Systems Analysis - 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.