Introduction to systems development and systems analysis ( Topic 8)

Question 1

Why Update Systems?

Answer 1

• User or business changes 

• Technology changes 

• To improve business process 

• Create competitive advantage 

• Increase productivity gains 

• Integrate multiple systems 

• Aging systems need replacement 

• Develop quality, error-free software 


Question 2

Systems Development Life Cycle (SDLC)

Answer 2

• Systems analysis
• Conceptual design
• Physical design
• Implementation and conversion
• Operations and maintenance

Question 3

Systems analysis

Answer 3

First SDlC step where the information needed to purchase, develop, or modify a system is gathered.

Question 4

Conceptual design

Answer 4

Second SDlC step where analysts decide how to meet user needs, identify and evaluate design alternatives, and develop de- tailed specifications for what the system is to accomplish and how it is to be controlled.

Question 5

Physical design

Answer 5

Third SDlC step where broad, user-oriented conceptual design requirements are translated into the detailed specifications used to code and test software, design input/ output, create files/databases, develop procedures, and imple- ment controls.

Question 6

Implementation and conversion

Answer 6

Fourth SDlC step where the company hires and trains employees, tests and modifies procedures, establishes stan- dards and controls, completes documentation, moves to the new system, and detects and corrects design deficiencies.

Question 7

Operations and Maintenance

Answer 7

Fifth SDlC step where the system is periodically reviewed and necessary modifications and improvements are made.

Question 8

Who is involved in the SDLC

Answer 8

• Information Systems Steering Committee
– Executive level, plans and oversees IS function; facilitates coordination with integration of systems activities

• Project Development Team

– Plan and monitor project progress

• Programmers
– Write and test programs according to analysts specifications

• Systems Analysts
– Determine information needs, prepare specifications for programmers

• Management
– Get users involved in the process, provide support for development projects, align projects to meet organizations strategic needs

• Users
– Communicate needs to system developers, help design and test to ensure complete and accurate processing of data

Question 9

Computer Programers

Answer 9

write and test programs using the specifications developed by systems analysts. They also modify and maintain existing computer programs.

Question 10

System Development Planning

Answer 10

• Proper planning provides for achieving goals and objectives
• For systems development, two plans needed:

– Project Development Plan
Specific to a project and authored by the project team identifies people, hardware, software, and financial resources needed

– MasterPlan
Long-range and authored by steering committee outlining prioritized projects and timetables

Question 11

Planning Technique

- PERT Chart

Answer 11

Program Evaluation and Review Technique (PERT)
• Network of arrows and nodes representing project activities that require an expenditure of time and resources and completion and initiation of activities.
• Completion time estimates made. 

• Critical path—the path requiring the greatest amount of time is determined. ( critical path - The PERT path re- quiring the greatest amount of time to complete a project; if a critical path activity is delayed, the whole project is delayed.)

Question 12

Planning Technique

- GANTT Chart

Answer 12

A bar chart with project activities on the left-hand side and units of time across the top.
Graphically shows entire schedule for a large, complex project.

Question 13

Capital Budgeting

- Cost-Benefit Analysis

Answer 13

Benefits and costs estimated and compared to determine whether system is cost beneficial.

Benefits and costs (not easily quantifiable) estimated and included.

If they cannot be accurately estimated, they are listed, and their likelihood and expected impact on the organisation evaluated.

Question 14

Capital Budgeting

- Techniques

Answer 14

• Payback Period
• Net Present Value (NPV)
• Internal Rate of Return (IRR)

Question 15

Internal Rate of Return (IRR)

Answer 15

• Effective interest rate that results in an NPV of zero. 


* A project’s IRR compared with minimum acceptable rate to determine acceptance or rejection. 


Question 16

Net Present Value (NPV)

Answer 16

• Future benefits discounted back to present.
• Initial cost subtracted
• Positive NPV = economically feasible.

Question 17

Payback Period

Answer 17

• Number of years required for net savings to equal initial cost of investment.

Question 18

Behavioural aspects to change: why behavioural problems occur

Answer 18

The positive and negative ways people react to change; manag- ing these behavioral reactionsis crucial to successfully imple- menting a new system.

Question 19

The best system will fail without the support of the people it serves. Why people resist change:

Answer 19

Fear

- People fear the unknown, losing their jobs, losing respect or status, failure, technology and automation, and the uncertainty accompanying change.

Lack of top management support 


Lack of communication 


Disruptive nature of change 


Methods of instituting change
- Resistance is often a reaction to the methods of instituting change rather than to change itself


Biases and emotions

- People with emotional attachments to their duties or coworkers may not want to change if those elements are affected.

Personal characteristics and background.
- younger and more highly educated people are, the more likely they are to accept change

Question 20

Types of Resistance to change

Answer 20

Aggression
• Behaviour that destroys, cripples or weakens system effectiveness, such as increased error rates, disruptions or deliberate sabotage.

Projection

• Blaming new system for everything that goes wrong.

Avoidance
• Ignoring a new AIS in the hope that problem (system) will eventually go away.

Question 21

How to prevent resistance

Answer 21

• Management support

– Provide resources and motivation

• Satisfy user needs 


• Involve users 

– Participation improves communication and commitment

• Reduce fears, emphasize opportunities 

- Users are vitally interested in how system changes affect them personally. Address their concerns and provide assurances (to the extent possible) that job losses and responsibility shifts will not occur

• Avoid emotionalism 
- Emotional issues should be allowed to cool, they should be handled in a nonconfrontational manner, or they should be sidestepped.
• Provide training 


• Performance evaluation
– Reevaluate to ensure performance standards are consistent with the new system

• Keep open communications
• Test the system prior to implementation


• Keep system simple
– Introduce in stages

– Avoid radical changes

• Control user’s expectations
– Be realistic

Question 22

Phase 1
Systems Analysis

Answer 22

When a new or improved system is needed, a written request for systems development is prepared.

Request for systems development - A written request for a new or improved system that describes the current system’s problems, the reasons for the change, and the proposed system’s objectives, benefits, and costs.

initial investigation - A preliminary investigation to determine whether a proposed new system is both needed and feasible.

proposal to conduct systems analysis - A request to complete the systems analysis phase for a project that makes it through the initial investigation.

systems survey - An extensive study of the current AIS.

Question 23

Phase 1
Systems Analysis

AIS that has the following objectives:

Answer 23

●Gain an understanding of company operations, policies, procedures, and information flow; AIS strengths and weaknesses; and available hardware, software, and personnel.
●Make preliminary assessments of current and future processing needs, and determine the extent and nature of the changes needed.
●Develop working relationships with users, and build support for the AIS.
●Collect data that identify user needs, conduct a feasibility analysis, and make recommendations to management.

Question 24

Systems documentation

Answer 24

A complete description of how the system is supposed to work, including questionnaire copies, interview notes, memos, docu- ment copies, and models.

Question 25

Physical model

Answer 25

The description of how a system functions by describing document flow, computer processes performed, the people performing them, and the equipment used.

Question 26

Logical model

Answer 26

System description that focuses on what essen- tial activities are performed and the flow of information irrespec- tive of how the flow is actually accomplished.

Question 27

Systems survey report

Answer 27

A report that summarizes all the activi- ties that took place during the systems survey, including all relevant documentation.

Question 28

Feasibility study
Information needs and system requirements

The following four strategies are used to determine AIS requirements:

Answer 28

1. Ask users what they need. This is the simplest and fastest strategy, but many people do not understand their needs. They know their job but may be unable to break it down into the individual information elements they use
2. Analyze external systems. If a solution already exists, do not “reinvent the wheel.”
3. Examine existing systems. Determine if existing modules are used as intended, may be augmented by manual tasks, or may be avoided altogether
4. Create a prototype. When it is difficult to identify requirements, a developer can quickly rough out a system for users to critique

Question 29

Systems Analysis Report

Answer 29

Comprehensive report summarizing systems analysis that docu- ments the findings of analysis activities.

Question 30

Systems Survey

Answer 30

A systems survey involves an extensive study of the current AIS 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. 


Question 31

Gathering Data on Current System

Answer 31

Four common methods of gathering data are:
 • Interviews

• Questionnaires

• Observation 
• System documentation


Question 32

There are advantages and disadvantages for each method of data gathering

Answer 32

(review notes)

Question 33

Systems Documentation

Answer 33

Once data is gathered, document findings and model existing system.
Another form of documentation is a system model.
• Physical models illustrate how a system functions by describing
- Flow of documents (document flowcharts) 

- Computer processes performed (system flowcharts) 

- People performing them 

- Equipment used 

- Any other physical elements 

• Logical models illustrate what is being done regardless of how the flow is accomplished and flows of data (data flow diagrams, E-R diagrams, REA data models). 


Question 34

Feasibility Study

-Does it make sense to proceed with new system?

Answer 34

Economic
• Will system benefits justify the time, money, and resources required to implement it?

Technical
• Can system be developed and implemented using existing technology?

Legal
• Does system comply with all applicable federal and state laws, administrative agency regulations and contractual obligations?

Scheduling
• Can system be developed and implemented in time allotted?

Operational
• Does organisation have access to people who can design, implement and operate proposed system? Will people use the system?

Question 35

Identify Information needs and systems requirements

Answer 35

Once project deemed feasible identify information needs of users and document systems requirements.
Strategies are used to determine AIS requirements:
- Ask users what they need

- Analyse external systems

- Examine existing systems
- Create a prototype

Question 36

Possible contents of system requirements

Answer 36

( read notes )

Question 37

Systems Analysis Report

Answer 37

Concluding step, prepare systems analysis report.
•Outlines and documents analysis activities. 

•Provides recommendations that result from the systems analysis. 


Go/no-go decision made up to three times during systems analysis.
- During an initial investigation, to determine whether to conduct a systems survey. 


• At the end of a feasibility study, to determine whether to proceed to an information requirements phase. 

• At completion of an analysis phase, to decide whether to proceed to conceptual systems design. 


Question 38

Phase 2
Conceptual System Design

Answer 38

Developer creates a general framework for implementing user requirements and solving the problems identified in the analysis phase.
• Evaluate design alternatives. 

• Prepare design specifications. 

• Prepare conceptual systems design report. 


Question 39

Preparing Design Specifications

- Output -

Answer 39

• How often? 

• What should reports contain? 

• What should reports look like? 

• Should reports be online or hard copy or both? 

• Because the system is designed to meet user information needs, output specifica- tions are prepared first. To evaluate store sales, SM must decide (a) how often to produce a sales analysis report, (b) what the report should contain, (c) what it will look like, and (d) whether it is a hard-copy or screen (or both) output.

Question 40

Preparing Design Specifications

-Data storage- 


Answer 40

• What data elements must be stored to produce a report? 

• How they should be stored? 

• What type of file or database should be used?

Question 41

Preparing Design Specifications

-
Input -

Answer 41

• Where, when, and how to collect the data? 


Question 42

Preparing Design Specifications

-Processing procedures and operations 
-

Answer 42

Design considerations include how to process the input and stored data to produce the sales report and in which sequence the processes must be performed.

Question 43

Phase 3 - Physical Design

Answer 43

Conceptual designs are translated into detailed specifications that are used to code and test computer programs. 
•	Output 

•	File and database 

•	Input 

•	Program 

•	Procedures 

•	Controls 


Question 44

Phase 3 - Physical Design

Answer 44

( read notes )

Question 45

Output Design

• Types of output

Answer 45

Determine nature, format, content, and timing of reports, documents and screen displays.
• Types of output
• - Scheduled reports (pre-specified content; prepared on regular basis, e.g. monthly performance reports) 

• - Special-purpose analysis reports (no pre-specified content; non prepared on regular basis, e.g. new product profitability) 

• - Triggered exception reports (pre-specified content; prepared in response to abnormal conditions) 

• - Demand reports (pre-specified content; prepared on request)

Question 46

Output Design considerations

Answer 46

( see image document )

Question 47

File and Database Design Considerations

Answer 47

( see image document )

Question 48

Input design considerations

Answer 48

( see image document )

Question 49

Principles of Good form design

Answer 49

( see image document )

Question 50

Program Design

- Describe and explain requirements

Answer 50

•Determine user needs
- Systems analysts consult with users and reach an agreement on user needs and software requirements.


• Create and document development plan 

• Write program instructions (code the system)
• Program preparation time may range froma few days to a few years, depending on program complexity. Programming standards (rules for writing programs) contribute to program consistency, making them easier to read and maintain.

• Computer programs should be subdivided into small, well-defined modules to reduce complexity and enhance reliability and modifiability, a process called structured programming.

•Test program (debug for errors) 

Is the process of discovering and eliminating program errors. A program is tested for logic errors using test data that simulate as many real processing situations and input data combinations as possible

•Document program
Documentation explains how programs work and is used to correct errors. Program documentation includes flowcharts, data flow diagrams

•Train users 


•Install system 

All system components, including the programs and the hardware, are combined, and the company begins to use the system.

•Use and modify system
Factors that require existing programs to be revised, referred to as program maintenance, include requests for new or revised reports; changes in input, file content, or values such as tax rates; error detection; and conversion to new hardware.

Question 51

Procedures

Answer 51

Procedures for who, what, where, why, when 
•	Input preparation 

•	Transaction processing 

•	Error detection and correction 

•	Controls 

•	Reconciliation of balances 

•	Database access 

•	Output preparation and distribution 

•	Computer operator instructions

Question 52

physical systems design report

Answer 52

Summarizes what was accom- plished in physical design; used to determine whether or not to proceed to the implementation phase.

Question 53

Controls Design Considerations

Answer 53

( read image document )

Question 54

Phase 4
Implementation and Conversion

Answer 54

Process of installing hardware and software and getting AIS up and running. 
•	Planning 

•	Prepare site 

•	Test hardware 

•	Train personnel 

•	Complete documentation 

•	Test system 

•	Conversion 


Question 55

Implementation plan

Answer 55

A written plan showing how the new system will be implemented; specifies when the project should be complete and the iS operational, including a completion timetable, cost estimates, task milestones, and who is responsible for each activity.

Question 56

Types of Documentation

Answer 56

Development documentation
• A system description; copies of output, input, and file and database layouts; program flowcharts; test results; and user acceptance forms.

Operations documentation
• Includes operating schedules; files and databases accessed; and equipment, security, and file-retention requirements.

User documentation
• Teaches users how to operate AIS; it includes a procedures manual and training materials.

Question 57

Types of System Testing

Answer 57

Walk-through
• Step-by-step reviews of procedures or program logic to find incorrect logic, errors, omissions or other problems.

Processing test data

• Using both valid transactions and all possible error conditions.

Acceptance tests
• Real transactions and files rather than hypothetical ones, users develop acceptance criteria and make final decision whether to accept AIS.

Question 58

Types of Conversions

Answer 58

Direct

• Terminates old AIS when the new one is introduced.
- For example, SM could discontinue its old system on Saturday night and use its new AIS on Monday morning. Direct conversion is appropriate when a new system is so different that com- parisons between the two are meaningless. The approach is inexpensive, but it provides no backup AIS.

Parallel

• Operates old and new systems simultaneously for a period.
- SM could process transactions with both systems, compare the output, recon- cile the differences, correct problems, and discontinue the old system after the new sys- tem proves itself. Parallel processing protects companies from errors, but it is costly and stressful to process transactions twice.

Phase-in
• Gradually replaces elements of old AIS with new one. 
Phased conversion

Pilot conversion
• Implements a system in one part of organisation, such as a branch location. – isolated location to detech specific errors 

• Localises conversion problems and allows training in a live environment. 

implements a system in one part of the organization, such as a branch location. For example, SM could install its new POS system at one of its stores using a direct, parallel, or phase-in approach.

Question 59

postimplementation review

Answer 59

review made after a new sys- tem has been operating for a brief period to ensure that the new system is meeting its planned objectives, identify the adequacy of system standards, and review system controls.

Question 60

postimplementation review report

Answer 60

a report that analyzes a newly delivered system to determine if the system achieved its intended purpose and was completed within budget.

Question 61

Phase 5
Operations and Maintenance

• Conduct post-implementation review includes answering these questions:

Answer 61

– Does the system meet the organization’s goals? 

– Are user’s satisfied? 

– Were expected benefits achieved? 

– Were actual costs inline with expected costs? 

– Is the system reliable? 

– Does the system produce accurate and complete data and on a 
timely basis? 

– Is the system compatible with existing systems? 

– Is the system safeguarded from errors, fraud, and intrusion? 

• – Are there adequate error-handling procedures in place? 

– Is everyone trained to use the new system? 

– Is systems documentation complete and accurate?