Introduction to Systems Development and Systems Analysis

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 the key issues and steps in systems analysis. WHY UPDATE SYSTEMS? User or business changes Increase productivity gains Technology changes Integrate multiple systems To improve business process Aging systems need replacement Create competitive advantage SOFTWARE DEVELOPMENT PROBLEMS Most software development projects deliver less, cost more, and take longer than expected. Standish Group found that: 70 percent of software development 66 percent were unsuccessful projects were late 30 percent were canceled before completion 54 percent were over budget American Management Systems found that: 75 percent of all large systems are not Not used as intended, or used Generate meaningless reports or inaccurate data SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC)
System Analysis

Operations & Maintenance

Conceptual Design

Implementation & Conversion

Physical Design

SDLC STEPS System Analysis Information about system needs, costs, and so on are gathered. Conceptual Design Gather system/user requirements. Physical Design Concepts are translated into detailed specifications. Implementation and Conversion New hardware and software are installed and tested. Employees are hired and trained or existing employees relocated. Processing procedures are tested and modified. Standards and controls for the new system are established and system documentation completed. Operation and Maintenance New system is periodically reviewed. Modifications are made as problems arise or as new needs become evident.

Introduction to Systems Development and Systems Analysis

SYSTEMS ANALYSIS ACTIVITIES

Initial Investigation
Whats the Problem Whats the Scope

Systems Survey
Gain Understanding of Company Preliminary Assessment of Needs & Changes Required Develop Working Relationships Collect Data

Feasibility Study
Determine Project Viability

Information needs and System Requirements

What do Users Need Document System Requirements

Systems Analysis Report

Summarize and Document Activities

PEOPLE INTERACTING IN SDLC Management Information systems steering committee Accountants Project development team Users Systems analysts and programmers PLANNING SDLC Project Development Plan Cost/benefit analysis Developmental and operational requirements (people, hardware, software, and financial) Schedule of the activities required to develop and operate the new application Master Plan What the system will consist of How needed resources will be acquired How it will be developed Where the AIS is headed Who will develop it PLANNING TECHNIQUEPERT CHART Program Evaluation and Review Technique (PERT) Network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion and initiation of activities Completion time estimates made Critical paththe path requiring the greatest amount of time is determined PLANNING TECHNIQUEGANTT CHART A bar chart with project activities on the left-hand side and units of time across the top Graphically shows the entire schedule for a large, complex project

Introduction to Systems Development and Systems Analysis

FEASIBILITY ANALYSIS Does it make sense to proceed with new system? Economic: Will system benefits justify the time, money, and resources required to implement it? Technical: Can the system be developed and implemented using existing technology? Legal: Does the system comply with all applicable federal and state laws, administrative agency regulations, and contractual obligations? Scheduling Can the system be developed and implemented in the time allotted? Operational Does the organization have access to people who can design, implement, and operate the proposed system? Will people use the system? CAPITAL BUDGETING: ECONOMIC FEASIBILITY Cost-Benefit Analysis Techniques Benefits and costs are estimated and compared to Payback Period determine whether the system is cost beneficial. Number of years required for the net savings to equal Benefits and costs that are not easily quantifiable are the initial cost of the investment. estimated and included. Net Present Value (NPV) If they cannot be accurately estimated, they are Future benefits are discounted back to the present. listed, and their likelihood and expected impact on Initial cost is subtracted. the organization evaluated. Positive NPV = economically feasible. Internal Rate of Return (IRR) The effective interest rate that results in an NPV of zero. A projects IRR is compared with a minimum acceptable rate to determine acceptance or rejection. SYSTEM FAILURE DUE TO CHANGE The best system will fail without the support of the people it serves. Why people resist change: Fear Methods of instituting change Lack of top management support Biases and emotions Lack of communication Personal characteristics and background Disruptive nature of change TYPES OF RESISTANCE Aggression Behavior that destroys, cripples, or weakens system effectiveness, such as increased error rates, disruptions, or deliberate sabotage Projection Blaming the new system for everything that goes wrong Avoidance Ignoring a new AIS in the hope that the problem (the system) will eventually go away PREVENTING RESISTANCE Obtain management support Meet user needs Involve users Stress new opportunities Avoid being too emotional Provide user training Reexamine performance evaluation to make sure they are aligned with new system Keep communication lines open Control users expectations