CPU Business and Information
Technology College
School of Undergraduate Studies
* *
System analysis and design
Prepared By: Samuel Abera, DRBM/1007/14
Submitted To: Mr. Aleminew
May 3, 2024
1|Page
Table of contents
Introduction--------------------------------------------------------------- 2
What is a system, System Analysis, System Design? --------------------------- 3
Elements, characteristics, types, models of Systems----------------------------- 4
Elements or components of a System--------------------------------- 4
Characteristics of a system--------------------------------------------- 4
Types of systems--------------------------------------------------------- 4
System model------------------------------------------------------------ 5
The role of information system for business and managerial levels--------------------- 6
The sources of information in an organization--------------------------------------------- 7
Internal sources of information------------------------------------------------- 7
External sources of information------------------------------------------------ 8
Write detail about strategic, tactical and operational information. --------------------- 8
System Development Life Cycle? -------------------------------------------------------- 9
Steps in system development life cycle--------------------------------------------------- 9
Explain closed questions and open-ended questions with examples---------------- 10
Feasibility study --------------------------------------------------------------------------- 11
Importance’s system analysis and design for business development-------------- 12
Conclusion ------------------------------------------------------------------------------------- 14
Reference -------------------------------------------------------------------------------------- 15
2|Page
Introduction
In the ever-evolving landscape of business and technology, understanding systems,
system analysis, and design are paramount for organizational success and
development. A system, whether physical or conceptual, represents a dynamic
collection of interrelated components working in harmony to achieve common goals.
System analysis delves into the intricate workings of these systems, examining their
functionalities, constraints, and requirements to identify areas for improvement and
optimization.
The fundamental elements of a system—inputs, processors, controls, feedback
mechanisms, and environments—form the bedrock upon which efficient operations
thrive. By dissecting these elements, organizations can comprehend the complexities
of their systems and orchestrate enhancements to drive productivity and efficacy.
The System Development Life Cycle (SDLC) offers a structured approach to system
development, ensuring systematic progression from inception to implementation and
beyond.
Feasibility studies serve as critical precursors to project viability, offering insights
into potential risks, resource requirements, and return on investment. These studies
lay the groundwork for informed decision-making, enabling organizations to pursue
ventures with confidence and foresight. In the context of business development,
system analysis and design emerge as linchpins, driving efficiency, innovation, and
strategic alignment to foster sustained growth and competitiveness.
This comprehensive exploration seeks to elucidate the multifaceted significance of
systems, system analysis, and design in the realm of business development. By
embracing these principles and methodologies, organizations can navigate complexity
with clarity, harnessing the power of technology to propel their ventures towards
success and sustainability.
3|Page
1. What is a system, System Analysis, System Design?
A system is a collection of interrelated components working together to achieve a
common goal. It can be a physical or conceptual entity designed to perform specific
functions by organizing and coordinating various elements. Systems can range from
simple structures, like a single machine, to complex networks, like an entire
organization or ecosystem. In essence, a system is a unified whole made up of
interconnected parts that work together to produce a desired outcome or provide a
particular service.
System analysis is the process of studying a system in order to identify its objectives,
components, and interactions. It involves examining the existing system's
functionality, constraints, and requirements to understand how it works and how it
can be improved. System analysts use various tools and techniques to gather
information, define problems, and propose solutions to enhance the system's
efficiency and effectiveness. The primary goal of system analysis is to ensure that the
system meets the needs of its users and stakeholders while leveraging available
resources.
System design is the phase of the system development lifecycle where the blueprint
for the new or improved system is created. It involves translating the requirements
identified during system analysis into a detailed design that outlines the structure,
behaviour, and functionality of the system. System designers focus on selecting the
most appropriate technologies, components, and processes to build a robust and
scalable system that aligns with the organization's goals and objectives. The design
phase also involves creating prototypes, models, and specifications to guide the
development and implementation of the system.
A key aspect of system design is ensuring that the system is well-structured, modular,
and adaptable to change. Designers must consider factors such as performance,
security, usability, and scalability when designing the system architecture and
components. By following best practices and standards in system design,
organizations can create systems that are easier to maintain, upgrade, and integrate
with other systems. Effective system design lays the foundation for a successful
system implementation and operation, ultimately leading to improved productivity
and user satisfaction.
System analysis and design are iterative processes that require collaboration between
various stakeholders, including users, analysts, designers, developers, and project
managers. The analysis phase lays the groundwork for understanding the current
system and defining the requirements for the new system, while the design phase
focuses on creating a detailed plan for implementing those requirements. Throughout
the system development lifecycle, feedback loops and reviews ensure that the system
meets the needs of its users and stakeholders and remains aligned with the
organization's strategic objectives.
4|Page
2. Elements, characteristics, types, models of Systems
2.1 Elements or components of a System
Following are the elements or components of a system:
i) Outputs and Inputs Inputs are the elements/components that enter the
system for processing and output is the result of processing.
ii) Processor- it is the element that involves the actual transformation of input
into output.
iii) Control The control element controls/guides the system.
iv) Feedback Output is compared against performance measures.
v) Environment It is the system within which an organization operates.
vi) Boundaries and Interface a system should be defined by its limits.
2.2 Characteristics of a System
The characteristics of a system are as follows:
(i) Organisation: It means structure and order. It is the arrangement of
components that helps to achieve objectives.
(ii) Interaction: It refers to the manner in which each component functions
with other component of the system. In an organisation, for example,
purchasing must interact with production, advertising with sales, ordering,
etc.
(iii) Interdependence: It means that parts of the organisation or computer
system depend on one another. They are coordinated and linked together
according to a plan. One subsystem depends on the input of another
subsystem for proper functioning.
(iv) Integration: It refers to the completeness of systems. It is concerned with
how a system is tied together. It is more than sharing a physical part or
location. It means that parts of a system work together within the system
even though each part performs a unique function.
(v) Central objective: Objectives may be real or mentioned/stated. Although a
mentioned objective may be the real objective, it is not uncommon for an
organisation to state one objective and operates to achieve another
objective.
2.3 Types of Systems
1. Physical System: These are tangible entities that may be static or
dynamic in operation. For example- parts of a computer centre are
the desks, chairs etc. that facilitate operation of the computer. They
are static and a programmed computer is dynamic.
2. Abstract System: These are conceptual or non-physical entities.
A model is a representation of a real or planned system. A model is
used to visualize relationships. For example: The abstract
conceptualization of physical situations.
5|Page
3. Machine System: Where human interference is neglected. All the
tasks are performed by the machine.
4. Open System: It has many interfaces with its environment. It
interacts across its boundaries, it receives inputs from and delivers
outputs to the outside world. It must adapt to the changing demands
of the user.
5. Closed System: It is isolated from the environmental influences.
A completely closed system is rare.
6. Man Made Information Systems Information System may be
defined as a set of devices, procedures, and operating systems
designed around user based criteria to produce information and
communicate it to the user for planning, control and performance.
7. Formal Information Systems It is based on the organization
represented by organization chart. The chart is a map of positions
and their authority relationships, indicated by boxes and connected
by straight lines.
2.4 System models
In System models there are four major models
A. Schematic: visual representations that depict the structure and
components of a system using symbols, lines, and labels. These
models provide a high-level overview of the system's
architecture and help stakeholders understand how different
elements are connected and interact with each other. Schematic
models are commonly used in engineering, architecture, and
electronics to design and communicate complex systems in a
clear and concise manner. By creating schematic models,
engineers and designers can identify potential issues, optimize
system performance, and ensure that all components work
together seamlessly.
B. Flow: focus on illustrating the flow of information, materials, or
energy within a system. These models use arrows, lines, or
diagrams to show the movement of resources through different
stages or processes. Flow models are particularly useful for
analysing bottlenecks, identifying inefficiencies, and optimizing
workflows in manufacturing, logistics, and supply chain
management. By visualizing the flow of resources, stakeholders
can identify opportunities for improvement, streamline
operations, and enhance overall system performance.
C. Static: is models capture a snapshot of a system at a specific
point in time, focusing on the system's structure and
relationships without considering changes over time. These
models provide a static view of the system's components,
properties, and interactions, making them useful for analysing
system design, architecture, and dependencies. Static system
6|Page
models are commonly used in software engineering, network
design, and organizational analysis to understand the structure
of complex systems and identify potential issues before
implementation.
D. Dynamics: is system models take into account changes and
interactions over time, allowing researchers to study the
behaviour and evolution of a system. Dynamic models use
mathematical equations, simulations, or feedback loops to
capture how different components of the system influence each
other and how the system responds to external stimuli. These
models are essential for predicting system behaviour,
understanding complex phenomena, and making informed
decisions in fields such as economics, ecology, and social
sciences. By incorporating time-dependent variables and
feedback mechanisms, dynamic system models provide insights
into the dynamics and emergent properties of complex systems.
3. The role of information system for business and managerial levels
Information systems play a crucial role in supporting business operations and
managerial decision-making at various levels within an organization. Some are
some key roles of information systems for business and managerial levels:
1. Data Management: Information systems help businesses collect,
store, and manage vast amounts of data efficiently. This data can
include customer information, sales figures, inventory levels,
financial records, and more. By organizing and maintaining data in a
structured manner, information systems enable businesses to access
accurate and up-to-date information for decision-making.
2. Decision Support: Information systems provide managers with
access to real-time data, analytics, and reporting tools that support
decision-making processes. Managers can use information systems
to generate reports, analyse trends, forecast outcomes, and evaluate
performance metrics to make informed decisions that drive business
success.
3. Strategic Planning: Information systems help businesses
develop strategic plans by providing insights into market trends,
competitor analysis, and internal performance metrics. Managers
can use information systems to assess opportunities, identify risks,
and formulate strategies that align with the organization's goals and
objectives.
4. Communication and Collaboration: Information systems
facilitate communication and collaboration among employees,
7|Page
teams, and departments within an organization. Managers can use
information systems to share information, coordinate tasks, track
progress, and communicate effectively across different levels of the
organization.
5. Operational Efficiency: Information systems automate routine
tasks, streamline processes, and improve operational efficiency
within a business. By integrating different systems and
technologies, businesses can eliminate manual errors, reduce costs,
and enhance productivity across various functions such as finance,
human resources, marketing, and supply chain management.
6. Customer Relationship Management (CRM): Information
systems enable businesses to build and maintain strong relationships
with customers through CRM systems. These systems help
businesses track customer interactions, personalize marketing
campaigns, improve customer service, and enhance customer
satisfaction by delivering personalized experiences based on
customer preferences and behaviour.
7. Performance Monitoring: Information systems provide
managers with tools to monitor key performance indicators (KPIs)
and track the progress of business activities in real-time. Managers
can use dashboards, reports, and analytics to assess performance
against targets, identify areas for improvement, and make data-
driven decisions to optimize business operations.
4 . The sources of information in an organization
Sources of information in an organization can be classified into two
broad categories: internal and external sources. Those are some
details about each type of information source:
4.1. Internal Sources of Information:
- Employee Records: Internal sources of information include
employee records, such as personnel files, performance evaluations,
training records, and attendance logs. These records provide
valuable insights into the skills, capabilities, and performance of
employees within the organization.
- Financial Data: Internal financial data, such as income statements,
balance sheets, cash flow statements, and budget reports, offer
insights into the financial health and performance of the
organization. This information is critical for decision-making,
financial planning, and performance evaluation.
- Sales and Marketing Reports: Internal sales and marketing reports
provide data on sales figures, customer demographics, market
trends, and campaign performance. This information helps
8|Page
organizations assess the effectiveness of their marketing strategies,
identify opportunities for growth, and improve customer
engagement.
- Operational Data: Internal operational data includes information
on production processes, inventory levels, supply chain
management, and quality control. This data is essential for
optimizing operational efficiency, managing resources effectively,
and ensuring smooth business operations.
- Management Reports: Internal management reports compile data
from various sources to provide insights into key performance
indicators (KPIs), operational metrics, and strategic goals. These
reports help managers monitor progress, make informed decisions,
and align business activities with organizational objectives.
4.2. External Sources of Information:
- Market Research: External sources of information include market
research reports, industry studies, competitor analysis, and
consumer surveys. This information helps organizations understand
market trends, customer preferences, competitive landscape, and
emerging opportunities in the industry.
- Economic Data: External economic data, such as GDP growth
rates, inflation rates, interest rates, and employment statistics,
provide insights into macroeconomic conditions that can impact
business operations. Organizations use this information to assess
market conditions, forecast demand, and plan for future growth.
- Industry Publications: External industry publications, trade
journals, news articles, and industry blogs offer valuable insights
into industry trends, best practices, regulatory changes, and
emerging technologies. Organizations can leverage this information
to stay informed about industry developments and adapt their
strategies accordingly.
- Government Reports: External government reports, regulatory
updates, policy changes, and legal requirements provide
organizations with information on compliance issues, tax
regulations, environmental regulations, and other legal matters that
may impact business operations. Organizations need to stay updated
on these external sources of information to ensure compliance and
mitigate risks.
5. Write detail about strategic, tactical and operational information.
A. Strategic information is crucial for setting long-term goals, defining the overall
direction of the organization, and making high-level decisions that impact the entire
business. This type of information is typically used by top-level executives and senior
management to develop strategic plans, allocate resources, and position the
9|Page
organization for future success. Strategic information focuses on factors such as
market trends, competitive analysis, industry forecasts, and organizational
capabilities. It helps organizations identify opportunities for growth, assess risks, and
make informed decisions that align with the organization's mission and vision.
B. Tactical information, on the other hand, is more focused on implementing the
strategic plans and achieving specific objectives within a defined timeframe. This
type of information is used by middle managers and department heads to coordinate
activities, allocate resources efficiently, and monitor progress towards achieving short
to medium-term goals. Tactical information typically includes data on project
timelines, resource allocation, performance metrics, and key performance indicators
(KPIs). It helps managers make day-to-day decisions, adjust strategies as needed, and
ensure that operational activities are aligned with the organization's strategic
objectives.
C. Operational information is concerned with the day-to-day activities and
processes that support the organization's core functions. This type of information
is used by front-line employees, supervisors, and operational staff to carry out
routine tasks, manage workflows, and ensure smooth business operations.
Operational information includes details such as inventory levels, production
schedules, customer orders, employee schedules, and quality control measures. It
helps employees perform their duties effectively, address immediate challenges,
and maintain operational efficiency to meet customer demands and organizational
goals.
6. System Development Life Cycle?
The System Development Life Cycle (SDLC) is a structured approach to
developing, implementing, and maintaining systems within an organization. It
consists of a series of phases that guide the development process from initial
planning to system deployment and maintenance. And also the system
development life cycle method is classically thought of as the set of activities
that analysts, designers and users carry out to develop and implement an
information system. The various stages in the business are closely related to
each other, even the order of the steps in these activities is difficult to
determine.
7. Steps in system development life cycle
A system development life cycle or SDLC is essentially a project management model.
It defines different stages that are necessary to bring a project from its initial idea or
conception all the way to deployment and later maintenance.
10 | P a g e
Phases of the System Development Life Cycle
There are seven primary stages of the modern system development life cycle. Here’s
a brief breakdown:
A. Planning: This initial phase involves defining the project scope, objectives,
requirements, and resources. Key activities include conducting feasibility studies,
defining project goals, creating a project plan, and establishing a budget and
timeline.
B. Analysis: During this stage, the current system or business processes are analysed
to identify user needs, requirements, and opportunities for improvement.
Requirements are documented, and potential solutions are explored.
C. Design: In this phase, the system architecture, database design, user interface, and
other technical specifications are developed based on the requirements identified in
the analysis phase. Detailed design documents are created to guide the development
team.
D. Development: This stage involves building the system or software according to
the design specifications. Programmers write code, developers integrate components,
and testing is conducted to ensure that the system functions as intended.
E. Testing: The system is rigorously tested to identify and fix any defects or issues.
Testing includes unit testing (testing individual components), integration testing
(testing how components work together), system testing (testing the entire system),
and user acceptance testing (testing with end-users).
F. Implementation: The system is deployed into the production environment in this
phase. This may involve data migration, training for end-users, and transitioning from
the old system to the new one. Implementation can be done in phases or all at once,
depending on the project requirements.
G. Maintenance: After implementation, the system enters the maintenance phase
where it is monitored, updated, and enhanced as needed to address issues, improve
performance, or add new features. Maintenance ensures that the system remains
effective and meets changing business needs.
8. Explain closed questions and open-ended questions with examples
Closed questions and open-ended questions are two types of questioning techniques
used to gather information or elicit responses from individuals. Each type serves a
different purpose and can be effective in different situations. Here are explanations
and examples of closed and open-ended questions:
11 | P a g e
i) Closed Questions:
- Definition: Closed questions are those that can typically be answered with a
simple "yes" or "no" or with a specific piece of information. They are designed to
elicit specific, factual responses.
- Example:
- Are you a student? (Yes/No)
- Did you attend the meeting yesterday? (Yes/No)
- Have you ever travelled to Europe? (Yes/No)
Purpose: Closed questions are useful when you need precise, specific information
and want to control the direction of the conversation. They are often used in surveys,
interviews, or when seeking quick, straightforward answers.
ii) Open-Ended Questions:
- Definition: Open-ended questions are those that require more than a simple one-
word answer and encourage the respondent to provide detailed information or share
their thoughts, feelings, or opinions.
- Example:
- How do you feel about the current state of the economy?
- Can you tell me about your experience working with our company?
- What are your goals for the next five years?
- Purpose: Open-ended questions are valuable for eliciting in-depth responses,
encouraging dialogue, and gaining insight into someone's perspectives, experiences,
or motivations. They are often used in interviews, coaching sessions, or when seeking
feedback.
9. Feasibility study
A feasibility study is a detailed analysis that considers all of the critical aspects of a
proposed project in order to determine the likelihood of it succeeding.
Success in business may be defined primarily by return on investment, meaning that
the project will generate enough profit to justify the investment.
A feasibility study is an assessment of the practicality of a proposed plan or project.
A feasibility study analyses the viability of a project to determine whether the
12 | P a g e
project or venture is likely to succeed. The study is also designed to identify
potential issues and problems that could arise while pursuing the project. As part of
the feasibility study, project managers must determine whether they have enough of
the right people, financial resources, and technology. The study must also determine
the return on investment, whether this is measured as a financial gain or a benefit to
society, as in the case of a non-profit project.
The feasibility study might include a cash flow analysis, measuring the level of cash
generated from revenue versus the project's operating costs. A risk assessment must
also be completed to determine whether the return is enough to offset the risk of
undergoing the venture.
10. Importance’s system analysis and design for business development
System analysis and design play a crucial role in the development and success of
businesses by ensuring that information systems are effectively designed,
implemented, and maintained to support business processes and objectives. Here are
some key reasons why system analysis and design are important for business
development:
A. Efficiency and Productivity:
- System analysis and design help identify inefficiencies in existing business
processes and design solutions to streamline operations, automate tasks, and improve
overall efficiency. By optimizing workflows and integrating technology solutions,
businesses can enhance productivity and reduce manual errors, leading to cost
savings and improved performance.
B. Strategic Alignment:
- Through system analysis and design, businesses can align their information
systems with strategic goals and objectives. By understanding business requirements
and designing systems that meet those needs, organizations can enhance their
competitive advantage, adapt to market changes, and drive growth.
C. Decision-Making Support:
- Well-designed information systems provide timely and accurate data that support
informed decision-making at all levels of the organization. By analysing data trends,
generating reports, and providing insights, businesses can make data-driven decisions
that lead to better outcomes and competitive advantages.
D. Customer Satisfaction:
- Effective system analysis and design help businesses create user-friendly
interfaces, seamless experiences, and personalized services that enhance customer
13 | P a g e
satisfaction. By understanding customer needs and preferences, businesses can tailor
their systems to deliver value-added services, improve customer engagement, and
build long-term relationships.
E. Risk Management:
- System analysis and design help identify potential risks, vulnerabilities, and
security threats in information systems. By implementing robust security measures,
backup procedures, and disaster recovery plans, businesses can mitigate risks, protect
sensitive data, and ensure business continuity.
F. Scalability and Adaptability:
- Businesses need systems that can scale with their growth and adapt to changing
market conditions. System analysis and design enable businesses to design flexible,
scalable systems that can accommodate future expansion, technological
advancements, and evolving business needs.
G. Cost-Effectiveness:
- By conducting thorough system analysis and design, businesses can optimize
resource allocation, reduce unnecessary expenses, and maximize the return on
investment in information technology. Well-designed systems help minimize
maintenance costs, improve operational efficiency, and deliver long-term value to the
organization.
14 | P a g e
Conclusion
Understanding the intricate relationships and interdependencies within systems is
essential for businesses to thrive in today's competitive landscape. By exploring
different types of systems and utilizing various system models, organizations can gain
valuable insights into their operations, optimize processes, and drive innovation.
System analysis and design play a crucial role in aligning technology solutions with
organizational goals, enhancing operational efficiency, and ensuring long-term
sustainability. Embracing the principles of interdependence, integration, and system
models empowers businesses to make informed decisions, optimize workflows, and
stay ahead of the curve in the ever-evolving business environment. By continuously
evolving and adapting to changing dynamics, businesses can position themselves for
success and achieve their strategic objectives.
15 | P a g e
References
1. Kendall, K. E., & Kendall, J. E. (2019). Systems Analysis and
Design (10th Ed.). Pearson.
2. Satzinger, J. W., Jackson, R. B., & Burd, S. D. (2015). Systems
Analysis and Design in a Changing World (7th ed.). Cengage
Learning.
3. Dennis, A., Wixom, B. H., & Tegarden, D. (2015). Systems
Analysis and Design (6th ed.).
4. Valacich, J. S., George, J. F., & Hoffer, J. A. (2015). Essentials of
Systems Analysis and Design (6th ed.). Pearson.
16 | P a g e
