2 - Formal system analysis stage

Goal Step 1: General Goals

The system must have benefits > costs, produce useful reports, and be easy/flexible to use

Top Management Goals

Executives need to know the short-range and long-range performance of the company

Operating Management Goals

Department managers need daily, weekly, and monthly performance data

Step 2: System Survey

A detailed investigation of the current system to find specific problems

Data Gathering Methods

Reviewing documents, interviewing employees (morale/downtime), questionnaires, and checking internal controls

Step 3: Data Analysis

Takes months to suggest solutions in a final report that may include flowcharts or statistics

Step 4: Feasibility evaluation

If the steering committee allows the process to proceed, the study team performs a detailed investigation of different potential solutions. The study team will evaluate

Technical Feasibility

Evaluation of hardware, software, and personnel skills to see if the system is technically possible

Operational Feasibility

Evaluation of whether the system fits well in or hinders current business processes

Schedule/Legal Feasibility

Checks if the system can meet the target implementation date and all legal requirements (e.g., data protection)

Economic Feasibility

Determining if there is a net benefit where benefits outweigh the costs