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Chapter 2 System

Analysis

  SYSTEM ANALYSIS

System Analysis is the test of a system Proposal according to its workability, impact on

the Organization, ability to meet user needs, and effective use of resources. It should demonstrate

user needs and how the system meets them. he Ob!ective of the System analysis not to solve the

 problem but to ac"uire a sense of scope. In the system analysis phase, the system analyst or the

systems development team determines what the new system should accomplish.

Steps involved in system analysis:

#$efinition of the system and its ob!ective%

$efine the system and its elements determine the system boundaries and scope.

Select the ob!ective for the system.

& $evelopment of the system%

he System analysis of the e'isting system and changes therein.

$ecision making needs are identified and corresponding needs are defined.

A feasibility of the system e'amined.

$esign the computer system output design, input design, procedure design.

( Installation of the system and testing%

he system is tested and installed for the hardware or implementation.

) Operation of the system%

he system is operated in full course and e'isting system discontinued.

* +eview and valuation%

A review is taken whether the system ob!ective are being met with and what are all the

 problems in the running.

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Chapter 2 System

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2.1 Existing System:

In e'isting system, all the data processing is done manually and hence the system is very

slow. he data are stored in different types of registers. 1etting a particular data is very difficult.

he calculations needs a lot of time and resources and also calculations are very much prone to

errors. his system causes very much difficulty both to the employees and to customers.

Existing System Dra!a"#s:

 $ifficult to maintain all entries.

 $ifficult to generate a report.

 It is very much time consuming.

 $ifficult to search a record

 $ata may not be perfect human error.

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Chapter 2 System

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2.2 $roposed System:

Auto inancing develops commercial lending solutions. oday, customers are more

knowledgeable and more demanding than ever. hey are aware of all the options available to

them and, if a lending organization is not able to process a loan application within a desirable

time frame, they are "uick to switch to some other organization that can very well do so.

inancial institutions need to realize that to maintain reliability customers demand convenience

apart from attractive interest rates.

Often inancial companies are challenged by the manual processing of loans, creating

spiraling labor costs and backlogs of files preventing loans from closing on schedule. his

translates into loss of business to competition. or this reason, many financial institutions are

now following the footsteps of their global counterparts in automating their lending processes,

covering the entire loan life cycle 4 from loan origination through loan application process, risk

assessment, decision5making, monitoring, and management control of approved loans.

An automated loan processing solution allows these lending organizations to close more

"ualified loans faster with improved operational efficiency. It virtually eliminates the tedious

sorting of both paper and dramatically minimizes the costly manual data entry.

T%e #ey !ene&its o& an e&&i"ient loan pro"essing system in"l'de:

• + eduction in processing time by

Optimal work distribution

Immediate identification of bottlenecks and deviations

Parallel processing of loan application documents

• 1reater customer satisfaction through "uicker response and new product offerings

• fficient document management and tracking of status across the bank 

• Improved monitoring using audit trails and ability to drill down to granular details

• 6inimized manual entry of critical loan information

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Chapter 2 System

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• nhanced accuracy of data entered into the loan system

• 8etter compliance with regulatory re"uirements

• +educed turnaround and processing times

• asy handling of fluctuations in loan volume

2.( )easi!ility St'dy:

he feasibility study activity is to determine whether it would be financially and

technically feasible to develop the product. he feasibility study activity involves the analysis of

the problem and collection of all relevant information relating to the product such as the different

data items which would be input to the system, the processing re"uired to be carried out on these

data, the output data re"uired to be produced by the system as well as various constraints on the behavior of the system.

here are basically si' parts to any effective easibility Study%

1. T%e $ro*e"t S"ope which is used to define the problem and9or opportunity to be addressed.

he scope should be definitive and to the point: tedious narrative serves no purpose and can

actually confuse pro!ect participants. It is also necessary to define the parts of the product

affected either directly or indirectly.

2. T%e +'rrent Analysis is used to define and understand the current method ofimplementation. he strengths and weaknesses of the current approach are identified. In

addition, there may the current system that may be used in its successor thus saving time and

money later on.

(. ,e-'irements 5 how re"uirements are defined depends on the ob!ect of the pro!ect;s attention.

+e"uirements are specified for a product is substantially different than re"uirements for an

edifice, a bridge, or an information system. ach e'hibits totally different properties and, as

such, are defined differently.

. T%e Approa"% represents the recommended solution or course of action to satisfy the

re"uirements. <ere, various alternatives are considered along with an e'planation as to why the

 preferred solution was selected. It is also at this point where the use of e'isting structures and

commercial alternatives are considered.

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Chapter 2 System

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/. Eval'ation 5 e'amines the cost effectiveness of the approach selected. his begins with an

analysis of the estimated total cost of the pro!ect. or development pro!ects, an estimate of labour

and out5of5pocket e'penses is assembled along with a pro!ect schedule showing the pro!ect path

and start5and5end dates.

0. ,evie 5 all of the preceding elements are then assembled into a easibility Study and a

formal review is conducted with all parties involved. he review serves two purposes% to

substantiate the thoroughness and accuracy of the easibility Study.

2.(.1 E"onomi"al )easi!ility:

conomic analysis is the most fre"uently used techni"ue for evaluating the effectiveness of a

 proposed system. 6ore commonly known as 0ost 9 8enefit analysis, the procedure is to

determine the benefits and savings that are e'pected from a proposed system and compare them

with costs.

his will include three ma!or costs as described below %

• 0ost of <ardware and Software

• 0ost of Software to be ac"uired to build and run the product is a one time cost.

• 8uying a back and database is the ma!or part of hardware and Software cost. 0omparison

 between the oracle database high cost and better features with the S>? server low cost

and better support for the same vendor operating system make this decision need

oriented.

2.(.2 perational )easi!ility:

his is mainly related to human organizational and political aspects. he points to be considered

are%

@hat changes will be brought with the systemB

@hat organizational structure is disturbedB

@ hat new skills will be re"uiredB $o the e'isting staff members have these skillsB

his feasibility study is carried out by a small group of people who are familiar with

information system techni"ue and are skilled in system analysis and design process.

Proposed pro!ects are beneficial only if they can be turned into information system that will meet

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Chapter 2 System

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the operating re"uirements of the organization. his test of feasibility asks if the system will

work when it is developed and installed.

2.(.( Te"%ni"al )easi!ility:

In technical feasibility, all technical issues regarding the proposed system are studied. It is

mainly concerned with the specifications of the e"uipments and the software, which successfully

satisfies the end5user;s re"uirement. he technical needs of the system may vary accordingly but

include%

• he feasibility to produce outputs in a given time.

• +esponse time under certain conditions.

• Ability to process a certain volume of the transaction at a particular speed.

• acility to communicate data.

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