Introduction to Systems Analysis and Design.pptx

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Introduction to Systems Analysis
and Design

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Information and paperwork are the most abundant
products generated by modern business.
There are two reasons for the overwhelming
information and paperwork:
PEOPLE. People is the reason because a growing
population generate a tremendous amount of data that
needs to be entered, manipulated, processed, and output
like medical files, school records, employment to name a
few.
[KENDALL & KENDALL, 1999]

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GOVERNMENT. The second reason is the increase of
government regulation and controls. Computers,
particularly, microcomputers are widely used to cope with
this burgeoning paperwork. It fuels information based
upon which large and small decisions are made. It is use
to help management policy and make better decisions
about employment, purchasing, and distribution patterns.
The flow and availability of data has become
indispensable vital element of almost every human
enterprise. It requires planning, people, machines, and
money.

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Data vs. Information
Consist of raw facts concerning people,
events, or other entities collected in vast
quantities from both internal and external
sources.
Examples:
employee’s name, number of hours worked
Types of Data:
1. Alphanumeric Data - numbers, letters and other
characters
2. Audio Data - sound, noise, or tones
3. Image Data - graphical images or pictures
4.Video Data - moving images or pictures

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Data that has been process and presented in a
form suitable for human interpretation and decision
making.
A collection of facts organized in such a way that
they have additional value beyond the value of the
facts themselves.
Rules and relationship can be set-up to organized
data into useful, valuable information. The type of
information created depends upon the relationships
defined between existing data. Adding new or different
data means relationships can be redefined, and new
information can be created.

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Refers to turning data and information
The process of defining relationship between
data and information requires knowledge.
A set of logically related tasks performed to
achieve a defined outcome
Process
Knowledge – body of rules, guidelines and
procedures used to select, organized, and manipulate
data to make it suitable for specific task.
Process of transforming data into information
Data Process Information

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1. ACCURATE - error-free
2. COMPLETE - contains all important facts
3. ECONOMICAL - information must not be costly
to produce
4. FLEXIBLE - can be used for a variety of
purposes
5. RELIABLE - can be depended on
- reliability of information depends on
the source of information.
6. RELEVANT - important
7. SIMPLE - not overly complex causing information
overload.
8. TIMELY - deliverable when needed.
9. VERIFIABLE - can easily be checked to determine
correctness.
Characteristics of Valuable Information

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Information has taken its place in organization
as a major corporate resource. It represents other
sources in an organization such as money and
materials especially when the size of the firm
increases. This is so because monitoring the physical
operation of an organization will be time consuming
to do. As a manager, they rely on information to
monitor these physical operation. The manager uses
many reports or information displays to reflect the
firm’s conditions and use these in decision-making.
Importance of Information

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According to McLeod, Information must be manage
accordingly and correctly, just as other resources found in
the organization. Manager needs to understand that there
are costs associated with production, distribution, security,
storage and retrieval of all information. Although
information is all around, it is not free, and its strategic use
for positioning a business competitively should not be
taken for granted.
Information Must Be Manage
[MCLEOD, 1998]

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Reasons For Information Management
1. Increasing complexity of management task due to:
2. Availability of Problem-Solving tools such as
computer
a. International economic influences
b. Increasing complexity of technology
c. Shrinking time frames
d. Competitive pressures
e. Social pressures

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Information Resource Management
Concept that information is a major corporate
resource and must be managed using the same
principles being applied in managing other assets of
the organization.
Principles:
1. A business organization is composed of resources
that flow into the organization and then return to the
environment where these resources comes from.
[MCLEOD, 1998]

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2. There are two basic types of resources:
3. As the scale of operation grows, it becomes more
difficult to manage the physical resources by
observation. Thus, the manager is forced to rely on
the conceptual resources.
4. The same basic principles that have been
developed for the management of physical
resources can be applied to the management of
conceptual resources.
a. physical resources such as:
i. personnel iv. machines
ii. materials v. money
iii. facilities
b. conceptual resources such as:
i. data ii. Information
[MCLEOD, 1998]

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a. acquisition prior to the time they are needed
b. security measures design to protect the
resources from destruction and misuse
c. quality assurance
d. removal procedures that discharge the resource
from the organization when they are no longer
needed.
6. Management of data and information can be
achieved only through organizational, not individual
commitment.
5. Management of data and information includes:
[MCLEOD, 1998]

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System
A regularly interacting and interdependent group of
element forming a unified whole.
A set of interacting elements to accomplish a certain
goals or objectives.
Consists of tools, supplies, machine, procedure and
people. Usually requiring some type of orderly
management.
Major attributes of system is that they possess
qualities and capabilities not found in individual
elements. This attribute – the whole producing results
that are greater than the sum of its parts.
Example:
car
[MCLEOD, 1998]

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Characteristics of a System
1. Component
-an irreducible part or aggregation of parts that
makes a system.
-also called a subsystem
2. Interrelated components
-dependence of one subsystem on one or more
subsystems
3. Boundary
- the line that marks the inside and the outside of
a system and which sets off the system from its
environment.
[MCLEOD, 1998]

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4. Purpose
-overall goal or function of a system
5. Environment
-refers to anything that is external to a system
that interacts with a system
6. Interface
- point of contact where a system meets its
environment or where subsystems meet each
other
[MCLEOD, 1998]

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Functions of interfaces:
a. security – protecting the system from undesirable
elements that may want to infiltrate it.
b. filtering – unwanted data both for elements leaving the
system and entering it.
c. coding and decoding – incoming and outgoing
messages
d. detecting and correcting errors – in its interaction with the
environment
e. buffering – providing a layer of slack between the system
and its environment, so that the system and its
environment can work on different cycle and at different
speeds.
f. summarizing – raw data and transforming them into the
level of detail and format needed throughout the
system(for an input interface) or in the environment(for an
output interface) [MCLEOD, 1998]

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7. Constraints
- limit to what a system can accomplish
- can either be imposed by internal or external
factors
8. Input
-refers to what ever a system takes from its
environment in order to fulfill its purpose.
9. Output
-refers to whatever a system returns to its
environment in order to fulfill its purpose.
[MCLEOD, 1998]

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A collection of policies, procedures, methods, people
machines, and other elements that interact and
enable the organization to reach each of its goals-
to profit or to render service.
A system concerned with accomplishing specific
business goals and is broken down into a number
of subsystems.
Business Systems
Business systems rely on the data provided by
the information system
[HOFFER, GEORGE & VALACICH, 1999]

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Information Systems
Set of interrelated elements or components that collect
(input), manipulate and store(process),
disseminate(output) data and information and provide a
mechanism for feedback
System that manages data needed by a business
system
due to the increase in volume of information that
must be processed, it led to a greater reliance upon
computer-based information system(CBIS)
Considered an asset to gain competitive advantage if
effectively manage.
Considered an asset to gain competitive advantage if
effectively manage

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INFORMATION SYSTEMS ANALYSIS AND DESIGN
A complex, challenging, and stimulating
organizational process that a team of business
and systems professionals uses to develop and
maintain computer-based information systems
Series of processes systematically under taken to
improve a business through understanding of
organization’s objectives, structures, and
processes as well on how can exploit information
technology for the system’s advantage

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SYSTEMS ANALYSIS
SYSTEMS DESIGN
Proposes a new system that meets the requirements
specified. This new system maybe built a new or
by changing the existing system.
The scientific study of systems processes, including
investigation of inputs, and outputs, in order to find
better, more economical, and more efficient
means of processing.
Used to gain an understanding of an existing system
and what is required of it.

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1. Used to analyze, design, and implement improvements
in the functioning of businesses that can be Seeks to
analyze data input or data flow, processing or
transforming data, data storage, information output
within the context of a particular business
2. accomplished through the use of computerized
information systems.
NEED FOR SYSTEMS ANALYSIS
AND DESIGN

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1. Greater efficiency
2. Maximizing profit
3. Resources to the best advantage
4. Reduction of human effort
5. Faster turnaround
6. Reduction and elimination of errors in data and
information
7. Consistent operations and procedures
ADVANTAGE OF SYSTEMS
ANALYSIS AND DESIGN
[SILVER & SILVER, 1992]

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SYSTEM DEVELOPMENT TEAM
- Systems development is a team effort.
LIMITATIONS OF SYSTEM ANALYSIS AND DESIGN
1. Some business problems are beyond the scope of
systems analysis and design
2. Efforts cost time and money
3. Human element can cause complications
4. Effort is required to sell a system
Characteristics of a systems development team:
1. Diversity in backgrounds, skills and goals that comes
from all different groups interested in the system
2. Tolerance diversity, uncertainty, ambiguity
3. Clear and complete communication
4. Trust [HOFFER, GEORGE & VALACICH, 1999]

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Components:
1. Hardware - consists of computer equipments used
top perform input, processing, and output activities
2. Software - consists of programs and instructions
given to the computer and to the user
3. Database - an organized collection of facts and
information
CBIS is an information system that is composed
of hardware, software, databases, telecommunication,
people and procedures that are configured to collect,
manipulate, store, and processed data into information.
Computer-Based Information System

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4. Telecommunications - allows organization to link
computer systems together into effective
networks
5. People - any person involved in information systems
development including information systems
personnel that manages, run, program, and
maintain computer systems
- any person that benefits in the use of the
information system(users)
6. Procedures- includes strategies, policies, methods, and
rules that human use to operate the CBIS

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Types of CBIS
1. Transaction Processing System
- an organize collection of people, procedures,
databases, and devices used to record
completed business transaction
- system to process large amount of data for
routine business transactions
- support day-to-day activities of the business
2. Office Automation Systems
- support data workers
- includes all of the formal and informal
electronic systems primarily concerned with the
communication of information to and from
persons both in and outside the firm

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Office Automation Applications
a. word processing
b. communication
c. spreadsheet
d. desktop publishing
e. electronic scheduling
Data Workers
workers that do not usually create data or new
knowledge but rather analyze information in order
to transform data or manipulate it in some way
before sharing it with, or formally disseminating it
throughout the organization and, sometimes,
beyond.

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3. Knowledge Work Systems
– support professional workers or knowledge
workers by aiding them in their effort to create
new knowledge and by allowing them to
contribute it to their organization or to the society
at large.
Examples: CAD/CAM
4. Management Information Systems
– an organize collection of people, procedures,
databases, and devices used to provide routine
information to managers and decision makers
– provide periodic reports, special report and
outputs of mathematical simulation that
comes from transaction processing system

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Management Information System
Common
Database
TPS
Production
MIS
Other MIS
Financial MIS
Marketing
MIS

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5. Decision Support System
- an organized collection of people, procedures,
databases, and devices used to support problem-
specific decision making
- support middle management of information workers
who needs assistance with semi-structured
problems(problems that contains some aspects of
being easily predictable as well as other aspects
that require the exercise of judgment)
- an interactive system that supports a single manager
or relatively small group of managers in the solution
of semi structured problems by providing
information or suggestions, and varying degrees,
concerning specific decisions

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DSS
Generator
user
interface
Model
Base
Database
Decision Support System

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6. Expert System
-information system that can function as a
consultant to a problem solver, not only to by suggesting
to a solution but also by explaining the line of reassuring
that leads to the solution as what a human expert can do.
-branch of artificial intelligence and is also called
knowledge-based systems
user User interface
Expert Systems
Rule basic
Inference
Knowledge base

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7. GROUP DECISION SUPPORT SYSTEM
- Intended to bring a group together to solve a
problem with the help of various supports such as
polling, questionnaires, brainstorming, and scenario
creation
- Helps middle managers and information workers
collectively plan and decide important business
issues
8.COMPUTER SUPPORTED COLLABORATIVE WORK
- Intended for team collaboration via networked
computers that uses a software called “group
ware” [KENDALL & KENDALL, 1999]
9. EXECUTIVE SUPPORT SYSTEMS
- Support senior managers of the firm in the
strategic planning function.

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Systems Analyst may be involved with any or all of these systems
ESS
GDSS
CSCWS
ES
DSS
MIS
Knowledge Work
System Office
Automation System
Transaction Processing Systems

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BENEFITS OF INFORMATION SYSTEMS
1. Added value to products (goods or services)
2. Better service advantage
3. Competitive
4. Fewer errors
5. Greater accuracy
6. Higher- quality products
7. Improved communications
8. Increased efficiency
9. Increased productivity
10.More efficient administration
11.Reduced operation requirements
12.Reduced operation casts
13.Superior financial decision making
14.Superior control over operations
15.Superior managerial decision making

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CAUSES OF UNSUCCESSFUL SYSTEM
1. Systems developed did not support business strategies and
policies
2. Poor systems planning and inadequate project
management
3. Failure to define or understand user requirements and get
users involved in systems development
4. Negligence in estimating cost and benefit of the system
project
5. Creation of a myriad of design defects and errors
6. Acquisition of computers and soft ware that no one needs or
knows to use
7. Installation of incompatible or inadequate technology
8. Negligence in implementing adequate controls
9. Development of unstructured, unmaintainable software
10.Inadequate implementation tasks [BURCH, 1992]

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Problem caused by poorly develop systems can
range from loss of life, to loss of assets, to loss of
customers, and revenues, to management making
wrong decisions based on inaccurate or untimely
information, to wasted time and decreased
productivity.

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WAYS TO HAVE SUCCESFUL SYSTEMS
1. Stressing user involvement in systems development
2. Implementing planning and the use of project
management techniques
3. Develop alternatives for system design for evaluation
before making majors commitments to final design,
technology, and software development
4. Designing all system design components functionally
5. Use of detailed functional design as guide for software
design, and testing
6. Prepare clear, complete, and current documentation
7. Using coordinated, planned approach to systems
implementation
8. Performance of post-implementation reviews
9. Design and perform systems maintenance BURCH, 1992

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CATEGORIES OF PEOPLE INVOLVED IN SYSTEMS
DEVELOPMENT
1. SYSTEM OWNERS
- Information system’s sponsors and chief advocates
- Usually responsible for budgeting the money and
time to develop and support information systems,
and for the ultimate acceptance o0f the information
system.
2. SYSTEMS USERS
- People who use (and directly benefit from) the
information system on a regular basis- capturing,
validating, entering, responding to, and storing data
and information.

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ROLES OF SYSTEM USERS
a. Define problems to be solve
b. Define opportunities to be exploited
c. List down requirements to be fulfilled
d. State business constraints to be imposed by or for
the information system
primary concern is to “get the job done”

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TYPES OF SYSTEM USER
a. CLERICAL WORKERS
-People performing day-to-day activities in the business
-People who initiate or handle the bulk of any organization’s
data. They often make routine decision based on data and
generate information for managers. They are of need of
systems that help them process more data with greater speed
and fewer mistakes.
Examples:
Bookkeeper, clerk, office, clerk, salesperson, secretary
b. TECHNICAL AND PROFESSIONAL STAFF
-Consists largely of business and
industrial specialists who perform highly skilled and
specialized work
-Also called knowledge workers
Examples: Accountant, engineer, lawyer, scientist, statistician

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c. SUPERIOR
-Lowest level of management who controls the day-to-
day operations of the organization.
-Tend to be interested in “budget for” and “efficiency of”
the operations they supervise
Examples:
Foreman, group leader, project manager, shift leader.
d. MIDDLE MANAGERS
-Concerned with relatively short-term/ tactical planning,
organizing, controlling, and decision-making.
Examples:
Accounts receivable manager, department head,
purchasing manager

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e. EXECUTIVE MANAGER
– Responsive for long-term/strategic planning and
control for the organization.
Examples:
Chief executive officer(CEO), chief information
officer(CIO), college dean, president, principal
3. SYSTEM DESIGNER
– translates user’s business requirement and constraints
into technical solutions.
– Design computer files, database, inputs, outputs,
screen, networks and programs that will meet the
system user’s requirements
– Also integrate technical solution back into the day-to-day
business environment
Examples:
Systems analyst, data analyst, network analyst

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4. SYSTEM BUILDERS
– construct multi-user information system based upon
the design specifications.
Examples:
Application programmer, database programmer,
network administrator

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One who systematically assesses the
functioning of business by examining the input and
processing of data, and the outputs of the
information with the intent of improving
organizational processes.
Systems Analyst
The Systems Analyst

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The system analyst gathers and analyzes information
about current systems and any new requirements for any
new systems. He or she uses that information to plan
modifications to existing systems or to design new systems.
The analyst introduces the specifications through formal
presentations and documentations. The analyst supervises
the coding and testing of new programs, site preparation,
documentation and training, conversion, and maintenance
JOB DESCRIPTION OF A SYSTEMS ANALYST

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1. Apply fact-gathering techniques to study current
systems and develop requirements for the
proposal of a new information system.
2. Develop solution to business system procedures.
3. Design procedures for data collection and processing.
4. Used structured diagramming and documentation
methods to illustrate and define both existing and
proposed Information systems.
5. Estimating requirements for time and resources, and
estimate benefits.
6. Perform cost – benefit analysis on any proposed
system solution.
DUTIES OF A SYSTEMS ANALYST

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7. Supervise site preparation
8. Choose hardware and software.
9. Use prototyping technique to develop abbreviated
systems quickly during analysis and design.
10.Evaluate system designs for quality and ease of
maintenance
11.Design input forms, output reports, and display formats.
12.Incorporate security measures into system design.
13.Supervise coding, testing, and quality control.
14.Supervise user documentation and training.
15.Oversee conversion to new system.
16.Supervise maintenance and change control after the
system is in operation.
17.Establish system development standards.
18.Keep current with developments in the field of
computer technology. [KENDALL & KENDALL, 1999]

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ROLES OF A SYSTEMS ANALYST
1. As a consultant
2. As a supporting expert
3. As a change agent
QUALIFICATIONS OF A SYSTEMS ANALYST
1. Bachelors degree in computer science, information
science, accounting, statistics or business.
2. Experienced programmer
3. Training in systems analysis and design.
4. Experience or training in business systems.
5. Effective verbal and written communication skills.
6. Experience or training in management skills.

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1. Creativity and innovation
2. Good verbal and written communication skills.
3. Positive attitude towards others.
4. Technical knowledge of computers and
information systems hardware and software.
5. Knowledge of basic business theories and concepts.
6. Willingness to work with others
7. Ability to solve problems.
CRICITAL SUCCESS FACTORS OF A SYSTEMS
ANALYST

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DOMAIN OF SKILLS
1. Analytical Skills
–Understanding of the organization and its functions, to
identify the opportunities and problems, and to analyze
and solve problems.
a. Systems thinking
b. Organizational knowledge
c. Problem identification
d. Analysis and solving of problems
2. Technical Skills
Understanding the potentials and limitations of information
technology.

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Knowledge in:
a. Types of computers
b. Programming languages
c. Operating systems
d. Data communication standards and
software for LAN and WAN
e. Systems development tools and
environments
f. Decision support system generators and
data analysis tools.

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Can be achieve through:
a. Reading computer publications and books
b. Joining professional societies interested in
computer technologies.
c. Attending computer classes or teach at a local
college
d. Attending any courses or training sessions
offered by your organization
e. Attending professional conferences, seminars,
or trade shows
f. Participating in electronic bulletin boards, news
groups or conferences

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3. Management Skills
– Understanding how one must manage projects,
resources, risks and changes
Knowledge in :
a. resource management
b. project management’
c. risk management
d. change management
4. Interpersonal Skills
– Understanding how one will work with end users as
well as other persons involved in systems
development
a. communication skills
b. working alone and with a team
c. facilitating groups
d. managing expectations

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Academic Training Industry Experience
Industry experience Academic Training
Private Consulting Management
Senior Analyst
Junior Analyst
SILVER & SILVER, 1992

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Sequence of steps used to organize a large of
activities needed to build system
Traditional methodology used to develop, maintain,
and replace information system
THE SYSTEMS ANALYST

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1. Planning
2. Systems
Analysis
3. General Systems
Design
4. Systems Evaluation
And Selection
5. Detailed Systems
Design
6. Systems
Implementation
7. Systems
Maintenance

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PHASES OF SYSTEMS DEVELOPMENT LIFE
CYCLE (SDLC)
1. SYSTEMS PLANNING
– Initial investigation of the system
– A brief study of the problem to determine
whether the systems project should be
pursued
– Net result is a rough plan for how-and
whether-to proceed with the project.
2. SYSTEMS ANALYSIS
– Its purpose is to understand the existing
system and propose alternate replacement
system at the end.

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3. SYSTEMS DESIGN
– Conceptualizes the system to be developed
– Provides plans for data-entry procedures, user-
interfaces, file and database design controls and
backup procedures.
4. SYSTEMS DEVELOPMENT
– Phase where the system is actually being developed
– Involves programming and testing of system
5. SYSTEMS IMPLEMENTATION
– Phase where system is put into operational use.
6. SYSTEMS MAINTENANCE
- Longest phase and the costliest phase in the SDLC
- Phase where the system is monitored and made
necessary adjustments to make the system produce
continuously expected results of it.

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Information Requirements
Analysis

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PROJECT FUNDAMENTALS
1. Determining project feasibility
2. Scheduling projects
3. Planning and then managing activities and team
members for productivity
Systems Project
Begins with problems or with opportunities for the improvement
within a business that often come up as the organization adapts
to change
Determining Feasibility

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Business people suggest systems project for two
broad reasons:
1. To experience problem that lend themselves that
systems solutions
2. To recognize opportunities for improvement through
upgrading, altering installing new systems when they
occur
[KENDALL & KENDALL,1999]
The systems analyst serves as catalyst and
supporting expert primarily by being able to see where
processes can be improved.

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5. Reducing redundant output.
6. Improving integration of systems and subsystems.
7. Improving worker’s satisfaction with the system.
8. Improving ease of costumer, supplier, and vendor
interaction with the system.
1. Speeding up a process.
2. Streamlining a process through the elimination of
unnecessary or duplicated steps.
3. Combining processes.
4. Reducing errors in input through changes of forms and
display screens.
Improvements to systems can be defined as changes
that will result in incremental yet worthwhile benefits:

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CRITERIA FOR SELECTION OF SYSTEMS PROJECTS
1. Backing from management
2. Appropriate timing of project commitment
3. Possibility of improving attainment of organizational goals
4. Practical in terms of resources for systems analyst and
organization
5. Project is worthwhile compared to other ways that
organization could invest resources
Remember that when a business commits to one
project, it is committing resources that thereby become
unavailable for other projects.

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SEVERAL ACCEPTABLE OBJECTIVES FOR SYSTEMS
PROJECTS, INCLUDES:
1. Reducing errors and improving the accuracy of data
input.
2. Reducing the cost of the system output by streamlining
and eliminating duplicate or unnecessary reports.
3. Integrating business subsystems.
4. Upgrading customer services to gain a competitive edge.
5. Speeding up input.
6. Shortening data-processing time.
7. Automating manual procedures to improve them in some
way (reduce errors, increase speed or accuracy, cut down
on employee time required, etc.)

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ASSESSING PROJECT FEASIBILITY
All projects are feasible given unlimited resources and
infinite time [PRESSMAN, 1992]
Most projects must be developed within tight budgetary
and time constraints
is a required activity for all information systems project and
is potentially a large undertaking that requires a systems
analyst to evaluate a wide range of factors.

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SOME OF THE FEASIBILITY FACTORS ARE
REPRESENTED BY THE FOLOWING CATEGORIES:
1. Technical Feasibility
2. Economic Feasibility
3. Operational Feasibility
4. Schedule Feasibility
5. Legal and Contractual Feasibility
6. Political Feasibility

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 TECHNICAL FEASIBILITY
The analyst must find out whether current
technical resources can be upgraded or added to in a
manner that fulfills the request under consideration.
this is where the expertise of systems analysts is
beneficial, since by using their own experience and
their contact with vendors, they will be able to answer
the question of technical feasibility .

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a. Failure to attain expected benefits from the project.
b. Inaccurate project cost estimates
c. Inaccurate project duration estimates
d. Failure t achieve adequate system performance levels
e. Failure to adequately integrate the new system with
existing hardware, software,or organizational
procedures.
The potential consequences of not assessing and
managing risks can include the following outcomes:

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 ECONOMIC FEASIBILITY
its purpose is to identify the financial benefits and costs
associated with the development project; it is often
referred to as cost-benefit analysis.
a. Determining Project Benefits
i. Tangible Benefits – refer to items that can be
measured in dollars and with certainty.
Example:
Lower transaction costs/higher profit
margins

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MOST TANGIBLE BENEFITS WILL FIT WITHIN THE
FOLLOWING CATEGORIES:
 Cost reduction and avoidance
 error reduction
 Increased flexibility
 Increased speed of activity
 Improvement of management planning and control
 opening new markets and increasing sales opportunities
ii. Intangible Benefits
– refer to items that cannot be easily measured in dollars or
with certainty.
– may have direct organizational benefits such as the
improvement of the employee morale or they may have
broader societal implications such as the reduction of
waste creation or resource consumption.

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b. Determining Project Costs
– similar to benefits, an information system can have both
tangible and intangible costs
– besides tangible and intangible costs, you can distinguish
IS-related development costs as either one-time or
recurring.
ONE-TIME COSTS – refer to those associated with project
initiation and development and the start-up of the system.
These costs typically encompasses activities
such as:
i. System development
ii. New hardware and software purchases
iii. User training
iv. Site preparation
v. Data or system conversion

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RECURRING COSTS –refer to those costs resulting from
the ongoing evolution and use of the system.
These cost typically include:
i. Application software maintenance
ii. Incremental data storage expense
iii. New software and hardware leases
iv. Supplies and other expenses
example:
paper, forms, data center personnel
Both one-time and recurring cost can consist of items that
are fixed or variable in nature.
Fixed Cost –refer to cost that are billed or incurred at a
regular interval and usually at a fixed rate.

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TYPES OF COSTS:
i. Procurement => EXAMPLE: Consulting Costs;
Equipment purchase or lease;
Site preparation and modifications;
Capital Cost
ii. Start-Up => EXAMPLE: Operating system software;
Communication equipment installation;
Start-up personnel
iii. Project-Related=> EXAMPLE: Application software;
Software modifications to fit local
system; Collecting and analyzing data;
Preparing documentation
iv. Operating => EXAMPLE: System maintenance costs;
Asset depreciation; Management,
operation, and planning personnel
[KING & SCHREMS, 1978]

77
c. The Time Value of Money
–most techniques used to determine economic feasibility
encompass the concept of TVM.
–refers to the concept of present cash outlays to future
expected returns.
Cost of Capital –the rate of which money can be borrowed
or invested.
Discount Rate –the rate of return used to compute the
present value of future cash flow.
Present Value –the current value of a future cash flow.

78
COMMONLY USED ECONOMIC COST-BENEFIT ANALYSIS
TECHNIQUE
1. Net Present Value(NPV)
–uses a discount rate determined from the company’s cost
of capital to establish the present value of a project.
– the discount rate is used to determine the present of value
of both cash receipts and outlays.
2. Return On Investment(ROI)
–is the ratio of the net cash receipts of the project divided by
the cash outlays of the project.
–tradeoff analysis can be made among projects competing for
investment by comparing their representative ROI ratios.
3. Break-Even Analysis(BEA)
–finds the amount of the time required for the cumulative cash
flow from a project to equal its initial and ongoing
investments.
[HOFFER,GEORGE & VALACICH, 1996]

79
Formula in figuring out the present value:
[ ]
PV = Y
n
_1 _
(1+i)n
years from now
present value of money
discount rate

80
Example of TVM:
Suppose you want to buy a used car from an
acquaintance and she asks that you make three payments of
$1,500 for three years, beginning next year, for a total of
$4,500.
Solutions:
[ ]
PV = 1500 x
1
_1_ _
(1+.10)
1 = 1500 x .9091 = 1363.65
[ ]
PV = 1500 x
1
_1_ _
(1+.10)
2 = 1500 x .8264 = 1239.60
[ ]
PV = 1500 x
1
_1_ _
(1+.10)
3 = 1500 x .7513 = 1126.95
where PV , PV , and PV reflect the present value of each
$1,500 payment in year one, two, three, respectively.
1 2 3

81
NPV = PV + PV + PV
= 1363.65 + 1239.60 + 1126.95
= $3,730.20
1 2 3
To calculate the Net Present Value (NPV) of the three
$1,500 payments simply add the calculated present values:

82
 OPERATIONAL FEASIBILITY
is dependent on the human resources available for the
project and involves projecting whether the system will
operate and be used once it is installed.
Its purpose is to gain an understanding of the degree to
which the proposed system will likely solve the business
problems or take advantage of the opportunities outlined
in the systems service request or project identification
study.

83
 SCHEDULE FEASIBILITY
the process of assessing the degree to which the
potential time frame and completion dates for all major
activities within a project meet organizational deadlines
and constraints for affecting change.
the schedule of activities produced during project
initiation and planning will be very precise and detailed
for the analysis phase.

84
KEY ELEMENTS IN DEVELOPING A PROJECT PLAN:
1. A definition of scope for the project stating which general
functions within the purchasing department will be analyzed
and which activities outside of purchasing will be considered.
2. A more complete problem statement.
3. An initial requirements statement specifying in general terms
which types of information and information processing are
needed, how urgent the situation is, and what constraints
seem to be in place on a systems solution.
4. A request for resources of people, time, and money to
develop the information requirements and system functional
specifications.
5. A time line indicating when the project team will perform
various steps of the project.
6. A business case or justification for continuing with the
project. [HOFFER, GEORGE & VALACICH, 1996]

85
Beginning to plan a project by breaking it into three major
activities.
Data Entry Design
Input Design
Output Design
Data Organization
Design
Implementation
Evaluation
Implementation
Data gathering
Data Flow and Decision Analysis
Proposal Preparation
Analysis
Break
apart the major
activities into
smaller ones.

86
PLANNING INCLUDES ALL OF THE ACTIVITIES
REQUIRED TO:
1. Select a systems analysis team
2. Assign members of a team to appropriate
projects
3. Estimate the time required to complete each
task
4. Schedule the project so that tasks are
completed in a timely fashion.

87
ACTIVITY PLANNING AND CONTROL
1. Estimating Time Required
The systems analyst’s first decision is to determine the
amount of detail that goes into defining the activities.
The lowest level of detail is the Systems Development
Life Cycle (SDLC) itself, while the highest extreme is to
include every detailed step.
Sometimes the most difficult part of project planning is the
crucial step of estimating the time it takes to complete
each task or activity.

88
Refining the planning and scheduling of analysis activities by
adding detailed tasks and establishing the time required to
complete these tasks.
3
2
2
8
3
4
4
5
3
Weeks
Required
Perform Cost / Benefit Analysis
Prepare Proposal
Present Proposal
Proposal
Preparation
Conduct Interviews
Administer Questionnaires
Read Company Reports
Introduce Prototype
Observe Reactions to Prototype
Data Gathering
Analyze Data Flow
Data Flow and
Decision Analysis
Detailed Activity

89
2. Gantt Charts for Project Scheduling
Advantages:
It is essentially a chart on which bars represent each
task or activity.
1. Its simplicity
2. The bars representing activities or tasks are drawn to
scale; that is the size of the bar indicates the relative
length of time it will take to complete each task.
The System analyst will find not only that this
technique is easy to use but also that it lends itself to
worthwhile communication with end users.

90
 Using a two-dimensional Gantt Chart for planning
activities that can be accomplished in parallel.
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Activity
Incomplete Activity
Completed Activity
Partially Completed Activity
Present proposal
Prepare Proposal
Perform Cost / Benefit
Observe reactions
Introduce Prototype
Analyze Data Flows
Read Company
Records
Administer
Questionnaires
Conduct
Interviews

91
3. PERT Diagrams
PERT is an acronym for Program Evaluation and
Review Techniques.
A program (project) is represented by a network of nodes
and arrows that are then evaluated to determine:
1. Critical activities
2. Improvement of the schedule if necessary
3. And review progress once the project is
undertaken.
Was developed in the late 1950s for use in the U.S.
Navy’s Polaris nuclear submarine project
is useful when activities can be done in parallel
rather than in sequence.

92
THE CIRCULAR NODES ARE PRESENT TO:
1. Recognize that an activity is completed.
2. Indicate which activities need to be completed
before a new activity may be undertaken
(precedence).
Critical path –is determined by calculating the longest path,
it is defined as the path that will cause the
whole project to fall behind even if one day
delay is encountered on it.
Events –are circles on the PERT diagram, and can be
identified by numbers, letters, or any other
arbitrary form of designation.

93
REASONS FOR USING A PERT DIAGRAM
OVER A GANTT CHART:
1. Easy identification of the order of precedence.
2. Easy identification of the critical path and thus
critical activities.
3. Easy determination of slack time.

94
Listed activities for use in drawing a PERT diagram.
Activity Predecessor Duration
A Conduct Interviews
B Administer Questionnaires
C Read Company Reports
D Analyze Data Flow
E Introduce Prototype
F Observe Reactions to Prototype
G Perform Cost / Benefit Analysis
H Prepare Proposal
I Present Proposal
None
A
None
B,C
B,C
E
D
G
H
3
4
4
8
5
3
3
2
2

95
 A completed PERT diagram for the analysis
phase of a systems project.
10
20
30 50 60 70 80
40
A,3
C,4
B,4
D,8
E,4 F,3
G,3 H,2 I,2
In this example, there are four paths:
10-20-30-50-60-70-80
10-20-30-40-60-70-80
10-30-50-60-70-80
10-30-40-60-70-80
The longest path which
takes 22 days.

96
MANAGING ANALYSIS AND DESIGN ACTIVITIES
2. Setting Project Productivity Goals
–systems analysts are accustomed to thinking about the
productivity goals for employees who show tangible outputs
such as the number of entries keyed in per minute, or the
number of items scanned per second.
1. Communication Strategies for Managing Teams
–a way to organize your thinking about teams is to visualize
them as always seeking a balance between
accomplishing the work at hand and maintaining the
relationships among team members.

97
GOALS NEED TO BE FORMULATED AND AGREED
BY THE TEAM SHOULD BE BASED ON:
Using the hints or methods for estimating time required
and coupling them with experience will enable the team
to set worthwhile productivity goals.
1. Team member’s expertise
2. Former performance
3. And the nature of the specific project

98
3. Motivating Project Team Members
4. Avoiding Project Failures
–motivation is an extremely complex but a good one to
consider.
–setting goals can also motivate team members by clarifying
for them and others what must be done in order to get
results. [KENDALL & KENDALL, 1999]
–management along with the feasibility studies are usually
the best defenses possible against taking on projects that
have a high probability of failure.
–the decision process of your team must be open stand up to
scrutiny from those outside of it and the team members
should consider that their reputation and standing in the
organization are inseparable from the projects they accepts.

99
 Legal and Contractual Feasibility
The process of assessing potential legal and contractual
ramifications due to the construction of a system.
Typically, legal and contractual feasibility is a greater
consideration if your organization has historically used
an outside organization for specific systems or services
that you now are considering handling yourself.
Contractual Obligations my Involve in:
1. Ownership of software used in joint ventures
2. License agreements for use of hardware or software
3. nondisclosure agreements with partners
4. Or elements of a labor agreement

100
 Political Feasibility
The process of evaluating how key stakeholders within
the organization view the organization.
Since an information system may affect the distribution
of information within the organization, and thus the
distribution of power, the construction of an IS can have
political ramifications.

101
The process of systematically selecting representative
elements of a population
Helps accelerate the process by gathering selected data
rather than all data for the entire organization
1. Containing costs
2. Speeding up the data gathering
3. Improving effectiveness
4. Reducing bias
REASONS OF SA TO SELECT REPRESENTATIVE SAMPLE
OF DATA TO EXAMINE:
Sampling and Investigating Hard Data

102
STEPS THAT SA MUST FOLLOW TO DESIGN A
GOOD SAMPLE ARE:
1. Determining the Data to be Collected or Described
–SA needs a realistic plan about what
will be done with the data once it is collected
–duties and responsibilities of systems analyst at this
point are to identify the variables, attributes, and
associated data items that needed to be gathered in
the sample.
2. Determining the Population to be Sampled
–SA has to determine whether the
population should include only one level of
organization, all levels, or even the reactions of
customers if necessary.

103
3. Choosing the Type of Sample
a. Convenience Samples
– the easiest to arrange but it is also the most
unreliable
– unrestricted, non probability samples
Example:
SA put a notice in a company newsletter asking
for everyone interested in the new sales performance
to come to a meeting at 1:00 on Tuesday.
b.Purposive Sample
– is based on judgment
– still non probability sample but moderately reliable
– SA can choose a group of individuals who appear
knowledgeable and who are interested in the new
information system.

104
c. Simple Random Sample
– not practical, especially when sampling involves
documents and reports
– a numbered list of population should be obtain to ensure
that each document or person in the population has an
equal chance of being selected.
i. Systematic Sampling-simplest method of probability
sampling
ii. Stratified sampling- the process of identifying
subpopulations, or strata, and then selecting objects or
people for sampling within the subpopulations.
iii. Cluster Sampling-the systems analyst select a
group of documents or people to study.
d. Complex Random Samples that are most appropriate
for the SA are:

105
4. Deciding on the Sample Size
– it is important to remember that the absolute number is
more important in sampling than the percentage of
population.
– it is necessary to set a sample size greater that one but
less than the size of the population itself.
– if each of the documents in a population contained
exactly the same information as every other
document, a sample size of one would be sufficient.
Sample Size Decision- often depends on the cost
involved or the time required by the systems analyst-
or even the time available by people in the
organization.

106
TYPES OF HARD DATA:
1. Analyzing Quantitative Documents
a. Reports used for decision making
– SA needs to obtain some of the documents such as
reports regarding the status of the inventory, sales, or
production that are used in running the business.
– Many of these reports are not complex, but they
serve mainly a feed back for quick action.
– Many summary reports are used by decision makers
to provide background information, spot exceptions to
normal occurrences, and afford strategic overviews of
organizational plans.
b. Performance Reports
– its important function is to assess the size of the gap
between actual and intended performance.

107
c. Records
– provide periodic updates of what is occurring in the
business.
– Many summary reports are used by decision makers to
provide background information, spot exceptions to
normal occurrences, and afford strategic overviews of
organizational plans. [KENDALL & KENDALL, 1999]
i. Checking for errors in amounts and totals
ii. Looking for opportunities for improving the recording form
design
iii. Observing the number and type of transactions
iv. Watching for instances where the computer can simplify
the work (that is, calculations and other data
manipulation.
WAYS OF ANALYST IN INSPECTING RECORD:

108
d. Data Capture forms
–understanding the system that is currently in place should
be done before you set out to change the information
flows in the organization.
i. Collect examples of all the forms in use, whether officially
sanctioned by the business or not (official vs. bootleg
forms).
ii. Note the type of form (whether printed in-house,
handwritten, computer-generated in-house on-line,etc.).
iii. Document the intended distribution pattern.
iv. Compare the intended distribution pattern with who
actually receives the form.
Steps in creating a catalog of form to help you understand
the information flow that is currently in use in the business:

109
2. Analyzing Qualitative Documents
Guidelines that can help analyst to take a systematic
approach to this sort of analysis are:
a. Examine documents for key or guiding metaphors.
b. Look for insiders versus outsiders or an “us against
them” mentality in documents.
c. List terms that characterize good or evil and appear
repeatedly in documents.
d. Recognize a sense of humor, if present.

110
Qualitative Documents
a. Memos
– are not kept or they are made available only to those who
have “a need to know”, as defined in organizational
policy.
– analysis of memo content will provide you with a clear
idea of the values, attitudes, and beliefs of
organizational members.
b. Signs on bulletin boards or in work areas
– serve as subtle reinforces of values to those who
read them.
– it is also instructive to note whom signs are intended
or and to find out through interviews whether
organizational members are held accountable for
acting on the information posted.

111
c. Corporate Web Sites
– web sites accessible to the public should also be viewed
by the analyst.
– examine the contents for metaphors, humor, use of design
features (such as color), and the meaning and clarity of
any messages provided.
d. Manuals
– it should be analyze following the four guidelines spelled
out previously.
–examining manuals, both printed and on-line,
systematically will give you a picture of the way things
ought to happen.
– writers of manual are allowed more elaboration in
making a point than is typically accorded to those writing
memos or posting signs.

112
e. Policy Handbooks
– while this documents typically cover both areas of
employee and corporate behavior, you can be primarily
concern with those that address policies about computer
services, use, access, and charges.
– policies are larger guidelines that spell out the
organization ideal of how members should conduct
themselves in order to achieve strategic goals.
– examining policies allows the systems analyst to gain an
awareness of the values, attitudes, and beliefs that are
guiding the corporation

113
Planning for Interview:
1. Read Background Material – read and as much background
information about the interviewees and their organization
as possible.
2. Establish Interviewing objectives – the use of background
information being gathered as well as own experienced to
establish interview objectives.
Kinds of Information sought
in interviewing…….
Opinions
Feelings
Informal
Procedures
Goals
Interviewing

114
Key Areas of Decision-Making:
a. Information sources
b. Information formats
c. Decision-making frequency
d. Qualities of information
e. Decision-making style
3. Decide Who to Interview
– when deciding who to interview, include key people at all
levels who will be affected by the system in some manner.
– strive for balance so that as many user’s needs are
addressed as possible.

115
4. Prepare the Interviewee
– prepare the person to be interviewed by calling ahead or
sending an e-mail message and allowing the interviewee
a time to think about the interview.
– interview should be kept at 45 minutes to an hour at the
most.
5. Decide on Question Type and Structure
– proper questioning techniques are the heart of
interviewing, so better write the questions to cover the
key areas of decision making that you discovered when
you ascertained interview objectives.

116
BIPOLAR QUESTION – is special kind of closed question, it
limits the interviewee even further by only allowing a
choice on either pole, such as yes or no, true or false,
agree or disagree.
QUESTION TYPES:
a. Open-Ended Questions
– include those questions such as “what’s” and “how’s”
that answers most likely their opinions.
b. Closed Questions
– answers finite number, such as ‘none’, ‘one’, or ‘fifteen’.
– limits the response available to the interviewee.

117
BENEFITS OF USING OPEN-ENDED QUESTIONS:
i. Putting the interviewee at ease.
ii. Allowing the interviewer to pick up on the interviewees
vocabulary, which reflects his/her education, values,
attitudes and beliefs. iii. providing richness of detail..
iii. revealing avenues of further questioning that may have
gone untapped.
iv. making it more interesting for the interviewee.
v. allowing more spontaneity.
vi. making phrasing easier for the interviewer.
vii. using them in pinch if the interviewer is caught
unprepared.

118
DRAWBACKS OF USING OPEN-ENDED QUESTION:
i. asking question that may result in too much
irrelevant detail.
ii. Possibly losing control of the interview.
iii. Allowing responses that may take too much time for
the amount of useful information gained.
iv. Potentially seeming that the interviewer is
unprepared.
v. Possibly giving the impression that the interviewer is
on a “fishing expedition” with no real objective for
the interview.

119
BENEFITS OF USING CLOSED QUESTIONS:
i. Saving time
ii. easily comparing interviews
iii. getting to the point
iv. Keeping control over the interview
v. Covering lots of ground quickly
vi. Getting to relevant data

120
DRAWBACKS OF USING CLOSED QUESTION:
i. Being boring for the interviewee
ii. Failing to obtain rich detail( due to the fact that the
interviewer supplies the frame of reference for the
interviewee)
iii. Missing main ideas for the preceding reason
iv. Failing to build rapport between interviewer and
interviewee. .

121
Reliability of data
Breadth and depth
Precision of data
Interviewer skill required
Ease of analysis
Efficient use of time
Open-ended closed
low
low
low
high
high
high
little
little
much
much
difficult easy
Attributes of Open-Ended and Closed Question

122
c. Probes
– the strongest “probe” or “follow-up” is the simplest “why”
– if done in a systematic and determined manner, your
probing will be acknowledged as a sign that you are
listening to what’s being said, thinking it through, and
responding appropriately.
– it allows the systems analyst to follow up questions to
get more detailed responses.
EXAMPLES:
Why?
What makes you feel that way?

123
QUESTION PITFALLS
1. Avoiding leading questions
– leading questions tend to lead the interviewee into a
response that using seem to one
EXAMPLE:
You agree with other managers that inventory
control should be computerized, don’t you?

124
2. Avoiding double-barreled questions
– are those that use only one question mark for what are
actually two separate questions.
– double-barreled question is poor choice because
interviewees answers only one question (purposely or
not), or may mistake which question they are answered
and draw the wrong conclusion.
EXAMPLE:
What decisions are made during a typical day and
how do you make them?

125
ARRANGING QUESTIONS IN A LOGICAL SEQUENCE:
1. Pyramid Structure
– inductive organization of interview questions can be
visualized as having a pyramid shape.
– the interviewer begins with very detailed, often closed,
questions.
– should be use if you believe your interviewee needs to
warm up to the topic.
– useful if the interviewee seems reluctant to address
the topic.
EXAMPLE:
If you are interviewing someone who has told you over
the phone that he or she does not need to talk with you
because that person already knows what is wrong with the
forecasting model, you should be probably structure the
interview as a pyramid.

126
Pyramid Structure
[KENDALL
&
KENDALL,
1999]
what
precisely
is the
problem in your
forecasting model?
Have you considered
obtaining more up-to-
date information?
What do you think would make
forecasting here more effective?
In general, how do you feel about
forecasting ?
start with a
specific
question
and end
with a
general one

127
2. Funnel Structure
– the interviewers takes a deductive approach by beginning
with generalized, open-ended questions and then narrowing
the possible responses by using closed questions.
– provides an easy, non-threatening way to begin an
interview.
and end
with a
specific one
What are your reactions to the new system?
What computers do you use?
What is the cost of the new
computer system?
Is the new computer
system worth
the
cost?
begin with
a general
question

128
3. Diamond-Shaped Structure
– is the best because it is the combination of the two previous
structures.
– begins with easy, closed questions that provide a warm-up
to the interview process.
– in the middle of the interview, the interviewee is asked for
opinions for broad topics that obviously have no “right”
answers.
– the chief advantage of this structure is keeping your
interviewee’s interest and attention through a variety of
questions. [KENDALL & KENDALL, 1999]
Remember that once you know how to ask the right
questions at the right time, you have many options for
sequencing them. [KENDALL & KENDALL, 1999]

129
How
do you make
your distribution
decisions?
Do you think you can teach
someone else to make these decisions?
What would it take to setup decision rules so
others can benefit from your experience?
Are computers helpful in making
decisions?
Can a computer make
these distribution
decisions?
begin with a
specific
question,
move toward
general
questions,
and end with
a specific
question.

130
Evaluation
Unstructured Structured
difficult
high
easy
low
little
little
high
much
great
low
Amount of time required
Training required
Allows spontaneity
Provides interviewee insight
flexibility
Interviewer control
Precision
Reliability
Breadth and Depth
Much needed
Structured vs. Unstructured Interviews
much opportunity
low
low
low
high
limited
very little
high
high

131
when using
Questionnaires…….
attitudes
behavior
characteristics
beliefs
Questionnaires
Once you have determined that you have good cause to
use a questionnaire and have pinpointed the objectives to
be fulfilled through its use, you can begin formulating
questions.

132
2. A large number of people are involved in the systems project,
and it is meaningful to know what proportion of a given group
(for example, management) approves or disapproves of a
particular feature of the proposed system.
3. You are doing a exploratory study and want to gauge overall
opinion before the systems project is given any specific
direction.
4. You wish to be certain that any problems with the current
systems are identified and addressed in follow-up interviews.
Some guidelines to help you decide whether use
of Questionnaires is appropriate:
1. The people you need to question are widely dispersed
(different branches of the same corporation)

133
1. Open-Ended Questions
– are particularly well-suited to situations in which you want to
get at organizational member’s opinions about some
aspect of the system, whether product or process.
– when it is impossible to list effectively all of the possible
responses to the question.
Basic question types used on the questionnaire are:
2. Closed Questions
– should be used when the systems analyst is able to list
effectively all the possible responses to the question and
when all the listed responses are mutually exclusive, so
that choosing one precludes choosing any of the others.
– when you want to survey a large sample of people.

134
Speed of completion
Ease of preparation
Breadth and depth
Ease of analysis
Exploratory nature
Open-ended closed
slow
high
high
fast
low
low
Difficult
easy
easy
Difficult
Trades-off between the use of open-ended and
closed questions on Questionnaires

135
Some guidelines to use when choosing language of your
questionnaire:
1. Use the language of respondents whenever possible. Keep
wording simple.
2. Work of being specific rather than vague in wording.
However, avoid overly specific question as well.
3. Keep questions short.
4. Do not patronize respondents by talking down to them
through low-level language choices.
5. Avoid bias in wording. This also means avoiding
objectionable questions
6. Target questions to the right respondents. Don’t assume too
much knowledge.
7. Ensure that questions are technically accurate before
including them.
8. Use software to check whether the reading level is
appropriate for the respondents.[KENDALL & KENDALL, 1999]

136
Is the process of assigning numbers or other symbols to an
attribute or characteristic for the purpose of measuring it.
Reasons for Scaling
1. To measure the attitudes or the characteristics of the people
answering the questionnaires.
2. To have the respondents judge the subjects of the
questionnaire.

137
Four different forms of measurement scales:
1. Nominal scale –are used to classify things.
2. Ordinal scale –allows classification and also implies rank
ordering.
3. Interval scale –posses the characteristic that the interval
between each of the numbers are equal but
there is no absolute zero.
4. Ratio scale –when the interval is equal and there is an
absolute zero. used less often by the
systems analyst.

138
Reasons for Scaling
1. Validity –is the degree to which the questions measures
what the analyst intends to measure.
2. Reliability –measures consistency.
a. External Consistency – if the same result obtained both
times when question was administered once
and then again under the same conditions.
b. Internal Consistency – if the questionnaire contains
subparts and these parts have equivalent
results.

139
Observing the decision maker and the decision maker’s
physical environment are important information-gathering
techniques for the systems analyst.
activities
relationships
influence
messages
when Observing decision-
maker behavior and the
office environment.
Observation

140
The following steps aid in observing a
manager’s typical decision making activities:
1. Decide what is to be observed (activities).
2. Decide at what level of concreteness activities are to be
observed that is, will the analyst observed that “The manager
freely shared information with subordinates” or make a much
more concrete observation such as “Manager sends a copy
of the same memo to three subordinates”?). Determining the
level of concreteness of observation will also dictate the
amount of inference in each observation and subsequently
the amount of interpretation needed once observations are
made.
3. Create categories that adequately capture key activities.
4. Prepare appropriate scales, checklists; or other materials for
observation.
5. Decide when to observe. [KENDALL & KENDALL, 1999]

141
Time Sampling Event Sampling
Advantages
• Cuts down on bias
with randomization of
observations
• Allows a
representative view of
frequent activities
• Allows observation of
behavior as it unfolds
• Allows observation of
an event designated
as important
Disadvantages
• Gathers data in a
fragmented fashion
that doesn’t allow
time for a decision to
unfold
• Misses infrequent but
important decisions
• Takes a great deal of
analyst’s time
• Misses a
representative
sample of frequent
decisions

142
Methods for Structured Observation of the
environment is referred to as STROBE:
1. It provides a standard methodology and standard
classification for the analysis of those organizational
elements that influence decision making.
2. It allows other systems analyst to apply the same
analytic framework for the same organization.
3. It limits analysis to the organization as it exists during
the current stage in its life cycle.

143
FILMIC ELEMENTS ORGANIZATIONAL ELEMENTS
Set location
People position within a
frame
Stationary objects
Props (movable objects)
Office location
Decision maker’s placement in an
office (i.e., desk placement)
File cabinets, bookshelves, and
equipment for storing information
Calculator, PCs, and other items
used for processing information
Analogy between filmic elements for observation
and strobe

144
FILMIC ELEMENTS ORGANIZATIONAL ELEMENTS
External objects
(brought in from other
scenes)
Lighting and color
Costumes
Trade journals, newspapers, and
items used for external
information
Office lighting and color
Clothing worn by decision makers

145
Characteristics of Decision-
makers
Corresponding Elements in
the Physical Environment
Gathers information informally Warm, incandescent lighting
and colors
Seeks extra organizational
information
Trade journals present in office
Processes data personally Calculators, PCs present in
office
Stores information personally Equipment/files present in
office
A summary of decision-maker characteristic that
correspond to observable elements in the physical
environment

146
Characteristics of Decision-
makers
Corresponding Elements in
the Physical Environment
Exercises power in decision
making
Desk placed for power
Exhibits credibility in decision
making
Wears authoritative clothing
Shares information with others Office easily accessible

147
Prototyping of information system, is a worthwhile
technique for quickly gathering specific information about
users’ information requirements.
user
reactions
user
suggestions
innovations
revision
plans
when Prototyping…
Prototyping

148
KINDS OF PROTOTYPES
1. Patched-up
– it has to do in with constructing a system that works but
is patched up or patched together.
–in engineering this approach is refer to as
breadboarding-creating a patched together, working
model of an integrated circuit.
2. Non-operational Prototype
–is that of a non working scale model which is set up to
test certain aspects of the design.
–a non working scale model of an information system
might be produce when the coding require by the
applications is too extensive to prototype but when the
useful idea of the system can be gained through the
prototyping of the input and the output only.

149
Output
Input Process
A non operational prototype may seek users’ opinions on
the interfaces (input and output).

150
3. First-Of-A-Series
–involves a first full scale model of a system, often
called a pilot.
–it is useful when many installations of the same
information systems are plan.
FULL-SCALE WORKING MODELS - allows users to
experience realistic interaction with the new system, yet
it minimizes the cost of overcoming any problems that it
presents.
4. Selected Features
–concerns with building an operational model that
includes some, but not all of the features that the
final systems will have.
–when this kind of prototyping is done the system is
accomplished in modules, so that if the features that
are prototyped are evaluated successfully.

151
Facility 1
Facility 3
Facility 2
A First-Of-A-Series Prototype is a working model that will
be used elsewhere if its is successful.

152
Facility 1
Facility 3
Facility 2
A First-Of-A-Series Prototype is a working model that will
be used elsewhere if its is successful.

153
GUIDELINES FOR DEVELOPING A PROTOTYPE
1. Working in manageable modules
–one that allows users to interact with its key features yet
can be built separately from other system module.
2. Building the prototype rapidly
–analyst can use prototyping to shorten this gap by using
traditional information-gathering technique to pinpoint
prominent information requirements and then they can
quickly make decisions that bring forth a working model.
–it is important to emphasize that at this stage in the life
cycle, the analyst is still gathering information about what
users need and want from the information system.
–when this kind of prototyping is done the system is
accomplished in modules, so that if the features that are
prototyped are evaluated successfully.

154
3. Modifying the prototype
–making the prototype modifiable means creating it in
module that are not highly interdependent.
–a helpful attitude that demonstrates to users how
necessary their feedback is if the system is to improve.
4. Stressing the user interface
–to easily interact with the systems prototype.
–must be well developed to enable users to to pick-up the
system quickly.
–on-line, interactive systems using GUI interfaces are
ideally suited to prototype.

155
DISADVANTAGES ADVANTAGES
• Difficult to manage
prototyping
• Users and analyst
may adopt a prototype
as a completed
system when it is
inadequate
• Potential exists for changing the
system early in its development
• Opportunity exists to stop
development on a system that is
not working
• May address user needs and
expectations more closely.
Disadvantages and Advantages of prototyping

156
THREE MAIN WAYS A USER CAN BE OF HELP IN
PROTOTYPING:
1. Experimenting with the prototype
–allows user the reality of hands-on interaction.
–limited functionality along with the capability to send
comments to the systems team ca be included.
2. Giving open reactions to the prototype
–making users secure enough to give an open reaction is
part of the relationship between analysts and users that
your team works to build.
–providing a private (relatively unsupervised) period for
users to interact with and respond to the prototype is
one way to insulate them from unwanted organizational
influences.

157
3. Suggesting to the prototype
–is their willingness to suggest additions to and/or
deletions from the features being tried.
–in the end it is the analyst responsibility to weigh this
feedback and translate it into workable changes where
necessary.

159
A graphical representation of data processes
throughout the organization
Advantages of the Data Flow approach:
1. Freedom from committing to the technical implementation
of the system too early.
2. Further understanding of the interrelatedness of the
systems and subsystems.
3. Communicating current system knowledge to users
through data flow diagrams
4. Analysis of a proposed system to determine if the
necessary data and processes have been defined.
DATA FLOW DIAGRAM

160
The four basic symbols used in Data Flow Diagram by
Gane & Sarson.
SYMBOLS MEANING EXAMPLE
Entity Student
Data Store 03 Student Master
Flow of Data New Student
Information
Student
Process Create
Student
Record
2.1

161
 External entity
– can either be a department, a business, a person, or a
machine
– also called a source or destination of data
 Flow of Data
– are the arrow that shows movement of data from one point
to another, with head of the arrow pointing toward the data’s
destination.
 Process
– A rectangle with rounded corner is used to occurrence of a
transforming process.

162
a.Assigned the name of the whole system when naming a
high-level process.
example: inventory control system.
b.To name a major subsystem, such as Inventory Reporting
Subsystem.
c.Use a verb-adjective-noun format for detailed processes.
VERB – describes the type of activity.
examples: compute, verify, prepare, print or add
ADJECTIVE – illustrates which specific output, such as
backordered or inventory, is produced.
examples:compute sales tax, print backordered report.
Process represent work being performed within the
system and should be named using one of the following
formats:

163
1. Creating the context diagram
– is the highest level in a data flow diagram and contains
only one process, representing the entire system.
– the initial context diagram should be an overview, one
including basic inputs, the general system, and outputs.
DEVELOPING DATA FLOW DIAGRAM
2. Drawing diagram 0 (the next level)
– is the explosion of the context
diagram and may include up to nine processes.
3. Creating child diagrams (more detailed levels)
– the process on diagram 0 that is exploded is called the
parent process, and the diagram that results is called the child
diagram.
– the primary rule for creating diagram, vertical balancing,
dictates that child diagram cannot produce output or receive
input that the parent process is not also produce or receive.

164
 Context
Diagrams
(above)
Can be
“exploded”
into
Diagram 0
(below).
System
Name
0
Entity 1
Entity 2
Entity 1
Entity 2
Entity 3
Input A
Input B
Output C
Entity 3
General
Process
AAA
1
General
Process
BBB
2
General
Process
DDD
4
General
Process
CCC
3
01 Data Store 1 02 Data Store 2
Data Flow B
Data Flow D
Input A
Input B
Output C

165
4. Checking the diagram for errors
Data Flows
should not split
into two or more
different data
flows
processes need
to have at least
one input data
flow and one
output data flow
all Data Flows
must either
originate or
terminate at a
process
1
1
3
2
2

166
Derive the logical
data flow diagram
for the current
system by
examining the
physical data flow
diagram and
isolating unique
business activities.
Create the logical
data flow diagram
for the new system
by adding the
input, output, and
processes
required in the
new system to the
logical data flow
diagram for the
current system.
Derive the physical
data flow diagram
by examining
processes on the
new logical diagram.
Determine where
the user interfaces
should exists, the
nature of the
processes, and
necessary data
stores.
The progression of models from physical to logical…
Current logical
data flow diagram
New logical
data flow diagram
New Physical
data flow diagram

167
LOGICAL DATA FLOW DIAGRAM
1. Better communication with users.
2. More stable system.
3. Better understanding of the business by analyst.
4. Flexibility and maintenance.
5. Elimination of redundancies and easier creation of the
physical model. [KENDALL & KENDALL, 1999]
Has a business emphasis and helps the analyst to
understand the business being studied, to grasp why
procedures are performed, and to determine the expected
result of performing a task.
Are often more stable because they are based on business
events and not on a particular technology or method of
implementation.
Advantages in using a logical diagrams:

168
PHYSICAL DATA FLOW DIAGRAM
Also have intermediate data stores-often, a transaction file.
Shows how the system will be constructed.
Advantages of data flow diagram:
1. Clarifying which processes are manual and which are
automated.
2. Describing processes in more detail than do logical
DFDs.
3. Sequencing processes that have to be done in a
particular order.
4. Identifying temporary data stores.
5. Specifying actual names of files and printouts.
6. Adding controls to ensure the processes are done
properly.

169
SIX REASONS FOR PARTIONING DATA FLOW DIAGRAMS:
1. Different user groups – if the processes performed by
several different users groups, often at different physical
location within the company, they should be partitioned in
different computer programs.
2. Timing – examined the timing of the processes. If two
processes execute at different times, they cannot be grouped
into one program.
3. Similar tasks – if two processes performed similar tasks and
both are batch processes, they may be grouped into one
computer program.
4. Efficiency – several batch processes may be combined into
one program for efficient processing.
5. Consistency of data – processes may be combined into one
program for consistency of data.
6. Security – processes may be partitioned for security reasons.

170
Is a reference work of data about data(that is, metadata),
one that is compiled by systems analysts to guide them
through analysis and design.
The data dictionary may be used to:
1. Validate the data-flow diagram for completeness and
accuracy.
2. Provide the starting point for developing screens and
reports
3. Determine the contents of data stored in files.
4. Develop the logic for data-flow diagram processes.
DATA DICTIONARY

171
DATA REPOSITORY
While the data dictionary contains information about data
and procedures, a larger collection of project information.
The Repository concept is one of the many impacts of
CASE tools and may contain the following:
1. Information about the data maintained by the system,
including data flow, data stores, record structures, and
elements.
2. Procedural logic.
3. Screen and report design.
4. Data relationships, such as how one data structure is linked
to another.
5. Project requirements and final system deliverables.
6. Project management information, such as delivery
schedules, achievements, issues that need resolving, and
project users. [KENDALL & KENDALL, 1999]

172
Data Flow
Diagram
Data Dictionary
How the data dictionaries relate to data flow diagram
[KENDALL & KENDALL 1999]
Data Store
Data Flow
Description
Form
XXX
Data
Structures
XXX
Data
Elements
XXX
Data Store
Description
Form
XXX
Data
Structure
XXX
Data
Elements
XXX
Data Flow

173
-should be described first for all input and output, followed by
the intermediate data flow and the data flow to and from
data stores.
-the detail of each data flow is described using the data
structure, a group of elements sometimes called fields.
 DATA STRUCTURES
-are usually described using algebraic notation like:
• = means “is composed of”
• + means “and”
• { } indicate repetitive elements
• [ ] represents an either/or situation
• ( ) represents an optional elements
-allows the analyst to produce a view of elements that make
up the data structure, along with information about those
elements.
 DATA FLOW

174
 DATA ELEMENTS
-each of it should be defined once in a data dictionary and
may also be entered previously on an element description
form.
 DATA STORES
-all base elements must be stored with in the system.
-are created for each different data entity being stored.
-when data flow base elements are grouped together to
form a structural record, it is created for each unique
structural
record.

175
CREATING THE DATA DICTIONARY
1. Analyzing Input and Output
An important step in creating the data dictionary is to
identify and categorize system input and output data
flow.
2. Developing data store
Contains information of a permanent (item number,
description, and item cost) or semi-permanent nature.
It is acceptable to start with some information and then
add more information to the data store when you
analyze more data flows and realize more information to
be added.

176
The analyst first determine the conditions-that is,
occurrence that might affect the outcome of
something else.
Conditions, condition alternatives, actions, and
action rules must be known in order to design
systems systems for structured decision.
STRUCTURED DECISION

177
THREE ALTERNATIVES FOR DECISION ANALYSIS OF
STRUCTURE DECISIONS:
1. Structured English
when structured decisions are not complex, this is the
appropriate technique in analyzing the decisionprocess.
it is based on:
a. structured logic or instructions organized into nested
and grouped procedures.
b. simple English statements such as add, multiply,
move, and so on.

178
Writing Structured English
• Express all logic in terms of sequential structures,
decision structures, case structures, or iterations.
• Use and capitalized accepted keywords such as IF,
THEN, ELSE, DO, UNTIL, and PERFORM.
• Indent blocks of statements to show their hierarchy
(nesting) clearly.
• When words or phrases have been defined in a data
dictionary, underline those words or phrases to signify
that they have a specialized, reserved meaning.
• Be careful when using “and” and “or”, and avoid
confusion when distinguishing between “greater than”
and “greater than or equal to” and like relationships.

179
Using structured English for analyzing the decision
process for a simple sequential decision
Calculate Base Premium
IF construction is brick
THEN deduct 10 percent of base to total
ENDIF
IF owner chooses $100 deductible
THEN add 15 percent of subtotal
ENDIF
IF home has burglar alarm
THEN deduct 5 percent of adjusted subtotal
ENDIF

180
Structured English Type example
Sequential Structure
A block of instructions where
no branching occurs
Action #1
Action #2
Action #3
Decision Structure
Only IF a condition is true,
complete the following
statements; otherwise jump to
the ELSE
IF Condition A is true
THEN implement Action A
ELSE implement Action B
ENDIF
Example of logic expressed in a sequential structure and
decision structure

181
Structured English
Type
Example
Case Structure
A special type of decision,
structure where the cases
are mutually exclusive (if
one occurs the others
cannot)
IF Case #1 implement Action #1
ELSE IF Case #2
implement Action #2
ELSE IF Case #3
implement Action #3
ELSE IF Case #4
implement Action #4
ELSE print error
ENDIF
Iteration
Blocks of Statements that
are repeated until done
DO WHILE there are Customers.
Action #1
ENDDO
Example of logic expressed in a case structure and an iteration

182
Conditions and Action Rules
Conditions Condition Alternative
Actions Action Entries
The standard format used for presenting a decision table
2. Decision Tables
is a table of rows and columns, separated into four
quadrants.
when the it is used to determine which actions need to
be taken, the logic moves clockwise beginning from the
upper left.

183
3. Decision Trees
are used when complex branching occurs in a
structured decision process.
Analyst tree
does not contain probabilities and outcomes, because
in systems analysis trees are used mainly for identifying
and organizing conditions and actions in a completely
structured decision process.
Condition
2
can be thought
of as meaning
THEN
1
2
2
1
2
2
Condition
1
Action 4
Action 1
Condition
3
Condition
4
Action 2
Action 3
Means IF
Conventions for drawing a decision tree

184
CHOOSING A STRUCTURED DECISION ANALYSIS
TECHNIQUE:
1.Structured English when
a.There are many repetitious actions.
OR
b. Communication to end users is important.
2.Decision Tables when
a. Complex combinations of conditions, actions, and rules are
found. OR
b. You require a method that effectively avoids impossible
situations, redundancies, and contradictions.
3.Decision Trees
a. The sequence of conditions and actions is critical.
OR
b. When not every condition is relevant to every action (the
branches are different). [KENDALL & KENDALL, 1999]

185
Are those that are partially programmable but still require
human judgment.
DSS are most powerful when addressing semi-structured
decisions, since the DSS supports the decision maker in
all phases of decision making but does not mandate one
final answer. [KENDALL & KENDALL, 1999]
Decision Support System
Posses many characteristics that differentiate them from
other, more traditional Management Information System.
Supports the decision-making process through the
presentation of information that is designed for the
decision maker’s problem-solving approach and
application needs. [KENDALL & KENDALL, 1999]
SEMI-STRUCTURED DECISION

186
THREE MAJOR CONCERNS ARISE WHEN ANALYZING
SEMI-STRUCTURED DECISION SUPPORT SYSTEM:
1. Whether decision makers are primarily Analytic or heuristic
2. How decisions are made in the three problem-solving
phases of intelligence, design, and choice
3. The multiple-criteria methods that are useful in solving semi-
structured problems. [KENDALL & KENDALL, 1999]
Analytic Decision Maker Heuristic Decision Maker
• Learns by analyzing
• Users step-by-step procedure
• Values quantitative
information and models
• Builds mathematical models
and algorithms
• Seeks optimal solution
• Learns by acting
• Uses trial and error
• Values experience
• Rules on common sense
• Seeks Satisfying solution
KENDALL & KENDALL, 1999]

187
Common Bottlenecks in the three phases of Decision Making
Intelligence
Unable to identify the problem
Unable to define the problem
Unable to prioritize the problem
Design
Unable to generate alternative
Unable to quantify or describes Alternative
Unable to assign criteria, values weights,
and makings
Choice
Unable to identify a choice method
Unable to organize and present
information
Unable to select alternative

188
Decisions are made under
certainty, uncertainty, and risk,
which are determined by the
availability of information and
experience.
Certainty
Risk
Uncertainty
Information
and
experience
increase
certainty.

189
1. The degree of decision-making skill required
-relates back to the concepts of analytic and heuristic
decision makers
-is measured in the analytic and experience-based maturity
of the decision maker.
2. The degree of problem complexity
-DSS can help in this regard by encouraging the decision
maker to define the boundary of the system, and he/she b
would accomplish this goal by clearly defining the problem
and limiting the number of variables.
3. The number of decision criteria
-a manager concerned is dealing with a structured problem,
but most real-world problems have multiple, conflicting goals
and multiple decision criteria.
DIMENSIONS OF SEMI-STRUCTURED DECISIONS

190
Multiple-Criteria Decision Making
Approaches allow decision makers to set their own
priorities, and most allow the decision maker to perform
sensitivity analysis by asking “what-if” types of question
[KENDALL & KENDALL, 1999
Give the decision maker a more powerful way to
evaluate alternatives and the design phase of decision
making
[KENDALL & KENDALL, 1999
A decision involving multiple criteria may include
choosing a software package that is powerful, has clear
documentation, and is user friendly but inexpensive.

191
Systems proposal is a destination of all the
systems analyst has learned about the business
and about what is needed to improve its
performance.
In order to address information requirements
adequately, the systems analyst must used systematic
methods for acquiring hardware and software, must
identify and forecast future costs and benefits, and
must perform cost-benefit analysis.
PREPARING THE SYSTEM PROPOSAL

192
Ascertaining Hardware and Software Needs
The systems analyst needs to work along with user
to determine what hardware will be needed
Hardware determination can come only in
conjunction with determining information
requirements.
Knowledge of the organizational structure can also
be helpful in hardware decision.

193
Steps in choosing
hardware and software…
Steps in choosing
hardware and software…
Inventory
computer
hardware
Estimate
Workloads
Evaluate
hardware
Evaluate
Software
Choose
the vendor
Acquire the
computer
equipment

194
If an Updated Computer Hardware is an available,the
systems analyst needs to sit up one quickly and carry
through on it. You need to know:
1. The type of equipment - model number, manufacturer.
2. The status of the equipment operation - on order,
operating, and storage, in need of repair.
3. The estimated age of the equipment.
4. The physical location of the equipment.
5. The projected life of the equipment.
6. The department of person consider responsible for the
equipment.
7. The financial arrangement for the equipment - owned,
leased, or rented.

195
ESTIMATING WORKLOADS
Means that systems analyst formulate numbers
that represent both current and projected
workloads for the system, so that any hardware
obtain well posses the capability to handle current
and future workloads.

EVALUATING COMPUTER HARDWARE
Is the share responsibility of management, users, and
systems analysts.
Criteria that the Systems Analysts and Users should use to
evaluate performance of different systems hardware
include:
1. The time required for average transactions(including how
long it takes to input data and how long it takes to receive
output).
2. The total volume capacity of system(how much can be
processed at the sane time before the problem arises).
3. The idle time of the central processing unit.
4. The size of the memory provided.
196

197
ACQUISATION OF COMPUTER EQUIPMENT
Advantages Disadvantages
Buying • Cheaper that leasing or
renting over the long run
• The ability to change
system / Full control
• Provides tax advantages of
accelerated depreciation
• Initial cost is high
• Risk of obsolescence
• Risk of being stuck if choice was
wrong
• Full responsibility
Leasing • No capital is tied up
• No financing is required
• Leases are lower than
rental payments
• Company doesn’t owned the
system when lease expires
• Usually a heavy penalty or
terminating the lease
Renting • No capital is tied up
• No financing is required
• Easy to change systems
• Maintenance and insurance
are usually included
• Company doesn’t owned the
Computer
• Cost is very high because
vendors assumes the risk(most
expensive option)

198
Software Evaluation
1. Performance Effectiveness
a. Able to perform required tasks
b. Able to perform all task that maybe desired at some time
in the future
c. Well design display screens
d. Adequate capacity
2. Performance Efficiency
a. Fast response time d. Efficient storage of data
b. Efficient input e. Efficient back-up
c. Efficient output
3. Ease of Use
a. Satisfactory users interface e. Adequate feedback
b. Help menus available f. Good error recovery
c. Readme files for last minute changes
d. Flexible interface [KENDALL & KENDALL, 1999]

199
4. Flexibility
a. Options for input
b. Options for output
c. Usable with other software
5. Quality of Documentation
a. Good organization
b. Adequate on-line tutorial
c. Web site with FAQ
6. Manufacturer Support
a. Tech support hotline
b. Newsletter or e-mail
c. Web site with downloadable product updates

200
IDENTIFYING BENEFITS AND COSTS
Tangible Benefits
Are advantages measurable in dollars that accrue to the
organization through the use of information system
Examples:
Increase in the speed processing
The advantage of the computer’s superior calculating
power
Intangible Benefits
Include improving the decision making process, in
enhancing accuracy, becoming more competitive in
customer service, maintaining a good business image, and
increasing job satisfaction for employees by eliminating
tedious tasks.

201
Tangible Costs
Are the cost of the equipment such as computers and
terminals, the cost of resources, the cost of systems
analysts’ time, the cost of programmers’ time, and other
employees’ salaries.
Intangible Costs
Include losing a competitive edge, losing the reputation
for being first with an innovation or the leader in a field
declining company image due to increased customer
dissatisfaction, and effective decision making due to
untimely or inaccessible information.

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