Chapter 16

Structured

Systems

Analysis

Learning Objectives

• Know goals, plans, tasks, tools, & results of systems analysis

• Understand/appreciate costs of developing, maintaining, operating information system

• Appreciate typical information system benefits

• Understand how accountants participate in systems analysis

• Perform some analysis tasks

3

Systems development life cycle

ExternalSources

H/W - S/WVendors

1.0SystemsSurvey

2.0Structured

SystemsAnalysis

3.0SystemsSelection 4.0

StructuredSystemsdesign

5.0Systems

Implemen-tation

6.0PostImp.

review

7.0SystemsMainte-nance

Requestfor systems

development

Approvedfeasibillitydocument

Miscenvironmental

information

Physicalrequirements

Logicalspecifications

Approveddesign

document

Approvedconfiguration

plan

AvailableH/W & S/W

Request forProposal

Vendorproposals

Contract

Purchasedsoftware

Hardware

Projectcompletion

report

SystemsAnalysis

SystemsDesign

SystemsImplem

-entation

SystemsOperation

4

Systems Analysis Goals• Define problem precisely

• Devise alternative designs (solutions)

• Choose & justify one of the alternatives

• Develop logical specifications for selected design

• Develop physical requirements for selected design

• Develop budget for next two SD phases (systems design; systems implementation)

5

Systems Analysis Plans & Documents2.1

Study &document

currentphysicalsystem

2..2Extract &document

current logicalequivalent

2.3Define

future logicalsystem

2.4Design

alternativephysicalsystems

2.5Select bestalternative

physicalsystem

2.6Complete/package

approvedsystemsanalysis

document

Approvedfeasibilitydocument

Currentphysicalsystem

Currentlogicalsystem

Futurelogicalsystem

Alternativefuture

physicalsystems

Cost/ effectivenessstudy

Selectedalternative

physicalsystem

Logicalspecifications

Physicalrequirements

See Chapter 3

6

Accountant’s Involvement in Systems Analysis

• Systems specialist or consultant

• Staff accountant

– User/requester

– member of analysis team

– interviewee by analysis team

• Internal auditor

– consultant to analysis team

– agent of management/board of directors

7

Systems Analysis Document

• Executive summary

– Project summary

– Summary of proposed system

– Summary of impact of new system

– Summary of cost/effectiveness & recommendations

• Systems analysis summary

– facts gathered

– analysis performed

8

Systems Analysis Document (cont.)

• User requirements for new system

– Operating requirements

– Information requirements

– Control requirements

• Description of future logical system

– DFDs, data dictionaries, narrative description

– Summary of improvements from new system

9

Systems Analysis Document (cont.)

• Description of future physical system

– DFDs, flowcharts, narrative

– Summary of cost/benefit improvements - new system

• New system constraints

– Hardware & software constraints

– Interface constraints

– Contractual/legal requirements

10

Systems Analysis Document (cont.)

• Design phase budget & schedule

– Design phase personnel/computer requirements

– Development schedule

• Physical requirements

– Workload & volume

– Response times

– Functional layouts of screens & reports

– System growth

11

Systems Analysis Document (cont.)

• Recommendations - project leader

• Approvals

• Attachments

– Approved feasibility document

– Analysis memos, summaries, tables, graphs, charts

– Cost/effectiveness schedules

12

Systems Analysis Documentation

• Memos summarizing interview & observations

• Narratives describing observations

• Charts, tables, graphs

• Completed questionnaires (or summaries)

• Flowcharts

• Physical DFDs

• Organization charts

13

Future logical system from current

• Add new activities

• Remodel existing activities

• Add or change control activities

14

Future Physical from Future Logical

• Decide which processes will be manual/automated

• Decide which would be immediate processing and which would be batch

• Complete specifications for new system

– alternative technologies (EDI, mail)

– alternative modes (immediate/batch)

15

Select Best Alternative Physical System

• Analysis team recommends

• IT steering committee ratifies - or sends back

• Analysis team conducts cost/effectiveness study

– cost/benefit analysis

– effectiveness analysis

16

Cost/Benefit Analysis• Estimate costs of new system

– direct costs - equipment, personnel, site, materials, supplies

– indirect costs - overhead-type costs, utilities

• Estimate benefits of new system

– direct benefits - reduced personnel/hardware costs

– indirect benefits - improved revenue from improved customer support; reduced inventory &/or accounts receivable

17

Effectiveness Analysis

• Analysts & user list all relevant criteria, including costs & benefits

• Users & analysts jointly assign subjective rankings for each criterion for each alternative

• Team ranks alternatives by summarizing ratings

• Team recommends best alternative to steering committee

18

Logical Specifications• Will be used in systems selection or design

• Executive summary - DFD & narrative for major features, objectives, benefits & constraints

• Application description - DFD & narrative for each system function

• Information requirements - each input, output, & file: purpose, description, origin, major elements, frequency, volume, distribution

• Miscellaneous functions

19

Physical Requirements• Used in systems selection to acquire equipment

• Items to be specified

– Data storageFile size, growth, activity, access requirementsTransaction volume/expected growthPeripherals - printers, PCs, plottersCommunicationsBackup & securityProcessing approachesReliabilityOutput distributionResponse time requirements

20

Budget & Schedule• Budget - from cost/benefit analysis - update of

projections made during systems survey

• Schedule - update of preliminary schedules made during systems survey

• Finally, the document should have the proper approvals

Learning Objectives

• Know goals, plans, tasks, tools, & results of systems analysis

• Understand/appreciate costs of developing, maintaining, operating information system

• Appreciate typical information system benefits

• Understand how accountants participate in systems analysis

• Perform some analysis tasks