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The Importance of System Analysis

Updated: Jun 16

The increase of unsuccessful systems lead to several studies about why system development fails. In 1985, DTI report found that “time-scale overruns happens in two-third projects and half of them were over budget”. In 1990, KPMG also stated that “runaway systems concerned over 30% of all major projects”. As a result, that caused many critical issues such as loss of time and money, customer dissatisfaction, and negative market image. The collapse of more information systems in 1990s is a typical illustration of requirements misunderstanding and poor system analysis. Two main reasons related to the failure of information system development are human factors and organizational factors. While human factors emphasize on the role of analyst and end-users, the organizational factors mention about current development methods, organizational issues and objectives. In order for a system to satisfy both factors, it need to be analyzed carefully from the initial meetings with customers talking about system requirements to the system analysis and design phase.

After the system failures crisis, stakeholders realize that system analysis plays a significant role in system building. System analysis includes several important techniques such as data mining, data modeling, process analysis, process modeling, system behavior modeling, and state modeling that gives stakeholder insight into system requirements. Implementing business information system without proper requirements specification often leads to user dissatisfaction, and hence the system inevitably falls into disuse. In order to support system analysis, several modeling languages are created such as BPMN and UML which can be considered two most popular notations for practitioners.


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