CHAPTER 5 1

The System Development Process

5.1. SYSTEMS
DEVELOPMENT 2

AND DOCUMENTATION
TECHNIQUES
Data Flow • A data flow diagram (DFD) graphically
describes the flow of data within an
Diagrams organization.
• It is used to document existing systems
and to plan and design new ones.
• There is no ideal way to develop a DFD.

3
Data Flow • A data flow diagram (DFD) is composed
of the following four basic elements:
Diagrams 1 Data sources and destinations
2 Data flows
3 Transformation processes
4 Data stores

4
Data Flow Diagram
Symbols
Data Source and destinations

Data Flows

Transformation Processes

Data Stores
5
 Data Flow
Diagram Symbols
• A data source or data destination symbol on the DFD
represents an organization or individual that sends or
receives data that they system uses or produces.
• A data flow represents the flow of data between
processes, data stores and data sources and
destinations.
• A transformation process represents the
transformations of data.
• A data store is a temporary or permanent repository of
data.
• A data dictionary contains description of all the
elements, stores, and flows in a system. 6
 Data Flow
Diagrams

Data Data flow (B) Process Data flow (D)

source (C)
(A)
Data flow (E)
Data
destination
(J)
7
 Data Flow Diagrams

Data store (H)

Data flow (G)

Data flow (D) Process Data

Data flow (I) destination
(F) (K)

8
 Data Flow
Diagrams
Customer Remittance data
payment (B) (D)
Customer Process
(A) payment
(C)
Deposit (E)

Bank
(J)
9
 Data Flow Diagrams
Accounts
receivable
(H)
(G)
Remittance Receivables
data information
(D) Update (I) Credit
receivables manager
(F) (K)
10
 Data Flow
Diagrams
• Data flow diagrams are subdivided into successively lower levels in order to
provide increasing amounts of detail.
• The highest-level DFD is referred to as a context diagram.
• What is the context diagram for S&S payroll processing?

11
 Data Flow Diagrams

Time
cards
Departments
Payroll
processing
system
Human
resources Employee
data 12
Data Flow
Diagrams
Tax reports and payments Government
agencies

Payroll Employee Employees

paychecks
processing
system Payroll
check Bank

Payroll report Management 13

Data Flow • The context diagram for payroll
processing shows that the payroll
Diagrams processing system...
– receives time cards from different
departments.
– receives employee data from the human
resources department.

14
Data Flow • When these data are processed, the
system produces...
Diagrams – tax reports and payments for
governmental agencies.
– employee paychecks.
– a check to deposit in the payroll account
at the bank.
– management payroll reports.

15
Flowcharts • A flowchart is an analytical technique
used to describe some aspect of an
information system in a clear, concise,
and logical manner.
• Flowcharts use a standard set of
symbols to pictorially describe
transaction processing procedures.

16
Flowchart • Flowcharting symbols can be divided
into the following four categories:
Symbols 1 Input/output symbols
2 Processing symbols
3 Storage symbols
4 Flow and miscellaneous symbols

17
Flowcharti
ng
Symbols:
Symbol Name
Some Input
Document
Output
Symbols Online keying

Display
Input/output;
Journal/ledger
18
 Flowchart Symbols:
Some Processing Symbols

Symbol Name

Manual operations

Computer processing

Auxiliary operation
19
 Flowchart Symbols:
Some Storage Symbols
Symbol Name

Magnetic disk

Magnetic tape
20
 Symbol Name
Document or processing flow
Flowchart On-page connector
Symbols:
Some Flow Off-page connector
and
Miscellaneou
Terminal
s Symbols
21
Decision
 What are • A document flowchart
illustrates the flow of
Document documents and information
Flowcharts between areas of
responsibility within an
? organization.
• A document flowchart is
particularly useful in analyzing
the adequacy of control
procedures.
• Flowcharts that describe and
evaluate internal controls are
often referred to as internal
control flowcharts. 22
 What are • System flowcharts depict the
relationship among the input,
System processing, and output of an AIS.

Flowcharts • A system flowchart begins by

? identifying both the inputs that enter

the system and their origins.
• The input is followed by the processing
portion of the flowchart.

23
 What are Computer System Flowcharts?
• The resulting new information is the output component.
• System flowcharts are an important tool of system analysis, design, and
evaluation.

Input

Storage Process
24

Output
 What are • A program flowchart describes the
specific logic to perform a process
Program shown on a systems flowchart.

Flowcharts • A flow line connects the symbols and

? indicates the sequence of operations.

• The processing symbol represents a
data movement or arithmetic
calculation.

25
 What are
Program
Flowcharts Input data
?
If a condition is met No

Yes
Perform calculation

Update record 26
 What are • The input/output symbol
Program represents either reading of
input or writing of output.
Flowcharts
• The decision symbol
? represents a comparison of
one or more variables and
the transfer of flow to
alternative logic paths.
• All points where the flow
begins or ends are
represented by the terminal
symbol. 27
Flowchart
for
Processing
Start
Enter
sales

Credit
order

Orders
Approved No Reject
for credit? order

Yes
Inventory No Back-
available? order

Yes

Fill order Stop

28
Differences • DFDs emphasize the flow of data and
what is happening in a system, whereas
Between a flowchart emphasizes the flow of

DFDs and documents or records containing data.

Flowcharts • A DFD represents the logical flow of

data, whereas a flowchart represents
the physical flow of data.

29
 Differences Between DFDs and Flowcharts

• Flowcharts are used primarily to document existing systems.

• DFDs, in contrast, are primarily used in the design of new systems and do not
concern themselves with the physical devices used to process, store, and
transform data.
• DFDs make use of only four symbols.
• Flowcharts use many symbols and thus can show more detail.

30
5.2. Phases of System Development

31
 The • What are the five steps in the
systems development life cycle
Systems (SDLC)?

Developmen 1. Systems analysis

t Life 2. Conceptual design

Cycle
3. Physical design
4. Implementation and conversion
5. Operations and maintenance

32
The Players • Who are the people involved in
developing and implementing AIS?
 Management
 Accountants
 Information systems steering
committee
 Project development team
 Systems analysts and programmers
 External players

33
The Players • What are top management’s roles?
– providing support and encouragement
– establishing system goals and objectives
– determine information requirements

34
The Players • What are accountants’ roles?
– determine their information needs
– may be members of the project
development team
– play an active role in designing system
controls

35
The Players • What are the steering committee’s
roles?
– set policies that govern the AIS
– ensures top-management participation
– guidance and control
– facilitates coordination and integration
of IS activities

36
The Players

• What are the project development team’s roles?

– plan each project
– monitor project
– make sure proper consideration is given to the human
element

37
The Players • What are the system analyst’s and
programmer’s roles?
– study existing systems
– design new systems and prepare
specifications
– write computer programs

38
 Planning • Why is planning an important step in
systems development?
Systems – consistency
Developmen – efficiency

t – cutting edge
– lower costs
– adaptability

39
 Planning • What types of systems development
plans are needed?
Systems – project development plan
Developmen – master plan

40
 Planning
Techniques
• Two techniques for scheduling and monitoring
systems development activities are:
1 PERT (program evaluation and review
technique)
• PERT requires that all activities and the precedent and
subsequent relationships among them be identified.
2 Gantt chart
• A bar chart with project activities listed on the left-
hand side and units of time across the top

41
 Planning Techniques:
Gantt Chart

Project Planning Chart

(Sample Gantt Chart)
______________________________________________
Activity Week Starting
______________________________________________
1
______________________________________________
2
______________________________________________
3
______________________________________________
4
______________________________________________
5
______________________________________________
6
______________________________________________
7
______________________________________________ 42
8
______________________________________________
Feasibility • Systems analysis is the first
step in the systems
Analysis development life cycle (SDLC).
• A feasibility study (also called a
business case) is prepared
during systems analysis and
updated as necessary during
the remaining steps in the
SDLC.
• The steering committee uses
the study to decide whether to
terminate a project, proceed
unconditionally, or proceed
conditionally. 43
Feasibility • What five important aspects need to
be considered during a feasibility
Analysis study?
1. Technical feasibility
2. Operational feasibility
3. Legal feasibility
4. Scheduling feasibility
5. Economic feasibility

44
Feasibility • Economic feasibility is the most
frequently analyzed of the five aspects.
Analysis • What is the basic framework for
feasibility analysis?
– capital budgeting model

45
Feasibility • What are some capital budgeting
techniques?
Analysis – payback period
– net present value (NPV)
– internal rate of return (IRR)

46
Behavioral • Individuals involved in systems
development are agents of change who
Aspects of are continually confronted by people’s

Change reaction and resistance to change.

• The best system will fail without the
support of the people it serves.

47
Behavioral • Why do behavioral problems occur?
– personal characteristics and background
Aspects of – manner in which change is introduced

Change – experience with prior changes

– communication
– disruptive nature of the change process
– fear

48
 Behavioral Aspects of Change

• How do people resist AIS

changes?
– aggression
– projection
– avoidance

16-49
Behavioral • How can behavioral problems
Aspects be overcome?

of Change
– meet needs of the users
– keep communication lines
open
– maintain a safe and open
atmosphere
– obtain management support
– allay fears
– solicit user participation
– make sure users understand
the system 50
Behavioral – How can behavioral problems
be overcome? (continued)
Aspects of – provide honest feedback
Change – humanize the system
– describe new challenges and
opportunities
– reexamine performance
evaluation
– test the system’s integrity
– avoid emotionalism
– present the system in the
proper context
– control the users’
expectations
51
– keep the system simple
Systems • When a new or improved system is
needed, a written request for systems
Analysis development is prepared.
• The request describes the current
system’s problems, why the change is
needed, and the proposed system’s
goals and objectives.
• It also describes the anticipated benefits
and costs.

52
Systems • There are five steps in the analysis
phase:
Analysis 1. Initial investigation
2. Systems survey
3. Feasibility study
4. Information needs and systems
requirements
5. Systems analysis report

53
Conceptual • In the conceptual systems
design phase, a
Systems general framework is
Design developed for
implementing user
requirements and solving
problems identified in the
analysis phase.
• What are the three steps
in conceptual design?
1. Evaluate design alternatives.
2. Prepare design
specifications.
3. Prepare conceptual systems
design report. 54
 Conceptual
Systems
Design Systems
analysis

Prepare
Evaluate Prepare
conceptual
design design
systems
alternatives specifications
design report 55
Conceptual
Systems
Design
• Evaluate design alternatives:
• The design team should identify and
evaluate design alternatives using the
following criteria:
1. How well it meets organizational and system
objectives
2. How well it meets users’ needs
3. Whether it is economically feasible
4. Its advantages and disadvantages 56
Conceptual • Prepare design specifications:
Systems • Once a design alternative
Design has been selected, the team
develops the conceptual
design specifications for the
following elements:
1. Output
2. Data storage
3. Input
4. Processing procedures and
operations
57
Conceptual • Prepare conceptual systems
Systems design report:
•
Design At the end of the conceptual
design a conceptual systems
design report is developed
and submitted.
1. To guide physical systems
design activities
2. To communicate how
management and user
information needs will be met
3. To help assess systems’
feasibility
58
 Physical • Physical design translates the broad,
user-oriented AIS requirements of
Systems conceptual design into detailed

Design specifications that are used to code and

test the computer program.

Conceptual Physical
systems design systems design
59
Physical
Systems
Design
Output Program
design design

File and data Procedures

base design design

Input Controls
60
design design
Physical
Systems
Design:
• The objective of output design is to
Output
determine the characteristics of reports,
Design
documents, and screen displays.
• Output fits into one of four categories:
1. Scheduled reports
2. Special-purpose analysis
3. Triggered exception reports
4. Demand reports
61
 Physical • What are some file and database design
considerations?
Systems – medium of storage
Design: File – organization and access

and – processing mode

Database – maintenance

Design
– size and activity level

62
Physical
Systems
•Design:
When evaluating input design, the design team must

Input
identify the different types of data input and optimal input
method.
• Design
What are the two principal types of data input?
1. Forms
2. Computer screens

63
Physical • Program design is one of the
Systems most time-consuming
activities in the entire SDLC.
Design: • Programs should be
Program subdivided into small, well-
Design defined modules to reduce
complexity.
• What is this referred to as?
– structured programming
• Modules should interact with a
control module rather than
with each other. 64
 Physical Systems Design: Procedures Design
• Procedures design should answer the who, what, where, and how questions related
to all AIS activities.
• What should procedures cover?
 input preparation
 transaction processing
 error detection and corrections
 controls
 reconciliation of balances
 database access
 output preparation and distribution
 computer operator instructions

65
 Physical Systems Design: Control Design

What are some control design considerations?

Validity Authorization
Accuracy Security
Numerical Control Availability
Maintainability Integrity
Audit Control 66
Physical •Systems Design Report
At the end of the physical design phase
the team prepares a physical systems
design report.
• This report becomes the basis for
management’s decision whether to
proceed to the implementation phase.

67
 Systems • Systems implementation is the process
of installing hardware and software and
Implementa getting the AIS up and running.

tion

68
 Systems
Implementa
Implementation planning
tion

Develop and Prepare site; Select

test software install and and train
programs test hardware personnel

Complete Test system

documentation
69

Conversion
 Systems
Implementa
tion:
• An implementation plan consists of implementation tasks, expected
completion dates, cost estimates, and the person or persons
Implementa
responsible for each task.
• Planning shouldtion
include adjustments to the company’s organizational

Planning
structure.

70
 Systems Seven steps are followed
Implementati when developing and
on: Develop testing software programs.
and test 1. Determine user needs.
software
Develop a plan.
programs 2.
3. Write program instructions
(code).
4. Test the program.
5. Document the program.
6. Train program users.
7. Install and use the system. 71
 Systems • A PC requires little site preparation.

Implementati • A large system may require extensive

on: changes, such as additional electrical
outlets.
Site • Site preparation should begin well in
Preparation advance of the installation date.

72
 Systems • Employees can be hired from outside

Implementati the company or transferred internally.

on: • Effective AIS training should include

employees’ orientation to new policies
Select and and operations.
train • Training should occur before systems
personnel testing and conversion.

73
 Systems • Three types of documentation must
be prepared for new systems.
Implementa 1. Development documentation
tion: 2. Operations documentation

Complete 3. User documentation

Documentat
ion

74
 Systems • There are three common forms of
testing.
Implementa 1. Walk-through
tion: Test 2. Processing of test transactions

the System 3. Acceptance tests

75
 Systems • There are four conversion
approaches.
Implementa 1. Direct conversion
tion: 2. Parallel conversion

Conversion 3. Phase-in conversion

4. Pilot conversion

76
 Systems Implementation
Direct Conversion Method
Old system
New system

Parallel Conversion Method

Old system New system

77
 Systems
Implementa
tion
Phase-in Conversion Method

Old system
New system

78
 Systems
Implementa
tionConversion Method
Pilot
1 2 3 1 2 3

Old Old Old Old Old New

1 2 3 1 2 3

Old New New New New New

79
 Systems • Data files may need to be modified in
three ways:
Implementa 1. Files may be moved to a different
tion: Data storage

Conversion 2.
3.
Data content may be changed
File format may be changed

80
 Operation • The final step in the SDLC is to operate
and maintain the new system.
and • A postimplementation review should be
Maintenanc conducted on a newly installed system.

Implementation Operation and

and conversion maintenance 81
 Operation
and
What are some factors to consider during the
Maintenanc
postimplementation review?
e
Goals and objectives Controls and security

Satisfaction Errors

Benefits Training

Costs Communications

Reliability Organizational changes

Documentation Accuracy

Timeliness Compatibility
82
5.3 Approaches to System Development

83
Purchase
Software
• Canned software is written by software development companies
and is sold on the open market to a broad range of users with
similar requirements.
• Turnkey systems are a combination of software and hardware sold
as a package. The vendor installs the entire system and user
needs only to “turn the key”.

84
Purchase The Internet has given companies a new
way to acquire software:
Software, Application service providers (ASPs)
continued
host Web-based software on their
computers and deliver the software to
their clients over the Internet.

85
Purchasing • Companies that buy rather than
develop AIS software still go through
Software the systems development life cycle
(SDLC).
and The 1. Systems analysis

SDLC 2.
3.
Conceptual design
Physical design
4. Implementation and conversion
5. Operation and maintenance

86
The Systems
Acquisition
Process
Investigate
software
packages

Will package No Can package No Develop

meet needs? be modified? software
internally
Yes

Send RFP for Yes

Yes
software and
hardware Send RFP for
hardware,
if necessary
Evaluate
proposal Select best
combination 87
Development by In-House IS
• Most often, organizations develop their
Department
own custom software, because canned
software that fit their specific needs is
not available.
• Developing custom software is difficult
and error-prone.
• It also consumes a great deal of time
and resources.

88
 Custom When contracting with an outside
organization, a company should maintain
Software control over the development process.
Some guidelines:
Development • Carefully select a developer
by an • Sign a contract

Outside • Plan and monitor each step

•
Company •
Maintain effective communication
Control all costs

89
End-User- • End-user computing (EUC) is
the hands-on development,
Developed use, and control of computer-
Software based information systems by
users.
• With the advent of inexpensive
PCs and powerful, inexpensive
software, users began
developing their own systems
to create and store data,
access and download company
data, and share data and
computer resources in
networks. 90
End-User- • Examples of end user
development uses:
Developed • Retrieving information from
Software company databases to produce
simple reports or to answer
one-time queries
• Performing “what if” sensitivity
or statistical analyses
• Developing applications using
prewritten software
(spreadsheet or database
system)
• Preparing schedules and lists,
such as depreciation schedules,
accounts receivable aging, and
loan amortizations
91
Benefits of
End-User-
Developed
Benefits of End-User Computing
Software
User creation, control, and implementation
Systems that meet user needs
Timeliness
Freeing up IS resources
Versatility and ease of use

92
Risks of End-User Computing
Logic and development errors
Inadequately tested applications
Riskssystems
Inefficient of
End-User-
Poorly controlled and documented systems
Developed
Systems incompatibility
Software
Duplication of systems
Increased costs 93
 Managing • Organizations use several different
approaches to mange and control end-
and user computing. For example, a help

Controlling desk can encourage, support,

coordinate and control end-user
End-User activities.

Computing

94
 Functions
of a Help
Desk
What are some duties of the help desk?
– Providing hot-line assistance to help resolve problems

– Serving as a clearinghouse for information, coordination, and assistance

training end users, and providing corresponding technical maintenance and
support

– Evaluating new end-user hardware and software products

– Assisting with application development

– Developing and implementing standards 95

– Controlling corporate data

 Outsource • What is outsourcing?

the System
– It is hiring an outside company to handle
all or part of an organization’s data
processing activities.
• In a mainframe outsourcing agreement,
the outsourcers buy their client’s
computers and hire all or most of the
client’s employees.

96
 Outsource • In a client/server or PC
the System outsourcing agreement,
an organization
outsources a particular
service, a segment of its
business, a particular
function, or PC support.

97
 Outsource
the System
Benefits of Outsourcing
A business and information solution
Asset utilization
Access to greater expertise and
more advanced technology
Lower costs
Improved development time
Elimination of peaks and valleys usage
Facilitation of downsizing
98
 Outsource the System

Risks of Outsourcing
Inflexibility
Loss of control of system and/or data
Reduced competitive advantage
Locked-in system
Unfulfilled goals
Possibility of poor service
99
 Business
Processes
Reengineering
• What is business process reengineering (BPR)?

• It is the thorough analysis and complete redesign of

business process and information systems to achieve
performance improvements.

• It is a process that challenges traditional organizational

10
values and cultures associated with underperformance. 0
 Business • BPR reduces a company to its essential
business processes and focuses on why
Processes they are done rather than on the details
of how they are done.
Reengineeri • It completely reshapes organizational

ng
work practices and information flows to
take advantage of technological
advancements.

10
1
Challenges Faced by Reengineering Efforts

What are some of the obstacles to reengineering

efforts?

Tradition Resistance

Time requirements Risk

Lack of management support Skepticism

Retraining Controls 10
2
Prototyping • What is prototyping?
– an approach to systems design in which
a simplified working model of a system
is developed.
• A prototype, or “first draft,” is quickly
and inexpensively built and provided to
users for testing.

10
3
Prototyping • What four steps are involved
in developing a prototype?
1. Identify basic systems
requirements.
2. Develop an initial prototype that
meets the agreed-on
requirements.
3. Users identify changes,
developers make changes, and
the system is turned over to the
user.
4. Use the system approved by the
users. 10
4
 Benefits of Prototyping

Advantages of Prototyping
Better definition of user needs
Higher user involvement and satisfaction
Faster development time
Fewer errors
More opportunity for changes
Less costly
10
5
Disadvantages of Prototyping
Significant user time
Less efficient use of system resources
Incomplete systems development
Disadvanta
Inadequately tested and
ges of
documented systems
Prototyping
Negative behavioral reactions
Unending development 10
6
 Computer-
Aided
• CASESoftware
is an integrated package of computer-based
tools that automate important aspects of the
Engineerin
software development process.
• g (CASE)
CASE tools are used to plan, analyze, design,
program, and maintain an information system.
• They are also used to enhance the efforts of
managers, users, and programmers in
understanding information needs.

10
7
Computer- • CASE tools do not replace
Aided skilled designers; instead they
provide a host of self-
Software integrated tools that give
Engineerin developers effective support
g (CASE) for all SDLC phases.
• CASE software typically has
tools for strategic planning,
project and system
management, database
design, screen and report
layout, and automatic code
10
generation. 8
Computer-Aided Software Engineering (CASE)

Advantages of CASE Technology

Improved productivity
Improved program quality
Cost savings
Improved control procedures
Simplified documentation
Disadvantages of CASE Technology
Incompatibility
Cost 10
9

Unmet expectations
End of Chapter 5

11
0