Data processing:Systems analysis

Systems analysis

In this final part of the chapter we shall be looking mainly at systems analysis. This can be defined as the task of determining the boundaries (i.e. the inputs and outputs) of data processing systems within an organization, and finding out for each system the most cost-effective way of converting the inputs to outputs. As a general rule, systems analysis is conducted with the object of introducing or extending computer processing in the organization.

All commercial organizations have data processing pro­cedures producing transaction documents and management reports, but these procedures do not always work very well. The systems analyst's job is to investigate them and to make recommendations for improvements. We can break down this task into the following main steps:

1 Find out what the outputs of a system should be, i.e. what transaction documents and management reports it should produce. He or she will do this by collecting information on existing procedures by observation and questioning.

2 Decide what data inputs are needed by the system to produce these outputs, i.e. what source documents it needs.

3 Decide how the data inputs should be converted to the required outputs, i.e. what procedures, software, and equipment should be adopted.

4 Compare the benefits that will come from computerizing the system with the costs of computerization, so deter­ mining the feasibility or otherwise of the project.

The systems analyst works in an advisory capacity, and has no authority to implement any of the recommendations he may make. It is up to the senior management to decide whether and how to implement, and managers of affected departments will obviously have a major involvement. How­ ever, the analyst will normally be closely consulted during the implementation.

The systems project

A major systems project can be broken down into three main phases:

1 The first phase involves deciding whether a computer­ based solution to the data processing needs is feasible and cost-effective. This phase is called the feasibility study.

2 Assuming that a computer-based solution is feasible, the second phase involves looking at the various subsystems in turn and designing computer-based procedures for each.

3 Once these various subsystems have been computerized, the analyst must bring them together so that they form an integrated whole, drawing upon common files and interrelated procedures. Obviously, the individual sub­ systems will have been designed with this end in view.

Each one of these phases is a major task, and the whole project may occupy a number of analysts for several years. The next sections examine these phases in more detail.

The feasibility study

This first phase will normally be carried out by a team of staff consisting not only of the systems analyst (or analysts) but staff from the various parts of the organization that will be affected by the changes.

The team will take a global look at the organization, and will attempt to identify possible areas where the computer might be introduced or where its existing use might be extended. Then it will carry out a cost/benefit analysis to determine whether computerization is worthwhile. This means that it will attempt to quantify (i.e. express in monetary terms) the overall costs of computerization and the overall benefits to the organization.

The team will present the results of this feasibility study (including the expected costs and benefits) in a feasibility report. This will be used by management in deciding whether or not to go ahead with the project. The report will also state what document production, reporting, and enquiry facilities will be needed, and it will recommend suitable equipment.