiniest) or an aggregate of
parts (subsystem)
– Interrelated Components- the function of one is tied to the function of
the other
– Boundary- the limits of the system with in which the system is
contained, and that separates it from other systems. Components within
the boundary can be changed.
– Purpose- The components work together to achieve some overall
purpose(goal): the system’s reason for existence
– Environment- Everything outside the system’s boundary
– Interfaces- the point at which the system meets its environment
– Input- What the system takes in from the environment to function
– Output- The result of the function of the system
– Constraints- limits to the system in terms of its capacity

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 Basic Definitions cont’d

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 Basic Definitions cont’d
• Benefits of Systems Analysis and Design:
– Better alignment of the system with business needs
• Understanding requirements
• Minimizing mismatch: proper analysis helps to avoid
building unnecessary features, this avoids redesign cost
– Improved system quality and reliability
• Detailed analysis to identify issues and address them at
design level leads to fewer bugs during post implementation
maintenance
• Rigorous testing of individual components and the system as
a whole ensures better reliability
• Analyzing both functional and non-functional requirements
results in a robust system that can handle real world
challenges
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 Basic Definitions cont’d
• Benefits of Systems Analysis and Design:
– Creates an opportunity to optimize resource (cost and
time) by identifying problems early
• By investing time in the analysis phase, potential challenges
are identified early preventing costly revisions later
• Leads to fewer surprises during development, keeping the
project on budget and on time
• Well documented requirements and structured design
prevents scope creep, reduces unnecessary rework and
keeps development time in check
• Clear plans for the system’s architecture and work flow
enables the team to allocate resources (time, people,
technology) more efficiently
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 Basic Definitions cont’d
• Benefits of Systems Analysis and Design:
– Clear communication between stakeholders and
developers
• SAD encourages use of visual tools such as data flow
diagram (DFD) and Entity relationship diagrams (ERD)
to communicate systems requirements and processes;
such tools help to bridge the gap between
non-technical stakeholders and technical developers
• Regular feedback loops ensure alignment of
expectations and any discrepancies are addressed
promptly

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 Basic Definitions cont’d
• Benefits of Systems Analysis and Design:
– Scalability and Flexibility
• Systems are often designed in a modular way, allowing
future expansion and improvement without having to
rework the entire system
• A well designed system is easy to upgrade and to maintain
– Enhance user experience
• SAD involves user centric design
– Improved documentation and training
• SAD produces extensive documentation that setves as a
valuable reference for developers and users
• Well designed systems are easier to explain and train
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 Example
• Viewing a car as a system helps us determine
what the problem is and fix it by breaking the
system down in to its components.
• It is also important to consider the
relationship one subsystem has with another
in doing so.

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 Takeaway Exercise
• Identify something as a system
• Identify and describe its
characteristics ( the 9 characteristics
discussed)

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 Other Important system concepts
– Decomposition- being able to break down a
system into its components. It also helps to build
different parts of the system at different times or
by different individuals.
– Modularity- relatively uniform size components or
chunks.

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 Cont…
– Coupling- the extent to which subsystems are
dependent on each other. Subsystems should be as
much independent from each other as possible.
– Cohesion- the extent to which a module or a
subsystem performs a single function. When we have
highly cohesive modules each module accomplishes
one and only one function. This makes the module
reusable in future programs. Take a biological system
as an example. It has highly cohesive modules. It is
possible to transplant a heart or kidney.
– Loosely Coupled and Highly Cohesive systems are
imperative for re-use and maintainability

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 Cont…
• Systems thinking
– Is a mind set or way of viewing a world as a system
Actually, systems thinking is just one part of the skills a
systems analyst requires
– it helps to see the big picture; it also pays to break
problems down to their components to avoid complexity.
– It minimizes the effect of a change in one module on
another.
– It emphasizes on the relationship and the process that goes
inside rather than constituent parts or just the sum of the
parts( “The whole is more than the sum of its parts”).
Accordingly,
• “A system is bigger than the sum of its components”

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 Information system
• Is an arrangement of people, data, processes,
communication, and information technology
that interact to capture, transmit, store,
retrieve, manipulate and/or display
information needed to support and improve
day-to-day operations in a business as well as
support the problem solving and decision
making needs of management and other
users.
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 Data, Information and Knowledge
• Data
– is a raw fact on any thing
– It is representation real world (Objective, fragmented, and in its simplest form)
eg 91, 22, 33
• Information
– data processed, organized, or structured to provide context and relevance
– Information is data interpreted in a way that it becomes meaningful
• Eg. Yesterday, average temperature in Addis was 15°C.
• Knowledge
– The application of data and information to understand concepts, relationships,
and principles.
– Knowledge is built from experience, context, and insights.
– is more structured information in the human mind(actionable information)
– involves interpretation, understanding, and experience and is used to make
decisions or solve problems.
• Eg: next slide

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 Data, Information and Knowledge
• Example with weather forecasting scenario:
•Data:
•Monthly temperature recordings from multiple weather stations around
the world (e.g., 29°C in July in Location A, 35°C in July in Location B).
•Information:
•The processed data shows that average global temperatures have
been steadily increasing over the past 100 years, and the frequency of
extreme weather events (e.g., heat waves, hurricanes) has risen.
•Knowledge:
•Based on this information, scientists conclude that human activities,
particularly the burning of fossil fuels, are contributing to the rise in
greenhouse gases, which in turn is leading to global warming. This
knowledge is then applied to predict future climate patterns and inform
policies aimed at mitigating climate change.

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 Data and Information

Raw data from a supermarket checkout counter can be processed and

organized to produce meaningful information, such as the total unit
sales of dish detergent or the total sales revenue from dish detergent for
a specific store or sales territory.
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 Types of information systems
• IS can be classified into various types based on
their function:
– TPS
– MIS
– DSS
– EIS
– ERPs
– SCM
– CRM
– KMS
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Type Purpose Examples Users Key Features
Handles and Point-of-sale Operational High-volume processing,
records daily systems, payroll staff, real-time updates,
TPS
transactions. systems management accuracy in repetitive
tasks
MIS Provides routine Sales Middle Aggregates data from
reports and management, managers TPS, regular reporting,
summaries for inventory analysis
decision-making control
DSS Supports complex Financial Senior Interactive, "what-if"
decision-making planning, risk managers, scenarios, supports
with data analysis. analysis analysts semi-structured decisions
EIS Provides Dashboards, KPI Senior Summarized, visual data,
high-level reports, trend executives, key performance metrics
information for analysis top
strategic decisions managers

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Type Purpose Examples Users Key Features
Integrates all SAP, Oracle ERP Entire Centralized database,
departments and organization modular, covers all
ERPs
functions into a business processes
unified system..
SCM Manages the flow Inventory Supply chain Real-time data on
of goods, management, managers, inventory, orders, and
information, and vendor logistics performance
finances in supply management
chains.
CRM Manages Salesforce, Sales teams, Tracks customer
customer HubSpot, Zoho marketing, interactions, manages
interactions and CRM support leads, analyzes customer
relationships behavior
KMS Captures and Intranets, Employees, Centralized knowledge
shares SharePoint, project repository, encourages
organizational Wikis teams sharing and collaboration
knowledge

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 Other Types of IS Cont’d…
• Other Systems
– E-commerce Applications: Business to Customer, Business to
Business, and Customer to Customer
– IRS- Information retrieval systems
• Business intelligence
– Class of software applications
– Analyze current and historical data to find patterns and trends
and aid decision-making
– Used in systems that support middle and senior management
• Data-driven DSS
• Executive support systems (ESS)
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 Other Types of IS Cont’d…
• Executive support systems
– Support senior management
– Address non-routine decisions
• Requiring judgment, evaluation, and insight
– Incorporate data about external events (e.g. new
tax laws or competitors) as well as summarized
information from internal MIS and DSS

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 Cot…
• Building blocks of IS
– Data- the raw facts used to create useful information
– Processes- the activities that carry out the mission of
the business
– Interfaces- how the system interfaces(interacts) with
its users and other information systems.
– People- experts who design, implement, operate,
and maintain the IS, ensuring it meets the
organization's needs. End-users who input data,
retrieve information, and use system outputs.

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 Participants in Information System
Development
• Usually system development is a team work
and project based.
• Who do you think are the stakeholders
(participants) in IS design and development?
• How do each of these stakeholders
participate?

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 Cont…
• System owners- pay for the system to be built and
maintained.
– They own the system, set priorities for the system, and
determine policies for its use. In some cases, system
owners may also be system users.
• System users- are the people who actually use the
system to perform or support the work to be
completed.
– System users define the business requirements and
performance expectations for the system to be built.

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 Cont…
• System analysts- facilitate the development of
information systems and computer applications by
bridging the communication gaps that exist
between non-technical system owners and users
and technical system designers and builders.
• System designers- are the technical specialists who
design the system to meet users’ requirements. In
many cases, system designers may also be system
builders.

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 Cont…
• System builders are the technical specialists
who construct, test, and deliver the system
into operation.
• IT vendors and consultants who sell
hardware, software and services to
businesses for incorporation into their
information systems.

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 Systems Analyst
• Professional computer employee who
performs analysis and design
• Change agent
– Overcome reluctance of users to change
• Typical career path
– Programmer
– Programmer / Analyst
– Systems Analyst

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 Systems Analyst
Functions
Coordination
• Schedules and system-related tasks
• Personnel
– Manager
– Programmers
– Users
– Vendors of computer equipment

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 Systems Analyst
Functions
Communication
– Oral presentations
– Written documentation
Planning and design
– Plans and designs new system
– Involved from beginning of project to final
implementation of the system

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 System Analyst
Necessary skills required
– Analytical skills
– Technical skills
– Business skills
– Interpersonal skills
– Attention to details
– Continuous learning

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 Skills Cont’d…
• Analytical skills
– Problem-Solving: diagnose systems issues, identify
inefficiencies, and propose effective solutions.
• formulating alterative solutions, choosing the best alternative, devising a
plan for its implementation
– Requirement Gathering: Expertise in collecting and documenting
system requirements from stakeholders.
• Organizational knowledge- how organizations work (Example a payroll
system developed for a Government Unit wouldn’t work for a private
company)
– Process Mapping: Understand business processes and model
them using modeling tools (e.g., DFD, UML, flowcharts, BPMN).
– Systems Thinking: see how different parts of a system interact
and affect one another, anticipating impacts of changes.

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 Skills Cont’d…
• Technical skills-
– Understanding of IT Systems: Strong knowledge of hardware, software,
networks, and databases.
– Programming Knowledge: Familiarity with programming languages (understand
and write scripts (e.g., SQL, Python, Java )
– Data Analysis: Ability to analyze large datasets and generate insights using data
analysis tools.
– Database Management: Knowledge of relational databases, SQL, and NoSQL
databases for querying and managing data.
– Systems Design: Skills in designing systems architecture, data models, and
workflows.
– Knowledge of Software Development Life Cycle (SDLC): Understand
methodologies such as Agile, Waterfall, for system development.
– Knowledge of Operating Systems: Proficiency in various operating systems
(e.g., Windows, Linux) to evaluate and implement solutions.
– Cloud Computing: Familiarity with cloud platforms (AWS, Azure) for system
deployment and integration.
– Cybersecurity Awareness: Understanding of security protocols and risks to
ensure systems are secure.

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 Skills Cont’d…
• Business skills
– Business Acumen: Knowledge of industry-specific business processes,
objectives, and challenges.
– Project Management: Ability to manage projects, work within timelines,
and meet budgets, often working with project management tools like
Jira or MS Project.
– Cost-Benefit Analysis: Ability to evaluate the financial implications of
system changes and implementations.
– Risk Management: identifying risk in an IS development process and
minimizing it. For instance, use of standard or commonly used
technology will be less risky.
– Change management: helps people make a smooth transition from
one information system to another
– Vendor Management: Skills in working with third-party vendors for
system implementations and support.

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 Skills Cont’d…
• Interpersonal skills
– Communication: Strong verbal and written communication skills to
bridge concept understanding gap between technical experts and
non-technical stakeholders
• Develop interviewing, listening, written and oral presentation skills
– Collaboration: Ability to work with cross-functional teams, including
developers, project managers, and business stakeholders.
• Working in a team (team player),
• facilitating groups-guiding groups to work together
– Negotiation: Skills to negotiate system requirements and project scope
with various stakeholders.
• Managing expectations- educate pessimists
• Managing setbacks- handling difficult situations/conflicts/disagreements
– Adaptability: Ability to manage change and adapt to shifting business
priorities.

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 Skills Cont’d…
• Attention to details
– Documentation: Ability to thoroughly document system
requirements, processes, and configurations.
– Quality Assurance: Skill in testing systems to ensure they meet
the required specifications and function as expected.
• Continuous learning
– Keeping Up with Technology Trends: Staying updated with
new technologies, methodologies, and industry best practices to
remain effective.

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Approaches to Systems Development
• Process-Oriented Approach
– the primary focus is on the business processes that the system
must support.
• Emphasis: the workflow, actions, and procedures required to
complete tasks or deliver services.
• Modeling: involves use of flowcharts, process diagrams (e.g., Business
Process Model and Notation, or BPMN), and Data Flow Diagrams
(DFDs) to represent and model business processes.
• Functionality-Centric: The system’s functionality is prioritized, ensuring
that the processes are performed efficiently.
• Hierarchical Structure: Often, processes are broken down into
sub-processes and tasks in a top-down manner.
• Clear Sequence of Steps: The sequence of actions and the flow of
information between processes is a key concern

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Approaches to Systems Development…
• Process-Oriented Approach cont’d
– Well-suited for organizations where workflows are clearly
defined and process efficiency is a priority.
– Provides a clear understanding of how different parts of a
system interact.
– Helps to identify bottlenecks and inefficiencies in processes
that can be optimized through automation.
– May overlook or undervalue the importance of data structure
and relationships.
– Not as adaptable if business processes change frequently,
requiring re-analysis and re-design of processes.

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Approaches to Systems Development…
• Common Methodologies for Process-Oriented Approach
– Business Process Reengineering (BPR): A process improvement
approach that focuses on redesigning business workflows for
better performance.
– Structured Systems Analysis and Design Method (SSADM):
Focuses on understanding the data flows and processes within a
system but emphasizes processes as the key driver.
– Event-Driven Process Chain (EPC): A method for modeling
business processes in enterprise resource planning (ERP)
systems.
– Example Use Case: A customer service system where the focus is on
improving the workflow of handling service requests, assigning them
to support agents, and resolving issues within a certain time frame
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Approaches to Systems Development…
• Data-Oriented Approach
– the focus is on the data—how it is structured, stored, and
related—within the system.
– Emphasis: organization of data, integrity, and management of
data across the system, independent of the processes that
manipulate that data.
• Business rules depict how an organization captures and processes data
– Data Structure: system is designed around the data being
stored, its attributes, relationships, and constraints
– Modeling: Techniques like Entity-Relationship Diagrams (ERDs)
or Class Diagrams are used to model the data entities and
their relationships.

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Approaches to Systems Development…
• Data-Oriented Approach cont’d
– Data Integrity and Consistency: Ensuring that data is
accurate, reliable, and consistent across the system is a
primary concern.
– Data Independence: The system separates the data
model from the processes that use the data.
• Changes to processes don't require re-structuring the data.
– Normalization: Data is structured in such a way that
redundancy is minimized, and relationships are clearly
defined through keys and constraints.

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 Key differences between Process Oriented and Data
Oriented approaches to system Dev’t

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 System Development Approaches,
Methodologies and
Phases/Processes
• Organizations use a standard set of steps,
called a systems development methodology,
to develop and support their information
systems.
• The systems development life cycle (SDLC) is
a common, four-step methodology for systems
development in many organizations that
marks the phases or steps of information
systems development
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 Phase 1: Systems Planning and
Selection
• The primary activities of this phase are:
– identifying the need for a new or enhanced system and
– Selection of projects that are perceived to meet the
objectives of an organization
• Information system needs of an organization may
result from:
– Requests to deal with problems in current procedures
– The desire to perform additional tasks (or compliance to
standards)
– The realization that information technology could be used
to capitalize on an existing opportunity
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 Systems Planning and Selection
• Once a project is selected a plan is designed
that lays out important issues such as:
– Feasibility study
– Scope
– Schedule
• The plan is finally presented to the
management to proceed to the next phase.

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 Phase 2: Systems Analysis
• During this phase, the analyst thoroughly studies the
organization’s current procedures and the
information systems used to perform different tasks.
• The activities generally included in the analysis phase
are:
– determining the requirements of the system
– Requirement structuring and elimination of redundancies
– generating alternative initial designs to match the
requirements
• The output of the analysis phase is a description of
the alternative solution recommended by the
analysis team
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 Phase 3: Systems Design
• During systems design, analysts convert the description of the
recommended alternative solution into logical and then
physical system specifications.
• Logical design is not tied to any specific hardware and systems
software platform.
• During physical design decision is made regarding:
– programming language
– database systems
– hardware platform
– operating system, and
– network environment the system will run under.
• The final product of the design phase is the physical system
specifications
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 Phase 4: Systems Implementation
and Operation
• During systems implementation and
operation, you turn system specifications into
a working system that is tested and then put
into use.( a system in production, a deployed
system)
• Implementation includes coding, testing, and
installation.
• During the operation stage, programmers make the
changes that users ask for and modify the system to
reflect changing business conditions.
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 IS Development Methods
• The Most prominent methodologies for
modeling and designing systems:
1. Structured methodologies
2. Object-oriented development
3. Agile/Adaptive Methods
• Structured methodologies
– Structured: Techniques are step-by-step, progressive
– Process-oriented: Focusing on modeling processes or
actions that manipulate data
– Separate data from processes

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 Development Methods Cont’d…
• Object is basic unit of systems analysis and design
– Object:
• Combines data and the processes that operate on those data
• Data encapsulated in object can be accessed and modified only by
operations, or methods, associated with that object
• Object-oriented modeling based on concepts of
class and inheritance
– Objects belong to a certain class and have features of that
class
– May inherit structures and behaviors of a more general,
ancestor class

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 OO vs Structured Methods
• More iterative and incremental than traditional
structured development
– Systems analysis: Interactions between system and users
analyzed to identify objects
– Design phase: Describes how objects will behave and
interact; grouped into classes, subclasses and hierarchies
– Implementation: Some classes may be reused from
existing library of classes, others created or inherited
• Because objects are reusable, object-oriented
development can potentially reduce time and cost
of development
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 Alternative approaches to
development
• Prototyping
• joint application design (JAD)
• rapid application development (RAD)
• participatory design (PD)
• Agile Methodologies

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 Prototyping
• Prototyping is the process of designing and
building a scaled-down but working version of
a desired system
• The key advantages of the prototyping
technique are:
– it involves the user in analysis and design
– it captures requirements in concrete, rather than
verbal or abstract form

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 Joint Application Design
• joint application design (JAD) is a process the
purpose of which is to structure the
requirements determination phase of the
analysis and the reviews that occur as part of
the design
• Users, managers, and systems developers are
brought together for a series of intensive
structured meetings run by a JAD session
leader
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 Rapid Application Development
• Rapid application development (RAD) is a
Systems development methodology created to
radically decrease the time needed to design
and implement information systems.
• Focus is more on system functionality and user
interface requirements at the expense of
detailed business analysis and concern for
system performance issues

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 Participatory Design
• Participatory design (PD) emphasizes the role
of the user much more than traditional
techniques do, such as structured analysis and
structured design
• Each user has an equal voice in determining
system requirements and in approving system
design

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 Agile Methodologies
• Agile Methodologies a family of development
methodologies characterized by
– short iterative cycles and extensive testing
– active involvement of users for establishing,
prioritizing, and verifying requirements and
– a focus on small teams of talented, experienced
programmers.
• Teams usually are focused and may include SME,
Requirements Engineers, Developers(Programmers)

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 Computer-Aided Software
Engineering (CASE) Tools
• Computer-aided software engineering (CASE)
refers to automated software tools used by
systems analysts to develop information
systems.
• The general types of CASE tools include:
– Diagramming tools
– Computer display and report generators
– Documentation generators
– Code generators
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 End of Chapter One

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