chapter 20 introduction to systems development and systems analysis copyright © 2012 pearson...

Chapter 20Introduction to Systems Development and Systems Analysis

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall20-1

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 orminimize the resulting problems.

Discuss the key issues and steps in systems analysis.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 20-2

Why Update Systems?

User or business changes

Technology changes

To improve business process

Create competitive advantage

Increase productivity gains

Integrate multiple systems

Aging systems need replacement


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 projects were late 54 percent were over budget 66 percent were unsuccessful 30 percent were canceled before completion

American Management Systems found that: 75 percent of all large systems are not used Not used as intended, or Generate meaningless reports or inaccurate data


Systems Development Life Cycle (SDLC)

System Analysis

Conceptual Design

Physical Design

Implementation &

Conversion

Operations & Maintenance


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.


Systems Analysis Activities

Initial Investigation• What’

s the Problem

• What’s the Scope

Systems Survey• Gain

Understanding of Company

• Preliminary Assessment of Needs & Changes Required

• Develop Working Relationships

• Collect Data

Feasibility Study• Deter

mine Project Viability

Information needs and System Requirements• What do

Users Need

• Document System Requirements

Systems Analysis Report• Summ

arize and Document Activities


People Interacting in SDLC

Management

Accountants

Users

Information systems steering committee

Project development team

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 it will be developed Who will develop it How needed resources will be acquired Where the AIS is headed


Planning Technique—PERT 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 path—the path requiring the greatest amount of

time is determined


Planning Technique—GANTT 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


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

Benefits and costs are estimated and compared to determine whether the system is cost beneficial.

Benefits and costs that are not easily quantifiable are estimated and included.

If they cannot be accurately estimated, they are listed, and their likelihood and expected impact on the organization evaluated.

Techniques Payback Period

Number of years required for the net savings to equal the initial cost of the investment.

Net Present Value (NPV) Future benefits are discounted

back to the present. Initial cost is subtracted. Positive NPV = economically

feasible.

Internal Rate of Return (IRR) The effective interest rate that

results in an NPV of zero. A project’s 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 Lack of top management support Lack of communication Disruptive nature of change Methods of instituting change Biases and emotions Personal characteristics and background


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


chapter 20 introduction to systems development and systems analysis copyright © 2012 pearson...

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