Unit-1 & 2 (SYITM 4nd SEM)

Unit-1 & 2

Unit 1: Introduction to SAD

 The characteristics and elements of a system
 The concept of a system
 Types of systems
 What is systems analysis?
 Role of a systems analyst.

Unit 2: Systems Development Life Cycle (SDLC)

 What is SDLC?
 Stages of Systems Analysis
o Problem identification
o Feasibility study and cost benefit analysis
o System requirement analysis
 Stages of system design
o system design specification and programming
o system implementation, follow up, maintenance
o evaluation of a system

 What is System?
• The word ‘system’ means different things to different people.
• “A system is an integrated collection of components which satisfy functions necessary to achieve the
system’s goals and which have relationships to one another that give cohesion to the system and define
structure.”
• A physical system is a set of elements which operate together to achieve an objective.

 Characteristics of a system
There are five characteristics of a system
1) Basic Components
2) Interaction and Structure
3) Goal
4) Behavior
5) Life cycle

1) Basic components
• Every system has a set of interrelated elements or basic components. The basic components are
simply the various identifiable parts of a system. They are the moving parts of a system. Thus the basic
components may be man, material, machines, information, concepts or energy. For example,

System Basic Components

Education Students, teachers, buildings, administration, textbooks.
Computer Keyboard, display unit, arithmetic unit, logic unit, programs, magnetic discs.
Accounting Records, rules, procedures and equipments.
 2) Interaction and Structure:
• An important feature of a system is that the basic components interact among themselves. There
must be activity or processing procedure between the elements of a system.
• For example, in the computer system, what is being keyed in gets processed by the arithmetic unit or
logic unit or both. The display unit shows the processed information. Hence a system has to be
dynamic in nature.
• Interaction alone can establish relationships that exist among the components and define the
boundary between a system and its environment are called its structure.
3) Goal
• A system is an organized whole. It has a purpose, goal or objective. Without a common objective a
system starts moving in all directions and co-ordination among parts will be lost.
• All subsystems and components work more effectively together in the system than if they were
acting independently. Consider the human body as a system.
• If the legs move in one direction and the eyes in another direction and the mind in third direction,
what will happen to the body?
• Thus the system has to be viewed as a whole rather than just the sum of its parts. This integrating
effect is known as ‘Synergistic Effect’.
4) Behavior
• Behavior is the way a system reacts to its environment. Behavior is determined by procedure or
instructions designed to make sure that components behave in ways that will allow a system to
achieve its goals.
• While a procedure describes what ought to be done, behavior describes what is actually done. When
human skin touches something extremely hot, nervous system causes that part of the body to
withdraw rapidly from the environment.
• The reaction is the behavior and the instructions in the nervous system as to how to react are the
procedure.
5) Life Cycle
• Just like a human body, every system has birth, life and death. Buildings, automobiles, equipments
have their own life spans. Whatever be the system, the life cycle includes evolution, wear,
obsolescence, aging, replacement, repair and finally an end to the system’s existence.

 The Elements of a System

The characteristics of a ‘system’ are determined by a given set of system elements and their properties
and relationships. The system elements are:
1) Input
2) Processor
3) Output
a) General Model of a System:
• A system can be better understood with a general model. A general model of a physical system is made
up of system elements like input, processor and output with the system concepts like control and
feedback.

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 Figure of General system model

CONTROL

INPUT PROCESSOR OUTPUT

Feed back

The model of a business system is as shown in figure

CONTROL
POLICIES
PLANS
STANDARDS
OBJECTIVES
INPUT PROCESSOR OUTPUT
MEN PRODUCT
MATERIAL
MACHINES ORGANIZATION SERVICES
FACILITIES
INFORMATION PROFIT/LOSS

FEEDBACK

b) System Elements:
• Input, processor and output are elements common to all systems. They are the elements by which all
systems are described. They are set in fixed positions which help the systems analyst to design and work
with the system more easily.
i) Input
• Input is defined as the start-up component on which the system operates.
• The inputs may be raw materials, physical resources, human energy, knowledge or information.
• Input largely determines the nature of the output. This is truer in information system. Unless the input
data are accurate, output information cannot be expected to be accurate.
• It may be seen that in most cases, output of one system becomes inputs for the other.
ii) Process:
• Process is defined as the activity that makes possible the transformation of input to output.
• Men, machines, functions, operations, organizations and combinations of these may act as processor.
e.g. when data are processed through computer, processing involves a set of logical steps.

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iii) Output
• Output is defined as the result of an operation.
• It is the purpose or objective for which the system is designed. Through output largely depends upon
the input, its nature, utility and format may be vastly different from those of input.
• For e.g. in information system, input data may be numerical (statistical) in nature but the output may
be pictorial diagrams like pie diagram, bar diagram etc.

System Input Processor Output feedback

Various
University Students Changed Students Alumni Opinions
Departments
Management Reports
Computer information People, computer Decision About its
system effectiveness

 System Concepts
The major system concepts are:
1) Boundary and Environment
2) Subsystem
3) Interface
4) Black-box
5) Feed-back control
1) Boundary and Environment
• The features which defines and delineate a system from the environment from its boundary. The
system is inside the boundary and the environment is outside the boundary.

System
Environment Environment
For example,
System Boundary
Human Body Skin, hair, nails from the boundary. All parts contained inside from the
system.
Production Production machines, production inventory, work in process, production
employees, and production procedures from the system. The rest of the
company is in environment.
The boundary of a system may exist either physically or conceptually. Hence the operational definition
of a system in terms of its boundary is:
1) List all components that are to make up the system and circumscribe (limit) them. Everything
within circumscribed space is called the boundary and everything outside is called the environment.
2) List all flows across the boundary. Flows from the environment into the system are input and
flows from the inside the boundary to outside are called outputs.

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2) Subsystem
A complex system is difficult to comprehend when considered as a whole. Therefore the system is
decomposed into subsystems.
These subsystems are again divided into smaller subsystem until the smallest subsystems are of
manageable size.
SYSTEM: BUSINESS
ORGANIZATION

3) Interface
Accounting Material
• The inter
Equity Planning
Expense Control
Liability Inspection
Assets
connections and interactions between the subsystems are
termed as interfaces.
Long term Short term • Interface occurs at the boundary and takes
Plans Cash the form of inputs and outputs. For example,
Land Account consider the computer configuration system.
receivable
Investment

Storage Unit

Input Unit CPU Output Unit

• Now consider the CPU subsystem and the interface in it.

• As the subsystems increase, the number of interfaces also increases. The maximum number of
interfaces are
• n (n-1)/2 for n subsystem.

4) Black-Box
• A subsystem at the lowest level is not defined as to the process. This subsystem is termed as black-
box, since the inputs and outputs are known but not the actual transformation from one to other.
Defined Input
Defined Output

• For example, the economic system is a black box. The inputs are men, materials, energy, information
and money. The outputs are products or services. But we are not clear as to method in which the
economic system works.

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 5) Feedback control
• Feedback is a device for the control and modification of input after analyzing the output with the
objective of improving the system performances. Feedback helps to keep the system in equilibrium.
• In many systems output are compared with desired output. Any difference causes an input to be sent
to adjust the operations so that the output will be closer to the standards.
• The feedback is of two types:
Positive feedback
Negative feedback
• If feedback is positive, we have a growth system in which deviation is amplified. Positive feedback
reinforces the direction in which the system is moving.
• Negative feedback, on the other hand, reduces fluctuations around the standard or normal. E.g. if the
actual inventory level is more than the desired level then the feedback control is exercised by adjusting
the purchase rate.

 Types of system

1. Conceptual and Physical Systems:

Conceptual system:
• This system consists of the different concepts or theory. It cannot have the physical components
inside the system. For example Pythagoras theorem, de-Morgan's law etc.
Physical system:
• This system consists of the physical components like man material, money, machines etc.
• For example any organization system.
2. Deterministic and probabilistic systems
Deterministic system:
• In this system we know the state of a system at the particular time so it is sure to have particular
output at the particular time.
• For example computerized system.
Probabilistic System:
• In this system one can not be sure the output at particular time.
• For example share market, inventory system.
3. Open and Closed system
Open system
• A business system is an open system because it exchanges men, material, money and information
with the environment. It does not supervise itself. It needs to be supervised by people.
• For ex. If the high speed printers used with computer systems do not have a switch to sense
whether paper is in the printer, then a person would have to notice when the paper runs out and
signal the system to stop printing.
Closed system
• A closed system is a system which is self-contained. It does not exchange material, information
or energy with its environment.
• For example a computer system is relatively closed system. A relatively closed system is one that
has only controlled and well defined inputs and outputs. It is not subject to disturbances from
outside the system.

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 4. Natural and artificial system:
Natural system
• The systems which are not formed by human being but created by nature are known as natural
system.
For example, solar system, water system.
Artificial system
• The systems which are created by human being is known as artificial system.
• For example, business organization system, computer system, air-conditioning system.
5. Man-Machine System:
•Normally most of the artificial systems are man-machine systems.
•A motor car is a machine system. But motor car cannot work without a person; information
system is a men-machine system.

 What is Systems Analysis?

• In our day-to-day life there are many problems which can be solved with the help of computers.
Such problems may be related to transportation system, communication system, educational
system or business system.
• The system analysis in broad outlines decides how these problems in the outside world can be
related to a computer system. So, systems analysis in management information science may be
considered as a link between the actual problem and the computer.

 System Analyst
 Who is System Analyst?
•Individuals who perform the systems investigations as distinct from those merely involved in the
detailed computer programming are called “Systems Analysts”.
•The programmer works within the framework provided by the System Analyst.
•A system analyst is like an architect and his work assumes greater importance because he has to
design a system for the future.
•Thus a System Analyst designs information systems which meet organizational objective, promote
integration of activities, and facilitate control and which are flexible and robust.
•Data processing technology mainly involves systems analysis techniques. That is, systems analysis
is the brain for data processing. Though computer is a powerful tool in the systems analyst’s work,
in the final analysis, it is the systems analyst who determines what data should be processed and
how, when and where.
So, a system analyst’s job consist of
1. Gathering facts about existing information system.
2. Analyzing the basic methods and procedures of current information system.
3. Determining information needs.
4. Modifying, redesigning and integrating the existing procedures in the new system specifications
to provide the needed information.

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 Company Computer department

Management
Objective
Systems Systems Implementation
Manual Analyst Design
system

 Role of a Systems Analyst:

• Systems analysis is a difficult task and it requires a multifunctional personality. At different
times, he will play some or all of the following roles:

1) System Analyst – an agent of change:

• A systems analyst works towards the future.
• Future is uncertain and different. Change is the only thing which is permanent and the
systems analyst has to prepare a tool to work in that changing environment.
• The greatest difficulties for him are that people resist change.
• To overcome this, he has to secure user acceptance through user participation in the design
and implementation of the system. Hence, he is the creator of new environments.
2) Systems Analyst – a motivator:
• Acceptance cannot be forced down the throats of system users.
• Proper identification of right personnel and exacting feeding of right motivating factor can go
a long way in making a system successful.
• A good motivator has to be a good psychologist.

3) System Analyst – an organizer:

• A system is the system analyst’s conceptual child. Hence he has to be clear about all
activities of the system.
• The sequence of activities, their purpose and their consequences must be clear to him. He is
responsible for the execution of all activities and events of the system.
• The role of organizer includes that of puzzle solver whenever problems arise. He is also an
evaluator of his own system.
4) System Analyst – an architect:
• A system analyst must have a fairly good idea of his final system at the raw material stage
itself.
• He prepares the blue print, modifies, improves, and provides aesthetic values to his product.
• For example, a system analyst may bring in a better changed environment for the users. It
may bring changed attitudes towards systems.
5) System Analyst – an intelligent salesperson:
• A system Analyst is one who can sell a refrigerator to an Eskimo. System selling is harder
than that because the system analyst has to sell it to a user, who knows the existing system in
an out.

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 • To sell his system he should be a good communicator and genuinely interested in
understanding the real needs of the user. In fact, system selling takes place at all stages of
design and later at all levels of organization.
• Diplomacy and fineness are the watchwords of any systems analyst. Logic is the only tool in
his hands to succeed.
 SDLC
SDLC is that there is a well defined process by which a system is conceived (analysis), developed and
implemented. SDLC recognizes the existence of a life cycle.

The main two steps of SDLC are:

1) System Analysis
2) System Design

 Fig. of SDLC

Problem identification

Feasibility study and cost benefit analysis

Systems analysis

System requirement analysis

System design specifications and programming

System implementation, follow up and maintenance

System design

Evaluation of the system

Systems analysis involves:

1) Problem identification
2) Feasibility study and cost benefit analysis
3) System requirement analysis.
System design involves:
4) System design specifications and programming.
5) System implementation, follow up and maintenance
6) Evaluation of the system.

System Analysis
1) Problem identification
 One of the most difficult tasks of systems analysis is identifying the real problem of the existing system.
Experienced analysts spend considerable time in this task. Without clear understanding of the problem
in the system, any further work done will lead to wastage of time and energy at a later stage.
 Hence, several questions must be posed before identifying the correct problem at this stage itself. For
example, the question may include

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 a. What is the actual problem?
b. What are the causes for this problem?
c. Is it important to solve this problem?
d. How complex it is?
e. What are the likely solutions to this problem?
f. What type of benefit can be expected once the problem can be solved? And so on.
 An important question is about how the problem can be notified? The problem may come to the notice
of the systems analyst from any one or more sources listed below:
Internal Environment External Environment
1. Company management 1. Customer
2. Employees of different 2. Management
department consultant
3. Internal auditors 3. Outside auditors
4. Data processing department 4.Government policies
5. Financial records 5. Competitions

 Further the types of problems which arise may be different. The types of problems which are normally
encountered in the systems are listed below:

1. Problem of Reliability: The system may not work properly all the time or for the same procedure
the system may give different results.

2. Problem of validity: Reports contain misleading (confusing) information.

3. Problem of Accuracy: Reports have many errors (for example in manual system, the chances of
having posting errors are more.)

4. Problem of Economy: The system is costly to maintain.

5. Problem of Timeliness: Reports are often late; queries are not answered in time.

6. Problem of capacity: Inadequate (insufficient) processing capacity, transmission capacity and

storing capacity.

7. Problem of Throughput: This is exactly the reverse of problem of capacity. Here more capacity
may be available but less work is being done. For ex, five programmers doing the work which two
programmers can accomplish.

 Problem identification also includes identifying the possible opportunities like new market potential,
new technology etc.

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 The advantages of problem identification in SDLC are:

 It helps in pinpointing the problems, setting proper system goals, determining the boundaries of the
project by taking into consideration the limitation of the available resource.
 Before any further steps can be taken up, the problem must be stated in clear and unambiguous words.

2) Feasibility Study and Cost Benefit Analysis

 Feasibility study is carried out whenever there is a complex problem or opportunity.
 It is in fact a preliminary investigation which emphasizes the “Look before you leap” approach to any
important project.
 A feasibility study is undertaken to determine the possibility or probability of either improving the
existing system or developing a completely new system. It helps to obtain an overview of the problem
and to get rough assessment of whether feasible solutions exist.

Need for feasibility study

The feasibility study is needed to
1. Answer the question whether a new system is to be installed or not?
2. Determine the potential (possibility) of the existing system.
3. Improve the existing system.
4. Know what should be embedded in the new system.
5. Define the problems and objectives involved in a project.
6. Avoid costly repairs at a later stage when the system is implemented.
7. Avoid crash implementation of a new system.
8. Avoid the ‘hardware approach’. i.e. getting a computer first, and then deciding how to use it.

Method
 To conduct a detailed feasibility study, an expert committee appointed is known as “Steering
Committee”. This committee generally consists of system analyst, representatives from the
departments which are likely to benefit from the project and a chairman who is generally a key
person in the organization.
The committee will look into
1. Technical feasibility
2. Economic feasibility
3. Operational feasibility.

1. Technical feasibility
• Can the work for the project be done with the present equipment, current procedures, existing
software technology and available personnel?
• If new technology is needed what alternatives will be needed in the present structure. This
will require a close examination of the present system. The technical feasibility should ask
questions related to:
1. Adequacy (capability) of available technology.
2. Adequacy of hardware
3. Available of computer
4. Operating time and support facilities etc.

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 2. Economic feasibility:
1. Identify the alternatives.
2. Determine costs and expected savings of each of the alternatives.
• The costs must include both one time costs and recurring costs.

One time cost may include:

a. Feasibility study cost
b. The cost of converting from present system to new system.
c. Construction or modeling of computer room/facilities.
d. Cost involved in software packages.

Recurring costs may include:

a. Rental or purchase of equipments.
b. Salaries of personnel
c. Supplies
d. Equipment maintenance
In general, costs should be calculated for a five year period.

Further, return on investment in information system is a must at this stage itself.

Return on investment analysis
• Profitability and Return On Investment (R. O. I. ) are the two yardsticks (measure) of
measuring business performances.

ROI= Net Earning/Total Investment

• ROI clearly indicates whether you are working on a right problem or not.

3. Operational or Behavioral Feasibility

• Will the system be used, if it is implemented? Will there be resistance from users? This is
necessary because “equipments do not cry but people do cry”.
• The existing personnel normally worry about job security, loss of peer group, changes in job
context and so on whenever new systems are proposed. If their voices are not heard at this
stage, the problem will be magnified at the implementation stage.

3. System Requirement Analysis:

Hence the requirement analysis will determine
1. What outputs are needed?
2. What inputs are needed to obtain these outputs?
3. What operations it must perform to obtain these outputs?
4. What resources must be used?
5. What operational and accounting controls are needed? Etc.
Different ways to assess the user requirements include:
1. Asking users directly.
2. Interviews.
3. Questionnaires.
4. Counting transactions and documents often by sampling.
5. Developing flowcharts.

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  Requirements Analysis is one of the most important part of the system designing process. The
requirements analysis stage should yield a requirements statement specifying enough details about
the new system requirements.
 Finally it is necessary to document and present the requirements using special tools like system flow
charts, data flow diagrams and presentation graphics so that system designer can understand the
requirements clearly.

System Design
4. System Design Specifications and Programming
 As we move from system analysis to system design we are in fact moving from the conceptual to the
physical aspects of the life cycle i.e. we are moving from “what” part to “how” part in system
development.
 Now the stage is set for the system to be defined in terms of its specifications. These specifications are:
1. Output design
2. Input designs
3. Procedures
4. Information flow
5. Files and databases
6. Volumes
7. Manually used forms
8. Program specification etc.
 In addition, information on personnel, money, hardware facilities and their estimated costs must be
available. The estimated cost should not be more than actual cost of implementation.
 The various steps in system design are in figure.
 The designer uses certain standard tools and techniques to organize and work through the system
specifications like output design, input design etc. These traditional tools are:
1. System flow charts, computer procedure chart.
2. Decision tables
3. Input processing and output charts.
 A system analyst begins the design process by identifying reports and other outputs of the system. The
formats of the reports are decided by this stage and the specific data are pinpointed.
 In the input design the data to be input, calculated or stored are described. Format of the input forms and
the procedures for processing are laid down at this stage.
 The designer than decides in the file design the following aspect.
1. Types of files
2. File structure
3. File organization including file access method
4. Choice of storage medium and availability of hardware.
 Designer must take care to provide complete and clearly outlined software specification. Depending on
the need, cost of software, availability of programmers etc. finally documentation is essential to test the
programs and carry on maintenance.
 When system design is completed, full details of developed system will be available. This stage is the
second check point and the system project team must take a decision to implement the system or to stop
implementation based on practicability (probability) of design.
 A final report prior to the implementation phase including procedural flow charts, record layouts and a
working plan for implementing the system is prepared.

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5. Implementation, follow up and Maintenance:
 Implementation may not be a creative process but certainly is a difficult task. This is because users have
to accept the system. Hence human considerations will have to be attended very carefully.
Implementation includes:
1. Site preparation
2. Installation of new equipment
3. User’s training, seminars, meeting to gain user support
4. Use of new inputs and procedures
5. Trial and parallel runs of the system on the computer
6. Gradual phasing out of the old system.
 Maintenance is the ‘tail end’ of the life cycle but it is most expensive and consumes energy, cost and
time in the long run.
 After a new system has been implemented, problems and errors and discrepancies differences appear
and must be fixed. This requires ‘system maintenance’ as an ongoing process.
 Generally hardware vendors take the burden of hardware maintenance.
 In case of software, vendors provide newer versions which help system enhancements thereby
increasing processing capabilities.
 Hence the systems analyst needs to concentrate more on “document maintenance” and system
efficiency.
 When the system maintenance becomes more costly and time demanding, new systems will have to be
thought of, thereby completing the full system life cycle.

6. Evaluation of the system

 Evaluation is nothing but feedback for the system. This is the third and final checkpoint of SDLC.
Naturally evaluation considers the strengths and weaknesses of a system. It includes
1) Development evaluation: This decides whether the system is developed on time and within the
budget. Also it includes assessment of development methods and tools.
2) Operational evaluation: This consider
I. Response time
II. Ease of use
III. Reliability of computation
IV. Adequacy of storage capability etc.
3) User management Assessment Evaluation: How often managers use the information system
and how far they are satisfied judge the real worth of a system. If the management is satisfied
then generally the organization also is satisfied.

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 Difference between System Analysis and System Design

System Analysis System Design

1. System analysis is the examination 1. System design is the creator of the information system which
of the problem is the solution to the problem.
2. It is concerned with identifying all 2. It is concerned with the coordination of the activities, job
the constraints and influences procedures and equipment utilization in order to achieve system
(authority). goals.
3. It deals with data collection and a 3. It deals with general design specification, detailed design
detailed evaluation of present system specifications, output, input, files and procedures. It also deals
with program construction, testing and user acceptance
4. It portrays logical model of the 4. It provides technical
system through Data Flow Diagrams Specifications and reports with which the problem can be
and Data Dictionaries tackled.

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