Build Bright University Systems Analysis and Design

(CHAPTER
(CHAPTER 2) 2)
SYSTEMS
SYSTEMS PLANNING
PLANNING (Phase-1)
(Phase-1)
Preliminary
Preliminary Investigation
Investigation

 Reasons for IS projects

 Review of systems requests

 Internal and external factors

 Operational, technical and economic feasibility

 End product of a preliminary investigation

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Reasons For Information System Project

Better Information
The system might produce information that is insufficient,
incomplete, or unable to support the company's changing
information needs.

Improved Service
Systems requests often are aimed at improving service to
customers or users within the company.

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Increased Productivity
Increased productivity means that it costs less for a
business to provide its goods and services. With computer
information systems, people can do more work in a period
of time than they would be able to do if they don’t have
such systems.

Competitive Advantages
Information systems can help a business gain a
competitive advantage. A business has a competitive
advantage when customers clearly prefer its products over
those of other businesses.

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Factors Affecting Systems Projects

User Requests
As users rely more heavily on information systems to
perform their jobs, they are likely to request even more IT
services and support.

Top Management Directives

Directives from top managers are a prime source of major
systems projects.

Existing Systems
Errors or problems in existing systems can trigger
requests for systems projects.

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Information Technology Department

Many systems project requests come from the IT
department.

The Economy
Economic activity has a powerful influence on corporate
information management.

Technology
Changing technology is a basic force in business and
society in general.

Government
Federal, state, and local government regulations affect the
design of corporate information systems.
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Software And Hardware Vendors

Most companies have a mix of software and hardware
that must work together to support information systems
requirements.

Competitors
Competition drives many information systems decisions.

Customers
Customer service is vitally important, and information
systems that interact with customers receive top priority
in most firms.

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Suppliers
With the growth of electronic data interchange (EDI),
relationships with suppliers are critically important.

Systems Request Forms

Many organisations use a special form for systems

requests. When a systems request form is received, a
systems analyst or IT manager examines it to determine
what IT resources (staff and time) are required for the
preliminary investigation.

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PVF REQUEST FOR INFORMATION Sales growth at PVF has

SYSTEMS SERVICES caused a greater volume
Date:
Submitted by:
May 18, 2004
Michael Jeremy Title: Vice-President - Marketing of work for the marketing
Department: Marketing Location: Raleigh
Phone: 555-3242 E-mail: [email protected] department. This volume
REQUEST FOR: URGENCY: of work has greatly
[ ] Correction of system error
[ ] System enhancement
[ ] Immediate attention needed
[ ] Handle in normal priority sequence increased the volume and
[x] New system [x] Defer until new system developed
complexity of the data we
DESCRIPTION OF REQUESTED SYSTEMS SERVICES:
Sales growth at PVF has caused a greater volume of work for the
marketing department. This volume of work has greatly increased the
need to deal with and
volume and complexity of the data we need to deal with and understand.
We are currently using manual methods and a complex PC-based understand. We are
electronic spreadsheet to track and forecast customer buying patterns.
This method of analysis has many problems: (1) we are slow to catch
buying trends as there is often a week or more delay before data can be
currently using manual
taken from point of sales system and manually enter it into our
spreadsheet; (2) the process of manual data entry is prone to errors (which methods and a complex
makes the results of our subsequent analysis suspect); (3) the volume of
data and the complexity of analyses conducted in the system seem to be
overwhelming our current system
PC-based electronic
(To be completed by the Information Technology Department)
spreadsheet to track and
[ ] Approved Assigned to IT contact person: forecast customer buying
Uses:
Urgency code (1 low to 5 high):
patterns. This method of
analysis has many
[ ] Modified (see attached notes)
[ ] Rejected (see attached statement)

Date: Action:
problems:
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(1) we are slow to catch buying trends as there is often a week

or more delay before data can be taken from point of sales
system and manually enter it into our spreadsheet; (2) the
process of manual data entry is prone to errors (which makes
the results of our subsequent analysis suspect); (3) the volume
of data and the complexity of analyses conducted in the system
seem to be overwhelming our current system  sometimes the
program starts recalculating and never returns while for others
it returns information that we know cannot be correct.
I request a thorough analysis of our current methods of
tracking and analysis of customer purchasing activity with
intend to design and build a completely new information
system. This system should handle all customers purchasing
activity, support display and reporting of critical sales
information, and assist marketing personnel in understanding
the increasingly complex and competitive business
environment.
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Evaluation of Systems Requests

Many organisations assign responsibility for evaluating

systems requests to a group of key managers and users.

Systems Review Committees

A systems review committee provides a variety of
experience and knowledge in evaluating systems requests.

Evaluation of Projects
The systems review committee must evaluate the requests
and set priorities.

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Overview of Feasibility

A systems request must

meet several tests to see
whether it is worthwhile
to proceed further.
A feasibility study uses
three major yardsticks to
measure, or predict
a system's success:
operational feasibility,
technical feasibility,
and economic feasibility.

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Operational Feasibility
A system that has operational feasibility is one that will
be used effectively after it has been developed. Following
questions should be considered:
 Does management support the project? Do users
support the project? Is the current system well liked
and effectively used? Do users see the need for
change?
 Will the new system result in a workforce reduction?
If
so, what will happen to affected employees?
 Will the new system require training for users? If so, is
the company prepared to provide the necessary
resources for training current employees?
 Will users be involved in planning the new system
right from the start?
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 Will the new system requires any operating changes?

 Will customers experience adverse effects in any way,
either temporarily or permanently?
 Is the schedule for development of the system
reasonable?

Technical Feasibility
A systems request has technical feasibility if the
organization has the resources to develop or purchase,
install, and operate the system. Following questions
should be considered:
 Does the company have the necessary hardware,
software, network resources? If not, can those
resources be acquired without difficulty?

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 Does the company have the needed technical

expertise? If not, can it be acquired?
 Does the proposed platform have enough capacity
for future needs? If not, can it be expanded?
 Will the hardware and software environment be
reliable? Will it integrate with other company
information systems, both now and in the future?
 Will the combination of hardware and software supply
adequate performance?
 Will the system be able to handle future transaction
volume and company growth?

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Economic Feasibility
A systems request has economic feasibility if the
projected benefits of the proposed system outweigh the
estimated costs involved in acquiring, installing, and
operating it. Following areas should be considered:
 People, including IT staff and users
 Hardware and equipment
 Software, including in-house development as well as
purchases from vendors
 Training
 Licenses fees
 Consulting expenses
 The estimated cost of not developing the system or
postponing the project

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Tangible benefit are benefits that can be measured in

dollars.

Intangible benefit are difficult to measure in dollars but

also should be identified.

Criteria Used to Evaluate Systems Requests

When assessing a project, a system analyst should ask the

following questions:
 Will the proposed system reduce costs? Where?
When? How? How much?
 Will the system increase revenue for the company?
Where? When? How? How much?

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 Will the system project result in more information or

produce better results? How?
 Will the system serve customers well?
 Will the system serve the organization better?
 Can the project be implemented in a reasonable time
period? How long will the results last?
 Are the necessary financial, human, and technical
resources available?

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Steps in the Preliminary Investigation

Step 1: Understand the Problem or Opportunity

Step 2: Define the Project Scope and Constraints

Project scope means to define the boundaries, or extent
of the project.

Project constraint is a condition that the system must

satisfy or an outcome that the system must achieve.

Step 3: Perform Fact-Finding

During fact-finding, you must analyze organization
charts, conduct interviews, review current documentation,
observe operations, and carry out a survey.
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Step 4: Determine Feasibility

Feasibility includes technical, operational, and economic
feasibility.

Step 5: Estimate Time and Cost to Continue

Development
To develop time and cost for next development phase,
you should consider the following issues:
 What information must you obtain, and how will you
gather and analyze the information?
 What sources of information will you use, and what
difficulties will you encounter in obtaining the
information?

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 Will you conduct interviews? How many people will

you interview, and how much time will you need to
meet with the people and summarize their responses?
 Will you conduct a survey? Who will be involved?
How much time will it take people to complete it?
How much time will it take to prepare it and tabulate
the results?
 How much will it cost to analyze the information
gathered and to prepare a report with findings and
recommendations?

Step 6: Present Results and Recommendations to

Management

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