Systems Analysis

We we came from…

Planning

Analysis

Design

Implementation

Identify Problem/Value.Feasibility Analysis.Project Management.

Systems Analysis

Planning

Analysis

Design

Implementation

Understand as-is system.Identify Improvements.Develop concept forthe to-be system.

Three major methods Business Process Automation Business Process Improvement Business Process Reengineering

Business Process Automation

Goal:

Efficiency for users

Root Cause AnalysisSymptoms

ROOT CAUSES

Symptoms

Identify symptoms Trace each back to its

causes

Business Process Improvement

Business Process Reengineering

Radical

redesign

of

business

processes

Example: Processing a Loan

ReceiveRequest.Date/Time.

Dept. A

BillPappas

Dept. B

Dept. C

Dept. D

Dept. E

Dept. F

JohnMalone

SharonDabaloosky

TrischMashius

JuneWayne Tom Mooka

VerifyEmploymt.& Eligibil. Verify

Acct. Statusfor amount. Term &

Amountapproval.

Createamort.schedule.

Process &sendcheck.

Tom Lauer

HR Database:Employment

&Eligibility

AccountDatabase:Amounts

AmortizationProgram

17 Minutes vs. 22 days!!

BASIS FOR REENGINEERING(source: Hammer)

The usual methods for boosting performance - process rationalization and automation - have not yielded the dramatic improvements companies need.

Companies tend to use technology to mechanize old ways of doing business.

Often, existing processes are left intact, and computers are used simply to speed them up.

Many processes are geared toward efficiency and control. BUT, new watchwords are innovation, speed, service, and quality.

WHAT IS REENGINEERING?(source: Hammer)

Discontinuous thinking - recognize and break away from outdated rules and fundamental assumption that underlie operations.

Looking at fundamental processes of the business from a cross-functional perspective.

Striving for dramatic levels of improvement. Using IT not to automate an existing process

but to enable a new one.

Processing a Loan

ReceiveRequest.Date/Time.

Dept. A

BillPappas

Dept. B

Dept. C

Dept. D

Dept. E

Dept. F

JohnMalone

SharonDabaloosky

TrischMashius

JuneWayne Tom Mooka

VerifyEmploymt.& Eligibil. Verify

Acct. Statusfor amount. Term &

Amountapproval.

Createamort.schedule.

Process &sendcheck.

PRINCIPLES OF REENGINEERING(source: Hammer) Organize around outcomes, not tasks. Have those who use the output of the process

perform the process. Subsume information processing work into the real

work that produces information. Treat geographically dispersed resources as

though they were centralized. Link parallel activities instead of integrating their

results. Put the decision point where the work is performed. Capture information once at the source.

Example: Ford - BEFORE and After

PurchasingVendor

Receiving

AccountsPayable

ReceivingDocument

Goods

PurchaseOrder

Copy ofPurchaseOrder

Invoice

500 AP employees! Most timespent on mismatches.

Payment

Example: Ford - Before and AFTER

PurchasingVendor

Receiving

AccountsPayable

Goods

PurchaseOrder

Database

Payment

“Don’t sendus invoices”

75% reduction in head count.

Characteristics of Analysis Strategies

Business Business BusinessProcess Process ProcessAutomation Improvement Reeingineering

Potential Business Low-Moderate Moderate HighValue

Project Cost Low Low-Moderate High

Breadth of Analysis Narrow Narrow-Moderate Very Broad

Risk Low-Moderate Low-Moderate Very High