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Systems Analysis and Design

TOPIC TITLE: ANALYSIS PROCESS

SPECIFIC OBJECTIVES:

At the end of the topic session, the students should be able to:

1. discuss data flow diagram,


2. identify the steps in developing in DFD,
3. list the rules in constructing DFD,
4. enumerate the guidelines applied in DFD,
5. discuss the types of DFD,
6. discuss data dictionary and its use,
7. discuss the methods used for documenting and analyzing the
logic of decisions,
8. explain the E-R diagram,
9. identify the steps in determining hardware and software needs,
10. describe cost and benefit forecasting,
11. identify the classifications of costs and benefits,
12. describe how cost-benefit analysis is performed, and
13. identify the ten main sections of a systems proposal.

MATERIALS/EQUIPMENT:

o LCD projector
o File/s (05 Analysis Process)
 05 Instructor’s Guide
 05 Presentation
 05 Handout
o Software Requirements
 MS Powerpoint

TOPIC PREPARATION:

o Prepare the slide handout (29 pages) needed for the topic
presentation and have it photocopied.
o Prepare the computer unit for slides presentation.
o Prepare additional examples on the sub-topics to be presented.

PRESENTATION OVERVIEW:

A. Bell-ringer 5 min
B. Instructional Input
Data Flow Diagram 40 min
a. Discuss data flow diagram, context diagram, diagram 0, and
child diagram
b. Discuss the four basic symbols use to chart data movement
on DFD
c. Discuss developing DFD
d. Discuss data flow diagramming rules
Types of Data Flow Diagram 20 min
a. Discuss the types of data flow diagram and the benefits of
using each type
Data Dictionary 10 min
a. Explain data dictionary
b. Discuss data dictionary notation
Structured English 15 min
a. Discuss structured English is and the five conventions that
must be followed when using it

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Systems Analysis and Design

Decision Tables 15 min


a. Discuss decision table
b. Discuss the steps for constructing decision tables
Decision Trees 15 min
a. Discuss decision tree and its components
b. Discuss the four major steps in drawing a decision tree
HIPO Charts 10 min
a. Discuss HIPO charts
Pareto Charts 10 min
a. Discuss Pareto chart and its uses
a. Discuss how to create Pareto chart
Fishbone Diagram 15 min
a. Discuss fishbone diagram and how to create it
Entity Relationship Diagram 10 min
a. Discuss the entity-relationship diagram (E-R diagram)
Determine Hardware and Software Needs 15 min
a. Discuss how to determine hardware and software needs
Identifying and Forecasting Costs and Benefits 15 min
a. Explain how to identify and forecast coast and benefits
Comparing Costs and Benefits 5 min
a. Explain the different techniques that can be used for
comparing coasts and benefits
Guidelines for Analysis 5 min
a. Discuss the guidelines for analysis
Systems Proposal 15 min
b. Discuss the ten main sections of the systems proposal and
their particular function
C. Generalization 20 min
D. Application 120 min
Total duration 360 min

TOPIC PRESENTATION:

A. Bell-ringer

1. Start the session by having a review of the previous topic discussed


about information requirements analysis. Ask at least three questions
to your students.

2. After that, introduce the topic to be discussed and enumerate the


sub-topics.

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B. Instructional Input

Data Flow Diagram

Slide 1 1. Start the discussion by presenting the topic coverage to your students
using Slide 1 of 05 Presentation.
Analysis Process
 Data Flow Diagram  Entity Relationship
 Types of Data Flow Diagram
Diagram  Determine Hardware and
 Data Dictionary Software Needs
 Structured English  Identifying and Forecasting
 Decision Tables Costs and Benefits
 Decision Trees  Comparing Cost and Benefits
 HIPO Charts  Guidelines for Analysis
 Pareto Charts
 Systems Proposal
 Fishbone Diagram

Slide 2 2. Using Slides 2 to 20, discuss to your students what data flow
diagram, context diagram, diagram 0, and child diagram are. Then,
Data Flow Diagram discuss the four basic symbols use to chart data movement on DFD.
• introduced and popularized for structured
Also, discuss about developing DFD and the data flow diagramming
analysis and design in the late 1970s (Gane rules.
and Sarson 1979)
• invented by Larry Constantine, the original
developer of structured design, based on
Martin and Estrin’s “data flow graph”
In a traditional approach to information system development,
model of computation activities are described as processes carried out by people or
computers. There are many process models that have been
developed and used, such as the process dependency
diagram used in the Information Engineering approach and
Slide 3
the workflow diagrams used with business process
reengineering. But the most commonly used process model
Data Flow Diagram
is the data flow diagram.
• enables analyst to model all of the main
requirements for an information system in
one diagram: inputs and outputs, processes, Data flow diagram was introduced and popularized for
and data storage
• shows the processes that change or
structured analysis and design in the late 1970s (Gane and
transform data Sarson 1979). This was invented by Larry Constantine, the
original developer of structured design, based on Martin and
Estrin’s “data flow graph” model of computation.

Data flow diagram enables analyst to model all of the main


requirements for an information system in one diagram:
inputs and outputs, processes, and data storage. It also
shows the processes that change or transform data. With
DFD, everyone working on a development project can
understand all aspects of the system working together at
once. Since it is a graphical model, DFD is easy to read so
end users, management, and all other information systems
workers can interpret the DFD with minimal training.

DFD Conventions

There are four basic symbols used to chart data movement


on DFDs and these are illustrated in Figure 5.1. (Gane and
Sarson symbols)

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Slide 4

Data Flow Diagram


• DFD Conventions

Process Source/sink

Data flow Data store

Figure 5.1 Gane and Sarson symbols

The line with arrow is a data flow which can be understood as


data in motion, moving from one place in a system to
another, with the head of the arrow pointing toward the data’s
destination. A data flow can be represented as data on a
customer order form or a payroll check. It can also be
represented as results of a query to a database or the
contents of a printed report. Since data flow is data that
move together, it can be composed of many individual pieces
of data that are generated at the same time and flow together
to common destinations. A data store is data at rest, which
may take the form of many different physical representations.
It may represent a manual store, such as filing cabinet, or a
computerized file or database. A process is a step-by-step
instructions or actions performed on data so that they are
transformed, stored, or distributed. It must be given a unique
identifying number indicating its level in the diagram. A
source/sink is the origin and/or destination of the data outside
the system, sometimes referred to as external entities. This
should be named with a noun. Examples of this are another
department, a business, a person, or a machine.

Developing DFDs
Slide 5
Data flow diagrams can and should be drawn systematically.
Data Flow Diagram The systems analysts should conceptualize data flows from a
• Steps in developing DFDs top-down perspective. This means that the diagram’s move
1. Make a list of business activities and use it to
determine various data flows, processes, data
is from general to specific. Here are the steps in developing
stores, and sources/sinks. DFDs.
2. Create a context diagram that shows
sources/sinks and data flows to and from the
system.
3. Draw Diagram 0, the next level. Show 1. Make a list of business activities and use it to
processes, but keep them general
determine various data flows, processes, data stores,
and sources/sinks.
Slide 6 2. Create a context diagram that shows sources/sinks
and data flows to and from the system. Do not show
Data Flow Diagram
any detailed processes or data stores.
3. Draw Diagram 0, the next level. Show processes,
4. Create a child diagram for each of the
processes in Diagram 0. but keep them general. Show data stores at this
5. Check for errors and make sure the labels you
assign to each process and data flow are level.
meaningful.
6. Develop a physical data flow diagram from
4. Create a child diagram for each of the processes in
the logical data flow diagram. Diagram 0.

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5. Check for errors and make sure the labels you assign
Slide 7
to each process and data flow are meaningful.
Data Flow Diagram
6. Develop a physical data flow diagram from the logical
data flow diagram. Distinguish between manual and
7. Partition the physical data flow diagram by
automated processes, describe actual files and
separating or grouping parts of the diagram in
order to facilitate programming and
reports by name, and add controls to indicate when
implementation. processes are complete or errors occur.
7. Partition the physical data flow diagram by separating
or grouping parts of the diagram in order to facilitate
programming and implementation.

Slide 8 Context Diagram

Data Flow Diagram A context diagram is an overview of an organizational system


• Context Diagram
that shows the system boundaries, external entities that
interact with the system, and the major information flows
between entities and the system. It contains only one
process, representing the entire system. The process is
0 given the number zero. Also shown in the context diagram
are external entities as well as major data flow to and from
them. However, it does not contain any data stores.

Slide 9 Figure 5.2 and Figure 5.3 below are examples of a context
diagram for course registration system and library database
Data Flow Diagram system.
• Context Diagram

Figure 5.2 Example of Context Diagram for a course registration


system

Figure 5.3 Example of Context Diagram for a library database system

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Diagram 0
Slide 10
Level 0 diagram is an explosion of the context diagram. This
Data Flow Diagram is used primarily as a presentation tool because it
• Diagram 0 summarizes an entire system or subsystem in greater detail
than does a context diagram. However, analysts often avoid
developing diagram 0 because of the following reasons:

 The information content duplicates the set of DFD


fragments. A DFD fragment represents the system
response to one event within a single process
symbol.
 The diagram is often complex and unmanageable,
specifically for large systems that respond to many
events.

Figure 5.4 illustrates a diagram 0.

Figure 5.4 Diagram 0

Child Diagram
Slide 11
Each process in Diagram 0 can be exploded to create a more
Data Flow Diagram detailed child diagram. The process in Diagram 0 that is
• Child Diagram exploded is referred to as parent process while the diagram
that results is the child diagram. The main rule for creating
child diagrams dictate that it cannot produce output or
receive input that the parent process does not also produce
or receive. Every data flow into or out of the parent process
must be shown flowing into or out of the child diagram.

Figure 5.5 depicts the child diagram of process 1.0.

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Figure 5.5 Child Diagram of process 1.0

Data Flow Diagramming Rules


Slide 12
Below is a set of rules that must be followed when creating
Data Flow Diagram data flow diagrams. These rules enable analyst to evaluate
• Data Flow Rules DFDs for correctness.
• Process
• No process can have only outputs. It is making data
from nothing. If an object has only outputs, then it
must be a source.
Process:
• No process can have only inputs. If an object has
only inputs, then it must be a sink.  No process can have only outputs. It is making data
• A process has a verb phrase label.
from nothing. If an object has only outputs, then it
must be a source.
 No process can have only inputs. If an object has
only inputs, then it must be a sink.
 A process has a verb phrase label.

Data Store:
Slide 13  Data cannot move directly from one data store to
another data store. Data must be moved by a
Data Flow Diagram process.
• Data Store  Data cannot move directly from an outside source to
• Data cannot move directly from one data store to
another data store. Data must be moved by a
process.
a data store. Data must be moved by a process that
• Data cannot move directly from an outside source to
a data store. Data must be moved by a process that
receives data from the source and places the data
receives data from the source and places the data
into the data store.
into the data store.
 Data cannot move directly to an outside sink from a
data store. Data must be moved by a process.
 A data store has a noun phrase label.
Slide 14

Data Flow Diagram

• Data cannot move directly to an outside sink from a


data store. Data must be moved by a process.
• A data store has a noun phrase label.

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Source/Sink:
Slide 15  Data cannot move directly from a source to a sink. It
must be moved by a process if the data are of any
Data Flow Diagram concern to our system. Otherwise, the data flow is
• Source/Sink not shown on the DFD.
 A source/sink has a noun phrase label.
• Data cannot move directly from a source to a sink.
It must be moved by a process if the data are of any
concern to our system. Otherwise, the data flow is
not shown on the DFD.
• A source/sink has a noun phrase label.

Data Flow:
Slide 16  A data flow has only one direction of flow between
symbols. It may flow in both directions between a
Data Flow Diagram process and a data store to show a read before an
• Data Flow update. The latter is usually indicated, however, by
• It has only one direction of flow between symbols.
two separate arrows since these happen at different
It may flow in both directions between a process and
a data store to show a read before an update. The times.
 A fork in a data flow means that exactly the same
latter is usually indicated, however, by two separate
arrows since these happen at different times.

data goes from a common location to two or more


different processes, data stores, or sources/sinks.
 A join in a data flow means that exactly the same
Slide 17 data come from any of two or more different
processes, data stores, or sources/sinks to a
Data Flow Diagram common location.
 A data flow cannot go directly back to the same
• A fork in a data flow means that exactly the same
data goes from a common location to two or more
different processes, data stores, or sources/sinks.
process it leaves. There must be at least one other
process that handles the data flow, produces some
• A join in a data flow means that exactly the same
data come from any of two or more different
processes, data stores, or sources/sinks to a common
other data flow, and returns the original data flow to
location. the beginning process.
 A data flow to a data store means update (delete or
change).
Slide 18  A data flow from a data store means retrieve or use.
 A data flow has a noun phrase label. More than one
Data Flow Diagram
data flow noun phrase can appear on a single arrow
• It cannot go directly back to the same process it
as long as all of the flows on the same arrow move
leaves. There must be at least one other process that
handles the data flow, produces some other data
together as one package.
flow, and returns the original data flow to the
beginning process.

• A data flow to a data store means update (delete or


change).

Slide 19

Data Flow Diagram

• A data flow from a data store means retrieve or use.

• A data flow has a noun phrase label. More than one


data flow noun phrase can appear on a single arrow
as long as all of the flows on the same arrow move
together as one package.

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Aside from these rules, there are guidelines for drawing


Slide 20 DFDs. These are as follows:

Data Flow Diagram  Completeness. This concept refers to whether all of


• DFD Guidelines the components necessary for the system to be


Completeness
Consistency
modeled are included in the DFDs. If the DFD
• Timing includes data flows that do not lead anywhere, or
• Iterative Development
data stores, processes, or external entities that are
not connected to anything else, the DFD is
incomplete.
 Consistency. This concept refers to whether or not
the illustration of the system shown at one level of a
nested set of DFDs is compatible with the illustrations
of the system shown at other levels. An example of
inconsistency would be a level-1 diagram with no
level-0 diagram. Another example of inconsistency is
a data flow that appears on a higher level DFD but
not on lower levels.
 Timing. Notice that the DFD examples presented in
this discussion have no indication whether data flow
occurs constantly in real time, once per week, or
once per year. Also, there is no indication of when a
system would run. When drawing DFDs, draw them
as if the system has never started and will never
stop.
 Iterative development. Drawing DFD for the first time
will rarely capture perfectly the system to be
modeled. This results to drawing the same diagram
over and over again, in an iterative manner. With
each attempt, there is a tendency to come closer to a
good approximation of the system or aspect of the
system to be modeled. One rule of thumb is that for
each DFD drawn it should only take three revisions.

Types of Data Flow Diagram

Slide 21 1. Discuss the types of data flow diagram using Slides 21 to 26. Also
discuss the benefits of using each type.
Types of Data Flow Diagram
Current Logical
DFD
Derive the logical DFD for the current
system by examining the physical DFD and
Data flow diagrams can be classified as either logical or
isolating unique business activities.
physical. In a logical data flow diagram, the focus is on the
New Logical
Create the logical DFD for the new system
by adding the input, output, and processes
business and how it operates. It is not concerned with how
DFD required in the new system to the logical
DFD for the current system. the system will be constructed. Rather, it describes the
Derive the physical DFD by examining
processes on the new logical diagram.
business events that take place and the data required and
New Physical
DFD
Determine where the user interfaces should
exist, the nature of the processes, and
necessary data stores.
produced by each event. In a physical data flow diagram, it
illustrates how the system will be implemented, including the
hardware, software, files, and people involved in the system.
Thus, the logical model reflects the business, while the
physical model depicts the system.

Ideally, systems are developed by analyzing the current


system (the current logical DFD), and then added features
are included in the new system (the new logical DFD).
Finally, the best methods for implementing should be
developed (the new physical DFD). Figure 5.6 below
illustrates the progression of models from logical to physical.

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Figure 6.6 Progressions of models from logical to physical

The benefits of using a logical model are as follows:


Slide 22
 Better communication with users – centers on
Types of Data Flow Diagram business activities; familiarization of users with the
• Benefits of using logical model: essential activities and information requirements of


Better communication with users
More stable systems
each activity
• Better understanding of the business by analysts  More stable systems – based on business events
• Flexibility and maintenance
• Elimination of redundancies and easier creation and not on a particular technology or method of
of the physical model
implementation
 Better understanding of the business by analysts
 Flexibility and maintenance
 Elimination of redundancies and easier creation of
the physical model

The benefits of using physical DFDs are as follows:


Slide 23
 Clarifying which processes are manual and which are
Types of Data Flow Diagram automated
• Benefits of using physical DFDs:  Describing processes in more detail than logical
• Clarifying which processes are manual and
DFDs
which are automated
• Describing processes in more detail than logical
 Sequencing processes that have to be done in a
DFDs particular order
• Sequencing processes that have to be done in a
particular order  Identifying temporary data stores
 Specifying actual names of files and printouts
 Adding controls to ensure the processes are done
Slide 24
properly
Types of Data Flow Diagram

• Identifying temporary data stores


• Specifying actual names of files and printouts
• Adding controls to ensure the processes are
done properly

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There are many items contained in the physical DFDs that


Slide 25 are not found in logical DFDs. These are:

Types of Data Flow Diagram  Manual processes


• Items contained in the physical DFDs that  Processes for adding, deleting, changing, and
are not found in logical DFDs:
• Manual processes
updating records
• Processes for adding, deleting, changing, and
updating records
 Data entry and verifying processes
• Data entry and verifying processes  Validation processes for ensuring accurate data input

• Validation processes for ensuring accurate data
input Sequencing processes to rearrange the order of
records
 Processes to produce every unique system output
Slide 26  Intermediate data stores
 Actual file names used to store data
Types of Data Flow Diagram
 Controls to signify completion of tasks or error
conditions
• Sequencing processes to rearrange the order of
records
• Processes to produce every unique system
output
• Intermediate data stores
• Actual file names used to store data
• Controls to signify completion of tasks or error
conditions

Data Dictionary

Slide 27 1. Explain what data dictionary is and how it is use using Slides 27 to
31. Then, discuss about data dictionary notation.
Data Dictionary
• repository for definitions of data processes,
A data dictionary is a repository for definitions of data
data flows, data stores, and data elements processes, data flows, data stores, and data elements. This
• compiled by systems analysts to guide them
through analysis and design is compiled by systems analysts to guide them through
• collects and coordinates specific data terms, analysis and design. As a document, the data dictionary
and it confirms what each term means to
different people in the organization collects and coordinates specific data terms, and it confirms
what each term means to different people in the organization.

Understanding the process of compiling a data dictionary


Slide 28 helps aid the systems analyst in conceptualizing the system
and how it works. In addition to these, the data dictionary
Data Dictionary can be used to:
• can be used to:
• validate the data flow diagram for completeness
and accuracy
 Validate the data flow diagram for completeness and
• provide a starting point for developing screens
and reports
accuracy
• determine the contents of data stored in files  Provide a starting point for developing screens and
• develop the logic for data flow diagram
processes reports
 Determine the contents of data stored in files
 Develop the logic for data flow diagram processes

Data dictionary entries can be created after the data flow


diagram has been completed or while it is being developed.
The use of algebraic notation and structural records permits
the systems analyst to develop the data dictionary and the
Slide 29 data flow diagrams.

Data Dictionary Data Dictionary Notation


• Data Dictionary Notation
= is composed of
+ and
There are many common notational formats used by systems
( ) optional (may be present or absent) analysts. Below are the commonly used notations:
{ } iteration
[ ] select one of several alternative choices = is composed of
** comment
@ identifier (key field) for a store + and
| separates alternative choices in the [ ] construct
( ) optional (may be present or absent)
{ } iteration
[ ] select one of several alternative choices

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** comment
@ identifier (key field) for a store
| separates alternative choices in the [ ] construct

Here are examples of using these notations:


Slide 30
Name = Courtesy Title + First Name +
Data Dictionary (Middle Initial) + Last Name
• Examples:
Courtesy Title = [Mr. | Miss | Mrs. |
• Name = Courtesy Title + First Name + (Middle
Initial) + Last Name
Ms. | Dr. | Professor]
Courtesy Title = [Mr. | Miss | Mrs. | Ms. | Dr. | First Name = {Legal Character}
Professor]
First Name = {Legal Character}
Middle Initial = {Legal Character}
Middle Initial = {Legal Character} Last Name = {Legal Character}
Last Name = {Legal Character}
Legal Character = [A-Z|a-z|0-9|'|-| | ] Legal Character = [A-Z|a-z|0-9|'|-| | ]

Order Picking Slip = Order Number +


Slide 31 Order Date + Customer Number + Customer
Name + Customer Address + Customer Tel
Data Dictionary + {Order Item Selection} + Number of
• Order Picking Slip = Order Number + Order Items
Date + Customer Number + Customer Name +
Customer Address + Customer Tel + {Order
Item Selection} + Number of Items Item Master = Item Number + Price +
• Item Master = Item Number + Price + Quantity Quantity on Hand
on Hand

Since data flow diagrams are not really designed to show the
detailed logic of processes, the systems analyst must model
process logic using other methods. The methods used for
documenting and analyzing the logic of decisions are
Decision Trees, Decision Tables, and Structured English.

Details of these methods are discussed in the succeeding


sections.

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Structured English

Slide 32 1. Using Slides 32 to 37, discuss to your students what structured


English is and the five conventions that must be followed when using
Structured English it.
• modified form of English that is used to
Structured English is a modified form of English that is used
specify the contents of process boxes in a to specify the contents of process boxes in a DFD. Its
DFD
• uses action verbs and noun phrases difference from the regular English is that it uses a subset of
• its main purpose is to represent processes in English vocabulary to express information system process
a shorthand manner that is rather easy for
users and programmers to read and procedures. Structured English uses action verbs, such as
understand
read, write, print, sort, move, merge, add, subtract, multiply,
and divide. It also uses noun phrases to describe data
structures, such as patron-name and patron-address. The
Slide 33
main purpose of using structured English is to represent
processes in a shorthand manner that is rather easy for users
Structured English
and programmers to read and understand.
• does not involve declaration, initialization,
or linking
• it uses some of the logical constructs of Structured English is not pseudocode. It does not involve
structured programming to overcome the
lack of structure and precision in the
declaration, initialization, linking, or whatsoever technical
English language issues. However, it does use some of the logical constructs
• its general structure is built using the
fundamental constructs, such as sequential, of structured programming to overcome the lack of structure
decision, and iteration and precision in the English language.

The general structure of a structured English specification is


built using the fundamental constructs, such as sequential,
decision, and iteration.

There are five conventions followed when using Structured


Slide 34 English and these are as follows:

Structured English 1. Express all logic in terms of sequential structures,


• Five conventions followed when using decision structures, or iterations.
structured English:
2. Use and capitalize accepted keywords, such as IF,
1. Express all logic in terms of sequential
structures, decision structures, or iterations. THEN, ELSE, DO, DO WHILE, DO UNTIL, and
2. Use and capitalize accepted keywords, such as
IF, THEN, ELSE, DO, DO WHILE, DO PERFORM.
UNTIL, and PERFORM.
3. Indent blocks of statements to show their hierarchy
3. Indent blocks of statements to show their
hierarchy (nesting) clearly. (nesting) clearly.
4. When words or phrases have been defined in the
Slide 35 Data Dictionary, underline those words or phrases to
indicate that these have a specialized, reserved
Structured English meaning.
4. When words or phrases have been defined in 5. Be careful when using “and” and “or” as well as
the Data Dictionary, underline those words or
phrases to indicate that these have a “greater than” and “greater than or equal to” and
specialized, reserved meaning.
other logical comparisons. “A and B” means both A
5. Be careful when using “and” and “or” as well
as “greater than” and “greater than or equal and B; “A or B” means either A or B, but not both.
to” and other logical comparisons. “A and B”
means both A and B; “A or B” means either A
or B, but not both.
Below are examples of logic expressed in sequential
structure, decision structure, and iteration.
Slide 36
Sequential Action #1
Structured English Structure Action #2
Action #3
• Examples:
• Sequential structure Action #1
Action #2
Action #3
Decision IF Condition A is True
• Decision structure IF Condition A is TRUE
THEN implement Action A
Structure THEN implement Action A
• Iteration
ELSE implement Action B
DO WHILE there are
ELSE implement Action B
customers.
Action #1
ENDIF
ENDDO

Iteration DO WHILE there are


customers.

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Action #1
ENDDO

Slide 37 Unlike decision tables and decision trees that show only
branching logic, structured English contains complete step-
Structured English by-step statements.
• Advantages:
Aside from the advantage of clarifying the logic and
• clarify the logic and relationships found in
human languages
relationships found in human languages, structured English is
• it is a communication tool a communication tool. This means that it can be taught to
and therefore understood by others in the organization.
• A structured English is used when:
• There are many repetitious actions, or
• Communication to end users is important.
There are guidelines that help analysts in deciding when to
use structured English. Structured English is used when:

 There are many repetitious actions, or


 Communication to end users is important.

Decision Tables

Slide 38 1. Using Slides 38 to 45, discuss to your students what decision table is
and its components. Also, discuss the steps for constructing decision
Decision Table tables.
• matrix representation of processing logic,
A decision table is a matrix representation of processing
which specifies the possible conditions for logic, which specifies the possible conditions for the decision
the decision and the resulting actions
and the resulting actions. Decision tables are useful when
• useful when complex combinations of complex combinations of conditions, actions, and rules are
conditions, actions, and rules are found or if
it requires a method that effectively avoid found or if it requires a method that effectively avoid
impossible situations, redundancies, and
contradictions
impossible situations, redundancies, and contradictions.

Slide 39 The three components of a simple decision table are:

Decision Table  Conditions – describe the factors that will affect the
• Three components of a simple decision
decision or policy
table are:  Actions – describe the possible policy actions or
• Conditions – describe the factors that will affect
the decision or policy decisions
• Actions – describe the possible policy actions
or decisions  Rules – describe which actions are to be taken under
• Rules – describe which actions are to be taken
under a specific combination of conditions
a specific combination of conditions

In creating decision tables, analysts should:


Slide 40
 determine the maximum size of the table
Decision Table  eliminate any impossible situations, inconsistencies,
• In creating decision tables, analysts should: or redundancies, and
• determine the maximum size of the table
 simplify the tables as much as possible
• eliminate any impossible situations,
inconsistencies, or redundancies, and
• simplify the tables as much as possible

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The steps below provide the analyst with a systematic


Slide 41 method for constructing decision tables:

Decision Table 1. Determine the number of conditions that may affect


• Steps in constructing decision tables: the decision. Combine rows that overlap, such as
1. Determine the number of conditions that may
affect the decision.
conditions that are mutually exclusive. The number
2. Determine the number possible actions that of conditions becomes the number of rows in the top
can be taken.
3. Determine the number of condition
half of the decision table.
alternatives for each condition. 2. Determine the number possible actions that can be
taken. That number becomes the number of rows in
the lower half of the decision table.
3. Determine the number of condition alternatives for
Slide 42
each condition. In the simplest form of decision
Decision Table table, there would be two alternatives (Y or N) for
each condition. In an extended-entry table, there
4. in the decision table by multiplying the
number of alternatives for each condition. may be many alternatives for each condition.
5. Fill in the condition alternatives.
6. Complete the table by inserting an X where
4. Calculate the maximum number of columns in the
rules suggest certain actions. decision table by multiplying the number of
7. Combine rules where it is apparent that an
alternative does not make a difference in the alternatives for each condition. For example, if there
outcome.
were four conditions and two alternatives (Y or N) for
each of the conditions, there would be 16
possibilities.
Slide 43 5. Fill in the condition alternatives. Start with the first
condition and divide the number of columns by the
Decision Table number of alternatives for that condition.
6. Complete the table by inserting an X where rules
8. Check the table for any impossible situations, suggest certain actions.
contradictions, and redundancies.
9. Rearrange the conditions and actions (or even
7. Combine rules where it is apparent that an alternative
rules) if it makes the decision table more
understandable.
does not make a difference in the outcome.
8. Check the table for any impossible situations,
contradictions, and redundancies.
9. Rearrange the conditions and actions (or even rules)
if it makes the decision table more understandable.

Slide 44 Figure 5.7 is an example of decision table for an


inventory reordering.
Decision Table

Figure 5.7 Example of decision table for an inventory


rendering

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A decision table is used when:


Slide 45
 Complex combinations of conditions, actions, and
Decision Table rules are found, or
• A decision table is used when:  A method is required that effectively avoids
• Complex combinations of conditions, actions,
impossible situations, redundancies, and
and rules are found, or contradictions.
• A method is required that effectively avoids
impossible situations, redundancies, and
contradictions.

Decision Trees

Slide 46 1. Explain what decision tree is using Slides 46 to 53. Then discuss its
components and the four major steps in drawing a decision tree.
Decision Trees
• graphical representation of a decision or
A decision tree is a graphical representation of a decision or
choice situation as a connected series of choice situation as a connected series of nodes and
nodes and branches
• useful when the sequence of conditions and
branches. This is useful when the sequence of conditions
actions is critical or not every condition is and actions is critical or not every condition is relevant to
relevant to every action
• designed to make it easier for analysts to every action. Like decision tables, decision trees are
communicate with users designed to make it easier for analysts to communicate with
users.

Decision trees have two main components:


Slide 47
 decision points – represented by nodes
Decision Trees  actions – represented by ovals

• Two main components:


• decision points – represented by nodes
• actions – represented by ovals

The four major steps in drawing a decision tree are:


Slide 48
 Identify the conditions
Decision Trees  Identify the outcomes (condition alternatives) for
• Four major steps in drawing a decision tree: each decision
• Identify the conditions
 Identify the actions
• Identify the outcomes (condition alternatives)
for each decision
 Identify the rules
• Identify the actions
• Identify the rules
It is useful to distinguish between conditions and actions
when drawing decision trees. This distinction is especially
relevant when conditions and actions take place over a
Slide 49 period of time and their sequence is important.

Decision Trees A decision tree is used when:


• A decision tree is used when:
• The sequence of conditions and actions is  The sequence of conditions and actions is critical, or
critical, or
• Not every condition is relevant to every action  Not every condition is relevant to every action (the
(the branches are different).
branches are different).

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Slide 50

Decision Trees
Sunday
Sleep two more
2 Weekday hours
Saturday
YES Time to get up

1 Sleep one more


hour
NO
Go back to sleep
Legend:

1) Sun up?
2) What day is it?

Figure 5.8 Example of generic decision tree

When reading a decision tree, start at the root node on the


far left. Each node is numbered, and each number
corresponds to a choice. The choices are indicated in a
legend for the diagram. Each path leaving a node matches
to one of the options for that choice. From each node, there
are at least two paths that lead the next step that is either
another decision point or an action. Finally, all possible
actions are listed on the far right of the diagram in leaf nodes.

There are three main advantages of decision tree over a


Slide 51 decision table. These are as follows:

Decision Trees 1. It takes advantage of the sequential structure of


• Three main advantages of decision tree over decision tree branches so that the order of checking
a decision table:
conditions and executing actions is immediately
• It takes advantage of the sequential structure of
decision tree branches so that the order of noticeable.
checking conditions and executing actions is
immediately noticeable. 2. Conditions and actions of decision trees are found on
some branches but not on others, which contrasts
with decision tables, wherein they are all part of the
same table. Those conditions and actions that are
Slide 52 critical are connected directly to other conditions and
actions, whereas those conditions that do not matter
Decision Trees are not present.
3. Compared with decision tables, decision trees are
• Conditions and actions of decision trees are more readily understood by others in the
found on some branches but not on others,
which contrasts with decision tables, wherein organization.
they are all part of the same table. Those
conditions and actions that are critical are
connected directly to other conditions and
actions, whereas those conditions that do not
matter are not present.

Slide 53

Decision Trees

• Compared with decision tables, decision trees


are more readily understood by others in the
organization.

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HIPO Charts

Slide 54 1. Present Slides 54 to 59 and discuss HIPO charts.

HIPO Charts HIPO stands for Hierarchy Input Process Output, that was
• stands for Hierarchy Input Process Output developed by IBM as a tool and documentation technique
• was developed by IBM as a tool and that attempts to:
documentation technique that attempts to:
• provide a structure by which the function of a
system can be understood
• state the functions to be accomplished
 Provide a structure by which the function of a system
• provide a visual description of the input, can be understood
process, and output for each function
 State the functions to be accomplished
 Provide a visual description of the input, process, and
Slide 55 output for each function

HIPO Charts The main purpose of HIPO is to define procedures and


operations in a hierarchical manner, correlating input,
• its main purpose is to define procedures and processing, and output steps with the integrated whole
operations in a hierarchical manner,
correlating input, processing, and output expressed in the hierarchy diagram.
steps

A HIPO package is consists of a hierarchy chart, IPO


overview diagram and IPO detail diagram. The hierarchy
chart acts as a hierarchical chart for the function performed
Slide 56 by the system. The IPO overview diagram shows a general
sequence of inputs, major processing functions, and outputs.
HIPO Charts The IPO detail diagram shows a detailed sequence of inputs,
• A HIPO package is consists of:
major processing functions, and outputs.
• hierarchy chart
• IPO overview diagram
• IPO detail diagram Figure 5.9 depicts an example of a hierarchy chart.

Slide 57

HIPO Charts
• Example of a Hierarchy Chart

Figure 5.9 Example of Hierarchy Chart

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Figure 5.10 depicts an example of an IPO overview diagram.


Slide 58

HIPO Charts
• Example of an IPO Overview Diagram

Figure 5.10 Example of an IPO Overview Diagram

Figure 5.11 depicts an example of an IPO detail diagram.


Slide 59

HIPO Charts
• Example of an IPO Detail Diagram

Figure 5.11 Example of an IPO Detail Diagram

Pareto Charts

Slide 60 1. Explain to your students what Pareto chart is using Slides 60 to 67.
Also, discuss the uses of Pareto chart and the how to create this
Pareto Charts chart.
• used to graphically summarize and display
A Pareto chart is used to graphically summarize and display
the relative importance of the differences the relative importance of the differences between groups of
between groups of data
• special form of a bar graph and is used to data. It is a special form of a bar graph and is used to display
display the relative importance of problems
or conditions
the relative importance of problems or conditions. Pareto
• named after Vilfredo Pareto, and its use in chart is named after Vilfredo Pareto, and its use in quality
quality assurance was popularized by
Joseph Juran and Kaoru Ishikawa
assurance was popularized by Joseph Juran and Kaoru
Ishikawa.

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The following are the uses of Pareto chart:


Slide 61
 Focus on critical issues by ranking them in terms of
Pareto Charts importance and frequency. (Example: Which course
• Uses of Pareto Chart: causes the most difficulty for students?; Which
• Focus on critical issues by ranking them in
terms of importance and frequency.
problem with Product X is most significant to our
customers?)
• Prioritize problems or causes to efficiently
initiate problem solving.  Prioritize problems or causes to efficiently initiate
problem solving. (Example: Which discipline
problems should be tackled first?; What is the most
frequent complaint by parents regarding the school?;
Slide 62 Solution of what production problem will improve
quality most?)
Pareto Charts  Analyze problems or causes by different groupings of
data (e.g., by program, by teacher, by school
• Analyze problems or causes by different
building; by machine, by team).
groupings of data (e.g., by program, by teacher,
by school building, by machine, by team).
 Analyze the before and after impact of changes
made in a process. (Example: What is the most
• Analyze the before and after impact of changes
made in a process. common complaint of parents before and after the
new principal was hired?; Has the initiation of a
quality improvement program reduced the number of
defectives?)

Below are the steps in creating a Pareto chart:

1. Determine the categories of problems or causes to


Slide 63 be compared. Begin by organizing the problems or
causes into a narrowed down list of categories
Pareto Charts (usually 8 or less).
• Steps in creating a Pareto chart: 2. Select a Standard Unit of Measurement and the Time
Period to be studied. It could be a measure of how
1. Determine the categories of problems or
causes to be compared. often something occurs; frequencies of reasons cited
2. Select a Standard Unit of Measurement and
the Time Period to be studied. in surveys as the cause of a certain problem; or a
specific measurement of volume or size. The time
period to be studied should be a reasonable length of
time to collect the data.
3. Collect and summarize the data. Create a three-
Slide 64 column table with the following headings:
 Error/Problem Category – list the categories of
Pareto Charts problems or causes previously identified
3. Collect and summarize the data. Create a  Frequency – write the totals for each of the
three-column table with the following
headings: categories over the designated period of time
• Error/Problem Category
• Frequency  Percent of Total – divide each number in the
• Percent of Total
Error Category Frequency Percent of Total
Frequency column by the total number of
Punctuation
Grammar
22
15
44%
30% measurements; this will provide the percentage
Spelling 10 20%
Typing
TOTAL
3
50
6%
100%
of the total
Error Category Frequency Percent of Total
Punctuation 22 44%
Slide 65 Grammar 15 30%
Spelling 10 20%
Pareto Charts Typing 3 6%
4. Create the framework for the horizontal and
TOTAL 50 100%
vertical axes of the Pareto Chart. Table 5.1 Summarized data

4. Create the framework for the horizontal and vertical


axes of the Pareto Chart. The horizontal axis will be
the categories of problems or causes in descending
order with the most frequently occurring category on
the far left (or at the beginning of the horizontal line).
There will be two vertical axes—one on the far left

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and one on the far right. The vertical axis on the far
left point will indicate the frequency for each of the
categories. Scale it so that the value at the top of the
axis is slightly higher than the highest frequency
number. The vertical axis on the far right will
represent the percentage scale and should be scaled
so that the point for the number of occurrences on
the left matches with the corresponding percentage
on the right.

Figure 5.12 Pareto Chart 1

5. Plot the bars on the Pareto chart. Using a bar graph


Slide 66 format, draw the corresponding bars in decreasing
height from left to right using the frequency scale on
Pareto Charts the left vertical axis. To plot the cumulative
5. Plot the bars on the Pareto chart. percentage line, place a dot above each bar at a
height corresponding to the scale on the right vertical
axis. Then connect these dots from left to right,
ending with the 100% point at the top of the right
vertical axis.
6. Interpret the Pareto chart.

Slide 67 Figure 5.13 Pareto Chart 2

Pareto Charts 6. Interpret the Pareto chart. Use common sense—just


• Some questions that Pareto chart answers: because a certain problem occurs most often doesn’t
• What are the largest issues facing our team or
necessarily mean it demands your greatest attention.
business? Investigate all angles to help solve the problems:
• What 20% of sources are causing 80% of the
problems (80/20 Rule)? What makes the biggest difference? What will it cost
• Where should we focus our efforts to achieve
the greatest improvements? to correct the problems? What will it cost if we don’t
correct this problem?

Here are some questions that Pareto chart answers:

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Systems Analysis and Design

 What are the largest issues facing our team or


business?
 What 20% of sources are causing 80% of the
problems (80/20 Rule)?
 Where should we focus our efforts to achieve the
greatest improvements?

Fishbone Diagram

Slide 68 1. Explain what fishbone diagram is using Slides 68 to 79. Then,


discuss how to create fishbone diagram.
Fishbone Diagram
• invented by Dr. Kaoru Ishikawa
Invented by Dr. Kaoru Ishikawa, the fishbone diagram is a
• problem analysis tool that provides a problem analysis tool that provides a systematic way of
systematic way of looking at effects and the
causes that create or contribute to those looking at effects and the causes that create or contribute to
effects those effects. This diagram is also referred to as a cause-
• referred to as a cause-and-effect diagram
because of its function and-effect diagram because of its function. The design of the
fishbone diagram looks similar to the skeleton of a fish.
Slide 69 The main purpose of the fishbone diagram is to assist project
teams in categorizing the many potential causes of problems
Fishbone Diagram
or issues in an orderly manner and in identifying root causes.
• its main purpose is to assist project teams in
categorizing the many potential causes of The fishbone diagram is used if the project team:
problems or issues in an orderly manner and
in identifying root causes
 Need to study a problem/issue to determine the root
cause
 Want to study all the possible reasons why a process
Slide 70 is beginning to have difficulties, problems, or
breakdowns
Fishbone Diagram  Need to identify areas for data collection
• The fishbone diagram is used if the project  Want to study why a process is not performing
team:
• Need to study a problem/issue to determine the
properly or producing the desired results
root cause

• Want to study all the possible reasons why a


process is beginning to have difficulties,
Figure 5.14 depicts an example of the fishbone diagram.
problems, or breakdowns

Slide 71

Fishbone Diagram

• Need to identify areas for data collection

• Want to study why a process is not performing


properly or producing the desired results

Slide 72

Fishbone Diagram
• Example of Fishbone Diagram
Figure 5.14 Example of Fishbone Diagram

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Below are the steps in constructing the fishbone diagram:


Slide 73 1. List the problem/issue to be studied in the head of
the fish.
Fishbone Diagram
• Steps in constructing fishbone diagram: 2. Label each bone of the fish. The major categories
typically used are:
a. 4 M’s – Methods, Machines, Materials,
1. List the problem/issue to be studied in the
head of the fish.
2. Label each bone of the fish.
categories typically used are:
The major Manpower
• 4 M’s – Methods, Machines, Materials, Manpower
• 4 P’s – Place, Procedure, People, Policies
b. 4 P’s – Place, Procedure, People, Policies
• 4 S’s – Surroundings, Suppliers, Systems, Skills c. 4 S’s – Surroundings, Suppliers, Systems,
Skills

Take note that one of the four categories suggested


Slide 74 can be used or can be combined in any fashion.
These categories are helpful in organizing ideas.
Fishbone Diagram
• 4 S’s – Surroundings, Suppliers, Systems, Skills 3. Use an idea-generating technique to identify the
Take note that one of the four categories suggested can
be used or can be combined in any fashion. These factors within each category that may be affecting the
categories are helpful in organizing ideas.
problem/issue and/or effect being studied. The
3. Use an idea-generating technique to identify project team should ask the question: “What are
machine issues affecting/causing…”
the factors within each category that may be
affecting the problem/issue and/or effect
being studied.

4. Repeat this step with each factor under the category


Slide 75 to be produce sub-factors. Continue asking the
question: “Why is this happening?” and put additional
Fishbone Diagram segments on each factor and subsequently under
4. Repeat this step with each factor under the each sub-factor.
category to be produce sub-factors. Continue
asking the question: “Why is this happening?”
and put additional segments on each factor
and subsequently under each sub-factor. 5. Continue until you no longer get useful information as
5. Continue until you no longer get useful
information as you ask the question: “Why is
you ask the question: “Why is that happening?”
that happening?”

6. Analyze the results of the fishbone diagram after


team members agree to an adequate amount of
Slide 76
detail has been provided under each major category.
Fishbone Diagram
Do this by looking for those items that appear in more
than one category. These become the “most likely”
6. Analyze the results of the fishbone diagram
after team members agree to an adequate causes.
amount of detail has been provided under
each major category.
7. Those items identified as the “most likely” 7. Those items identified as the “most likely” causes
causes should reach the consensus of the team
on listing those items in priority order with should reach the consensus of the team on listing
the first item being the “most probable” cause.
those items in priority order with the first item being
the “most probable” cause.

Entity Relationship Diagram

Slide 77 1. Tell your students that the most commonly used format for data
modeling is entity-relationship diagram (E-R diagram). Then, discuss
Entity-Relationship Diagram about entity relationship diagram using Slides 77 to 78.
• graphical representation of an E-R model
An entity-relationship model (E-R model) is a detailed, logical
• notations used: representation of the data for an organization or for a
• Entities
• Attributes business area. It is expressed in terms of entities in the


Candidate keys and identifiers
Relationships
business environment, relationships or associations among
those entities, and attributes or properties of both the entities
and their relationships. An E-R model is expressed as an
entity-relationship diagram (E-R diagram), which is a
graphical representation of an E-R model.

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The following are some of the notations used in E-R


diagrams.

 Entities can be person, place, object, event, or


concept in the user environment about which the
organization wants to maintain data. An entity has its
own identity that differentiates it from each other
entity. Examples of entities are employee,
warehouse, machine, sale, and account.

 Attributes are properties or characteristics of an entity


that are of interest to the organization. For example,
a STUDENT entity type has attributes such as
Student_ID, Student_Name, Address, and Major.

 Candidate keys are attributes (or combination of


attributes) that uniquely identifies each instance of an
entity type. For example, a candidate key for a
STUDENT entity type would be Student_ID.

 Identifiers are candidate keys that have been


selected to be used as the unique characteristic for
entity types.

 Relationships are association between the instances


of one or more entity types that is of interest to the
organization. These are labeled with verb phrases.
For example, the school records are interested in
monitoring which courses each of its students has
taken. This leads to a relationship, called Completes,
between the STUDENT and COURSE entity types.

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Figure 5.15 and Figure 5.16 are examples of E-R


Slide 78 diagram.

Entity-Relationship Diagram

Figure 5.15 Example of E-R Diagram

Slide 79

Entity-Relationship Diagram

Figure 5.16 Example of E-R Diagram

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Determine Hardware and Software Needs

Slide 80 1. Present Slides 80 to 93 and discuss to your students how to


determine hardware and software needs.
Determine Hardware and
Software Needs
• Steps in determining hardware and software
The systems analyst follows steps in determining hardware
needs: and software needs. This is illustrated in Figure 5.17.

Figure 5.17 Steps in Determining Hardware and Software


Needs

An inventory on all current computer hardware is conducted


first to find out what is on hand and what is usable. After
that, the current and future system workloads are estimated.
Then, an evaluation of available hardware and software is
undertaken.

An analyst must work with users to determine what hardware


will be needed. Ascertaining hardware can come only in
conjunction with information requirements determination.

Computer Hardware Inventory


Slide 81
Begin with an inventory of computer hardware already
Determine Hardware and
Software Needs available in the organization. Some of the hardware options
• Inventory Computer Hardware require expanding or recycling of current hardware, therefore,
• If an updated computer hardware is
unavailable, the systems analyst needs to set up
it is important to identify what is on hand.
one quickly and carry through on it by
identifying the following:
1. The type of equipment: model number,
manufacturer.
If an updated computer hardware inventory is not available,
2. The operation status of the equipment: on order, the systems analyst must set up one right away and carry
operating, in storage, in need of repair.
3. The estimated age of the equipment. through on it. The following must be identified:
1. The type of equipment: model number, manufacturer.
Slide 82 2. The operation status of the equipment: on order,
operating, in storage, in need of repair.
Determine Hardware and
Software Needs 3. The estimated age of the equipment.
4. The projected life of the equipment.
4. The projected life of the equipment.
5. The physical location of the equipment.
5. The physical location of the equipment.
6. The department or person considered responsible
for the equipment.
6. The department or person considered responsible for
7. The financial arrangement for the equipment: the equipment.
owned, leased, rented.
7. The financial arrangement for the equipment: owned,
leased, rented.

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Estimate Workloads
Slide 83
The systems analysts formulate numbers that represent both
Determine Hardware and
Software Needs current and projected workloads for the system so that any
• Estimate Workloads hardware acquired will have the ability to handle current and
• Systems analysts formulate numbers that
represent both current and projected workloads
future workloads.
for the system so that any hardware obtained
will possess the capability to handle current and
future workloads. If estimation is achieved properly, then the business does not
• If estimates are accomplished properly, the
business should not have to replace hardware need to replace hardware solely due to unforeseen growth in
solely due to unforeseen growth in system use.
the system use.

Out of necessity, workloads are sampled rather than actually


Slide 84 put through several computer systems.
Determine Hardware and
Software Needs

• Out of necessity, workloads are sampled rather


than actually put through several computer
systems.

Evaluate Computer Hardware


Slide 85
Evaluation of computer hardware is a shared responsibility of
Determine Hardware and
Software Needs management, users, and systems analysts. Even though
• Evaluate Computer Hardware vendors supply the details about their particular offerings,
• Evaluation of computer hardware is the shared
systems analysts must oversee the evaluation process
responsibility of management, users, and personally since they have the best interests of the business
systems analysts.
• Systems analysts may have to educate users and at heart. Moreover, systems analysts may have to educate
management about the general advantages and
disadvantages if hardware before they can users and management on the general benefits and
capably evaluate it.
drawbacks of hardware before they can competently evaluate
it.
Slide 86
The next step that systems analysts do is considering the
Determine Hardware and kinds of equipment available that appear to meet projected
Software Needs needs. Information from vendors on potential systems and
• Criteria used by systems analysts and users
in evaluating performance of different system configurations becomes more important at this stage
systems hardware: and must be reviewed with management and users.
• The time required for average transactions
(including how long it takes to input data and
how long it takes to receive output).
Also, workloads can be simulated and run on different
systems, including those already used in the organization.

Below are the criteria used by systems analysts and users in


Slide 87 evaluating performance of different systems hardware:
Determine Hardware and
Software Needs  The time required for average transactions (including
how long it takes to input data and how long it takes
• The total volume capacity of the system (how
much can be processed at the same time before
to receive output).
a problem arises).  The total volume capacity of the system (how much
• The idle time of the central processing unit. can be processed at the same time before a problem
• The size of the memory provided.
arises).
 The idle time of the central processing unit.
 The size of the memory provided.

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Determine Computer Equipment


Slide 88
There are three main options for determining computer
Determine Hardware and
Software Needs equipment and these are:
• Determine Computer Equipment
• Three main options for determining computer
equipment:
 Buying. This implies that the business itself will own
• Buying
• the business itself will own the equipment
the equipment. One of the things to consider
• Leasing
• from vendor or from third-party leasing company
whether to buy is the projected life of the system. If
• Renting
• makes it easier to change system hardware
the system will be used longer than four to five years,
then the decision is usually made to buy.
 Leasing. Leasing equipment from vendor or from
third-party leasing company is more practical if the
projected life of the system is less than four years.
Also, if considerable change in technology is about to
happen, leasing is a better choice. Leasing also
allows business to put its money where it can be
working for the company instead of being tied up in
capital equipment. However, leasing is not an
economical way to acquire computer equipment over
a long period.
 Renting. Renting computer hardware makes it easier
to change system hardware. Usually, there are
maintenance and insurance included in rental
agreements. Since there are high costs involved and
the company will not own the rented equipment,
rental should be considered as short-term move in
handling nonrecurring or limited computer needs or
technologically volatile times.

Slide 89 Each option has its advantages and disadvantages.


These are listed in Table 5.2.
Determine Hardware and
Software Needs
Advantages Disadvantages
Advantages Disadvantages
Purchasing - Cheaper than leasing or renting over the - Initial cost is high
long run
- Ability to change system
- Provides tax advantages of accelerated
- Risk of obsolescence
- Risk of being stuck if choice was
wrong
Purchasing - Cheaper than leasing or - Initial cost is high
renting over the long run - Risk of obsolescence
depreciation - Full responsibility
- Full control

Leasing - No capital is tied up - Company doesn’t own the system


- No financing is required
- Leases are lower than rental payments
when lease expires
- Usually a heavy penalty for terminating
the lease
- Leases are more expensive than buying
- Ability to change system - Risk of being stuck if
Renting - No capital is tied up
- No financing is required
- Company doesn’t own the computer
- Cost is very high because vendor
- Provides tax choice was wrong
- Easy to change systems
- Maintenance and insurance are usually
included`
assumes the risk (most expensive option)
advantages of - Full responsibility
accelerated depreciation
- Full control

Leasing - No capital is tied up - Company doesn’t own


- No financing is required the system when lease
- Leases are lower than expires
rental payments - Usually a heavy
penalty for terminating
the lease
- Leases are more
expensive than buying

Renting - No capital is tied up - Company doesn’t own


- No financing is required the computer
- Easy to change systems - Cost is very high
- Maintenance and because vendor
insurance are usually assumes the risk (most
included` expensive option)
Table 5.2 Advantages and disadvantages of three options

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Two of the most important factors to consider in deciding


which option is best for a particular installation are whether
the business:

1. can afford to tie up capital in computer equipment;


and
2. desires full control of and responsibility for the
computer equipment.

Evaluate Software
Slide 90
Systems analysts and organizations are faced with issues in
Determine Hardware and
Software Needs deciding whether to make, buy, or outsource software for
• Evaluate Software information systems projects. Similar to the decisions made
• Analysts and organizations are increasingly
faced with a make, buy, or outsource decision
by analysts when deciding about renting, buying, or leasing
when assessing software for information
systems projects, particularly when
hardware, they have to decide also whether to purchase
contemplating upgrades to existing or legacy
systems.
COTS software, rent software from an application service
provider (ASP), or create custom software for the project.

COTS stands for commercial off-the-shelf that describes


Slide 91 software or hardware products that are ready-made and
available for sale to the public. An example of COTS is
Determine Hardware and
Software Needs Microsoft Office, which is a packaged software solution for
businesses.
• Analysts decide whether to purchase COTS
software, rent software from an application
service provider (ASP), or create custom
software for the project.
Take note that regardless of whether to develop software or
purchase a COTS product for a specific project, it is
necessary to complete an information requirements analysis
of the users and systems first. As a systems analyst, you
have to make sound judgments regarding developing
software against the purchase of COTS software for new and
existing systems.

Table 5.3 lists the advantages and disadvantages of creating


Slide 92 custom software, purchasing COTS packages, and
outsourcing to an ASP.
Determine Hardware and
Software Needs
Advantages Disadvantages Advantages Disadvantages
Creating Custom Software - Specific response to specialized - May be significantly higher initial
business needs
Innovation may give firm a
competitive advantage
cost compared to COTS software
of ASP
- Necessity of hiring or working
Creating Custom - Specific response to - May be significantly
- In-house staff available to maintain with a development team

Purchasing COTS Packages


software
- Pride of ownership
- Refined in the commercial world
- On-going maintenance

- Programming focused; not


Software specialized business higher initial cost
- Increased reliability
- Increased functionality
- Often lower initial cost
- Already in use by other firms
business focused
- Must live with the existing
features
- Limited customization
needs compared to COTS
- Help and training comes with
software
- Uncertain financial future of
vendor
- Less ownership and commitment
- Innovation may give software of ASP
firm a competitive - Necessity of hiring
advantage or working with a
- In-house staff development team
available to maintain - On-going
software maintenance
- Pride of ownership

Purchasing COTS - Refined in the - Programming


Packages commercial world focused; not
- Increased reliability business focused
- Increased - Must live with the
functionality existing features
- Often lower initial - Limited
cost customization
- Already in use by - Uncertain financial
other firms future of vendor
- Help and training - Less ownership and
comes with software commitment

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Slide 93
Determine Hardware and Using an ASP - Organizations that - Loss of control of
Software Needs
do not specialize in data, systems, IT
Advantages Disadvantages information systems employees, and
Using an ASP - Organizations that do not specialize in - Loss of control of data, systems, IT
information systems can focus on what they
do best (their strategic mission)
- There is no need to hire, train, or retain a
employees, and schedules
- Concern over the financial viability
and long-run stability of the ASP
can focus on what schedules
large IT staff - Security, confidentiality, and
- There is no expenditure of employee time
on non-essential IT tasks
privacy concerns
- Loss of potential strategic corporate
advantage regarding innovativeness
they do best (their - Concern over the
strategic mission) financial viability and
of applications

- There is no need to long-run stability of


hire, train, or retain a the ASP
large IT staff - Security,
- There is no confidentiality, and
expenditure of privacy concerns
employee time on - Loss of potential
non-essential IT strategic corporate
tasks advantage regarding
innovativeness of
applications

Table 5.3 Advantages and disadvantages

Identifying and Forecasting Costs and Benefits

Slide 94 1. Explain how to identify and forecast coast and benefits using Slides
94 to 103.
Identifying and Forecasting
Costs and Benefits
• Systems analysts are required to predict
Costs and benefits of the proposed system should be
certain key variables before the proposal is considered together at all times because these are
submitted to the client.
interrelated and often interdependent. Cost-benefit analysis
• The systems analysts uses forecasting is the basis whether to continue with the proposed system or
models and the main condition for choosing
a model is the availability of historical data. not, and not on information requirements. In a lot of ways,
benefits are measured by costs.

Forecasting Cost and Benefits


Slide 95
It is required for a systems analyst to predict certain key
Identifying and Forecasting
Costs and Benefits variables before submitting the proposal to the client. He or
she relies on the what-if analysis. However, the analyst
• If historical data are available, the next should understand that he or she cannot rely on this what-if
differentiation between classes of
techniques involves whether the forecast is analysis for everything if the proposal is to be credible,
conditional or unconditional.
meaningful, and valuable.

There are many forecasting models available that are used


by systems analysts. However, there is a main condition for
choosing a model and that is the availability of historical data.
Slide 96
If these data are available, the differentiation between
Identifying and Forecasting classes and techniques entails whether the forecast is
Costs and Benefits conditional or unconditional. Conditional means that there is
• Conditional methods: an association amongst variables in the model or that such a
• Correlation
• Regression casual relationship exists. Methods common in this group
• Leading indicators
• Econometrics
include:
• Input/Output models

 Correlation
 Regression
 Leading indicators
 Econometrics
 Input/Output models

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Systems Analysis and Design

Unconditional implies that the analyst is not required to find


Slide 97 or identify any casual relationships. Analysts find the
methods here as low-cost, easy-to-implement alternatives.
Identifying and Forecasting
Costs and Benefits Methods included in this group are:

• Unconditional methods:  Graphical judgment


• Graphical judgment
• Moving averages  Moving averages
• Analysis of time series data
 Analysis of time series data

On the other hand, if historical data are unavailable, the


systems analyst should turn to one of the judgment methods:
Slide 98
Identifying and Forecasting  Estimates from the sales force
Costs and Benefits  Surveys to estimate customer demand
• If historical data are unavailable, the analyst
must turn to one of the judgment methods:
 Delphi studies (a consensus forecast developed
• Estimates from the sales force independently by a group of experts through a series
• Surveys to estimate customer demand
• Delphi studies of iterations)


Creating scenarios
Drawing historical analogies
 Creating scenarios
 Drawing historical analogies

Identifying Costs and Benefits


Slide 99
As discussed in the previous lessons, costs and benefits can
Identifying and Forecasting
Costs and Benefits be classified as either tangible or intangible. These
• Tangible Benefits classifications should be taken into account when considering
• an advantage measurable in dollars that accrue
to the organization through the use of
systems.
information system
• examples:
• An increase in the speed of processing Let’s define tangible and intangible benefits, and tangible and
• Access to otherwise inaccessible information
• Access to information on a more timely basis than intangible costs.
was possible before

 Tangible benefits. These are advantages


Slide 100 measurable in dollars that accrue to the organization
Identifying and Forecasting
through the use of the information system. Examples
Costs and Benefits of tangible benefits include an increase in the speed
of processing, access to otherwise inaccessible
• The advantage of the computer’s superior information, access to information on a more timely
calculating power
basis than was possible before, the advantage of the
• Decreases in the amount of employee time needed to
complete specific tasks computer’s superior calculating power, and
decreases in the amount of employee time needed to
complete specific tasks.
 Intangible benefits. These are the opposite of
Slide 101 tangible benefits. Examples of these include
Identifying and Forecasting
improving the decision-making process, enhancing
Costs and Benefits accuracy, becoming more competitive in customer
• Intangible Benefits service, maintaining a good business image, and
• difficult to
nonetheless
measure but are important
increasing job satisfaction for employees by
• examples:
• Improving decision-making process
eliminating tedious tasks.
• Enhancing accuracy
• Becoming more competitive in customer service
• Maintaining a good business image
• Increasing job satisfaction for employees by
eliminating tedious tasks

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Systems Analysis and Design

 Tangible costs. These can be accurately projected


Slide 102 by the systems analyst and the business’ accounting
Identifying and Forecasting
personnel. Included here are the cost of equipment
Costs and Benefits such as computers and terminals, the cost of
• Tangible Costs resources, the cost of systems analysts’ time, the
• can be accurately projected by the system
analyst and the business’ accounting personnel
cost of programmers’ time, and other employees’
• examples: salaries.
• The cost of equipment such as computers and
terminals
• The cost of resources
 Intangible costs. These are difficult to estimate and
• The cost of systems analysts’ time may not be known. Intangible costs include losing a
• The cost of programmers’ time
• Other employees’ salaries competitive edge, losing the reputation for being first
with an innovation or the leader in a field, declining
Slide 103 company image due to increased customer
Identifying and Forecasting dissatisfaction, and ineffective decision making due
Costs and Benefits to untimely or inaccessible information.
• Intangible Costs
• difficult to estimate and may not be known
• examples:
• 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
• Ineffective decision making due to untimely or
inaccessible information

Comparing Costs and Benefits

Slide 104 1. Explain the different techniques that can be used for comparing
coasts and benefits using Slide 104.
Comparing Costs and Benefits
• Techniques for comparing the costs and
The commonly used techniques for comparing the costs and
benefits of the proposed system: benefits of the proposed system are break-even analysis,
• Break-Even Analysis payback, cash-flow analysis, and present value analysis.
• Payback Period
• Cash-Flow Analysis These techniques provide direct ways of yielding information
• Present Value Analysis
to decision makers about the significance of the proposed
system.

Three of these techniques will be discussed in the


succeeding sections.

Break-Even Analysis

The systems analyst uses the break-even analysis when


comparing costs alone. This determines the break-even
capacity of the proposed information system. The point at
which the total costs of the current system and the proposed
system cross corresponds to the break-even point, the point
where it becomes profitable for the business to get the new
information system. The total costs comprise the costs that
recur during operation of the system plus the development
costs that occur only once (one-time costs of installing a new
system), that is, the tangible costs mentioned earlier.

Break-even analysis is useful when a business is growing


and volume is a key variable in costs. One drawback of
break-even analysis is that benefits are assumed to remain
the same, regardless of which system is in place.

Also, break-even analysis can determine how long it will take


for the benefits of the system to pay back the costs of
developing it.

Cash-Flow Analysis

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Systems Analysis and Design

Cash-flow analysis studies the direction, size, and pattern of


cash flow that is related to the proposed information system.
When proposing with the replacement of an old information
system to a new one and when the new information system
will not generate any additional cash for the business, only
cash outlays are associated with the project. If this will be
the case, the new system will not be justified on the basis of
new revenues generated and must be examined closely for
other tangible benefits if it is to be pursued further.

Present Value Analysis

Present value analysis helps the analyst to introduce to


business decision makers the time value of the investment in
the information system as well as the cash flow. This is a
means to evaluate all the economic outlays and revenues of
the information system over its economic life, and to compare
costs today with future costs and today’s benefits with future
benefits.

Guidelines for Analysis

Slide 105 1. Present Slides 105 to 106 and explain to your students the guidelines
for analysis.
Guidelines for Analysis
1. Use break-even analysis if the project
The use of the methods discussed previously depends on the
needs to be justified in terms of cost, not methods employed and accepted in the organization itself.
benefits, or if benefits do not substantially
improve with the proposed system. The following guidelines help the analysts in deciding which
2. Use payback when the improved tangible
technique to use in comparing costs and benefits.
benefits form a convincing argument for
the proposed system.
1. Use break-even analysis if the project needs to be
justified in terms of cost, not benefits, or if benefits do
not substantially improve with the proposed system.
Slide 106
2. Use payback when the improved tangible benefits
form a convincing argument for the proposed system.
Guidelines for Analysis
3. Use cash-flow analysis when the project is expensive
3. Use cash-flow analysis when the project is
expensive relative to the size of the
relative to the size of the company or when the
company or when the business would be business would be significantly affected by a large
significantly affected by a large drain on
funds. drain on funds.
4. Use present value analysis when the
4. Use present value analysis when the payback period
payback period is long or when the cost of is long or when the cost of borrowing money is high.
borrowing money is high.

Any method chosen, always keep in mind that cost-benefit


analysis should be approached systematically, in a way that
can be explained and justified to management, who will
eventually decide whether to commit resources to the
systems project.

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Systems Analysis and Design

Systems Proposal

1. Present Slides 107 to 116 then discuss to your students the ten main
Slide 107 sections of the systems proposal and their particular function.

Systems Proposal After gathering materials to be included in the systems


• Ten main sections comprise the written proposal, the systems analyst needs to section these in
systems proposal and should be arranged in
the following order:
logical and visually effective manner. The analyst need to
1. Cover letter include ten main functional sections, use an effective writing
2. Title page of project
3. Table of contents
style, use figures to supplement writing, and attend to the
4. Executive summary (including
recommendations)
visual details of the written proposal.

In the ten main sections of the systems proposal, each part


Slide 108 has a particular function and it is arranged in the following
order:
Systems Proposal
5. Outline of systems study with appropriate 1. Cover letter – addressed to management and the IT
documentation
6. Detailed results of the systems study
task force; list the people who did the study and
7. Systems alternatives (three or four possible
solutions)
summarize the objectives of the study; should be
8. Systems analysts’ recommendations concise and friendly
9. Proposal summary
10. Appendices (assorted documentation,
2. Title page of project – includes the name of the
summary of phases, correspondence, and so
on)
project, the names of the systems analysis team
members, and the date the proposal is submitted
3. Table of contents – can be useful to readers of long
proposals; if proposal is less than 10 pages, omit it
4. Executive summary (including recommendations) –
provides who, what, when, where, why, and how of
the proposal; also includes recommendations of the
systems analysts and desired management action
5. Outline of systems study with appropriate
documentation – provides information about all the
methods used in the study and who or what was
studied; discusses any questionnaires, interviews, or
observation used in the systems study
6. Detailed results of the systems study – describes
what the systems analyst has found out about the
system through all the methods described in the
preceding sections; noted here are the conclusions
about systems problems that have come to the fore
through the study; should raise the problems or
suggest opportunities that call forth the alternatives
presented in the next section
7. Systems alternatives (three or four possible
solutions) – the analyst presents two or three
alternative solutions that directly address the above
mentioned problems; the presented alternatives
should include one that recommends keeping the
system the same; each alternative should be
explored separately and should describe the costs
and benefits; each alternative should indicate what
management must do to implement it
8. Systems analysts’ recommendations – expresses the
recommended solution; included here are the
reasons supporting the team’s recommendation
9. Proposal summary – a brief statement that mirrors
the content of the executive summary; gives the
objectives of the study and the recommended
solution; and conclude the proposal on a positive
note

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10. Appendices (assorted documentation, summary of


phases, correspondence, and so on) – can include
any information that the analyst feels may be of
interest to specific individuals

After the systems proposal is written, select carefully who


Slide 109 should receive the report. Hand the report personally to the
selected people. It is important for the systems analyst to be
Systems Proposal visible for the acceptance and eventual success of the
• Integrating figures into your proposal helps system.
demonstrate that you are responsive to the
different ways people absorb information.
It is also important to use tables and graphs in capturing and
• Figures in the report supplement written communicating the basics of the proposed system.
information and must always be interpreted
in words – these should never stand alone. Incorporating figures into systems proposal helps show that
the analyst is responsive to the different ways people absorb
information. The figures shown on report supplement written
Slide 110 information and should always be interpreted in words.

Systems Proposal Tables use labeled columns and rows in presenting statistical
• Effective use of tables provide a different or alphabetical data in an organized manner. Each table is
way of grouping and presenting analyzed
data that the analyst wants to communicate
numbered according to the order in which it appears in the
to the proposal reader. proposal and the title must be meaningful.
• Tables use labeled columns and rows to
present statistical or alphabetical data in an Below are some guidelines for tables:
organized manner.

1. Incorporate tables into the body of the proposal. Do


not refer them to the appendices.
Slide 111
2. Try to fit the entire table vertically on a single page, if
Systems Proposal
possible.
3. Number and title the table at the top of the page.
• Some guidelines for tables are the
following: Make the title descriptive and relevant.
1. Incorporate tables into the body of the 4. Label each row and column. Use more than one line
proposal. Do not refer them to the
appendices. for a title, if necessary.
2. Try to fit the entire table vertically on a single 5. Use a boxed table if room permits. Vertically ruled
page, if possible.
columns will enhance the readability.
6. If necessary, use footnotes to explain detailed
information contained in the table.
Slide 112

Systems Proposal There are different kinds of graphs: line graphs, column
3. Number and title the table at the top of the charts, bar charts, and pie charts. The first three graphs
page. Make the title descriptive and relevant.
4. Label each row and column. Use more than compare variables while the pie charts illustrate the
one line for a title, if necessary.
5. Use a boxed table if room permits. Vertically
composition of 100 percent of an entry.
ruled columns will enhance the readability.
6. If necessary, use footnotes to explain detailed
information contained in the table.  Line graphs are primarily used to illustrate change
over time. The changes in a single variable or up to
five variables can be shown in a single line graph.
The guidelines for drawing effective line graphs are
Slide 113 as follows:
Systems Proposal 1. Include a key.
• The different kinds of graphs used in 2. Label the axes.
systems proposal are:
• Line graphs 3. Include a relevant title.
6
5
Axis Title

4 Series 1
3
2
Series 2
Series 3
Figure 5.18 is an example of a line graph.
1
0

Axis Title

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Systems Analysis and Design

Figure 5.18 Example of Line Graph

Slide 114 Line graphs are useful in presenting results of payback or


break-even analysis to decision makers.
Systems Proposal
• Column Charts
 Column charts can show a comparison between two
14000
or more variables over time, but these are used more
12000
10000
often to compare different variables at a particular
8000
6000
North America
Europe
point in time. These are easier to understand
4000
2000
South America
compared with line graphs.
0
Quarter Quarter Quarter Quarter
1 2 3 4

Figure 5.19 is an example of a column chart.

Figure 5.19 Example of Column Chart

Slide 115  Bar charts are used to show one or more variables in
certain classes or categories during a specific time
Systems Proposal period. These can be organized alphabetically,
• Bar Charts numerically, geographically, or in progressive order,
Subsidiary A or these can be sorted by magnitude. Bar chart is
one of the most widely known types of graphs and
can make a comparison in a straightforward manner.
0 10000 20000 30000 40000 50000
Vendor A Vendor B Vendor C
Vendor D Vendor E Vendor F

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Figure 5.20 is an example of bar chart.

Figure 5.20 Example of Bar Chart

Slide 116  Pie charts are used to show how 100 percent of
commodity is divided at a particular point in time.
Systems Proposal These are easier to read compared with column
• Pie Charts charts and bar charts. The benefit of using pie chart
15%
CEM is that it takes up a lot of room on a page.
20% Medical
Appliance
Vending

20%
5%
3%
POS
Transportation
Figure 5.21 is an example of a pie chart.
2% Military
5%
Telecom
5%
15% Industrial
10%
Process Control

Figure 5.21 Example of a Pie Chart

Here are some guidelines for including graphs in a proposal:

1. Choose a style of graph that communicates your


intended meaning well.
2. Incorporate the graph into the body of the proposal.
3. Give the graph a sequential figure number and a
relevant title.
4. Label each axis and any lines, columns, bars, or
pieces of the pie on the graph.

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Systems Analysis and Design

5. Include a key to indicate differently colored lines,


shaded bars, or crosshatched areas.

C. Generalization

1. Ask your students to draw a logical DFD for some day-to-day system
that they use or observe in use. For example, morning routine,
making favorite meal, constructing something from scratch. Answers
must be written in a paper and to be submitted afterwards.

Discuss their answers in class.

2. Answers must be written in a paper and to be submitted afterwards.

Consider the admission requirements for a degree program or major


at your school. Look up the requirements in the school catalog and
rewrite them in structured English. Then, develop an equivalent
decision table and/or decision tree.

3. Ask your students to answer the problem stated below. Answers


must be written in a paper and to be submitted afterwards.

Draw an E-R diagram for the ordering system based on the given
figure below.

Discuss the answer in class.

D. Application

1. Ask the students to perform the exercise below. Give the students an
hour to finish the exercise. Move around the class to check their
activities. Tell them that they can consult you with their concerns
regarding the activities.

1) Give the students time to research about their


proposed system and discuss it with their group.

2) Ask each group to work with their methodology of the


study. Included in this part of the study are the
overview, research design, participants, instruments,
and ethical considerations.

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Systems Analysis and Design

3) Tell each group to discuss about the methodology


they will be using for their proposed system. They
must provide an overview of their proposed system.
Included in the overview are the purpose of their
proposed system, advantages and disadvantages,
who will be their participants and the number of
participants, and also other references that they will
be using like the articles and documents that will
support their study.

4) For the research design, students must be able to


identify what method they will be using for their
proposed system and to explain the importance of
this method. Also, each group must provide an
explanation as to why their chosen method is the
best method to use for their study, its advantages,
and support their explanation using other references
(articles, documents, etc).

5) For the participants, each group must identify who


will be their participants for their study and explain
how their study will benefit the participants.

6) For the instruments, each group must identify what


data gathering method that they will be using. For
most study, questionnaire is the main data gathering
instrument used. They must also explain the type of
survey that they will use.

7) For ethical considerations, each group must identify


the ethical issues that must be addressed.

8) The font face of the document should be Arial, font


size of 10 and should be A4 size of paper.

9) Tell your students to submit the documentation of


their proposed system on the next session.

2. Ask the students to perform exercise 2 below on the next session for
exercise. Refer to the syllabus-outline for the schedule of exercise 2.
Give the students an hour to finish the exercise. Move around the
class to check their activities. Tell them that they can consult you
with their concerns regarding the activities.

1) Give the students time to research and discuss with


their group about their proposed system.

2) Ask each group to discuss with their group the


method that they will be using for data gathering.
They must provide an explanation why such method
will be used for their study.

3) Each group must also determine what will be the


output of their study. They must explain what will be
the advantages of the new system when
implemented.

4) The font face of the document should be Arial, font


size of 10 and should be A4 size of paper.

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Systems Analysis and Design

5) Tell your students to submit the documentation of


their proposed system on the next session.

REFERENCES:

Valacich, J., George, J. & Hoffer, J. (2012). Essentials of systems:


analysis and design (5th Edition). Upper Saddle River, New Jersey:
Pearson.

Shelly, G. & Harry J. (2012). Systems analysis and design (9th Edition).
Boston: Course Technology Cengage Learning.

Whitten, J. & Bentley, L. (2007). Systems analysis and design methods


(7th Edition). Boston : McGraw-Hill/Irwin.

Yeates, D. & Wakefield, T. (2004). Systems analysis and design (2nd


Edition). Harlow, UK : Financial Times Prentice Hall.

Hoffer, J., George, J.& Valacich, J. (2008). Modern systems analysis and
design (5th Edition.). Upper Saddle River, N.J.: Prentice Hall.

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