Systems Analysis and Design - Chapter 1

Determine Cash Flows

Contains costs and benefits over a number of years to show cash flow over time. -Determine ROI -Determine BEP -Determine NPV

What are deliverables?

Specific documents and files that explain various elements of the system. ** It is what you turn in at the end of each phase of the SDLC and the prereq of the next.

Whate are the Systems Analyst Skills?

Technical, business, analytical, Interpersonal, Management, and Ethical

Common methods for evaluating a projects worth

- Return on investment (ROI):measures average rater of return earned on the $ invested in the projecto. ROI= (Total benefits - Total Costs)/Total Costs - Break- Even Point (BEP): amount of yrs it takes to recover original investment. # of yrs in (-) +[That years Net cash flow - Thats years Cumulative cash flow] / [That yeats Net cash flow] ** BEP ignores cash flows that occur past the break even point so its biased against long term investments - Net Present Value (NPV): the difference b/w the total present value of the benefits and the total present value of the costs. ** as long as NPV is greater than ZERO the project is considered economically acceptable

Examples of Business Needs

- Increase sales - Improve market share - improve access to information - improve cutomer service -decreasr product defects

Requirements Analyst Role

Focuses on eliciting the requirements form the stakeholders associated with the new system

Feasibility Analysis

Guides the organization in determining whether to proceed with a project. It also identifies the important risks associated with the project that must be managed before the project is approved. Technical, Economical, and Organizational (3 parts!!)

What is an approval committee?

a steering committee that meets regualrly to make infomrations systems decisions. It is usually made up of a senior executive or any other decision-making body that governs the use of business resources.

Steps to conduct an economic feasibility analysis?

1. Identify Costs and Benefits 2. Assign Values to Costs and Benefits 3. Determine Cash Flow 4. Assess Projects Economic Value - ROI - BEP - NPV

BPM- the four steps

1. defining and mapping the steps in a business process 2. creating ways to improve on steps that add value 3. finding ways to eliminate steps that dont add value 4. creating or adjusting electronic workflows to match the improved process maps.

How to access organization feasibility?

1. is to understand how well the goals of the project align with the business objectives and organizational strategies. 2. to is to conduct a steakholder analysis (a person or group that can affect the new system)

What is a Project Sponser?`

A person or group who has an interest in the systems success. This person works throughout the SDLC to make sure the project is moving in the right direction. (usually from marketing, accounting, or finance)

Special Issues seciton of System Request

Any information that the project team needs to be aware of any special cirucmstances that could affect the outcome of the entire system ex. a deadline, any important note, security clearance needed

BPA

Business Process Automation: technology components are used to compliment or substitute for manual information processes with the intent of ganining cost effeciencies.

BPR

Business Process Reengineering: means changing the fundamental way in which the org operates- "obliterating" teh current way and adding a whole new concept with technology. ** the riskiest because of the significant changes**

BPI

Business process improvement: creating new, re-designed processes to improve teh workflows, and/or utilizing new technologies enabling new process structures. ** has the most potential**

BPM

Business process management: **Now in days many IS projects grow out of BPM** is a methodology used by organizations to continuously improve end-to-end business processes.

Tangible Value

Can be quantified and measured easily (2% reduction in operating costs, reductions in staff, reductions in inventory, etc).

SDLC hierchy

Each "phase" is composed of "steps", which rely on techniques that produce "deliverables" (specific documents that explain various elements of the system)

Define gradual refinement

Each phase refines and elaborates on the work done previously

Project Manager Role

Ensures the project gets done on time and within budget. Makes sure the value was given to the organizaiton

What are the first steps?

First steps in the process are to identify a project that will deliver value to the business and to create a system request that provides the basic information abut the proposed system.

Change Management Analyst

Focuses on the people and management issues surrounding the system installation. They ensure adequate documentation and support is available to users and provides users with training on the new system. They also develop strategies to overcome resistance.

Systems Analyst

Key Person in SDLC! - analyzes the business solution, identifies opportunites for improvement, and designs information systems to implement improvements - they also may serve as change agents who identify organizational improvement needed, design systems to implement those changes, and motivate others to use the system.

Assign Values to Costs and Benefits

Once the types of costs and Benefits have been identifies, teh systesm analyst needs to assign specific dollar values to them

SLDC

System Developement Life Cycle- the process of determining how an information system (IS) can support business needs, designing the system, building it, and delivering it to its users.

Implementation Phase (4)

System is actually built (or purchased) and installed. 1. Construction- system is built and tested 2. installation- process by which the old system is turned off and the new system is turned on (GO LIVE). This transitions includes training. 3. Support Plan: est. by analyst team- post implementation review and systematic way for identifying major and minor changes needed for the new system. * this is usually the longest and most expensive part of teh development process.

Identify Costs & Benefits

The costs and benefits are broken down into 4 categories: 1. Development Costs 2. Operational Costs 3. Tangible Costs 4. Intangibles

Organizational Feasibility

This is how well the system will be accepted by its users and incorporated into the ongoing operations of the organization. "If we build, will they come?"

What do software architects do?

This person takes a holistic view of the organizations entire IT environment and guides application design decisions.

Discounted Cash Flow Technique

To convert future cash flow to its present value: PV= [Cash flow amount] / [1 + rate of return]^n *where n is the year in which teh cash flow occurs.

What is a system request?

a system request presents a brief summary of a business need. It also explains how a system supports need and will create business value.

Economic Feasibility

also called the cost benefit analysis, that identifies the costs and benefits associated with the system. "Should we buid it?"

Design Phase (3)

decides how the system will operate in terms of the hardware, software, and network infrastructure; the user interface forms and reports that will be used. Also the specfic programs, databases and files that will be needed. 1. Design strategy: will teh systems be developed by the companys own programmers, outsourced, or buy an existing software package. 2. Architecture Design: describes hardware, software, network infrastructure, etc that will be used. 3. DB and File specifications: defined what data will be sotred and where. 4. Program design; what programs will need to be written and where. *Deliverable: system specifications- usually the feasibility and project plan are reexamined and revised after design phase.

Systems Analyst Role

focuses on IS issues. This person develops ideas and suggestions for ways that IT can support and improve business processes and helps designs new business processes and policies.

Business Analyst Role

focuses on the business issues surrounding the system and understands the business value that the system will create, develops ideas for improving the business processes and helps design new business processes and policies.

Infrastructure Analyst Role

focuses on the technical issues surrounding the ways the system will interact with the organizations technical infrastructure. (hardware, software, network, and databases)

What is a System Request?

is a document that describes the business reasons for building a system and the value that they sytems is expected to provide. This forms contains thr project sponsor, business need, bsuiness requirements, and business value of the info system. The document is submitted to an apporval committee who determines whether the project is worth it.

Define Champion

is a high-level executive and usually the project sponserwho created the system request. - supports the project by providing time and resources and by giving political support within the company by communicatin the importance of the system.

Stratefic alignment

is the fit between the project and business strategy

What is the primary goal?

is to create value (profit) for the organization.

Intangible Value

results from an intuitive belief that the system provides important, but hard to measure, benefits to the org. (improved customer service, or better competitive position, higher quality products)

Technical Feasibility

teh extent to which teh system can be sucessfully installed by the IT group. "Can we build it"

Analysis Phase (2)

this phase answers Who, What, Where and When. Who will use the system, what will the system do, where & when will it be used. 1. Analysis Strategy: "as- is" vs "to-be". 2. Requirements gathering: These are you interviews- develop the concept for new system. 3.System proposal: analysis, concept and model in document. *Deliverable- Analysis and high-level initial design for the new system

Planning Phase (1)

understand why an IS should be built and determine how the project team will go about building it. 1. Project Initialization: how it will lower costs and increase revenues. IS deparrment works with project sponser to conduct feasibility analysis 2. When project is approved, it enters project management. Duriing PM the manager creates a workplan * Deliverable- Project Plan