Systems Analysis &

Design
Introduction

Based on http://www.csun.edu/~dn58412/IS431/IS431_SP13.html

System Development
Environment: Participants and
Context
Information system applications - WHAT
Information systems and their
stakeholders WHO
Definition of a system
Role of systems analysts
Knowledge and skill set for system
analysts
IS Building Blocks
Business modeling why, what, how?

Information Systems vs.

Information Technology

Information System (IS): People, data,

processes, and information technology that
interact to collect, process, store, and provide
as output the information needed to support
and improve operational, tactical, and strategic
activities of an organization (business).

Information Technology (IT): A combination

of computer technology (hardware and
software) with telecommunications technology
(data, image, and voice networks)
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From Facts to Knowledge

Data raw facts about people, places, events, and

things that are of importance in an organization.

Information data that has been processed or

reorganized into a more meaningful form for someone.

Knowledge data and information that is further

refined based on the facts, truths, beliefs, judgments,
experiences, and expertise of the recipient.

Wisdom when to apply a certain knowledge

Decision-Making in an Organization

Decision-Making Levels of an
Organization

Executive Level
Long-term decisions (Strategies)
Unstructured decisions (Competitions)

Managerial Level
Decisions covering weeks and months (Tactics)
Semi-structured decisions (Effectiveness)

Operational Level
Day-to-day decisions (Operations)
Structured decisions (Efficiency)

Information Systems in
Organization
STRATEGIC

EXECUTIVE INFORMATION SYSTEMS

TACTICAL

MANAGEMENT INFORMATION SYSTEMS

TRANSACTION PROCESSING SYSTEMS

OPERATIONAL

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VALUE CHAIN
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Information System in Context

Types of Information Systems

Transaction Processing Systems

Management Information Systems
Executive Information Systems
Decision Support Systems
Expert Systems
Functional Area Information Systems
(Accounting, HR, Sales, Production )
Office Automation Systems (Personal
Productivity Software)
Collaboration Systems (Groupware)
Enterprise Systems

Front- and Back-Office

Information Systems

Front-office information systems support business

functions that extend out to the organizations customers
(or constituents).
Marketing
Sales
Customer management

Back-office information systems support internal

business operations of an organization, as well as reach out
to suppliers (of materials, equipment, supplies, and
services).

Human resources
Financial management
Manufacturing
Inventory control
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A Federation of Information Systems

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Stakeholders of a System

Stakeholder: any person who has an interest in

an existing or proposed information system.
Stakeholders can be technical or nontechnical
workers. They may also include both internal
and external workers.
Information workers are those workers whose
jobs involve the creation, collection, processing,
distribution, and use of information.
Knowledge workers are a subset of
information workers whose responsibilities are
based on a specialized body of knowledge.

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Perspectives on an Information
System

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System Owners

System owners an information systems

sponsors and executives advocate, usually
responsible for funding the project of
developing, operating, and maintaining the
information system. They define the SCOPE
of a system: what business problem is to be
solved
They view the system in terms of cost/benefit to
solve business problem

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System Users

System users use or are affected by an

information system on a regular basis
capturing, validating, entering, responding to,
storing, and exchanging data and information.
They define the REQUIREMENTS of the system.
Internal users

Clerical and service workers

Technical and professional staff
Supervisors, middle managers, and executive managers
Remote and mobile users (internal but disconnected)

External users

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System Designers and System

Builders

System designers translate system users

business requirements and constraints into
technical solution: computer databases, inputs,
outputs, networks, and software meeting the
system users requirements. Their activities
relate to the DESIGN of a system

System builders construct information systems

based on the design specifications from the
system designers. Their activities relate to
building the COMPONENTS of the system.

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Systems Analysts

Systems analysts study the problems and

needs of an organization to determine how
people, data, processes, and information
technology can best accomplish improvements
for the business. They are FACILITATORS of the
system development project.
A programmer/analyst (or analyst/programmer)
includes the responsibilities of both the computer
programmer and the systems analyst.
A business analyst focuses on only the
nontechnical aspects of systems analysis and design.

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The Systems Analyst as a

Problem-Solver

What problems to solve: (Project Definition)

True problem situations, either real or anticipated, that
require corrective action
Opportunities to improve a situation despite the
absence of complaints
Directives to change a situation regardless of whether
anyone has complained about the current situation

Why: (Project Justification)

Effective: Do right thing
Efficient: Do thing right
Competitive: Do thing differently

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Systems Analysts At Work

In traditional businesses
Working in traditional information services organizations
(permanent project teams)
Working in contemporary information services
organizations (dynamic project teams)

In outsourcing businesses
Contracted to traditional businesses

In consulting businesses
Contracted to traditional businesses

In application software businesses

Building software products for traditional businesses

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Systems Analyst as a Facilitator

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Skills Needed by the Systems Analyst

Working knowledge of information technology

Computer programming experience and expertise
General business knowledge
General problem-solving skills
Good interpersonal communication skills
Good interpersonal relations skills
Flexibility and adaptability
Character and ethics
Systems Analysis and Design Skills

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Information Systems Architecture

Information systems architecture - a
unifying framework into which various
stakeholders with different perspectives can
organize and view the fundamental building
blocks of information systems.

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Focuses for Information Systems

KNOWLEDGE (Data) the raw material used to

create useful information.

PROCESSES the activities (including management)

that carry out the mission of the business.

COMMUNICATION (Interfaces) how the system

interfaces with its users and other information systems.

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KNOWLEDGE Focus

System owners view

Interested not in raw data but in information that adds
new business knowledge and information that help
managers make intelligent decisions.
Data entities and business rules.

System users view

Something recorded on forms, stored in file cabinets,
recorded in books and binders, organized into
spreadsheets, or stored in computer files and databases.
Focus on the business issues as they pertain to the data.
Data requirement a representation of users data in
terms of entities, attributes, relationships, and rules
independent of data technology.
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KNOWLEDGE Focus

System designers view

Data structures, database schemas, fields,
indexes, and constraints of particular database
management system (DBMS).

System builders view

SQL
DBMS or other data technologies

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PROCESS Focus

System owners view

Concerned with high-level process called business
functions
Business function a group of related processes that
support the business. Functions can be decomposed
into other subfunctions and eventually into processes
that do specific tasks. (e.g. Sales Function)
A cross-functional information system a system
that supports relevant business processes from several
business functions without regard to traditional
organizational boundaries such as divisions,
departments, centers, and offices. (e.g. Production
Function)

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PROCESS Focus

System users view

Concerned with work that must be performed to provide
the appropriate responses to business events.
Business processes activities that respond to
business events.
Process requirements a users expectation of the
processing requirements for a business process and its
information systems.
Policy a set of rules that govern a business process.
Procedure a step-by-step set of instructions and logic
for accomplishing a business process.
Work flow the flow of transactions through business
processes to ensure appropriate checks and approvals
are implemented.
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PROCESS Focus

System designers view

Concerned with - which processes to automate
and how to automate them
Constrained by limitations of application
development technologies being used
Software specifications the technical design
of business processes to be automated or
supported by computer programs (off-shelf, inhouse) to be written by system builders.

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PROCESS Focus

System builders view

Concerned with programming logic that implements
automated processes
Application program a language-based, machinereadable representation of what a software process is
supposed to do, or how a software process is
supposed to accomplish its task.
Prototyping a technique for quickly building a
functioning, but incomplete model of the information
system using rapid application development tools.

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COMMUNICATION Focus

System owners view

Concerned with communications scope of an
information system.
Who (which business units, employees, customers,
and partners) must interact with the system?
Where are these business units, employees,
customers, and partners located?
What other information systems will the system
have to interface with?

System users view

Concerned with the information systems inputs
and outputs (Interface Requirements).
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COMMUNICATION Focus

System designers view

Concerned with the technical design of both the user and
the system-to-system communication interfaces.
Interface specifications technical designs that
document how system users are to interact with a system
and how a system interacts with other systems.
User dialogue a specification of how the user moves
from window to window or page to page, interacting with
the application programs to perform useful work.

System builders view

Concerned with the construction, installation, testing and
implementation of user and system-to-system interface
solutions.
Middleware utility software that allows application
software and systems software that utilize differing
technologies to interoperate.

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System Development Process

Overview
System initiation the initial planning for a project to define
initial business scope, goals, schedule, and budget.
System analysis the study of a business problem domain
to recommend improvements and specify the business
requirements and priorities for the solution.
System design the specification or construction of a
technical, computer-based solution for the business
requirements identified in a system analysis.
System implementation the construction, installation,
testing, and delivery of a system into production.

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System Development as Problem

Solving

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Business Modeling: Why, What ,

How ?

An IS professional can add value in helping an

organization to define and improve its business
processes and design appropriate IS.
What are business processes and how can they be
designed to support an organizations objectives?
How do we design information systems that
collect, maintain, and process the data needed to
generate the outputs required by management to
effectively manage business processes in the
information age?
REAL Business Process Modeling

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Business Processes

ACTIVITIES

Acquisition/Payment
Conversion
Business Process
Business Process
Human Resources
Financial Resources
Supplies
Inventories
Property, Plant and
Equipment
New Ideas (R & D)
Miscellaneous services

Operations
(Varies widely
depending upon
the industry)

Sales/Collection
Business Process
Marketing and Sales
Service
Promotion
Outbound logistics
Collection and Credit
E-Commerce

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Acquisition/Payment Process

Regardless of the type of good or service being

acquired, the following are typical operating
events in the acquisition/payment business
process:

Request goods or services.

Order goods or services.
Receive and inspect goods or services.
Store and/or maintain goods.
Pay for goods or services.
Return goods.

Specifics may vary

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Sales/Collection Process

Although there is some diversity across the types

of goods and services sold, the sales/collection
process typically includes the following events:

Receive an order for goods or services.

Select and inspect goods or services to be delivered.
Prepare goods or services for delivery.
Deliver goods or services.
Receive payment for goods or services.
Accept customer returns of goods.

Specifics may vary

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Conversion Process

General activities in the conversion process include:

Assembling.
Growing.
Excavating.
Harvesting.
Basic manufacturing (e.g., metals, woods, and chemicals).
Finished manufacturing (e.g., tools, instruments, components).
Cleaning.
Transporting.
Distributing.
Providing (e.g., power, water, protection, communication).
Training.
Discovering (e.g., research and development).

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Business Process Events

A business process is a series of activities intended to

accomplish the strategic objectives of an organization.
Operating Events are the operating activities performed
within a business process to provide goods and services
to customers.
Information Events include three activities: recording
data about operating events, maintaining reference data
that are important to the organization, and reporting
useful information to management and other decision
makers.
Decision/Management Events are activities where
management and other people make decisions about
planning, controlling, and evaluating business processes.

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Business Process and

Business Events

Event 1:
Marketing

Event 2:
Take Customer
Order

Event 3:
Ship the
Goods

Event 4:
Collect
Payment

Business Process: Delivering Goods and Collecting

Payment
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Business Process Activities (Events)

Decision/
management
events

Define &Trigger

Trigger

Operating
events

Trigger

Information
events

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Processes that Trigger

Information System Responses
Business
events

Information Needs
of Decision Makers

Trigger

Trigger

Information
processes

Information
processes

Record (event data)

Maintain
(agent, resource,
location data)

Report
(in many formats)

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Process Analysis: Golden Pizza

Decision/Management

Operating Events

Information Events

Analyzing the
market,
competitors, and
customers.
Deciding what
pizzas to place on
Goldens menu.
Determine if the
cooked pizza is
correct for
presenting order
form.

Receive customer
pizza order.
Receive customer
payment.
Make pizza.
Deliver pizza to
customer.

Generate a customer
analysis report.
Generate a report of
sales by pizza type.
Generate a gross
margin analysis.
Generate a report of
lost sales (due to the
20 minutes
guarantee.)

Trigger
Trigger

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Developing a REAL Business

Process Model
REAL Business Process Modeling is a formal method
of identifying and representing the essential
characteristics that collectively describe business
processes and events.
REAL = Resources, Events, Agents, and Locations.
Preparing a REAL Business Process Model requires
the identification of strategically significant
business activities and essential characteristics
about these business activities.

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Developing a REAL Business

Process Model

Step 1: Understand the organizations

Environment and Objectives
Step 2: Review the business process and identify
the strategically significant operating events
Step 3: Analyze each event list in #2 to identify
Resources, Events, Agents, and Locations
Step 4: Identify the relevant behaviors,
characteristics, and attributes of REAL
Step 5: Identify and document direct relationships
within REAL

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Step 1: Understand The

Organizations Environment and
Objectives

REAL modeling is an aid in analyzing an organization

and its activities.
Collect data and insights about the organizations
objectives, industry, value chain, strategies, product
lines, and customers.
Pay attention to the organizations people, structure,
technologies, and measurements.
A better understanding of these factors will enhance
the evaluation of effective and efficient business
processes valuable, competitive, meeting the
organizations objectives.

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Understanding the Business Environment

Industry
Objectives

The Company
Competitors

Strategies

Technologies

Measurements
People
Capital
Technology

Value Chain
Structure

Products

Economic
Forces
Customers

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Step 2: Review the Business Process

and Identify the Strategically
Significant Operating Events

Begin by dividing the organization into its business

processes. What happened? How and Why?

REAL graphical modelinclude the strategically

significant operating events that comprise a
business process. (The ones that the organization
wants to plan, evaluate and execute/or control)
Begin REAL graphical model by representing events
with a descriptor.

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Step 2 example: MrKools Retail

Model
Events
Sell
merchandise
Receive
customer
payment

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Step 3: Analyze Each Event Listed in

Step 2
to Identify R E A L

Describe essential characteristics of the

Eventsthe characteristics which:
if omitted, would render an inaccurate or incomplete
description of the event.
form the basis for generating outputs for information
customers to plan, execute, control and evaluate
organization activities.

What kinds of Resources were involved?

What roles are performed and who/what
Agents perform the roles?
Where did the event occur? (Location)
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Step 3 example: MrKools REAL

Model
RESOURCES/
LOCATION

EVENTS

Merchandise
Sell
Merchandise

AGENTS

Salesperson

Register

Cash

Receive
Customer
Payment

Customer

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Step 4: Identify the Relevant

Behaviors, Characteristics, and
Attributes of REAL

At what time or sequence in the process should

the event occur?
What are the exceptions to the normal
ordering of events in the process?
What is the proper authorization or approval to
execute this event?
What is a reasonable amount of resources
associated with this event?
What are the acceptable locations for executing
this event?
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Step 4 example: MrKools REAL Model

What is an acceptable time period between events

in a business process?
How might the order of events vary by customer?
Does the location from which goods are shipped
matter?
How many salespeople are assigned to each
customer?
Should a sales order clerk have custody of cash?

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Sequence of Events
Ship merchandise
OR

Receive payment

Receive payment

Ship merchandise

Provide Credit

Cash in Advance

The sequence of events may also be a function of the

physical characteristics of the event (in production)
Sometimes the sequence of events is dictated by
business policy

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Example: MrKools Business Rules

Each sale takes place at a specific register
(location).
Each sale involves only one customer
(external agent).
Only one salesperson (internal agent) is
responsible for each sale.
Each sale involves one or more items of
merchandise (resource).

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Example: MrKools Business Rules

Additional rules:
The salesperson and customer do not have a direct
relationship, The customer and salesperson are
related only through the sale.

Sales can only involve merchandise, not fixed

assets.
Sales cannot involve more merchandise
(quantity) than McKool has on hand.
Sales cannot involve merchandise McKool does
not offer.
The store keeps records on who sold which
merchandize to whom at a specific cash register
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Step 5:Identify and Document Direct

Relationships within REAL

Draw a line from each event to each resource, internal

agent, external agent, and location associated with that
event. On the line, add a meaningful term or phrase
that describes the relationship between the objects.
Graphically display events that are related to other
events to show the required sequence of events in a
business process. Draw lines from event to event in the
correct sequence
Document direct relationships between pairs of agents,
locations, and resources that exist independently of an
operating event. Connect the pairs with a line.

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Step 5 example: MrKool REAL Model

Merchandise
Merchandise

Register
Register

Cash
Cash

invo

lves

es at
k
ta ce
pla
tak
pla es
ce
at

ses
a
e
r
inc

Sell
Sell
Merchandise
Merchandise
results in

Receive
Receive
Customer
Customer
Payment
Payment

al
n
r
e
int ent
ag

ex
te
ag rna
en l
t
al
n
r
te
ex g en t
a

Salesperson
Salesperson

Customer
Customer

internal agent

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Linking Processes

Business processes are linked together in two

ways:
sharing common resources or
an event in one process triggering an event in another
process.

Collectively business processes result in the

acquisition of goods and services the
conversion of acquired goods and services into
goods and services for customers the
delivery of the goods and services to customers
the collection of payment from customers.
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Linked Processes
Acquisition
Acquisition
Inventory
Inventory

(Share a common Resource)

Sales
Sales
(One triggers another)
Collection
Collection

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Summary:
A Model of Business Events
Internal
Agents

Resources
Event
Location

External
Agents

What happened?
When did it happen?
Who was involved?
What resources were involved?
Where did it occur?

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From REAL Model ...

Resources

Events

Agents

Inventory

Sales

Salesperson

Customer

Cash

Cash
Collection
Cashier

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to ERD

Inventory

Include

Sales

Sell

Salesperson

Sell to
1

Pay for
M

Cash

Include

Cash
Collection

1
M

Customer

Receive
from

M
Receive
by

Cashier

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