6 Phases in systems development

8/10/2019 6 Phases in systems development

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INTRODUCTION

This course work is about how crucial are the first two phases of information system

development. Information systems are purposive systems. They are established for reasons and

have objectives or goals, designed or established to achieve some stated end.

Information systems have become the backbone of most organizations. Banks could not process

payments, governments could not collect taxes, hospitals could not treat patients, and

supermarkets could not stock their shelves without the support of information systems. In almost

every sectoreducation, finance, government, health care, manufacturing, and businesses large

and smallinformation systems play a prominent role. !very day work, communication,

information gathering, and decision making all rely on information technology "IT#.

DEFINITION OF KEY WORDS

System

It is a collection of interrelated components that works together towards a collective goal. Its

function is to receive inputs and transform them into outputs.

System Components

i# Input

ii# $rocessiii# %utputiv# &eedbackv# 'ontrol mechanism.

Information System

(n organized combination of $eople, )ardware, *oftware, 'ommunication networks, and +ata

resources, that collects, transforms and disseminates information in an organization.

Functions of Information Systems:The information systems function represents

i# It is a major functional area of a business as like accounting, finance, operations

management, marketing, marketing, and )-.ii# It is an important contributor to operational efficiency, employee productivity and morale,

and customer service and satisfaction.


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iii# It is a major source of information and support needed to promote effective decision making

by managers.iv# It is an important ingredient in developing competitive products and services that give an

organization a strategic advantage in the global marketplace.

v# It is a major part of the resources of an enterprise and its cost of doing business, thus posing amajor resource management challenge.

vi# ( vital, dynamic, and challenging career opportunity for millions of men and women.

Manaement Information System !MIS"

anagement Information *ystem can be defined as a system that "a# provides information to

support managerial functions like planning, organizing, directing, controlling."b# collects

information in a systematic and a routine manner which is in accordance with a well defined set

of rules."c# includes files, hardware, software and operations research models of processing,storing, retrieving and transmitting information to the users.

O#$ecti%es of MIS:

i# &acilitate the decisions/making process by furnishing information in the proper timeframe.

This helps the decision/maker to select the best course of action.i# $rovide re0uisite information at each level of management to carry out their functions.ii# )elp in highlighting the critical factors to the closely monitored for successful functioning of

the organization.iii# *upport decision/making in both structured and unstructured problem environments.iv# $rovide a system of people, computers, procedures, interactive 0uery facilities, documents

for collecting, storing, retrieving and transmitting information to the users.

Components of MIS: (s predicted by c1eod, in 2345, a typical I* is based on four major

components. They are

i" Data at&erin/ data re0uired to the operations of the organization have to be gathered from

both internal and external sources.ii# Data entry/ stored in databases.iii# Data transformation / in to useful information by means of computer programs and

judgments made by technical staff and other system users.iv# Information uti'i(ation / applied to decision making process related to organizations

operation.


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Functions of MIS:

i# Co''ect )ata / Internal data can be collected from company records or reports, marketing

data, financial data, production data, personnel data and information compiled by manager

themselves. !xternal sources include trade publications, customers and consultants,

government data, technology data, social change data, !conomic data etc.ii# Store an) process )ata / using computers.iii# *resent information to Manaers / for their use.

Resources of MIS: $eople, hardware, software, data, and networks are the five basic resources of

information systems.

TY*ES OF INFORM+TION SYSTEMS

+, Operations Support Systems

%perations *upport *ystems are used to process data generated by, and used in, business

operations. The role of a business firm6s operations support systems is to efficiently process

business transactions, control industrial processes, support enterprise communications and

collaboration, and update corporate databases.

-, Transaction *rocessin Systems

They record and process data resulting from business transactions. They process transactions intwo basic ways. In batch processing, transactions data are accumulated over a period of time, and

processed periodically. In real/time "or online# processing, data are processed immediately after

a transaction occurs. &or example, point/of/sale "$%*# systems at many retail stores use

electronic cash register terminals to electronically capture and transmit sales data over

telecommunications links to regional computer centers for immediate "real/time# ornightly

"batch# processing.

., *rocess Contro' Systems: $rocess control systems monitor and control physical processes. &or

example, a petroleum refinery uses electronic sensors linked to computers to continually monitor

chemical processes and make instant "real/time# adjustments that control the refinery process.

/, Enterprise Co''a#oration Systems: !nterprise collaboration systems enhance team and

workgroup communications and productivity, and are sometimes called office automation


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systems. &or example, knowledge workers in a project team may use electronic mail to send and

receive electronic messages, and videoconferencing to hold electronic meetings to coordinate

their activities.

0, Manaement Support Systems

7hen information system applications focus on providing information and support for effective

decision making by managers, they are called management support systems. 'onceptually,

several major types of information systems support a variety of decision/making responsibilities

anagement information systems, +ecision support systems, and !xecutive information systems

-, Manaement Information Systems

I* provide information in the form of reports and displays to managers and many business

professionals. &or example, sales managers may use their networked computers and 7eb

browsers to get instantaneous displays about the sales results of their products and to access their

corporate intranet for daily sales analysis reports that evaluate sales made by each salesperson.

., Decision Support Systems

+ecision support systems give direct computer support to managers during the decision/making

process. &or example, advertising managers may use an electronic spreadsheet program to do

what/if analysis as they test the impact of alternative advertising budgets on the forecasted sales

of new products.

/, E1ecuti%e Information Systems

!I* provide critical information from a wide variety of internal and external sources in easy/to

use displays to executives and managers. &or example, top executives may use touch/screen

terminals to instantly view text and graphics displays that highlight key areas of organizational

and competitive performance.

Ot&er C'assifications of Information Systems

i# E1pertsystemscan provide expert advice for operational chores like e0uipment diagnostics,

or managerial decisions such as loan portfolio management.


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ii# Kno2'e)e manaement systems are knowledge based information systems that support

the creation, organization, and dissemination of business knowledge to employees and

managers throughout a company. Information systems that focus on operational and

managerial applications in support of basic business functions such as accounting or

marketing are known as functional business systems.

T3E 4 *3+SES OF INFORM+TION SYSTEMS

The *ystem +evelopment 1ife 'ycle "*+1'# is composed of six phases. These phases are as

follows preliminary investigation, system analysis, system design, system ac0uisition, system

implementation, and system maintenance. !ach phase is important and builds up on the phase "s#

that happened previously. 7hile these are generally the phases always used, they do not always

occur in the same order. The effects are still the same. The *+1' process consists of thefollowing phases. Below is an explanation of each of the six phases.

*&ase -: *re'iminary In%estiation

(s the first step in the *+1', preliminary investigation plays a large role in determining whether

or not a system or system modification would be worth making. The main point of doing a

preliminary investigation is to determine what problems need to be fixed and what is the best

way to go about solving those problems, if solutions do in fact exist. ( feasibility report is theproduct of the preliminary investigation in most cases. The feasibility report is essentially a

compatibility test between the current business8system and the new system8modifications. The

report will tell companies if they can afford the change, if it will work with the other systems and

technology already in their company, and if it will be beneficial to the company to make the

changes. If all these things come back positively from the systems analyst, then the system will

receive the 9all clear9 to head to the next step of the *+1'.

*&ase .: System +na'ysis

This second step, system analysis, is used to investigate the problem on a larger scale and fine

tune all the information a company has on the issue. +ata collection and analysis are the two

main points of interest inside system analysis. :athering information about the current system


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and users allows analysts to develop an idea of what seems to be the real problem and how they

should go about fixing it through data analysis. The main outcome from this step is a grouping of

organized data about the current system and the new8modified systems improvements to come.

( ;se 'ase diagram describe the behavior of the system


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existing system must be addressed with specific proposals for improvement. !ntity/relationship

diagrams and data flow diagrams are used to model the entities in a system and the flow of data

between the entities. *o, these kinds of diagrams will create a visual for the logical interaction

between the individual entities that use the system. Business process modeling notation is a

graphical, standardized notation used to model a business process. This type of modeling is

similar to a flowchart and is meant to be understood by all users of the system.

*&ase /: System Desin

7hen you6re designing a system, you are essentially creating a blueprint with your collected data

which you build upon in later phases.

(fter all of the data has been analyzed, it is time to design a blueprint for the system thatspecifies what it will look like and how it will work. &irst you have to develop the design by

using a few key tools. %ne important tool is the creation of a data dictionary, which describes

the characteristics of all data that is used in a system. %ther important creations that the systems

analyst will use include different diagrams which help to better describe the proposed system. It

has been argued by some that the ever/increasing rate of developing technology has made it

impossible for the everyday systems analyst to do their job thoroughly. The economics of

industry are pushing in a way that doesn6t favor design, only production. 7hether this is truly thecase, system design leaves little room for error, as time is money.

In addition to a data dictionary, the systems analyst also has to create input designs to help

illustrate the input screens and other user interfaces that will be used to input data into the new

system. To ensure that the data is input accurately and secured against data loss, it is essential for

the system design to contain some form of a security feature. (lso, an output designhelps

identify the specific outputs re0uired to meet the information re0uirements, select methods

re0uired for presenting that information, and design reports, or other documents that carry theinformation. 1astly, once the new system has finally been designed, a cost-benefit analysisis

performed to determine whether the expected benefits "tangible or intangible benefits# of the new

system are worth the expected cost. This analysis will then help determine if the design for the

new system is worth implementing.


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*&ase 5: System +c6uisition

*ystem (c0uisition is a way of going down your shopping list and comparing prices to get the

best deals.

%nce the design blueprint has been approved, it6s off to the proverbial grocery store. The

organization needing a system will have a set budget and a list of components needed to make

their system work properly. 7ith this budget comes a few courses of action. The first thing to

think about is whether the company should create their own software for their system or buy the

software from others. It is typically cheaper and less time consuming to buy preexisting software

but the customization options are limited. If the preexisting software doesn6t offer the options

re0uired of the system blueprint, then the company will likely have to make custom software to

meet their needs.

(ssuming that it okay for the company to buy preexisting software, the next step is to choose

where to buy from. To help them choose, they can prepare an -&$, or re0uest for proposal, which

asks vendors what software the company might need to consider buying. If they already know

what software they need and just want potential prices, the company can file an -&?, or re0uest

for 0uotation. (fter filing for the -&?, the company must evaluate all of the bids from the

vendors offering different software. The company, in order to make the most profit, shouldevaluate each bid and figure out which one has charged the lowest price while also reaching the

necessary criteria for the company


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or accessibility, but for the most part they are a great way to assist in evaluating which bid is the

best. (fter all of the re0uired software has been purchased it is time for the next step.

*&ase 7: Imp'ementation

This update manager shows all of the updates needed for a computer software, part of the

continuous system maintenance.

In this step, users get the old data ready to be moved, called data migration. %nce that is

complete, they can begin installing new hardware and software. There are four ways of

converting data to new a system direct conversion/ the old system is deactivated and the new

one is implemented right away> parallel conversion/ both systems are operated at the same time

until it is known that the new one is working, then the old one gets deactivated> pilot conversion/

only one new system is installed within an organization and once it is known that it works then

the rest are implemented> and phased conversion/ the new system is implemented by modules by

using direct or parallel conversion. There are some advantages and disadvantages of using each

method. &or example, the easiest and fastest method is direct conversion. The final action in this

step is training the users with manuals, for example.

*&ase 4: System Maintenance

%ften the system maintenance is the ongoing process throughout the life of the system.

aintenance can include updating software or updating what is already installed. any of you

play an active role in this step already. &or example, how many of you keep up with the newest

updates for your (pple applications@ Aou are taking part in system maintenance.

%nce a software has been fully implemented, it goes through a post/implementation review to

evaluate how the new system is running and whether or not it is completing its intended tasks.

*ystem maintenance includes modifying existing software or adding completely new features to

the existing software, as well as fixing any glitches or bugs and checking security. *ystem

updates are usually scheduled for off/peak hours, such as late at night to keep the system running

smoothly for users. ;pdates can be manually downloaded by the user or automatically

downloaded through the server. (utomatic updates ensure that the user is constantly using the

most up/to/date version of the software. &or many organizations, system maintenance costs more


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than the production of the actual system itself. If the system is well designed it should be able to

be easily updated and maintained. $oor design makes it difficult to implement new features,

which could end the software


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greatest promise for the well/being of the organization, given available resources, are selected for

development.

The objective of the systems/investigation phase is to answer the following 0uestions 7hat is

the business problem@ Is it a problem or an opportunity@ 7hat are the major causes of the

problem@ 'an the problem be solved by improving the current information system@ Is a new

information system needed@ Is this a feasible information system solution to this problem@

The preliminary/investigation phase sets the stage for gathering information about the current

problem and the existing information system. This information is then used in studying the

feasibility of possible information systems solutions.

It is important to note that the source of the project has a great deal to do with its scope andcontent. &or example, a project that is proposed by top management usually has a broad strategic

focus. ( steering committee proposal might have a focus that covers a cross/function of the

organization. $rojects advanced by an individual, a group of individuals, or a department may

have a narrower focus.

( variety of criteria can be used within an organization for classifying and ranking potential

projects. &or planning purposes, the systems analystwith the assistance of the stakeholders of

the proposed projectcollects information about the project. This information has a broad range

and focuses on understanding the project size, costs, and potential benefits. This information is

then analyzed and summarized in a document that is then used in conjunction with documents

about other projects in order to review and compare all possible projects. !ach of these possible

projects is assessed using multiple criteria to determine feasibility.

Feasi#i'ity stu)y

The feasibility study investigates the problem and the information needs of the stakeholders. It

seeks to determine the resources re0uired to provide an information systems solution, the cost

and benefits of such a solution, and the feasibility of such a solution. The analyst conducting the

study gathers information using a variety of methods, the most popular of which are


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Interviewing users, employees, managers, and customers.

+eveloping and administering 0uestionnaires to interested stakeholders, such as potential

users of the information system.

%bserving or monitoring users of the current system to determine their needs as well as

their satisfaction and dissatisfaction with the current system.

'ollecting, examining, and analyzing documents, reports, layouts, procedures, manuals,

and any other documentation relating to the operations of the current system.

odeling, observing, and simulating the work activities of the current system.

The goal of the feasibility study is to consider alternative information systems solutions, evaluate

their feasibility, and propose the alternative most suitable to the organization. The feasibility of a

proposed solution is evaluated in terms of its components. These components are

2. !conomic feasibilitythe economic viability of the proposed system. The proposed project6s

costs and benefitsare evaluated. Tangible costs include fixed and variable costs, while

tangible benefits include cost savings, increased revenue, and increased profit. ( project is

approved only if it covers its cost in a given period of time. )owever, a project may be

approved only on its intangible benefits such as those relating to government regulations, the

image of the organization, or similar considerations.

. Technical feasibilitythe possibility that the organization has or canprocurethe necessary

resources. This is demonstrated if the needed hardware and software are available in the

marketplace or can be developed by the time of implementation.

C. %perational feasibilitythe ability, desire, and willingness of the stakeholders to use,

support, and operate the proposed computer information system. The stakeholders include

management, employees, customers, and suppliers. The stakeholders are interested in

systems that are easy to operate, make few, if any, errors, produce the desired information,

and fall within the objectives of the organization.
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&or !xample, the re0uirements phase in the development of a new "simplified# (T leads to the

following re0uirements. The (T should allow its clients to 0uery their current account balances

and to withdraw money. If clients want to withdraw money, then the (T should offer them

several amounts, but it should also allow them to choose an amount of money. There are several

restrictions. &or example, the amount of money clients withdraw should be less than a maximum

amount "e.g., DEE !uros for each day#, and it should not lower the client


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(nalysis of the information needs of the stakeholders is an important first step in determining the

re0uirements of the new system. It is essential that the analyst understands the environment in

which the new system will operate. ;nderstanding the environment means knowing enough

about the management of the organization, its structure, its people, its business, and the current

information systems to ensure that the new system will be appropriate.

T&e current information system

( comprehensive and detailed analysis of the current system is essential to developing a 0uality,

new information system. The analyst should understand and document how the current system

uses hardware, software, and people to accept and manage input data and to convert such data

into information suitable for decision making. The documentation should be detailed and

complete. &or example, the analyst should assess the 0uality of input and output activities that

form the user6s interface. In addition, the volume and timing of such activities may be

documented.

T&e capa#i'ities of t&e ne2 computer information system

&unctional re0uirements include the necessary hardware and software configurations along with

the appropriate human resources. *pecific functional re0uirements often include the following

;ser interfacere0uirementsthe input and output needs of the user that must be

provided for by the new computer information system. These needs include layouts and

definitions of input and output, volume, fre0uency, originationof input, and destination

for reports.

$rocessing re0uirementsthe activities re0uired for converting input into output,

including calculations, decision rules, database operations, and other processing

operations. In addition, re0uirements concerning capacity, throughput, turnaround time,

response time, and the system6s availability time are established.
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*torage re0uirementsthe organization, content, and size of databases, and types and

fre0uency of updates and in0uiries. &urthermore, backup procedures and the length of

time and rationale for retention of backups are delineated.

'ontrol re0uirementsthe accuracy, validity, security, and adaptabilityre0uirements for

the system6s input, processing, output, and databases. 'rash recovery and auditing

re0uirements of the organization are further specified in this stage.

The analysis team, at the end of this phase, produces a document containing the functional

re0uirements of the new computer information system. (dditionally, the document contains

preliminary schedules and a budget for the next phase. The task force or committee responsible

for the project studies the document for the purpose of approving or not approving the work of

the analysis team. In addition, the analysis team provides the committee with a demonstration. In

essence, the analysis team walks the committee members, step by step, through the re0uirements

definition phase. If the committee approves this phase, then the analysis team is funded and

given the go/ahead to proceed to the next phase. )owever, if the committee does not approve

this phase, then either the project is canceled or, after appropriate modifications, the analysis

team resubmits a new document to the committee.

( walk/through starts with a description of the project. &rom this point, the analysts delineate aset of well/defined goals, objectives, and benefits of the computer information system. &ollowing

that, the budgets and staffing re0uirements are articulated and the plans are shared with the

committee. *pecific, planned tasks are compared to actual accomplishments, and deviations, if

any, are noted and accounted for. The plans for asset protection and business control are

reviewed with the committee members. &inally, the analysts seek the committee6s approval of the

objectives, plans, time table, and budget for the next phasesystems design.

In summary, systems analysis is an essential starting point in the development of computer

information systems projects. (n organization generally follows a development pattern set up to

meet its needs. -egardless of which methodologyan organization uses, the objective of systems

analysis is to fully understand the current environment and future re0uirements of a computer

information systems project.
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;sing the (T example, we can specify a scenario of a client who first 0ueries an account

balance and afterward withdraws 2EE !uros. By using simulation, we can execute this scenario

on the model and check whether this model behaves as expected. *imulation also allows

performance analysis> for example, we could check whether the database system can retrieve the

current account balance within a certain time interval. It would be important to verify that clients

cannot crash the (T.

0ENEFITS OF DE9E8O*MENT OF INFORM+TION SYSTEMS

2. Increased customer satisfaction

:ood management information system will speed up the process so that, the time re0uired to

serve a customer can be faster.

. Improved 0uantity and 0uality of information

Information is an important component of business today. 7ho controls the information would

act more responsive to changes and trends in the future.

(pplication of good information system will certainly generate reports compilation of data that is

managed by 0ualified and comprehensive database. This can be achieved for each of the

reporting process is executed automatically by computer machines.

C. Improved 0uality and 0uantity management decisions

It is inevitable that any decision/making relies heavily on information that supports the policy to

be taken. It can only be realized if information systems can provide information that is relevant,

accurate, current and can be retrieved at any time

G. Improved 0uality and responsiveness number of the competitors6 condition

(spects of business intelligence is very important since a long time with a variety of formats and

needs. To reach the point of rapid and appropriate response on the dynamics of the competition

will re0uire information systems that can collect, analyze and compile the information needed by

decision makers in the company.

D. Improved operational efficiency and flexibility


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(ll business owners would want these. The more efficient and flexibly an operational then this

indicates the low cost to run it. This can be achieved due to cut the bureaucracy in the company

after the implementation of good information systems.

5. Improved 0uality of internal and external communications

( good information system must be supported by electronic data communication network

systems that are reliable as well. 7ith the application of good information systems, each party

both inside and outside the company can exchange information more effectively and efficiently.

H. Improved 0uality of planning

$lanning is an essential process for businesses. )owever, any plan that will be made then of

course needed the support of ade0uate information into practice. If not then the plan may bedisoriented and did not reach its target because of mistake information into its base.

4. Improved 0uality control and supervision.

7ith the information system is built and maintained properly then any activity within the

business environment can be constantly monitored. onitoring is certainly an impact on

improving control over every procedure and activities occurring within the company.

C3+88ENES


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234# estimates that HDK of I* developments undertaken are never completed, or the

resulting system is never used. (ccording to the *tandish :roup "233D# only 25K of all

projects are delivered on time and within their budget. This study, conducted as a survey

among C5D information technology managers, also reveals that C2K of I*+ projects were

canceled prior to completion and the majority, DCK, are completed but over budget and offer

less functionality than originally specified. ;nfortunately this area has not been studied in

enough detail to find general reasons for failures. (s a result, we must mostly rely on cases

and reports on I*+ failures "e.g. %z 233G#.C. &rom the business point of view, there has been growing criticism of the poor alignment of

I*s and business needs "cf. !arl 2343#. 7hile an increasing part of organizations< resources

are spent on recording, searching, refining and analyzing information, the link between I*s

and organizational performance and strategies has been shown to be dubious "*mith andcLeen 233C#. &or example, most managers and users are still facing situations where they

cannot get information they need to run their units "+avenport et al. 233, -ockart and

)ofman 233#. )ence, I*+ is continually challenged by the dynamic nature of business

together with the ways that business activities are organized and supported by I*s.G. (ll the above problems are further aggravated by the increasing complexity and size of

software products. !ach generation has brought new application areas as well as extended

functionality leading to larger systems, which are harder to design, construct and maintain.

oreover, because of a large number of new technical options and innovations available /like client8server architectures, object/oriented approaches, and electronic commerce / novel

technical aspects are transforming the practice of I*+. (ll in all, it seems to be commonly

recognized that I*+ is not satisfying organizations< needs, whether they are technical,

economical, or behavioral. 'onse0uently, companies world/wide are facing challenges in

developing new strategies for I*+ as well as in finding supporting tools and ways of working

"-ockart and )ofman 233, Benjamin and Blunt 233#.D. :overnment rules and regulations change fre0uently and sometimes the whole structure of a

process may also change. &or instance, a new circular may change the whole structure of

salary schemes for the employees. Because of the highly dynamic nature, the re0uirement

gathering was a difficult task and the system that should be developed also needed to be

flexible enough to adapt to any of these changes.


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5. -isk is an event or condition which could happen and its appearance, if happens, has a

harmful influence on the project. The project risk represents a subjective assessment based on

the probability of non/realization of the set objective, within framework of the given time,

money and other resources. %f course, the project risk represents the probability of realizing

any loss during the project life cycle. The negative event of the project can be realized both at

the beginning, developmental, finishing phases and in the post finishing phases

"maintenance# of the project development.H. -isk relating to the definition of the project size. Badly defined size can result in the wrong

direction of the project development which can cause different conse0uences as the time limit

excess, continual changes of the project size, cost increase, and so on.4. *ystem life cycle approach is ill/suited for developing decision oriented systems. +ecision making may be

unstructured and fluid particularly for strategic and other non/programmed decisions. &or such decisions,

information re0uirements change constantly and decisions have no well/defined models or procedures.

1ack of this specification may inhibit the system developers from exploring and discovering the problem

structure and they may not be able to proceed in right direction for system development.3. *ystem life cycle approach is 0uite rigid and inflexible. It allows for revision of the system to ensure that

information re0uirements are met. )owever, when information re0uirements are incorrect or an error is

encountered, the se0uence of life cycle can be repeated but that generates volumes of additional documents,

thereby increasing development time and cost. Because of the time and cost to repeat the se0uence of life

cycle activities, this approach encourages freezing of specifications early in the development process.2E. 1ife cycle approach is very resource intensive. Tremendous amount of time is re0uired in gathering

information and preparing specifications. This involves very high cost. *ometimes, time taken in system

development is such that by the time the system becomes operational, information re0uirements change

necessitating a new system. This possibility is more for those organizations that operate in fluid

environment like financial services, consultancy, etc. In order to overcome the limitations of system life

cycle approach some other approaches have been in use for system development. These are prototyping,

rapid application development, and end/user development.

CONC8USION

Information system is essential for business development. There are many benefits that can be


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obtained from the business owner application of information systems. To be able to keep up with

stiff competition, there is re0uirement of good and reliable management information systems. (s

discussed above, the first two phases of information system development are very crucial.

)owever, the rest of the phases are also important since the information system development is a

process, all phases are needed for a successful information system.


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REFERENCES

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6 Phases in systems development