IT Concepts and Systems Analysis and Design

Abner F. Escullar
mcp,mcdst, mba-ip

Systems Development Life Cycle

What is SDLC
an

organizational process of developing and maintaining systems. It helps in establishing a system project plan, because it gives overall list of processes and sub-processes required for developing a system.

What is SDLC
process

of creating or altering information systems, and the models and methodologies that people use to develop these systems.

SDLC Process

SDLC Process
Business Needs and Strategy Legacy Situation
1. Systems Strategy -Assess Strategic Information Needs -Develop a Strategic Systems Plan -Create an Action Plan 2. Project Initiation -Systems Analysis -Conceptualization of Alternative Designs -Systems Evaluation and Selection Selected System Proposal go forward for detailed design Business Requirements

System Interfaces, architecture And user requirements

Feedback: User Requests for New System

Feedback: User Requests for System Improvements and Support

3. In-House Systems Development -Construct the System - Deliver the System

4. Commercial Packages -Trends in Commercial Packages -Choosing a Package

5. Maintenance and Support

SDLC Phases
Systems

Strategy requires understanding the strategic business needs of the organization.

Reflect the organizations current position relative to where it needs to be in the long term to maintain strategic advantage.

Derived from organizations mission statement Analysis of competitive pressures Nature of current and anticipated market conditions

SDLC Phases
Project

Initiation proposals are assessed for consistency with the strategic systems plan and evaluated in terms of their feasibility and cost-benefit characteristics

Make or buy? In-house development or commercial package.

SDLC Phases

In-house Development steps which a unique information needs can be adequately met only by internal development

includes analyzing user needs, designing process and databases. Creating user views, programming the applications and testing and implementing the completed system

SDLC Phases
Commercial

Packages pre-coded commercial software packages

Advantages of commercial software:

Lower initial cost Shorter implementation time Better controls Rigorous vendor testing
Formal procedures need to be followed to ensure that the user gets a package that adequately meets his or her needs and is compatible with existing systems

SDLC Phases

Maintenance and Support acquiring and implementing the latest software versions of commercial packages and making in-house modifications to existing systems to accommodate changing user needs.

Participants in Systems Development

Systems Professionals individuals that build the system Examples:

Systems analysts Systems designers Programmers

They gather facts about problems with current system, analyze these facts, and formulate a solution to solve the problems.

Participants in Systems Development

End Users those whom the system is built. Examples:

Managers Operations personnel Accountants Internal auditors

During systems development, systems professionals work with the primary users to obtain an understanding of the users problems and clear statement of their needs.

Participants in Systems Development

Stakeholders individuals within or outside the organization who have interest in the system but are not end users. Examples:

Accountants External auditors

SDLC Phases
Project

Initiation Obtaining detailed understanding of the user problem and proposing multiple alternative solutions. Proposals is assessed in terms of its feasibility and cost-benefit characteristics.

In-house Development or Purchase Commercial Software

Accountants Role in Managing SDLC

1.

2.

Creation of IS represents a significant financial transaction that consumes both financial and human resource. Deliver accounting information in internal and external users and ensures that systems apply proper accounting conventions and rules and possess adequate controls.

Planning Systems Development

Key reasons in systems development

Consistency Systems goal must correspond to the organizations overall plan. Efficiency Subsystems are coordinated and there is a sound basis for selecting new applications for development

Planning Systems Development

Key reasons in systems development

Cutting Edge The company remains abreast of the ever-present changes in the information technology Lower costs wasted effort, duplication and cost and time overruns are avoided. Adaptability Management is better prepared for future resources needs and employee are better prepared for the changes that will occur.

Behavioral Aspects of Change

Personal Characteristics and background younger and more highly educated people are more likely accept change. Manner is which change is introduced The elimination of menial tasks and the ability to advance are more important to users than increasing profits and reducing costs. Experience with prior changes employees who had a bad experience with prior changes are more reluctant to cooperate when future changes occur. Top management support employees who sense lack of top-management support for change wonder why they themselves should endorse it

Behavioral Aspects of Change

Communication Employees are unlikely to support a change unless the reasons behind are explained Biases and natural resistance to change People with emotional attachment to their duties or coworkers may not want to change if those elements are affected Disruptive nature of the change process Requests for information and interviews are distracting and place additional burdens on people. Fear Fear of losing their jobs, losing respects or status, failure, technology and automation.

How people resist AIS changes

Aggression usually intended to destroy, cripple, or weaken the systems effectiveness. (eg. Sabotage, disruption) Projection involve blaming the new system for any and every unpleasant occurrence.(eg. Systems becomes the scapegoat for all real and imagined problems and errors. Avoidance avoiding to use the system in hope that the problem can be ignored or that will eventually go away.

Preventing Behavioral Problems

Meet user needs Keep communication line open Maintain a safe and open atmosphere Obtain management support Allay fears Solicit user participants Provide honest feedback Make sure users understand the system Humanize the system Describe ne challenges and opportunities

Preventing Behavioral Problems

Reexamine performance evaluation Test the systems integrity Avoid emotionalist Present the system in the proper context Control users expectation Keep the system simple

Project Initiation
System

Analysis study of sets of interacting entities, including computer system analysis. - An explicit formal inquiry carried out to help someone (decision maker) identify a better course of action and make a better decision that he might otherwise have made

*The foundation for the rest of the SDLC*

Systems Analysis
System Analysis two-step process
1. The Survey Step begins the analysis by determining what elements of the current system should be preserved as part of the new system.

Systems Analysis
Disadvantage current system survey centers on phenomenon known as the current physical tar pit. - Tendency of the analyst to be sucked in and then bogged down by the task of surveying the current dinosaur system.

Systems Analysis
Advantages - Good way to identify what aspects of the old systems should be kept.
Analyst can identify those aspects worth preserving or modifying for use in the new system.

Systems Analysis
Advantages
- Users go through a conversion process where they formally break away from old system and move to new one.

Analyst must know not only what is to be done by the new system but also what was done by the old.

Systems Analysis
Advantages - Analyst may determine conclusively the cause of the reported problem symptoms.

Perhaps the root problem is not the information system at all.

Gathering Facts
Data

Sources - External entities (customers, vendors)and internal sources from other departments. Users - managers and operations users. Data Stores files, databases accounts, and documents used in the system Process manual or computer operations that represent a decision or an action that information triggers

Gathering Facts
Process

manual or computer operations that represent a decision or an action that information triggers Data flows movement of documents and reports between data sources, data stores, processing task, and users data flows. Controls includes both accounting and operational controls and may be manual procedures or computer controls/

Gathering Facts
Transaction

Volumes measure of the transaction volumes for a specified period of time. Error rates determining the acceptable error tolerances for the new system Resources costs costs of labor, materials and direct overhead Bottlenecks and redundant operations Analyst should note points where data flows come together to form a bottleneck.

Facts Gathering Techniques

Observation

passively watching physical procedures of the system.

What gets done Who performs the task When they do it How they do it Why they do it How long I takes

the

Facts Gathering Techniques

Task Participation extension of observation whereby analysts takes an active role in performing the users work.

Allows the analysts to experience firsthand the problems involved in operation of the current system.

Facts Gathering Techniques

Personal Interviews extracting facts about the current system and user perception about the requirements for the new system.

What do you think is the main problem with our sales order system? How could the system be improved?

Facts Gathering Techniques

Reviewing

key documents another source of facts about the system being surveyed.
1. 2. 3. 4. 5. 6. 7. 8. 9.

Organizational chart Job description Accounting records Charts of accounts Policy statements FS system flowcharts Budgets Forecasts Mission statements

Systems Analysis
System Analysis two-step process 2. The Analysis Step simultaneously analyzing the data as analyst gathers the facts.

Systems Analysis
System Analysis Report -presents management with the survey findings, the problems identified with the current system, the users needs, and the requirements of the new system.

System Analysis Report

Project Initiation
Conceptualization

of Alternative Design producing several alternative conceptual solutions that satisfy the system requirements identified during systems analysis.

*cost benefit analysis*

How much design detail is needed?

Design should identify all the inputs, outputs, processes and special features necessary to distinguish one alternative from another.

Database record structures Processing details Specific control techniques Formats for input screens and source documents Output report formats

Designing the System

Project Initiation
Systems

Evaluation and Selection optimization process that seeks to identify the best system. Objective: provides means by which management can make an informed judgment. Process involved: 1. Perform detailed feasibility study 2. Perform cost-benefit analysis

Detailed Feasibility Study

Technical

Feasibility establishing and understanding technology that represents less risk than unfamiliar one.

Example: use of new technology unfamiliar to system professional.

Detailed Feasibility Study

Legal

Feasibility Evaluator should be concerned that the conceptual design recognizes critical control, security, and audit trail issues and does not violate laws pertaining to rights of privacy Example: process of sensitive data such as hospital records or personal credit ratings

Detailed Feasibility Study

Operational

Feasibility Availability of well-trained, motivated, and experienced users is the key issue in evaluating the operational feasibility of a design. Example: user community that is comfortable with technology is more likely to make a smooth transition to an advanced technology system.

Detailed Feasibility Study

Schedule

Feasibility system evaluator is in a better position to assess the likelihood that the system will be completed on schedule.

Example: technology platform, system design, and the need for user training schedule

Detailed Feasibility Study

Economic

Feasibility Assessing managements financial commitment to the overall project Example: Projects costs in general terms.

Cost-benefit Analysis
-helps management determine whether and how much the benefits received from a proposed system will outweigh its costs. Technique used for estimating the expected financial value of business investment Steps in cost-benefit analysis: Identifying costs Identifying benefits Comparing costs and benefits

Cost-benefit Analysis
Identify Costs identifying costs two categories: - one-time costs - Recurring costs

One-time costs: includes initial investment to develop and implement the system
Recurring costs: includes operating and maintenance costs that recur over the life of the system.

One-time costs
Hardware Acquisition cost of mainframe servers, PCs, and other peripheral equipment (networks and disk packs) Figures for items can be obtained from the vendor

One-time costs
Site preparation costs for building modification or making structural changes, equipment installation. Example: adding air-conditioning, use of heavy equipment and freight charges.

One-time costs
Software acquisition costs apply to all software purchased for the proposed system. Example: Operating system, network control software, and accounting packages

One-time costs
System Design costs that systems professional incur performing the planning analysis and design functions Analyst should estimate only the costs needed to complete the detailed design Such costs incurred are sunk and irrelevant to the decision

One-time costs
Programming and Testing costs based on the estimates of the personnel hours required to write new programs and modify existing programs for the proposed system. The experience of the firm in the past is the best basis for estimating these costs.

One-time costs
Data conversion costs that arises in the transfer of data from one storage structure to another. Example: accounting records of a manual system must be converted to digital form when the system becomes computer-based

One-time costs
Training costs involve educating users to operate the new system. Example: cost of an in-house training like instruction time, facilities, and lost productivity.

Recurring costs
Hardware maintenance cost of upgrading the computer as well as preventive maintenance and repairs to the computer and peripherals. Example: memory upgrade or increasing the storage capacity.

Recurring costs
Software maintenance cost include upgrading and debugging operating systems and in-house develop applications. Example: upgrading operating system

Recurring costs
Supplies costs incurred through routine consumption of such items as printer cartridges and paper, magnetic disks/tapes and general supplies.

Personnel salaries of individuals who are part of the information system.

Identify Benefits
- both tangible and intangible Tangible benefits benefits that can be measured and expressed in financial terms
Categories: 1. Increase revenue : eg. proposed IS will allow organization to reduce inventories and at the same time improve customer service by reducing stockouts. 2. Reduce costs : eg. Reduction of inventories.

Identify Benefits
- both tangible and intangible Intangible benefits benefits that cannot be measured or quantified. Example: assume that a proposed POS system for department store will reduce the average time to process a customer sales transaction from 11 mins. to 3 mins.

Intangible benefits

Compare Costs and benefits

NPV value method Projects with a positive net present value are economically feasible. Example:

Compare Costs and benefits

NPV value method Projects with a positive net present value are economically feasible.

Prepare systems selection report

Formal document consists of a revised feasibility study, a cost benefit analysis, and a list and explanation of intangible benefits for each alternative design

Announcing the New System Project

Management formal announcement of the new system to the rest of the organization.

User Feedback
Involves relatively small enhancements to existing systems rather than major retrofits or entirely new systems.

Accountants Function with respect to IT

End-user Hardware
Hardware used on an individual, end-user basis, including personal computers (desktops and laptops) and printers.

End-User Hardware shall also include incidental software customarily provided with such Hardware.

End users
- the person who uses the software or hardware after it has been fully developed, marketed, and installed. - person who keeps calling the "IT guy" with questions about why the product isn't working correctly.

The IT Wannabe
- most dangerous of the end users and should be treated with extreme caution
they love to create problems and roadblocks at every opportunity, and they become visibly elated whenever a computer problem occurs.

Hallmarks
A love of science fiction loves fantasy, and may use analogies from it to illustrate a point about their computer problem.

A proud graduate loves to display their certificates of completion. Believes everything they read knows that they really dont understand whats going-on inside a computer and they cover-up their ignorance by believing that anything displayed on their monitor is the Gospel Truth.

The Rottweiler
- most aggressive and annoying of the end users. Stubborn and prone to exaggeration
- especially difficult because they continue to vent, even after you have fixed their problem.

Hallmarks
Exaggerates everything immediately assumes the worst, and is quick to turn every minor inconvenience into a major disaster. everything is emergency.

Multi-tasking loves to multi-task and enjoys surfing the Web while working. Confrontational at their best when engaged in an argument, and no amount of fact is going to diminish their zeal.

The Baby
- deep-seated fear of computers and contempt for the meanies in computer support. - does not have the courage to actually talk with the IT staff, and would rather whine to management or enlist the aid of a Rottweiler.

Hallmarks
Self-centered become emotional over every computer problem. very sensitive, and takes it as a personal affront when they cannot get their computer to do what they want. Blames others never responsible for their own actions and believes that all computer problems stem from crummy software. Lacks comprehension cannot bear to hear any technical explanations.

The Oracle Luddite

- Scared to death of change and reacts violently to the automation of any business process. - Closed-minded and rigid. The will fight every system enhancement, especially those that make their lives easier

Hallmarks
Distain for electronics they rarely own a cell phone, VCR, or any device that might require programming.
No concept of feasibility believes that computers are way more sophisticated than they really are. Back-to-basics mentality longs for the days when life was simple.

What is Software?
General term for various kinds of programs used to operate and manipulate computers and their peripheral devices.

Types of Software
System Software : designed to operate and control the computer hardware and to provide a platform for running application software. eg. windows, linux, OSX,

android Application Software : designed to help the user to perform specific tasks. eg. Enterprise software, accounting software, office suites, media players.

Overview of Computer Software

Types of Application Software

Business Application Software : supports the reengineering and automation of business process. Example : Customer Relationship Management, ERP, Supply Chain Management.

Types of Application Software

Software Suites : collection of computer programs, usually application software and programming software of related functionality, often sharing a more-or-less common user interface and some ability to smoothly exchange data with each other.

Example : MS Office, Lotus Smartsuite, Open Office

Basic program components of top software suites

Advantages of Software Suites

all

costs a lot less than the total cost of buying its individual packages separately.

programs use interface (GUI) of menus, and so on, look and feel and and use

a similar graphical user icons, tool and status bars, which gives them the same makes them easier to learn

Types of Application Software

Web Browsers : designed to support navigation through the point-and-click hyperlinked resources of the World Wide Web and the rest of the Internet, as well as corporate intranets and extranets.

Example : Microsoft Explorer, Firefox, Safari, Chrome, Opera

Types of Application Software

Word Processing : software packages that computerize the creation, editing, revision, and printing of documents (e.g., letters, memos, reports) by electronically processing text data (words, phrases, sentences, and paragraphs). Example : Microsoft Word, Lotus WordPro, Corel WordPerfect, and OpenOffice

Types of Application Software

Word Processing : software packages that computerize the creation, editing, revision, and printing of documents (e.g., letters, memos, reports) by electronically processing text data (words, phrases, sentences, and paragraphs). Example : Microsoft Word, Lotus WordPro, Corel WordPerfect, and OpenOffice

Types of Application Software

Electronic Spreadsheet : used virtually by every business for analysis, planning, and modeling. Example : Microsoft Excel, OpenOffice Calc, and Corel QuattroPro.

Types of Application Software

Presentation Graphics : helps you convert numeric data into graphics displays such as line charts, bar graphs, pie charts, and many other types of graphics. Example : Microsoft PowerPoint, Open Office Impress, and Lotus Freelance.

Types of Application Software

Personal Information Managers : popular software package for end-user productivity and collaboration, as well as a popular application for personal digital assistant (PDA) handheld devices.
Example : display of key facts and financial data about customers, clients, or sales prospects.

Telecommunication Infrastructure

What is Computer Network?

two or more connected computers consisting of computers, a network operating system residing on a dedicated server computer, cable (wiring) connecting the devices, network interface cards (NICs), switches, and a router.

Networks in large companies

consists of a large number of small local area networks linked to other local area networks and to firm wide corporate networks. A number of powerful servers support a corporate Web site, a corporate intranet, and perhaps an extranet. Some of these servers link to other large computers supporting back-end systems.

Corporate Network Infrastructure

Physical Transmission Media

Twisted Wire: consists of strands of copper wire twisted in pairs and is an older type of transmission medium. Limited to a maximum run of 100m e.g Telephone system

Physical Transmission Media

Coaxial Cable : similar to that used for cable television, consists of thickly insulated copper wire that can transmit a larger volume of data than twisted wire. Runs in large buildings more than 100m longer.

Physical Transmission Media

Fiber optics and optical networks: considerably faster, lighter, and more durable than wire media, and is well suited to systems requiring transfers of large volumes of data.

Physical Transmission Media

Wireless Transmission Media : transmission is based on radio signals of various frequencies.
Types : Microwave - transmit high frequency radio signals through the atmosphere and are widely used for high-volume, long-distance, point-to-point communication. E.g. Communication Satellites Cellular use radio waves and variety of different protocols to communicate with radio antennas placed within adjacent geographic areas called cells. WIFI serves as substitute to a traditional wired networks for many applications and creating new applications, services and business models