Chapter 3
Introduction to Systems Development and Systems Analysis
3-1
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Learning Objectives
Explain the five phases of the systems development life
cycle.
Discuss the people involved in systems development and
the roles they play.
Explain the importance of systems development planning
and describe planning techniques.
Discuss the various types of feasibility analysis and calculate
economic feasibility.
Explain why system changes trigger behavioral reactions,
What form this resistance to change takes, and how to avoid or
minimize the resulting problems.
Discuss the key issues and steps in systems analysis.
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Why Update Systems?
User or business changes
Technology changes
To improve business process
Create competitive advantage
Increase productivity gains
Integrate multiple systems
Aging systems need replacement
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Software Development Problems
Most software development projects deliver less, cost
more, and take longer than expected.
Standish Group found that:
70 percent of software development projects were late
54 percent were over budget
66 percent were unsuccessful
30 percent were canceled before completion
American Management Systems found that:
75 percent of all large systems are not used
Not used as intended, or
Generate meaningless reports or inaccurate data
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Systems Development Life Cycle
(SDLC)
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SDLC Steps
System Analysis
Information about system needs, costs, and so on are gathered.
Conceptual Design
Gather system/user requirements.
Physical Design
Concepts are translated into detailed specifications.
Implementation and Conversion
New hardware and software are installed and tested.
Employees are hired and trained or existing employees relocated.
Processing procedures are tested and modified.
Standards and controls for the new system are established and system
documentation completed.
Operation and Maintenance
New system is periodically reviewed.
Modifications are made as problems arise or as new needs become evident.
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Systems Analysis Activities
Initial Systems Feasibility Information Systems
Investigation Survey Study needs and Analysis
•What’s the •Gain •Determine System Report
Problem Understanding of Project Viability Requirements •Summarize and
•What’s the Company Document
•What do Users
Scope •Preliminary Need Activities
Assessment of
Needs & •Document
System
Changes
Required Requirements
•Develop Working
Relationships
•Collect Data
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Feasibility Analysis
Does it make sense to proceed with new system?
Economic:
Will system benefits justify the time, money, and resources required to implement it?
Technical:
Can the system be developed and implemented using existing technology?
Legal:
Does the system comply with all applicable federal and state laws, administrative
agency regulations, and contractual obligations?
Scheduling
Can the system be developed and implemented in the time allotted?
Operational
Does the organization have access to people who can design, implement, and
operate the proposed system? Will people use the system?
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Capital Budgeting: Economic
Feasibility
Cost-Benefit Analysis Techniques
Benefits and costs are estimated Payback Period
Number of years required for the
and compared to determine net savings to equal the initial
whether the system is cost cost of the investment.
beneficial.
Net Present Value (NPV)
Future benefits are discounted
Benefits and costs that are not back to the present.
easily quantifiable are estimated Initial cost is subtracted.
and included. Positive NPV = economically
feasible.
If they cannot be accurately
Internal Rate of Return (IRR)
estimated, they are listed, and
The effective interest rate that
their likelihood and expected results in an NPV of zero.
impact on the organization A project’s IRR is compared with a
evaluated. minimum acceptable rate to
determine acceptance or
rejection.
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People Interacting in SDLC
Management
Accountants
Users
Information systems steering committee
Project development team
Systems analysts and programmers
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Planning SDLC
Project Development Plan
Cost/benefit analysis
Developmental and operational requirements (people,
hardware, software, and financial)
Schedule of the activities required to develop and operate
the new application
Master Plan
What the system will consist of
How it will be developed
Who will develop it
How needed resources will be acquired
Where the AIS is headed
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Planning Technique—PERT Chart
Program Evaluation and Review Technique (PERT)
Network of arrows and nodes representing project activities
that require an expenditure of time and resources and the
completion and initiation of activities
Completion time estimates made
Critical path—the path requiring the greatest amount of
time is determined
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Planning Technique—GANTT Chart
A bar chart with project activities on the left-hand side
and units of time across the top
Graphically shows the entire schedule for a large,
complex project
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System Failure Due to Change
The best system will fail without the support of the people
it serves.
Why people resist change:
Fear
Lack of top management support
Lack of communication
Disruptive nature of change
Methods of instituting change
Biases and emotions
Personal characteristics and background
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Types of Resistance
Aggression
Behavior that destroys, cripples, or weakens system
effectiveness, such as increased error rates, disruptions, or
deliberate sabotage
Projection
Blaming the new system for everything that goes wrong
Avoidance
Ignoring a new AIS in the hope that the problem (the
system) will eventually go away
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Preventing Resistance
Obtain management support
Meet user needs
Involve users
Stress new opportunities
Avoid being too emotional
Provide user training
Reexamine performance evaluation to make sure they are aligned
with new system
Keep communication lines open
Control users expectations
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