Copyright 2012 Pearson Education Inc publishing as Prentice Hall 20 1 Learning Objectives Explain the five phases of the systems development life cycle Discuss the people involved in systems development and the roles they play ID: 661513
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Chapter 20
Introduction to Systems Development and Systems Analysis
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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Learning Objectives
Explain the five phases of the systems development life cycle.Discuss the people involved in systems development and the roles they play.
Explain the importance of systems development planning and describe planning techniques.Discuss the various types of feasibility analysis and calculate economic feasibility.
Explain why system changes trigger behavioral reactions,
What form this resistance to change takes, and how to avoid or
minimize the resulting problems.Discuss the key issues and steps in systems analysis.
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Why Update Systems?
User or business changesTechnology changesTo improve business process
Create competitive advantageIncrease productivity gainsIntegrate multiple systemsAging systems need replacement
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Software Development Problems
Most software development projects deliver less, cost more, and take longer than expected.Standish Group found that:
70 percent of software development projects were late54 percent were over budget66 percent were unsuccessful30 percent were canceled before completion
American Management Systems found that:
75 percent of all large systems are not used
Not used as intended, orGenerate meaningless reports or inaccurate data
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Systems Development Life Cycle (SDLC)
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SDLC Steps
System AnalysisInformation about system needs, costs, and so on are gathered.
Conceptual DesignGather system/user requirements.
Physical Design
Concepts are translated into detailed specifications.
Implementation and ConversionNew hardware and software are installed and tested.Employees are hired and trained or existing employees relocated.
Processing procedures are tested and modified.Standards and controls for the new system are established and system documentation completed.
Operation and Maintenance
New system is periodically reviewed.
Modifications are made as problems arise or as new needs become evident.
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Systems Analysis Activities
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People Interacting in SDLC
ManagementAccountantsUsers
Information systems steering committeeProject development teamSystems analysts and programmers
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Planning SDLC
Project Development PlanCost/benefit analysisDevelopmental and operational requirements (people, hardware, software, and financial)
Schedule of the activities required to develop and operate the new applicationMaster PlanWhat the system will consist of
How it will be developed
Who will develop it
How needed resources will be acquiredWhere the AIS is headed
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Planning Technique—PERT Chart
Program Evaluation and Review Technique (PERT)Network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion and initiation of activities
Completion time estimates madeCritical path—the path requiring the greatest amount of time is determined
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Planning Technique—GANTT Chart
A bar chart with project activities on the left-hand side and units of time across the top
Graphically shows the entire schedule for a large, complex project
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Feasibility Analysis
Does it make sense to proceed with new system?
Economic:Will system benefits justify the time, money, and resources required to implement it?Technical:
Can the system be developed and implemented using existing technology?
Legal:
Does the system comply with all applicable federal and state laws, administrative agency regulations, and contractual obligations?Scheduling
Can the system be developed and implemented in the time allotted?OperationalDoes the organization have access to people who can design, implement, and operate the proposed system? Will people use the system?
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Capital Budgeting: Economic Feasibility
Cost-Benefit Analysis
Benefits and costs are estimated and compared to determine whether the system is cost beneficial.
Benefits and costs that are not easily quantifiable are estimated and included.
If they cannot be accurately estimated, they are listed, and their likelihood and expected impact on the organization evaluated.
Techniques
Payback Period
Number of years required for the net savings to equal the initial cost of the investment.
Net Present Value (NPV)
Future benefits are discounted back to the present.
Initial cost is subtracted.
Positive NPV = economically feasible.
Internal Rate of Return (IRR)
The effective interest rate that results in an NPV of zero.
A project’s IRR is compared with a minimum acceptable rate to determine acceptance or rejection.
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System Failure Due to Change
The best system will fail without the support of the people it serves.Why people resist change:
FearLack of top management supportLack of communicationDisruptive nature of change
Methods of instituting change
Biases and emotions
Personal characteristics and backgroundCopyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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Types of Resistance
AggressionBehavior that destroys, cripples, or weakens system effectiveness, such as increased error rates, disruptions, or deliberate sabotage
ProjectionBlaming the new system for everything that goes wrongAvoidanceIgnoring a new AIS in the hope that the problem (the system) will eventually go away
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Preventing Resistance
Obtain management supportMeet user needs
Involve usersStress new opportunitiesAvoid being too emotional
Provide user training
Reexamine performance evaluation to make sure they are aligned with new system
Keep communication lines openControl users expectations
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