Introduction to Systems

Development and Systems Analysis

Chapter 20

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 Learning Objectives
• Explain the five phases of the systems development life cycle.

• Discuss the people involved in systems development and the roles they
play.

• Explain the importance of systems development planning and describe

planning techniques.

• Discuss the various types of feasibility analysis and calculate economic

feasibility.

• Explain why system changes trigger behavioral reactions, what form this
resistance to change takes, and how to avoid or minimize the resulting
problems.

• Discuss
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 Systems Development Life Cycle (SDLC)

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 Who Is Involved in the SDLC?
• Information Systems Steering
Committee
▫ Executive level, plans and
oversees IS function;
facilitates coordination with
integration of systems
activities
• Project Development Team
▫ Plan and monitor project
progress
• Programmers
▫ Write and test programs
according to analysts
specifications
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• Systems Analysts
▫ Determine information
needs, prepare specifications
for programmers
• Management
▫ Get users involved in the
process, provide support for
development projects, align
projects to meet
organizations strategic needs
• Users
▫ Communicate needs to
system developers, help
design and test to ensure
complete and accurate
processing of data
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 Systems Development Planning
• Proper planning provides for achieving goals
and objectives
• For systems development, two plans needed:
▫ Master Plan
 Long-range and authored by steering committee
outlining prioritized projects and timetables
▫ Project Development Plan
 Specific to a project and authored by the project
team identifies people, hardware, software, and
financial resources needed

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 Planning Techniques
• Program evaluation and review technique
(PERT)
▫ Diagram that depicts all project activities that
require time and resources with completion
estimates. Determines critical path.
• Gantt chart
▫ Bar chart that organizes activities on the left hand
side and project time scheduled with a bar drawn
to show the progress to date for that particular
activity.
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 Business Case (Feasibility Analysis)
• Economic
▫ Do benefits of new system justify the costs (time and
resources) to implement?
• Technical
▫ Can we use existing technology?
• Legal
▫ Does new system comply with regulations, laws, and
contractual obligations?
• Scheduling
▫ Can the system be developed in the time allotted?
• Operational
▫ Do we have the people to design and implement the
system? Will people use the new system?
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 Capital Budgeting
• Payback period
▫ Calculate the number of years required for the net
savings to equal the initial cost of investment
• Net Present Value (NPV)
▫ Estimate future cash flows with discounted rate
for (time value of money)
• Internal Rate of Return (IRR)
▫ Calculates the interest rate that makes the present
value of total costs equal to the present value of
total earnings
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 Why People Resist Change?
• Fear
▫ Of failure, the unknown,
losing status
• Lack of top-management
support
▫ If the top management is not
supportive why should the
employee change?
• Bad prior experiences
▫ Bad experience with prior IS
changes
• Poor communication
▫ Employees need to
understand why change is
necessary
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• Disruption
▫ Additional requests for
information and additional
burdens of time is distracting
and prompts negative feelings
• Manner change is introduced
▫ Approaches are different for
top level and lower level
employees
• Biases and emotions
• Personal characteristics and
background
▫ Age
▫ Open to technology and
comfortable with it
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 How to Prevent Behavioral Problems
• Management support
▫ Provide resources and
motivation
• Satisfy user needs
• Involve users
▫ Participation improves
communication and
commitment
• Reduce fears, emphasize
opportunities
• Avoid emotionalism
• Provide training
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• Performance evaluation
▫ Reevaluate to ensure
performance standards are
consistent with the new
system
• Keep open communications
• Test the system prior to
implementation
• Keep system simple
▫ Avoid radical changes
• Control user’s expectations
▫ Be realistic
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 Phase 1: Systems Analysis

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 Key Terms
• Systems development life cycle • Program evaluation and
(SDLC) review technique (PERT)
• Systems analysis • Critical path
• Conceptual design • Gantt chart
• Physical design • Feasibility study
• Implementation and • Economic feasibility
conversion • Technical feasibility
• Operations and maintenance • Legal feasibility
• Information systems steering • Scheduling feasibility
committee • Operational feasibility
• Systems analyst • Capital budgeting model
• Computer programmer • Payback period
• Project development plan • Net present value (NPV)
• Master plan
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 Key Terms (continued)

• Internal Rate of Return (IRR)

• Behavioral aspects of change
• Aggression
• Projection
• Avoidance
• Request for systems
development
• Initial investigation

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 AIS Development Strategies
Chapter 21

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 Learning Objectives
• Describe how organizations purchase application software, vendor services,
and hardware

• Explain how information system departments develop custom software

• Explain how end users develop, use, and control computer-based information
systems

• Explain why organizations outsource their information systems, and evaluate

the benefits and risks of this strategy

• Explain the principles and challenges of business process management

• Describe how prototypes are used to develop an AIS, and discuss the
advantages and disadvantages of doing so

• Explain what computer-aided software engineering is and how it is used in

systems
Copyright development
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 How to Obtain an AIS

• Purchase
• Develop in-house
• Outsource to outside organization

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 Purchasing

• Select a vendor (from referrals, trade shows,

etc.)
• Request for proposal (RFP) that meets needs
• Evaluate proposals
▫ Top vendors invited to give demonstrations on
how their system will fit your needs
• Make a final selection based upon your criteria

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 Develop Software In-House
• Advantages
▫ Provides a significant competitive advantage
• Risks
▫ Requires significant amounts of time
▫ Complexity of the system
▫ Poor requirements defined
▫ Insufficient planning
▫ Inadequate communication and cooperation
▫ Lack of qualified staff
▫ Poor top management support
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 End-User Computing
Advantages
• Allows for end-users to create,
control, and implement simple
systems
• More likely to meet user needs
• Saves time
• Frees up system resources
• Easy to use and understand
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Disadvantages
• Lack of testing of application
and possible calculation errors
• Inefficient systems
• Poorly controlled
• Poorly documented
• System incompatibilities
• Duplication of data
• Increase costs in later years
with upgrades
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 Outsourcing
Advantages Disadvantage
• Allows companies to • Inflexibility
concentrate on core • Loss of control
competencies • Reduced competitive
• Asset utilization advantage
• Access to greater expertise and • Locked-in system
better technology • Unfulfilled goals
• Lower costs by standardizing • Poor service
user applications and splitting • Increased risk
development and maintenance
costs between projects
• Less development time
• Elimination of peaks-and-
valleys usage
• Facilitates downsizing 21-
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 Business Process Management Systems
• Automate and facilitate business process
improvements using:
▫ Process engine to model and execute applications
and business rules
▫ Business analytics to identify issues, trends, and
opportunities
▫ Collaboration tools to remove communication
barriers
▫ Content manager to store electronic documents
and images

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 Prototyping
Advantages Disadvantages
• Results in well-defined user • Requires significant user time
needs • Resource efficiency may not be
• Higher user satisfaction and achieved
involvement • Inadequate testing and
• Faster development time documentation
• Fewer errors • Negative behavioral reactions
• Opportunities to suggest • Continuous development of
changes iterations leaves a feeling of no
• Less costly project completion

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 Computer-Aided Software Engineering
(CASE)

Advantages Disadvantages
• Improved productivity • Incompatibility with other
• Improved program quality systems
• Cost savings • Unmet expectations
• Improved control procedures
• Simplified documentation

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 Key Terms
• Canned software • Business process
• Turnkey systems reengineering (BPR)
• Application service provider • Business process management
(ASP) (BPM)
• Request for proposal (RFP) • Business Process Management
• Benchmark problem System (BPMS)
• Point scoring • Prototyping
• Requirement costing • Operational prototype
• Custom software • Nonoperational (throwaway)
• End-user computing (EUC) prototype
• Help desk • Computer-aided software (or
systems) engineering (CASE)
• Outsourcing
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 Systems Design,
Implementation, and Operation
Chapter 22

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 Learning Objectives
• Discuss the conceptual systems design process and
the activities in this phase.

• Discuss the physical systems design process and

the activities in this phase.

• Discuss the systems implementation and

conversion process and the activities in this phase.

• Discuss the systems operation and maintenance

process and the activities in this phase. 22-
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 Phase 2: Conceptual Systems Design

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 Phase 3: Physical Systems Design

• Output design (e.g., reports)

• File and database design
• Input design (e.g., forms, computer screen
input)
• Program design
• Procedures design
• Control design

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 Program Design
• Determine user needs
• Create and document development plan
• Write the computer code
• Test the program
• Document the program
• Train users
• Install the system (including components and
hardware)
• Use and modify the system
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 Phase 4: Systems Implementation

• Implementation plan
• Select and train personnel
• Complete documentation
▫ Development documentation
▫ Operations documentation
▫ User documentation
• Testing the system
• Conversion

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 Testing the System

• Walk-throughs
▫ Step by step review
• Processing test data
▫ Test all valid transactions and error conditions
• Acceptance tests
▫ Use copies of real data

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 Conversion Approaches
• Direct conversion
▫ Terminates the old and begins with the new system
• Parallel conversion
▫ Operate old and new systems for a period of time
• Phase-in conversion
▫ Gradual replacement of old elements with new
system elements
• Pilot conversion
▫ Implement a system in a part of an organization
(e.g., a branch)
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 Phase 5: Operations and Maintenance

• Conduct post-implementation review

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 Key Terms
• Conceptual design
specifications
• Conceptual systems design
report
• Scheduled report
• Special-purpose analysis
report
• Triggered exception report
• Demand report
• Structured programming
• Debugging
• Program maintenance
• Physical systems design report
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• Systems implementation
• Implementation plan
• Walk-through
• Processing test data
• Acceptance test
• Conversion
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion
• Post-implementation review
• Post-implementation review
report
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