Systems Analysis

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SYSTEMS ANALYSIS

During the normal course of doing business, companies engaging in e-commerce are faced with a wide variety of challenges or problems. These vary depending on many factors, including the way a company is structured to profit in the marketplace, the industry in which it operates, legal requirements for tracking or reporting information, and more. A process called systems analysis is used to create new solutions to these challenges, or to improve solutions that already are in place. Solutions normally involve the use of information systems or software applications, which are developed with specific issues or challenges in mind.

Information systems themselves can vary in form and type, and involve various elements like databases, software applications, and computer hardware. Among the different kinds of information systems are transaction processing systems (TPS), which involve the movement of data as it relates to things like payment or inventory; management information systems (MIS), which include databases that managers rely on to evaluate and organize operations; decision support systems (DSS), which are similar to MIS but focus more heavily on supporting a user's actual decision; and office automation systems (OAS), which allow employees to manipulate and distribute data with productivity tools like word processors, e-mail, electronic scheduling, and spreadsheet programs.

Systems like MIS and DSS, which helped e-commerce executives make faster or better-informed decisions, were especially valuable in the early 2000s. At that time, the pace of Internet business was very quick. Combinations of different conditions—including the impact of new technologies, customer demands, government regulations, legal issues, and pressure from investors—changed frequently and could impact the success or failure of a company or industry in a short period of time. TPS systems were another example of critical e-commerce systems. The ability to engage in fast, secure transactions and integrate them with many different areas of an enterprise (including accounting and inventory) was central to its success.

Professionals generally known as systems analysts are responsible for understanding what a company's business challenges are, how they change over time, and how these issues translate to or affect systems. More specifically, systems analysts evaluate data input, flow, processing, storage, and output as related to business challenges. To accomplish this, analysts work with an organization's management team as well as those who currently or eventually will use the solution or application and engage in information gathering and problem solving. As explained in the Journal of Systems Management, "With this information, the systems analyst, working with other MIS personnel, defines the requirements which are used to modify an existing system, or to develop a new system. The systems analyst identifies and evaluates alternative solutions, makes formal presentations, and assists in directing the coding, testing, training, conversions, and maintenance of the proposed system."

HOW SYSTEMS ANALYSIS WORKS

Ideally, system analysis begins by developing an outline or map of the organization and how it functions. According to the Journal of Systems Management, "A Map lets management see how functions are performed and an Analyst see what to do first and where to go afterward. A Map may suggest where productivity improvements might be made and even where an analysis could begin. For example, there may be duplication of effort, or effort not tied to the rest of the business or even similar effort under split management leadership."

After developing a clear picture of a business and the situation in which it operates, analysts draft and present project proposals prior to the beginning of the systems analysis process. Because e-commerce can involve many different business or operating units, especially within a large organization, system projects often require the ultimate approval of a committee, rather than just one person. Included in a good proposal are several different elements, including a detailed description or explanation of the business problem or situation; an explanation of why the problem is important to the organization; several possible solutions; how computerized information systems might be used as a part of a solution; and a list of the individuals who have an interest in or knowledge about the problem or situation.

There are six problem-solving steps involved in producing a new computer information system, collectively known as the systems development life cycle (SDLC). Each step or phase involves different tasks, which may take place over several phases. Additionally, it may be necessary to revert to a previous phase during the analysis process. Although the following is a representative overview of the systems analysis process used by many organizations, much like the general title of systems analyst, the SLDC process may vary from company to company. The first step in SDLC is preliminary investigation, in which the problem is defined and investigated. Next, characteristics of an existing system are evaluated, along with the requirements of the proposed system. A general systems design is then developed, followed by the creation of the new system. System installation, which involves replacing an existing system with the new one, then occurs. Finally, systems evaluation and monitoring take place, with the ultimate goal of enhancing performance and increasing functionality.

FEASIBILITY

One potential problem with any system is that it may become more cumbersome than the problem it is trying to solve, in terms of the amount of resources required to properly maintain and develop it. A system may lead to the development of new problems that, when considered in sum, make its ultimate development a bad idea. Systems analysts often conduct feasibility studies to review factors like the problem or situation itself; costs versus benefits; the needs of users; and the resources required to provide a solution. Depending on the situation, this information may be collected in a number of different ways, including interviews with managers, customers, users, and other employees; questionnaires; monitoring or observing users of existing systems; collecting and reviewing different manuals, reports, and documents; and sometimes simulation or modeling of existing systems. The ultimate goal is to determine which solutions are worth pursuing, and of those, which hold the most potential for the organization.