CA PROFESSIONAL LEVEL

LECTURE-07 & 08
CHAPTER-5: DEVELOPING BUSINESS/IT SOLUTION

5.1: What is System, Information System and Business System?

System is an interrelated set of business procedures used within one business unit working together for
a purpose.

Information System turns data into information. It includes:

- Software
- Hardware
- Data
- Humanware
- Documentation and policies.

A business system is designed to connect all of an organization’s intricate parts and

interrelated steps to work together for the achievement of the business strategy.

5.2: Why Implement a Business System?

There are several reasons to implement a business system.

Improving Top-Line Performance: Part of the business system is the development and
implementation of strategy creation, business processes and strategic planning throughout
your organization. Those foundational elements lead to a much more insightful way to
investigate and grow top-line revenue. In short, a business system takes care of your future. It
ensures you meet your customers’ expectations and improve your brand, which are key to
growing a healthy business.

Meeting Customer’s Expectations: If you use a systematic approach, your organization will
analyze, measure, compare and test all the possibilities of what your customers want and don’t
want. You will have constant information on areas that need to be improved and, even more
importantly, you will begin to understand the unmet needs of customers. A business system is

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key to improving the brand that the organization projects to your community, including
customers, employees and suppliers.

Consistent Results: Whether we are considering safety, quality or getting the job done in a
timely manner, a business system is designed to give you effective, efficient and repeatable
results. In short, the business system gives you a “process to fix your processes.”

Employee Engagement: The goal of the system is to enable proper education and opportunities
to all employees so they can complete their work more efficiently and effectively. We also seek
to harness their ideas and creativity and, in the process, increase their personal engagement.
Additionally, having the system in place allows you to quickly integrate new-hires, and makes it
easy for them to see their role within the organization and bring forth new ideas.

Reduce Cost and Increase Profits: It has been proven time and again that the implementation
of a sound business system helps reduce costs, but so will many things. A business system is
intended to reduce costs without taking the shortcuts that often lead to an erosion of
profitability due to the necessity to lower quality expectations or service levels.

5.3: Business Information System Development Applying the System Approach

5.3.1: What is System Approach?

System Approach is a Problem solving technique and the interrelated activities in System Approach are

– Recognize and define a problem or opportunity using systems thinking

– Develop and evaluate alternative system solutions

– Select the solution that best meets your requirements

– Design the selected system solution

– Implement and evaluate the success of the system

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5.3.2: What is System Thinking?

System Thinking is seeing the forest and the trees in any situation

– Seeing interrelationships among systems

rather than linear cause-and-effect chains

– Seeing processes of change among systems

rather than discrete snapshots of change

• Seeing the system in any situation

– Find the input, processing, output, feedback

and control components

5.3.3: Systems Analysis and Design

System Analysis and Design can be performed in different approaches. But following two approaches
are most effective:

- Object oriented analysis and design

- System Development Life Cycle (SDLC)

Systems Analysis and design involved:

- Identification of business problems

- Design
- Implementation

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5.3.4: Systems Development Lifecycle (SDLC)

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5.3.4.1: System Investigation:
It is the first step of System Development Life Cycle. During this step following activities are done:

– Consider multiple proposals

– Preliminary feasibility study

• Information needs of prospective users

• Resource requirements

• Costs

• Benefits

• Legal environment

– Feasibility study

Types of Feasibility Studies

i. Operational Feasibility

– Fix the problem, fit the organization

ii. Economic Feasibility

– Cost/Benefit Analysis

iii. Technical Feasibility

– Components and time available

iv. Human Factors Feasibility

– Right people and roles available

v. Legal/Political Feasibility

– Government, patent, or license restrictions

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5.3.4.2: System Analysis:
System Analysis produces the functional requirements. Such requirements are used as the basis for the
design of the new system. During this steps following activities are conducted:

• In-depth study of

– Information needs

• Company

• End users

• Business stakeholders

– Existing system

• Activities, resources, and products

Types of Analysis
1. Organizational Analysis

– Structure, people, activities

2. Present System Analysis

– Hardware, software, network, input, output, processing

3. Logical Analysis

– What the current system does

– Not concerned with how it works

Functional Requirements

It gives the output of what needs to be done, but not how to be done. It is one of the most difficult
steps. It determines the followings:

• what type of information each business function requires

• the information processing capabilities required for each system activity

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5.3.4.3: System Design:
System Design focuses on three areas:

1. User Interface Design – screen, from, report and dialog design.

2. Data Design – Data element structure design
3. Process Design – Program and Procedure design.

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Prototyping Life Cycle

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User Interface Design
It supports interactions between end users and computer-based applications

– Get help from end-users

– Designers create attractive and efficient forms

– Frequently a prototyping process

– Produces detailed design specifications

System Specification
Components of formal design

– User interface methods and products

– Database structures

– Processing procedures

– Control procedures

Examples of System Specifications

– User interface specifications

– Database specifications

– Software specifications

– Hardware and network specifications

– Personnel specifications

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End User Development

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5.3.4.4: System Implementation:

Project Management
Project management is the practice of initiating, planning, executing, controlling, and closing
the work of a team to achieve specific goals and meet specific success criteria at the specified time.
A project is a temporary endeavor designed to produce a unique product, service or result with a
defined beginning and end (usually time-constrained, and often constrained by funding or staffing)
undertaken to meet unique goals and objectives, typically to bring about beneficial change or added
value. The temporary nature of projects stands in contrast with business as usual (or operations), which
are repetitive, permanent, or semi-permanent functional activities to produce products or services. In
practice, the management of such distinct production approaches requires the development of distinct
technical skills and management strategies.

Every project has

- A set of activities with a clear beginning and end
- Goals
- Objectives
- Tasks
- Limitations or constraints
- A series of steps or phases
Managing a project effectively requires
- Process
- Tools
- Techniques

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Phases of Project Management

Some of the important activities of Implementation:

• Testing
• Data conversion
• Documentation
• Training

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5.3.4.5: System Maintenance:

• System Maintenance
– Corrective: fix bugs and logical errors
– Adaptive: add new functionality
– Perfective: improve performance
– Preventive: reduce chances of failure
• Post Implementation Review
– Correct Errors
– Periodic review/audit

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