Introduction to Business Systems Analysis
Student Study Guide
Section One
Business Information Systems Development
Section Overview
1. List of Objectives

The Participants in Analysis and Design
Various people participate in the analysis and design process: IS managers (allocate
resources; oversee approved project); Systems analysts (use analytical, technical,
managerial, and interpersonal skills in developing new systems; play a key liaison role
between users and programmers); Programmers (convert system specifications to code);
End users (take a lead role in determining what new systems should do and look like; in
some cases, develop applications themselves with the assistance of IS professionals) and
Business managers (set IS development priorities; fund projects; approve projects). Other
professionals not discussed here but deserving attention are database administrators,
telecommunications experts, human factors specialists, and internal auditors—their
responsibilities depend on their jobs.

Your Role and Other Organizational Responsibilities in Systems Development
I briefly discuss the different project team roles. The objective is to help you understand
that while there may have been one system analyst serving as a jack of all trades 20 years
ago; today, most project teams have a group of specialists who perform different roles at
different points in the project.

Interpersonal Skill
Above all, a systems analyst must have the capability to communicate effectively. Being
a good communicator requires strong interpersonal skill. Often, an analyst must lead an
IS development team. When functioning as a team leader, the analyst needs strong
leadership skills to plan, estimate, and control the project and to coach and motivate
others. A systems analyst interacts with people at all levels, from operational staff to
senior executives, and also deals with people from outside the company, including
software and hardware vendors, customers, and government officials. The analyst needs
strong people skills to work well with others.

Systems Analysis as a Profession
The systems analyst has a role in the system development process and in the
organization. Many students who major in information systems become systems analysts
of one type or another; whether they work for IS units in large corporations or as
consultants. Many diverse skills are needed for systems development. The set of skills we
present here is certainly not universally recognized as the most important, but we have
done our best to represent a set of generic skills that are important to successful systems
development efforts.

The Life Cycle of a System
Make sure you understand the key focus of each stage and what in general is done. In
stepwise refinement, each stage in the SDLC takes the work products (i.e., deliverables)
of the previous stages and moves one more step closer to a delivered system.

The Structured Approach and the Life Cycle
Why would any organization would use waterfall development today? The successful
development of an information system requires that you follow the SDLC stages in order
by completing one stage before you start the next stage. When stages are bypassed or
rushed, you can expect problems with the developed information system. Although it is
the most common development strategy, alternatives exist to the structured SDLC
approach. As you will see, the results of each stage flow down into the next stage.
Because information systems are not static, however, constant change is to be expected. It
is common to return to an earlier stage to perform additional analysis or review new
information that has been discovered. This text discusses each SDLC stage in detail, with
an overview followed by a discussion of specific issues regarding that stage.

The Feasibility Study and Report
The preliminary investigation often is called a feasibility study. Based on economic,
technical, and organizational factors, you recommend whether the proposal should be
pursued further. This study is an initial determination, and the project’s feasibility will be
reviewed constantly during the SDLC. The end product, or deliverable, of this stage is
called a preliminary investigation report.

Economic Feasibility
A systems request is economically feasible if the project benefits of the proposed system
outweigh the estimated coast involved in developing or purchasing, installing, and
operating it. Cost can be one-time or continuing and can be incurred at various times
during project development and use. To determine economic feasibility, the analyst needs
to estimate cost and benefits in a number of key areas.

Technical Feasibility
A systems request is technically feasible if the organization has the resources to develop
or purchase, install, and operate the system. When assessing technical feasibility, an
analyst must consider a range of issues including available technical expertise, future
processing needs, and development schedule, as well as legal and ethical issues.

Organizational Feasibility
An organizationally feasible system request is one that considers the mission, goals and
objectives of the organization. Key questions could be: Is the system request practical and
will it solve a problem or take advantage of an opportunity to achieve company goals?
Does management support the project? Do users support the project? Is the current
system well liked and effectively used? Do users see the need for change?
2. Chapter Summary
This section encourages the aspiring IT professional to look beyond the limited world of
programs and desktop computing to the larger concept of the system. The system is
defined and its characteristics described. The rest of the section describes the way the
book is organized and lays the groundwork for upcoming sections.
The first concept to grasp is that the system itself goes well beyond a collection of
programs. Systems work is a complicated business.
The first significant information that relates to systems work is stages of the systems life
cycle. The section describes the rationale for the stages, rather than the details of the
stages. In other words, at this point, we tell what the stages are all about and why they are
in this particular order. The details of the stages follow in subsequent sections of the
textbook.
Material in this section is very important, because this is the first exposure you have to
systems processes. You must get a firm grounding in the systems life cycle now. This
knowledge will serve as a foundation for the rest of the course.
The concept of a system life cycle is new to many students. Even though the cycle has
some form and substance that can be described in an early chapter, you may be impatient
to know exactly how to do everything. Obviously, not all those details can be stuffed into
Section 1. In fact, as you will discover later, even an intimate knowledge of the systems
life cycle does not mean that the systems analyst has a formula that works for every
systems situation.
3. Short Essay Questions
1.1 Purpose: to examine and evaluate an organization’s established systems
development methodology in the context of this chapter’s material.
Obtain a copy of an organization’s established systems development
methodology. There may be one available in the company IT department. A local
business may be willing to share their methodology.
Compare the methodology to the SDLC presented in this textbook section. Use
the foundation established in class to understand the choices made in creating this
methodology, its strengths and weaknesses, and how the organization adapts its
methodology to different project requirements.
1.2 Compare and contrast the traditional life-cycle approach to systems development
to RAD methodologies in general.
Answer: Traditional (structured design) life-cycle approaches are usually fairly
formal, step-by-step approaches to systems development. The project moves
through the stages in a systematic way. The emphasis in most of these approaches
is development of paper-based specifications for the new system prior to
implementation. RAD methodologies, on the other hand, tend to emphasize quick
creation of a limited-capability version of the system or a model of the system.
These methodologies focus on refining this preliminary system or model rather
than trying to fully describe it on paper prior to implementation.
1.3 Describe the major elements and issues with prototyping.
Answer: Prototyping collapses analysis, design, and implementation into one
stage, and this stage is cycled through several times until the system meets user
needs. A “rough” version of the system is developed early and rapidly, and user
feedback is solicited. Based on user comments, the system is modified and refined
repeatedly. Ultimately, the system will be refined to the point where the users
accept it and it can be put into production.
1.4 Explain briefly how the roles of the Systems Analyst and the Project Manager
differ from each other.
Answer: The systems analyst is primarily responsible for determining how to
apply information technology in the new system to help resolve the business
problems and fulfill business requirements. The systems analyst works with the
end users to help clarify their needs and to develop a system that will fulfill their
requirements. The project manager oversees the progress of the project,
monitoring the project’s schedule and use of resources. The project manager
works with the project sponsor and the business managers to control the project
and manage expectations.
1.5 What are the different roles that are played on a systems development team?
Undertake an online library search for job descriptions similar to IS Manager,
Systems Analyst, Project Manager, Business Manager, and End-User. Develop a
summary list of job responsibilities, qualifications, and experience required for
each job category. Develop a “master list” for each job category, and compare and
contrast the positions.
1.6 Describe the three techniques for feasibility analysis.
Answer: Technical feasibility looks at the capability of the organization to
successfully develop the proposed system. Included are the assessment of various
tasks performed within the organization, and the technical possibility and
desirability of a computer solution in the problem area. Economic feasibility
addresses the economic justification of the project. Here, we attempt to determine
if the value of the project’s benefits justifies investing in the project’s estimated
costs. Organizational feasibility evaluates where the system is likely to be
accepted and used by the organization. Included in this assessment will be the
strength of the sponsor and management’s support for the project and the
enthusiasm or resistance of the users for the project.
1.7 Describe the major stages in the Systems Development Life Cycle (SDLC).
Answer: The Planning stage focuses on determining if there is justification to
build an information system and developing a plan to accomplish the
development project. The Analysis stage is focused on understanding the existing
situation and determining the needs and requirements expected from the new
system. The Design stage refines the system requirements (from Analysis) and
develops specifications for how the new system will fulfill those requirements.
The Implementation stage involves constructing (or installing) the new system,
testing, converting, training, and providing support for the new system.
1.8 Explain why it would be foolish to jump ahead into design before the existing
system is thoroughly understood.
Answer: A design for a system that is not understood is unlikely to be a correct
solution because one cannot solve problems before one knows what the problems
are.
1.9 Do you think users make the final switch to the new system easily? Are there
factors that may influence the changeover?
Answer: No, users will not make the switch to the new system easily. Reluctance
to change is the key factor.
1.10
Why is the systems development life cycle considered an iterative
process?
Answer: The system life cycle is an iterative process because a stage is rarely is
completed in the proper order or schedule. The stage may be mostly done as
planned but there are sometimes unforeseen circumstances that force backtracking
to previous stages.
1.11
What is the purpose of splitting design into two parts: systems and detail?
Answer: The basic reason for separating design into systems and design and
detailed design is that the overall design plan should be accepted before time and
expense are devoted to detailed design.
1.12
What advantages can you list for giving a presentation for the systems
investigation and feasibility study stage? Under what circumstances might you
feel it was not necessary or appropriate?
Answer: The advantages of giving a presentation are many, but the main one is
that this is an opportunity to demonstrate your skills to users and to, and the same
time, establish credibility. Possible reasons for skipping such a presentation are
that the investigation produced a minor fix or that management elected a “do
nothing” solution. Both of these results are valid but may not need a presentation.
1.13
The textbook has stressed the importance of working with all types of
people (end-users), but some thought must be given to the various categories of
end-users. Who do you think would be the key end-users in these situations:
a. A proposed computer system to smooth the flow of operations among
marketing, ordering, and shipping in a publishing company.
b. Changing the automated accounts receivable system for a major food
brokerage from batch to online. (There are 77 employees in the accounting
department.)
Answer: Key users would likely be as follows:
a. A representative from each of the departments mentioned.
b. Probably two or three business mangers/leads in the accounting department;
these should be the people close to the main workers.
1.14
Can you think of situations that might fail the technical, organizational, or
economic feasibility criteria?
Answer: Technical feasibility failure: This is difficult because it is usually
possible to get the resources needed if there is not a cost barrier, so we would then
be talking about cost effectiveness instead. But there could be technical barriers
such as incompatibility in existing hardware, especially varieties of mid-range
computers, non-matching data communications protocols, software packages that
seem to fit the bill but not the machine, too little disk storage or memory, and so
forth.
1.15
As a programmer, have you ever postponed the related documentation?
Are you convinced that documentation is a necessary part of your career as a
systems analyst?
Answer: Most people have postponed program documentation. Let us hope they
are convinced by now that documentation is a good idea!
1.16
In which of the eight stages will end-user involvement be most extensive?
Why? Do you think end-user involvement will diminish toward the end of the
project?
Answer: End-user involvement is most extensive in the systems analysis stage,
because it is in this stage that the analyst needs the user to explain the existing
system. End-user involvement does diminish, but should not disappear, as the
project moves into more technical activities.
1.17
Has the information in this section changed your perception of the systems
analyst job? If so, are you more inclined or less inclined to pursuer it?
Answer: Preference answer. One hopes you are more, rather than less, inclined to
be systems analysts. However, some people recognize, quite reasonably, that this
is not for them. Better to find out now than later.
1.18
Discuss the role that end-end-users should play in the development of the
new systems requirements.
Answer: To do the most effective job of determining requirements for the new
system, it is important to involve end-end-users in the requirement analysis
process. Determining requirements for the new system necessitates an in-depth
knowledge of the business practices and processes of the area under study. User
input is critical since they are the content specialists. The analysts’ role is that of
guiding the end-users through the techniques used in the analysis strategy.
1.19
What are the primary things that a facilitator does in conducting the JAD
session?
Answer: The facilitator (systems analyst) is responsible for guiding the group
through the planned activities on the JAD agenda. The facilitator must keep the
group on track and try to prevent it from digressing in unproductive directions.
The facilitator helps foster communication among the group members and assists
them through the analysis techniques that are being used.
1.20
Briefly describe the category of costs called conversion and changeover
costs. Give some examples of common development costs.
Answer: These concern the loading of data from the existing system into the new
system in a secure manner. There are also costs associated with the resulting
changeover from the old to the new system.
4. End of Chapter Questions
True/False
1.1 An individual with the job title “system analyst” studies the problems and
needs of a business to determine how people, processes, data,
communications, and technology can best accomplish improvements for the
business.
Answer: True
1.2 Among the main goals of a systems analyst is to gain acceptance of the
feasibility report.
Answer: True
1.3 Organizational feasibility and ‘operational feasibility’ are completely
interchangeable terms.
Answer: True
1.4 If a task is rarely performed then it is still considered a practical task to
computerize.
Answer: False
1.5 Training costs are included in installation costs.
Answer: False
1.6 During cutover the system is turned over to the end-end-users for production
use.
Answer: False
1.7 Choosing either a centralized or distributed database is considered during the
systems design stage.
Answer: True
1.8 In systems projects, prototyping is considered an alternative to traditional
methods of project management.
Answer: True
Multiple Choice
1.9 In which stage of the SDLC are alternative solutions suggested and presented?
a. systems analysis
b. systems design
c. detailed design
d. systems investigation and feasibility study
1.10 In which stage of the SDLC does the analyst build a logical model of the
system?
a. systems investigation and feasibility study
b. systems analysis
c. changeover
d. detailed design
1.11
a.
b.
c.
d.
e.
Ideas for new systems and system improvements may originate with
business people
technical people
consultants
both a and b
a, b, and c
1.12 If end-users feel fearful or threatened by a proposed new system, this
factor should be included as a part of the
a. technical assessment
b. economic feasibility assessment
c. system proposal
d. organizational risk assessment
e. system request
1.13
a.
b.
c.
d.
e.
The end product of the analysis phase is
a system concept of the To-Be system
defining the systems project’s scope
a project work plan
detailed system specifications
none of the above
1.14 The most important reason for investigating the current system and the
needs for the new system is
a. to become friends with the end end-users.
b. to ensure that the key system requirements are understood before
moving into Systems Design.
c. to demonstrate progress to the project sponsor
d. to fulfill a step in the SDLC
e. All of the above.
1.15 The information gathering technique that is most effective in combining
information from a variety of perspectives, building consensus, and resolving
discrepancies is the
a. interview
b. JAD session
c. questionnaire
d. document analysis
e. observation
1.16 From a financial standpoint, the preferred method to use to evaluate a
project’s economic worth is the
a. cash flow method
b. return on investment method
c. net present value method
d. all of the above are equally appropriate
e. none of the above
1.17
a.
b.
c.
d.
What are examples of nonmeasurable benefits of new systems?
error reduction
better customer service
better decision making
all of the above
1.18 Among the computer product and service cost to be estimated, which is
considered hardest to estimate?
a. purchase of hardware
b. training costs
c. software costs
d. systems analysis and design
1.19 Which of the following activities is not considered part of the Systems
Construction stage?
a. prototyping
b. JRP
c. CASE
d. 4GLs
e. RAD
1.20 Which of the following is not a fundamental way to approach the creation
of a new information system?
a. Develop a custom application in-house.
b. Rely on end-end-users to develop it themselves.
c. Purchase a software package and customize it.
d. Hire an outsourcing firm to do the development.
e. All of the above are ways to create new information systems.