Session 1 Notes

SYSTEM
ANALYSIS AND
DESIGN
CCS 2106
RCL2
by Mr MICHAEL KAGIRI
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What are Systems :
system is simply a set of components that
interact to accomplish some purpose.
human body is a biological system
Language is another example of a system
An organization may also be viewed as a system
In todays world, there are education

systems
we also see many business systems
maintaining data is an important and essential
Page 2
activity in any business
Other Defns:
A system is a set of related components that
produces specific results.
Combination of resources or functional units

working together to accomplish a given task
{all the components are interrelated and

interdependent and cannot exist independently}
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Information System:
Information system, an integrated set of
components for collecting, storing, and processing
data and for providing information, knowledge.
Information System Is any organized system

for the collection, organization, storage and
communication of information.
Order system, bank system etc
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Components of IS:
• hardware,
• software,
• data,
• processes, and
• people
Page 5
HARDWARE:
• Tangible parts of a computer

• Hardware consists of everything in the physical
layer of the information system.
• For example, hardware can include servers,
workstations, networks, telecommunications,,
fiber-optic cables, mobile devices, scanners,
digital capture devices, and other technology-
based infrastructure
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SOFTWARE:
• Software refers to the programs that control the
hardware and produce the desired information or
results.
• Software consists of system software and
application software
• System software
• manages the hardware components, which
can include a single workstation or a global
network with many thousands of clients
• Application Software
• Consists of programs that support day-to-day
business functions and provide users with
the information they need
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Data:
• Data is the raw material that an information
system transforms into useful information.
• An information system can store data in various
locations, called tables. By linking the tables, the
system can display the specific information that
the user needs
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Data:
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Processes:
• Processes describe the tasks and business
functions that users, managers, and IT staff
members perform to achieve specific results
• For instance, the Banking systems have their

predefined rules for providing interest at different
rates for different types of accounts.
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People:
• People who have an interest in an information
system are called stakeholders.
• Stakeholders include the management group

responsible for the system, the users (sometimes
called end users) inside and outside the company
who will interact with the system, and IT staff
members, such as systems analysts,
programmers, and network administrators who
develop and support the system
Page 11
System Analysis and Design:
• system analysis is the process of investigating a
system, identifying problems, and using the
information to recommend improvements to the
system.
• System design is the process of planning a new

business system or one to replace or complement
an existing system
• Analysis specifies what the system should do.

• Design states how to accomplish the objective
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Stages to Building a system:
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USERS OF I.S:
• Very first users are the hands-on users. They
actually interact with the system. They are the
people who feed in the input data and get output
data. Like person at the booking counter of a gas
authority. This person actually sees the records
and registers requests from various customers for
gas cylinders.
• Other users are the indirect end users who do
not interact with the systems hardware and
software. However, these users benefit from the
results of these systems. These types of users
can be managers of organization using that
system
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USERS OF I.S:
• There are third types of users who have
management responsibilities for application
systems. These oversee investment in the
development or use of the system.
• Fourth types of users are senior managers.

They affects the company’s future survival and
growth, including long-term IT plans. Top
managers focus on the overall business
enterprise and use IT to set the company’s
course and direction.
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USERS OF I.S:
Page 16
TYPES OF I.S:
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TRANSACTION PROCESSING SYSTEM:
• Transaction processing (TP) systems process
data generated by day-to-day business
operations.
• Examples of TP systems include customer
order processing, accounts receivable, and
warranty claim processing
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MANAGEMENT INFOR SYSTEM:
• These systems assist lower management in
problem solving and making decisions.
• They use the results of transaction processing and
some other information also.
• It is a set of information processing functions. It
should handle queries as quickly as they arrive.
An important element of MIS system is database.
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DECISION SUPPORT SYSTEMS:
• These systems assist higher management to
make long term decisions. These type of systems
handle unstructured or semi structured decisions.
• A decision is considered unstructured if there are
no clear procedures for making the decision and if
not all the factors to be considered in the decision
can be readily identified in advance.
Page 20
SYSTEM DEVELOPMENT METHODS:
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INTRO:
• Building an I.S is like building a house
• Describe vision for the house
• Transform it to sketches/drawings
• Develop a blueprint
• Build the house
Page 22
SDLC METHODS:
Many options exist for developing information
systems,
• structured analysis,
• object-oriented (O-O) analysis,
• agile methods/Adaptive Methods,
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STRUCTURED ANALYSIS:
• Its traditional systems development technique
that is time-tested and easy to understand.
• Uses a series of phases, called the systems
development life cycle (SDLC), to plan,
analyze, design, implement, and support an
information system
• uses the SDLC to plan and manage the
systems development process.
• SDLC describes activities and functions that
all systems developers perform, regardless of
which approach they use
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STRUCTURED ANALYSIS:
The SDLC model usually includes five steps,
which are described in the following
sections:
systems planning,
systems analysis,
systems design,
systems implementation,
and systems support
Page 25
SDLC STAGES:
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PLANNING: • The systems planning phase usually begins with a
formal request to the IT department, called a
systems request, which describes problems or
desired changes in an information system or a
business process.
• A systems request can come from a top manager,
a planning team, a department head, or the IT
department itself.
• The request can be very significant or relatively
minor. A major request might involve a new
information system or the upgrading of an existing
system.
• In contrast, a minor request might ask for a new
feature or a change to the user interface
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PLANNING:
• 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 anticipated costs and
benefits and recommends a course of action
based on operational, technical, economic, and
time factors.
Page 28
ANALYSIS PHASE:
• 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.
• purpose is to build a logical model of the new

system.
• The first step is requirements modeling, where the
analyst investigates business processes and
documents what the new system must do to
satisfy users
• To understand the system, fact-finding using
techniques such as interviews, surveys, document
review, observation, and sampling is performed
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CONT’:
• The deliverable for the systems analysis phase is
the system requirements Specification document.
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DESIGN PHASE:
• The design phase decides how the system will
operate in terms of the hardware, software, and
network infrastructure that will be in place;
• The purpose of the systems design phase is to
create a physical model that will satisfy all
documented requirements for the system.
• At this stage, the user interface is designed and
necessary outputs, inputs, and processes are
identified.
• The deliverable for this phase is the system
design specification Document
Page 31
Implementation:
• the new system is constructed in this phase.
• the programs are written, tested, and documented,
and the system is installed
• The objective of the systems implementation phase
is to deliver a completely functioning and
documented information system.
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Systems Support Phase:
• In this phase, the IT staff maintains, enhances, and
protects the system.
• Maintenance changes correct errors and adapt to
changes in the environment, such as new tax rates
Page 33
SYSTEM ANALYST:
• The system analyst is the person (or persons) who

guides through the development of an information
system (The system is mainly concerned with
the management of data).
• Works closely with all project team members so

that the team develops the right system in an
effective way.
Page 34
SKILLS:
• Business knowledge: As the analyst might have
to develop any kind of a business system, he
should be familiar with the general functioning of
all kind of businesses.
• Interpersonal skills: Such skills are required at
various stages of development process for
interacting with the users and extracting the
requirements out of them. Analysts must be
excellent communicators with strong analytical
and critical thinking skills
• Problem solving skills: A system analyst should
have enough problem solving skills for defining
the alternate solutions to the system
Page 35
SKILLS:
• Technical skills: Analysts must have the technical
skills to understand the organization’s existing
technical environment, the new system’s
technology foundation, and the way in which both
can be fit into an integrated technical solution.
• Ethical: Analysts must deal fairly, honestly, and
ethically with other project team members,
managers, and system users. Analysts often deal
with confidential information or information that, if
shared with others, could cause harm (e.g.,
dissent among employees);
• Management: Analysts need to manage people
with whom they work, and they must manage the
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HIS ROLES:
• business analyst role focuses on the business
issues surrounding the system.
• This person helps to identify the business
value that the system will create,
• develops ideas for improving the business
processes, and helps design new business
processes and policies.
• requirements analyst role focuses on eliciting the
requirements from the stakeholders associated
with the new system
• infrastructure analyst role focuses on technical
issues surrounding the ways the system will
interact with the organization’s technical
infrastructure (hardware, software, networks, and
databases).
Page 37
HIS ROLES:
• change management analyst role focuses on the
people and management issues surrounding the
system installation.
• This person ensures that adequate
documentation and support are available to
users,
• provides user training on the new system,
and develops strategies to overcome
resistance to change.
• project management analyst role ensures that the
project is completed on time and within budget
and that the system delivers the expected value to
the organization
Page 38
ASSIGNMENT 1:
Identify an Organization/business within Nyeri that

is Using an Information System and document the
following:
1. The kind of system they are using
2. The users of the system
3. The tasks the system offers to the different
users
4. Users Benefits from the System
(Prepare a powerpoint presentation to present in

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Page 39
Page 40
PROJECT
IDENTIFICATION &
INITIATION:
Page 41
PROJECT IDENTIFICATION AND INITIATION:
Source
• someone in the organization
identifies a business need to build a
system
• from some kind of “pain” within the
organization
• when the organization identifies
unique and competitive ways of
using IT{upcoming tech}.
Page 42
FEASIBILITY ANALYSIS:
• Guides the organization in determining
whether to proceed with the project.
• It also identifies the important risks
associated with the project that must be
managed if the project is approved
• Include
• technical feasibility,
• economic feasibility,and
• organizational feasibility
• The results of evaluating these three
feasibility factors are combined into a
feasibility study deliverable that is
submitted to the approval committee at the
end of project initiation
Page 43
Feasibility Analysis Assessment Factors:
Page 44
Technical Feasibility:
• The extent to which the system can be
successfully designed, developed,and
installed by the IT group.
• Answers the question: “Can we build it?”
Risk Minimization
• First and foremost the users’ and analysts’
familiarity with the application.{wishareit}
• Familiarity with the technology- When a
system will use technology that has not
been used before within the organization.
• Project size- the number of people on the
development team, the length of time it will
take to complete the project, or the number
of distinct features in the system.
• The compatibility of the new system with the
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Page 45
Organizational Feasibility:
• How well the system ultimately will be
accepted by its users and incorporated into
the ongoing operations of the organization.
ASSESSING
• How well the goals of the project align with
business objectives{strategic Alignment}-E-
Learning
• Stakeholder involvement
Page 46
Imp’ Stakeholders for Organizational Feasibility:
Page 47
Economic Feasibility:
• Also called a cost–benefit analysis
• Is determined by identifying costs and
benefits associated with the system,
assigning values to them, calculating future
cash flows, and measuring the financial
worthiness of the project
• The more expensive the project, the more
rigorous and detailed the analysis should
be.
Page 48
Cash Flow Analysis and Measures:
• IT projects commonly involve an initial
investment that produces a stream of
benefits over time, along with some ongoing
support costs
• The value of the project must be measured
over time.
• Cash flows, both inflows and outflows, are
estimated over some future period
• The cash flows can be evaluated using
several techniques to judge whether the
projected benefits justify incurring the costs.
Page 49
Basic cash flow projection:
Net cash flow refers to the difference between a

company's cash inflows and outflows in a given
period
Page 50
Evaluating Projects Worth:
• Return on Investment
• Break-Even Point
• Discounted Cash Flow Technique
• Net Present Value (NPV)
Page 51
Return on Investment:
• It is a calculation that measures the average
rate of return earned on the money invested
in the project
• Divides the project’s net benefits (total
benefits total costs) by the total costs.
• A high ROI suggests that the project’s

benefits far outweigh the project’s cost
Page 52
Break-Even Point:
• Also called the payback method
• It is defined as the number of years it takes
a firm to recover its original investment in
the project from net cash flows.
Page 53
Discounted Cash Flow Technique:
• Are used to compare the present value of all
cash inflows and outflows for the project in
today’s dollar terms
• A dollar received in the future is worth less
than a dollar received today.
• {Assume a friend you gave $100 and
returned $100 after 3yrs
• Formulae
Money you have been promised to receive three, four, and five years from
now is not worth as much as money received today. Money received in
the future has to be discounted by some appropriate percentage rate—
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Page 54
Cont’:
• Using our previous illustration, $100
received in 3 years with a required rate of
return of 10% has a PV of $75.13.
• Compute the P.V
57000
Page 55
Output:
57000
Page 56
Net Present Value (NPV:
• Is the difference between the total present
value of the benefits and the total present
value of the costs.
• As long as the NPV is greater than zero, the

project is considered economically
acceptable.
Page 57
Steps to Conduct an Economic
Feasibility Analysis:
Page 58
1. Identify Costs and Benefits:
• Include the (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.
• 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
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Page 59
Cont’:
• Tangible benefits
• include revenue that the system
enables the organization to collect,
such as increased sales.
• The system may enable the
organization to avoid certain costs,
leading to another type of tangible
benefit: cost savings{reduction in
needed staff, lower salary costs.}
Page 60
Cont’:
Page 61
2. Assign Values to Costs and Benefits:
• The analyst needs to assign specific dollar
values to them.
• Best is to rely on the people who have the
best understanding of them{I.T group/
consultants}.
• consider past projects, industry reports, and
vendor information.
• How would you cost Intangible

costs/benefits?
Page 62
Complete:
Page 63
Complete:
Page 64
SOLUTION:
Page 65
END:
Page 66

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SYSTEM

Free Powerpoint Templates Page 1

human body is a biological system

Language is another example of a system

An organization may also be viewed as a system

In todays world, there are education

we also see many business systems

Combination of resources or functional units

{all the components are interrelated and

Information System Is any organized system

Order system, bank system etc

• Tangible parts of a computer

• For instance, the Banking systems have their

• Stakeholders include the management group

• System design is the process of planning a new

• Analysis specifies what the system should do.

• Fourth types of users are senior managers.

• purpose is to build a logical model of the new

• The system analyst is the person (or persons) who

• Works closely with all project team members so

Identify an Organization/business within Nyeri that

(Prepare a powerpoint presentation to present in

Net cash flow refers to the difference between a

• A high ROI suggests that the project’s

• Compute the P.V

• As long as the NPV is greater than zero, the

• How would you cost Intangible

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