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Sad Lecture 1 - Revised

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Systems Analysis and Design (SAD) Lecture 1

To understand what is Systems Analysis and


Design
To learn the different types of Business
Information Systems
To know the four phases of the Systems
Development Life Cycle
To identify the role of the Systems Analyst

Systems analysis and design is a step-by-step

process for developing high-quality information


systems.

Systems Analysis: understanding and


specifying in detail what an information system
should do.
System Design: specifying in detail how the
parts of an information system should be
implemented.

An information system combines information


technology, people, and data to support
business requirements.

An information system has five key


components : hardware, software, data,
processes, and people.

Success of information systems depends on


good SAD
Widely used in industry - proven techniques
Part of career growth in IT - lots of
interesting and well-paying jobs!
Increasing demand for systems analysis skills

Enterprise Computing System


- refers to information systems that support
company-wide operations and data
management requirements.
- main objective is to integrate a companys
primary functions to improve efficiency,
reduce costs, and help managers make key
decisions.

Transaction Processing System


- process data generated by day-to-day
business operations.
- examples of TP systems include customer
order processing, accounts receivable, and
warranty claim processing.

Business Support Systems


- provide job-related information support to
users at all levels of a company.
- can analyze transactional data, generate
information needed to manage and control
business processes, and provide information
that leads to better decision-making.

Knowledge Management Systems


- called expert systems because they simulate
human reasoning by combining a knowledge
base and inference rules that determine how
the knowledge is applied.

- consists of a large database that allows users


to find information by entering keywords or
questions in normal English phrases.

User Productivity Systems


- technology that improves productivity.

- include e-mail, voice mail, fax, video and Web


conferencing, word processing, automated
calendars, database management,
spreadsheets, desktop publishing, presentation
graphics, company intranets, and high-speed
Internet access.

The systems analyst assists and guides the


project team so the team develops the right
system in an effective way.

Systems analysts must understand how to


apply technology in order to solve problems.

Systems analysts may also serve as change


agents who identify the organization
improvements needed, design systems to
implement those changes, and train/motivate
others to use the systems.

Introduces change to the organization and


people

Leads a successful organization change


effort

Understands what to change and knows


how to change it

Must have technical skills, as well as, business


skills

Communicate effectively and give


presentations

Must be able to deal fairly, honestly, and


ethically with other project members,
managers, and systems users

Business analyst
Systems analyst
Infrastructure analyst
Change management analyst
Project manager

The systems analyst focuses on the IS issues


surrounding the system.
Develops ideas and suggestions for ways IT
can improve business process, helps design
new business processes, helps design new
business process, designs the new
information system, and ensures that all IS
standards are maintained.

Focuses on the business issues surrounding


the system
Identifies the business value that the system
will create
Develops ideas for improving the business
processes
Helps design new business processes and
policies

Focuses on technical issues surrounding the


ways the system will interact with the
organizations technical infrastructure
Ensures that the new information system
conforms to organization standards
Identifies infrastructure changes

Focuses on the people and management


issues surrounding the system installation.
Ensures that adequate documentation and
support are available to users.
Provides user training.
Develops strategies to overcome resistance
to change.

Highly experienced systems analyst.


Ensures that the project is completed on time
and within budget.
Makes sure the system delivers the expected
vale to the organization.

The SDLC is composed of four fundamental


phases:

Planning
Analysis
Design
Implementation

Each of the phases include a set of steps, which


rely on techniques that produce specific
document files that provide understanding about
the project.

To Understand the SDLC:


Each phase consists of steps that lead to specific

deliverables
The system evolves through gradual refinement

Phase I: Planning

Planning phase is the fundamental process


of understanding why an information system
should be built.
In this phase will also determine how the
project team will go about building the
information system.
The Planning phase is composed of two
planning steps: (1) Project initiation; (2)
Project management;

Two Planning Steps

During project initiation, the systems business


value to the organization is identified (How will it
lower costs or increase revenues?).

A system request presents a brief summary of a


business need, and it explains how a system that
supports the need will create business value.

The feasibility analysis examines key aspects


of the proposed project:
The technical feasibility (Can we build it?)
The economic feasibility (Will it provide
business value?)
The organizational feasibility (If we build it,
will it be used?)

The system request and feasibility analysis


are presented to an information systems
approval committee (sometimes called a
steering committee), which decides whether
the project should be undertaken.

During project management, the project


manager creates a work plan, staffs the
project, and puts techniques in place to help
the project team control and direct the
project through the entire SDLC.
The deliverable for project management is a
project plan that describes how the project
team will go about developing the system.

Phase II: Analysis


The Analysis Phase answers the questions of who
will use the system, what the system will do, and
where and when it will be used.
During this phase the project team investigates any
current system(s), identifies improvement
opportunities, and develops a concept for the new
system.
This phase has three analysis steps.

Analysis strategy: This is developed to guide the


projects teams efforts. This includes an analysis of
the current system.
2. Requirements gathering: The analysis of this
information leads to the development of a concept
for a new system. This concept is used to build a set
of analysis models.
3. System proposal: The proposal is presented to the
project sponsor and other key individuals who
decide whether the project should continue to
move forward.
1.

The system proposal is the initial deliverable


that describes what business requirements
the new system should meet.

The deliverable from this phase is both an


analysis and a high-level initial design for the
new system.

Phase III: Design

In Design Phase , it decided how the system


will operate, in terms of the hardware,
software, and network infrastructure; the
user interface, forms, and reports that will be
used; and the specific programs, databases,
and files that will be needed.

1.

2.

3.

4.

Design Strategy: This clarifies whether the


system will be developed by the company or
outside the company.
Architecture Design: This describes the hardware,
software, and network infrastructure that will be
used.
Database and File Specifications: These
documents define what and where the data will be
stored.
Program Design: Defines what programs need to
be written and what they will do.

Phase IV: Implementation

During the Implementation Phase, the


system is either developed or purchased (in
the case of packaged software).
This phase is usually the longest and most
expensive part of the process.
The phase has three steps.

Three Implementation Steps

System Construction: The system is built and


tested to make sure it performs as designed.
Installation: Prepare to support the installed
system.
Support Plan: Includes a postimplementation review.

A project is identified when someone in


the organization identifies a business need to
build a system.
Examples of business needs include
supporting a new marketing campaign,
reaching out to a new type of customer, or
improving interactions with suppliers.

The project sponsor is someone who recognizes


the strong business need for a system and has
an interest in seeing the system succeed.
The business need drives the high-level
business requirements for the system.
Requirements are what the information
system will do or what functionality it will
contain.

The project sponsor also should have an idea of


the business value to be gained from the system,
in both tangible and intangible ways.
Tangible value can be quantified and measured
easily (e.g., 2% reduction in operating costs).
An intangible value results from an intuitive
belief that the system provides important, but
hard-to-measure, benefits to the organization
(e.g., improved customer service, a better
competitive position)

Once the project sponsor identifies a project


that meets an important business need and
he or she can identify the business
requirements and business value of the
system, it is time to formally initiate the
project through a system request.

Tune Source is a company headquartered in


southern California. Tune Source is the brainchild of
three entrepreneurs with ties to the music industry:
John Margolis, Megan Taylor, and Phil Cooper.
Originally, John and Phil partnered to open a number
of brick and mortar stores in southern California
specializing in hard-to-find and classic jazz, rock,
country, and folk recordings. Megan soon was invited
to join the partnership because of her contacts and
knowledge of classical music. Tune Source quickly
became known as the place to go to find rare audio
recordings. Annual sales last year were $40 million
with annual growth at about 3%5% per year.

John, Megan, and Phil, like many others in the music industry,
watched with alarm the rise of music-sharing websites like Napster, as
music consumers shared digital audio files without paying for them,
denying artists and record labels royalties associated with sales. Once
the legal battle over copyright infringement was resolved and Napster
was shut down, the partners set about establishing agreements with a
variety of industry partners in order to offer a legitimate digital music
download resource for customers in their market niche. Phil has asked
Carly Edwards, a rising star in the Tune Source marketing department, to
spearhead the digital music download project. Tune Source currently has
a website that enables customers to search for and purchase CDs. This
site was initially developed by an Internet consulting firm and is hosted
by a prominent local Internet Service Provider (ISP) in Los Angeles. The IT
department at Tune Source has become experienced with Internet
technology as it has worked with the ISP to maintain the site.

Feasibility analysis guides the organization in


determining whether to proceed with a
project.
Feasibility analysis also identifies the
important risks associated with the project
that must be addressed if the project is
approved.

The extent to which the system can be


successfully designed, developed, and
installed by the IT group.

It identifies the financial risk associated with


the project.
Economic feasibility is determined by
identifying costs and benefits associated with
the system, assigning values to them, and
then calculating the cash flow and return on
investment for the project.

The first task when developing an economic


feasibility analysis is to identify the kinds of
costs and benefits the system will have and
list them along the left-hand column of a
spreadsheet.

The costs and benefits can be broken down


into four categories:
(1) Development costs,
(2) operational costs,
(3) tangible benefits, and
(4) intangibles.

Development costs are those tangible expenses


that are incurred during the creation of the
system, such as salaries for the project team,
hardware and software expenses, consultant
fees, training, and office space and equipment.
Development costs are usually thought of as
one-time costs.

Operational costs are those tangible costs that


are required to operate the system, such as the
salaries for operations staff, software licensing
fees, equipment upgrades, and
communications charges. Operational costs
are usually thought of as ongoing costs.

Tangible benefits include revenue that the


system enables the organization to collect,
such as increased sales. In addition, the system
may enable the organization to avoid certain
costs, leading to another type of tangible
benefit: cost savings.
Intangible costs and benefits are more difficult
to incorporate into the economic feasibility
analysis because they are based on intuition
and belief rather than on hard numbers.

The final technique used for feasibility


analysis is to assess the organizational
feasibility of the system: how well the system
ultimately will be accepted by its users and
incorporated into the ongoing operations of
the organization.

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