System Analysis and Design Introduction

2 POSSIBLE JOBS AFTER STUDY PROGRAMMER –person writing/coding the computer programs SYSTEM ANALYST 2

System Analyst Designs new IT solutions to improve business efficiency and productivity. They produce systems/software products which are: –used internally within the organization/company –sold commercially to other companies or organizations –embedded in products

SYSTEMS ANALYST ROLES OF A SYSTEMS ANALYST 1. CONSULTANT- often hired from OUTSIDE the company, specifically for a project; 2.SUPPORT EXPERT- expert on hardware and software technologies, advises on alternative hardware/software configurations; 3.CHANGE AGENT- will be expected to suggest alternative business processes to improve the current system.

QUALITIES OF A GOOD SYSTEMS ANALYST Ability to draw flowcharts and other technical diagrams Needs people and leadership skills Needs good application knowledge Needs computer skills Needs a logical and organized mind Good problem solver

COURSE OBJECTIVES To provide you with new ways of looking at information in the world in order to solve business problems To introduce you to concepts and methods of SAD To describe the systems development life cycle (SDLC) To teach you effective methods for gathering essential information during system analysis To teach you approaches to documenting and modeling of gathered information To teach you effective methods for designing systems to solve problems effectively using technology

SYSTEMS ANALYSIS AND DESIGN ??? ? 7

WHAT IS A SYSTEM? ** A group of related components that serve for a common purpose (goal). ** A set of related procedures and function with definite objectives. ** SYSTEMS ARE/WERE CREATED TO SOLVE PROBLEMS

CLASSIFICATIONS OF SYSTEM 1.NATURAL SYSTEM- Systems created by God 2.ARTIFICIAL SYSTEM- Systems created by man EXAMPLES: Nature, world, solar system, universe EXAMPLES: Companies, Software, Traffic system, College System

TYPES OF SYSTEM 1. BUSINESS SYSTEM 2. INFORMATION SYSTEM

TYPES OF SYSTEM 1. BUSINESS SYSTEM is concerned with accomplishing specific business goals/objectives. EXAMPLES: Shops with the goal selling products. Factories with the goal of manufacturing products.

TYPES OF SYSTEM 2. INFORMATION SYSTEM exists only to serve the business system of which it is a component. Collection of programs and procedures to help the business system. It processes the data and information in a given business system. EXAMPLES: Software, Programs

TYPES OF SYSTEM So whenever we speak of “ System Analysis and Design” the word “system” is referring both to the “business system” and its “information system”, since neither can exist without the other.

CLASSIFICATIONS OF SYSTEM Manual System- doesn’t use any computer devices Computerized System- use hardware and software

SYSTEMS ANALYSIS AND DESIGN √? 15

What is ANALYSIS? ANALYSIS is used to gain an understanding of an existing system and what is required of it. 16

SYSTEMS ANALYSIS AND DESIGN √ ? √ 17

DESIGN DESIGN means to create, to produce. 18

SYSTEMS ANALYSIS AND DESIGN √ √ √ SYSTEMS ANALYSIS- Understanding and specifying in detail WHAT an Information System/Software should do 19

SYSTEMS ANALYSIS AND DESIGN √√ SYSTEMS DESIGN- specifying in detail HOW the parts of an Information System/Software should be implemented 20

SYSTEMS ANALYSIS AND DESIGN √ √ √ SYSTEMS ANALYSIS AND DESIGN MEANS TO STUDY AND ANALYZE A SYSTEM TO CREATE A BETTER SYSTEM FOR A BUSINESS (COMPANY). SDLC allows organizations to incorporate new requirements, technology and human resources to IT development 21

SYSTEMS ANALYSIS AND DESIGN OLD SYSTEM (Manual or Semi- Computerized or Fully Computerized) NEW AND BETTER SYSTEM SYSTEMS DEVELOPMENT LIFE CYCLE

SYSTEMS ANALYSIS AND DESIGN OLD LIBRARY SYSTEM (Manual) NEW COMPUTERIZED LIBRARY SYSTEM SYSTEMS DEVELOPMENT LIFE CYCLE

IMPORTANCE OF S.A.D. 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.

SOFTWARE ENGINEERING METHODOLOGIES 1.SYSTEMS DEVELOPMENT LIFE CYCLE or WATERFALL MODEL 2.PROTOTYPING MODEL 3.OBJECT ORIENTED MODEL 4.SPIRAL MODEL 5.INCREMENTAL MODEL 6.WINWIN SPIRAL MODEL 7.EVOLUTIONARY MODEL

26 MAINTENANCE CONVERSION CONSTRUCTION TESTING PROBLEM RECOGNITION FEASIBILITY STUDY ANALYSIS DESIGN THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC), also known as the WATERFALL MODEL

7 STEPS OF SYSTEMS DEVELOPMENT LIFE CYCLE 1.PROBLEM RECOGNITION 2.FEASIBILITY STUDY 3.ANALYSIS 4.DESIGN 5.CONSTRUCTION 6.CONVERSION 7.MAINTENANCE

28 MAINTENANCE CONVERSION CONSTRUCTION TESTING PROBLEM RECOGNITION FEASIBILITY STUDY ANALYSIS DESIGN THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC), also known as the WATERFALL MODEL

LET’S START WITH THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 29

STEP 1: PROBLEM RECOGNITION STEP Name Problem Recognition Major Function To establish that a problem exists in the system. Output PROBLEMS TO BE SOLVED; WHY DO WE NEED A BETTER SYSTEM.– Permission to conduct feasibility Study WHO ARE INVOLVED? Systems Analyst, Users (Staff) and Managers of the Company Usually known as the PLANNING STEP.

STEP 1: PROBLEM RECOGNITION Systems Analysis and Design starts when someone in the company identifies a problem within the business and thinks that there’s a need to build a new system. “A staff or a manager of a company realizes that their information system needs to be changed or improved.”

STEP 1: PROBLEM RECOGNITION NO PROBLEMS, NO SYSTEMS ANALYSIS AND DESIGN

CASE STUDY Suppose you’re hired as a Systems Analyst to computerize the manual system of a MEDICINE SHOP. The details of the systems are as follows: 1. There are over 50,000 different medicines in the store. 2. There’s a MANUAL inventory of all the medicines. There are only 2 staff who are maintaining all the information in the store. They use index cards (small paper) for each brand of medicine for inventory (counting). 3. Everyday, there are more than 200 customers who come to buy and ask. The staff maintain a LOGBOOK to record all what they sold and the stocks.

5 FACT / DATA GATHERING TECHNIQUES 1.DOCUMENT ANALYSIS 2.OBSERVATION 3.QUESTIONNAIRES 4.INTERVIEWS 5.JOINT APPLICATION DEVELOPMENT (JAD)

5 FACT / DATA GATHERING TECHNIQUES 1.DOCUMENT ANALYSIS- means COLLECTING FORMS AND REPORTS to study the EXISTING documentations. 2.OBSERVATION- means the systems analyst should OBSERVE IN PERSON the current system procedures.

5 FACT / DATA GATHERING TECHNIQUES 3. QUESTIONNAIRES- cost effective way to survey a large number of people for facts and opinions on current procedures and possible improvements 4.INTERVIEWING- asking the staff or customers for information- TALKING PERSONALLY

5 FACT / DATA GATHERING TECHNIQUES 5. JOINT APPLICATION DEVELOPMENT (JAD)- an information gathering technique that allows the project team, users, and management to work together to identify requirements for the system. JAD is a structured process in which 10 to 20 users meet together under the direction of facilitator skilled in JAD techniques.-MEETING WITH STAFF/USERS A new form of JAD called electronic JAD or e-JAD. In e- JAD meeting room, each participant uses special software on a networked computer to send anonymous ideas and opinions to everyone else.

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STEP 2: FEASIBILITY STUDY STEP NameFeasibility Study Major Function ??? OUTPUT Feasibility Report and Risk Analysis WHO ARE INVOLVED? Systems Analyst

STEP 2: FEASIBILITY STUDY The Feasibility Study will tell the Management: 1.Whether the information System/project can be done; 2.Whether the final product will benefit the company and the users/staff; 3.What are the alternative options or solutions to the problems? “After the feasibility study, the company will decide whether to CONTINUE or DON’T CONTINUE.”

STEP 2: FEASIBILITY STUDY WHAT TO STUDY IN FEASIBILITY STUDY? 1.The current/present system including the users, policies, organization; 2.Problems with the present system; 3.What needs to be changed in the present system; 4.Other possible solutions to the problems.

3 PHASES OF FEASIBILITY STUDY 1.TECHNICAL FEASIBILITY- study of the technical side; a measure of the practicality of a specific technical solution and the availability of technical resource or expertise

3 PHASES OF FEASIBILITY STUDY 2. OPERATIONAL FEASIBILITY- is a measure of how well the solution to the problem or specific solution will work on the organization; defines the URGENCY of the problems.

3 PHASES OF FEASIBILITY STUDY 3.ECONOMIC FEASIBILITY- study of money, costs (whether the project is cost-effective) The bottom line in many projects is economic feasibility. During the early phases of the project, economic feasibility analysis amounts to little more than judging whether the possible benefits of solving the problem worthwhile.

RISK ANALYSIS As part of the economic feasibility analysis, system analyst should be prepared to carry out a risk analysis for the new system. The reason for this is that we cannot assume, with total certainty, that we will achieve the estimated benefits or incur the estimated costs. Things might turn out better that we estimate; of more concern is the fact that things might turn out far worse.

RISK ANALYSIS Management will generally want to know what the consequences are if things go wrong during the project; and they will want to know what things can go wrong. Specifically, they will want to know the conditions under which the estimated costs might be significantly higher and the conditions under which the benefits might be significantly lower than estimated.

COST-BENEFIT ANALYSIS COST BENEFIT ANALYSIS weighs the costs and benefits of a system/software. It answers the questions: 1. Is the project justified, meaning the benefits outweigh the cost? 2. Can the project be done given the cost conditions? 3. What is the minimal cost to complete the system?

COST-BENEFIT ANALYSIS 3 THINGS TO CONSIDER: 1. Hardware and software selection 2. How to convince the management to develop the system 3. Whether to rent or buy

COST-BENEFIT ANALYSIS EXAMPLES OF BENEFITS 1. Cost Reductions 2. Error Reductions 3. Increased flexibility of operation 4. Better and more accurate information

COST-BENEFIT ANALYSIS CLASSIFICATION OF BENEFITS 1. MONETARY- when money values can be calculated exactly 2. TANGIBLE (Quantified)- when benefits can be quantified, but money values can’t be calculated. 3. INTANGIBLE- when neither monetary nor tangible applies

COST-BENEFIT ANALYSIS TYPES OF COST I.PROJECT RELATED COSTS 1.Development and Purchasing Costs 1a. Salaries of the developers i.e. systems analyst, programmers, network engineers; 2a. Software and hardware costs 3a. Other facilities and equipment used while developing the system

COST-BENEFIT ANALYSIS TYPES OF COST I.PROJECT RELATED COSTS 2.Installation and Conversion Costs 2a. Cost of installing the system 2b. Training of staff 2c. File conversion cost if needed

COST-BENEFIT ANALYSIS TYPES OF COST II. OPERATIONAL COSTS (on-going) 1. Maintenance of the system 1a. Cost of Maintaining the software and hardware 1b. Cost of supplies, electricity, etc 2.Personnel 2a. Salaries of any additional staff hired

ACCOUNTING METHODS 1.PAYBACK ANALYSIS- how long will it take (usually, in years) to pay back the project, and accrued costs. 2. RETURN OF INVESTMENT ANALYSIS- compares the lifetime profitability of alternative solutions. 3.NET PRESENT VALUE ANALYSIS- determines the profitability of the new project in terms of today's money values.

ACCOUNTING METHODS 4. DISCOUNT RATE- measures the opportunity cost of investing money in other projects, rather than the information system development one. This number is company- and industry-specific.

COMPUTATIONS…. 56

END OF CLASS FOR TODAY 57