MODULE 4

INFORMATION SYSTEM ANALYSIS AND DESIGN CONCEPTS

LESSON 1. INFORMATION SYSTEM ANALYSIS AND
DESIGN

• According to the article “System Analysis and Design (SAD) Tutorial” by

(W3computing.com, n.d.), Systems Analysis and Design is an active field in which
analysts repetitively learn new approaches and different techniques for building the
system more effectively and efficiently.
• The primary objective of systems analysis and design is to improve organizational
systems.
• Systems analysis and design is a proven methodology that helps both large and small
businesses reap the rewards of utilizing information to its full capacity.
LESSON 1.1 GOAL OF INFORMATION SYSTEM ANALYSIS AND
DESIGN (W3COMPUTING.COM, N.D.)

• The main goal of systems analysis and design is to improve organizational systems,
typically through applying software that can help employees accomplish key business
tasks more easily and efficiently. As a systems analyst, you will be at the center of
developing this software. The analysis and design of information systems are based on
(W3computing.com, n.d.):
•  Your understanding of the organization’s objectives, structure, and processes.
•  Your knowledge of how to exploit information technology for advantage.
LESSON 1.2 STRUCTURE OF INFORMATION SYSTEMS
(W3COMPUTING.COM, N.D.)

• Operational Level Systems - support operational managers by keeping track of the

activities and transactions of the organization, such as sales, receipts, cash deposits,
payroll, credit decisions, and the flow of materials in a factory. An example of this is a
Transaction Processing Systems (TPS).
TRANSACTION PROCESSING SYSTEMS (TPS).

• TPS are computerized information systems that were developed to process large amounts
of data for routine business transactions such as payroll and inventory.
•  It eliminates the tedium of necessary operational transactions and reduces the time once
required to perform them manually, although people must still input data to computerized
systems.
• It is essential to the day-to-day operations of business that these systems function
smoothly and without interruption.
• Support / Knowledge Level Systems - support knowledge and data workers in
designing products, distributing information, and coping with paperwork in an
organization (W3computing.com, n.d.).
• Office Automation Systems (OAS) - analyze information to transform data or
manipulate it in some way before sharing it with, or formally disseminating it throughout,
the organization and, sometimes, beyond. Familiar aspects of OAS include word
processing, spreadsheets, desktop publishing, electronic scheduling, and communication
through voice mail, email, and teleconferencing.
• Knowledge Work Systems (KWS) - support professional workers such as scientists,
engineers, and doctors by aiding them in their efforts to create new knowledge and by
allowing them to contribute it to their organization or to society at large.
• Management Level Systems - serve as the monitoring, controlling, decision-making,
and administrative activities of managers. Management-level systems usually provide
periodic reports instead of instant information on operations (W3computing.com, n.d.).
• Management Information Systems (MIS) – are computerized information systems that
integrate recognition to the user interaction between people and computers.
• By challenging people, software, and hardware to function as one, management
information systems support users in accomplishing a larger spectrum of organizational
tasks than transaction processing systems, including decision analysis.
• Support users accessing the information on the management system that uses a database.
The database stores both data and models that support user interaction, interpretation, and
application.
• Management information systems output information that's employed in a higher
cognitive process. A management data system may also help integrate several
computerized information functions of a business.
• Decision Support Systems (DSS) - A higher-level class of computerized information
systems is decision support systems. It departs from the traditional management
information system because it emphasizes the support of decision making in all its
phases, although the actual decision is still the exclusive province of the decision maker.
• Expert Level Systems - is a system that imitates the decision-making ability of a person's
expertise. Expert systems are designed to resolve complex problems by reasoning
through collections of data, represented mainly as if-then rules instead of conventional
procedural code (W3computing.com, n.d.).
• . Artificial Intelligence Systems Two Avenues of AI Research
1. Understanding the natural language.
2. Analyzing the ability to reason through a problem to its logical conclusion.
• Group Decision Support Systems (GDDS) – are used in special rooms equipped in a
number of different configurations, permit group members to interact with electronic
support often in the form of specialized software and a special group facilitator. It is
intended to bring a group together to solve a problem with the help of various supports
such as polling, questionnaires, brainstorming, and scenario creation. GDSS software can
be designed to minimize typical negative group behaviors such as lack of participation
due to fear of reprisal for expressing an unpopular or contested viewpoint, domination by
vocal group members, and “group think” decision making.
• Executive Support Systems (ESS) - assist executives to organize their interactions with
the external environment by providing graphics like graphs and communications
technologies for presentation in accessible places like boardrooms or personal corporate
offices. Although ESS depend on the data generated by TPS and MIS, ESS supports their
users by addressing unstructured decision problems, which aren't application-specific and
creating an environment that helps them consider strategic problems in an informed way.
LESSON 1.3 NEEDS FOR SYSTEM ANALYSIS AND DESIGN
(W3COMPUTING.COM, N.D.)

• Systems analysis and design is implemented by systems analysts to investigate what

people’s needs to analyze data input or data flow systematically, process or transform data,
store data, and output information within the context of a specific organization or enterprise.
• By doing meticulous analysis, analysts investigate to spot and solve the right problems.
Furthermore, system analysis and design is applied to research, design, and implement
improvements within the support of users and therefore the functioning of companies that
may be accomplished through the deployment of computerized information systems
(W3computing.com, n.d.).
• Installing a system without decent planning leads to great user disappointment and
frequently causes the system to fall into disuse
• User involvement throughout the systems project is critical to the successful development
of most information systems
LESSON 2. ROLES OF SYSTEM ANALYST (W3COMPUTING.COM, N.D.)

• The systems analyst regularly assesses how users interact with technology and how
businesses operate by questioning the inputting and processing of data and the outputting
of information to improve organizational processes.
• The system analyst must be able to work with people of all types and be experienced in
operating with computers. The analyst plays many roles, sometimes balancing several at
the same time.
THREE PRIMARY ROLES OF A SYSTEMS ANALYST

• System Analyst as a Consultant

• System Analyst as Supporting Expert
• System Analyst as Agent of Change
LESSON 3. SYSTEMS DEVELOPMENT LIFE CYCLE
(SDLC)

• Based in the article “SDLC Seven Phases” by innovative architects.com (2020), Systems
Development Life Cycle (SDLC) is a framework that explains the steps involved in the
development of systems at each phase.
• It covers a detailed strategy and plan for building, deploying, and maintaining a system.
SDLC defines the complete cycle of development i.e. all the tasks involved in planning,
creating, testing, and deploying a software product.
• The purpose of SDLC is to produce a high-quality product
which is as per the customer’s specifications and
requirements. SDLC has established its phases as,
Initiation/planning, requirements analysis, designing,
development, testing, implementation, and maintenance. It
is important to hold to the phases to provide the product in
a well- organized fashion.
PHASES OF SDLC IN ACCOUNTING CONTEXT (INNOVATIVEARCHITECTS.COM,
2020)

1. Initiation/Planning
2. Requirement Analysis
3. Design
4. Coding/Development
5. Testing
6. Implementation
7. Operations and Maintenance
LESSON 4. CAPABILITY MATURITY MODEL (HURT, 2010)

• The Capability Maturity Model (CMM) implements a framework for organizing these
evolutionary steps into five maturity levels that extended successive foundations for
continuous process improvement. CMM was first suggested by Watts Humphrey in the
late 1980s. Humphrey was a software engineer, and he developed the CMM as a
framework to assess business processes objectively with particular reference to
government contractors and software projects.
1. Level One – Chaotic / Initial:
2. Level Two – Repeatable:
3. Level Three – Defined:
4. Level Four – Managed:
5. Level Five – Optimized:
LESSON 4.1 BENEFITS OF CAPABILITY MATURITY MODEL (CIO-
WIKI.ORG, 2019)

• Benefits to using a process improvement framework such as the CMM have been
identified by numerous researchers, both academic and professional, and would include
(Cio-wiki.org, 2019):
• More accurate identification of flaws in process development operations.
• Reduction in cost of software development or management of data as a resource.
• Increase in productivity from software development and / or data management
• professionals (staff and contractors).
• Reduction in post-release defects and essential enhancements.
• Reduction in time-to-market for implementation.
LESSON 4.2 LIMITATIONS OF CAPABILITY MATURITY MODEL
(CIO-WIKI.ORG, 2019)

• One of which is that when organizations use CMM, they look at each level as a target.
• CMM does not specify a particular way of achieving those goals. In order to achieve
• CMM only helps if it is put into place early in the software development process.
• CMM is concerned with the improvement of management related activities.
LESSON 5. INFORMATION TECHNOLOGY SELECTION (HURT,
2010)

• Macro Level Issues – it is the “big picture” issues to be considered in adopting a specific
form of information technology.
• A. Needs - Managers must first specify the need they are trying to meet with a new form of
information technology. Often, management want the “latest and greatest” form of
information technology just because it looks cool, fun to play with or had a convincing
advertisement. But IT resources represent a major investment of time and money for most
companies, so establishing a clear need is critical and essential.
• B. Strategic Fit-a strategy indicates how an organization competes in its markets. Most
good strategic plans begin with a strong yet concise, mission statement. A mission
statement, as a part of a strategic plan, explains why an organization exists; it outlines how
the organization plans to differentiate itself from its
• Personnel Involvement-is an other key factor in newITinvestments.Johnston (2003)
recommend having a Technology Advisory Committee. A technology advisory committee
should comprise 5 to 7 members from various departments, functions and offices of the
organization. Subcommittees also may be in order to manage more focused tasks and
involve more personnel. Employees on the committee need not necessarily be technology
experts, but they should be able to think globally for the good of the company, rather than
representing the parochial interest of their own area.
• Financing - On the macro side of the equation, managers need to consider financing.
How do they plan to pay for the IT? This is some key questions to consider:
•  Will external funding be required for the investment?
• If so, how will the company raise it: debt or equity?
• Is leasing an option? If so, what are its advantages and disadvantages?
•  Are any tax credits available based on the investment?
• Micro Level Issues – the more focused issues to be considered in adopting a specific
form of information technology.
• A. Cost–is broader than just the money spent for the investment. Managersneed to
consider the cost of information technology. For example, its upfront cost, training,
maintenance and customization.
• B. Adaptability–is an other micro-level issue managers need to consider.It should answer
these questions, can the proposed information technology be adapted effectively to the
organization? Or will its adoption involve major business process redesign? Investments
in new IT are challenging under most circumstances. But, if they disrupt or create change
in the way company does business, they become even more so.
• Training – Employees need to learn to use a new information technology, so training
becomes another issue. How easy will it be to learn to use new hardware and/or software?
Will the training be provided by the vendor as part of the contract, or will the company
have to pay extra for it? Can the training be made available online, or does it require
classroom attendance to be effective? While a hardware and software vendor will
certainly have answers to most of those questions, many organizations seek answers from
the companies that have already implemented the same or similar systems.
• Vendor Reliability - is the supplier/developer of the technology a well- established,
reputable company? You don’t want to make a significant investment with a company
only to find them bankrupt or out of business within a few months or years. Naturally, no
one can predict those kinds of events with perfect certainty, so managers have to rely on
their judgment and independent data collection as assessment tools.