SYSTEM ANALYSIS AND DESIGN

BBAN 602
UNIT 1
SYSTEM

A system is a set of interacting elements responding to inputs to produce output

according to plan to achieve a specific objective.

Characteristics

1. Specific purpose: every system has a purpose or objective.

2. Components: every system is a collection of subsystems or components and

each component which collectively functions to achieve the objective of the
system.
3. Organization: each subsystem in a system is defined in a specific order or
in an organized manner.
4. Interdependence: it means that component or subsystem depend on one
another. They are coordinated and linked together according to the plan.
5. Integration: it is concerned with how a system is tied together. Successful
integration will produce a better result as a whole rather than if each
component works separately.

Types of system

1. Abstract and physical systems An abstract or conceptual system is an

orderly arrangement of interdependent ideas or constructs, which may or
may not have any counterpart in the real world.

On the other hand, physical systems are generally concrete operational

systems made up of people, materials, machines, energy and other physical
things; Physical systems are more than conceptual constructs.

2. Deterministic and Probabilistic Systems

 A deterministic system is one in which the occurrence of all events is known
with certainty. A probabilistic system is one in which the occurrence of
events cannot be perfectly predicted. Though the behavior of such a system
can be described in terms of probability, a certain degree of error is always
attached to the prediction of the behavior of the system.

3. Open and Closed Systems

An open system is one that interacts with its environment and thus exchanges
information, material, or energy with the environment, including random and
undefined inputs. Open systems are adaptive in nature, as they tend to react with
the environment in such a way, so as to favor their continued existence. Such
systems are self organizing, in the sense that they change their organization in
response to changing conditions.

A closed system is one, which does not interact with its environment. Such systems
in business world are rare, but relatively closed systems are common. Thus, the
systems that are relatively isolated from the environment but not completely closed
are termed closed system.

SYSTEM DEVELOPMENT LIFE CYCLE

The system-development life cycle enables users to transform a newly-developed

project into an operational one.

The System Development Life Cycle, "SDLC" for short, is a multistep, iterative
process, structured in a methodical way. This process is used to model or provide a
framework for technical and non-technical activities to deliver a quality system
which meets or exceeds a businesss expectations or manage decision-making
progression.

Traditionally, the systems-development life cycle consisted of five stages. That has
now increased to seven phases. Increasing the number of steps helped systems
analysts to define clearer actions to achieve specific goals.
Similar to a project life cycle (PLC), the SDLC uses a systems approach to
describe a process. It is often used and followed when there is an IT or IS project
under development.

The SDLC highlights different stages (phrases or steps) of the development

process. The life cycle approach is used so users can see and understand what
activities are involved within a given step. It is also used to let them know that at
any time, steps can be repeated or a previous step can be reworked when needing
to modify or improve the system.

Following are the seven phases of the SDLC:

1. Planning

2. , Systems Analysis

3. Systems Design

4. Development

5. Testing

6. Implementation

7. Maintenance

1. Planning

This is the first phase in the systems development process. It identifies whether or
not there is the need for a new system to achieve a businesss strategic objectives.
This is a preliminary plan (or a feasibility study) for a companys business
initiative to acquire the resources to build on an infrastructure to modify or
improve a service. The company might be trying to meet or exceed expectations
for their employees, customers and stakeholders too. The purpose of this step is to
find out the scope of the problem and determine solutions. Resources, costs, time,
benefits and other items should be considered at this stage.

2. Systems Analysis and Requirements

The second phase is where businesses will work on the source of their problem or
the need for a change. In the event of a problem, possible solutions are submitted
and analyzed to identify the best fit for the ultimate goal(s) of the project. This is
where teams consider the functional requirements of the project or solution. It is
also where system analysis takes placeor analyzing the needs of the end users to
ensure the new system can meet their expectations. Systems analysis is vital in
determining what a business"s needs are, as well as how they can be met, who will
be responsible for individual pieces of the project, and what sort of timeline should
be expected.

There are several tools businesses can use that are specific to the second phase.
They include:

CASE (Computer Aided Systems/Software Engineering)

Requirements gathering

Structured analysis

3. Systems Design

The third phase describes, in detail, the necessary specifications, features and
operations that will satisfy the functional requirements of the proposed system
which will be in place. This is the step for end users to discuss and determine their
specific business information needs for the proposed system. It"s during this phase
that they will consider the essential components (hardware and/or software)
structure (networking capabilities), processing and procedures for the system to
accomplish its objectives.

4. Development

The fourth phase is when the real work beginsin particular, when a programmer,
network engineer and/or database developer are brought on to do the major work
on the project. This work includes using a flow chart to ensure that the process of
the system is properly organized. The development phase marks the end of the
initial section of the process. Additionally, this phase signifies the start of
production. The development stage is also characterized by instillation and change.
Focusing on training can be a huge benefit during this phase.

5. Integration and Testing

The fifth phase involves systems integration and system testing (of programs and
procedures)normally carried out by a Quality Assurance (QA) professionalto
determine if the proposed design meets the initial set of business goals. Testing
may be repeated, specifically to check for errors, bugs and interoperability. This
testing will be performed until the end user finds it acceptable. Another part of this
phase is verification and validation, both of which will help ensure the program"s
successful completion.

6. Implementation

The sixth phase is when the majority of the code for the program is written.
Additionally, this phase involves the actual installation of the newly-developed
system. This step puts the project into production by moving the data and
components from the old system and placing them in the new system via a direct
cutover. While this can be a risky (and complicated) move, the cutover typically
happens during off-peak hours, thus minimizing the risk. Both system analysts and
end-users should now see the realization of the project that has implemented
changes.

7. Operations and Maintenance

The seventh and final phase involves maintenance and regular required updates.
This step is when end users can fine-tune the system, if they wish, to boost
performance, add new capabilities or meet additional user requirements.

Importance of the SDLC

If a business determines a change is needed during any phase of the SDLC, the
company might have to proceed through all the above life cycle phases again. The
life cycle approach of any project is a time-consuming process. Even though some
steps are more difficult than others, none are to be overlooked. An oversight could
prevent the entire system from functioning as planned.
ROLE OF SYSTEM ANALYST

A systems analyst is an information technology (IT) professional who specializes

in analyzing, designing and implementing information systems. Systems analysts
assess the suitability of information systems in terms of their intended outcomes
and liaise with end users, software vendors and programmers in order to achieve
these outcomes. A systems analyst is a person who uses analysis and design
techniques to solve business problems using information technology. Systems
analysts may serve as change agents who identify the organizational improvements
needed, design systems to implement those changes, and train and motivate others
to use the systems.

Although they may be familiar with a variety of programming languages, operating

systems, and computer hardware platforms, they do not normally involve
themselves in the actual hardware or software development. They may be
responsible for developing cost analysis, design considerations, staff impact
amelioration, and implementation timelines.

A systems analyst is typically confined to an assigned or given system and will

often work in conjunction with a business analyst. These roles, although having
some overlap, are not the same. A business analyst will evaluate the business need
and identify the appropriate solution and, to some degree, design a solution without
diving too deep into its technical components, relying instead on a systems analyst
to do so. A systems analyst will often evaluate code, review scripting and, possibly,
even modify such to some extent.

Some dedicated professionals possess practical knowledge in both areas (business

and systems analysis) and manage to successfully combine both of these
occupations, effectively blending the line between business analyst and systems
analyst.

A systems analyst may:

Identify, understand and plan for organizational and human impacts of

planned systems, and ensure that new technical requirements are properly
integrated with existing processes and skill sets.
 Plan a system flow from the ground up.

Interact with internal users and customers to learn and document

requirements that are then used to produce business requirements
documents.

Write technical requirements from a critical phase.

Interact with software architect to understand software limitations.

Help programmers during system development, e.g. provide use cases,

flowcharts, UML and BPMN diagrams.

Document requirements or contribute to user manuals.

Whenever a development process is conducted, the system analyst is

responsible for designing components and providing that information to the
developer.

QUALITIES OF SYSTEM ANALYST

The system analyst is a person with unique skills common sense, a structured
framework and a disciplined approach to solving problems are a part of the
analysis. Therefore the analyst requires a combination of skills, experience,
personality and common sense. The fact that a system is designed for a specific
user also means that the analyst must have interpersonal skills. The different
interpersonal skills that a system analyst should have are as follows

1. Communication Skills System analyst should have the ability to articulate

and speak and knack of working with all levels of managerial positions of the
organization.

2. Understanding System analyst should have the ability to identify problems

and assess their solution, grasping of company goals and objectives, show
sensitivity to the impact of the system on people at work and understanding their
problems,

3. Teaching & selling ideas System analyst should have the skill to educate
other people in the use of computer systems and selling ideas and promoting
innovations in problem solving using computers.

The various TECHNICAL SKILLS that a system analyst should have are as
follows

1. Creativity The analyst should be creative to help the users to model ideas into
real plans and developing candidate systems to match user requirements.

2. Problem Solving & project management System analyst should have the
skill of problem solving, developing alternative solutions, scheduling, overcome
constraints, coordinating team efforts and managing costs and accounts.

3. Dynamic interface System analyst should be a perfect blend of both technical

and non-technical skills in functional specifications and general design. He should
also have a questioning attitude and inquiring mind.

4. Thorough knowledge of computers System analyst should have the

knowledge of basics of computers and business functions.

A graph showing the involvement of interpersonal and technical skills during the
system development phase for a good system analyst is shown below
Now, in addition to these personal qualifications, the system analyst should have
proper academic qualifications in system analysis and design or other computer
oriented similar degrees.

CASE TOOLS FOR SYSTEM ANALYST

CASE stands for Computer Aided Software Engineering. It means, development

and maintenance of software projects with help of various automated software
tools.

CASE tools are set of software application programs, which are used to automate
SDLC activities. CASE tools are used by software project managers, analysts and
engineers to develop software system.

There are number of CASE tools available to simplify various stages of Software
Development Life Cycle such as Analysis tools, Design tools, Project management
tools, Database Management tools, Documentation tools are to name a few.

Use of CASE tools accelerates the development of project to produce desired result
and helps to uncover flaws before moving ahead with next stage in software
development.

Components of CASE Tools

CASE tools can be broadly divided into the following parts based on their use at a
particular SDLC stage:

Central Repository - CASE tools require a central repository, which can serve as
a source of common, integrated and consistent information. Central repository is a
central place of storage where product specifications, requirement documents,
related reports and diagrams, other useful information regarding management is
stored. Central repository also serves as data dictionary.

Upper Case Tools - Upper CASE tools are used in planning, analysis and
design stages of SDLC.
Lower Case Tools - Lower CASE tools are used in implementation, testing
and maintenance.
Integrated Case Tools - Integrated CASE tools are helpful in all the stages
of SDLC, from Requirement gathering to Testing and documentation.

CASE tools can be grouped together if they have similar functionality, process
activities and capability of getting integrated with other tools.

Scope of Case Tools

The scope of CASE tools goes throughout the SDLC.

Case Tools Types

Now we briefly go through various CASE tools

1. Diagram tools

These tools are used to represent system components, data and control flow among
various software components and system structure in a graphical form. For
example, Flow Chart Maker tool for creating state-of-the-art flowcharts.

2. Process Modeling Tools

Process modeling is method to create software process model, which is used to

develop the software. Process modeling tools help the managers to choose a
process model or modify it as per the requirement of software product. For
example, EPF Composer

3. Project Management Tools

These tools are used for project planning, cost and effort estimation, project
scheduling and resource planning. Managers have to strictly comply project
execution with every mentioned step in software project management. Project
management tools help in storing and sharing project information in real-time
throughout the organization. For example, Creative Pro Office, Trac Project,
Basecamp.

4. Documentation Tools

Documentation in a software project starts prior to the software process, goes

throughout all phases of SDLC and after the completion of the project.
Documentation tools generate documents for technical users and end users.
Technical users are mostly in-house professionals of the development team who
refer to system manual, reference manual, training manual, installation manuals
etc. The end user documents describe the functioning and how-to of the system
such as user manual. For example, Doxygen, DrExplain, Adobe RoboHelp for
documentation.

5. Analysis Tools

These tools help to gather requirements, automatically check for any inconsistency,
inaccuracy in the diagrams, data redundancies or erroneous omissions. For
example, Accept 360, Accompa, CaseComplete for requirement analysis, Visible
Analyst for total analysis.

6. Design Tools

These tools help software designers to design the block structure of the software,
which may further be broken down in smaller modules using refinement
techniques. These tools provides detailing of each module and interconnections
among modules. For example, Animated Software Design

7. Configuration Management Tools

An instance of software is released under one version. Configuration Management

tools deal with

Version and revision management

Baseline configuration management
Change control management

CASE tools help in this by automatic tracking, version management and release
management. For example, Fossil, Git, Accu REV.

8. Change Control Tools

These tools are considered as a part of configuration management tools. They deal
with changes made to the software after its baseline is fixed or when the software
is first released. CASE tools automate change tracking, file management, code
management and more. It also helps in enforcing change policy of the organization.

9. Programming Tools

These tools consist of programming environments like IDE (Integrated

Development Environment), in-built modules library and simulation tools. These
tools provide comprehensive aid in building software product and include features
for simulation and testing. For example, Cscope to search code in C, Eclipse.

10.Prototyping Tools

Software prototype is simulated version of the intended software product.

Prototype provides initial look and feel of the product and simulates few aspect of
actual product.

Prototyping CASE tools essentially come with graphical libraries. They can create
hardware independent user interfaces and design. These tools help us to build rapid
prototypes based on existing information. In addition, they provide simulation of
software prototype. For example, Serena prototype composer, Mockup Builder.

11.Web Development Tools

These tools assist in designing web pages with all allied elements like forms, text,
script, graphic and so on. Web tools also provide live preview of what is being
developed and how will it look after completion. For example, Fontello, Adobe
Edge Inspect, Foundation 3, Brackets.

12.Quality Assurance Tools

Quality assurance in a software organization is monitoring the engineering process

and methods adopted to develop the software product in order to ensure
conformance of quality as per organization standards. QA tools consist of
configuration and change control tools and software testing tools. For example,
SoapTest, AppsWatch, JMeter.

13.Maintenance Tools

Software maintenance includes modifications in the software product after it is

delivered. Automatic logging and error reporting techniques, automatic error ticket
generation and root cause Analysis are few CASE tools, which help software
organization in maintenance phase of SDLC. For example, Bugzilla for defect
tracking, HP Quality Center.

PROTOTYPE MODEL IN SYSTEM ANALYSIS AND DESIGN

The basic idea in Prototype model is that instead of freezing the requirements
before a design or coding can proceed, a throwaway prototype is built to
understand the requirements. This prototype is developed based on the currently
known requirements. Prototype model is a software development model. By
using this prototype, the client can get an actual feel of the system, since the
interactions with prototype can enable the client to better understand the
requirements of the desired system. Prototyping is an attractive idea for
complicated and large systems for which there is no manual process or existing
system to help determining the requirements.

The prototype are usually not complete systems and many of the details are not
built in the prototype. The goal is to provide a system with overall functionality.
Diagram of Prototype model:

Advantages of Prototype model:

Users are actively involved in the development

Since in this methodology a working model of the system is provided, the
users get a better understanding of the system being developed.
Errors can be detected much earlier.
Quicker user feedback is available leading to better solutions.
Missing functionality can be identified easily
Confusing or difficult functions can be identified
Requirements validation, Quick implementation of, incomplete, but
functional, application.

Disadvantages of Prototype model:

Leads to implementing and then repairing way of building systems.

Practically, this methodology may increase the complexity of the system
as scope of the system may expand beyond original plans.
 Incomplete application may cause application not to be used as the full
system was designed
Incomplete or inadequate problem analysis.

When to use Prototype model:

Prototype model should be used when the desired system needs to have a
lot of interaction with the end users.
Typically, online systems, web interfaces have a very high amount of
interaction with end users, are best suited for Prototype model. It might
take a while for a system to be built that allows ease of use and needs
minimal training for the end user.
Prototyping ensures that the end users constantly work with the system
and provide a feedback which is incorporated in the prototype to result in
a useable system. They are excellent for designing good human computer
interface systems.

PROJECT SELECTION

One of the biggest decisions that any organization would have to make is related to
the projects they would undertake. Once a proposal has been received, there are
numerous factors that need to be considered before an organization decides to take
it up.

The most viable option needs to be chosen, keeping in mind the goals and
requirements of the organization. How is it then that you decide whether a project
is viable? How do you decide if the project at hand is worth approving? This is
where project selection methods come in use.

Choosing a project using the right method is therefore of utmost importance. This
is what will ultimately define the way the project is to be carried out.
But the question then arises as to how you would go about finding the right
methodology for your particular organization. At this instance, you would need
careful guidance in the project selection criteria, as a small mistake could be
detrimental to your project as a whole, and in the long run, the organization as
well.

Selection Methods

There are various project selection methods practiced by the modern business
organizations. These methods have different features and characteristics.
Therefore, each selection method is best for different organizations.

Although there are many differences between these project selection methods,
usually the underlying concepts and principles are the same.

Following is an illustration of two of such methods (Benefit Measurement and

Constrained Optimization methods):

Project Selection Methods

As the value of one project would need to be compared against the other projects,
you could use the benefit measurement methods. This could include various
techniques, of which the following are the most common:
You and your team could come up with certain criteria that you want your ideal
project objectives to meet. You could then give each project scores based on how
they rate in each of these criteria and then choose the project with the highest
score.

When it comes to the Discounted Cash flow method, the future value of a project is
ascertained by considering the present value and the interest earned on the money.
The higher the present value of the project, the better it would be for your
organization.

The rate of return received from the money is what is known as the IRR. Here
again, you need to be looking for a high rate of return from the project.

The mathematical approach is commonly used for larger projects. The constrained
optimization methods require several calculations in order to decide on whether or
not a project should be rejected.

Cost-benefit analysis is used by several organizations to assist them to make their

selections. Going by this method, you would have to consider all the positive
aspects of the project which are the benefits and then deduct the negative aspects
(or the costs) from the benefits. Based on the results you receive for different
projects, you could choose which option would be the most viable and financially
rewarding.

These benefits and costs need to be carefully considered and quantified in order to
arrive at a proper conclusion. Questions that you may want to consider asking in
the selection process are:

Would this decision help me to increase organizational value in the long run?
How long will the equipment last for?
Would I be able to cut down on costs as I go along?

In addition to these methods, you could also consider choosing based on

opportunity cost - When choosing any project, you would need to keep in mind the
profits that you would make if you decide to go ahead with the project.
Profit optimization is therefore the ultimate goal. You need to consider the
difference between the profits of the project you are primarily interested in and the
next best alternative.

Implementation of the Chosen Method

The methods mentioned above can be carried out in various combinations. It is

best that you try out different methods, as in this way you would be able to make
the best decision for your organization considering a wide range of factors rather
than concentrating on just a few. Careful consideration would therefore need to be
given to each project.

Conclusion

In conclusion, you would need to remember that these methods are time-
consuming, but are absolutely essential for efficient business planning.

It is always best to have a good plan from the inception, with a list of criteria to be
considered and goals to be achieved. This will guide you through the entire
selection process and will also ensure that you do make the right choice.

TESTING PROJECT FEASIBILITY

As the name implies, a feasibility study is used to determine the viability of an

idea. The objective of such a study is to ensure a project is legally and technically
feasible and economically justifiable. It tells us whether a project is worth the
investment.

Feasibility studies are useful to businesses in many ways. Some of the reasons
organizations conduct feasibility studies are as follows:

Not every project is doable.

Not every project should be taken up. This will engage otherwise useful
resources and block their use on other tasks.
Not every project makes effective use of resources of the organisation.
But what is a Feasibility Study?

In simple terms, a feasibility study involves taking a judgment call on whether a

project is doable. The two criteria to judge feasibility are cost required and value to
be delivered. A well-designed study should offer a historical background of the
business or project, a description of the product or service, accounting statements,
details of operations and management, marketing research and policies, financial
data, legal requirements and tax obligations. Generally, such studies precede
technical development and project implementation.

A feasibility study evaluates the project's potential for success; therefore, perceived
objectivity is an important factor in the credibility of the study for potential
investors and lending institutions.

Five Areas of Project Feasibility:

1. Technical Feasibility - assessment is centered on the technical resources

available to the organization. It helps organizations asess if the technical
resources meet capacity and whether the technical team is capable of
converting the ideas into working systems. Technical feasibility also
involves evaluation of the hardware and the software requirements of the
proposed system.
2. Economic Feasibility - helps organizations assess the viability, cost, and
benefits associated with projects before financial resources are allocated. It
also serves as an independent project assessment, and enhances project
credibility, as a result. It helps decision-makers determine the positive
economic benefits to the organization that the proposed system will provide,
and helps quantify them. This assessment typically involves a cost/ benefits
analysis of the project.
3. Legal Feasibility - investigates if the proposed system conflicts with legal
requirements like data protection acts or social media laws.
4. Operational Feasibility - this involves undertaking a study to analyze and
determine whether your business needs can be fulfilled by using the
proposed solution. It also measures how well the proposed system solves
 problems and takes advantage of the opportunities identified during scope
definition. Operational feasibility studies also analyze how the project plan
satisfies the requirements identified in the requirements analysis phase of
system development. To ensure success, desired operational outcomes must
inform and guide design and development. These include such design-
dependent parameters such as reliability, maintainability, supportability,
usability, disposability, sustainability, affordability, and others.
5. Scheduling Feasibility is the most important for project success. A project
will fail if not completed on time. In scheduling feasibility, we estimate how
much time the system will take to complete, and with our technical skills we
need to estimate the period to complete the project using various methods of
estimation.

Benefits of Conducting a Feasibility Study

Conducting a feasibility study is always beneficial to the project as it gives you and
other stakeholders a clear picture of your idea. Below are the key benefits of
conducting a feasibility study:

Gives project teams more focus and provides an alternative outline.

Narrows the business alternatives.
Identifies a valid reason to undertake the project.
Enhances the success rate by evaluating multiple parameters.
Aids decision-making on the project.

Apart from the approaches to feasibility study listed above, some projects also
require for other constraints to be analyzed -

Internal Project Constraints: Technical, Technology, Budget, Resource, etc.

Internal Corporate Constraints: Financial, Marketing, Export, etc.
External Constraints: Logistics, Environment, Laws and Regulations, etc.

STEPS IN FEASIBILITY ANALYSIS

Feasibility analysis involves eight steps:

1. Form a project team and appoint a project leader

 The first step involves forming a project team. The team consists of analysts
and user staff. In many cases, an outside consultant and an information
specialist join the team until the job is completed.
Projects are planned to occupy a special time, ranging from several weeks to
months. The senior systems analyst is generally appointed as project leader.
The appointment is temporary, lasting as long as the project. Regular
meetings take place to keep up the momentum and accomplish the mission
selection of the best candidate system. A record is kept of the progress made
in each meeting.

2. Prepare system flowcharts

The next step in feasibility study is to prepare generalized system flowcharts

for the system. Information oriented charts and data flow diagrams prepared
in the initial investigation are reviewed at this time. The chart brings up the
importance of inputs; outputs and data flow among key points in the existing
system.

3. Enumerate potential candidate systems.

This step identifies the candidate systems that are capable of producing the
outputs included in the generalized flowcharts. This requires a
transformation from logical to physical system models. Another aspect of
this step is consideration of the hardware that can handle the total system
requirements.

4. Describe and identify characteristics of candidate system.

In this step, the analysis is mainly based on what each candidate system can
and cannot do. For determining this, technical knowledge and expertise in
the hardware/software area are critical.
5. Determine and evaluate performance and cost effectiveness of each
candidate system.

Here the analyst has to determine and evaluate the performance and cost of
the candidate system. Evaluation for both design and implementation is
 performed here. It includes user training, updating the physical facilities and
documenting etc.

6. Weight system performance and cost data

According to the performance and cost of the candidate system, some weight
is given to each alternative of the system. Then the candidate system with
the highest total score is selected.

The procedure for weighting candidate system is

1. Assign a weighting factor to each evaluation criterion based on the
criterions effect on the success of the system.
2. Assign a quantitative rating to each criterions qualitative rating.
3. Multiply the weight assigned to each category by the relative rating to
determine the score.
4. Sum the score column for each candidate system.

7. Select the best candidate system.

The system with the highest total score is judged as the best system. This
assumes the weighting factors are fair and the rating of each evaluation
criterion is accurate.

8. Feasibility report

After feasibility study, a document called feasibility report is prepared and is

directed to the management. The report is a formal document for
management use; it should be brief, and sufficiently nontechnical to be
understandable.

FEASIBILITY REPORT

The report contains the following sections.

1. Cover letter-It represents the report and briefly indicates to management

the nature, general findings and recommendations to be considered.
 2. Table of contents- specifies the location of the various parts of the
reports.

3. Overview- is a narrative explanation of the purpose and scope of the

project, the reason for undertaking the feasibility study and the
departments involved or affected by the candidate system.

4. Detailed findings- Outline the methods used in the present system. The
Systems effectiveness and efficiency as well as operating costs are
emphasized. This section also provides a description of the objectives and
general procedures of the candidate system.

5. Economic justification- details point by point cost comparisons and

preliminary cost estimates for the development and operation of the
candidate system.

6. Recommendations and conclusions- suggest to management the most

beneficial and cost effective system. They are written only as a
recommendation, not a command. Following the recommendations, any
conclusions from the study may be included.

7. Appendixes -document all memos and data compiled during the

investigation. They are placed at the end of the report for reference.

ORAL PRESENTATION

It is the second method for presenting the information for management use. The
following general outline is suggested for oral presentation

1. Introduction
Self-introduction by the analyst
A brief introduction of the topic
A brief description of the existing system.
2. Body of presentation
Describe existing system
Describe proposed system
Summarize implementation plan and schedule
 Review human resources requirements to install the system.
3. Conclusion
Summarize objectives and recommendations
Summarize benefits and savings
4. Discussion period
Question answer session.

COST BENEFIT ANALYSIS

From the analysis, system design requirements are identified and alternative
systems are evaluated. The analysis of the costs and benefits of each alternative
guides the selection process. Therefore, a knowledge of cost and benefit categories
and their evaluation methods is important. Costs/Benefits analysis gives a picture
of various costs, benefits and rules associated with each alternative system.

Cost fall in two categories:

Costs associated with developing the system: Costs which are

associated with developing the system, can be estimated from the
outset of a project and should be reviewed at the end of each phase of
the project.
Costs associated with operating system: Costs which are associated
with operating a system, can be estimated only once specific
computer-based solutions have been defined (during the selection
phase or later).

Cost and Benefit Categories

In developing cost estimates for a system, we consider several cost elements such
as

Facility Costs: These are expenses incurred in the preparation of the

physical site where the application or the computers will be in operation.
Hardware: Costs related to the actual purchase or lease of the computer and
peripherals (e.g., printer, disk drives, and tape unit).
 Supply Costs: These are variable costs that increase with increased use of
paper, ribbons, and disks. They should be estimated and included in the
overall cost of the system. This includes the equipment costs also.
Training Costs: If the computer personnel or end-users have to .be trained,
the training courses may be charged out on a flat fee per site, a student fee,
or an hourly fee.
Operating Costs: It includes all costs associated with the day-to-day
operation of the system. The amount depends on the number of shifts, the
nature of the applications, and the caliber of the operating staff.
Supply Usage Cost: Computer time will be used for one or more of the
following activities: programming, testing, conversion, word processing,
maintaining a project dictionary, prototyping, loading new data files etc.
Personnel Costs: It includes EDP staff salaries and benefits (health
insurance, vacation time, sick pay, etc.) as well as pay for those involved in
developing the system. The salaries of systems analysts, programmers,
consultants, data entry personnel, computer operator, secretaries, and the like
who work on the project make up the personnel costs.

Benefits

The two major benefits are:

Improving performance: The performance category emphasizes

improvement in the accuracy of or access to information and easier access to
the system by authorized
Minimizing the cost of processing: Minimizing costs through an efficient
system-error control or reduction of staff is a benefit that should be
measured and included in Cost Benefit Analysis.

Procedure for Cost/Benefit Determination

Costs are incurred throughout its Life cycle. Benefits are realized in the form of
reduced operating costs, improved corporate image, staff efficiency or revenues.
Cost/Benefit analysis is a procedure that gives a picture of the various costs,
benefits and rules associated with a system. The determination of costs and
benefits entails the following steps:

Identify the costs and benefits overtraining to a given project.

Categorize the various costs and benefits for analysis.
Select a method of analysis.
Interpret the results of the analysis.
Take action.

Cost and Benefit Identification

Some costs and benefits are easily identified, e.g., direct costs, i.e., price of hard
disk. Direct benefits often relate one-to-one to direct costs, e.g., savings from
reducing costs.

Another category of cost and benefit that is not easily discernable is opportunity
cost/benefit. A cost that measures the opportunity which is cost or sacrificed, when
choice of one course of action requires that a on alternative choice of action be
given up. It is the benefit foregone by not choosing the next best alternative in a
given decision making situation.

When one course of action is taken, the other possible course is left out. As a
result, the benefits that would accrue are given up. To the extent the benefits
forgone can be quantified they represent the opportunity costs. Opportunity costs
are hypothetical costs and therefore they do not enter accounting records. They are
relevant for decision-making.

For example, suppose the company owns a building which can be used in the
business or rented out. If the company chooses to use the building for business
purposes, the rent forgone by not letting it out is the opportunity cost of using the
building for business purposes.

This cost loses its importance or significance once decisions are mad. During
decision making process, these costs provide a comparable base to evaluate
alternatives.
Classification of Costs/Benefits

Next step in Cost/benefit determination is to categorize costs and benefits. They

may be tangible or intangible, direct or indirect, fixed or variable.

1. Direct or Indirect Costs and benefits

Direct Costs: Are those which can be directly identified with a product, process or
department. All those costs incurred in producing a product or offering a service
which can be directly identified with or traced to that product or service are
called of direct costs.

Direct costs are those with which can be directly associated in a project. They are
applied directly to the operation, e.g., cost of sugarcane in the manufacture of
sugar, cost of timber hi manufacture of furniture, salaries of product manager.

Indirect Cost: Those costs which cannot be easily identified with or traced to a
product or service, are called indirect costs, or they may also be called as
Overhead costs. e.g., depreciation of machinery, Cost of Lubricants used for
smooth running of machines, wages paid to all work force who supervise
production of more than one product.

Direct benefits: The benefits which can be specifically attributable to a given

project e.g., a new system that can handle 25% more transaction per day is direct
benefit.

Indirect Benefits: The benefits that are realized as a by-product of another activity
or system.

2. Fixed or Variable Cost/Benefits

Behavior of cost in relation with the level of activity (usually production activity)
forms the basis for the distinction between fixed and variable costs.

Variable Cost: All those costs that vary in direct proportion to the volume of
activate are called variable costs. Variable costs vary in proportion to tile change in
the volume of production. This states that per unit cost remains relatively constant
but the total cost increases with increase in production and decreases with decrease
in production.

When there is no production, no variable cost is incurred e.g., raw materials,

wages, fuel, power, packing expenses, carriage, etc.

Fixed Costs: Fixed Costs are those that remain the same within a certain range in
the level of activity. They have to be incurred even if there is no production and
therefore are also called shutdown or start by costs.

Example of fixed costs are insurance, depreciation, rent, rates etc. Within the
production capacity established the fixed costs remain the same irrespective of the
level of activity. Therefore, while the Cost total fixed costs remain the same, the
fixed cost per unit changes with change in output level. With the increase in
production level, the fixed cost open unit decreases because it gets distributed over
a larger number of units.

Variable benefits: These are realized on a regular basis.

Fixed benefits: These are constant and do not change, e.g., decrease in number of
personnel by 20% resulting from the use of a new computer. The benefit of
personnel savings may recur every month.

3. Tangible or Intangible Costs/Benefits

Tangibility refers to the ease with which costs and benefits can be measured.
Tangible Cost: An outlay of cash for a specific item or activity is called tangible
cost. They can be identified and measured.

Intangible Cost: Costs that are known to exist but whose financial value cannot be
accurately measured. It is easy to identify but difficult to measure. e.g., lowered
companys image.

Tangible Benefits: Those which are quantifiable.

Intangible Benefits: Those which are not easily quantified.

Select the Evaluation Method

When all financial data have been identified and broken down into cost categories,
the analyst must select a method of evaluation.

Evaluation methods are

Net Benefit Analysis

Present Value Analysis
Net Present Value
Payback Analysis
Break-even Analysis
Cash-flow Analysis

1. Net benefit Analysis: It involves subtracting total costs from total benefits.

2. Present Value Analysis: It calculates costs/benefits of the system in terms of

todays value of the investment and then comparing across alternatives.

3. Net Present Value: The net present value is represented as a percentage of

investment.

4. Payback Analysis: Where there is not profit; no loss condition occurs:

Payback Period = Investment/Cash inflow

5. Break-Even Analysis: Where there is no profit, no loss condition occurs.

Break-Even Point = Fixed Cost/Sales per Unit Variable Cost Per unit

6. Cash-flow Analysis: It is total revenue minus the total expenses on a period-by-

period basis.

E-R MODEL

The ER model defines the conceptual view of a database. It works around real-
world entities and the associations among them. At view level, the ER model is
considered a good option for designing databases.

Entity

An entity can be a real-world object, either animate or inanimate, that can be easily
identifiable. For example, in a school database, students, teachers, classes, and
courses offered can be considered as entities. All these entities have some attributes
or properties that give them their identity.

An entity set is a collection of similar types of entities. An entity set may contain
entities with attribute sharing similar values. For example, a Students set may
contain all the students of a school; likewise a Teachers set may contain all the
teachers of a school from all faculties. Entity sets need not be disjoint.

Attributes

Entities are represented by means of their properties, called attributes. All attributes
have values. For example, a student entity may have name, class, and age as
attributes.

There exists a domain or range of values that can be assigned to attributes. For
example, a student's name cannot be a numeric value. It has to be alphabetic. A
student's age cannot be negative, etc.
Types of Attributes

Simple attribute Simple attributes are atomic values, which cannot be

divided further. For example, a student's phone number is an atomic value of
10 digits.
Composite attribute Composite attributes are made of more than one
simple attribute. For example, a student's complete name may have
first_name and last_name.
Derived attribute Derived attributes are the attributes that do not exist in
the physical database, but their values are derived from other attributes
present in the database. For example, average_salary in a department should
not be saved directly in the database, instead it can be derived. For another
example, age can be derived from data_of_birth.
Single-value attribute Single-value attributes contain single value. For
example Social_Security_Number.
Multi-value attribute Multi-value attributes may contain more than one
values. For example, a person can have more than one phone number,
email_address, etc.

These attribute types can come together in a way like

simple single-valued attributes

simple multi-valued attributes
composite single-valued attributes
composite multi-valued attributes

Entity-Set and Keys

Key is an attribute or collection of attributes that uniquely identifies an entity

among entity set.
For example, the roll_number of a student makes him/her identifiable among
students.

Super Key A set of attributes (one or more) that collectively identifies an

entity in an entity set.
Candidate Key A minimal super key is called a candidate key. An entity
set may have more than one candidate key.
Primary Key A primary key is one of the candidate keys chosen by the
database designer to uniquely identify the entity set.

Relationship

The association among entities is called a relationship. For example, an employee

works_at a department, a student enrolls in a course. Here, Works_at and Enrolls
are called relationships.

Relationship Set

A set of relationships of similar type is called a relationship set. Like entities, a

relationship too can have attributes. These attributes are called descriptive
attributes.

Degree of Relationship

The number of participating entities in a relationship defines the degree of the

relationship.

Binary = degree 2

Ternary = degree 3

n-ary = degree

Mapping Cardinalities

Cardinality defines the number of entities in one entity set, which can be associated
with the number of entities of other set via relationship set.
 One-to-one One entity from entity set A can be associated with at most
one entity of entity set B and vice versa.

One-to-many One entity from entity set A can be associated with more
than one entities of entity set B however an entity from entity set B, can be
associated with at most one entity.

Many-to-one More than one entities from entity set A can be associated
with at most one entity of entity set B, however an entity from entity set B
can be associated with more than one entity from entity set A.
 Many-to-many One entity from A can be associated with more than one
entity from B and vice versa.

STRONG AND WEAK ENTITY TYPES

The entity set which does not have sufficient attributes to form a primary key is
called as Weak entity set. An entity set that has a primary key is called as Strong
entity set. Consider an entity set Payment which has three attributes:
payment_number, payment_date and payment_amount. Although each payment
entity is distinct but payment for different loans may share the same payment
number. Thus, this entity set does not have a primary key and it is an entity set.
Each weak set must be a part of one-to-many relationship set.

A member of a strong entity set is called dominant entity and member of weak
entity set is called as subordinate entity. A weak entity set does not have a primary
key but we need a means of distinguishing among all those entries in the entity set
that depend on one particular strong entity set. The discriminator of a weak entity
set is a set of attributes that allows this distinction be made. For example,
payment_number acts as discriminator for payment entity set. It is also called as
the Partial key of the entity set.

The primary key of a weak entity set is formed by the primary key of the strong
entity set on which the weak entity set is existence dependent plus the weak entity
sets discriminator. In the above example {loan_number, payment_number} acts as
primary key for payment entity set.

The relationship between weak entity and strong entity set is called as Identifying
Relationship. In example, loan-payment is the identifying relationship for payment
entity. A weak entity set is represented by doubly outlined box .and corresponding
identifying relation by a doubly outlined diamond as shown in figure. Here double
lines indicate total participation of weak entity in strong entity set it means that
every payment must be related via loan-payment to some account. The arrow from
loan-payment to loan indicates that each payment is for a single loan. The
discriminator of a weak entity set is underlined with dashed lines rather than solid
line.

Relation Between strong and weak entity set

Let us consider another scenario, where we want to store the information of

employees and their dependents. The every employee may have zero to n number
of dependents. Every dependent has an id number and name.

Now let us consider the following data base:

There are three employees having E# as 1, 2, and 3 respectively.

Employee having E# 1, has two dependents as 1, Rahat and 2, Chahat.

Employee having E# 2, has no dependents.

Employee having E# 3, has three dependents as 1, Raju; 2, Ruhi; 3 Raja.

Now, in case of Dependent entity id cannot act as primary key because it is not
unique.

Thus, Dependent is a weak entity set having id as a discriminator. It has a total

participation with the relationship "has" because no dependent can exist without
the employees (the company is concerned with employees). The E-R diagram for
the employee-dependent database is shown.

There are two tables need to created above e-r diagram. These are Employee
having E# as single column which acts as primary key. The other table will be of
Dependent having E#, id and name columns where primary key is the combination
of (E# and id).

The tabular comparison between Strong Entity Set and Weak Entity Set is as
follows:

Comparison between Strong and Weak entity