Introduction to Systems Development and Systems Analysis

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Introduction to Systems Development andSystems
Analysis

• Lecture 10

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Introduction

• Ann Christy was promoted to controller of
  Shoppers Mart (SM).
• She determined the following
• Store managers cannot obtain information other
  than what is contained on SMs periodic,
  preformatted reports.
• The sales and purchasing department cannot get
  timely information about what products are or are
  not selling well.

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Introduction

• Ann is convinced that Shoppers Mart needs a
  new information system.
• She has the following questions
• What process must the company go through to
  obtain and implement a new system?
• What types of planning are necessary to ensure
  the systems success?

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Introduction

• How will employees react to a new system?
• What problems might this changeover cause, and
  how can they be minimised?
• How should the new system be justified and sold
  to top management?
• How can expected costs and benefits be quantified
  to determine whether the new system will indeed
  be cost-effective?

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The Systems Development Life Cycle

• What are the five steps in the systems
  development life cycle (SDLC)?
• Systems analysis
• Conceptual design
• Physical design
• Implementation and conversion
• Operations and maintenance

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The Systems Development Life Cycle
Systems Analysis Do initial
investigation Do system survey
Do feasibility study Determine information needs
and system requirements Deliver systems
requirements
Feasibility analysis and decision points
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The Systems Development Life Cycle
Conceptual Design Identify and evaluate
design alternatives Develop design
specifications Deliver conceptual design
requirements
Feasibility analysis and decision points
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The Systems Development Life Cycle
Physical Design Design output
Design data base Design input
Develop programs Develop
procedures Design controls
Deliver developed system
Feasibility analysis and decision points
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The Systems Development Life Cycle
Implementation and Conversion Develop plan
Install hardware and software Train
personnel, test the system Complete
documentation Convert from old to new system
Fine-tune and review Deliver operational
system
Feasibility analysis and decision points
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The Systems Development Life Cycle
Systems Analysis
Operation and Maintenance Operate system
Modify system Do ongoing
maintenance Deliver improved system
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The Players

• Who are the people involved in developing and
  implementing AIS?
• management
• accountants
• information systems steering committee
• project development team
• systems analysts and programmers
• external players

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The Players

• What are top managements roles?
• providing support and encouragement
• establishing system goals and objectives
• determine information requirements

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The Players

• What are accountants roles?
• determine their information needs
• may be members of the project development team
• play an active role in designing system controls

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The Players

• What are the steering committees roles?
• set policies that govern the AIS
• ensures top-management participation
• guidance and control
• facilitates coordination and integration of
  IS activities

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The Players

• What are the project development teams roles?
• plan each project
• monitor project
• make sure proper consideration is given
  to the human element

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The Players

• What are the system analysts and programmers
  roles?
• study existing systems
• design new systems prepare specifications
• write computer programs

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Planning Systems Development

• Why is planning an important step in systems
  development?
• consistency
• efficiency
• cutting edge
• lower costs
• adaptability

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Planning Systems Development

• What types of systems development plans are
  needed?
• project development plans
• master plan
• Project Management Institute http//www.pmi.org/

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Planning Techniques

• Two techniques for scheduling and monitoring
  systems development activities are
• PERT
• Gantt chart
• PERT (program evaluation and review technique)
  requires that all activities and the precedent
  and subsequent relationships among them be
  identified.

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Planning Techniques

• What is the critical path?
• The path requiring the greatest amount of time.
• The total time of the project can be reduced
  by shortening the critical path.
• If any activity on the path takes longer than
  anticipated, a delay occurs.

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Planning Techniques
6
4
G
F
C
5
1
2
D
A
E
B
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Critical path A,B,E
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Planning Techniques

• A Gantt chart is a bar chart with project
  activities listed on the left-hand side and units
  of time (days or weeks) across the top.
• For each activity, a bar is drawn from the
  scheduled starting date to the ending date.
• As activities are completed, the bar is filled in.

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Planning Techniques
Project Planning Chart (Sample Gantt Chart)
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Activity Week Starting
1
2
3
4
5
6
7
8
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Feasibility Analysis

• Systems analysis is the first step in the systems
  development life cycle (SDLC).
• A feasibility study (also called a business case)
  is prepared during systems analysis and updated
  as necessary during the remaining steps in the
  SDLC.
• The steering committee uses the study to decide
  whether to terminate a project, proceed
  unconditionally, or proceed conditionally.

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Feasibility Analysis

• What five important aspects need to be considered
  during a feasibility study?
• Technical feasibility
• Operational feasibility
• Legal feasibility
• Scheduling feasibility
• Economic feasibility

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Feasibility Analysis

• Economic feasibility is the most frequently
  analyzed of the five aspects.
• What is the basic framework for feasibility
  analysis?
• capital budgeting model

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Feasibility Analysis

• What are some capital budgeting techniques?
• payback period
• net present value (NPV)
• internal rate of return (IRR)

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Behavioural Aspects of Change

• Individuals involved in systems development are
  agents of change who are continually confronted
  by peoples reaction and resistance to change.
• The best system will fail without the support of
  the people it serves.
• Why do behavioural problems occur?

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Behavioural Aspects of Change

• personal characteristics and background
• manner in which change is introduced
• experience with prior changes
• communication
• disruptive nature of the change process
• fear

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Behavioural Aspects of Change

• How do people resist AIS changes?
• aggression
• projection
• avoidance

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Behavioural Aspects of Change

• How can behavioural problems be improved?
• meet needs of the users
• keep communication lines open
• maintain a safe and open atmosphere
• obtain management support
• allay fears
• solicit user participation

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Behavioural Aspects of Change

• provide honest feedback
• make sure users understand the system
• describe new challenges and opportunities
• re-examine performance evaluation
• avoid emotionalism
• present the system in the proper context
• control the users expectations
• keep the system simple

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Systems Analysis

• When a new or improved system is needed, a
  written request for systems development is
  prepared.
• The request describes the current systems
  problems, why the change is needed, and the
  proposed systems goals and objectives.
• It also describes the anticipated benefits and
  costs.

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Systems Analysis

• There are five steps in the analysis phase
• Initial investigation
• Systems survey
• Feasibility study
• Information needs and systems requirements
• Systems analysis report

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Case Conclusion

• What did Ann Christy decide?
• that the corporate office would gather
  daily sales data from each store
• What was the estimated initial cost of the
  system? the net present value of the investment?
• initial cost 5 million
• NPV more than 3 million