Welcome to the first topic of this unit.

In this topic we define a number of common terms in system analysis and design,
identify the components of an information system, types of information systems and the
information system stakeholders.

The topic should take approximately 6 hours.

Specific Objectives

By the end of this topic, the trainee should be able to:

a) explain meaning of SAD

b) describe the components of an information system
c) describe the roles of information systems stake holders
d) describe the types of information systems

TOPIC 1:
Introduction to System Analysis and Design

Definition of terms:

 System

An orderly grouping of interdependent components linked together according to a plan

to achieve a specific objective.

We can further describe a system as a set of items, equipment, and people working
jointly with an aim of achieving a common goal.

 Information System

It is a set of inter-related components or technologies that collect or retrieve, process,

store and distribute information to support decision making and control in an
organization.

 Data

It is a collection of raw facts, figures and symbols which must be arranged or processed
in order to be meaningful.

Examples: names of students and their marks in different subjects listed in random
order.

Name of employees and hours worked.

 Information

It is data which has been processed to a point where it conveys knowledge and
represents a usable statement

Examples: when the names of students are arranged in alphabetical order, total and
average marks are calculated and represented in tabular form.

 Information technology (IT)

It is the study, design, development, implementation and management of computer

based systems, particularly software applications and computer hardware.
 Characteristics of Systems

i. A system is defined to fulfill a predetermined objective

ii. A system comprises of multiple components e.g. input, processor, output e.t.c
iii. This different components are interdependent and interlinked i.e. information must be
flowing from one component to another
iv. The different components of a system form a sub-system
v. A good system must have some control and this control helps it not to operate
beyond its boundaries
vi. A system must give priority to the objectives of the organization as a whole as
compared to the objectives of a sub-system

 System Analysis and Design

It refers to the investigation of a system and subsequent design of a replacement system

or
It is the process of designing, building and maintaining information systems.

A. System analysis is the investigation into a system operation so as to identify the

short comings on this system with the aim of solving them. It is necessary to set up
the right procedures, acquire the proper equipment and write solutions inform of
programs/systems that can solve the shortcomings in those equipment.
B. It is also the process of collecting and analyzing facts in respect of existing system so
that an effective system may be designed and implemented if proved feasible.
System analysis is necessary so that a system can be kept in a good working
condition.
C. System Design refers to the process of designing a new better system after a
thorough system analysis solving the problems that were identified.
D. System Analyst is the person who investigates computer systems to identify a
problem with an aim of solving it. He is an expert in computer analysis and design.
The system analyst uses understanding of existing system and its problems and
eventually build a better system.
~ If the present is not functioning , as required , the system analyst may be
called upon to correct malfunction.
Information systems

It is a set of interrelated components or elements that collect, process, store and

distribute information to support decision making and control in an organization.

A computer based information system is an information system that uses computer

technology to perform some or all of its intended tasks.

Data in a business organization consists of events, transactions and records. This data is
voluminous and would be difficult for a manager to use to make decisions. A manager
requires information which is received from the data that is processed. A system
therefore is needed to transform raw data into meaningful information. Such a system is
called an information system or a data processing system.

Activities of information systems

 Entering data into the information system(input)

 Changing and manipulating the data in the information system(data processing)
 Getting information out of the information system(output)
 Storing data and information(storage)

Components of an Information System/Information System Resources

All information systems consist of five major resources:

 People resources
 Hardware resources
 Software resources
 Data resources
 Procedures
 Network resources
  People Resources

They include end users and information system specialists

End users are people who use an information system or the information it provides.
They can be customers, sales persons, clerks or accountants

Information specialists are people who develop and operate information systems. They
include system analysts, software developers, database designers and system operators.

System analysts design information systems based on information requirements of end

users.

Software developers/programmers create computer programs base on specifications of

system analysts.

System operators help to monitor and operate large computer systems and networks.

 Hardware Resources

They include all devices and materials used in information processing

Hardware includes computers, printers, data media on which data is stored etc.

 Software Resources

Software includes system software such as operating system and application software.

 Data/information Resources

Data can take many forms including alphanumeric data, numbers, letters,
images/pictures and other characters that describe business transactions.

 Procedures

Every system functions under a set of rules that govern the system to accomplish the
defined goal of the system.

 Network Resources

Telecommunication networks consist of computers, communication media and network

infrastructure

Classification of Information Systems

1. Formal information system

It is a modeled formal information system such as payroll, stock control irradiators
which generates formed information via performance reports , financial
statements or interrogation responses to form on information which is formally
designed for a purpose .

Structured information system is manifested by document and other records ,

usually indicating compliance with pre-specified rules and procedures

2. Informal information
Information which is not specifically structured e.g. Making a phone call to a friend,
colleague or by conversing to a group of people

Information received from sources outside the input system is considered informal
e.g. electrical mail, telephone calls conversation

Levels of Management
Management is divided into 3 major levels which interact with each other for decision
making. They are:

a. Operational Level Information System/ Low level

b. Knowledge Level Information System/ Middle level
c. Strategic Level Information System/ Top level

Environment

Top
Level
Mngt

Middle Level Management

Low

Level Management

Environment includes laws of Kenya, Trade Union, government policies.

a. Top Level Management

This is the highest level high level of planning is done. Strategic decisions concerned
with overall organizational goals are made. They are long term (5 – 10 yrs0, risk oriented
(outcome is not predictable) and normally unpredictable.

b. Middle level Management

Short term planning is done. Decisions made are tactical. They involve co-ordination,
controls against overall organizational objectives set at strategic level.

Tactical decisions usually involve a shorter time frame than strategic decisions. They are
concerned with internal operation of the organization and therefore rely on information
generated by the organization. The personnel at this level assemble required materials
in order to meet objective and make sure duties are attended to.
c. Low Level Management
It is the lowest level of management. Decisions made at this level are known as
operations decisions. They are used on day to day basis. They ensure that necessary
tools and materials are available. They track down costs that are spent on daily basis.

Duties are normally competitive and can easily be programmed.

Categories of Information
There are three categories of information related to managerial levels and the decision
managers make.

Strategic Information

 This information is required by topmost management for long range planning

policies for next few years. For example, trends in revenues, financial investment,
and human resources, and population growth.
 This type of information is achieved with the aid of Decision Support System
(DSS).

Managerial Information

 This type of Information is required by middle management for short and

intermediate range planning which is in terms of months. For example, sales
analysis, cash flow projection, and annual financial statements.
  It is achieved with the aid of Management Information Systems (MIS).

Operational information

 This type of information is required by low management for daily and short term
planning to enforce day-to-day operational activities. For example, keeping
employee attendance records, overdue purchase orders, and current stocks
available.
 It is achieved with the aid of Data Processing Systems (DPS).

Types of Information Systems

 Transaction Processing Systems(TPS)

It is a computerized system that performs and records the daily routine transactions
necessary to conduct the business.

These systems serve the operational level of the organization

A business can have several transaction processing systems examples are stock control
system, inventory system, billing system, order tracking systems.

They are used by operational level employees to help them make structured decisions.

 Knowledge Management System(KMS)

These are systems designed to help businesses create and share information.

They are used in a business where employees create new knowledge which can then be
shared with other people in other organization to create further commercial
opportunities. E.g. AUTO-CAD, Arch-CAD.

 Management Information Systems(MIS)

It is an information system at the management level of an organization that serves the

functions of planning, controlling and decision making by providing routine summary
reports.

They take data from TPS and summarize them into a series of management reports.
They make semi-structured decisions.
  Decision Support Systems(DSS)

It is an information system at management level of an organization that combines data

and sophisticated analytical models to or data analysis tools to support semi-structured
and unstructured decision making.

A decision is considered unstructured if there are no clear information or procedure for

making the decision.

Components of a DSS:

a) Data management component

Performs the function of storing and maintain information the DSS uses.

b) User interface management component

It allows the user to communicate with the DSS.

c) Knowledge management component

Provides information about relationships about data that is too complex for a database to
represent.

Characteristics of a DSS

 DSS offers users flexibility, adaptability and quick response.

 DSS operate with little or no assistance from professional programmers.
 DSS provide support for decisions and problems whose solutions cannot be
specified in advance.
 DSS use sophisticated data analysis and modeling tools.
Group Decision Support System (GDSS) is a type of a DSS that helps a team of decision
makers to solve problems.

 Executive support system(ESS)/Executive information system(EIS)

An information system designed to help senior management to make strategic decisions.

It is used at strategic level of organization to assist in making unstructured decisions.

They gather, summarize and analyze the key internal and external information used by
the business.
  Expert information systems

It is a computer based system that emulates the decision making ability of a human
expert.

They are designed to solve complex problems by reasoning about knowledge like an
expert and not by following the procedure of a developer as in the case in conventional
programming.

Benefits of expert systems

i. Preservation of knowledge: Expert systems preserve knowledge that might

be lost through retirement, resignation, or death of an expert or
acknowledged person in a company.
ii. It is not subject to human feeling such as fatigue, being too busy or
emotional.
iii. An expert system can effectively be used as a strategic tool in the areas of
marketing of products, cutting costs and improving products

Disadvantages of Expert Systems

i. Knowledge designing problem: enormous amount of time and effort is required to

extract the expert knowledge and translate it into IF/THEN rules upon which an
expert system is based.
ii. Programming problem: programming the system and monitoring the source code
is very difficult
iii. Judgment problem: an expert system cannot apply judgment which is an important
ingredient for problem solving. It has no common sense or judgment.
 Geographic information system(GIS)

It is an information system designed to capture, store and manipulate, analyze, manage

and present all types of geographical data. Example Google earth

Information System Stakeholders

Roles of information system stakeholders

a) System owners or sponsors

Providing clear requirements and expected project outcomes to the development team
 Reviewing and approving project tasks, plans, budgets and schedules.

Reviewing and approving scope of work.

Authorizes the system to be used.

b) System users/end users

Provides source information to the development team.

Provides expert business understanding of the organization

Review and confirm major SDLC work products for the project (system development life
cycle)

Participate as required in user acceptance testing activities.

Benefits of user involvement

 Improved quality of the system arising from more accurate user requirements
 Acceptance of the system
 When users are involved in system development, they are more likely to accept it
than reject it.
 Short training period: There is greater understanding of the system by users
resulting in more effective use.

c) System analyst
 Collects information to analyze and evaluate existing or proposed systems.

Role of a system analyst:

i. As an advisor
~ He is an advisor to the management about computer systems. Such decisions are
based on how suitable the systems would be, their nature, their function and their
usefulness etc.
~ He advices the management and computer users of what can be done and what
cannot be done.
ii. As an educator
~ The system analyst deals with users who have little knowledge or none on computers
and therefore he has the responsibility of educating the staff/users on how to use
 their computer systems. He is able to support other members of the organization to
enable them to understand the computer technology.
iii. As a salesman
~ A system analyst sells ideas that are new into the computer technology. He decides
the best types of system that would be suitable to the organization.
~ He convinces users that a new system will be an improvement and not a hindrance to
job satisfaction and performance.
iv. As a catalyst
~ He provides opportunity for users to examine carefully their job functions. He speeds
up operations by use of computer systems. He enables the organization to save on
time, resources etc.
v. As a communicator
~ A good system analyst needs to put across his ideas and skills. For that to be possible,
he should be able to communicate orally and in writing to enable people appreciate
his ideas.
vi. As an agent of change
~ A system analyst is seen as a person who brings change to the organization. He
enables people to turn away from manual systems and switched over to computerized
systems which are faster, efficient and more satisfying. He enables them to overcome
the change and stop fearing loss of jobs etc.
vii. As an architect
~ New requirement or law or planning or even new management may be planned by
architect

Duties of a system analyst:

1. He is in charge of the whole system development. System development is steps

followed while coming up a new system.
2. He carries out a feasibility study on whether it is possible to use a computer system to
solve the problems in the organization.
3. Assesses the resources required for development, installation and maintenance of the
system.
4. He prepares reports on proposals that are necessary for the new system and present
them before the management
 5. Checks operations of computed systems and compare actual result against the
expected benefit
6. He coordinates the operations of the new system
7. Trains new users on the system and reviews the performance of the users.
8. He lays down standards and techniques to be observed while using the system e.g
user guide system administration guide
9. Organizing and managing the theme that is involved in system development,
maintenance and review e.g programmers, system designers, systems administrators
and technician.
Note: if you ask the average system analyst to describe and define the work he does,
you will probably receive a vague answer. This is not because his work is particularly
complex or difficult to describe but simply because many system analysts themselves do
not have a clear idea of the structure of their work. Depending on day to day demands,
they follow a series of short term goals.

Qualities of a system analyst:

The ideal system analyst will indeed be a person of unique qualities. Beside basic
technical qualifications, this job demands a person with certain personal qualities for
effectiveness. This is because he deals extensively with people, procedures and
technology. Example of qualities are:

i. Discipline:He should have a disciplined approach to problem solving and apply the
methodologies of system analysis. Examples of methodologies are SDLC, Prototyping
etc
ii. Patience: The system analyst must seek ideas and opinions of others during the
various stages of his work. He must be a good listener, patiently waiting for new ideas
to unfold. He must not jump into conclusion before the other people he is working
with.
iii. Perception: The analyst must be able to discover the fundamental logic of a system,
produce sound plans and appreciate the effects of new facts in planning.
iv. Confidence: He should have confidence while presenting his proposals and reports on
the progress of the system while in development. This will enable the organization
and other bodies to have confidence in his work.
v. Good communication and inter-personal skills: A system analyst work demands the
ability to communicate, express ideas and proposals clearly, both orally and in
 writing. In addition, he needs to be able to get along with different types of people
with different background, attitude and therefore should have the skills that will
enable him to do his work professionally.
vi. Motivation: He must be persistent in overcoming difficulties and other obstacles that
he meets while designing a system. He must keep on redesigning a plan of action in
spite of many set backs
vii. Technical qualification: He should have gone to school and got the skills that relate to
computer systems. He must be trained on computer based processing techniques and
principles. In addition, the analyst should have skills on the latest programming
techniques e.g FoxPro, Database, C++, Pascal, Visual Basic etc.
He should be capable of managing resources, computers, software and other
personnel that work under him. He should be able to manage time well so as to meet
the deadlines.

Skills of a system analyst:

 Problem solving skills.

 Leadership qualities.
 Good communication skills

d) System developer/programmer
 Converting software specification requirement into appropriate programming
languages.
 Writes and tests the source code.
 Observing, testing, diagnosing and fixing faults in the software.
 Training system users on how to use the system.
 Modifying and updating the system.
e) Software project manager
 Creating clear and attainable project objectives.
 Management of the team. The software project manager co-ordinates software
development activities.
 Controlling budget, confirms resources are within budget.
 Performance monitory: monitors performance against the plan.
 Approves project deliverables.
Multiple Choice Questions

1. Top Management is more interested in

A. Day-to-day operations
B. Strategic decisions
C. Tactical decision
D. Both (b) and (c)

Correct answer: D

2. A system investigation may result from

A. An analysis investigation
B. A scheduled systems reviewed
C. A manager's formal request
 D. All of the above

Correct answer: D

3. In the system concepts, the term organization

A. implies structure and order

B. Refers to the manner in which each component functions with other
components of the system
C. Means that parts of the computer system depend on one another
D. Refers to holism of system

Correct answer: A

4. System study involves study of an existing system

A. Documenting the existing system

B. Identifying current deficiencies and establishing new goals
C. All of the above
D. None of the above

Correct Answer: D

5. The step-by-step instructions that solve a problem are called

A. An algorithm
B. A list
C. A plan
D. A sequential structure
E. None of the above

Correct answer: A
6. ------------------------- is an important factor of management information system.
 A. System
B. Data
C. Process
D. All

Correct Answer: A

7. ________________level supply information to strategic tier for the use of top

management.
A. Operational
B. Environmental
C. Competitive
D. Tactical

Correct Answer: D

8. …………… can be defined as data that has been processed into a form that is
meaningful to the recipient and is of real or perceive value in current or
prospective decisions.
A. System
B. Information
C. Technology
D. Service

Correct Answer: B

9. _____________can be defined as most recent and perhaps the most comprehensive

technique for solving computer problems.

A. System Analysis
B. System Data
C. System Procedure
D. System Record

Correct Answer: A
 10. The characteristics of a well-designed system are a) Practical b) Effective c)
Secure d) Reliable e) Flexible f) Economical
A. a, b, c and d
B. a, c, d and e
C. a, b ,c, d and e
D. a, b, c, d, e and f

Correct Answer: D

Group Work Questions

11. Write down the roles of each of the following Information Systems
stakeholders
12. Bidii Company intends to develop a new Information System. Outline four
reasons that could have led to this consideration
13. Explain the importance of system design
14. Differentiate between boundary and environment as used in systems
15. Explain the three management levels and the information needed in each
level