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528 Part Four Building and Managing Systems

SYSTEMS ANALYSIS

Systems analysis is the analysis of a problem that a firm tries to solve with an
information system. It consists of defining the problem, identifying its causes,
specifying the solution, and identifying the information requirements that
must be met by a system solution.
The systems analyst creates a road map of the existing organization and
systems, identifying the primary owners and users of data along with existing
hardware and software. The systems analyst then details the problems of
existing systems. By examining documents, work papers, and procedures,
observing system operations, and interviewing key users of the systems, the
analyst can identify the problem areas and objectives a solution would achieve.
Often, the solution requires building a new information system or improving
an existing one.
The systems analysis also includes a feasibility study to determine whether
that solution is feasible, or achievable, from a financial, technical, and orga-
nizational standpoint. The feasibility study determines whether the proposed
system is expected to be a good investment, whether the technology needed for
the system is available and can be handled by the firm’s information systems
specialists, and whether the organization can handle the changes introduced by
the system.
Normally, the systems analysis process identifies several alternative
solutions that the organization can pursue and assess the feasibility of each.
A written systems proposal report describes the costs and benefits, and the
advantages and disadvantages, of each alternative. It is up to management to
determine which mix of costs, benefits, technical features, and organizational
impacts represents the most desirable alternative.

Establishing Information Requirements
Perhaps the most challenging task of the systems analyst is to define the specific
information requirements that must be met by the chosen system solution. At the
most basic level, the information requirements of a new system involve identi-
fying who needs what information, where, when, and how. Requirements analy-
sis carefully defines the objectives of the new or modified system and develops
a detailed description of the functions that the new system must perform. Faulty
requirements analysis is a leading cause of systems failure and high systems
development costs (see Chapter 14). A system designed around the wrong set
of requirements will either have to be discarded because of poor performance
or will need to undergo major modifications. Section 13.3 describes alternative
approaches to eliciting requirements that help minimize this problem.
Some problems do not require an information system solution but instead
need an adjustment in management, additional training, or refinement of
existing organizational procedures. If the problem is information related,
systems analysis still may be required to diagnose the problem and arrive at the
proper solution.

SYSTEMS DESIGN

Systems analysis describes what a system should do to meet information
requirements, and systems design shows how the system will fulfill this
objective. The design of an information system is the overall plan or model
for that system. Like the blueprint of a building or house, it consists of all the
specifications that give the system its form and structure.

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