MMBA22E31

SYSTEM ANALYSIS AND DESIGN

UNIT-2
SYSTEMS ANALYSIS
Systems Analysis - Gathering Information – Discovery – Feasibility - Economics technical
operational – Schedule – Analysis - Cost Benefit Analysis - Risk Analysis - System Proposal.

SYSTEMS ANALYSIS
Systems analysis is a crucial process in understanding and improving complex systems, whether in IT,
business, or other fields. It involves studying a system’s components, interactions, and processes to
identify problems, propose solutions, and optimize performance.
Key Steps in Systems Analysis:
1. Requirements Gathering: Collect information from stakeholders to understand their needs
and expectations.
2. System Modeling: Create representations of the system, using tools like flowcharts, data flow
diagrams, or UML (Unified Modeling Language) diagrams to visualize components and their
relationships.
3. Problem Identification: Analyze the current system to identify inefficiencies, bottlenecks, or
areas for improvement.
4. Feasibility Study: Assess the practicality of proposed solutions in terms of technical,
economic, legal, operational, and schedule feasibility.
5. Solution Design: Develop potential solutions, considering how they align with stakeholder
needs and existing systems.
6. Evaluation: Analyze the proposed solutions to determine their effectiveness and alignment
with project goals.
7. Documentation: Prepare comprehensive documentation of the analysis, including findings,
proposed solutions, and implementation plans.
8. Implementation Planning: Outline steps for putting the solutions into action, including
timelines, resources, and responsibilities.
9. Testing and Validation: After implementation, ensure the system works as intended and meets
stakeholder requirements.
10. Maintenance and Review: Continuously monitor the system for performance and make
adjustments as necessary.
Tools and Techniques:
• Modeling Tools: Visio, Lucidchart, or specialized software for system modeling.
• Analytical Techniques: SWOT analysis, cost-benefit analysis, and root cause analysis.
• Communication: Regular meetings and workshops with stakeholders to ensure alignment and
gather feedback.
Applications:
• Business Systems: Improving processes, enhancing productivity, and reducing costs.
• Software Development: Ensuring software meets user needs and integrates well with existing
systems.
• Information Systems: Enhancing data management and IT infrastructure.

GATHERING INFORMATION
Gathering information is a critical step in systems analysis, as it forms the foundation for understanding
the current system and identifying areas for improvement. Here are key techniques and methods for
effective information gathering:
Techniques for Gathering Information:
1. Interviews:
o Conduct one-on-one or group interviews with stakeholders, including users, managers,
and IT staff.
o Prepare open-ended questions to encourage detailed responses and insights.
2. Surveys and Questionnaires:
o Design surveys to collect quantitative data from a larger audience.
o Include both closed and open-ended questions to gather diverse perspectives.
3. Observation:
o Observe users interacting with the current system to identify pain points and
inefficiencies.
o Take notes on workflows, behaviors, and system interactions.
4. Document Review:
o Analyze existing documentation, such as user manuals, process diagrams, and system
specifications.
o Review reports and performance metrics to understand system effectiveness.
5. Workshops and Focus Groups:
o Facilitate group discussions with stakeholders to brainstorm ideas and gather feedback.
o Use collaborative techniques to encourage participation and diverse viewpoints.
6. Prototyping:
o Develop simple prototypes or mock-ups of proposed solutions.
o Gather user feedback on these prototypes to refine requirements.
7. Shadowing:
o Spend time following users as they perform their tasks to gain insight into their
workflows and challenges.
 o This method helps identify implicit requirements that users may not articulate.
8. Use Case Analysis:
o Identify and document specific use cases that describe how users interact with the
system.
o This helps clarify user needs and system functionality.
Key Considerations:
• Stakeholder Engagement: Ensure that all relevant stakeholders are involved in the
information-gathering process to capture a comprehensive view of the system.
• Open Communication: Foster an environment where stakeholders feel comfortable sharing
their thoughts and experiences.
• Flexibility: Be prepared to adapt your information-gathering methods based on stakeholder
availability and responses.
• Documentation: Record findings meticulously to create a reliable reference for analysis and
decision-making.
Goals of Information Gathering:
• Understand User Needs: Identify what users require from the system and any pain points they
experience.
• Clarify System Objectives: Ensure alignment on the goals of the system and desired outcomes.
• Identify Constraints: Recognize limitations, such as budget, time, and technological
constraints that may impact solutions.

DISCOVERY
Discovery in systems analysis refers to the phase where information is gathered and insights are
generated to understand the existing system and its context. This process is crucial for identifying
requirements, constraints, and potential improvements. Here’s a breakdown of the discovery phase,
including its objectives, techniques, and best practices:
Objectives of Discovery
1. Understand the Current System: Gain a clear understanding of how the existing system
functions, including its processes, workflows, and technologies.
2. Identify Stakeholders: Determine who the key stakeholders are, including users, managers,
IT staff, and external partners.
3. Gather Requirements: Collect detailed requirements from stakeholders regarding what they
need from the system and any challenges they face.
4. Analyze Business Processes: Examine current workflows to identify inefficiencies,
redundancies, or gaps that need to be addressed.
5. Establish System Boundaries: Define what is included in the system and what lies outside its
scope.
Techniques for Discovery
 1. Interviews:
o Conduct interviews with stakeholders to gather qualitative insights about their
experiences and needs.
o Focus on understanding both functional and non-functional requirements.
2. Workshops:
o Organize workshops with diverse stakeholder groups to brainstorm, discuss, and
prioritize requirements.
o Use collaborative techniques like affinity diagrams to organize ideas.
3. Document Analysis:
o Review existing documentation, including process maps, system manuals, and
performance reports.
o Analyze historical data to understand usage patterns and trends.
4. Surveys and Questionnaires:
o Deploy surveys to collect quantitative data from a wider audience, which can help
identify common issues or requirements.
5. Observation:
o Observe users in their working environment to see how they interact with the system
and identify pain points firsthand.
6. Prototyping:
o Develop low-fidelity prototypes or mock-ups to visualize ideas and gather user
feedback early in the process.
7. Contextual Inquiry:
o Conduct interviews in the user's environment, allowing you to see their context and
challenges directly.
Best Practices
• Engage Stakeholders Early: Involve key stakeholders from the beginning to ensure their
needs and perspectives are captured.
• Encourage Open Communication: Foster an environment where stakeholders feel
comfortable sharing their thoughts and concerns.
• Iterative Approach: Use an iterative discovery process where feedback is continuously
gathered and integrated into the analysis.
• Use Visual Tools: Employ diagrams, flowcharts, and other visual aids to clarify complex
processes and facilitate understanding among stakeholders.
• Document Findings: Keep detailed notes of all discovery activities and findings to create a
reference for future analysis and decision-making.
Outcomes of Discovery
 • Requirements Specification: A clear and comprehensive list of functional and non-functional
requirements for the system.
• Process Maps: Visual representations of current workflows that highlight areas for
improvement.
• Stakeholder Insights: A deeper understanding of user needs, pain points, and expectations.
• Feasibility Assessment: Initial analysis of potential solutions and their viability based on
gathered information.

FEASIBILITY
A feasibility study in systems analysis is an evaluation process that assesses the practicality and viability
of a proposed project or solution. It helps determine whether the project should proceed based on various
criteria, such as technical, economic, legal, operational, and scheduling factors. Here’s a detailed look
at the components and steps involved in conducting a feasibility study.
Objectives of a Feasibility Study
1. Assess Viability: Determine whether the proposed solution can be successfully implemented
and operated.
2. Identify Risks: Recognize potential risks and challenges associated with the project.
3. Support Decision-Making: Provide stakeholders with sufficient information to make informed
decisions about proceeding with the project.
4. Resource Estimation: Estimate the resources required, including time, budget, and personnel.
Components of a Feasibility Study
1. Technical Feasibility:
o Evaluate whether the technology required for the project is available and suitable.
o Assess the technical expertise needed and whether the current team can manage the
implementation.
2. Economic Feasibility:
o Conduct a cost-benefit analysis to compare the expected benefits of the project against
its costs.
o Analyze return on investment (ROI), payback period, and total cost of ownership
(TCO).
3. Legal Feasibility:
o Identify any legal or regulatory issues that could affect the project.
o Ensure compliance with relevant laws, standards, and policies.
4. Operational Feasibility:
o Assess whether the organization has the capacity to implement and support the solution.
o Evaluate the impact on current operations, including any changes in processes or
workflows.
 5. Schedule Feasibility:
o Estimate the time required for project completion and assess whether it aligns with
organizational timelines and priorities.
Steps in Conducting a Feasibility Study
1. Define the Project Scope:
o Clearly articulate the goals, objectives, and deliverables of the proposed project.
2. Gather Information:
o Use techniques such as interviews, surveys, and document analysis to collect data
relevant to each component of feasibility.
3. Analyze Data:
o Assess the gathered information against each feasibility criterion, identifying strengths,
weaknesses, and potential barriers.
4. Develop Solutions:
o Explore alternative solutions or approaches if the initial proposal is found to be
unfeasible.
5. Compile Findings:
o Document the results of the feasibility analysis, highlighting key findings and
recommendations.
6. Present to Stakeholders:
o Share the feasibility study with decision-makers, providing them with a clear
understanding of the project’s viability.
7. Make Informed Decisions:
o Based on the findings, stakeholders can decide whether to proceed, modify, or abandon
the proposed project.
Best Practices
• Involve Stakeholders: Engage relevant stakeholders throughout the process to ensure their
insights and concerns are addressed.
• Use Realistic Assumptions: Base your analysis on realistic data and assumptions to avoid
over-optimism or pessimism.
• Be Comprehensive: Ensure the study covers all relevant aspects of feasibility to provide a
well-rounded view.
• Document Thoroughly: Maintain clear documentation to support findings and
recommendations, which can be useful for future projects.
Outcomes of a Feasibility Study
• Feasibility Report: A comprehensive document summarizing the analysis, findings, and
recommendations for the project.
 • Go/No-Go Decision: A clear recommendation on whether to proceed with the project based on
the feasibility analysis.
• Action Plan: If feasible, outline the next steps for implementation, including timelines and
resource allocation.

Economic, Technical, And Operational

In system analysis, assessing economic, technical, and operational feasibility is essential for
understanding whether a proposed system or project is viable. Here’s a detailed look at each aspect in
the context of system analysis:
1. Economic Feasibility
Definition: Economic feasibility evaluates the financial implications of a proposed system, ensuring
that it delivers value that justifies its costs.
Key Components:
• Cost-Benefit Analysis:
o Costs: Identify all costs associated with the system, including development,
implementation, maintenance, training, and operational costs.
o Benefits: Quantify the expected benefits, such as increased revenue, cost savings,
productivity improvements, and enhanced customer satisfaction.
• Return on Investment (ROI):
o Calculate the ROI to determine the profitability of the investment over time.

o
• Payback Period:
o Assess how long it will take to recover the initial investment. A shorter payback period
is generally preferred.

o
• Total Cost of Ownership (TCO):
o Consider all costs throughout the system’s lifecycle, including hidden costs such as
downtime and user training.
• Funding Sources:
o Identify potential sources of funding or budget allocations required for the project.
2. Technical Feasibility
Definition: Technical feasibility examines whether the necessary technology exists and whether the
proposed system can be successfully developed and integrated.
Key Components:
 • Technology Assessment:
o Evaluate existing technologies and solutions to determine if they can meet the project
requirements.
o Consider hardware, software, and network infrastructure.
• Technical Resources:
o Assess the skills and expertise of the current team to determine if additional training or
hiring is necessary.
o Identify whether external expertise or partnerships are needed.
• System Compatibility:
o Analyze how the proposed system will integrate with existing systems and databases,
ensuring interoperability.
• Scalability:
o Determine if the proposed technology can scale to accommodate future growth and
changing needs.
• Risk Analysis:
o Identify potential technical risks, such as implementation challenges, data migration
issues, or technology obsolescence.
3. Operational Feasibility
Definition: Operational feasibility evaluates how well the proposed system fits into the organization's
existing operations and whether it will be accepted by users.
Key Components:
• Process Impact:
o Assess how the new system will affect current business processes, workflows, and
employee roles. Identify areas that may require reengineering.
• User Acceptance:
o Gauge the likelihood of acceptance and support from users and stakeholders. Conduct
interviews, surveys, or focus groups to gather feedback.
• Training Requirements:
o Identify the training needs for staff to effectively utilize the new system and ensure
smooth adoption.
• Resource Availability:
o Evaluate whether the organization has the necessary resources (staff, technology,
infrastructure) to implement and support the system.
• Organizational Culture:
o Consider whether the proposed changes align with the organization’s culture and
values, as these factors can significantly influence user buy-in and the success of the
system.
SCHEDULE
In systems analysis, scheduling refers to the process of planning and organizing the timeline for various
phases of a project, ensuring that tasks are completed on time and within scope. Effective scheduling is
crucial for the successful execution of a system development project, as it helps manage resources, track
progress, and meet deadlines. Here’s an overview of key aspects related to scheduling in systems
analysis:
Importance of Scheduling
1. Time Management: Ensures that all phases of the project are completed in a timely manner,
helping to avoid delays.
2. Resource Allocation: Helps allocate resources efficiently, including personnel, technology, and
budget, to meet project milestones.
3. Coordination: Facilitates communication and coordination among team members and
stakeholders, ensuring everyone is aligned on timelines.
4. Risk Mitigation: Identifies potential bottlenecks or conflicts early, allowing for proactive
management of risks.
Components of Scheduling
1. Project Timeline:
o Create a comprehensive timeline that outlines all phases of the project, including
discovery, requirements gathering, design, development, testing, and implementation.
2. Milestones:
o Define key milestones throughout the project, marking significant achievements or
completion points (e.g., completion of requirements documentation, end of testing
phase).
o Milestones help track progress and keep the project on schedule.
3. Task Breakdown:
o Break down the project into smaller, manageable tasks or activities, often using a Work
Breakdown Structure (WBS).
o Each task should have a clear objective, estimated duration, and assigned resources.
4. Dependencies:
o Identify dependencies between tasks (i.e., which tasks must be completed before others
can begin).
o Understanding dependencies helps in accurately sequencing tasks and avoiding delays.
5. Estimation of Timeframes:
o Estimate the time required to complete each task based on historical data, expert
judgment, or analogous project experiences.
o Consider potential risks and uncertainties that could affect task durations.
 6. Resource Allocation:
o Assign resources to each task, ensuring that the right personnel, technology, and
materials are available when needed.
o Keep in mind resource constraints, such as limited staff availability or budget
restrictions.
Scheduling Tools and Techniques
1. Gantt Charts:
o Visual representations of the project schedule, showing tasks, durations, dependencies,
and milestones.
o Gantt charts help stakeholders understand the overall timeline and progress at a glance.
2. Critical Path Method (CPM):
o A technique used to determine the longest sequence of dependent tasks and identify the
minimum project duration.
o Helps in identifying critical tasks that cannot be delayed without affecting the project
timeline.
3. Program Evaluation and Review Technique (PERT):
o A statistical tool used to analyze the time required to complete each task and assess
project timelines, considering uncertainties.
o PERT uses three estimates (optimistic, pessimistic, and most likely) to provide a more
comprehensive view of scheduling.
4. Project Management Software:
o Tools like Microsoft Project, Trello, or Asana can help in planning, tracking, and
managing project schedules efficiently.
o These tools often provide features for collaboration, resource management, and
reporting.
Best Practices
1. Involve Stakeholders: Engage key stakeholders in the scheduling process to gather input and
ensure their needs are considered.
2. Regular Updates: Review and update the schedule regularly to reflect changes, track progress,
and address any emerging issues.
3. Set Realistic Deadlines: Establish achievable deadlines based on thorough analysis and past
experiences to avoid overpromising.
4. Monitor Progress: Continuously monitor the project's progress against the schedule, using
metrics and indicators to assess performance.
5. Be Flexible: Be prepared to adjust the schedule as needed in response to unforeseen challenges
or changes in project scope.
ANALYSIS
In systems analysis, "analysis" refers to the process of examining and interpreting data to
understand a system's structure, functionality, and performance. This phase is critical for identifying
problems, defining requirements, and determining potential solutions.
COST-BENEFIT ANALYSIS
Cost-benefit analysis (CBA) is a systematic approach used in decision-making to evaluate the
financial implications of a project or investment. It compares the costs associated with an initiative
against the anticipated benefits, helping stakeholders determine whether the project is worthwhile.
Here’s a detailed overview of cost-benefit analysis, including its steps, components, and best
practices.
Key Components of Cost-Benefit Analysis
1. Identification of Costs:
o Direct Costs: Expenses directly associated with the project, such as salaries, materials,
and equipment.
o Indirect Costs: Overhead costs that support the project but aren’t directly attributable
to it, such as utilities or administrative expenses.
o Opportunity Costs: The value of the next best alternative that is foregone when
choosing to pursue the project.
o Lifecycle Costs: Total costs over the project's lifespan, including maintenance,
operation, and disposal costs.
2. Identification of Benefits:
o Tangible Benefits: Quantifiable benefits, such as increased revenue, cost savings, or
productivity gains. These can often be expressed in monetary terms.
o Intangible Benefits: Non-quantifiable benefits, such as improved customer
satisfaction, enhanced employee morale, or brand reputation. While these can be harder
to measure, they should still be considered.
3. Time Frame:
o Determine the time frame for the analysis, typically aligned with the expected lifecycle
of the project.
4. Discount Rate:
o Apply a discount rate to future cash flows to account for the time value of money,
making future benefits and costs comparable to current values.
Steps in Conducting a Cost-Benefit Analysis
1. Define the Scope:
o Clearly articulate the project’s objectives, the time frame for analysis, and the key
stakeholders involved.
2. Identify and Quantify Costs:
o List all costs associated with the project and estimate their monetary values.
o Include both initial costs and ongoing costs throughout the project lifecycle.
3. Identify and Quantify Benefits:
o List all anticipated benefits and estimate their monetary values.
o Include direct benefits, such as revenue increases, as well as indirect benefits, like
improved customer satisfaction.
4. Calculate Net Present Value (NPV):
o Use the discount rate to convert future costs and benefits to present values.

o
5. Perform Sensitivity Analysis:
o Assess how changes in key assumptions (such as cost estimates, benefit projections, or
discount rates) affect the overall analysis. This helps identify which variables have the
most significant impact.
6. Make Recommendations:
o Based on the analysis, determine whether the project’s benefits outweigh its costs. A
positive NPV indicates that the benefits exceed the costs, suggesting that the project is
viable.
Best Practices
• Involve Stakeholders: Engage relevant stakeholders throughout the CBA process to ensure
that all perspectives are considered and to validate assumptions.
• Be Comprehensive: Ensure that all potential costs and benefits are identified and quantified,
even those that are less obvious.
• Document Assumptions: Clearly document any assumptions made during the analysis, as
these can impact the findings and should be transparent to decision-makers.
• Use Realistic Estimates: Base estimates on reliable data, historical performance, or expert
opinions to ensure accuracy.
• Review Regularly: Periodically revisit the CBA as new information becomes available or as
project circumstances change.

RISK ANALYSIS
Risk analysis is the process of identifying, assessing, and prioritizing risks to minimize their impact
on an organization or project. Here’s a brief overview of the key steps involved:
1. Risk Identification
• Brainstorming: Gather a team to discuss potential risks.
• Checklists: Use predefined lists to ensure no common risks are overlooked.
• Expert Interviews: Consult with experienced stakeholders.
• SWOT Analysis: Assess strengths, weaknesses, opportunities, and threats.
2. Risk Assessment
• Qualitative Analysis: Evaluate the impact and likelihood of risks using a descriptive approach
(e.g., high, medium, low).
• Quantitative Analysis: Use numerical methods to estimate the potential impact (e.g., financial
loss, time delays).
3. Risk Prioritization
• Risk Matrix: Create a matrix to visualize and prioritize risks based on their likelihood and
impact.
• Ranking: Rank risks to focus on the most critical ones first.
4. Risk Mitigation Strategies
• Avoidance: Change plans to eliminate the risk.
• Reduction: Implement measures to reduce the likelihood or impact.
• Transfer: Shift the risk to a third party (e.g., insurance).
• Acceptance: Acknowledge the risk and prepare for its consequences.
5. Monitoring and Review
• Regular Updates: Continuously monitor risks and their impacts.
• Adjust Strategies: Modify mitigation strategies as needed based on new information or
changes in circumstances.
6. Documentation
• Maintain a risk register that documents identified risks, assessments, mitigation strategies, and
responsible parties.
Tools and Techniques
• Software: Utilize risk management tools and software for tracking and analysis.
• Scenario Analysis: Evaluate different scenarios to understand potential risks better.

SYSTEM PROPOSAL
Creating a system proposal involves outlining a plan for a project that addresses specific needs or
problems within an organization. Here’s a structured approach to developing a comprehensive
system proposal:
1. Executive Summary
• Briefly summarize the purpose of the proposal, key benefits, and the main objectives of the
proposed system.
2. Background Information
• Current Situation: Describe the existing system or process, highlighting its limitations or
challenges.
• Need for Change: Explain why a new system is necessary and what issues it will address.
3. Objectives
• Define clear and measurable objectives for the proposed system (e.g., increase efficiency,
reduce costs, improve user satisfaction).
4. Proposed Solution
• System Overview: Describe the proposed system, including its key features and functionalities.
• Technology Stack: Outline the technologies that will be used (hardware, software, platforms).
• Architecture: Provide a high-level architectural diagram or description to illustrate how
components will interact.
5. Benefits
• Business Value: Explain how the proposed system will benefit the organization (e.g., increased
productivity, enhanced data accuracy).
• Cost Savings: Highlight potential cost savings or revenue increases.
6. Implementation Plan
• Timeline: Provide a phased timeline for the implementation of the system.
• Resources Needed: Detail the resources required (personnel, budget, tools).
• Training: Outline plans for training users and support staff.
7. Risk Analysis
• Identify potential risks associated with the project (e.g., technical challenges, budget overruns)
and propose mitigation strategies.
8. Budget
• Provide a detailed budget, including initial costs, ongoing operational costs, and potential ROI.
9. Evaluation Metrics
• Define how the success of the system will be measured (e.g., KPIs, user feedback).
10. Conclusion
• Summarize the key points and reinforce the benefits of the proposed system.
11. Appendices (if needed)
• Include any supporting documents, detailed charts, or additional information that complements
the proposal.
Tips for a Successful Proposal
• Clarity: Ensure the proposal is clear and concise, avoiding jargon when possible.
• Visual Aids: Use diagrams, charts, and tables to illustrate points and make the proposal more
engaging.
• Stakeholder Involvement: Involve key stakeholders in the development of the proposal to
ensure their needs are met.