TOPIC 1

SYSTEM
FUNDAMENTALS
LEARNING OBJECTIVES
 Identify the context for which a new system is planned
 Describe the need for change management
 https://natlib.govt.nz/records/22471842

https://pmac-agpc.ca/project-management-tree-swing-story
COMPUTER SYSTEM

 “Computer “ word is derived from computes, that has Latin and

French origins – computare and putare that means to think,
estimate, count and figure
 “System” – comes from Latin word systema that means an
organized whole composed of parts.
 Computer System –
 An organized collection of parts/units that helps us to think and
count
Video watch

 https://www.youtube.com/watch?v=i-QyW8D3ei0

 Share two things you already knew and two things you learned from the video.
1.1.1 SYSTEM LIFE CYCLE
- Refers to the stages through which the development of a new system passes
through.

Existing system
analysis

Requirement
Maintenance
specification

New system
Software Design
installation

Testing and Software

debugging implementation
BASIC FOUR STEPS
Planning &
Analysis

Design
Evaluation
Overview

Development
1.1 Systems in organizations
1.1.1 Identify the context for which the new system is
planned
 Why would you want to create a NEW System???
 Replace a system that is inefficient, no longer suitable for its original
purpose, redundant or outdated
 To increase productivity or quality of a product
 To minimize costs
 To reduce errors or flaws of existing system

A computer system includes Hardware, Software and Workforce

 Systems in organizations
Planning and system installation
 Planning
 Planning a new system is the process of thinking about various details and
organizing the activities required to achieve the desired goal.

 What all should we anticipate while planning?

 Lack of guiding organizational and business strategies
 Lack of stakeholders and end use participation
 Lack of end user ownership of systems
 Lack of attention to required training
 Lack of various issues like organizational culture
 Lack of attention to the design of tasks or jobs, overall usability of the systems
Quick recap

 Arrange the stages of SDLC in the right order

 1. Requirement analysis
 2. Implementation
 3. Testing and debugging
 4. Maintenance
 5. New system installation
 6. Software design
 7.Existing system analysis
Systems in organizations
Planning and system installation
 FEASIBILTY STUDY
Technical
 At this stage, a feasibility study
should be conducted. Economic

 Analyzes and evaluates a project Legal

Based on- TELOS
Operational

Schedule
 A bookstore uses door to door salespersons to collect various
orders from customers. The orders are taken to the company’s
offices and are input by a secretary. The company has decided
to change the department and will ask the salespersons to input
the order from home using their personal computers. – 2 mins
 Discuss the various effects of this change – 5 mins
 Write your points – 3 mins

 Hints
 The effects can be positive or negative.
 Consider all stakeholders of the system.
1.1.2 The need for change management

What is Change Management?

 is a process of shifting individuals, teams, departments and
organizations from the present state to a desired state.

 Successful change management guarantees that all

stakeholders accept and embrace change in their work
environment.

 Trivia-> As change management becomes more necessary in the business cycle of

organizations, it is beginning to be taught as its own academic discipline at
universities.
Goals of Change Management

Maximise Minimise
profits the negative
impacts of
change on
individuals
1.1.3 Compatibility issues resulting from situations
including legacy systems or business mergers

 Legacy Systems –
 Old Technology, hardware, computer system or application program that is
still in use.
 Why is it still in use?
 Data can not be converted to newer formats
 Applications can not be upgraded
 Provides a familiar user experience
 Challenges of keeping legacy systems?
 High Maintenance Cost of maintenance

 Example- https://www.nextgov.com/it-modernization/2019/06/10-government-legacy-
systems-cost-taxpayers-337-million-every-year/157682/
1.1.3 Compatibility issues resulting from situations
including legacy systems or business mergers

 Business Merger
 Combining of two or more business entities

 Why do business mergers happen?

 Reduce business cost
 Diversify
 Growth
 Eliminate competition
1.1.3 Compatibility issues resulting from situations
including legacy systems or business mergers

 Four Strategies for Integration

 Keep both systems and develop them to have same functionality
 (high maintenance cost)
 Replace both systems with new one
 (increased initial cost)
 Select the best Information systems from each company and combine
them
 (difficult for employees)
 Select one company’s system and drop the other
 (policy problems)
1.1.4 Different systems implementations
 Locally hosted System Remotely hosted System

Business
Software

Business
Software

Company or Company or
client client
1.1.4 Different systems implementations

 Which option is more appropriate?

 If a system is large and complex
 Locally hosted System
 If administration wishes to outsource responsibilities like
maintenance, support, back up etc.
 Remotely hosted System
SaaS (Software as a
Service)
 On Demand software is a contemporary delivery
method, that allows software and data to be hosted
and managed centrally on a remote datacenter.
 Users pay to access the services provided on a
subscription basis.
 Saas solutions reside on the cloud and need a web
browser and a broadband Internet connection to be
accessed.
Name any Saas that you use?
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https://www.youtube.com/watch?v=kGUPSvswmY0
SaaS – Advantages and Disadvantages
 Advantages
 Less expensive
 Easy to upgrade
 Ease of access from anywhere
 Requires less IT personnel
 Application is ready to use

 Disadvantages
 Depends on third party
 Data loss if SaaS provider goes out of business
 Performance issues – may not as powerful as premise solutions
 Integration with other locally installed systems becomes difficult
1.1.5 Alternative installation processes

Types of
implementation

Changeover Conversion
Changeover
 The process of putting the new system online and retiring the old
one.
 Why?
 Old system might be too costly to maintain

 Not efficient

 Risks involved?
 Resistance by employees and/or customers
Types of Changeover
PARALLEL BIG BANG OR DIRECT (IMMEDIATE)

PILOT PHASED
Parallel Changeover
 What is it?
 Both systems work in parallel for a short period of time
 Why is it popular?
 Very popular as risk is limited
 Output of both systems can be compared
 If the new system fails, company can revert to old system
 If the new system succeeds, company can terminate old system

 Any Drawbacks?
 Costly to maintain two systems simultaneously
 Workload is also more
 Not a preferred method if new and old system have completely different processing task,
functions, inputs or outputs.
Big Bang Changeover
 What is it?
 The company plugs in the new system and unplugs the old one at the same time
 Is it popular?
 Not very popular as it is highly risky
 If the new system does not function as expected

 When is this system preferred?

 When the system is not critical
 All users need to be trained appropriately before the switch takes place
Pilot Changeover

 What is it?
 A company is having multiple sites. The new system is introduced in one of the sites
and extended to other sites over time.
 Is it risky?
 Low risk as the pilot sites can serve as models for the rest of the company
 If the system proves successful at the pilot site, it is implemented into the rest of the
company, usually direct method
Phased Changeover
 What is it?
 A company converts one module of the system at a time, meaning that different
parts of the system are converted at different times.
 The training period is extended and the adoption of the new system takes longer,
since each phase must be implemented separately.
 The installation of the new system is done per module, per department
Put your thinking hat on!

You are the head of a Nuclear station. The station is equipped with
a highly automated control system. You think that this system
should be replaced by a new one. Suggest a suitable
implementation. Justify your answer.