Systems Development

From Planning to Implementation of an

Information System
The Systems Analyst
• A member of the IT
Department of any
organization or institution
that acts as a consultant
who investigates,
analyzes, designs,
develops, installs,
evaluates, and maintains a
company’s information
systems.
• Skills / Knowledge
Requirement:
1. Technical Knowledge
2. Communication Skills
3. Business Skills
4. Critical Thinking Skills
5. Proper Education
Systems Development
Three popular system development approaches
 Structured analysis
 Object-oriented analysis (O-O),
 Agile methods (adaptive methods)
Systems Development Life Cycle

Structured analysis uses a series of phases, called the

systems development life cycle (SDLC), to plan,
analyze, design, implement, and support an I.S.
The process makes use of a predictive approach.
Systems Development Life Cycle
SDLC is a process-centered technique because it
focuses on processes that transform data into useful
information.

A process model shows the data that flows in and out

of system processes. Visually, this is created by using a
data flow diagram (DFD) that uses various symbols
and shapes to represent data flow, processing, and
storage
Data Flow Diagram
Data flow Diagram
Systems Development Life Cycle
 Systems planning

 Learn how IT projects get started, how systems analysts evaluate

proposed project

 Determine the feasibility of the project, the reasoning behind the

proposed system development = business case
 Systems planning
The systems planning phase begins with a formal request to the IT
department, called a systems request, which describes problems or desired
changes in an information system or business process.

The purpose of this phase is to perform a preliminary investigation to

evaluate an IT-related business opportunity or problem.

A key part of the preliminary investigation is a feasibility study that reviews

operational, technical, economic, and time factors.
 Systems planning – Preliminary Investigation
An inquiry to whether there is a sufficient evidences for a system to be
proposed

• Company Selection – an Existing Company

• Problem Assessment – do the problems post great loss and missed

opportunities for the company
 Systems Planning- Preliminary Investigation
Problem Assessment –do the problems post great loss and missed opportunities for
the company? What are the critical business issues?

•Main Reasons for Systems Proposals/Projects?

 Improved services
 Support for new products and services
 Better performance
 More information
 Reduced cost
 Stronger controls (encryption, biometrics)
 Systems Planning- Preliminary Investigation
• SWOT Analysis:
• What are the benefits to the entire
company? Its users? Internal? External? Will
this magnify the strengths and eliminate
the weaknesses of the company?
Factors that affect Systems Proposal:
• Internal factors
• strategic plans, higher management,
client satisfaction, existing systems and
processes
• External factors
• customers, competition, regulatory
agencies, technology, environment,
suppliers
Factors that Affect Systems Projects
SWOT ANALYSIS
 Systems Planning- Preliminary Investigation
Company Assessment –research on facts regarding the entire company
and their nature

 Mission Statement  Stakeholders

 Vision  Organizational Hierarchy
 Goals  Business Rules
 Objectives  Business Processes
Systems Planning- Preliminary Investigation
Determine the feasibility of building a case for the selected company based on
several preliminary investigations

•Look into the future: how could the company survive or continue its operations
without the proposed system?

•New industries, products, and services emerging from amazing advances in

information technology, customers who expect world-class IT support, a surge in
Internet-based commerce, and a global business environment that is dynamic
and incredibly challenging
Preliminary Investigation
Upon close examination and investigation, a business case should be
developed

•The business case should be comprehensive, yet easy to

understand

•it should describe the project clearly, provide the justification to

proceed, and estimate the project’s financial impact
Feasibility
 Systems Planning- Feasibility Analysis

The process of confirming that a strategy, plan or design is

possible and makes sense.

This can be used to validate assumptions, constraints, decisions,

approaches and business cases.
 Feasibility
• Describes how easy or difficult it
is to do something
• Taking into consideration
relevant factors for the
implementation of the project
proposal
• Types of feasibility
Schedule (time)
Operational (business)
Technical (technology)
Economic (monetary)
 Schedule Feasibility
The probability of a project to be completed within its scheduled time limits
•If a project has a high probability to be completed on-time, then its schedule
feasibility is appraised as high
•May include the following methods or measurements:
Project Estimation
Gantt and PERT Chart
CPM (Critical Path Method)
Change Management
 Schedule Feasibility
This asks whether a project can be implemented in an acceptable time frame

• Questions:

• What conditions must be satisfied during the development of the system?

• Will an accelerated schedule pose any risks? If so, are the risks acceptable?
Schedule Feasibility- Gantt Chart
Program Evaluation Review Technique (PERT)
Operational feasibility
Operational feasibility means that a proposed system will be used effectively
after it has been developed.

• Questions:
• Will the new system result in a workforce reduction?
• Will performance decline in any way?
• Will an overall gain to the organization outweigh individual losses?
• Will customers experience adverse effects in any way?
• Will any risk to the company’s image or goodwill result?
Operational Feasibility
Gain an understanding of whether the proposed system will likely solve the
business problems, or take advantage of the opportunities or not.
•Assess the following areas:
Project Size –number of users
PO –inputs, processes, outputs
Management support
Environment assessment –are the users going to change
Technical Feasibility
Technical feasibility refers to technical resources needed to develop, purchase,
install, or operate the system

•Includes evaluating the ability of computer hardware and software to handle

workloads adequately.

List all the specifications of all hardware and software currently in use by the
company and the proposed ones as well
Technical Feasibility
Questions:

• Does the company have the necessary hardware, software, and network
resources? If not, can those resources be acquired without difficulty?

• Does the company have the needed technical expertise? If not, can it be
acquired?

• Does the proposed platform have sufficient capacity for future needs? If
not, can it be expanded?
 Economic Feasibility
Economic feasibility means that the projected benefits of the proposed system
outweigh the estimated costs (total cost of ownership(TCO).

• People, including IT staff and training

• Hardware, equipment, and facility costs.
• Software.
• Licenses and fees.
• Consulting expenses.
• Facility costs
• The estimated cost o not developing the system or postponing the system
 Economic Feasibility
Method for evaluating the effectiveness of a new system
•Procedure is to determine the benefits and savings that are expected from a
candidate system and compare them with costs.
•Compute for the total costs incurred affected by the current system (hardware,
software, utilities, overhead, operating costs, …) and compare with the costs
incurred affected by the proposed system
•Indicate proper sources of monetary values.
•Calculate for the Payback Period (PP) and the Return on Investment (ROI)
Economic Feasibility
Payback Period (PP) is the amount of time required for an
investment to generate sufficient cash flows to recover initial cost.

Return on Investment (ROI) is a percentage rate that measures

profitability by comparing the total net benefits received from a
project to the total costs. It shows investors how efficiently each
dollar invested in a project is at producing a profit.
Economic Feasibility
RETURN ON INVESTMENT (ROI) = ( Net Profit / Total Investment ) * 100%

◦Net profit should be determined through communication with the company

(Estimated sales/revenue –Operating Cost)
◦Total Investment should be determined through the economic feasibility

You are a house flipper. You purchased a house at the courthouse auction for $75,000
and spent $35,000 in renovations. After sales, expenses, and commission, you netted
$160,000 on the sale of the renovated house. What is the ROI?
 Economic Feasibility
PAYBACK PERIOD = determines the amount of time required for an investment to
generate sufficient cash flows to recover initial cost.

Averaging method: ABC International expends $100,000 for a new machine, with all
funds paid out when the machine is acquired. Over each of the next five years, the
machine is expected to require $10,000 of annual maintenance costs, and will
generate $50,000 of payments from customers. The net annual positive cash flows
are therefore expected to be $40,000. When the $100,000 initial cash payment is
divided by the $40,000 annual cash inflow, the result is a payback period of 2.5
years.
 Economic Feasibility (Payback Period)
ABC International expends $100,000 for a new machine, with all funds paid out when the machine is
acquired. . Over each of the next five years, the machine is expected to require $10,000 of annual
maintenance costs. Subtraction method: Take the same scenario, except that the $200,000 of total
positive cash flows are spread out as follows:

Year 1= $0, Year 2 = $20,000; Year 3 = $30,000; Year 4 = $50,000; Year 5 = $100,000

In this case, we must subtract the expected cash inflows from the $100,000 initial expenditure for the
first four years before completing the payback interval, because cash flows are delayed to such a
large extent.

Thus, the averaging method reveals a payback of 2.5 years, while the subtraction method shows a
payback of 4.0 years.
Example
1. Averaging method

Eselyu Corp. is planning to implement a new system by acquiring both

new hardware and software packages. The cost of investment is
estimated to be at Php 400,000. Annual maintenance and licensing
costs are estimated to be at Php 35,000 but the estimated annual
benefits is at Php 115,000. How long would it take for Eselyu Corp. to
recover their investment?
 Example
Computing Payback Period

1. Averaging method

Annual positive cash flow: 115,000 − 35,000 = Php 80,000.

Investment 400,000
Payback period: = = 5.
Annual Positive Cash Flow 80,000

Payback Period is at 5 years. That is, it would take 5 years before Eselyu Corp. recovers its investment.

In other words, Eselyu Corp will start taking profits from its investment after 5 years.
Example
Computing Payback Period

2. Subtraction Method

Eselyu Corp. is planning to implement a new system by acquiring both new

hardware and software packages. The cost of investment is estimated to be at Php
400,000. Earnings from the investment starts at Php 55,000 and increases by Php
30,000 every year. When will Eselyu Corp. recover its investment?
Computing Payback Period
2. Subtraction Method

Payback Period is at 4 years. That is, it would take 4 years before Eselyu Corp.
recovers its investment. In other words, Eselyu Corp will start taking profits from its
investment after 4 years.
Computing Return on Investment
Net Profit
Return on Investment: × 100%
Total investment

A company’s newly acquired information system costed them about

Php 1,250,000. At the end of the information system’s life cycle, the
company experienced a total revenue of Php 1,950,000. What is the
return on investment?
Computing Return on Investment
Net profit: Revenue − Cost = 1,950,000 − 1,250,000

Profit = 700,000

700,000
Return on Investment: × 100% = 56%
1,250,000
Feasibility
Companies usually have a minimum ROI goal for a particular project. In the
feasibility stage of a project development, the expected ROI is identified.

The actual ROI can only be determined after the lapse of the use of the project
when approved for implementation.

ROI’s are also used to compare which among two proposed projects is more
beneficial for the company.
FEASIBILITY
Tangible Benefits
Benefits that can be
measured in terms of a
monetary denomination
resulting from a decrease in
expenses, an increase in
revenues, or both.
Intangible Benefits
Advantages that are
difficult to measure in terms
of money but are
important to the company.
 Evaluating Feasibility
Projects where management has a choice in implementing them are called
discretionary projects

•Projects where no choice exists are called nondiscretionary projects

•Identify and weed out systems requests that are not feasible.

•Even if the request is feasible, it might not be necessary.

•Feasibility analysis is an ongoing task that must be performed throughout the

systems development process
Initial Study Overviews(Steps in Prelim. Inves.)
1. Understand the Problem or Opportunity

2. Define the Project Scope and Constraints

3. Perform Fact-Finding

4. Evaluate Feasibility

5. Estimate Project Development Time and Cost

6. Present Results and Recommendations to the Management

Fact-Finding
Fact-finding:

Analyze organizational charts

Conduct Interviews

Review Documentation

Observe operations

Conduct a user survey

Preliminary Investigation model
 Initial Study Overview

Understand the Problem or Opportunity

o Ishikawa Diagram

o Pareto Chart

o XY Chart ( Scatter Diagram )

 Ishikawa Diagram
A popular technique for investigating causes and effects is called a fishbone
diagram, or Ishikawa diagram,.
A fishbone diagram is an analysis tool that represents the possible causes of a
problem as a graphical outline.

When using a fishbone diagram, an analyst first states the problem and draws a
main bone with sub-bones that represent possible causes of the problem.
Pareto Chart
 When analyzing data about the frequency of problems or causes in a process

 When there are many problems or causes and you want to focus on the
most significant

 When analyzing broad causes by looking at their specific components

 When communicating with others about your data

Pareto Chart
Initial Study Overview
Define the Project Scope and Constraints
Project Scope
Project Creep
Constraints
Present versus future
Internal versus External
Mandatory versus Desirable
 Initial Study Overview
Perform Fact-Finding
◦Analyze company’s processes and operations
◦Conduct Interviews
Determine the people to interview
Establish objectives for the interview
Develop interview questions
Prepare for the interview
Conduct the interview
Document the interview
Evaluate the interview
•Review documentation
•Observe
•Survey
Initial Study Overview
Evaluate Feasibility

◦Evaluate based on the evaluation analysis provided in the previous

section
Initial Study Overview
Estimate Project Development Time and Cost

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 information?
◦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?

◦
 Initial Study Overview
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?

◦You should provide an estimate for the overall project, so managers can
understand the full cost impact and timetable
 Initial Study Overview
Present Results and Recommendations to the Management

◦The final task in the preliminary investigation is to prepare a report to

management

◦The format of the preliminary investigation report varies from one company to
another

◦Follow the guidelines provided

 Factors that affect Priority
When assessing a project’s priority, a systems analyst should consider
the following:
• Will the proposed system reduce costs? Where? When? How? How much?

• Will the system increase revenue for the company? Where? When? How? How
much?
• Will the systems project result in more information or produce better results?
How? Are the results measurable?
• Will the system serve customers better?
• 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?
Systems Development Life Cycle
System Planning

During the systems planning phase:

 an analyst reviews the business case, which is the
basis, or reason, for a proposed system.

A business case should describe the project clearly, provide

the justification to proceed, and estimate the project’s
financial impact.
Systems Development Life Cycle
Systems Analysis
The deliverable for this phase is the system requirements
document.

Overall objective of the systems analysis phase

 understand the proposed project,
 ensure that it will support business requirements, and
 build a solid foundation for system development.

In this phase, you use models and other documentation

tools to visualize and describe the proposed system.
System Analysis
Has 4 Phases:
1. Requirements
Modelling
2. Data and Process
Modelling
3. Object Modelling
4. Development
Strategies
Systems analysis
The purpose of the systems analysis phase is to build a logical
model of the new system.

The first step is requirements modeling, where you

investigate business processes and document what the new
system must do to satisfy users.

To understand the system: interviews, surveys, and

observations are conducted which will be used to build
business models.
Requirements Modelling
Perform fact-finding procedures to describe the current system and identify the
requirements for the new system. These requirements are:
1. Inputs
2. Processes
3. Outputs
4. Performance
5. Security
 Requirements Modelling
Inputs refer to necessary data that enters the system, either manually or in an
automated manner.
Outputs refer to electronic or printed information produced by the system
Processes refer to the logical rules that are applied to transform the data into
meaningful information.
Performance refers to system characteristics such as speed, volume, capacity,
availability, and reliability
Security refers to hardware, software, and procedural controls that safeguard and
protect the system and its data from internal or external threats.
Requirement Modelling - Inputs

 The department head must enter overtime hours on a separate

screen.
 Each input form must include date, time, product code, customer
number, and quantity.

 Manufacturing employees must swipe their ID cards into online data

collection terminals that record labor costs and calculate production
efficiency.
Requirement Modelling - Processes

 As the final step in year-end processing, the payroll system must

update employee salaries, bonuses, and benefits and produce tax
data required by the IRS.

 The warehouse distribution system must analyze daily orders and

create a routing pattern for delivery trucks that maximizes efficiency
and reduces unnecessary mileage.
 Requirement Modelling - Outputs
The Web site must report online volume documents statistics every four hours, and
hourly during peak periods.

The inventory system must produce a daily report showing the part number,
description, quantity on hand, quantity allocated, quantity available, and unit cost of
all sorted by part number.

The sales tracking system must produce a daily fast-moving-item report, listing all
products that exceed the forecasted sales volume grouped by style, color, size, and
reorder status.
 The I-P-O
Consider: A TPS (POS) of a grocery store.

Input Process Output

• Items being • Find price of • Receipt with

bought. items scanned. all transaction
• Compute tax details (total
and final price. price, list of
items bought).
Performance / Security
Consider: A TPS (POS) of a grocery store.

• Allows 10 different machines to operate and

Performance acquire information from database.

• Only registered employees can access system.

• Items may only be changed / voided by an authorized
Security employee with higher security details.
• Discounts granted for PWDs / S.C. upon verification by
authorized employee.
Requirement Modelling-Performance
 The system must be operational seven days a week, 365 days a year.

 The accounts receivable system must prepare customer statements by the

third business day of the following month.

 The student records system must produce class lists within five hours after the
end of registration.

 The online inventory control system must flag all low-stock items within one
hour after the quantity falls below a predetermined minimum.
Requirement Modelling-Security/Control
 The system must provide log-on security at the operating system level and at
the application level

 An employee record must be added, changed, or deleted only by a member

of the human resources department
System Analysis Skills and Techniques
Systems Analysis Skills
 Analytical skills
 Interpersonal skills
Team-Oriented Methods and Techniques
 Joint application development (JAD)
 Rapid application development (RAD)
Systems Analysis: Techniques
Joint Application Development
• a user-oriented technique for
fact-finding and requirements
modelling
• it is not linked to a specific
development methodology,
• systems developers use JAD
whenever group input and
interaction are desired.
Rapid Application Development
group-based systems
development where the
stages of the SDLC is
condensed into a single
development process.
• users are involved every step of
the way
• build while planning
• the output is a new
Information System.
RAD Phases and Activities
To help understand system requirements, analysts use

 Functional Decomposition Diagram

 Business Process models

 Data flow diagrams

 Unified Modeling Language Diagrams

Data and Process Modelling

• Functional Decomposition Diagram (FDD)

• Topdown representation of a function or process.
• Shows business functions and broken down into lower level
operations.
Data and Process Modelling (FDD)
Data and Process Modelling

• Business Process Model (BPM)

• Use of various shapes and symbols to represent events,
processes, and workflows. (Flowcharts).
• Different layers for entities.
Data and Process Modelling (BPM)
Data and Process Modelling

• Data Flow Diagram (DFD)

• Graphical representation of the flow of data in a business
information system.
• A data flow diagrams (DFD) uses various symbols to show how the
system transforms input data into useful information
Data Flow Diagram

• A data flow diagram (DFD) shows how data moves through an

information system but does not show program logic or processing
steps

• DFD’s show what the system does, not how it does it.
Data and Process Modelling (DFD)
Data Process Modelling
Unified Modelling Language
widely used method of visualizing and documenting software systems
Design.
 Use Case Diagram
 Sequence Diagram
Data and Process Modelling

CASE Diagrams
• Visual representation of the interaction between users
and the information system.
Data and Process Modelling (CASE)
Data and Process Modelling

• Sequence Diagrams
• Shows the timing of interactions between objects as they occur.
• A systems analyst might use a sequence diagram to show all
possible outcomes, or focus on a single scenario.
Data and Process Modelling (Sequence Diagrams )
 Future Growth, Costs, and Benefits
In addition to the system requirements, systems
analysts must consider
• scalability, which determines how a system will
handle future growth and demands, and the
• total cost of ownership, which includes all future
operational and support costs including indirect costs.
Fact-Finding techniques

Data Gathering for Systems Analysis

Fact-finding involves answers to : who, what, where, when

and why
Who, what, where, when, and why?
Overview
• Identify the information you need.
• Ask questions:
• What do I need?
• From who can I get what I need?
• Where can I get it?
• How can I get the information and why do I need it?
• Determine the difference between asking what is being done
and what could or should be done
Fact Finding Techniques
1. Interviews

2. Observation

3. Document Review

4. Questionnaires and Surveys

5. Research

6. Sampling
Interviews
1. Determine the people to interview
2. Establish objectives for the interview
3. Develop interview questions
 Create a standard list of interview questions.
 Avoid leading questions.
4. Prepare for the interview
 Interview is an important meeting, not just a casual chat and limit it to
no more than one hour.
 Send a list of topics for preparation.
 Interviews
5. Conduct the interview
 Develop a specific plan for the meeting
 Begin by introducing yourself, describing the project.
 Allow the person enough time to think about the question
6. Document the interview
 Note taking should be kept to a minimum
 Record the information quickly
 Send memo expressing appreciation
7. Evaluate the Interview
 Observation & Document Review
Observation
 Seeing the system in action gives you a better understanding of the system
procedures.
 Hawthorne Effect.
Document Review
 Data collection method for evaluation
 Includes a basic overview of documents
 Identify when to use the proposed information system, how it affects the system and
the business processes.
 Identifies advantages and disadvantages
Systems Development Life Cycle
Data and Process Modelling
Describe data and process modeling concepts and tools, including
data flow diagrams, a data dictionary, and process descriptions

Describe the symbols used in data flow diagrams and explain the
rules for their use.

Draw data flow diagrams in a sequence, from general to specific

Explain how to level and balance a set of data flow diagrams.

 Data and Process Modeling Tools
Systems analysts use many graphical techniques to describe an
information system

•A data flow diagrams (DFD) uses various symbols to show how the
system transforms input data into useful information
Data Flow Diagram
A data flow diagram (DFD) shows how data moves through an
information system but does not show program logic or
processing steps

•A set of DFDs provides a logical model that shows what the

system does, not how it does it
Data Flow Diagram Symbols

• Gane and Sarson Symbols

• Yourdon Symbols
 Data Flow Diagram Symbols –Process
A process shows a transformation or manipulation of data flows within the system.

Receives input data and produces output that has a different content, form, or both

• Contain the business logic, also called business rules that transforms data and produce
the required results.

• A process symbol is referred to as a black box

•The symbol contains two descriptive elements:

 (An identification number appears in the top part to show the process number)
 A descriptive title is placed in the center of the box.
This should be a simple imperative sentence with a specific verb followed by a noun,
for example 'maintain customer records' or 'find driver'
Examples of Process Name

APPLY RENT PAYMENT,

CALCULATE COMMISSION,

ASSIGN FINAL GRADE,

VERIFY ORDER

FILL ORDER.
Data Flow Diagram –Data Flow
A data flow shows the flow of information from its source to its destination.
•A data flow is represented by a line, with arrowheads showing the direction of
flow.
• Information always flows to or from a process and may be written or
electronic.
•Each data flow may be referenced by the processes or data stores at its head
and tail, or by a description of its contents.
•Names of data flows are in noun format
Examples of Data Flow names
DEPOSIT, INVOICE PAYMENT,

STUDENT GRADE,

ORDER

COMMISSION.

GRADING PARAMETERS,
Errors in DFD’s
1. Spontaneous generation. A process produce output without
any input.

2. Black hole. A processes take in input but has no output.

3. Gray hole. A process that has at least one input and one output,
but the input is insufficient to generate the output.
Errors in DFD’s

• Spontaneous Generation

• Black Hole

• Gray hole
Data Store and Entities
A data store is a holding place for information within the system.
 used in a DFD to represent data that the system stores because
one or more processes need to use the data at a later time.

The logic is that there are data that is needed in future processes.

A data store name is a plural name consisting of a Noun and

Adjective or collaborative noun
Data Flow Diagram - Entity
An external entity is a source or destination of a data flow outside
the boundaries of a system.

The symbol for an entity is a rectangle.

A DFD shows only external entities that provide data to the system
or receive output from the system.
Data Flow Diagram - Entity
• DFD entities also are called terminators, because they
are data origins or final destinations.
• Systems analysts call an entity that supplies data to
the system a source, and an entity that receives data
from the system a sink.
• An entity name is the singular form of a department,
outside organization, other information system, or
person.
• Each entity must be connected to a process by a data
flow.
Rules in Data FLow
• 1. An entity cannot
provide data to another
entity without being
processed.
Rules in Data FLow
• 2. Data cannot move
directly from an entity to a
data store without being
processed.
Rules in Data FLow
3. Data cannot move
directly from a data store
without being processed.
Rules in Data FLow
4. Data cannot move
directly from a data store to
another data store without
being processed.
customer receipt payment item ID issue receipt
lookup price prices receipt amount due identify item
item price item info compute total item w/ price
 Systems Design
The purpose of the systems design phase is to create a
physical model that will satisfy all documented requirements
for the system.

Develop a design of the user interface and identify necessary

outputs, inputs, and processes.

During the systems design phase, you also determine the

application architecture, which programmers will use to
transform the logical design into program modules and code.