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Systems Analysis and Design

      Lecturer: Albert Osei
PARIS MODEL
PHASE I
        Planning the approach
One of the main causes of project failure is
inadequate understanding of the requirements

one of the main causes of inadequate
understanding of the requirements is poor
planning of system analysis.
Cont…
The first step taken by the systems analyst
should be to plan the approach carefully,
bearing in mind the old saying that


 ‘failure to prepare is to
       prepare to fail!’
Cont..
Before requirement gathering starts, the
analyst needs to stand back, recall the
objectives of the project, and consider the
following three points in order to plan;
    What type of information is required?

    What are the constraints on the investigation?

    What are the potential problems?
CASE Study
Let’s consider an example: You work for a Company
based in UK. Your company has just won the following
contract with Nestle Gh. Limited. The contract covers:

– Analysis of Nestle’s current warehousing, stock control and
  manufacturing systems and the integration of these systems;

– an investigation of Nestle’s current problems and of future
  strategic plans in this area;

– production of a report outlining your company’s proposals for
  meeting Nestle’s future systems requirements in warehousing,
  stock control and manufacturing systems.
Cont..
Nestle is an international company and has
presence all over the world.

The company has four manufacturing sites at
Accra, Kumasi, Takoradi and Tamale. There are
warehouses at each manufacturing site;

Against this background think about how you
would plan this investigation.
It will be good to think about the:

The critical information you require before the
investigation starts;

HOW you will get that information;
WHAT techniques will be appropriate;

What are the constraint- to the project and the
company.
Planning is the answer….
Planning
As part of the planning process, analysts must
ensure that:
– He understand the objectives and terms of reference
  agreed with the client;

– He must be aware of constraints that affect the
  analysis process;

– they plan the research, initial contact and other tasks
  to be completed during

– the investigation and manage time appropriately
Objectives &
         Terms of Reference
To understand more about the client’s
expectations, you need to ask a number of
key questions at the beginning of the
analysis phase of the project:

– Who initiated the project?
– What is their role in the organisation?
– What are their objectives for the project?
– What are the company objectives
Cont..
Once you know the answers to these
questions, you can begin to understand
the context in which the analysis is to be
carried out.
Projects are usually initiated to meet
organisational need:

– Senior management: strategic planning and
                      decision making
– Line managers: system to support their activities

– The IT dept: cost-efficiency, new technologies or
               method of working
Whatever the case might be, management of
organisation expect to benefit, e.g:
increased profitability;
improved cash flow;
more effective utilisation of resources,
improved customer service leading to customer
satisfaction.
faster access to management information;
better management control
Analyst will be in good position to address
management’s problems if they are able to
prioritized the OBJECTIVE. To help in;

Planning the analysis phase

Writing proposal after the analysis
The stated objectives of the client are
usually recorded in the terms of reference.

main areas included in the terms of
reference.
    System boundaries-(Scope)
    Constraints
    Objectives
    Permissions
    Deliverables
System Boundaries
System boundary define the area of the
organisation under investigation and may
also specify the limit of any new system
Implemented as a result of the project.

Should be a paragraph or a series of dot
points, describing where the
process/system/operation/issue to be
studied begins and ends
Constraints
Restrict the project, or the solution, in many
ways. May be expressed in terms of;




           Fig 1.0: Constraints on possible solution
Objectives
 An unambiguous statement of the
expectations of those in the client’s
organisation who have initiated the
project. These may be broken down by
function or department.

Well-defined objectives are clear and
measurable.
Permission
This will indicate who in the client’s
organisation is responsible for the
supervision of the project.

 and, if permission needs to be granted –
for example to extend the scope of the
analysis – who has the authority to do so.

Points of contact and the appropriate
reporting structure may also be defined.
Deliverable
A description of the deliverable or end
products of the investigation.

Usually they fall into making
recommendation for:
– solving a problem;
– improving a process or a system;
– making a change;
– creating a new system
USES OF TR
Planning
Reference point for the project
Resolving conflicts that may arise

Thus;

Must exist, if none exist, create it and
agree with the client
Constraints
After understanding the TR and the Objective
It’s important that all constraints are understood
in order to help with planning and to avoid
problems
Constraints may be set by the customer to limit
the options that may be presented as part of the
system proposals.
They may be expressed in the TR
They may be expressed in terms
of;
– Technology: software or
  hardware
– Environment: skilled or unskilled
  users, place of use..
– Timescale: delivery time base
  on customer/gov policy
– Budget: cash available for the
  purchase of hardware or
  software, limitations on the
  operation budget

– Scope: area under investigation,
  system boundary
                                      Fig 1.1: Constraints on possible solution
Other constraints are:
.




              Fig 1.2: Constraints on investigation -
           help in selecting the right fact-finding approach
Getting Ready
                 for Detailed Analysis
In order for analysts to be well prepared for the later
stages of systems analysis, and to increase their
credibility in interviews with client staff and
stakeholders more time needs to be spent on research
during the planning stage
This means:
     Understanding the TR
     Reviewing relevant documents
       –   Contract documents
       –   Annual reports
       –   Organisation structures
     Identify the types of information you will need to collect during your
     investigation
     The areas to be investigated
Following are examples of topics that the analyst may wish to investigate:

Growth
 – What plans does the organisation have for future growth,
 – what would be the information requirements to support this growth

Functionality.
 – What are the major areas of the business
 – the functions – that will be investigated during the system,
 – and what are the client’s requirements for the functionality of the system?

Procedures.
 – What procedures, standards and guidelines govern the way in which the
   organisation conducts its business
 – are they recorded somewhere
Volumes.
– What are the volumes of data that pass through the system?
       how many orders are processed by the sales department in a week?
       How many amendments are made to customer records each month?

Fluctuations.
–   What bottlenecks or hold-ups are there in the system,
–   Where and when do these occur in the current system?
–   What steps are taken to deal with these?
Information required.
– What information is currently required by the business in order to carry out its
  functions effectively,
– what are the sources of this information?
– What information, if available, will it benefits the organisation?

Environment.
– In what type of environment is the business conducted
– how does this affect the way in which information is exchanged?

Problems.
–    In the view of users, what are the main problems with the system,
–   what are the implications of these problems,
–   how can the problems be overcome?
In planning the approach to analysis, an
important area to consider is the:
– First face-to-face contact with the client.
Why Face-to-face
             Contact

To gather requirements

To build a good relationship with the client

To establish the analyst’s credibility
Face-to-face
                 Meeting Ethics
In all meetings with users, the following guidelines
represent good practice:
– Focus on confidentiality, integrity, respect and confidence-
  building.
– Recognise expertise in the users and welcome their input.
– Have as a key objective the need to build the client’s
  confidence.
– Keep everybody informed. This includes client contacts and
  project staff.
– Be discreet and diplomatic.
– Double-check any information gathered.
There are many tasks to complete during
systems analysis however there are
limited time;

Time management is one of the factors to
be taken into consideration

It should be budgeted for, managed and
used
To help you manage your time as effectively
as possible, here are some guidelines:
–   List objectives and set priorities.
–   Make a daily ‘to do’ list
–   Handle paper only once.
–   Set and keep deadlines
– Ask yourself frequently ‘What’s the best use of my time right now?’
– Always carry a notebook
– Do it now (The right time is now..).
The Feasibility Study
The objectives of a feasibility study are to find out if the project
can be done (...is it possible?...is it justified?) and to suggest
possible alternative solutions
A feasibility study should provide management with enough
information to decide:
– Whether the project can be done;
– Whether the final product will benefit its intended users;
– What are the alternatives among which a solution will be chosen (during
  subsequent phases)?
– Is there a preferred alternative?

 After a feasibility study, management makes a go/no-go
decision.
Thus, analyst should concentrate on
providing answers to four key questions:

– How much - The cost of the new system.
– What - The objectives of the new system.
– When - The delivery timescale.
– How - The means and procedures used to
        produce the new system.
What to study
Things to be studied during the feasibility study phase:
The present organizational system
 – users, policies, functions, objectives,...

Problems with the present system –
 – inconsistencies, inadequacies in functionality, performance,...,
Objectives and other requirements for the new system
 – What needs to change?

Constraints, including non-functional requirements on the system
 – preliminary pass
Possible alternatives
 – the current system is always one of those

Advantages and disadvantages of the alternatives

Things to conclude: Feasibility of the project and the preferred alternative.
Types of Feasibility
Operational
–    Define the urgency of the problem and the acceptability of any solution; If the
    system is developed, will it be used? Includes people-oriented and social issues:
    internal issues, such as manpower problems, labour objections, manager
    resistance, organizational conflicts and policies; also external issues, including
    social acceptability, legal aspects and government regulations.

Technical
– Is the project feasibility within the limits of current technology? Does the
  technology exist at all? Is it available within given resource constraints (i.e.,
  budget, schedule,...)

Economic (Cost/Benefits Analysis)
–    Is the project possible, given resource constraints? Are the benefits that will
    accrue from the new system worth the costs? What are the savings that will
    result from the system, including tangible and intangible ones? What are the
    development and operational costs?
Schedule
– Constraints on the project schedule and whether they could be reasonably met.
Operational Feasibility:
          The PIECES Framework
The PIECES framework can help in identifying operational problems to be
solved, and their urgency:
Performance - Does current mode of operation provide adequate
throughput and response time?
Information - Does current mode provide end users and managers
with timely, ‘to the point’, accurate and usefully formatted information?
Economy- Does current mode of operation provide cost-effective
information services to the business? Could there be a reduction in costs
and/or an increase in benefits?
Control - Does current mode of operation offer effective controls to
protect against fraud and to guarantee accuracy and security of data and
information?
Efficiency- Does current mode of operation make maximum use of
available resources, including people, time, flow of forms,...
Services- Does current mode of operation provide reliable service? Is it
flexible and expandable?
How do end-users and managers feel about the problem
(solution)?

It's not only important to evaluate whether a system can work
but also evaluate whether a system will work.

A workable solution might fail because of end user or
management resistance.
– Does management support the project?
– How do the end users feel about their role in the new system?
– What end users or managers may resist or not use the system?
  People tend to resist change. Can this problem be overcome?
  If so, how?
– How will the working environment of the end users change?
– Can or will end users and management adapt to the change
Technical Feasibility
Is the proposed technology or solution
practical?
Do we currently possess the necessary
technology?
Do we possess the necessary technical
expertise, and is the schedule reasonable?
Is relevant technology mature enough to be
easily applied to our problem?
– Some firms like to use state-of-the-art
  technology, but most firms prefer to use mature
  and proven technology.
– A mature technology has a larger customer base
  for obtaining advice concerning problems and
  improvements.

 Assuming that required technology is
practical, is it available in the information
systems shop? If the technology is available,
does it have the capacity to handle the
solution.
If the technology is not available, can it be
acquired?
Schedule Feasibility
We may have the technology, but that doesn't mean we
have the skills required to properly apply that technology.
True, all information systems professionals can learn new
technologies. However, that learning curve will impact the
technical feasibility of the project; specifically, it will
impact the schedule.
Given our technical expertise, are the project deadlines
reasonable? Some projects are initiated with specific
deadlines. You need to determine whether the deadlines
are mandatory or desirable. If the deadlines are
desirable rather than mandatory, the analyst can propose
alternative schedules.
It is preferable (unless the deadline is absolutely
mandatory) to deliver a properly functioning system two
months late than to deliver an error-prone, useless
information system on time!
Missed schedules are bad, but inadequate systems are
worse!
Economic Feasibility

The bottom line in many projects is economic
feasibility.
During the early phases of the project, economic
feasibility analysis amounts to little more than
judging whether the possible benefits of solving
the problem are worthwhile.
As soon as specific requirements and solutions
have been identified, the analyst can weigh the
costs and benefits of each alternative.
This is called a cost-benefit analysis.
Cost/Benefit Analysis
The purpose of a cost/benefit analysis is to answer
questions such as:
–   Is the project justified (because benefits outweigh costs)?
–   Can the project be done, within given cost constraints?
–   What is the minimal cost to attain a certain system?
–   What is the preferred alternative, among candidate solutions?

Examples of things to consider:
– Hardware/software selection
– How to convince management to develop the new system
– Selection among alternative financing arrangements
  (rent/lease/purchase)

 Difficulties - discovering and assessing benefits and
costs; they
– can both be intangible, hidden and/or hard to estimate, it's also
– hard to rank multi-criteria alternatives
Feasibility study report
A report is written after the study
The content should include:




         Fig 1.3: Feasibility study report content
Background

Terms of reference.

Reasons for the study

This section will outline the background to
the project and the way it relates to the
stated objectives of the organisation.
The current situation

Overview of current situation.

Problems and requirements identified.
Proposed solution
A description of the requirements of a new system along with
 a number of options explaining how this solution might be
implemented. Each option will address:

Technical implications
– how it meets the requirements, the hardware and software needed.

Operational implications
– the impact the solution will have on the business in terms of human,
  organisational and political aspects.

Cost implications
– both initial (capital) and continuing (operational). There are a number of
  methods of assessing the costs of solutions. In the feasibility report, the
  analyst should use the cost assessment method specified by the client.
Cost–benefits analysis


A comparison of costs and benefits
prepared using whatever evaluation
technique is favoured by the organisation.
Recommendations
A brief statement that presents the main points of the
previous sections of the report.
3 types of recommendation can be made in a
feasibility report:
– Advising the client to progress with the full detailed
  analysis. If this is the case, a plan would also be included
  for this phase of the project.

– Advising the client to review the terms of reference or the
  scope of the study before proceeding further or making any
  judgement on feasibility.
– Advising the client to scrap the project as it is not feasible;
  the resources could be better spent elsewhere.
Once the feasibility report has been
delivered

Assuming that the recommendation made
by the analyst is to proceed, the detailed
systems analysis phase can begin
To start the investigation the following
needs to be done;

– collect information about the current system
– record the problems & requirements
– building up a picture of the required system


                 Next…
Asking Questions & Collecting Data

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Systems Analysis

  • 1. Systems Analysis and Design Lecturer: Albert Osei
  • 3. PHASE I Planning the approach One of the main causes of project failure is inadequate understanding of the requirements one of the main causes of inadequate understanding of the requirements is poor planning of system analysis.
  • 4. Cont… The first step taken by the systems analyst should be to plan the approach carefully, bearing in mind the old saying that ‘failure to prepare is to prepare to fail!’
  • 5. Cont.. Before requirement gathering starts, the analyst needs to stand back, recall the objectives of the project, and consider the following three points in order to plan; What type of information is required? What are the constraints on the investigation? What are the potential problems?
  • 6. CASE Study Let’s consider an example: You work for a Company based in UK. Your company has just won the following contract with Nestle Gh. Limited. The contract covers: – Analysis of Nestle’s current warehousing, stock control and manufacturing systems and the integration of these systems; – an investigation of Nestle’s current problems and of future strategic plans in this area; – production of a report outlining your company’s proposals for meeting Nestle’s future systems requirements in warehousing, stock control and manufacturing systems.
  • 7. Cont.. Nestle is an international company and has presence all over the world. The company has four manufacturing sites at Accra, Kumasi, Takoradi and Tamale. There are warehouses at each manufacturing site; Against this background think about how you would plan this investigation.
  • 8. It will be good to think about the: The critical information you require before the investigation starts; HOW you will get that information; WHAT techniques will be appropriate; What are the constraint- to the project and the company.
  • 9. Planning is the answer….
  • 10. Planning As part of the planning process, analysts must ensure that: – He understand the objectives and terms of reference agreed with the client; – He must be aware of constraints that affect the analysis process; – they plan the research, initial contact and other tasks to be completed during – the investigation and manage time appropriately
  • 11. Objectives & Terms of Reference To understand more about the client’s expectations, you need to ask a number of key questions at the beginning of the analysis phase of the project: – Who initiated the project? – What is their role in the organisation? – What are their objectives for the project? – What are the company objectives
  • 12. Cont.. Once you know the answers to these questions, you can begin to understand the context in which the analysis is to be carried out.
  • 13. Projects are usually initiated to meet organisational need: – Senior management: strategic planning and decision making – Line managers: system to support their activities – The IT dept: cost-efficiency, new technologies or method of working
  • 14. Whatever the case might be, management of organisation expect to benefit, e.g: increased profitability; improved cash flow; more effective utilisation of resources, improved customer service leading to customer satisfaction. faster access to management information; better management control
  • 15. Analyst will be in good position to address management’s problems if they are able to prioritized the OBJECTIVE. To help in; Planning the analysis phase Writing proposal after the analysis
  • 16. The stated objectives of the client are usually recorded in the terms of reference. main areas included in the terms of reference. System boundaries-(Scope) Constraints Objectives Permissions Deliverables
  • 17. System Boundaries System boundary define the area of the organisation under investigation and may also specify the limit of any new system Implemented as a result of the project. Should be a paragraph or a series of dot points, describing where the process/system/operation/issue to be studied begins and ends
  • 18. Constraints Restrict the project, or the solution, in many ways. May be expressed in terms of; Fig 1.0: Constraints on possible solution
  • 19. Objectives An unambiguous statement of the expectations of those in the client’s organisation who have initiated the project. These may be broken down by function or department. Well-defined objectives are clear and measurable.
  • 20. Permission This will indicate who in the client’s organisation is responsible for the supervision of the project. and, if permission needs to be granted – for example to extend the scope of the analysis – who has the authority to do so. Points of contact and the appropriate reporting structure may also be defined.
  • 21. Deliverable A description of the deliverable or end products of the investigation. Usually they fall into making recommendation for: – solving a problem; – improving a process or a system; – making a change; – creating a new system
  • 22. USES OF TR Planning Reference point for the project Resolving conflicts that may arise Thus; Must exist, if none exist, create it and agree with the client
  • 23. Constraints After understanding the TR and the Objective It’s important that all constraints are understood in order to help with planning and to avoid problems Constraints may be set by the customer to limit the options that may be presented as part of the system proposals. They may be expressed in the TR
  • 24. They may be expressed in terms of; – Technology: software or hardware – Environment: skilled or unskilled users, place of use.. – Timescale: delivery time base on customer/gov policy – Budget: cash available for the purchase of hardware or software, limitations on the operation budget – Scope: area under investigation, system boundary Fig 1.1: Constraints on possible solution
  • 25. Other constraints are: . Fig 1.2: Constraints on investigation - help in selecting the right fact-finding approach
  • 26. Getting Ready for Detailed Analysis In order for analysts to be well prepared for the later stages of systems analysis, and to increase their credibility in interviews with client staff and stakeholders more time needs to be spent on research during the planning stage This means: Understanding the TR Reviewing relevant documents – Contract documents – Annual reports – Organisation structures Identify the types of information you will need to collect during your investigation The areas to be investigated
  • 27. Following are examples of topics that the analyst may wish to investigate: Growth – What plans does the organisation have for future growth, – what would be the information requirements to support this growth Functionality. – What are the major areas of the business – the functions – that will be investigated during the system, – and what are the client’s requirements for the functionality of the system? Procedures. – What procedures, standards and guidelines govern the way in which the organisation conducts its business – are they recorded somewhere
  • 28. Volumes. – What are the volumes of data that pass through the system? how many orders are processed by the sales department in a week? How many amendments are made to customer records each month? Fluctuations. – What bottlenecks or hold-ups are there in the system, – Where and when do these occur in the current system? – What steps are taken to deal with these? Information required. – What information is currently required by the business in order to carry out its functions effectively, – what are the sources of this information? – What information, if available, will it benefits the organisation? Environment. – In what type of environment is the business conducted – how does this affect the way in which information is exchanged? Problems. – In the view of users, what are the main problems with the system, – what are the implications of these problems, – how can the problems be overcome?
  • 29. In planning the approach to analysis, an important area to consider is the: – First face-to-face contact with the client.
  • 30. Why Face-to-face Contact To gather requirements To build a good relationship with the client To establish the analyst’s credibility
  • 31. Face-to-face Meeting Ethics In all meetings with users, the following guidelines represent good practice: – Focus on confidentiality, integrity, respect and confidence- building. – Recognise expertise in the users and welcome their input. – Have as a key objective the need to build the client’s confidence. – Keep everybody informed. This includes client contacts and project staff. – Be discreet and diplomatic. – Double-check any information gathered.
  • 32. There are many tasks to complete during systems analysis however there are limited time; Time management is one of the factors to be taken into consideration It should be budgeted for, managed and used
  • 33. To help you manage your time as effectively as possible, here are some guidelines: – List objectives and set priorities. – Make a daily ‘to do’ list – Handle paper only once. – Set and keep deadlines – Ask yourself frequently ‘What’s the best use of my time right now?’ – Always carry a notebook – Do it now (The right time is now..).
  • 34. The Feasibility Study The objectives of a feasibility study are to find out if the project can be done (...is it possible?...is it justified?) and to suggest possible alternative solutions A feasibility study should provide management with enough information to decide: – Whether the project can be done; – Whether the final product will benefit its intended users; – What are the alternatives among which a solution will be chosen (during subsequent phases)? – Is there a preferred alternative? After a feasibility study, management makes a go/no-go decision.
  • 35. Thus, analyst should concentrate on providing answers to four key questions: – How much - The cost of the new system. – What - The objectives of the new system. – When - The delivery timescale. – How - The means and procedures used to produce the new system.
  • 36. What to study Things to be studied during the feasibility study phase: The present organizational system – users, policies, functions, objectives,... Problems with the present system – – inconsistencies, inadequacies in functionality, performance,..., Objectives and other requirements for the new system – What needs to change? Constraints, including non-functional requirements on the system – preliminary pass Possible alternatives – the current system is always one of those Advantages and disadvantages of the alternatives Things to conclude: Feasibility of the project and the preferred alternative.
  • 37. Types of Feasibility Operational – Define the urgency of the problem and the acceptability of any solution; If the system is developed, will it be used? Includes people-oriented and social issues: internal issues, such as manpower problems, labour objections, manager resistance, organizational conflicts and policies; also external issues, including social acceptability, legal aspects and government regulations. Technical – Is the project feasibility within the limits of current technology? Does the technology exist at all? Is it available within given resource constraints (i.e., budget, schedule,...) Economic (Cost/Benefits Analysis) – Is the project possible, given resource constraints? Are the benefits that will accrue from the new system worth the costs? What are the savings that will result from the system, including tangible and intangible ones? What are the development and operational costs? Schedule – Constraints on the project schedule and whether they could be reasonably met.
  • 38. Operational Feasibility: The PIECES Framework The PIECES framework can help in identifying operational problems to be solved, and their urgency: Performance - Does current mode of operation provide adequate throughput and response time? Information - Does current mode provide end users and managers with timely, ‘to the point’, accurate and usefully formatted information? Economy- Does current mode of operation provide cost-effective information services to the business? Could there be a reduction in costs and/or an increase in benefits? Control - Does current mode of operation offer effective controls to protect against fraud and to guarantee accuracy and security of data and information? Efficiency- Does current mode of operation make maximum use of available resources, including people, time, flow of forms,... Services- Does current mode of operation provide reliable service? Is it flexible and expandable?
  • 39. How do end-users and managers feel about the problem (solution)? It's not only important to evaluate whether a system can work but also evaluate whether a system will work. A workable solution might fail because of end user or management resistance. – Does management support the project? – How do the end users feel about their role in the new system? – What end users or managers may resist or not use the system? People tend to resist change. Can this problem be overcome? If so, how? – How will the working environment of the end users change? – Can or will end users and management adapt to the change
  • 40. Technical Feasibility Is the proposed technology or solution practical? Do we currently possess the necessary technology? Do we possess the necessary technical expertise, and is the schedule reasonable? Is relevant technology mature enough to be easily applied to our problem? – Some firms like to use state-of-the-art technology, but most firms prefer to use mature and proven technology.
  • 41. – A mature technology has a larger customer base for obtaining advice concerning problems and improvements. Assuming that required technology is practical, is it available in the information systems shop? If the technology is available, does it have the capacity to handle the solution. If the technology is not available, can it be acquired?
  • 42. Schedule Feasibility We may have the technology, but that doesn't mean we have the skills required to properly apply that technology. True, all information systems professionals can learn new technologies. However, that learning curve will impact the technical feasibility of the project; specifically, it will impact the schedule. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable. If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules. It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning system two months late than to deliver an error-prone, useless information system on time! Missed schedules are bad, but inadequate systems are worse!
  • 43. Economic Feasibility The bottom line in many projects is economic feasibility. During the early phases of the project, economic feasibility analysis amounts to little more than judging whether the possible benefits of solving the problem are worthwhile. As soon as specific requirements and solutions have been identified, the analyst can weigh the costs and benefits of each alternative. This is called a cost-benefit analysis.
  • 44. Cost/Benefit Analysis The purpose of a cost/benefit analysis is to answer questions such as: – Is the project justified (because benefits outweigh costs)? – Can the project be done, within given cost constraints? – What is the minimal cost to attain a certain system? – What is the preferred alternative, among candidate solutions? Examples of things to consider: – Hardware/software selection – How to convince management to develop the new system – Selection among alternative financing arrangements (rent/lease/purchase) Difficulties - discovering and assessing benefits and costs; they – can both be intangible, hidden and/or hard to estimate, it's also – hard to rank multi-criteria alternatives
  • 45. Feasibility study report A report is written after the study The content should include: Fig 1.3: Feasibility study report content
  • 46. Background Terms of reference. Reasons for the study This section will outline the background to the project and the way it relates to the stated objectives of the organisation.
  • 47. The current situation Overview of current situation. Problems and requirements identified.
  • 48. Proposed solution A description of the requirements of a new system along with a number of options explaining how this solution might be implemented. Each option will address: Technical implications – how it meets the requirements, the hardware and software needed. Operational implications – the impact the solution will have on the business in terms of human, organisational and political aspects. Cost implications – both initial (capital) and continuing (operational). There are a number of methods of assessing the costs of solutions. In the feasibility report, the analyst should use the cost assessment method specified by the client.
  • 49. Cost–benefits analysis A comparison of costs and benefits prepared using whatever evaluation technique is favoured by the organisation.
  • 50. Recommendations A brief statement that presents the main points of the previous sections of the report. 3 types of recommendation can be made in a feasibility report: – Advising the client to progress with the full detailed analysis. If this is the case, a plan would also be included for this phase of the project. – Advising the client to review the terms of reference or the scope of the study before proceeding further or making any judgement on feasibility. – Advising the client to scrap the project as it is not feasible; the resources could be better spent elsewhere.
  • 51. Once the feasibility report has been delivered Assuming that the recommendation made by the analyst is to proceed, the detailed systems analysis phase can begin
  • 52. To start the investigation the following needs to be done; – collect information about the current system – record the problems & requirements – building up a picture of the required system Next… Asking Questions & Collecting Data