8784608

Essentials of
Systems Analysis
and Design
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1
Essentials of Systems Analysis and Design, Fourth Edition, by Joseph S. Valacich, Joey F. George, and Jeffrey A. Hoffer. Published by Prentice Hall.
Copyright © 2009 by Pearson Education, Inc.
1 The Systems
Development
Environment
Chapter Objectives
After studying this chapter, you should be able to:
쐍 Define information systems analysis and management information systems, and

design. decision support systems.
쐍 Discuss the modern approach to systems 쐍 Describe the information systems
analysis and design that combines both development life cycle (SDLC).
process and data views of systems. 쐍 List alternatives to the systems
쐍 Describe the role of the systems analyst in
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development life cycle, including a

information systems development. description of the role of computer-aided
쐍 Describe three types of information software engineering (CASE) tools in
systems: transaction processing systems, systems development.
2
Chapter Preview . . .
The key to success in business is the ability to (2) analysis, (3) design, and (4) implementation
gather, organize, and interpret information. and operation. Be aware that these steps may
Systems analysis and design is a proven vary in each organization depending on its
methodology that helps both large and small goals. The SDLC is illustrated in Figure 1-1.
businesses reap the rewards of utilizing infor- Each chapter of this book includes an updated
mation to its full capacity. As a systems analyst, version of the SDLC, highlighting which steps
the person in the organization most involved have been covered and which steps remain.
with systems analysis and design, you will enjoy This text requires that you have a general
a rich career path that will enhance both your understanding of computer-based information
computer and interpersonal skills. systems as provided in an introductory informa-
The systems development life cycle (SDLC) tion systems course. This chapter previews sys-
is central to the development of an efficient tems analysis and lays the groundwork for the
information system. We will highlight four rest of the book.
key SDLC steps: (1) planning and selection,
Phase 1:
Systems Planning
and Selection
SDLC
Phase 4: Systems
Phase 2:
Implementation and
Systems Analysis
Operation
Phase 3:
Systems Design
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FIGURE 1-1
The four steps of the systems development life cycle (SDLC): (1) Planning and Selection, (2) Analysis,
(3) Design, and (4) Implementation and Operation.
3
4 Part I Foundations for Systems Development
What Is Information Systems Analysis and Design?

Information systems Information systems analysis and design is a method used by companies
analysis and design ranging from IBM to PepsiCo to Sony to create and maintain information sys-
The process of developing and
tems that perform basic business functions such as keeping track of customer
maintaining an information system.
names and addresses, processing orders, and paying employees. The main goal
of systems analysis and design is to improve organizational systems, typically
through applying software that can help employees accomplish key business
tasks more easily and efficiently. As a systems analyst, you will be at the center
of developing this software. The analysis and design of information systems are
NET SEARCH based on:
The number of new
WWW
terms and words that 쐍 Your understanding of the organization’s objectives, structure, and
appear each year that processes
are related to 쐍 Your knowledge of how to exploit information technology for advantage
information systems
and new technologies To be successful in this endeavor, you should follow a structured approach.
is incredible. Visit The SDLC, shown in Figure 1-1, is a four-phased approach to identifying,
http://www.pearson analyzing, designing, and implementing an information system. Throughout
highered.com/valacich this book, we use the SDLC to organize our discussion of the systems develop-
to complete an exercise ment process. Before we talk about the SDLC, we first describe what is meant
related to this topic. by systems analysis and design.
Systems Analysis and Design: Core Concepts

The major goal of systems analysis and design is to improve organizational
Application software systems. Often this process involves developing or acquiring application
Software designed to process software and training employees to use it. Application software, also called a
data and support users in an system, is designed to support a specific organizational function or process,
organization. Examples include
spreadsheets, word processors,
such as inventory management, payroll, or market analysis. The goal of
and database management application software is to turn data into information. For example, software
systems. developed for the inventory department at a bookstore may keep track of the
number of books in stock for the latest best seller. Software for the payroll
department may keep track of the changing pay rates of employees. A variety
of off-the-shelf application software can be purchased, including WordPerfect,
Excel, and PowerPoint. However, off-the-shelf software may not fit the needs
of a particular organization, and so the organization must develop its own
product.
In addition to application software, the information system includes:
쐍 The hardware and systems software on which the application soft-
ware runs. Note that the system software helps the computer function,
whereas the application software helps the user perform tasks such as
writing a paper, preparing a spreadsheet, and linking to the Internet.
쐍 Documentation and training materials, which are materials created by
the systems analyst to help employees use the software they’ve
helped create.
쐍 The specific job roles associated with the overall system, such as the
people who run the computers and keep the software operating.
쐍 Controls, which are parts of the software written to help prevent fraud
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and theft.
쐍 The people who use the software in order to do their jobs.
The components of a computer-based information systems application are
summarized in Figure 1-2. We address all the dimensions of the overall system,
Chapter 1 The Systems Development Environment 5
Computer-Based
Information System
Application
System Software
Hardware
Documentation
and Training Manuals
Specific Job Roles

FIGURE 1-2
Users of the System
Components of a Computer-
Based Information System
Controls Application
with particular emphasis on application software development—your primary

responsibility as a systems analyst.
Our goal is to help you understand and follow the software engineering
process that leads to the creation of information systems. As shown in
Figure 1-3, proven methodologies, techniques, and tools are central to software
engineering processes (and to this book).
Methodologies are a sequence of step-by-step approaches that help develop
your final product: the information system. Most methodologies incorporate
several development techniques, such as direct observations and interviews
with users of the current system.
Techniques are processes that you, as an analyst, will follow to help ensure
that your work is well thought-out, complete, and comprehensible to others on
your project team. Techniques provide support for a wide range of tasks,
including conducting thorough interviews with current and future users of the
information system to determine what your system should do, planning and
managing the activities in a systems development project, diagramming how
the system will function, and designing the reports, such as invoices, your
system will generate for its users to perform their jobs.
Tools are computer programs, such as computer-aided software engineering
(CASE) tools, that make it easy to use specific techniques. These three
FIGURE 1-3
The software engineering process
Methodologies
uses methodologies, techniques,
and tools.
Software
Engineering
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Process
Techniques Tools
elements—methodologies, techniques, and tools—work together to form an

organizational approach to systems analysis and design.
In the rest of this chapter, you will learn about approaches to systems
development—the data- and process-oriented approaches. You will also
identify the various people who develop systems and the different types of
systems they develop. The chapter ends with a discussion of some of the
methodologies, techniques, and tools created to support the systems devel-
opment process. Before we talk more about computer-based information
systems, let’s briefly discuss what we mean by the word system.
Systems
The key term used most frequently in this book is system. Understanding sys-
tems and how they work is critical to understanding systems analysis and design.
Definition of a System and Its Parts

System A system is an interrelated set of business procedures (or components) used
A group of interrelated within one business unit, working together for some purpose. For example, a
procedures used for a business
system in the payroll department keeps track of checks, whereas an inventory
function, with an identifiable
boundary, working together for system keeps track of supplies. The two systems are separate. A system has
some purpose. nine characteristics, seven of which are shown in Figure 1-4. A detailed expla-
nation of each characteristic follows, but from the figure you can see that a
system exists within a larger world, an environment. A boundary separates the
system from its environment. The system takes input from outside, processes
it, and sends the resulting output back to its environment. The arrows in the
figure show this interaction between the system and the world outside of it.
1. Components
2. Interrelated components
Input
Components
Boundary
ENVIRONMENT
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FIGURE 1-4 Interfaces Interrelationship

Seven Characteristics
of a System Output
3. Boundary
4. Purpose
5. Environment
6. Interfaces
7. Input
8. Output
9. Constraints
A system is made up of components. A component is either an irreducible Component
part or an aggregate of parts, also called a subsystem. The simple concept of a An irreducible part or
aggregation of parts that makes
component is very powerful. For example, just as with an automobile or a
up a system; also called a
stereo system, with proper design, we can repair or upgrade the system by subsystem.
changing individual components without having to make changes throughout
the entire system. The components are interrelated; that is, the function of Interrelated
one is somehow tied to the functions of the others. For example, the work of Dependence of one part of the
one component, such as producing a daily report of customer orders received, system on one or more other
system parts.
may not progress successfully until the work of another component is finished,
such as sorting customer orders by date of receipt. A system has a boundary, Boundary
within which all of its components are contained and which establishes the The line that marks the inside
limits of a system, separating it from other systems. Components within and outside of a system and that
the boundary can be changed, whereas systems outside the boundary cannot sets off one system from other
be changed. All of the components work together to achieve some overall systems in the organization.
purpose for the larger system: the system’s reason for existing.
Purpose
A system exists within an environment—everything outside the system’s The overall goal or function of a
boundary that influences the system. For example, the environment of a state system.
university includes prospective students, foundations and funding agencies,
and the news media. Usually the system interacts with its environment. Environment
A university interacts with prospective students by having open houses and Everything external to a system
recruiting from local high schools. An information system interacts with its that interacts with the system.
environment by receiving data (raw facts) and information (data processed in a
Interface
useful format). Figure 1-5 shows how a university can be seen as a system. The Point of contact where a system
points at which the system meets its environment are called interfaces; an meets its environment or where
interface also occurs between subsystems. subsystems meet each other.
In its functioning, a system must face constraints—the limits (in terms of
capacity, speed, or capabilities) to what it can do and how it can achieve its Constraint
A limit to what a system can
purpose within its environment. Some of these constraints are imposed inside
accomplish.
the system (e.g., a limited number of staff available), and others are imposed by
the environment (e.g., due dates or regulations). A system takes input from its
environment in order to function. People, for example, take in food, oxygen,
and water from the environment as input. You are constrained from breathing
fresh air if you’re in an elevator with someone who is smoking. Finally, a
NET SEARCH
system returns output to its environment as a result of its functioning and thus
Understanding the
WWW
achieves its purpose. The system is constrained if electrical power is cut.

meaning of the word
system is fundamental to
Important System Concepts becoming a systems
Systems analysts need to know several other important systems concepts: analyst. Visit http://
www.pearsonhighered.
쐍 Decomposition com/valacich to
쐍 Modularity complete an exercise
쐍 Coupling related to this topic.
쐍 Cohesion Decomposition
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Decomposition is the process of breaking down a system into its smaller The process of breaking the
description of a system down
components. These components may themselves be systems (subsystems) and into small components; also
can be broken down into their components as well. How does decomposition known as functional
aid understanding of a system? It results in smaller and less complex pieces decomposition.
ENVIRONMENT
Funding Sources News Media

Prospective
University Boundary Students
Interface
WASHINGTON
JEFFERSON
LAW
STADIUM
SCIENCE
ARTS
TODD WILSON
LINCOLN
VET
COLLEGE
MAIN MED
FIGURE 1-5
A University as a System GRANT
that are easier to understand than larger, complicated pieces. Decomposing a

system also allows us to focus on one particular part of a system, making it
easier to think of how to modify that one part independently of the entire
system. Decomposition is a technique that allows the systems analyst to:
쐍 Break a system into small, manageable, and understandable subsystems.
쐍 Focus attention on one area (subsystem) at a time, without interference
from other areas.
쐍 Concentrate on the part of the system pertinent to a particular group
of users, without confusing users with unnecessary details.
쐍 Build different parts of the system at independent times and have the
help of different analysts.
Figure 1-6 shows the decomposition of a portable MP3 player. Decomposing
the system into subsystems reveals the system’s inner workings. You can
decompose an MP3 player into at least three separate physical subsystems.
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(Note that decomposing the same MP3 player into logical subsystems would
result in a different set of subsystems.) One subsystem, the battery, supplies
the power for the entire system to operate. A second physical subsystem, the
storage system, is made up of a hard drive that stores thousands of MP3 record-
ings. The third subsystem, the control subsystem, consists of a printed circuit
board (PCB), with various chips attached, that controls all of the recording,
playback, and access functions. Breaking the subsystems down into their com-
ponents reveals even more about the inner workings of the system and greatly
enhances our understanding of how the overall system works.
Modularity is a direct result of decomposition. It refers to dividing a system Modularity
into chunks or modules of a relatively uniform size. Modules can represent a Dividing a system into chunks or
system simply, making it easier to understand and easier to redesign and modules of equal size.
rebuild. For example, each of the separate subsystem modules for the MP3
player in Figure 1-6 shows how decomposition makes it easier to understand
the overall system.
Coupling means that subsystems are dependent on each other. Subsystems Coupling
should be as independent as possible. If one subsystem fails and other subsys- The extent to which subsystems
tems are highly dependent on it, the others will either fail themselves or have depend on each other.
problems functioning. Looking at Figure 1-6, we would say the components of
a portable MP3 player are tightly coupled. The best example is the control
system, made up of the printed circuit board and its chips. Every function the
MP3 player can perform is enabled by the board and the chips. A failure in one
part of the circuit board would typically lead to replacing the entire board
rather than attempting to isolate the problem on the board and fix it. Even
though repairing a circuit board in an MP3 player is certainly possible, it is
typically not cost-effective; the cost of the labor expended to diagnose and fix
the problem may be worth more than the value of the circuit board itself. In a
home stereo system, the components are loosely coupled because the subsys-
tems, such as the speakers, the amplifier, the receiver, and the CD player are all
physically separate and function independently. If the amplifier in a home
stereo system fails, only the amplifier needs to be repaired.
Cohesion is the extent to which a subsystem performs a single function. In Cohesion
the MP3 player example, supplying power is a single function. The extent to which a system or
subsystem performs a single
This brief discussion of systems should better prepare you to think about
function.
computer-based information systems and how they are built. Many of the same
principles that apply to systems in general apply to information systems as
FIGURE 1-6
An MP3 player is a system, with
power supply, storage, and
control subsystems.
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Battery: Hard drive: Printed circuit board:

Power system Storage system Control system
well. In the next section, we review how the information systems development
process and the tools that have supported it have changed over the decades.
A Modern Approach to Systems Analysis and Design

Today, systems development focuses on systems integration. Systems integra-
tion allows hardware and software from different vendors to work together in
an application. It also enables existing systems developed in procedural lan-
guages to work with new systems built with visual programming environments.
Developers use visual programming environments, such as Visual Basic, to
design the user interfaces for systems that run on client/server platforms. In a
client/server environment, some of the software runs on the server, a powerful
computer designed to allow many people access to software and data stored on
it, and some of the software runs on client machines. Client machines are the
PCs you use at your desk at work. The database usually resides on the server.
These relationships are shown in Figure 1-7. The Internet is also organized in a
client/server format. With the browser software on your home PC, you can get
files and applications from many different computers throughout the world.
Your home PC is the client, and all of the Internet computers are servers.
Alternatively, organizations may purchase an enterprise-wide system from
companies such as SAP (Systems, Applications, and Products in Data
Processing) or Oracle. Enterprise-wide systems are large, complex systems
that consist of a series of independent system modules. Developers assemble
systems by choosing and implementing specific modules. Enterprise-wide
systems usually contain software to support many different tasks in an organi-
zation rather than only one or two functions. For example, an enterprise-wide
system may handle all human resources management, payroll, benefits, and
retirement functions within a single, integrated system. It is, in fact, increas-
ingly rare for organizations to develop systems in-house anymore. Chapter 2
will introduce you to the various sources of information systems technology.
First, however, you must gain some insight into what your role will be in the
systems development process.
Server
Database
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Clients
FIGURE 1-7
The Client/Server
Model
Your Role in Systems Development

Although many people in organizations are involved in systems analysis and
design, the systems analyst has the primary responsibility. A career as a Systems analyst
systems analyst will allow you to have a significant impact on how your organi- The organizational role most
responsible for the analysis and
zation operates. This fast-growing and rewarding position is found in both large
design of information systems.
and small companies. The ITAA (Information Technology Association of
America), in its Workforce 2003 report, finds that the information technology
(IT) industry bottomed out in 2002 and that the number of IT jobs in the United
States at the beginning of 2003 was 10.3 million, up 4.2 percent from 2002. The
Bureau of Labor Statistics predicts additional increases in the numbers of
IT jobs from 2004 to 2014. During this period, the professional IT workforce is
projected to add more than 1 million new jobs in the United States. Information
technology workers remain in demand.
The primary role of a systems analyst is to study the problems and needs of
an organization in order to determine how people, methods, and information
technology can best be combined to bring about improvements in the organiza-
tion. A systems analyst helps system users and other business managers define
their requirements for new or enhanced information services.
Systems analysts are key to the systems development process. To succeed as
a systems analyst, you will need to develop four types of skills: analytical, tech-
nical, managerial, and interpersonal. Analytical skills enable you to understand
the organization and its functions, to identify opportunities and problems, and
to analyze and solve problems. One of the most important analytical skills you
can develop is systems thinking, or the ability to see organizations and infor-
mation systems as systems. Systems thinking provides a framework from
which to see the important relationships among information systems, the
organizations they exist in, and the environment in which the organizations
themselves exist. Technical skills help you understand the potential and the
limitations of information technology. As an analyst, you must be able to
envision an information system that will help users solve problems and that
will guide the system’s design and development. You must also be able to work
with programming languages such as C⫹⫹ and Java, various operating sys-
tems such as Windows and Linux, and computer hardware platforms such as
IBM and Mac. Management skills help you manage projects, resources, risk,
and change. Interpersonal skills help you work with end users as well as with
other analysts and programmers. As a systems analyst, you will play a major
role as a liaison among users, programmers, and other systems professionals.
Effective written and oral communication, including competence in leading
meetings, interviewing end users, and listening, is a key skill that analysts must
master. Effective analysts successfully combine these four types of skills, as
Figure 1-8 (a typical advertisement for a systems analyst position) illustrates.
Let’s consider two examples of the types of organizational problems you
could face as a systems analyst. First, you work in the information systems
department of a major magazine company. The company is having problems
keeping an updated and accurate list of subscribers, and some customers are
getting two magazines instead of one. The company will lose money and
subscribers if these problems continue. To create a more efficient tracking
system, the users of the current computer system as well as financial managers
submit their problem to you and your colleagues in the information systems
department. Second, you work in the information systems department at a
university, where you are called upon to address an organizational problem
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such as the mailing of student grades to the wrong addresses.

When developing information systems to deal with problems such as these, an
organization and its systems analysts have several options: They can go to an
information technology services firm, such as Accenture or EDS, an HP Company,
Simon & Taylor, Inc., a candle manufacturer, has an immediate opening for a systems analyst in
its Vermont-based office.
The ideal candidate will have:
1. A bachelor’s degree in management information systems or computer science.
2. Two years’ experience with UNIX/LINUX.
3. Experience with C, Java, and/or other object-oriented programming languages, and with
application development environments such as Visual Studio or IBM's Rational Unified
Process.
4. LAN-related skills and experience.
5. Familiarity with distribution and manufacturing concepts (allocation, replenishment,

shop floor control, and production scheduling).
6. Working knowledge of project management and all phases of the systems development
life cycle.
7. Strong communication skills.
We offer a competitive salary, relocation assistance, and the challenges of working in a

state-of-the-art IT environment.
E-mail your resume to HR@simontaylor.com.
FIGURE 1-8
A Job Advertisement for Simon & Taylor, Inc., is an equal opportunity employer.
a Systems Analyst
to have the system developed for them; they can buy the system off the shelf; they
can implement an enterprise-wide system from a company such as SAP; they can
obtain open-source software; or they can use in-house staff to develop the system.
Alternatively, the organization can decide to outsource system development and
operation. All of these options are discussed in detail in Chapter 2.
Types of Information Systems and Systems Development

Given the broad range of people and interests represented in organizations, it
could take several different types of information systems to satisfy all of an orga-
nization’s information system needs. Until now we have talked about information
systems in generic terms, but information systems can actually be categorized
into several different types or classes. These classes are distinguished from each
other on the basis of what the system does or by the technology used to construct
the system. As a systems analyst, part of your job will be to determine which kind
of system will best address the organizational problem or opportunity on which
you are focusing. In addition, different classes of systems may require different
methodologies, techniques, and tools for development.
As a systems analyst working as part of a team, you will work with at least
three classes of information systems:
쐍 Transaction processing systems
쐍 Management information systems
쐍 Decision support systems (for individuals, groups, and executives)
These system types are represented graphically in Figure 1-9. Although each
of these major system types is explained in more detail in the following
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sections, Figure 1-9 shows some contrasts between them. In the diagram for
transaction processing systems, you can see that the major focus is captur-
ing transaction data, which are then sent on to a computerized database of
all transactions. The icons of the woman with the cash register and the man
taking orders represent the capture of transaction data. The arrows from the
Transaction Processing Systems Management Information Systems

THANK
YOU
Decision Support Systems Last Month’s Sales . . .
What If?
FIGURE 1-9
Depictions of three classes of
information systems: TPS, MIS,
and DSS.
icons to the computer represent moving the data to a database for storage. The
picture in Figure 1-9 that illustrates management information systems shows
managers using transaction data to make reports about last month’s sales.
Management information systems are designed to process transaction data
into standard reports. The next picture in Figure 1-9 shows a decision support
system. Decision support systems help managers make decisions by analyzing
data in different ways. Managers can make changes to their data, such as
changing interest rates, and see how those changes affect the parts of the busi-
ness they manage. In the picture in Figure 1-9, the manager tries to determine
what it takes to turn a downward trend into an upward trend. The following
sections briefly highlight how systems analysis and design methods differ
across the three major types of systems.
Transaction Processing Systems

A transaction processing system (TPS) automates the handling of data about
business activities or transactions. For example, a bank’s TPS would capture
information about withdrawals from and deposits to customer accounts. Data
about each transaction are captured, transactions are verified and accepted or
rejected, and validated transactions are stored. Reports may be produced imme-
diately to provide summaries of transactions, and transactions may be moved
from process to process in order to handle all aspects of the business activity.
The analysis and design of a TPS requires you to focus on the firm’s current
procedures for processing transactions. How does the organization track,
capture, process, and output data? The goal of TPS development is to improve
transaction processing by speeding it up, using fewer people, improving
efficiency and accuracy, integrating it with other organizational information
systems, or providing information not previously available.
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Management Information Systems

A management information system (MIS) is a computer-based system that
takes the raw data available through a TPS and converts them into a meaningful
aggregated form. For example, whereas a transaction processing system keeps

track of sales, a management information system can pinpoint which items
are selling slowly and which are selling quickly. The MIS system can there-
fore direct the manufacturing department on what to produce and when.
Developing an MIS calls for a good understanding of what kind of information
managers require and how managers use information in their jobs. Sometimes
managers themselves may not know precisely what they need or how they
will use information. Thus, the analyst must also develop a good understand-
ing of the business and the transaction processing systems that provide data
for an MIS.
Management information systems often require data from several transaction
processing systems (e.g., customer order processing, raw material purchasing,
and employee timekeeping). Development of an MIS can, therefore, benefit
from a data orientation, in which data are considered an organizational
resource separate from the TPS in which they are captured. Because it is
important to be able to draw on data from various subject areas, developing a
comprehensive and accurate model of data is essential in building an MIS.
Decision Support Systems

A decision support system (DSS) is designed to help decision makers with
decisions. Whereas an MIS produces a report, a DSS provides an interactive
environment in which decision makers can quickly manipulate data and
models of business operations. A DSS has three parts. The first part is com-
posed of a database (which may be extracted from a TPS or MIS). The second
part consists of mathematical or graphical models of business processes. The
third part is made up of a user interface (or dialogue module) that provides a
way for the decision maker to communicate with the DSS. A DSS may use both
historical data as well as judgments (or “what if” analysis) about alternative
histories or possible futures. An executive information system (EIS) is a DSS
that allows senior management to explore data starting at a high level of
aggregation and selectively drill down into specific areas where more detailed
information is required. A DSS is characterized by less structured and
predictable use. DSS software supports certain decision-making activities
(from problem finding to choosing a course of action). The systems analysis
and design for a DSS often concentrates on the three main DSS components:
database, model base, and user dialogue. As with an MIS, a data orientation is
most often used for understanding user requirements. The systems analysis
and design project will carefully document the mathematical rules that define
interrelationships among different data. These relationships are used to predict
future data or to find the best solutions to decision problems. Decision logic
must be carefully understood and documented. Also, because a decision maker
typically interacts with a DSS, the design of easy-to-use yet thorough user
dialogues and screens is important.
Information Systems: An Overview

Many information systems you build or maintain will contain aspects of each of
the three major types of information systems. As a systems analyst, you will
likely use specific methodologies, techniques, and tools associated with each
of the three information system types. Table 1-1 summarizes the general
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characteristics and development methods for each type.

We have concentrated on where an information system is developed and by
whom. We have also seen the three types of information systems that exist in
organizations. Now, we can turn to the process of developing information
systems—the systems development life cycle.
TABLE 1-1: Systems Development for Different IS Types
IS Type IS Characteristics Systems Development Methods

Transaction High-volume, data capture focus; goals are Process orientation; concern with capturing, validating,
processing efficiency of data movement and processing and storing data and with moving data between each
system and interfacing different TPSs required step
Management Draws on diverse yet predictable data Data orientation; concern with understanding relationships
information resources to aggregate and summarize data; between data so data can be accessed and summarized
system may involve forecasting future data from in a variety of ways; builds a model of data that supports
historical trends and business knowledge a variety of uses
Decision support Provides guidance in identifying problems, Data and decision logic orientations; design of user
system finding and evaluating alternative solutions, and dialogue; group communication may also be key, and
selecting or comparing alternatives; potentially access to unpredictable data may be necessary; nature of
involves groups of decision makers; often systems requires iterative development and almost constant
involves semistructured problems and the need updating
to access data at different levels of detail
Developing Information Systems and the Systems

Development Life Cycle
Organizations use a standard set of steps, called a systems development Systems development
methodology, to develop and support their information systems. Like many methodology
A standard process followed in
processes, the development of information systems often follows a life cycle.
an organization to conduct all
For example, a commercial product, such as a Nike sneaker or a Honda car, the steps necessary to analyze,
follows a life cycle: It is created, tested, and introduced to the market. Its sales design, implement, and
increase, peak, and decline. Finally, the product is removed from the market maintain information systems.
and is replaced by something else. The systems development life cycle
(SDLC) is a common methodology for systems development in many organi- Systems development
life cycle (SDLC)
zations. It marks the phases or steps of information systems development:
The series of steps used to mark
Someone has an idea for an information system and what it should do. The the phases of development for
organization that will use the system decides to devote the necessary resources an information system.
to acquiring it. A careful study is done of how the organization currently
handles the work the system will support. Professionals develop a strategy for
designing the new system, which is then either built or purchased. Once
complete, the system is installed in the organization, and after proper training,
the users begin to incorporate the new system into their daily work. Every
organization uses a slightly different life-cycle model to model these steps, with
anywhere from three to almost twenty identifiable phases. In this book, we
highlight four SDLC steps: (1) planning and selection, (2) analysis, (3) design,
and (4) implementation and operation.
Although any life cycle appears at first glance to be a sequentially ordered set
of phases, it actually is not. Figure 1-10 highlights the four steps in the SDLC:
(1) planning and selection, (2) analysis, (3) design, and (4) implementation and
operation. The specific steps and their sequence are meant to be adapted as
required for a project. For example, in any given SDLC phase, the project can
return to an earlier phase if necessary. Similarly, if a commercial product does
not perform well just after its introduction, it may be temporarily removed
from the market and improved before being reintroduced. In the systems devel-
000200010270588738
opment life cycle, it is also possible to complete some activities in one phase in
parallel with some activities of another phase. Sometimes the life cycle is
iterative; that is, phases are repeated as required until an acceptable system is
found. Some systems analysts consider the life cycle to be a spiral, in which we
constantly cycle through the phases at different levels of detail, as illustrated in
Systems
Planning and
Selection
SDLC
Systems
Systems
Implementation
Analysis
and Operation
Systems
FIGURE 1-10 Design
The Systems Development
Life Cycle (SDLC)
Figure 1-11. The circular nature of the life-cycle diagram in Figure 1-11 illus-
trates how the end of the useful life of one system leads to the beginning of
another project that will replace the existing system altogether. However con-
ceived, the systems development life cycle used in an organization is an orderly
set of activities conducted and planned for each development project. The
skills required of a systems analyst apply to all life-cycle models.
Every medium to large corporation, such as Wal-Mart, and every custom
software producer, such as SAP, will have its own specific, detailed life cycle
or systems development methodology in place. Even if a particular methodol-
ogy does not look like a cycle, many of the SDLC steps are performed, and
SDLC techniques and tools are used. This book follows a generic SDLC model,
as illustrated in Figure 1-10. We use this SDLC as an example methodology
and a way to think about systems analysis and design. You can apply this
FIGURE 1-11 Risk

Planning Assessment
Evolutionary Model SDLC
Go/No-Go Axis
Customer
Communication
Engineering
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Customer
Evaluation
Construction
and Release
methodology to almost any life cycle. As we describe this SDLC throughout

the book, it becomes clear that each phase has specific outcomes and deliver-
ables that feed important information to other phases. At the end of each
phase (and sometimes within phases for intermediate steps), a systems devel-
opment project reaches a milestone. Then, as deliverables are produced, they
are often reviewed by parties outside the project team, including managers
and executives.
Phase 1: Systems Planning and Selection

The first phase in the SDLC, systems planning and selection, has two Systems planning
primary activities. First, someone identifies the need for a new or enhanced and selection
system. Information needs of the organization are examined, and projects to The first phase of the SDLC in
which an organization’s total
meet these needs are identified. The organization’s information system needs information system needs are
may result from: analyzed and arranged, and in
which a potential information
쐍 Requests to deal with problems in current procedures systems project is identified and
쐍 The desire to perform additional tasks an argument for continuing or
not continuing with the project
쐍 The realization that information technology could be used to capitalize is presented.
on an existing opportunity
The systems analyst prioritizes and translates the needs into a written plan for
the IS department, including a schedule for developing new major systems.
Requests for new systems spring from users who need new or enhanced
systems. During the systems planning and selection phase, an organization
determines whether resources should be devoted to the development or
enhancement of each information system under consideration. A feasibility
study is conducted before the second phase of the SDLC to determine the
economic and organizational impact of the system.
The second task in the systems planning and selection phase is to investigate
the system and determine the proposed system’s scope. The team of systems
analysts then produces a specific plan for the proposed project for the team to
follow. This baseline project plan customizes the standardized SDLC and speci-
fies the time and resources needed for its execution. The formal definition of a
project is based on the likelihood that the organization’s IS department is able
to develop a system that will solve the problem or exploit the opportunity and
determine whether the costs of developing the system outweigh the possible
benefits. The final presentation to the organization’s management of the plan
for proceeding with the subsequent project phases is usually made by the proj-
ect leader and other team members.
Phase 2: Systems Analysis

The second phase of the systems development life cycle is systems analysis. Systems analysis
During this phase, the analyst thoroughly studies the organization’s current Phase of the SDLC in which the
current system is studied and
procedures and the information systems used to perform tasks such as general
alternative replacement systems
ledger, shipping, order entry, machine scheduling, and payroll. Analysis has are proposed.
several subphases. The first subphase involves determining the requirements
of the system. In this subphase, you and other analysts work with users to
determine what the users want from a proposed system. This subphase
involves a careful study of any current systems, manual and computerized, that
might be replaced or enhanced as part of this project. Next, you study the
000200010270588738
requirements and structure them according to their interrelationships, elimi-

nating any redundancies. As part of structuring, you generate alternative initial
designs to match the requirements. Then you compare these alternatives to
determine which best meets the requirements within the cost, labor, and tech-
nical levels the organization is willing to commit to the development process.
The output of the analysis phase is a description of the alternative solution rec-
ommended by the analysis team. Once the recommendation is accepted by the
organization, you can make plans to acquire any hardware and system software
necessary to build or operate the system as proposed.
Phase 3: Systems Design

Systems design The third phase of the SDLC is called systems design. During systems design,
Phase of the SDLC in which the analysts convert the description of the recommended alternative solution into
system chosen for development
logical and then physical system specifications. You must design all aspects of
in systems analysis is first
described independently of any the system from input and output screens to reports, databases, and computer
computer platform (logical processes.
design) and is then transformed Logical design is not tied to any specific hardware and systems software
into technology-specific details platform. Theoretically, the system you design could be implemented on any
(physical design) from which all
hardware and systems software. Logical design concentrates on the business
programming and system
construction can be aspects of the system; that is, how the system will impact the functional units
accomplished. within the organization. Figure 1-12 shows both the logical design for a
product and its physical design, side by side, for comparison. You can see from
the comparison that many specific decisions had to be made to move from the
logical model to the physical product. The situation is similar in information
systems design.
In physical design, you turn the logical design into physical, or technical,
specifications. For example, you must convert diagrams that map the origin,
flow, and processing of data in a system into a structured systems design that
can then be broken down into smaller and smaller units for conversion to
instructions written in a programming language. You design the various parts
of the system to perform the physical operations necessary to facilitate data
capture, processing, and information output. During physical design, the ana-
lyst team decides which programming languages the computer instructions
will be written in, which database systems and file structures will be used for
the data, and which hardware platform, operating system, and network envi-
ronment the system will run under. These decisions finalize the hardware and
software plans initiated at the end of the analysis phase. Now you can acquire
any new technology not already present in the organization. The final product
of the design phase is the physical system specifications, presented in a form,
such as a diagram or written report, ready to be turned over to programmers
and other system builders for construction.
Phase 4: Systems Implementation and Operation

Systems implementation The final phase of the SDLC is a two-step process: systems implementation
and operation and operation. During systems implementation and operation, you turn
Final phase of the SDLC in system specifications into a working system that is tested and then put into
which the information system is
coded, tested, and installed in
use. Implementation includes coding, testing, and installation. During coding,
the organization, and in which programmers write the programs that make up the system. During testing,
the information system is programmers and analysts test individual programs and the entire system in
systematically repaired and order to find and correct errors. During installation, the new system becomes a
improved. part of the daily activities of the organization. Application software is installed,
or loaded, on existing or new hardware; then users are introduced to the new
system and trained. Begin planning for both testing and installation as early as
the project planning and selection phase, because they both require extensive
000200010270588738
analysis in order to develop exactly the right approach.

Systems implementation activities also include initial user support such as
the finalization of documentation, training programs, and ongoing user assis-
tance. Note that documentation and training programs are finalized during
implementation; documentation is produced throughout the life cycle, and
1/4 PIPE
DWG. NO. REV. DATE
8–26–92 SHEET 1 OF SIZE A
1. QUANTITY REQUIRED: 2
NOTES: DRAWN BY: C. M. ALLEN 8–26–92 SCALE: NONE
CAD FILE: RAMP6 DO NOT SCALE DRAWING!
A
FIGURE 1-12
The Difference between
Logical Design and Physical
Design—(A) A Skateboard
Ramp Blueprint (Logical
Design)—(B) A Skateboard
Ramp (Physical Design)
B Sources: www.tumyeto.com/tydu/
skatebrd/organizations/plans/
14pipe.jpg; www.tumyeto.com/
tydu/skatebrd/organizations/
iuscblue.html (accessed
September 16, 1999). Reprinted
by permission of the International
Association of Skateboard
Companies.
training (and education) occurs from the inception of a project. Systems imple-
mentation can continue for as long as the system exists because ongoing user
support is also part of implementation. Despite the best efforts of analysts,
managers, and programmers, however, installation is not always a simple
process. Many well-designed systems have failed because the installation
process was faulty. Note that even a well-designed system can fail if implemen-
000200010270588738
tation is not well managed. Because the management of systems implementa-

tion is usually done by the project team, we stress implementation issues
throughout this book.
The second part of the fourth phase of the SDLC is operation. While a sys-
tem is operating in an organization, users sometimes find problems with
how it works and often think of improvements. During operation, program-

mers make the changes that users ask for and modify the system to reflect
changing business conditions. These changes are necessary to keep the sys-
tem running and useful. The amount of time and effort devoted to system
enhancements during operation depends a great deal on the performance of
the previous phases of the life cycle. Inevitably the time comes when an infor-
mation system is no longer performing as desired, when the costs of keeping
a system running become prohibitive, or when an organization’s needs have
changed substantially. Such problems indicate that it is time to begin design-
ing the system’s replacement, thereby completing the loop and starting the
life cycle over again.
The SDLC is a highly linked set of phases whose products feed the activities
in subsequent phases. Table 1-2 summarizes the outputs or products of each
phase based on the preceding descriptions. The subsequent chapters on the
SDLC phases discuss the products of each phase and how they are developed.
Throughout the systems development life cycle, the systems development
project itself needs to be carefully planned and managed. The larger the sys-
tems project, the greater the need for project management. Several project
management techniques have been developed in the last quarter-century, and
many have been improved through automation. Chapter 3 contains a more
detailed treatment of project planning and management techniques.
Approaches to Development
Prototyping, computer-aided software engineering (CASE) tools, joint applica-
tion design (JAD), rapid application development (RAD), participatory design
(PD), and the use of Agile Methodologies represent different approaches that
streamline and improve the systems analysis and design process from different
perspectives.
TABLE 1-2: Products of the SDLC Phases
Phase Products, Outputs, or Deliverables

Systems planning and selection Priorities for systems and projects
Architecture for data, networks, hardware, and IS management
Detailed work plan for selected project
Specification of system scope
System justification or business case
Systems analysis Description of current system

General recommendation on how to fix, enhance, or replace current system
Explanation of alternative systems and justification for chosen alternative
Systems design Detailed specifications of all system elements

Acquisition plan for new technology
Systems implementation and operation Code

Documentation
000200010270588738
Training procedures and support capabilities

New versions or releases of software with associated updates to documentation,
training, and support
Prototyping
Designing and building a scaled-down but working version of a desired system
is known as prototyping. A prototype can be developed with a computer-aided Prototyping
software engineering (CASE) tool, a software product that automates steps in Building a scaled-down version of
the desired information system.
the systems development life cycle. CASE tools make prototyping easier and
more creative by supporting the design of screens and reports and other parts
of a system interface. CASE tools also support many of the diagramming
techniques you will learn, such as data-flow diagrams and entity-relationship
diagrams.
Figure 1-13 illustrates prototyping. The analyst works with users to deter- NET SEARCH
mine the initial or basic requirements for the system. The analyst then quickly CASE tools are used to
WWW
builds a prototype. When the prototype is completed, the users work with it automate activities
and tell the analyst what they like and do not like about it. The analyst uses this within the SDLC. Visit
feedback to improve the prototype and takes the new version back to the http://www.
users. This iterative process continues until the users are relatively satisfied pearsonhighered.
with what they have seen. The key advantages of the prototyping technique are com/valacich to
(1) it involves the user in analysis and design, and (2) it captures requirements complete an exercise
in concrete, rather than verbal or abstract, form. In addition to being used as a related to this topic.
stand-alone, prototyping may also be used to augment the SDLC. For example,
a prototype of the final system may be developed early in analysis to help the
analysts identify what users want. Then the final system is developed based on
the specifications of the prototype. We discuss prototyping in greater detail in
Chapter 5 and use various prototyping tools in Chapter 9 to illustrate the design
of system outputs.
Computer-Assisted Software Engineering (CASE) Tools

Computer-aided software engineering (CASE) refers to automated Computer-aided software
software tools used by systems analysts to develop information systems. These engineering (CASE)
Software tools that provide
tools can be used to automate or support activities throughout the systems devel-
automated support for some
opment process with the objective of increasing productivity and improving the portion of the systems
overall quality of systems. CASE helps provide an engineering-type discipline to development process.
software development and to the automation of the entire software life-cycle
process, sometimes with a single family of integrated software tools. In general,
CASE assists systems builders in managing the complexities of information
system projects and helps assure that high-quality systems are constructed on
time and within budget.
Initial FIGURE 1-13

Identify Requirements Develop The Prototyping Method
Problem Prototype Source: Adapted from
J. D. Naumann and A. M. Jenkins,
“Prototyping: The New Paradigm
for Systems Development,” MIS
Quarterly 6, no. 3 (1982): 29–44.
pe
Convert to
oty
t
Operational
Pro
System
ng
rki
New Requirements
Wo
If Prototype
Inefficient
000200010270588738
Problems
Implement and Revise and
Use Prototype Enhance Prototype
Next Version
Vendors of CASE products have “opened up” their systems through the use of
standard databases and data-conversion utilities to share information across
products and tools more easily. An integrated and standard database called a
Repository repository is the common method for providing product and tool integration
A centralized database that and has been a key factor in enabling CASE to manage larger, more complex
contains all diagrams, forms
projects more easily and to seamlessly integrate data across various tools and
and report definitions, data
structure, data definitions, products. The general types of CASE tools include:
process flows and logic, and
쐍 Diagramming tools that enable system process, data, and control
definitions of other
organizational and system structures to be represented graphically.
components; it provides a set of 쐍 Computer display and report generators that help prototype how
mechanisms and structures to systems “look and feel” to users. Display (or form) and report
achieve seamless data-to-tool
and data-to-data integration.
generators also make it easier for the systems analyst to identify data
requirements and relationships.
쐍 Analysis tools that automatically check for incomplete, inconsistent,
or incorrect specifications in diagrams, forms, and reports.
쐍 A central repository that enables the integrated storage of specifica-
tions, diagrams, reports, and project management information.
쐍 Documentation generators that help produce both technical and user
documentation in standard formats.
쐍 Code generators that enable the automatic generation of program
and database definition code directly from the design documents,
diagrams, forms, and reports.
Joint Application Design

In the late 1970s, systems development personnel at IBM developed a new
process for collecting information system requirements and reviewing system
Joint Application Design designs. The process is called Joint Application Design (JAD). The idea
(JAD) behind JAD is to structure the requirements determination phase of analysis
A structured process in which and the reviews that occur as part of the design. Users, managers, and systems
users, managers, and analysts
work together for several days
developers are brought together for a series of intensive structured meetings
in a series of intensive meetings run by a JAD session leader. By gathering the people directly affected by an IS
to specify or review system in one room at the same time to work together to agree on system requirements
requirements. and design details, time and organizational resources are better managed.
Group members are more likely to develop a shared understanding of what the
IS is supposed to do. JAD has become common in certain industries, such as
insurance, and in specific companies, such as CIGNA. We discuss JAD in more
detail in Chapter 5.
Rapid Application Development

Rapid Application Prototyping, CASE, and JAD are key tools that support Rapid Application
Development (RAD) Development (RAD). The fundamental principle of any RAD methodology is
Systems development to delay producing detailed system design documents until after user require-
methodology created to
radically decrease the time
ments are clear. The prototype serves as the working description of needs.
needed to design and RAD involves gaining user acceptance of the interface and developing key
implement information systems. system capabilities as quickly as possible. RAD is widely used by consulting
firms. It is also used as an in-house methodology by firms such as The Boeing
Company. RAD sacrifices computer efficiency for gains in human efficiency in
rapidly building and rebuilding working systems. On the other hand, RAD
000200010270588738
methodologies can overlook important systems development principles, which

may result in problems with systems developed this way.
RAD grew out of the convergence of two trends: the increased speed and
turbulence of doing business in the late 1980s and early 1990s, and the ready
availability of high-powered computer-based tools to support systems develop-
ment and easy maintenance. As the conditions of doing business in a changing,
competitive global environment became more turbulent, management in many

organizations began to question whether it made sense to wait two to three
years to develop systems that would be obsolete upon completion. On the
other hand, CASE tools and prototyping software were diffusing throughout
organizations, making it relatively easy for end users to see what their systems
would look like before they were completed. Why not use these tools to
address the problems of developing systems more productively in a rapidly
changing business environment? So RAD was born.
As Figure 1-14 shows, the same phases followed in the traditional SDLC are
also followed in RAD, but the phases are combined to produce a more stream-
lined development technique. Planning and design phases in RAD are short-
ened by focusing work on system functional and user interface requirements at
the expense of detailed business analysis and concern for system performance
issues. Also, usually RAD looks at the system being developed in isolation from
other systems, thus eliminating the time-consuming activities of coordinating
with existing standards and systems during design and development. The
emphasis in RAD is generally less on the sequence and structure of processes
in the life cycle and more on doing different tasks in parallel with each other
and on using prototyping extensively. Notice also that the iteration in the RAD
life cycle is limited to the design and development phases, which is where the
bulk of the work in a RAD approach takes place. Although it is possible in RAD
to return to planning once design has begun, it is rarely done. Similarly,
although it is possible to return to development from the cutover phase (when
the system is turned over to the user), RAD is designed to minimize iteration at
this point in the life cycle. The high level of user commitment and involvement
throughout RAD implies that the system that emerges should be more readily
accepted by the user community (and hence more easily implemented during
cutover) than would a system developed using traditional techniques.
Participatory Design
Developed in northern Europe, Participatory Design (PD) represents a Participatory Design (PD)
A systems development
viable alternative approach to the SDLC. One of the best-known companies
approach that originated in
that has used this approach is StatoilHydro, the Norwegian oil company. northern Europe in which users
PD emphasizes the role of the user much more than do traditional North and the improvement of their
American techniques such as structured analysis and structured design. work lives are the central focus.
SDLC
Planning
Design
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Development
FIGURE 1-14
RAD Systems Development
Cutover Life Cycle Compared to
Standard SDLC
In some cases, PD may involve the entire user community in the development
process. Each user has an equal voice in determining system requirements and
in approving system design. In other cases, an elected group of users controls
the process. These users represent the larger community, much as a legislature
represents the needs and wants of the electorate. Typically, under PD, systems
analysts work for the users. The organization’s management and outside con-
sultants provide advice rather than control. PD is partly a result of the roles of
labor and management in the northern European workplace where labor is
more organized, carries more clout, and is more intimately involved with tech-
nological changes than is true in North America.
Agile Methodologies
As you might imagine, many other approaches to systems analysis and design
have been developed over the years. These approaches include eXtreme
Programming, the Crystal family of methodologies, Adaptive Software Develop-
ment, Scrum, and Feature Driven Development. In February 2001, many of the
proponents of these alternative approaches met in Utah in the United States
and reached a consensus on many of the underlying principles their various
approaches contained. This consensus turned into a document they called “The
Agile Methodologies Agile Manifesto” (see Appendix B for more detail). These Agile Methodologies
Current approaches to systems share three key principles: (1) a focus on adaptive rather than predictive method-
development that focus on ologies, (2) a focus on people rather than roles, and (3) a self-adaptive process.
adaptive methodologies, people
instead of roles, and an overall
Adopting an adaptive rather than predictive methodology refers to the observa-
self-adaptive development tion that engineering-based methodologies work best when the process and
process. product are predictive. Software tends not to be as predictive as, say, a bridge,
especially in today’s turbulent business environment. More adaptive methodolo-
gies are needed, then, and the Agile Methodologies are based on the ability
to adapt quickly. The focus on people rather than roles is also a criticism of
engineering-based techniques, where people became interchangeable. An Agile
approach views people as talented individuals, not people filling roles, each of
whom has unique talents to bring to a development project. Finally, Agile
Methodologies promote a self-adaptive software development process. As the
methodologies are applied, they should also be adapted by a particular develop-
ment team working on a particular project in a particular context. No single
monolithic methodology effectively fits all developers on all projects at all times.
You will learn much more about Agile Methodologies in Appendix B.
Key Points Review

1. Define information systems analysis and whereas data files are designed for the whole
design. enterprise with data orientation. Process orien-
Systems analysis and design is the complex tation leads to much uncontrolled data redun-
organizational process whereby computer-based dancy, whereas data redundancy is controlled
information systems are developed and operated. under data orientation. Data orientation and
2. Discuss the modern approach to systems application independence (the separation of
analysis and design that combines both data from the computer applications that use
process and data views of systems. the data) frame the way you learn about sys-
Process orientation focuses on what the systems analysis and design in this book.
tem is supposed to do whereas data orientation 3. Describe the role of the systems analyst in
000200010270588738
focuses on the data the system needs to oper- information systems development.
ate. Process orientation provides a less stable Systems analysts play a key organizational
design than does data orientation, because busi- role in systems development. They act as
ness processes change faster than do the data liaisons between business users on one hand
an organization uses. With process orientation, and technical personnel on the other. Analysts
data files are designed for specific applications, need to develop four sets of skills in order to
succeed: analytical, technical, managerial, and In analysis, analysts work to solve the business
interpersonal. problem being studied. In design, the solution to
4. Describe three types of information sys- the problem is built. Finally, in the last phase,
tems: transaction processing systems, man- the system is given to users and kept running.
agement information systems, and decision 6. List alternatives to the systems develop-
support systems. ment life cycle, including a description of the
Many different kinds of information systems role of computer-aided software engineering
are used in organizations. They include transac- (CASE) tools in systems development.
tion processing systems (TPS) that automate the The alternative frameworks mentioned in this
handling of data about business activities such as chapter are prototyping, Joint Application
customer purchase transactions; management Design (JAD), Participatory Design (PD), and
information systems (MIS) that convert data Agile Methodologies. Using prototyping, analysts
from a TPS into meaningful information such as build a working model of the system. In JAD,
a sales summary report; and decision support analysts and users meet to solve problems and
systems (DSS) that access data and models to design systems. In PD, the emphasis is on the
support organizational decision making such as user community. Agile Methodologies focus on
comparing alternative investment opportunities. adaptive rather than predictive methodologies,
5. Describe the information systems develop- on people rather than roles, and on continuous
ment life cycle (SDLC). adaptation, depending on the situation. CASE
The systems development life cycle used in tools represent the use of information technol-
this book has four major phases: (1) systems ogy to assist in the systems development
planning and selection, (2) systems analysis, process. They include diagramming tools, screen
(3) systems design, and (4) systems implemen- and report design tools, and other special-
tation and operation. In the first phase, which is purpose tools. CASE tools help programmers
planning and selection, analysts make detailed and analysts do their jobs efficiently and effec-
road maps of the system development project. tively by automating routine tasks.
Key Terms Checkpoint

Here are the key terms from the chapter. The page where each term is first explained is in parentheses after
the term.
1.Agile Methodologies (p. 24) 12. Interface (p. 7) 21. System (p. 6)
2.Application software (p. 4) 13. Interrelated components 22. Systems analysis (p. 17)
3.Boundary (p. 7) (p. 7) 23. Systems analyst (p. 11)
4.Cohesion (p. 9) 14. Joint Application Design 24. Systems design (p. 18)
5.Component (p. 7) (JAD) (p. 22) 25. Systems development life
6.Computer-aided software 15. Modularity (p. 9) cycle (SDLC) (p. 15)
engineering (CASE) (p. 21) 16. Participatory Design (PD) 26. Systems development
7. Constraint (p. 7) (p. 23) methodology (p. 15)
8. Coupling (p. 9) 17. Prototyping (p. 21) 27. Systems implementation
9. Decomposition (p. 7) 18. Purpose (p. 7) and operation (p. 18)
10. Environment (p. 7) 19. Rapid Application 28. Systems planning and
11. Information systems analysis Development (RAD) (p. 22) selection (p. 17)
and design (p. 4) 20. Repository (p. 22)
Match each of the key terms listed here with the definition that best fits it.
1. The first phase of the SDLC in which an 2. The process of developing and maintaining
000200010270588738
organization’s total information system an information system.

needs are analyzed and arranged, and in 3. A systems development approach that
which a potential information systems originated in northern Europe in which
project is identified and an argument for users and the improvement of their work
continuing or not continuing with the lives are the central focus.
project is presented.
4. Software designed to process data and 17. A limit to what a system can accomplish.
support users in an organization. Examples 18. Final phase of the SDLC in which the
include spreadsheets, word processors, information system is coded, tested, and
and database management systems. installed in the organization, and in which
5. The organizational role most responsible the information system is systematically
for the analysis and design of information repaired and improved.
systems. 19. A standard process followed in an
6. A structured process in which users, organization to conduct all the steps
managers, and analysts work together necessary to analyze, design, implement,
for several days in a series of intensive and maintain information systems.
meetings to specify or review system 20. The series of steps used to mark the
requirements. phases of development for an information
7. Building a scaled-down version of the system.
desired information system. 21. The process of breaking the description of
8. A group of interrelated procedures a system down into small components;
used for a business function, with an also known as functional decomposition.
identifiable boundary, working together 22. Dividing a system up into chunks or
for some purpose. modules of a relatively uniform size.
9. An irreducible part or aggregation of 23. The extent to which subsystems depend on
parts that make up a system, also called each other.
a subsystem. 24. The extent to which a system or subsystem
10. Dependence of one part of the system on performs a single function.
one or more other system parts. 25. Software tools that provide automated
11. The line that marks the inside and outside support for some portion of the systems
of a system and that sets off the system development process.
from its environment. 26. A centralized database that contains all
12. The overall goal or function of a system. diagrams, forms and report definitions,
13. Phase of the SDLC in which the system data structure, data definitions, process
chosen for development in systems flows and logic, and definitions of other
analysis is first described independently organizational and system components; it
of any computer platform and is then provides a set of mechanisms and
transformed into technology-specific structures to achieve seamless data-to-tool
details from which all programming and and data-to-data integration.
system construction can be accomplished. 27. Systems development methodology created
14. Phase of the SDLC in which the current to radically decrease the time needed
system is studied and alternative to design and implement information
replacement systems are proposed. systems.
15. Everything external to a system that 28. Current approaches to systems
interacts with the system. development that focus on adaptive
16. Point of contact where a system meets its methodologies, people instead of roles,
environment or where subsystems meet and an overall self-adaptive development
each other. process.
Review Questions
1. What is information systems analysis and design? 6. List and explain the different phases in the
2. What is systems thinking? How is it useful for systems development life cycle.
thinking about computer-based information 7. What is prototyping?
systems? 8. What are CASE tools? What is a CASE repository
000200010270588738
3. What is decomposition? Coupling? Cohesion? and how is it used?

4. In what way are organizations systems? 9. What is JAD? What is Participatory Design?
5. List the different classes of information systems 10. What is RAD? How does it compare to the typical
described in this chapter. How do they differ SDLC?
from one another? 11. What are Agile Methodologies?
Problems and Exercises

1. Why is it important to use systems analysis and transaction, define the data, draw the data-flow
design methodologies when building a system? diagram, and describe processing logic.
Why not just build the system in whatever way 6. How is the Joint Application Design (JAD) app-
seems to be “quick and easy”? What value is roach different from the Participatory Design
provided by using an “engineering” approach? (PD) approach developed in northern Europe?
2. Describe your university or college as a system. (You may have to do some digging at the library
What is the input? The output? The boundary? to answer this question adequately.) What are
The components? Their interrelationships? The the benefits in using these types of approaches
constraints? The purpose? The interfaces? The in building information systems? What are the
environment? Draw a diagram of this system. barriers?
3. A car is a system with several subsystems, 7. How would you organize a project team of stu-
including the braking subsystem, the electrical dents to work with a small business client? How
subsystem, the engine, the fuel subsystem, the would you organize a project team if you were
climate-control subsystem, and the passenger working for a professional consulting organiza-
subsystem. Draw a diagram of a car as a system tion? How might these two methods of organiza-
and label all of its system characteristics. tion differ? Why?
4. Your personal computer is a system. Draw and 8. How might prototyping be used as part of the
label a personal computer as a system as you did SDLC?
for a car in Problem and Exercise 3. 9. Describe the difference in the role of a systems
5. Choose a business transaction you undertake analyst in the SDLC versus prototyping.
regularly, such as using an ATM machine, buying 10. Compare Figures 1-10 and 1-11. What similarities
groceries at the supermarket, or buying a ticket and differences do you see?
for a university’s basketball game. For this
Discussion Questions
1. If someone at a party asked you what a systems analysis and systems development drawn in this
analyst was and why anyone would want to be chapter?
one, what would you say? Support your answer 4. What do you think systems analysis and design
with evidence from this chapter. will look like in the next decade? As you saw
2. Explain how a computer-based information earlier in the chapter, changes in systems devel-
system designed to process payroll is a spe- opment have been pretty dramatic in the past.
cific example of a system. Be sure to account A computer programmer suddenly transported
for all nine components of any system in your from the 1950s to the 2000s would have trouble
explanation. recognizing the computing environment that had
3. How does the Internet, and more specifically the evolved just 50 years later. What dramatic
World Wide Web, fit into the picture of systems changes might occur in the next 10 years?
Case Problems
1. Pine Valley Furniture Pine Valley Furniture’s information systems. As
Alex Schuster began Pine Valley Furniture as a the company began to grow, Alex organized the
hobby. Initially, Alex would build custom furni- company into functional areas—manufacturing,
ture in his garage for friends and family. As word sales, orders, accounting, and purchasing. Origi-
spread about his quality craftsmanship, he began nally, manual information systems were used;
taking orders. The hobby has since evolved into a however, as the business began to expand rapi-
000200010270588738
medium-sized business, employing more than 50 dly, a minicomputer was installed to automate
workers. applications.
Over the years, increased demand has forced In the beginning, a process-oriented approach
Alex to relocate several times, increase his sales was utilized. Each separate application had its
force, expand his product line, and renovate own data files. The applications automated the
manual systems on which they were modeled. In Customers place their orders at the counter
an effort to improve its information systems, PVF and are called when their orders are ready. The
recently renovated its information systems, orders are written on an order ticket, totaled on
resulting in a company-wide database and appli- the cash register, and then passed to the kitchen
cations that work with this database. Pine Valley where the orders are prepared. The cash register
Furniture’s computer-based applications are pri- is not capable of capturing point-of-sale informa-
marily in the accounting and financial areas. All tion. Once an order is prepared and delivered,
applications have been built in-house, and when the order ticket is placed in the order ticket box.
necessary, new information systems staff is hired Bob reviews these order tickets nightly and
to support Pine Valley Furniture’s expanding makes adjustments to inventory.
information systems. In the past several months, Bob has noticed
several problems with Hoosier Burger’s current
a. How did Pine Valley Furniture go about devel-
information systems, especially with the inven-
oping its information systems? Why do you
tory control, customer ordering, and manage-
think the company chose this option? What
ment reporting systems. Because the inventory
other options were available?
control and customer ordering systems are
b. One option available to Pine Valley Furniture
paper-based, errors occur frequently. These
was an enterprise-wide system. What features
errors often affect delivery orders received from
does an enterprise-wide system, such as SAP,
suppliers as well as customer orders. Bob has
provide? What is the primary advantage of an
often wanted to have electronic access to fore-
enterprise-wide system?
casting information, inventory usage, and basic
c. Pine Valley Furniture will be hiring two sys-
sales information. This access is impossible
tems analysts next month. Your task is to
because of the paper-based system.
develop a job advertisement for these posi-
tions. Locate several Web sites or newspapers a. Apply the SDLC approach to Hoosier Burger.
that have job advertisements for systems ana- b. Using the Hoosier Burger scenario, identify an
lysts. What skills are required? example of each system characteristic.
d. What types of information systems are cur- c. Decompose Hoosier Burger into its major
rently utilized at Pine Valley Furniture? subsystems.
Provide an example of each. d. Briefly summarize the approaches to systems
development discussed in this chapter. Which
2. Hoosier Burger approach do you feel should be used by
As college students in the 1970s, Bob and Hoosier Burger?
Thelma Mellankamp often dreamed of starting
their own business. While on their way to an eco- 3. Natural Best Health Food Stores
nomics class, Bob and Thelma drove by Myrtle’s Natural Best Health Food Stores is a chain of
Family Restaurant and noticed a “for sale” sign in health food stores serving Oklahoma, Arkansas,
the window. Bob and Thelma quickly made and Texas. Garrett Davis opened his first Natural
arrangements to purchase the business, and Best Health Food Store in 1975 and has since
Hoosier Burger Restaurant was born. The restau- opened 15 stores in three states. Initially, he sold
rant is moderately sized, consisting of a kitchen, only herbal supplements, gourmet coffees and
dining room, counter, storage area, and office. teas, and household products. In 1990, he
Currently, all paperwork is done by hand. Thelma expanded his product line to include personal
and Bob have discussed the benefits of purchas- care, pet care, and grocery items.
ing a computer system; however, Bob wants to In the past several months, many of Mr. Davis’s
investigate alternatives and hire a consultant to customers have requested the ability to purchase
help them. prepackaged meals, such as chicken, turkey, fish,
Perishable food items, such as beef patties, and vegetarian, and have these prepackaged
buns, and vegetables are delivered daily to the meals automatically delivered to their homes
restaurant. Other items, such as napkins, straws, weekly, biweekly, or monthly. Mr. Davis feels that
and cups, are ordered and delivered as needed. this option is viable because Natural Best has an
Bob Mellankamp receives deliveries at the automatic delivery system in place for its exist-
000200010270588738
restaurant’s back door and then updates a stock ing product lines.
log form. The stock log form helps Bob track With the current system, a customer can
inventory items. The stock log form is updated subscribe to the Natural Best Delivery Service
when deliveries are received and also nightly (NBDS) and have personal care, pet care, gourmet
after daily sales have been tallied. products, and grocery items delivered on a
weekly, biweekly, or monthly basis. The entire low-in-stock, and forecasting reports. Information
subscription process takes approximately 5 min- contained on these reports facilitates restocking,
utes. The salesclerk obtains the customer’s name, product delivery, and forecasting decisions.
mailing address, credit card number, desired Mr. Davis has an Excel worksheet that he uses to
delivery items and quantity, delivery frequency, consolidate sales information from each store. He
and phone number. After the customer’s subscrip- then uses this worksheet to make forecasting
tion has been processed, delivery usually begins decisions for each store.
within a week. As customer orders are placed,
inventory is automatically updated. The NBDS a. Identify the different types of information
system is a client/server system. Each store is systems used at Natural Best Health Food
equipped with a client computer that accesses a Stores. Provide an example of each. Is an expert
centralized database housed on a central server. system currently used? If not, how could Natural
The server tracks inventory, customer activity, Best benefit from the use of such a system?
delivery schedules, and individual store sales. b. Figure 1-4 identifies seven characteristics of a
Each week the NBDS generates sales summary system. Using the Natural Best Health Food
reports, low-in-stock reports, and delivery sched- Stores scenario, provide an example of each
ule reports for each store. The information system characteristic.
contained on each of these individual reports is c. What type of computing environment does
then consolidated into master sales summary, Natural Health Food Stores have?
000200010270588738

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Essentials of

쐍 Define information systems analysis and management information systems, and

development life cycle, including a

What Is Information Systems Analysis and Design?

Systems Analysis and Design: Core Concepts

Specific Job Roles

with particular emphasis on application software development—your primary

elements—methodologies, techniques, and tools—work together to form an

Definition of a System and Its Parts

FIGURE 1-4 Interfaces Interrelationship

achieves its purpose. The system is constrained if electrical power is cut.

Funding Sources News Media

that are easier to understand than larger, complicated pieces. Decomposing a

Battery: Hard drive: Printed circuit board:

A Modern Approach to Systems Analysis and Design

Your Role in Systems Development

such as the mailing of student grades to the wrong addresses.

The ideal candidate will have:

1. A bachelor’s degree in management information systems or computer science.

2. Two years’ experience with UNIX/LINUX.

4. LAN-related skills and experience.

5. Familiarity with distribution and manufacturing concepts (allocation, replenishment,

7. Strong communication skills.

We offer a competitive salary, relocation assistance, and the challenges of working in a

Types of Information Systems and Systems Development

Transaction Processing Systems Management Information Systems

Decision Support Systems Last Month’s Sales . . .

Transaction Processing Systems

Management Information Systems

aggregated form. For example, whereas a transaction processing system keeps

Decision Support Systems

Information Systems: An Overview

characteristics and development methods for each type.

TABLE 1-1: Systems Development for Different IS Types

IS Type IS Characteristics Systems Development Methods

Developing Information Systems and the Systems

FIGURE 1-11 Risk

methodology to almost any life cycle. As we describe this SDLC throughout

Phase 1: Systems Planning and Selection

Phase 2: Systems Analysis

requirements and structure them according to their interrelationships, elimi-

Phase 3: Systems Design

Phase 4: Systems Implementation and Operation

analysis in order to develop exactly the right approach.

tation is not well managed. Because the management of systems implementa-

how it works and often think of improvements. During operation, program-

TABLE 1-2: Products of the SDLC Phases

Phase Products, Outputs, or Deliverables

Systems analysis Description of current system

Systems design Detailed specifications of all system elements

Systems implementation and operation Code

Training procedures and support capabilities

Computer-Assisted Software Engineering (CASE) Tools

Initial FIGURE 1-13

Joint Application Design

Rapid Application Development

methodologies can overlook important systems development principles, which

competitive global environment became more turbulent, management in many

Key Points Review

Key Terms Checkpoint