L ECTURE 13

Introduction to Systems
Development and Systems
Analysis

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 INTRODUCTION

As the environment, technology, and

competition change, an information
system must continually undergo changes.
These changes range from minor
adjustments to major overhauls.
Occasionally, the old system is scrapped
and replaced.

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 INTRODUCTION
Companies change their systems for a variety of
reasons:
To respond to changes in user needs or business needs.
To take advantage of or respond to technology changes.
To accommodate improvements in their business process.
To gain a competitive advantage and/or lower costs.
To increase productivity.
To accommodate growth.
To accommodate downsizing or distribute decision making
To integrate incompatible systems.
To replace a system that is aged and unstable.

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 INTRODUCTION
Developing quality, error-free software is difficult,
expensive, and time-consuming.
Projects tend to deliver less than expected and consume
more time and money.
A KPMG survey found that 35% of all major information
systems projects were classified as runaways
hopelessly incomplete and over budget.
Major cause of runaways: Skimping on systems development
processes.
Omitting basic systems development steps becomes
tempting but may lead to disaster as developers create
well-structured systems that fail to meet user needs or
solve business problems.

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 INTRODUCTION

This chapter discusses five topics:

Systems development life cycle
Planning activities during the systems
development life cycle
Feasibility analysis
Behavioral aspects of change
Systems analysis

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 SYSTEMS DEVELOPMENT LIFE CYCLE

Whether systems changes are major or

minor, most companies go through a
systems development life cycle.
In this section, we discuss the steps in the
cycle and the people involved.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

As organizations grow and change, they may

need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Involves gathering the information needed
to buy or develop a new system and
determining whether it is a priority.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

As organizations grow and change, they may

need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
If the system is a priority, survey the
existing system to define the nature and
scope of the project and identify the
strengths and weaknesses of the system.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

As organizations grow and change, they may

need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
Feasibility study
Involves an in-depth study of the proposed
system to determine whether its feasible.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

As organizations grow and change, they may

need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey
Feasibility study
Determination of information needs and system
requirements
Involves finding out and documenting what
users and management need.
This is the most important aspect of
systems analysis.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

As organizations grow and change, they may

need more or better information.
Systems analysis is the first step. It includes:
Initial investigation
Systems survey Involves preparation of a report
Feasibility study summarizing the systems analysis work.
Determination of information
This report isneeds and to
submitted system
the information
requirements systems steering committee.
Delivery of systems requirements

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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

In the conceptual design phase, the company

decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Possibilities include:
Buying software
Developing in-house
Outsourcing

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 SYSTEMS DEVELOPMENT LIFE CYCLE

In the conceptual design phase, the company

decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Develop design specifications
Involves writing up details of what the system is to
accomplish and how it is to be controlled and
developed.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

In the conceptual design phase, the company

decides how to meet user needs.
Tasks in this phase include:
Identify and evaluate design alternatives
Develop design specifications
Deliver conceptual design requirements
These requirements will be forwarded to the
information systems steering committee.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

In the physical design phase, the broad, user-

oriented requirements of the conceptual design
are translated into detailed specifications that
can be used by programmers to code the
programs.
Tasks include:
Design outputs, database, and inputs
Develop programs
Develop procedures
Design controls
Deliver developed system
Goes to information systems steering committee
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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

This is the capstone phase during which everything

comes together.
Tasks include:
Develop an implementation and conversion plan.
Needed because of the complexity and importance of this phase.
Install any new hardware and software.
Train personnel.
New employees may need to be hired and trained or existing
employees relocated.
Test the system and make any needed modifications.
Complete the documentation.
Convert from the old to the new system.
Deliver operational system.
Send the final report to the IS steering committee.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

The five stages in the systems

development life cycle are:
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

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 SYSTEMS DEVELOPMENT LIFE CYCLE

Once the system is up and running, operations

and monitoring continue.
Tasks include:
Fine-tune and do post-implementation review.
Operate the system.
Periodically, review and modify the system.
Do ongoing maintenance.
Deliver improved system.

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 SYSTEMS DEVELOPMENT LIFE CYCLE

Eventually, a major modification or system

replacement is necessary, and the systems
development life cycle (SDLC) will start over.
In addition to the preceding five phases, three
activities are performed throughout the life cycle:
Planning.
Managing behavioral reactions to change.
Assessing ongoing feasibility.
These three activities will be discussed in this
chapter.
Additionally, the first phase in the SDLC, systems
analysis, will be discussed in more detail.
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 THE PLAYERS

Many people are involved in developing and

successfully implementing an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

Top managements role in systems development

is to:
Provide support and encouragement a clear signal
that user involvement is important.
Help align the systems with corporate strategies.
Establish system goals and objectives.
Review IS department performance and leadership.
Establish policies for project selection and
organizational structure.
Participate in important systems decisions.

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 THE PLAYERS

User management needs to:

Determine information requirements for departmental
projects.
Assist systems analysts with project cost-benefit
estimates.
Assign key staff members to development projects.
Allocate funds.

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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

Accountants also play an important role in

systems development:
As AIS users, they must determine their information needs
and systems requirements and communicate them to
system developers.
As members of project development teams or steering
committees, they help management in the development
process.
They are also active in:
Designing system controls and monitoring and testing these
controls.
Ensuring the system is easy to audit.
Controls and auditability need to be built in early to
minimize costs and inefficiencies later.
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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

The information systems steering committee is

an executive-level committee whose duty is to
plan and oversee the IS function.
Consists of high level management, such as:
Controller
IS Manager
User department managers
Sets policies to govern the AIS and assure top-
management participation, guidance, and control.
Attempts to encourage goal congruence and reduce
goal conflict.

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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS
The project development team includes systems
specialists, managers, accountants, auditors, and users
whose responsibility is to guide development.
Their job:
Plan each project.
Monitor to ensure timely and cost-effective completion.
Ensure the human element is considered.
Communicate project status to top management and steering
committee.
Communicate and meet with users to:
Consider ideas
Discuss progress
Eliminate surprises
The team approach produces more effective results and better
user acceptance.
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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

Systems analysts study existing systems,

design new ones, and prepare
specifications that are used by
programmers.
They interact with technical personnel and
users to bridge the gap.
They are responsible for ensuring the system
meets user needs.

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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

Computer programmers write the

computer programs, using the specs
developed by the systems analysts.
They also modify and maintaining existing
programs.

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 THE PLAYERS

Many people are involved in developing and

successfully implement an AIS, including:
Top management
Accountants
The information systems steering committee
The project development team
Systems analysts
Computer programmers
External players

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 THE PLAYERS

External players include:

Customers
Vendors
Auditors
Governmental entities
Their needs must also be met in systems
development.

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 PLANNING SYSTEMS DEVELOPMENT

Several activities must be performed at various

times throughout the SDLC.
One of these activities is planning.
The organization should have plans for:
The long range.
Each systems development project.
Each phase of each systems development project.
Well discuss these plans and a number of
techniques to develop them.

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 PLANNING SYSTEMS DEVELOPMENT

Weve all experienced the disasters that occur when we

fail to plan.
When you got it home, you realized it wasnt compatible
with your existing printer and scanner.
Furthermore, it wasnt equipped for broadband Internet
access and you had been hoping to switch to
broadband.
By the time you spend the money and buy the parts to
equip the computer to do what you want it to do, you find
that you could have bought a leading-edge computer for
less money.
Suppose you bought a personal computer on impulse
without thinking about what you wanted to do with it.

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 PLANNING SYSTEMS DEVELOPMENT

Systems development planning is an important

step for the following key reasons:
Consistency with the organizations strategic plan.
Efficiency achieved through coordination of the
subsystems.
Cutting edge technology and techniques.
Lower costs due to lack of duplication, wasted effort,
time overruns, and cost overruns.
Adaptability for future changes.

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 PLANNING SYSTEMS DEVELOPMENT

When a system is poorly planned, a company

must often return to a prior phase and correct
errors and design flaws.
These returns are costly and result in delays,
frustration, and low morale.

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 PLANNING SYSTEMS DEVELOPMENT

Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

Individual project plans contain:

A cost-benefit analysis.
Developmental and operational requirements,
including:
Human resources
Hardware
Software
Financial resources
A schedule of activities to develop and operate the
new application.

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 PLANNING SYSTEMS DEVELOPMENT

Two types of systems development plans

are needed:
- Individual project plans developed by the
project teams.
- A master plan developed by the IS steering
committee.

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 PLANNING SYSTEMS DEVELOPMENT

A master plan specifies:

What the system will consist of
How it will be developed.
Who will develop it.
How needed resources will be acquired.
Where the AIS is headed.
It also provides:
Status of projects in process.
Prioritization of planned projects and criteria for
establishing priorities.
Timetables for development.

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 PLANNING SYSTEMS DEVELOPMENT

Projects with highest priority are first to be

developed.
These decisions are made by top management.
Planning horizon:
About a 3-year horizon.
With updates at least 23 times/yeareven more
frequently in some companies.
The CIO should determine:
How soon technologies will be in wide use.
Whether the company should adopt late or early.
What business opportunities might arise from new
technologies.
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 PLANNING SYSTEMS DEVELOPMENT

Planning techniques
Two techniques for scheduling and
monitoring systems development
activities are:
Program Evaluation and Review Technique
(PERT)
Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

Planning techniques
Two techniques for scheduling and
monitor systems development activities
are:
Program Evaluation and Review
Technique (PERT)
Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

A PERT diagram requires that all activities

in a project be identified along with the
activities that precede and follow them.
These activities are used to draw a PERT
diagram, which consists of a network of:
Arrowsrepresenting activities that require
time and resources.
Nodesrepresenting completion and initiation
of activities.

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 PLANNING SYSTEMS DEVELOPMENT

The critical path in a PERT diagram is the

path requiring the greatest amount of time.
If an activity on the critical path is delayed,
the whole project is delayed.
Resources may be shifted to the critical
path to reduce the delay.

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 SAMPLE PERT CHART
For building and selling a birdhouse.
Each block contains a task and a time estimate (may
include best time, worst time, and average time).
May indicate who will be responsible for the task.

Buy Wood Build

& Nails Base
(1) (2)
(Bill) (Bill)

Design Nail Paint &

Sell
Birdhouse Together Decorate
(2)
(2) (2) (3)
(Sara)
(Bill) (Bill) (Sara)

Buy Build
Paint Roof
(1) (1)
(Sara) (Bill)

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 PLANNING SYSTEMS DEVELOPMENT

Planning techniques
Two techniques for scheduling and
monitor systems development activities
are:
Program Evaluation and Review Technique
(PERT)
Gantt Charts

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 PLANNING SYSTEMS DEVELOPMENT

A Gantt chart is a bar chart with project activities

on the left and time across the top.
For each activity, a bar of expected time is
drawn.
As activities are completed, the bar is filled in.
The Gantt chart makes it easy to eyeball the
chart and understand the current status of a
project.
But the chart does not show the relationship
between activities like the PERT chart does.
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 SAMPLE GANTT CHART

Complete
Testing
In Development

Milestone

Period
1 2 3 4 5 6 7 8 9 10
Design birdhouse
Buy wood & nails
Buy paint
Build roof
Build base
Nail together
Paint & decorate
Sell

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 FEASIBILITY ANALYSIS

During the systems analysis phase, a feasibility

study (aka, a business case) is prepared and is
updated during the remaining steps in the
SDLC.
The extent of the feasibility study depends on
the size and nature of the system.
Feasibility team should include:
Management
Accountants skilled in controls and auditing
Systems personnel
Users

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 FEASIBILITY ANALYSIS

The feasibility study and its updates are

used by the steering committee as the
project proceeds to decide whether to:
Terminate the project
Proceed
Proceed if specific problems are resolved

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 FEASIBILITY ANALYSIS

Five aspects need to be considered during a

feasibility study:
Technical feasibility
Is the technology there to do it?
Operational feasibility
Do we have people who can do it, and will it get used?
Legal feasibility
Does it comply with legal, regulatory, and contractual
obligations?
Scheduling feasibility
Can it be done in time?
Economic feasibility
Will the benefits exceed the costs?
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 FEASIBILITY ANALYSIS

Calculating economic feasibility costs and

benefits
Economic feasibility is probably the most important
and frequently analyzed aspect.
This examination requires a careful investigation of
costs and benefits.
It typically uses a capital budgeting model that
considers:
Cost savings and other benefits
Initial outlay costs
Operating costs
Other costs
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 FEASIBILITY ANALYSIS

When possible, benefits and costs should

be estimated and included even if they are
not easily quantifiable.
If some costs and benefits cannot be
accurately estimated, they should at least
be listed, along with the likelihood of their
occurrence and their expected impact.

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 FEASIBILITY ANALYSIS

Benefits might include:

Cost savings.
Improved customer service, productivity,
decision making, or data processing.
Better management control.
Increased job satisfaction and employee
morale.
A rigorous cost-benefit analysis is a good strategy for
ensuring the benefit of new information technology
exceeds the cost.

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 FEASIBILITY ANALYSIS
Costs might include:
Equipment costs
Initial outlay plus ongoing operating costs.
Software costs
Costs of acquiring, maintaining, supporting, and operating.
Human resource costs
Salaries, as well as costs of hiring, training, and relocating staff.
Site preparation costs.
Installation and conversion costs.
Supplies.
Overhead.
Financial charges.
The primary operating cost is maintaining the system.
Makes up 6575% of the organizations system efforts.

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 FEASIBILITY ANALYSIS

Capital budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There are three commonly used techniques:
Payback period
Calculates the number of years before the new savings
from the project equal the initial cost of the investment.
Select projects with shorter payback periods.

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 FEASIBILITY ANALYSIS

Capital Budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There are three commonly used techniques:
Payback period
Net present value (NPV)
Calculates and sums the discounted future cash flows
of the costs and benefits.
Select projects with higher positive NPV.
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 FEASIBILITY ANALYSIS

Capital Budgeting
Most organizations use a capital budgeting
return on investment technique to evaluate
the economic merits of different system
alternatives.
There are three
Calculates commonly
the effective used
interest rate techniques:
that would result in
Payback periodvalue of zero for the project.
a net present
NetSelect projects
present valuewith higher IRRs.
(NPV)
Internal rate of return (IRR)

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 BEHAVIORAL ASPECTS OF CHANGE

The best system will fail without the

support of the people it serves.
So the behavioral aspects of change are
crucial.
You need to be aware of and sensitive to
the types of behavioral problems that can
result from change.

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 BEHAVIORAL ASPECTS OF CHANGE

Why behavioral problems occur

Employees will tend to view change as good if
they believe it will affect them positively and
vice versa.
The Department of Defense with 3.3 million employees
has faced tremendous resistance to change in the
course of over 20 years of system integration attempts.
A more transparent system would likely expose
personal agendas and a project protection mindset.

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Employees are more likely to accept change if they are:
Young;
Highly educated; or
Comfortable with technology.

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
The rationale used to sell the system may need to vary
with the job responsibilities of the employees involved.

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Fool me once, shame on me . . .
Lets see if I even give you a
second chance.

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Employees may be too
Top management supportemotionally attached to their
Communication duties, i.e., sacred cows.
Biases and natural resistance to change

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management support
Communication Disturbances often create
Biases and natural resistance to change
negative feelings.
Disruptive nature of the change process

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 BEHAVIORAL ASPECTS OF CHANGE

To minimize adverse behavioral reactions,

it helps to understand why resistance
occurs:
Personal characteristics and background
Manner in which change is introduced
Experience with prior changes
Top management
May include fear of:
support
Communication
The unknown
Biases and natural
Failure resistance to change
Disruptive nature
Technology
of the change process
Fear Losing respect or status
Losing their jobs

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 BEHAVIORAL ASPECTS OF CHANGE

How people resist AIS changes

Resistance to change often takes one of
three forms:
Aggression
Behavior intended to destroy, cripple, or weaken the
systems effectiveness.
Examples: Increased error rates, disruptions, or
deliberate sabotage.

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 BEHAVIORAL ASPECTS OF CHANGE

How people resist AIS changes

Resistance to change often takes one of
three forms:
Aggression
Projection
Blaming the new system for any and every unpleasant
occurrence, i.e., the system becomes a scapegoat.
To preserve the integrity of the system, these criticisms
must be controlled or answered.

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 BEHAVIORAL ASPECTS OF CHANGE

How people resist AIS changes

Resistance to change often takes one of
three forms:
Aggression
Projection
Avoidance
If I dont use this thing, maybe it will go away!
At Davis Controls, the CEO eventually had to
terminate employees who avoided using a new
information system.

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 FEASIBILITY ANALYSIS

Reactions to change can be improved by

observing the following guidelines:
Meet users needs with respect to the form,
content, and volume of system output.
Keep communication lines open. Managers
and users should be fully informed about:
What changes are being made
Why
How it will benefit them
Who to contact with questions

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 FEASIBILITY ANALYSIS

Maintain a safe and open atmosphere.

If employees become hostile, its an uphill battle
you probably wont win.
Obtain management support.
Allay fears.
To the extent possible, reassure employees that
no major job losses or responsibility shifts will
occur.
If employees are terminated, severance pay and
outplacement services should be provided.

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 FEASIBILITY ANALYSIS

Solicit user participation.

It is ego enhancing, challenging, and intrinsically
satisfying.
Users who participate will be more committed to
using the system.
Provide honest feedback.
Explain which suggestions are and are not being
used and why.
Make sure users understand the system.
Dont underestimate training needs.

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 FEASIBILITY ANALYSIS

Humanize the system.

Employees shouldnt feel the computer is
controlling them or has usurped their positions.
Describe new challenges and opportunities.
The system can provide greater job satisfaction
and increased opportunities.
Reexamine performance evaluation.
Are performance standards and criteria realistic in
light of the change?
Test the systems integrity.
It important to minimize bad impressions

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 FEASIBILITY ANALYSIS

Avoid emotionalism.
Emotional issues should be allowed to cool, handled in
a non-confrontational manner, or sidestepped.
Present the system in the proper context.
Address the concerns of the people to whom youre
speaking, not the concerns of management or
developers.
Control the users expectations.
Dont oversell, and be realistic.
Keep the system simple.
Avoid complex systems that cause radical changes.

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 FEASIBILITY ANALYSIS

Ignoring the preceding steps can leave to

behavior issues that are difficult or
impossible to reverse.

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 SYSTEMS ANALYSIS

When a new or improved system is

needed, a written request for systems
development is prepared. That request
describes:
The current systems problems.
The reasons for the proposed changes.
The goals and objectives of a proposed
system.
The anticipated benefits and costs.

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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

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 SYSTEMS ANALYSIS

The initial investigation is conducted to:

Gain a clear picture of the problem or
need.
Sometimes what is thought to be the cause of the
problem is not the real source.

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 SYSTEMS ANALYSIS

The initial investigation is conducted to:

Gain a clear picture of the problem or need.
Determine the viability of the project and
expected costs and payoffs.

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 SYSTEMS ANALYSIS
A new AIS is useful when problems are a result of:
Lack of information
Inaccessibility of data
The initial investigation is conducted to:
Inefficient data processing
Gain a new
A clear
AISpicture of theproblems
will not answer problem oras:
such need.
A manager who has too many subordinates
Determine the viability of the project and
A manager who lacks organizational skills
expected costs
Failure and payoffs.
to enforce existing problems

Evaluate the scope and nature of the new

AIS.

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 SYSTEMS ANALYSIS

The initial investigation is conducted to:

Gain a clear picture of the problem or need.
Determine the viability of the project and
expected costs and Either:
payoffs.
Initiate the project as proposed.
Evaluate the scope and nature
Modify it. of the new
AIS. Abandon it.

Recommend whether to proceed.

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 SYSTEMS ANALYSIS

If the project is approved:

A proposal to conduct systems analysis is
prepared.
The project is assigned a priority and added
to the master plan.
The development team begins a survey of the
existing AIS.
The proposal will be modified as more
information becomes available.

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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

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 SYSTEMS ANALYSIS
A systems survey involves an extensive study of the
current AIS which could take weeks or months.
Objectives are:
Gain a thorough understanding of:
Company operations, policies, and procedures.
Data and information flow.
AIS strengths and weaknesses.
Available hardware, software, and personnel.
Make preliminary assessments of current and future
processing needs, and determine extent and nature of
needed changes.
Develop working relationships with users and build support.
Collect data that identify user needs, conduct a feasibility
analysis, and make recommendations to management.

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 SYSTEMS ANALYSIS

Data can be gathered from:

Employees.
Documentation such as organization charts
and procedure manuals.
External sources such as:
Consultants
Customers
Suppliers
Industry associations
Government agencies
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 SYSTEMS ANALYSIS

Four common methods of gathering data

are:
Interviews
Questionnaires
Observation
System documentation

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 SYSTEMS ANALYSIS

Four common methods of gathering data

are:
Interviews
Questionnaires
Observation
System documentation

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 SYSTEMS ANALYSIS

Advantages of interviews:
Can answer why questions.
Can allow for follow-up and clarification.
Provides opportunity to build positive relationships
with interviewees and support for new system.
Disadvantages of interviews:
Time-consuming.
Expensive.
Personal biases or self-interest may produce
inaccurate information.

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 SYSTEMS ANALYSIS
When you do interviews:
Make an appointment.
Explain the purpose ahead of time.
Indicate the amount of time needed.
Be on time.
Be familiar with the interviewees responsibilities.
Make notes on points to cover.
Put the interviewee at ease and let him/her do the
talking.
Pay attention to nonverbal cues.
Take notes and augment them with impressions after
the interview.
Request permission to tape critical interviews.

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 SYSTEMS ANALYSIS

Four common methods of gathering data

are:
Interviews
Questionnaires
Observation
System documentation

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 SYSTEMS ANALYSIS

Questionnaires can be used when:

The amount of information to be gathered is
small and well defined.
The information is to be obtained from many
people or from those who are remotely
located.
The information is intended to verify data from
other sources.

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 SYSTEMS ANALYSIS

Advantages of questionnaires:
Can be anonymous.
Not time-consuming to complete.
Inexpensive.
Allows the subject time to think about responses.
Disadvantages of questionnaires:
Does not allow in-depth questions or answers.
Does not allow follow-up or clarification.
Does not build relationships.
Difficult to develop.
May be ignored or completed superficially.

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 SYSTEMS ANALYSIS

Four common methods of gathering data

are:
Interviews
Questionnaires
Observation
System documentation

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 SYSTEMS ANALYSIS

Advantages of observations:
Can verify how the system actually works
rather than how it should work.
Results in greater understanding of systems.
Disadvantages of observations:
Time-consuming.
Expensive.
Difficult to interpret.
People may alter behavior while being
observed.
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 SYSTEMS ANALYSIS

When you do observations:

Identify what is to be observed and estimate
the time required.
Obtain permission.
Explain what will be done and why.
Dont make value judgments.
Take notes and document impressions ASAP.

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 SYSTEMS ANALYSIS

Four common methods of gathering data

are:
Interviews
Questionnaires
Observation
System documentation

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 SYSTEMS ANALYSIS

Advantages of systems documentation:

Describes how the system should work.
Written form facilitates review and analysis.
Disadvantages of systems documentation:
Time consuming.
May be elusive.
When you examine systems documentation:
Keep in mind that the system doesnt always work as
it should per the documentation.
If documentation is unavailable, it may be worthwhile
to develop it.

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 SYSTEMS ANALYSIS

Once the data is gathered, document

findings and model the existing system.
Documentation consists of:
Questionnaire copies
Interview notes
Memos

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 SYSTEMS ANALYSIS

Another form of documentation is a

system model:
Physical models illustrate how a system
functions by describing:
Flow of documents.
Computer processes performed and the people
doing them.
Equipment used.
Any other physical elements.
Logical models illustrate what is being done
regardless of how the flow is accomplished.
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 SYSTEMS ANALYSIS

When documentation is complete, analyze

the existing system:
Evaluate the AISs strengths and weaknesses
to develop ideas for designing and structuring
the new AIS.
Try to retain strengths.
Correct weaknesses.
Sometimes, you need revolutionary, rather
than evolutionary change.
Called reengineering.

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 SYSTEMS ANALYSIS

At the end of this phase, prepare systems

survey report:
Outlines and documents the data gathered.
Provides recommendations that result from
the systems survey.

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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

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 SYSTEMS ANALYSIS

After the systems survey, a more thorough

feasibility analysis is conducted.
This analysis is updated regularly as the
project proceeds and costs and benefits
become clearer.

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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems
requirements
Systems analysis report

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
Describes what is to be done
and by whom.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
Describes name, size, format,
- Data elements
source, and significance of
necessary data elements.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure A preliminary structure showing
how the data elements will be
organized into logical records.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs Layouts of system outputs and a
description of their purpose,
frequency, and distribution.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs A copy of system inputs and a
description of their contents,
source, and who is responsible
for them.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs A description of deadlines,
- Constraints schedules, security requirements,
staffing limitations, and legal
requirements.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs
- Constraints
- Controls Controls that are needed to
ensure accuracy and reliability.

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 SYSTEMS ANALYSIS

Once a project clears the feasibility hurdle, the company

identifies the information needs of AIS users and
documents systems processes, including:
- Processes
- Data elements
- Data structure
- Outputs
- Inputs
- Documentation constraints
- Controls
Changes in staffing, job
- Reorganizations functions, etc., that would be
necessary.

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 SYSTEMS ANALYSIS

Issues:
There is much to be specified, even for a
simple AIS.
It may be difficult to get employees to
accurately articulate their needs.
Errors are best caught early, as the cost to
correct them increases significantly the farther
you are into the project.

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 SYSTEMS ANALYSIS

Systems objectives and constraints

Many entities take a systems approach to
determining information needs and systems
requirements.
Problems and alternatives are viewed from
the standpoint of the entire organizationas
opposed to a single department.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
Able to help users make
decisions.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
Benefits exceed costs.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
Data is processed accurately
and reliably.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
You can access it when you
need it.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
- Timeliness
More critical information is
provided first.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness
- Economy
- Reliability
- Availability
- Timeliness
- Customer service
Efficient and courteous.
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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy Can handle peak periods.
- Reliability
- Availability
- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability
- Availability
- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability Can accommodate changes.

- Timeliness
- Customer service

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness Easily understood.
Facilitates problem solving and
- Customer service future development.

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness - Auditability
- Customer service

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 SYSTEMS ANALYSIS

Systems objectives must be identified, so

analysts and users can focus on those elements
most vital to success of the AIS. These may
include:
- Usefulness - Capacity
- Economy - Ease of use
- Reliability - Flexibility
- Availability - Tractability
- Timeliness - Auditability
- Customer service - Security Available only to
authorized users.

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 SYSTEMS ANALYSIS

There are often trade-offs between objectives.

Organizational constraints make it impossible to
develop all parts of an AIS simultaneously.
You divide it into modules that are analyzed,
developed, and installed independently.
When changes are made, only the affected modules
need to be changed.
The modules should be properly integrated into a
workable system.

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 SYSTEMS ANALYSIS

Success often depends on the project

teams ability to cope with organizational
constraints, including:
Requirements of governmental agencies.
Managerial policies and guidelines.
Lack of sufficient, qualified staff.
Capabilities and attitudes of users.
Available technology.
Limited financial resources.
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 SYSTEMS ANALYSIS

Strategies for determining

requirements:
One or more of the following four strategies
are used to determine AIS requirements:
Ask users what they need
This is the simplest and fastest strategy.
But many people dont realize or understand their true
needs.
Its sometimes better to ask them what decisions they
make and what processes they are involved in.
Users also need to think beyond their current
information needs.
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 SYSTEMS ANALYSIS

Strategies for determining

requirements:
One or more of the following four strategies
are used to determine AIS requirements:
Ask users what they need
Analyze existing systems
Internal and external systems should be analyzed to
avoid reinventing the wheel.

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 SYSTEMS ANALYSIS

Strategies for Determining

Requirements:
Certain modules:
One or more
May not be used as intended
of the following four strategies
May be augmented by manual tasks
are used to determine
May AIS requirements:
be avoided altogether
Ask
users what theywhether
Helps determine need the system really needs to be
simply modified rather than replaced.
Analyze existing systems
Examine existing system use

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 SYSTEMS ANALYSIS

Strategies for Determining

Requirements:
One or more of the following four strategies
Entails
are used to determine
roughing out AIS requirements:
a system for users to critique.
When they see something on a screen, its easier to
Ask users what they need
identify what they like and dont like.
Analyze
Goesexisting
throughsystems
iterations of improving and reviewing
with users
Examine untilsystem
existing users agree
use on their needs.
Create a prototype

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 SYSTEMS ANALYSIS

Documentation and approval of user

requirements:
Detailed requirements for the new AIS should
be created and documented.
How to produce the required features is
determined during the design phases of the SDLC.
The requirements list should be supported by
sample input and output forms and charts that
make it easier to conceptualize.
A nontechnical summary is often prepared for
management.

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 SYSTEMS ANALYSIS

Once user requirements have been

determined and documented, the project
team:
Meets with users.
Explains the requirements.
Obtains their agreement and approval.
When an agreement is reached, user
management should sign off on the
requirements.
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 SYSTEMS ANALYSIS

The project development team will conduct

the systems analysis in five steps:
Initial investigation
Systems survey
Feasibility study
Information needs and systems requirements
Systems analysis report

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 SYSTEMS ANALYSIS

The last step in systems analysis is the systems

analysis report.
Summarizes and documents the activities.
Serves as a repository of data from which designers
can draw.
Outlines:
Goals and objectives of the new system.
Scope of the project.
How the new system fits into the companys master plan.
User processing requirements and information needs.
Feasibility analysis.
Recommendations for the new system.

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 SYSTEMS ANALYSIS

A go-no-go decision is usually made three

times during systems analysis:
During the initial investigation to determine
whether to go ahead with a systems survey.
At the end of the feasibility study to determine
whether to proceed with the information
requirements step.
At the completion of the analysis phase to
decide whether to proceed to the next phase
(conceptual design).
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 SYSTEMS ANALYSIS

When systems analysis is completed, the

project can move on to:
Conceptual design phase
Physical design phase
Implementation and conversion
Operation and maintenance

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 SUMMARY
Youve learned about the five phases in the
systems development life cycle, with a particular
emphasis on systems analysis.
Youve learned who the players are in the
systems development process.
Youve learned about various techniques that
are used to plan the development of a system.
Youve reviewed some techniques for
determining system feasibility.
Youve learned about behavioral responses to
systems changes and how dysfunctional
behavior can be minimized.

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