Page 44 - DCAP205_DCAP409_ANALYSIS_AND_DESIGN_OF_INFORMATION_SYSTEMS

Analysis & Design of Information Systems

Notes investigation to analyze the reasons for the request and collect various facts to respond to the
request in a systematic way. Some projects are feasible, while others may not be feasible for
various reasons.
Developing a new information system is one kind of a planned organizational change. The
introduction of a new system includes purchase of new hardware and software, appointment of
skilled persons and/or training of existing staff for using the new system and changes in
management and organization. So, developing a new system requires redesigning the
organization. As an organization always has many projects (concerned with MIS or other business
functions) to do, the management must decide the priority of a system development in order to
streamline the business.

2.3.1 Reasons for Developing New Systems Project

System projects are initiated for different reasons. The most important reasons are:
1. Capability: Business activities are influenced by an organization’s ability to process
transactions quickly and efficiently. Information systems add capability in three ways:
(i) Improved Processing Speed: The inherent speed with which computers process data is
one reason why organisation seek the development of systems projects.
(ii) Increased Volume: Provide capacity to process a greater amount of data, perhaps to
take advantage of new business opportunities.

(iii) Faster Retrieval of Information: Locating and retrieving information from storage. The
ability in conducting complex searches.
2. Control:

(i) Greater Accuracy and Consistency: Carrying out computing steps, including arithmetic,
correctly and consistently.
(ii) Better Security: Safeguarding sensitive and important data in a form that is accessible
only to authorised personnel.
3. Communication:
(i) Enhanced Communication: Speeding the flow of information and messages between
remote locations as well as within offices. This includes the transmission of documents
within offices.
(ii) Integration of Business Areas: Coordinating business activities taking place in separate
areas of an organisation, through capture and distribution of information.
4. Cost:
(i) Monitor Costs: Tracking the costs of labour, goods and overhead is essential to
determine whether a firm is performing a line with expectations-within budget.
(ii) Reduce Costs: Using computing capability to process data at a lower cost than possible
with other methods, while maintaining accuracy and performance levels.
5. Competitiveness:
(i) Lock in Customers: Changing the relationship with and services provided to customers
in such a way that they will not think of changing suppliers.
(ii) Lock out Competitors: Reducing the chances of entering the competitors in the same
market because of good information systems being used in the organization.

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