BATANGAS STATE UNIVERSITY

The National Engineering University

Alangilan, Batangas City

COLLEGE OF INFORMATICS AND COMPUTING SCIENCES

Information Technology Department

Prepared by:

JEFFERSON I. CAÑADA | JEROME M. FABREGAR

1 | GERALD JAMES Q. DAÑO
Course Facilitators
MODULE 1: INTRODUCTION TO SYSTEMS ANALYSIS AND DESIGN

OVERVIEW

Information can be viewed as an organizational resource just as humans are. As such, it

must be managed carefully, just as other resources are. The availability of affordable computer
power to organizations has meant an explosion of information, and consequently, more attention
must be paid to coping with the information generated.

This module is the first of four modules in the systems planning phase. This chapter
describes the role of information technology in today’s dynamic business environment. In this
chapter, you will learn about the development of information systems, systems analysis and design
concepts, and various systems development methods. This module also describes the role of the
information technology department and its people.

LEARNING OBJECTIVES

When you finish this chapter, student will be able to:

• Describe the impact of information technology on business strategy and success
• Define an information system and describe its components
• Explain how profiles and models can represent business functions and operations
• Explain how the Internet has affected business strategies and relationships
• Identify various types of information systems and explain who uses them
• Distinguish between structured analysis, object-oriented analysis, and agile methods
• Compare the traditional waterfall model with agile methods and models
• Apply five basic guidelines for systems development
• Discuss the role of the information technology department and the systems analysts who
work there

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INTRODUCTION

The headlines in Figure 1-1 offer dramatic examples of how information technology affects
our society. Companies use information as a weapon in the battle to increase productivity, deliver
quality products and services, maintain customer loyalty, and make sound decisions. In a global
economy with intense competition, information technology can mean the difference between
success and failure.

Figure 1-1. These headlines show the enormous impact of information technology in the twenty-first century.

I. THE IMPACT OF INFORMATION TECHNOLOGY

Information technology (IT) refers to the combination of hardware, software, and services
that people use to manage, communicate, and share information. Although fictitious, the bold
headlines in Figure 1-1 show the huge impact of IT on our society. More than ever, business
success depends on information technology. IT is driving a new digital economy, where advances
in hardware, software, and connectivity can provide enormous benefits to businesses and
individuals. Although economic trends affect IT spending levels, most firms give IT budgets a
high priority, in good times or bad. The reason is simple — during periods of growth, companies
cannot afford to lag behind the IT curve. Conversely, when the economy slows down, firms often
use IT to reduce operating costs and improve efficiency.

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The Future
If you ask a group of IT professionals to name a company that has been successful for over
100 years, the answer probably would be IBM. As its name suggests, International Business
Machines was a major supplier of typewriters and data processing equipment long before the
computer era. As a longtime IT leader, IBM’s predictions deserve close attention.
Today, IBM is a global giant with a half-million employees, numerous patents, and more
Nobel Prize winners than any other IT firm. In its 2009 Annual Report, IBM chairman Samuel J.
Palmisano noted three issues that will shape the future of IT and guide the company’s strategy.
As shown in Figure 1- 2, these include changes in the world, changes in technology, and
changes in client demand. IT professionals should study these trends and prepare for the future.

Figure 1- 2 If IBM's vision is accurate, what will it mean to IT professionals?

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II. SYSTEMS ANALYSIS AND DESIGN

Systems analysis and design is a step-by-step process for developing high-quality

information systems. An information system combines information technology, people, and data
to support business requirements. Fx`or example, information systems handle daily business
transactions, improve company productivity, and help managers make sound decisions.

The IT department team includes systems analysts who plan, develop, and maintain
information systems. With increasing demand for talented people, employment experts predict a
shortage of qualified applicants to fill IT positions.

Who Develops Information Systems?

Traditionally, a company either developed its own information systems, called in-house
applications, or purchased systems called software packages from outside vendors. Today, the
choice is much more complex. Options include Internet-based application services, outsourcing,
custom solutions from IT consultants, and enterprise-wide software strategies. Regardless of the
development method, launching a new information system involves risks as well as benefits. The
greatest risk occurs when a company tries to decide how the system will be constructed before
determining what the system needs to do. Instead of putting the cart before the horse, a company
must begin by outlining its business needs and identifying possible IT solutions. Typically, this
important work is performed by systems analysts and other IT professionals.

III. INFORMATION SYSTEM COMPONENTS

A system is a set of related components that produces specific results. An order processing
system, for example, is mission-critical because the company cannot do business without it. Every
system requires input data. For example, your computer receives data when you press a key or
click a menu command.

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A System
The term is derived from the Greek word “Systema” which means an organized
relationship among functioning units or components.

It is an orderly grouping of interdependent components linked together according to a plan

to achieve a specific objective.

It is an array of components that work together to achieve a common, or multiple goals, by

accepting input, processing it, and producing output I an organized manner.

• A system is an interrelated set of business procedures (or components) used within

one business unit working together for a purpose
• A system exists within an environment
• A boundary separates a system from its environment

Characteristics of a System
• Boundary
• Purpose
• Environment
• Interfaces
• Constraints
• Input
• Output

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System Structure

Figure 1 – 3. Structure of a System

In an information system, data consists of basic facts that are the system’s raw material.
Information is data that has been transformed into output that is valuable to users.

An information system has five key components, as shown in Figure 1-4: hardware,
software, data, processes, and people.

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Figure 1-4. The five main components of an information system.

Hardware
Hardware consists of everything in the physical layer of the information system. For
example, hardware can include servers, workstations, networks, telecommunications equipment,
fiber-optic cables, mobile devices, scanners, digital capture devices, and other technology-based
infrastructure. As new technologies emerge, manufacturers race to market the innovations and reap
the rewards

Software
Software refers to the programs that control the hardware and produce the desired
information or results. Software consists of system software and application software.

System software manages the hardware components, which can include a single
workstation or a global network with many thousands of clients. Either the hardware manufacturer
supplies the system software or a company purchases it from a vendor.

Examples of system software include the operating system, security software that protects
the computer from intrusion, device drivers that communicate with hardware such as printers, and

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utility programs that handle specific tasks such as data backup and disk management. System
software also controls the flow of data, provides data security, and manages network operations.
In today’s interconnected business world, network software is vitally important. Application
software consists of programs that support day-to-day business functions and provide users with
the information they require.

Application software can serve one user or thousands of people throughout an organization.
Examples of company-wide applications, called enterprise applications, include order processing
systems, payroll systems, and company communications networks. On a smaller scale, individual
users increase their productivity with tools such as spreadsheets, word processors, and database
management systems.

Application software includes horizontal and vertical systems.

A horizontal system is a system, such as an inventory or payroll application, that can be

adapted for use in many different types of companies. A vertical system is designed to meet the
unique requirements of a specific business or industry, such as a Web-based retailer, a medical
practice, or a video chain.

Most companies use a combination of software that is acquired at various times. When
planning an information system, a company must consider how a new system will interface with
older systems, which are called legacy systems. For example, a new human resources system might
need to exchange data with an older payroll application.

Figure 1-5 shows a payroll system that stores data in four separate tables. Notice that the
linked tables work together to supply 19 different data items to the screen form. Users, who would
not know or care where the data is stored, see an integrated form, which is their window into the
payroll system.

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Figure 1-5. A typical payroll system, data is stored in separate tables, which are joined together to form a database
that contains all the information.

Processes
Processes describe the tasks and business functions that users, managers, and IT staff
members perform to achieve specific results. Processes are the building blocks of an information
system because they represent actual day-to-day business operations. To build a successful
information system, analysts must understand business processes and document them carefully.

People
People who have an interest in an information system are called stakeholders. Stakeholders
include the management group responsible for the system, the users (sometimes called end users)
inside and outside the company who will interact with the system, and IT staff members, such as
systems analysts, programmers, and network administrators who develop and support the system.
Each stakeholder group has a vital interest in the information system, but most experienced IT
professionals agree that the success or failure of a system usually depends on whether it meets the
needs of its users. For that reason, it is essential to understand user requirements and expectations
throughout the development process.

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IV. UNDERSTAND THE BUSINESS
IT professionals must understand a company’s operations to design successful systems.
Each business situation is different. For example, a retail store, a medical practice, and a hotel
chain all have unique information systems requirements. Systems analysts use a process called
business process modeling to represent company operations and information needs. Business
process modeling requires a business profile and a series of models that document business
processes. As the business world changes, systems analysts can expect to work in new kinds of
companies that require innovative IT solutions, including Web-based systems that serve customers
and carry out online transactions with other businesses.

Business Profile
A business profile is an overview of a company’s mission, functions, organization,
products, services, customers, suppliers, competitors, constraints, and future direction. Although
much of this information is readily available, a systems analyst usually needs to do additional
research and fact-finding. A business profile is the starting point for the modeling process.

Business Process
A business process is a specific set of transactions, events, and results that can be described
and documented. A business process model (BPM) graphically displays one or more business
processes, such as handling an airline reservation, filling a product order, or updating a customer
account. The example in Figure 1-6 shows a simple model that includes an event, three processes,
and a result.

Figure 1 – 6. A simple business model might consist of an event, three processes, and a result.

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Figure 1-7. This sample uses business process modeling notation (BPMN)
to represent events, processes, and workflow.

New Kinds of Companies

Traditionally, IT companies were identified as product-oriented or service-oriented.
Product-oriented firms manufactured computers, routers, or the microchips whereas service-
oriented companies included vendors, software developers, and service providers. Today, those
distinctions are gone. Most successful IT companies offer a mix of products, services, and support.
Value-added services such as consulting, financing, and technical support can be more profitable
than hardware.

The newest kind of company is the Internet-dependent firm, often described as a dot-com
(.com) company because its primary business depends on the Internet rather than a traditional
business channel. Google, Yahoo!, Amazon, and eBay are examples of pure dot-com companies.
At the other end of the scale are traditional firms, sometimes called brick-and-mortar companies
because they conduct business primarily from physical locations. Most successful brick-and-
mortar firms — such as Lowe’s, Target, and Wal-Mart — have expanded their Web-based
marketing channels to increase sales and serve customers better. This strategy combines the
convenience of online shopping and the alternative of hands-on purchasing for customers who
prefer that option. Today, with rising fuel prices and an eye on expenses, shopping at home is more
popular than ever. In addition to physical products, consumers also buy many types of digital
content. As shown in Figure 1-8, Netflix is an example of a Web-based firm that has seen a sharp
increase in sales. Some of the growth came at the expense of brick-and-mortar competitors.

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Perhaps more importantly, Netflix has been a leader in delivering streaming Internet content that
can displayed on large screen TV sets. The company claims to provide maximum convenience and
value to consumers of home-based entertainment.

Figure 1 – 8. Netflix offers an Internet portal for digital

content that can be viewed on large screen TVs.

V. IMPACT OF THE INTERNET

Internet-based commerce is called e-commerce (electronic commerce) or I-commerce

(Internet commerce). Internet-based systems involve various hardware and software designs, but
a typical model is a series of Web pages that provides a user interface, which communicates with
database management software and a Web-based data server. As Internet-based commerce
continues to grow, career opportunities will expand significantly for IT professionals such as Web
designers, database developers, and systems analysts. The surge in demand will come from dot-
com companies large and small, and from mainstream retailers.
E-commerce includes two main sectors: B2C (business-to-consumer) and B2B (business-
to-business).

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VI. BUSINESS INFORMATION SYSTEMS

In the past, IT managers divided systems into categories based on the user group the
system served. Categories and users included office systems (administrative staff), operational
systems (operational personnel), decision support systems (middle-managers and knowledge
workers), and executive information systems (top managers). Today, traditional labels no longer
apply. For example, all employees, including top managers, use office productivity systems.
Similarly, operational users often require decision support systems. As business changes,
information use also changes in most companies. Today, it makes more sense to identify a system
by its functions and features, rather than by its users. A new set of system definitions includes
enterprise computing systems, transaction processing systems, business support systems,
knowledge management systems, and user productivity systems.

Enterprise Computing
Enterprise computing refers to information systems that support company-wide operations
and data management requirements. Wal-Mart’s inventory control system, Boeing’s production
control system, and Hilton Hotels’ reservation system are examples of enterprise computing
systems. The main objective of enterprise computing is to integrate a company’s primary functions
(such as production, sales, services, inventory control, and accounting) to improve efficiency,
reduce costs, and help managers make key decisions. Enterprise computing also improves data
security and reliability by imposing a company-wide framework for data access and storage. In
many large companies, applications called enterprise resource planning (ERP) systems provide
cost-effective support for users and managers throughout the company. For example, a car rental
company can use ERP to forecast customer demand for rental cars at hundreds of locations.

Transaction Processing
Transaction processing (TP) systems process data generated by day-to-day business
operations. Examples of TP systems include customer order processing, accounts receivable, and
warranty claim processing.

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Business Support
Business support systems provide job-related information support to users at all levels of
a company. These systems can analyze transactional data, generate information needed to manage
and control business processes, and provide information that leads to better decision-making. The
earliest business computer systems replaced manual tasks, such as payroll processing. Companies
soon realized that computers also could produce valuable information. The new systems were
called management information systems (MIS) because managers were the primary users. Today,
employees at all levels need information to perform their jobs, and they rely on information
systems for that support.
A business support system can work hand in hand with a TP system. For example, when
a company sells merchandise to a customer, a TP system records the sale, updates the customer’s
balance, and makes a deduction from inventory. A related business support system highlights slow-
or fast-moving items, customers with past due balances, and inventory levels that need adjustment.
To compete effectively, firms must collect production, sales, and shipping data and update the
company-wide business support system immediately. The newest development in data acquisition
is called radio frequency identification (RFID) technology, which uses high-frequency radio waves
to track physical objects, such as the item shown in Figure 1-9. RFID’s dramatic growth has been
fueled by companies like Wal-Mart, which requires its suppliers to add RFID tags to all items.

Figure 1-9. Retailers use RFID tags for security and inventory control.

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Knowledge Management
Knowledge management systems are called expert systems because they simulate human
reasoning by combining a knowledge base and inference rules that determine how the knowledge
is applied. A knowledge base consists of a large database that allows users to find information by
entering keywords or questions in normal English phrases. A knowledge management system uses
inference rules, which are logical rules that identify data patterns and relationships.
Knowledge management systems do not use strict logical rules. Instead, many knowledge
management systems use a technique called fuzzy logic that allows inferences to be drawn from
imprecise relationships. Using fuzzy logic, values need not be black and white, like binary logic,
but can be many shades of gray. The results of a fuzzy logic search will display in priority order,
with the most relevant results at the top of the list.

User Productivity
Companies provide employees at all levels with technology that improves productivity.
Examples of user productivity systems include e-mail, voice mail, fax, video and Web
conferencing, word processing, automated calendars, database management, spreadsheets, desktop
publishing, presentation graphics, company intranets, and high-speed Internet access. User
productivity systems also include groupware. Groupware programs run on a company intranet and
enable users to share data, collaborate on projects, and work in teams. GroupWise, offered by
Novell, is a popular example of groupware.

Information Systems Integration

Most large companies require systems that combine transaction processing, business
support, knowledge management, and user productivity features. For example, suppose an
international customer has a problem with a product and makes a warranty claim. A customer
service representative enters the claim into a TP system. The transaction updates two other
systems: a knowledge management system that tracks product problems and warranty activity, and
a quality control system with decision support capabilities. A quality control engineer uses what-
if analysis to determine if it would be advantageous to make product design changes to reduce
warranty claims. In this example, a TP system is integrated with a knowledge management system
and a business support system with decision support features.

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VII. WHAT INFORMATION DO USERS NEED?

Corporate organizational structure has changed considerably in recent years. As part of

downsizing and business process reengineering, many companies reduced the number of
management levels and delegated responsibility to operational personnel. Although modern
organization charts tend to be flatter, an organizational hierarchy still exists in most companies. A
typical organizational model identifies business functions and organizational levels, as shown in
Figure 1-10. Within the functional areas, operational personnel report to supervisors and team
leaders. The next level includes middle managers and knowledge workers, who, in turn, report to
top managers. In a corporate structure, the top managers report to a board of directors elected by
the company’s shareholders. A systems analyst must understand the company’s organizational
model to recognize who is responsible for specific processes and decisions and to be aware of what
information is required by whom.

Top Managers
Top managers develop long-range plans, called strategic
plans, which define the company’s overall mission and goals. To
plot a future course, top managers ask questions such as “How
much should the company invest in information technology?” or
“How much will Internet sales grow in the next five years?” or
“Should the company build new factories or contract out the
production functions?” Strategic planning affects the company’s
future survival and growth, including long term IT plans. Top
managers focus on the overall business enterprise and use IT to
set the company’s course and direction. To develop a strategic
plan, top managers also need information from outside the
company, such as economic forecasts, technology trends,
competitive threats, and governmental issues.

Figure 1-10. A typical organizational model identifies business functions

and organizational levels.

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Middle Managers and Knowledge Workers
Just below the top management level, most companies have a layer of middle managers
and knowledge workers. Middle managers provide direction, necessary resources, and
performance feedback to supervisors and team leaders.
In addition to middle managers, every company has people called knowledge workers.
Knowledge workers include professional staff members such as systems analysts, programmers,
accountants, researchers, trainers, and human resource specialists. Knowledge workers also use
business support systems, knowledge management systems, and user productivity systems.
Knowledge workers provide support for the organization’s basic functions. Just as a military unit
requires logistical support, a successful company needs knowledge workers to carry out its
mission.

Supervisors and Team Leaders

Supervisors, often called team leaders, oversee operational employees and carry out day-
to-day functions. They coordinate operational tasks and people, make necessary decisions, and
ensure that the right tools, materials, and training are available. Like other managers, supervisors
and team leaders need decision support information, knowledge management systems, and user
productivity systems to carry out their responsibilities.

Operational Employees
Operational employees include users who rely on TP systems to enter and receive data they
need to perform their jobs. In many companies, operational users also need information to handle
tasks and make decisions that were assigned previously to supervisors. This trend, called
empowerment, gives employees more responsibility and accountability. Many companies find that
empowerment improves employee motivation and increases customer satisfaction.

VIII. SYSTEMS DEVELOPMENT TOOLS

In addition to understanding business operations, systems analysts must know how to use
a variety of techniques, such as modeling, prototyping, and computer-aided systems engineering

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tools to plan, design, and implement information systems. Systems analysts work with these tools
in a team environment, where input from users, managers, and IT staff contributes to the system
design.

Modeling
Modeling produces a graphical representation of a concept or process that systems
developers can analyze, test, and modify.
A systems analyst can describe and simplify an information system by using a set of
business, data, object, network, and process models.

• Business Model or Requirements Model describes the information that a system must
provide.
• Data Model describes data structures and design. An object model describes objects,
which combine data and processes.
• Network Model describes the design and protocols of telecommunications links.
• Process Model describes the logic that programmers use to write code modules. Although
the models might appear to overlap, they actually work together to describe the same
environment from different points of view. System developers often use multipurpose
charting tools such as Microsoft Visio to display business-related models. Visio is a
popular tool that systems analysts can use to create business process diagrams, flowcharts,
organization charts, network diagrams, floor plans, project timelines, and work flow
diagrams, among others.

Prototyping
Prototyping tests system concepts and provides an opportunity to examine input, output,
and user interfaces before final decisions are made. A prototype is an early working version of an
information system. Just as an aircraft manufacturer tests a new design in a wind tunnel, systems
analysts construct and study information system prototypes. A prototype can serve as an initial
model that is used as a benchmark to evaluate the finished system, or the prototype itself can
develop into the final version of the system. Either way, prototyping speeds up the development
process significantly. A possible disadvantage of prototyping is that important decisions might be

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made too early, before business or IT issues are understood thoroughly. A prototype based on
careful fact-finding and modeling techniques, however, can be an extremely valuable tool.

Computer-Aided Systems Engineering (CASE) Tools

Computer-aided systems engineering (CASE), also called computer-aided software
engineering, is a technique that uses powerful software, called CASE tools, to help systems
analysts develop and maintain information systems. CASE tools provide an overall framework for
systems development and support a wide variety of design methodologies, including structured
analysis and object-oriented analysis.

IX. SYSTEMS DEVELOPMENT METHODS

Many options exist for developing information systems, but the most popular alternatives
are structured analysis, which is a traditional method that still is widely used, object-oriented (O-
O) analysis, which is a more recent approach that many analysts prefer, and agile methods, also
called adaptive methods, which include the latest trends in software development.

Structured Analysis
Structured analysis is a traditional systems development technique that is time-tested and
easy to understand. Structured analysis uses a series of phases, called the systems development life
cycle (SDLC), to plan, analyze, design, implement, and support an information system. Although
structured analysis evolved many years ago, it remains a popular systems development method.
Structured analysis is based on an overall plan, similar to a blueprint for constructing a building,
so it is called a predictive approach. Structured analysis uses a set of process models to describe a
system graphically. Because it focuses on processes that transform data into useful information,
structured analysis is called a process-centered technique. In addition to modeling the processes,
structured analysis also addresses data organization and structure, relational database design, and
user interface issues. A process model shows the data that flows in and out of system processes.
Inside each process, input data is transformed by business rules that generate the output. Figure 1-
11 shows a process model that was created with Visible Analyst, a popular software development

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tool. The model, which represents a school registration system, is a called a data flow diagram
(DFD) because it uses various symbols and shapes to represent data flow, processing, and storage.
Figure 1-12 and interaction among several phases is not uncommon. Other analysts regard the
waterfall model as a two-way water flow model, with emphasis on iteration and user input. Used
in this manner, the traditional model is not as different from agile methods as it might appear to
be.

Figure 1-11. This Visible Analyst screen shows a process model for a school registration system. The REGISTER
STUDENTS process accepts input data from two sources and transforms it into output data.

Figure 1-12. The phases and deliverables of the SDLC are shown in the waterfall model.

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X. SYSTEMS PLANNING

The systems planning phase usually begins with a formal request to the IT department,
called a systems request, which describes problems or desired changes in an information system
or a business process. In many companies, IT systems planning is an integral part of overall
business planning. When managers and users develop their business plans, they usually include IT
requirements that generate systems requests. A systems request can come from a top manager, a
planning team, a department head, or the IT department itself. The request can be very significant
or relatively minor. A major request might involve a new information system or the upgrading of
an existing system. In contrast, a minor request might ask for a new feature or a change to the user
interface. The purpose of this phase is to perform a preliminary investigation to evaluate an IT-
related business opportunity or problem. The preliminary investigation is a critical step because
the outcome will affect the entire development process. A key part of the preliminary investigation
is a feasibility study that reviews anticipated costs and benefits and recommends a course of action
based on operational, technical, economic, and time factors. Suppose you are a systems analyst
and you receive a request for a system change or improvement. Your first step is to determine
whether it makes sense to launch a preliminary investigation at all. Often you will need to learn
more about business operations before you can reach a conclusion. After an investigation, you
might find that the information system functions properly, but users need more training. In some
situations, you might recommend a business process review, rather than an IT solution. In other
cases, you might conclude that a full-scale systems review is necessary. If the development process
continues, the next step is the systems analysis phase.

XI. SYSTEMS ANALYSIS

The purpose of the systems analysis phase is to build a logical model of the new system.
The first step is requirements modeling, where you investigate business processes and document
what the new system must do to satisfy users. Requirements modeling continues the investigation
that began during the systems planning phase. To understand the system, you perform fact-finding
using techniques such as interviews, surveys, document review, observation, and sampling. You
use the fact finding results to build business models, data and process models, and object models.

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The deliverable for the systems analysis phase is the system requirements document. The system
requirements document describes management and user requirements, costs and benefits, and
outlines alternative development strategies.

XII. SYSTEMS DESIGN

The purpose of the systems design phase is to create a physical model that will satisfy all
documented requirements for the system. At this stage, you design the user interface and identify
necessary outputs, inputs, and processes. In addition, you design internal and external controls,
including computer-based and manual features to guarantee that the system will be reliable,
accurate, maintainable, and secure. During the systems design phase, you also determine the
application architecture, which programmers will use to transform the logical design into program
modules and code. The deliverable for this phase is the system design specification, which is
presented to management and users for review and approval. Management and user involvement
is critical to avoid any misunderstanding about what the new system will do, how it will do it, and
what it will cost.

XIII. SYSTEMS IMPLEMENTATION

During the systems implementation phase, the new system is constructed. Whether the
developers use structured analysis or O-O methods, the procedure is the same — programs are
written, tested, and documented, and the system is installed. If the system was purchased as a
package, systems analysts configure the software and perform any necessary modifications. The
objective of the systems implementation phase is to deliver a completely functioning and
documented information system. At the conclusion of this phase, the system is ready for use. Final
preparations include converting data to the new system’s files, training users, and performing the
actual transition to the new system. The systems implementation phase also includes an
assessment, called a systems evaluation, to determine whether the system operates properly and if
costs and benefits are within expectations.

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XIV. SYSTEMS SUPPORT AND SECURITY

During the systems support and security phase, the IT staff maintains, enhances, and
protects the system. Maintenance changes correct errors and adapt to changes in the environment,
such as new tax rates. Enhancements provide new features and benefits. The objective during this
phase is to maximize return on the IT investment. Security controls safeguard the system from
both external and internal threats. A well-designed system must be secure, reliable, maintainable,
and scalable. A scalable design can expand to meet new business requirements and volumes.
Information systems development is always a work in progress. Business processes change
rapidly, and most information systems need to be updated significantly or replaced after several
years of operation.

Object-Oriented Analysis
Whereas structured analysis treats processes and data as separate components, object
oriented analysis combines data and the processes that act on the data into things called objects.
Systems analysts use O-O to model real-world business processes and operations. The result is a
set of software objects that represent actual people, things, transactions, and events. Using an O-
O programming language, a programmer then writes the code that creates the objects. An object
is a member of a class, which is a collection of similar objects. Objects possess characteristics
called properties, which the object inherits from its class or possesses on its own. As shown in
Figure 1-13, the class called PERSON includes INSTRUCTOR and STUDENT. Because the
PERSON class has a property called Address, a STUDENT inherits the Address property. A
STUDENT also has a property called Major that is not shared by other members of the PERSON
class.
In O-O design, built-in processes called methods can change an object’s properties. For
example, in a Web-based catalog store, an ORDER object might have a property called STATUS
that changes when a CUSTOMER object clicks to place, confirm, or cancel the order. One object
can send information to another object by using a message. A message requests specific behavior
or information from another object. For example, an ORDER object might send a message to a
CUSTOMER object that requests a shipping address. When it receives the message, the
CUSTOMER object supplies the information. The ORDER object has the capability to send the

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message, and the CUSTOMER object knows what actions to perform when it receives the
message. O-O analysis uses object models to represent data and behavior, and to show how objects
affect other objects. By describing the objects and methods needed to support a business operation,
a system developer can design reusable components that speed up system implementation and
reduce development cost. Object-oriented methods usually follow a series of analysis and design
phases that are similar to the SDLC, although there is less agreement on the number of phases and
their names. In an O-O model, the phases tend to be more interactive. Figure 1-14 shows a system
development model where planning, analysis, and design tasks interact continuously to produce
prototypes that can be tested and implemented. The result is an interactive model that can
accurately depict real-world business processes. O-O methodology is popular because it provides
an easy transition to O-O programming languages such as Java, Smalltalk, C++, Python, and Perl.
Chapter 6 covers O-O analysis and design, with a detailed description of O-O terms, concepts,
tools, and techniques.

Figure 1-13. An interactive model often is used with O-O development methods. In this model, planning, analysis,
and design tasks interact continuously

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Figure 1-14. The PERSON class includes INSTRUCTOR and STUDENT

Agile Methods
Development techniques change over time. For example, structured analysis is a traditional
approach, and agile methods are the newest development. Structured analysis builds an overall
plan for the information system, just as a contractor might use a blueprint for constructing a
building. Agile methods, in contrast, attempt to develop a system incrementally, by building a
series of prototypes and constantly adjusting them to user requirements. As the agile process
continues, developers revise, extend, and merge earlier versions into the final product. An agile
approach emphasizes continuous feedback, and each incremental step is affected by what was
learned in the prior steps. Agile methods typically use a spiral model, which represents a series of
iterations, or revisions, based on user feedback. As the process continues, the final product
gradually evolves.

Other Development Methods

IT professionals know that the key to success is user input — before, during, and after a
system is developed. Over time, many companies discovered that systems development teams

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composed of IT staff, users, and managers could complete their work more rapidly and produce
better results. Two methodologies became popular: joint application development (JAD) and rapid
application development (RAD).

XV. SYSTEMS DEVELOPMENT GUIDELINES

The basic principles in apply to any IT project, large or small. Although you will develop
your own methods and techniques, these guidelines will help you achieve success as a systems
analyst.

Figure 1-15 These basic guidelines apply throughout the systems development process.

XVI. THE INFORMATION TECHNOLOGY DEPARTMENT

The IT department develops and maintains information systems. The structure of the IT
department varies among companies, as does its name and placement within the organization. In
a small firm, one person might handle all computer support activities and services, whereas a large
corporation might require many people with specialized skills to provide information systems
support. Figure 1-16 shows a typical IT organization in a company that has networked PCs,

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enterprise-wide databases, centralized processing, and Web-based operations. The IT group
provides technical support, which includes six main functions: application development, systems
support and security, user support, database administration, network administration, and Web
support. These functions overlap considerably and often have different names in different
companies.

Figure 1-16. Depending on its size, an IT department might have separate organizational units for these functions,
or they might be combined into a smaller number of teams.

Application Development
The IT application development group typically provides leadership and overall guidance,
but the systems themselves are developed by teams consisting of users, managers, and IT staff
members. A popular model for information systems development is a project-oriented team using
RAD or JAD, with IT professionals providing overall coordination, guidance, and technical
support.

Systems Support and Security

Systems support and security provides vital protection and maintenance services for system
hardware and software, including enterprise computing systems, networks, transaction processing
systems, and corporate IT infrastructure. The systems support and security group implements and
monitors physical and electronic security hardware, software, and procedures. This group also
installs and supports operating systems, telecommunications software, and centralized database
management systems. In addition, systems support and security technicians provide technical
assistance to other groups in the IT department. If a site has a large number of remote clients, the
systems support group often includes a deployment team that installs and configures the
workstations.

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User Support
User support provides users with technical information, training, and productivity support.
The user support function usually is called a help desk or information center (IC). A help desk’s
staff trains users and managers on application software such as e-mail, word processing
spreadsheets, and graphics packages. User support specialists answer questions, troubleshoot
problems, and serve as a clearinghouse for user problems and solutions.

Database Administration
Database administration involves data design, management, security, backup, and access.
In small- and medium-sized companies, an IT support person performs those roles in addition to
other duties. Regardless of company size, mission-critical database applications require continuous
attention and technical support.

Network Administration
Business operations depend on networks that enable company-wide information systems.
Network administration includes hardware and software maintenance, support, and security. In
addition to controlling user access, network administrators install, configure, manage, monitor,
and maintain network applications.

Web Support
Web support is a vital technical support function. Web support specialists design and
construct Web pages, monitor traffic, manage hardware and software, and link Web-based
applications to the company’s information systems. Reliable, high-quality Web support is
especially critical for companies engaged in e-commerce.

Quality Assurance (QA)

Many large IT departments also use a quality assurance (QA) team that reviews and tests
all applications and systems changes to verify specifications and software quality standards. The
QA team usually is a separate unit that reports directly to IT management.

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XVII. THE SYSTEMS ANALYST

A systems analyst investigates, analyzes, designs, develops, installs, evaluates, and

maintains a company’s information systems. To perform those tasks, a systems analyst constantly
interacts with users and managers within and outside the company. On large projects, the analyst
works as a member of an IT department team; on smaller assignments, he or she might work alone.
Most companies assign systems analysts to the IT department, but analysts also can report to a
specific user area such as marketing, sales, or accounting. As a member of a functional team, an
analyst is better able to understand the needs of that group and how information systems support
the department’s mission. Smaller companies often use consultants to perform systems analysis
work on an as-needed basis.

Responsibilities
The systems analyst’s job overlaps business and technical issues. Analysts help translate
business requirements into IT projects. When assigned to a systems development team, an analyst
might help document business profiles, review business processes, select hardware and software
packages, design information systems, train users, and plan e-commerce Web sites. A systems
analyst plans projects, develops schedules, and estimates costs. To keep managers and users
informed, the analyst conducts meetings, delivers presentations, and writes memos, reports, and
documentation.

Knowledge, Skills, and Education

A successful systems analyst needs technical knowledge, oral and written communication
skills, an understanding of business operations, and critical thinking skills. Educational
requirements vary widely depending on the company and the position. In a rapidly changing IT
marketplace, a systems analyst must manage his or her own career and have a plan for professional
development.

• Technical Knowledge. State-of-the-art knowledge is extremely important in a rapidly

changing business and technical environment. The Internet offers numerous opportunities
to update technical knowledge and skills. Analysts also maintain their skills by attending

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training courses, both on-site and online. Networking with colleagues is another way to
keep up with new developments, and membership in professional associations is important.

• Communication Skills A systems analyst needs strong oral and written communication
skills, and the ability to interact with people at all levels, from operational staff to senior
executives. Often, the analyst must work with people outside the company, such as
software and hardware vendors, customers, and government officials. Analysts often
coordinate IT project teams, where they use communication skills to guide and motivate
team members.

• Business Skills. A systems analyst works closely with managers, supervisors, and
operational employees. To be effective, he or she must understand business operations and
processes, communicate clearly, and translate business needs into requirements that can be
understood by programmers and systems developers. A successful analyst is business-
oriented, curious, comfortable with financial tools, and able to see the big picture.

• Critical Thinking Skills. Although no standard definition exists, most educators agree that
critical thinking skills include the ability to compare, classify, evaluate, recognize patterns,
analyze cause-and-effect, and apply logic. Critical thinkers often use a what-if approach,
and they have the ability to evaluate their own thinking and reasoning. Critical thinking
skills are valuable in the IT industry, where employers seek job candidates who can
demonstrate these skills and bring them to the workplace

• Education. Companies typically require systems analysts to have a college degree in

information systems, computer science, or business, and some IT experience usually is
required. For higher-level positions, many companies require an advanced degree.
Sometimes, educational requirements can be waived if a candidate has significant
experience, skills, or professional certifications. .

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• Certification. Many hardware and software companies offer certification for IT
professionals. Certification verifies that an individual demonstrated a certain level of
knowledge and skill on a standardized test. Certification is an excellent way for IT
professionals to learn new skills and gain recognition for their efforts. Although
certification does not guarantee competence or ability, many companies regard certification
as an important credential for hiring or promotion.

Career Opportunities
The demand for systems analysts is expected to remain strong. Companies will need
systems analysts to apply new information technology, and the explosion in e-commerce will fuel
IT job growth. The systems analyst position is a challenging and rewarding one that can lead to a
top management position. With an understanding of technical and business issues, a systems
analyst has an unlimited horizon. Many companies have presidents and senior managers who
started in IT departments as systems analysts.

Job Titles
First, do not rely on job titles alone. Some positions are called systems analysts, but involve
only programming or technical support. In other cases, systems analyst responsibilities are found
in positions titled computer specialist, programmer, programmer/analyst, systems designer,
software engineer, and various others. Be sure the responsibilities of the job are stated clearly when
you consider a position.

Company Organization
Find out all you can about the company and where the IT department fits in the organization
chart. Where are IT functions performed, and by whom? A firm might have a central IT group, but
decentralize the systems development function. This situation sometimes occurs in large
conglomerates, where the parent company consolidates information that actually is developed and
managed at the subsidiary level. Where would you rather work?

Company Size
If you like more variety, a smaller firm might suit you best. If you want to specialize,

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however, then consider a larger company with state-of-the-art systems. Although you might have
more responsibility in a smaller company, the promotional opportunities and financial rewards
often are greater in larger companies. You also might want to consider working as an independent
consultant, either on your own or with others. Many consulting firms have been successful in
offering their services to smaller business enterprises that do not have the expertise to handle
systems development on their own.

Corporate Culture
In addition to having goals, methods, and information systems requirements, every firm
has an underlying corporate culture. A corporate culture is the set of beliefs, rules, traditions,
values, and attitudes that define a company and influence its way of doing business. To be
successful, a systems analyst must understand the corporate culture and how it affects the way
information is managed.

Salary, Location, and Future Growth

Finally, consider salary, location, and the company’s prospects for future growth and
success. Think about your impressions of the company and the people you met during your
interviews. Most important, review your short- and long-term goals very carefully before deciding
which position is best for you.

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SUMMARY

• In this module, you learned that information technology (IT) refers to the combination of
hardware, software, and services that people use to manage, communicate, and share
information. Technology is changing rapidly, and IT professionals must prepare for the
future.

• IT supports business operations, improves productivity, and helps managers make

decisions. Systems analysis and design is the process of developing information systems
that transform data into useful information. Traditionally, companies either developed in-
house applications or purchased software packages from vendors. Today, the choice is
much more complex, but it is always important for companies to plan the system carefully
before considering implementation options. The essential components of an information
system are hardware, software, data, processes, and people. Hardware consists of
everything in the physical layer of the information system.

• Software consists of system software, which manages the hardware components, and
application software, which supports day-to-day business operations.

• Data is the raw material that an information system transforms into useful information.
Processes describe the tasks and functions that users, managers, and IT staff members
perform. People who interact with a system include users, from both within and outside the
company. A systems analyst starts with a business profile, which is an overview of
company functions, and then he or she creates a series of business models that represent
business processes, which describe specific transactions, events, tasks, and results.
Analysts use business process modeling tools to document complex operations. Most
successful companies offer a mix of products, technical and financial services, consulting,
and customer support. A rapidly growing business category is the Internet dependent (dot-
com) firm, which relies solely on Internet-based operations. E-commerce includes

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business-to-consumer (B2C) sales, and business-to-business (B2B) transactions that use
Internet-based digital marketplaces or private electronic data interchange (EDI) systems.
Based on their functions and features, business information systems are identified as
enterprise computing systems, transaction processing systems, business support systems,
knowledge management systems, or user productivity systems. In most companies,
significant overlap and integration exists among the various types of information systems.
A typical organization structure includes top managers, middle managers and knowledge
workers, supervisors and team leaders, and operational employees. Top managers develop
strategic plans, which define an overall mission and goals. Middle managers provide
direction, resources, and feedback to supervisors and team leaders.

• Knowledge workers include various professionals who function as support staff.

Supervisors and team leaders oversee operational employees. Each organizational level has
a different set of responsibilities and information needs. Systems analysts use modeling,
prototyping, and computer-aided systems engineering (CASE) tools. Modeling produces a
graphical representation of a concept or process, whereas prototyping involves the creation
of an early working model of the information or its components. A systems analyst uses
CASE tools to perform various systems development tasks. Three popular system
development approaches are structured analysis, which is a traditional method that still is
widely used, object-oriented analysis (O-O), which is a more recent approach that many
analysts prefer, and agile methods, also called adaptive methods, which include the latest
trends in software development. Structured analysis uses a series of phases, called the
systems development life cycle (SDLC) that usually is shown as a waterfall model.
Structured analysis uses an overall plan, similar to a blueprint for constructing a building,
so it is called a predictive approach. This method uses a set of process models to describe
a system graphically, and also addresses data organization and structure, relational database
design, and user interface issues. Object-oriented analysis combines data and the processes
that act on the data into things called objects that represent people, things, transactions, and
events. Objects have characteristics called properties, built-in processes called methods,
and can send information to other objects by using messages. Using an O-O programming
language, a programmer then writes the code that creates the objects. Object-oriented

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methods usually follow a series of analysis and design phases similar to the SDLC, but the
phases are more interactive. Agile methods are the newest development approach, and
attempt to develop a system incrementally by building a series of prototypes and constantly
adjusting them to user requirements. Agile methods typically use a spiral model, which
represents a series of iterations, or revisions, based on user feedback. The repeated
iterations produce a series of prototypes, which evolve into the finished system. Regardless
of the development strategy, people, tasks, timetables, and costs must be managed
effectively using project management tools and techniques.

• Some firms choose to develop their own in-house methods or adopt techniques offered by
software suppliers, CASE tool vendors, or consultants. Companies also use team-based
strategies called joint application development (JAD) and rapid application development
(RAD). The IT department develops, maintains, and operates a company’s information
systems. IT staff members provide technical support, including application development,
systems support, user support, database administration, network administration, and Web
support. These functions overlap considerably and often have different names in different
companies. In addition to technical knowledge, a systems analyst must understand the
business, think critically, and communicate effectively. Valuable credentials such as
certifications are available to systems analysts. A systems analyst’s responsibilities depend
on a company’s organization, size, and culture. Systems analysts need to consider salary,
location, and future growth potential when making a career decision.

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SELF-ASSESSMENT ACTIVITY

Review Questions
1. What is information technology, and why is it important to a business?
2. Define business profiles, processes, and modeling.
3. Identify the main components of an information system, and describe the system’s
stakeholders.
4. Explain the difference between vertical and horizontal systems packages. List and explain
the different phases in the systems development life cycle.
5. What is prototyping?
6. List and explain the different phases in the systems development life cycle.
7. What is prototyping?
8. What are CASE tools? What is a CASE repository and how is it used?
9. What is JAD?
10. What is RAD? How does it compare to the typical SDLC?
11. What are Agile Methodologies?
12. What is information technology, and why is it important to a business?
13. Describe the phases of the systems development life cycle, and compare the SDLC waterfall
model with the spiral model.
14. Explain the use of models, prototypes, and CASE tools in the systems development process.
Also explain the pros and cons of agile development methods.
15. Why is it important to use systems analysis and design methodologies when building a
system?

Real Life and Internet Activities

1. Describe your university or college as a system. What is the input? The output? The boundary?
The components? Their interrelationships? The constraints? The purpose? The interfaces?
The environment? Draw a diagram of this system.

2. A car is a system with several subsystems, including the braking subsystem, the electrical
subsystem, the engine, the fuel subsystem, the climate-control subsystem, and the passenger
subsystem. Draw a diagram of a car as a system and label all of its system characteristics.

3. Contact at least three people at your school or a nearby company who use information
systems. List the systems, the position titles of the users, and the business functions that the
systems support.

4. Do a search on the Web to learn more about agile system development approaches and spiral
models. Prepare a summary of the results and a list of the sites you visited.

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REFERENCES

• Essentials of Systems Analysis and Design 5th Edition by George, Joey F., Hoffer, Jeffrey A.,
and Valachich, Joseph S. ,
• Systems Analysis and Design 9th Edition by Gary B. Shelly and Harry J. Roseblatt
• Systems Analysis and Design 4th Edition by Alan Dennis, Barbara H. Wixom and Roberta M.
Roth
• Systems Analysis and Design 8th Edition by Kenneth E. Kendall and Julie E. Kendall
• Systems Analysis and Design Methods 7th Edition by Jeffrey L. Whitten and Lonnie D. Bentley
• Modern Systems Analysis and Design 7th Edition by George, Joey F., Hoffer, Jeffrey A., and
Valachich, Joseph S. ,

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