L

ECTURE 13

Introduction to Systems Development and Systems Analysis

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INTRODUCTION
• As the environment, technology, and competition change, an information system must continually undergo changes. • These changes range from minor adjustments to major overhauls. • Occasionally, the old system is scrapped and replaced.

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INTRODUCTION
• Companies change their systems for a variety of reasons:
– – – – – – – – – To respond to changes in user needs or business needs. To take advantage of or respond to technology changes. To accommodate improvements in their business process. To gain a competitive advantage and/or lower costs. To increase productivity. To accommodate growth. To accommodate downsizing or distribute decision making To integrate incompatible systems. To replace a system that is aged and unstable.

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INTRODUCTION
• Developing quality, error-free software is difficult, expensive, and time-consuming. • Projects tend to deliver less than expected and consume more time and money. • A KPMG survey found that 35% of all major information systems projects were classified as runaways— hopelessly incomplete and over budget.
– Major cause of runaways: Skimping on systems development processes.

• Omitting basic systems development steps becomes tempting but may lead to disaster as developers create well-structured systems that fail to meet user needs or solve business problems.
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INTRODUCTION
• This chapter discusses five topics:
– Systems development life cycle – Planning activities during the systems development life cycle – Feasibility analysis – Behavioral aspects of change – Systems analysis

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SYSTEMS DEVELOPMENT LIFE CYCLE
• Whether systems changes are major or minor, most companies go through a systems development life cycle. • In this section, we discuss the steps in the cycle and the people involved.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may need more or better information. • Systems analysis is the first step. It includes:
– Initial investigation
 Involves gathering the information needed to buy or develop a new system and determining whether it is a priority.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may need more or better information. • Systems analysis is the first step. It includes:
– Initial investigation – Systems survey
 If the system is a priority, survey the existing system to define the nature and scope of the project and identify the strengths and weaknesses of the system.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may need more or better information. • Systems analysis is the first step. It includes:
– Initial investigation – Systems survey – Feasibility study
 Involves an in-depth study of the proposed system to determine whether it’s feasible.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may need more or better information. • Systems analysis is the first step. It includes:
– – – – Initial investigation Systems survey Feasibility study Determination of information needs and system requirements
 Involves finding out and documenting what users and management need.  This is the most important aspect of systems analysis.
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SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may need more or better information. • Systems analysis is the first step. It includes:
– – – – Initial investigation Systems survey Involves preparation of a report  Feasibility study summarizing the systems analysis work.  This report needs and system Determination of informationis submitted to the information systems steering committee. requirements – Delivery of systems requirements

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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• In the conceptual design phase, the company decides how to meet user needs. • Tasks in this phase include:
– Identify and evaluate design alternatives
 Possibilities include:
 Buying software  Developing in-house  Outsourcing

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SYSTEMS DEVELOPMENT LIFE CYCLE
• In the conceptual design phase, the company decides how to meet user needs. • Tasks in this phase include:
– Identify and evaluate design alternatives – Develop design specifications
 Involves writing up details of what the system is to accomplish and how it is to be controlled and developed.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• In the conceptual design phase, the company decides how to meet user needs. • Tasks in this phase include:
– Identify and evaluate design alternatives – Develop design specifications – Deliver conceptual design requirements
 These requirements will be forwarded to the information systems steering committee.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• In the physical design phase, the broad, useroriented requirements of the conceptual design are translated into detailed specifications that can be used by programmers to code the programs.
• Tasks include:
– – – – – Design outputs, database, and inputs Develop programs Develop procedures Design controls Deliver developed system
• Goes to information systems steering committee
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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• This is the capstone phase during which everything comes together. • Tasks include:
– Develop an implementation and conversion plan.
• Needed because of the complexity and importance of this phase.

– Install any new hardware and software. – Train personnel.
• New employees may need to be hired and trained or existing employees relocated.

– – – –

Test the system and make any needed modifications. Complete the documentation. Convert from the old to the new system. Deliver operational system.
• Send the final report to the IS steering committee.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:
– Systems analysis – Conceptual design – Physical design – Implementation and conversion – Operation and maintenance

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SYSTEMS DEVELOPMENT LIFE CYCLE
• Once the system is up and running, operations and monitoring continue. • Tasks include:
– – – – – Fine-tune and do post-implementation review. Operate the system. Periodically, review and modify the system. Do ongoing maintenance. Deliver improved system.

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SYSTEMS DEVELOPMENT LIFE CYCLE
• Eventually, a major modification or system replacement is necessary, and the systems development life cycle (SDLC) will start over. • In addition to the preceding five phases, three activities are performed throughout the life cycle:
– Planning. – Managing behavioral reactions to change. – Assessing ongoing feasibility.

• These three activities will be discussed in this chapter.  Additionally, the first phase in the SDLC, systems analysis, will be discussed in more detail.
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THE PLAYERS
 Many people are involved in developing and successfully implementing an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• Top management’s role in systems development is to:
– Provide support and encouragement a clear signal that user involvement is important. – Help align the systems with corporate strategies. – Establish system goals and objectives. – Review IS department performance and leadership. – Establish policies for project selection and organizational structure. – Participate in important systems decisions.

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THE PLAYERS
• User management needs to:
– Determine information requirements for departmental projects. – Assist systems analysts with project cost-benefit estimates. – Assign key staff members to development projects. – Allocate funds.

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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• Accountants also play an important role in systems development:
– As AIS users, they must determine their information needs and systems requirements and communicate them to system developers. – As members of project development teams or steering committees, they help management in the development process. – They are also active in:
• Designing system controls and monitoring and testing these controls. • Ensuring the system is easy to audit.

– Controls and ―auditability‖ need to be built in early to minimize costs and inefficiencies later.
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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• The information systems steering committee is an executive-level committee whose duty is to plan and oversee the IS function.
– Consists of high level management, such as:
• Controller • IS Manager • User department managers

– Sets policies to govern the AIS and assure topmanagement participation, guidance, and control. – Attempts to encourage goal congruence and reduce goal conflict.

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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• The project development team includes systems specialists, managers, accountants, auditors, and users whose responsibility is to guide development. • Their job:
– – – – Plan each project. Monitor to ensure timely and cost-effective completion. Ensure the human element is considered. Communicate project status to top management and steering committee. – Communicate and meet with users to:
• Consider ideas • Discuss progress • Eliminate surprises

– The team approach produces more effective results and better user acceptance.
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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• Systems analysts study existing systems, design new ones, and prepare specifications that are used by programmers.
– They interact with technical personnel and users to bridge the gap. – They are responsible for ensuring the system meets user needs.

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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• Computer programmers write the computer programs, using the specs developed by the systems analysts. • They also modify and maintaining existing programs.

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THE PLAYERS
 Many people are involved in developing and successfully implement an AIS, including:
       Top management Accountants The information systems steering committee The project development team Systems analysts Computer programmers External players

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THE PLAYERS
• External players include:
– Customers – Vendors – Auditors – Governmental entities

• Their needs must also be met in systems development.

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PLANNING SYSTEMS DEVELOPMENT
• Several activities must be performed at various times throughout the SDLC. • One of these activities is planning. • The organization should have plans for:
– The long range. – Each systems development project. – Each phase of each systems development project.

• We’ll discuss these plans and a number of techniques to develop them.

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PLANNING SYSTEMS DEVELOPMENT
• We’ve all experienced the disasters that occur when we fail to plan. • When you got it home, you realized it wasn’t compatible with your existing printer and scanner. • Furthermore, it wasn’t equipped for broadband Internet access and you had been hoping to switch to broadband. • By the time you spend the money and buy the parts to equip the computer to do what you want it to do, you find that you could have bought a leading-edge computer for less money. • Suppose you bought a personal computer on impulse without thinking about what you wanted to do with it.
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PLANNING SYSTEMS DEVELOPMENT
• Systems development planning is an important step for the following key reasons:
– Consistency with the organization’s strategic plan. – Efficiency achieved through coordination of the subsystems. – Cutting edge technology and techniques. – Lower costs due to lack of duplication, wasted effort, time overruns, and cost overruns. – Adaptability for future changes.

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PLANNING SYSTEMS DEVELOPMENT
 When a system is poorly planned, a company must often return to a prior phase and correct errors and design flaws.  These returns are costly and result in delays, frustration, and low morale.

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PLANNING SYSTEMS DEVELOPMENT
 Two types of systems development plans are needed:
- Individual project plans developed by the project teams. - A master plan developed by the IS steering committee.

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PLANNING SYSTEMS DEVELOPMENT
 Two types of systems development plans are needed:
- Individual project plans developed by the project teams. - A master plan developed by the IS steering committee.

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PLANNING SYSTEMS DEVELOPMENT
• Individual project plans contain:
– A cost-benefit analysis. – Developmental and operational requirements, including:
• • • • Human resources Hardware Software Financial resources

– A schedule of activities to develop and operate the new application.

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PLANNING SYSTEMS DEVELOPMENT
 Two types of systems development plans are needed:
- Individual project plans developed by the project teams. - A master plan developed by the IS steering committee.

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PLANNING SYSTEMS DEVELOPMENT
• A master plan specifies:
– – – – – What the system will consist of How it will be developed. Who will develop it. How needed resources will be acquired. Where the AIS is headed.

• It also provides:
– Status of projects in process. – Prioritization of planned projects and criteria for establishing priorities. – Timetables for development.
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PLANNING SYSTEMS DEVELOPMENT
• Projects with highest priority are first to be developed.
– These decisions are made by top management.

• Planning horizon:
– About a 3-year horizon. – With updates at least 2–3 times/year—even more frequently in some companies.

• The CIO should determine:
– How soon technologies will be in wide use. – Whether the company should adopt late or early. – What business opportunities might arise from new technologies.
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PLANNING SYSTEMS DEVELOPMENT

• Planning techniques
– Two techniques for scheduling and monitoring systems development activities are:
• Program Evaluation and Review Technique (PERT) • Gantt Charts

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PLANNING SYSTEMS DEVELOPMENT

• Planning techniques
– Two techniques for scheduling and monitor systems development activities are:
• Program Evaluation and Review Technique (PERT) • Gantt Charts

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PLANNING SYSTEMS DEVELOPMENT
• A PERT diagram requires that all activities in a project be identified along with the activities that precede and follow them. • These activities are used to draw a PERT diagram, which consists of a network of:
– Arrows—representing activities that require time and resources. – Nodes—representing completion and initiation of activities.
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PLANNING SYSTEMS DEVELOPMENT
• The critical path in a PERT diagram is the path requiring the greatest amount of time. • If an activity on the critical path is delayed, the whole project is delayed. • Resources may be shifted to the critical path to reduce the delay.

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• SAMPLE PERT CHART
– For building and selling a birdhouse. – Each block contains a task and a time estimate (may include best time, worst time, and average time). – May indicate who will be responsible for the task.
Buy Wood & Nails (1) (Bill) Build Base (2) (Bill) Nail Together (2) (Bill) Paint & Decorate (3) (Sara)

Design Birdhouse (2) (Bill)

Sell (2) (Sara)

Buy Paint (1) (Sara)
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Build Roof (1) (Bill)
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PLANNING SYSTEMS DEVELOPMENT

• Planning techniques
– Two techniques for scheduling and monitor systems development activities are:
• Program Evaluation and Review Technique (PERT) • Gantt Charts

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PLANNING SYSTEMS DEVELOPMENT
• A Gantt chart is a bar chart with project activities on the left and time across the top. • For each activity, a bar of expected time is drawn. • As activities are completed, the bar is filled in. • The Gantt chart makes it easy to eyeball the chart and understand the current status of a project. • But the chart does not show the relationship between activities like the PERT chart does.
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SAMPLE GANTT CHART
Complete Testing In Development Milestone

1 Design birdhouse Buy wood & nails Buy paint Build roof Build base Nail together Paint & decorate Sell
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2

3

4

Period 5 6

7

8

9

10

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FEASIBILITY ANALYSIS
• During the systems analysis phase, a feasibility study (aka, a business case) is prepared and is updated during the remaining steps in the SDLC. • The extent of the feasibility study depends on the size and nature of the system. • Feasibility team should include:
– – – – Management Accountants skilled in controls and auditing Systems personnel Users
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FEASIBILITY ANALYSIS
• The feasibility study and its updates are used by the steering committee as the project proceeds to decide whether to:
– Terminate the project – Proceed – Proceed if specific problems are resolved

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FEASIBILITY ANALYSIS
• Five aspects need to be considered during a feasibility study:
– Technical feasibility
• Is the technology there to do it?

– Operational feasibility
• Do we have people who can do it, and will it get used?

– Legal feasibility
• Does it comply with legal, regulatory, and contractual obligations?

– Scheduling feasibility
• Can it be done in time?

– Economic feasibility
• Will the benefits exceed the costs?
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FEASIBILITY ANALYSIS
• Calculating economic feasibility costs and benefits
– Economic feasibility is probably the most important and frequently analyzed aspect. – This examination requires a careful investigation of costs and benefits. – It typically uses a capital budgeting model that considers:
• • • • Cost savings and other benefits Initial outlay costs Operating costs Other costs
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FEASIBILITY ANALYSIS
• When possible, benefits and costs should be estimated and included even if they are not easily quantifiable. • If some costs and benefits cannot be accurately estimated, they should at least be listed, along with the likelihood of their occurrence and their expected impact.

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FEASIBILITY ANALYSIS
• Benefits might include:
– Cost savings. – Improved customer service, productivity, decision making, or data processing. – Better management control. – Increased job satisfaction and employee morale.

• A rigorous cost-benefit analysis is a good strategy for ensuring the benefit of new information technology exceeds the cost.

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FEASIBILITY ANALYSIS
• Costs might include:
– Equipment costs
• Initial outlay plus ongoing operating costs.

– Software costs
• Costs of acquiring, maintaining, supporting, and operating.

– Human resource costs
• Salaries, as well as costs of hiring, training, and relocating staff.

– – – – –

Site preparation costs. Installation and conversion costs. Supplies. Overhead. Financial charges.
• Makes up 65–75% of the organization’s system efforts.

• The primary operating cost is maintaining the system.
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FEASIBILITY ANALYSIS
• Capital budgeting
– Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. – There are three commonly used techniques:
• Payback period
• Calculates the number of years before the new savings from the project equal the initial cost of the investment. • Select projects with shorter payback periods.

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FEASIBILITY ANALYSIS
• Capital Budgeting
– Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. – There are three commonly used techniques:
• Payback period • Net present value (NPV)
• Calculates and sums the discounted future cash flows of the costs and benefits. • Select projects with higher positive NPV.
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FEASIBILITY ANALYSIS
• Capital Budgeting
– Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. – There are three effective interest rate techniques: in • Calculates the commonly used that would result
• • •
a net present value of zero for the project. Payback period • Select projects with higher IRRs. Net present value (NPV) Internal rate of return (IRR)

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BEHAVIORAL ASPECTS OF CHANGE
• The best system will fail without the support of the people it serves. • So the behavioral aspects of change are crucial. • You need to be aware of and sensitive to the types of behavioral problems that can result from change.

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BEHAVIORAL ASPECTS OF CHANGE
• Why behavioral problems occur
– Employees will tend to view change as good if they believe it will affect them positively and vice versa.
• The Department of Defense with 3.3 million employees has faced tremendous resistance to change in the course of over 20 years of system integration attempts. • A more transparent system would likely expose personal agendas and a “project protection” mindset.

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background
• Employees are more likely to accept change if they are:
– Young; – Highly educated; or – Comfortable with technology.

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced
• The rationale used to sell the system may need to vary with the job responsibilities of the employees involved.

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes
• Fool me once, shame on me . . . • Let’s see if I even give you a second chance.

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes – Top management support

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes – Top management support – Communication

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes may be too • Employees – Top management support emotionally attached to their duties, i.e., “sacred cows.” – Communication – Biases and natural resistance to change

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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes – Top management support – Communication • Disturbances often create negative feelings. – Biases and natural resistance to change – Disruptive nature of the change process
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BEHAVIORAL ASPECTS OF CHANGE
• To minimize adverse behavioral reactions, it helps to understand why resistance occurs:
– Personal characteristics and background – Manner in which change is introduced – Experience with prior changes • May include fear – Top management support of: – The – Communication unknown – Biases and – Failure resistance to change natural – Technology – Disruptive nature of the change process – Losing respect or status – Fear
– Losing their jobs
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BEHAVIORAL ASPECTS OF CHANGE

• How people resist AIS changes
– Resistance to change often takes one of three forms:
• Aggression
• Behavior intended to destroy, cripple, or weaken the system’s effectiveness. • Examples: Increased error rates, disruptions, or deliberate sabotage.

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BEHAVIORAL ASPECTS OF CHANGE

• How people resist AIS changes
– Resistance to change often takes one of three forms:
• Aggression • Projection
• Blaming the new system for any and every unpleasant occurrence, i.e., the system becomes a scapegoat. • To preserve the integrity of the system, these criticisms must be controlled or answered.

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BEHAVIORAL ASPECTS OF CHANGE

• How people resist AIS changes
– Resistance to change often takes one of three forms:
• Aggression • Projection • Avoidance
• “If I don’t use this thing, maybe it will go away!” • At Davis Controls, the CEO eventually had to terminate employees who avoided using a new information system.
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FEASIBILITY ANALYSIS
• Reactions to change can be improved by observing the following guidelines:
– Meet user’s needs with respect to the form, content, and volume of system output. – Keep communication lines open. Managers and users should be fully informed about:
• • • • What changes are being made Why How it will benefit them Who to contact with questions
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FEASIBILITY ANALYSIS
– Maintain a safe and open atmosphere.
• If employees become hostile, it’s an uphill battle you probably won’t win.

– Obtain management support. – Allay fears.
• To the extent possible, reassure employees that no major job losses or responsibility shifts will occur. • If employees are terminated, severance pay and outplacement services should be provided.

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FEASIBILITY ANALYSIS
– Solicit user participation.
• It is ego enhancing, challenging, and intrinsically satisfying. • Users who participate will be more committed to using the system.

– Provide honest feedback.
• Explain which suggestions are and are not being used and why.

– Make sure users understand the system.
• Don’t underestimate training needs.
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FEASIBILITY ANALYSIS
– Humanize the system.
• Employees shouldn’t feel the computer is controlling them or has usurped their positions.

– Describe new challenges and opportunities.
• The system can provide greater job satisfaction and increased opportunities.

– Reexamine performance evaluation.
• Are performance standards and criteria realistic in light of the change?

– Test the system’s integrity.
• It’ important to minimize bad impressions
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FEASIBILITY ANALYSIS
– Avoid emotionalism.
• Emotional issues should be allowed to cool, handled in a non-confrontational manner, or sidestepped.

– Present the system in the proper context.
• Address the concerns of the people to whom you’re speaking, not the concerns of management or developers.

– Control the user’s expectations.
• Don’t oversell, and be realistic.

– Keep the system simple.
• Avoid complex systems that cause radical changes.
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FEASIBILITY ANALYSIS
 Ignoring the preceding steps can leave to behavior issues that are difficult or impossible to reverse.

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SYSTEMS ANALYSIS
• When a new or improved system is needed, a written request for systems development is prepared. That request describes:
– The current system’s problems. – The reasons for the proposed changes. – The goals and objectives of a proposed system. – The anticipated benefits and costs.
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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps:
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
• The initial investigation is conducted to:
– Gain a clear picture of the problem or need.
• Sometimes what is thought to be the cause of the problem is not the real source.

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SYSTEMS ANALYSIS
• The initial investigation is conducted to:
– Gain a clear picture of the problem or need. – Determine the viability of the project and expected costs and payoffs.

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• A new AIS is useful when problems are a result of:

SYSTEMS ANALYSIS

• The initial investigation is conducted to:
• a clear will not of the problem or need. – Gain A new AISpictureanswer problems such as: – A manager who has too many subordinates – Determine the viability of the project and – A manager who lacks organizational skills expected costsenforce payoffs. – Failure to and existing problems – Evaluate the scope and nature of the new AIS.

– Lack of information – Inaccessibility of data – Inefficient data processing

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SYSTEMS ANALYSIS
• The initial investigation is conducted to:
– Gain a clear picture of the problem or need. – Determine the viability of the project and • expected costs andEither: payoffs. – Initiate the project as proposed. – Evaluate the scope and nature of the new – Modify it. – Abandon it. AIS. – Recommend whether to proceed.

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SYSTEMS ANALYSIS
• If the project is approved:
– A proposal to conduct systems analysis is prepared. – The project is assigned a priority and added to the master plan. – The development team begins a survey of the existing AIS. – The proposal will be modified as more information becomes available.
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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
• A systems survey involves an extensive study of the current AIS which could take weeks or months. Objectives are:
– Gain a thorough understanding of: • Company operations, policies, and procedures. • Data and information flow. • AIS strengths and weaknesses. • Available hardware, software, and personnel. – Make preliminary assessments of current and future processing needs, and determine extent and nature of needed changes. – Develop working relationships with users and build support. – Collect data that identify user needs, conduct a feasibility analysis, and make recommendations to management.
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SYSTEMS ANALYSIS
• Data can be gathered from:
– Employees. – Documentation such as organization charts and procedure manuals. – External sources such as:
• • • • • Consultants Customers Suppliers Industry associations Government agencies
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SYSTEMS ANALYSIS
• Four common methods of gathering data are:
– Interviews – Questionnaires – Observation – System documentation

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SYSTEMS ANALYSIS
• Four common methods of gathering data are:
– Interviews – Questionnaires – Observation – System documentation

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SYSTEMS ANALYSIS
• Advantages of interviews:
– Can answer ―why‖ questions. – Can allow for follow-up and clarification. – Provides opportunity to build positive relationships with interviewees and support for new system.

• Disadvantages of interviews:
– Time-consuming. – Expensive. – Personal biases or self-interest may produce inaccurate information.
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SYSTEMS ANALYSIS
• When you do interviews:
– – – – – – – Make an appointment. Explain the purpose ahead of time. Indicate the amount of time needed. Be on time. Be familiar with the interviewee’s responsibilities. Make notes on points to cover. Put the interviewee at ease and let him/her do the talking. – Pay attention to nonverbal cues. – Take notes and augment them with impressions after the interview. – Request permission to tape critical interviews.
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SYSTEMS ANALYSIS
• Four common methods of gathering data are:
– Interviews – Questionnaires – Observation – System documentation

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SYSTEMS ANALYSIS
• Questionnaires can be used when:
– The amount of information to be gathered is small and well defined. – The information is to be obtained from many people or from those who are remotely located. – The information is intended to verify data from other sources.

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SYSTEMS ANALYSIS
• Advantages of questionnaires:
– – – –
– – – – –

Can be anonymous. Not time-consuming to complete. Inexpensive. Allows the subject time to think about responses.
Does not allow in-depth questions or answers. Does not allow follow-up or clarification. Does not build relationships. Difficult to develop. May be ignored or completed superficially.
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• Disadvantages of questionnaires:

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SYSTEMS ANALYSIS
• Four common methods of gathering data are:
– Interviews – Questionnaires – Observation – System documentation

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SYSTEMS ANALYSIS
• Advantages of observations:
– Can verify how the system actually works rather than how it should work. – Results in greater understanding of systems.

• Disadvantages of observations:
– Time-consuming. – Expensive. – Difficult to interpret. – People may alter behavior while being observed.
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SYSTEMS ANALYSIS
• When you do observations:
– Identify what is to be observed and estimate the time required. – Obtain permission. – Explain what will be done and why. – Don’t make value judgments. – Take notes and document impressions ASAP.

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SYSTEMS ANALYSIS
• Four common methods of gathering data are:
– Interviews – Questionnaires – Observation – System documentation

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SYSTEMS ANALYSIS
• Advantages of systems documentation:
– Describes how the system should work. – Written form facilitates review and analysis.

• Disadvantages of systems documentation:
– Time consuming. – May be elusive.

• When you examine systems documentation:
– Keep in mind that the system doesn’t always work as it should per the documentation. – If documentation is unavailable, it may be worthwhile to develop it.
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SYSTEMS ANALYSIS
• Once the data is gathered, document findings and model the existing system.
– Documentation consists of:
• Questionnaire copies • Interview notes • Memos

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SYSTEMS ANALYSIS
• Another form of documentation is a system model:
– Physical models illustrate how a system functions by describing:
• Flow of documents. • Computer processes performed and the people doing them. • Equipment used. • Any other physical elements.

– Logical models illustrate what is being done regardless of how the flow is accomplished.
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SYSTEMS ANALYSIS
• When documentation is complete, analyze the existing system:
– Evaluate the AIS’s strengths and weaknesses to develop ideas for designing and structuring the new AIS.
• Try to retain strengths. • Correct weaknesses.

– Sometimes, you need revolutionary, rather than evolutionary change.
• Called reengineering.
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SYSTEMS ANALYSIS
• At the end of this phase, prepare systems survey report:
– Outlines and documents the data gathered. – Provides recommendations that result from the systems survey.

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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps:
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
• After the systems survey, a more thorough feasibility analysis is conducted. • This analysis is updated regularly as the project proceeds and costs and benefits become clearer.

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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps:
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
- Processes • Describes what is to be done and by whom.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
- Processes - Data elements • Describes name, size, format, source, and significance of necessary data elements.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
- Processes - Data elements - Data structure

• A preliminary structure showing how the data elements will be organized into logical records.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes Data elements Data structure Outputs • Layouts of system outputs and a description of their purpose, frequency, and distribution.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes Data elements Data structure Outputs Inputs • A copy of system inputs and a description of their contents, source, and who is responsible for them.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes Data elements Data structure Outputs • A description of deadlines, Inputs schedules, security requirements, Constraints staffing limitations, and legal requirements.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes Data elements Data structure Outputs Inputs Constraints Controls • Controls that are needed to ensure accuracy and reliability.

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SYSTEMS ANALYSIS
 Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including:
Processes Data elements Data structure Outputs Inputs Documentation constraints Controls • Changes in staffing, job Reorganizations functions, etc., that would be necessary.
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SYSTEMS ANALYSIS
• Issues:
– There is much to be specified, even for a simple AIS. – It may be difficult to get employees to accurately articulate their needs. – Errors are best caught early, as the cost to correct them increases significantly the farther you are into the project.

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SYSTEMS ANALYSIS
• Systems objectives and constraints
– Many entities take a systems approach to determining information needs and systems requirements. – Problems and alternatives are viewed from the standpoint of the entire organization—as opposed to a single department.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
- Usefulness
• Able to help users make decisions.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
- Usefulness - Economy
• Benefits exceed costs.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
- Usefulness - Economy - Reliability
• Data is processed accurately and reliably.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability
• You can access it when you need it.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness
• More critical information is provided first.
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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service
• Efficient and courteous.
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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service - Capacity
• Can handle peak periods.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service - Capacity - Ease of use

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service - Capacity - Ease of use - Flexibility
• Can accommodate changes.

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service Capacity Ease of use Flexibility Tractability

• Easily understood. • Facilitates problem solving and future development.
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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service Capacity Ease of use Flexibility Tractability Auditability

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SYSTEMS ANALYSIS
• Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include:
Usefulness Economy Reliability Availability Timeliness Customer service Capacity Ease of use Flexibility Tractability Auditability Security • Available only to
authorized users.
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SYSTEMS ANALYSIS
• There are often trade-offs between objectives. • Organizational constraints make it impossible to develop all parts of an AIS simultaneously.
– You divide it into modules that are analyzed, developed, and installed independently. – When changes are made, only the affected modules need to be changed. – The modules should be properly integrated into a workable system.

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SYSTEMS ANALYSIS
• Success often depends on the project team’s ability to cope with organizational constraints, including:
– Requirements of governmental agencies. – Managerial policies and guidelines. – Lack of sufficient, qualified staff. – Capabilities and attitudes of users. – Available technology. – Limited financial resources.
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SYSTEMS ANALYSIS
• Strategies for determining requirements:
– One or more of the following four strategies are used to determine AIS requirements:
• Ask users what they need
• This is the simplest and fastest strategy. • But many people don’t realize or understand their true needs. • It’s sometimes better to ask them what decisions they make and what processes they are involved in. • Users also need to think beyond their current information needs.
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SYSTEMS ANALYSIS
• Strategies for determining requirements:
– One or more of the following four strategies are used to determine AIS requirements:
• Ask users what they need • Analyze existing systems
 Internal and external systems should be analyzed to avoid reinventing the wheel.

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SYSTEMS ANALYSIS
• Strategies for Determining Requirements: • Certain modules:
– One or – May not be used as intendedfour strategies more of the following – May be augmented by manual tasks are used Maydetermine AIS requirements: – to be avoided altogether
• Ask users determine whether the system really needs to be • Helps what they need simply modified rather • Analyze existing systems than replaced. • Examine existing system use

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SYSTEMS ANALYSIS
• Strategies for Determining Requirements:
– One or more of the following four strategies • Entails roughing out a system for users to critique. are used to determine AIS requirements:
• • • •
• When Ask users they see something on a screen, it’s easier to what they need identify what they like and don’t like. Analyze existing systems of improving and reviewing • Goes through iterations with existing system use Examine users until users agree on their needs. Create a prototype

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SYSTEMS ANALYSIS
• Documentation and approval of user requirements:
– Detailed requirements for the new AIS should be created and documented.
• How to produce the required features is determined during the design phases of the SDLC. • The requirements list should be supported by sample input and output forms and charts that make it easier to conceptualize. • A nontechnical summary is often prepared for management.

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SYSTEMS ANALYSIS
• Once user requirements have been determined and documented, the project team:
– Meets with users. – Explains the requirements. – Obtains their agreement and approval.

• When an agreement is reached, user management should sign off on the requirements.
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SYSTEMS ANALYSIS
• The project development team will conduct the systems analysis in five steps:
– Initial investigation – Systems survey – Feasibility study – Information needs and systems requirements – Systems analysis report

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SYSTEMS ANALYSIS
• The last step in systems analysis is the systems analysis report.
– Summarizes and documents the activities. – Serves as a repository of data from which designers can draw. – Outlines:
• • • • • • Goals and objectives of the new system. Scope of the project. How the new system fits into the company’s master plan. User processing requirements and information needs. Feasibility analysis. Recommendations for the new system.

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SYSTEMS ANALYSIS
• A go-no-go decision is usually made three times during systems analysis:
– During the initial investigation to determine whether to go ahead with a systems survey. – At the end of the feasibility study to determine whether to proceed with the information requirements step. – At the completion of the analysis phase to decide whether to proceed to the next phase (conceptual design).
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SYSTEMS ANALYSIS
• When systems analysis is completed, the project can move on to:
– Conceptual design phase – Physical design phase – Implementation and conversion – Operation and maintenance

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SUMMARY
• You’ve learned about the five phases in the systems development life cycle, with a particular emphasis on systems analysis. • You’ve learned who the players are in the systems development process. • You’ve learned about various techniques that are used to plan the development of a system. • You’ve reviewed some techniques for determining system feasibility. • You’ve learned about behavioral responses to systems changes and how dysfunctional behavior can be minimized.
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