A

The Role of the Systems

Analyst
Chapter Outline
■ The Analyst as a Business Problem Solver
■ Systems That Solve Business Problems
■ Required Skills of the Systems Analyst
■ Analysis-Related Careers

Learning Objectives
After reading this chapter, you should be able to:
■ Explain the key role of a systems analyst in business
■ Describe the various types of systems and technologies an analyst might use
■ Explain the importance of technical skills, people skills, and business skills for
an analyst
■ Explain why ethical behavior is crucial for a systems analyst’s career
■ Describe various job titles in the field and places of employment where analysis
and design work is done

1
2 PART 1 ■ An Introduction to Systems Development

OPENING CASE
A Systems Analyst at Consolidated Refineries
Mary Wright thought back about her two-year career as a Something had to be done to increase production and
programmer analyst. She had been asked to talk to visiting reduce costs. It would be years before an additional refin-
computer information system (CIS) students about life on ery could be built, and additional crude oil supplies from
the job. “It seems like yesterday that I finally graduated new oil fields were years away. The only option for
from college and loaded up a U-Haul to start my new job Consolidated’s growth and increased profits was to do a
at Consolidated,” she began. better job with the plants and supplies it had. So, top
Consolidated Refineries is an independent petroleum executives decided to make a major commitment to
refining company in west Texas. Consolidated buys crude implementing the IPCS project, with the goal of radically
oil from freelance petroleum producers and refines it into improving capacity planning and process monitoring.
gasoline and other petroleum products for sale to indepen- Everyone at Consolidated also wanted access to this
dent distributors. Demand for refined petroleum products information anywhere and anytime.
had been increasing rapidly, and Consolidated was producing “It seemed like the IPCS project was the only thing
at maximum capacity. Capacity planning systems and refin- the company cared about,” continued Mary. “I was
ing operations systems were particularly important computer assigned to the project as the junior analyst assisting
information systems for Consolidated because careful the project manager, so I got in on everything.
planning and process monitoring resulted in increased Suddenly, I was in meeting after meeting, and I had to
production at reduced costs. This increasing demand and digest all kinds of information about refining and distribu-
other competitive changes in the energy industry made infor- tion, as if I were a petroleum engineer. I met with produc-
mation systems particularly important to Consolidated. tion supervisors, suppliers, and marketing managers to
Mary continued her informal talk to visiting students. learn about the oil business—just as if I were taking busi-
“At first, I did programming—mainly fixing things that end ness school courses. I traveled all over to visit oil fields
users wanted done. I completed some training on Java and pipelines—including a four-day trip to Alaska on about
and object-oriented analysis to round out my experience. two days’ notice! I interviewed technology vendors’
The job was pretty much what I had expected at first— representatives and consultants who specialized in capac-
until everything went crazy over the IPCS project.” ity planning and process control systems. I’ve been
The Integrated Process Control System (IPCS) project spending a lot of time at my computer too, writing
was part of the company’s information systems plan reports, letters, and memos—not programming!
drawn up the year before. Edward King, the CEO of “We’ve been working on the project for seven
Consolidated Refineries, had pushed for more strategic months now, and every time I turn around, Mr. King, our
planning at the company from the beginning, including CEO, is saying something about how important the IPCS
drawing up a five-year strategic plan for information sys- project is to the future of the company. He repeats the
tems. The IPCS development project was scheduled to story to employees and to the stockholders. Mr. King
begin in the third or fourth year of the plan, but suddenly, attends many of our status meetings, and he even sat
priorities changed. Demand for petroleum products had next to me the day I presented a list of key requirements
never been higher, and supplies of crude oil were for the system to the top management team.
becoming scarce. At the same time, political pressure “This isn’t at all the way I thought it would be.”
was making price increases an unpopular option.

Overview
As Mary Wright’s story about Consolidated Refineries illustrates, information
systems with strategic value are critical to the success of business organizations
and their top executives. Most of the activities and tasks completed by a system
developer, even a new graduate like Mary, involve much more than program-
ming. Systems analysis is really more about understanding the business and its
goals and strategies, defining requirements for information systems that support
those goals and strategies, and supporting the business. It isn’t at all what most
college students imagine it to be.
People today are attracted to information systems careers because informa-
tion technology (IT) can have a dramatic impact on productivity and profits.
 CHAPTER A ■ The Role of the Systems Analyst 3

Most of you regularly use the latest technologies for online purchases and reser-
vations, online auctions and customer support, and e-mail and wireless messag-
ing. But it isn’t the technology itself that increases productivity and profits; it is
the people who develop information system solutions that harness the power of
the technology that makes these benefits possible. The challenges are great
because more and more people expect to have information systems that provide
access to information anywhere and anytime.
The key to successful system development is thorough systems analysis and
design to understand what the business requires from the information system.
systems analysis the process of under- Systems analysis means understanding and specifying in detail what the infor-
standing and specifying in detail what the mation system should accomplish. Systems design means specifying in detail
information system should accomplish how the many components of the information system should be physically
systems design the process of specify- implemented. This text is about systems analysis and design techniques used by
ing in detail how the many components of the a systems analyst, a business professional who develops information systems.
information system should be physically This online chapter describes the world of the systems analyst—the nature
implemented of the work, the knowledge and skills that are important, and the types of sys-
systems analyst a business professional tems and special projects an analyst works on. First, we define the analyst’s
who uses analysis and design techniques to work as problem solving for an organization, so the problem-solving process
solve business problems by using information the analyst follows is described. Next, because most problems an analyst works
technology on are solved in part by an information system, this chapter reviews the types
of information systems that businesses use. A systems analyst is a business pro-
fessional who requires extensive technical, business, and people knowledge and
skills, so these skills are reviewed next. Then, we survey the variety of work-
places and positions in which analysis work is done. An analyst’s work is really
not at all the way most CIS students think it will be.

The Analyst as a Business Problem Solver

First and foremost, systems analysis and design is a practical field grounded in
time-tested and rapidly evolving knowledge and techniques. Analysts must cer-
tainly know about computers and computer programs. They possess special
skills and develop expertise in programming. But they must also bring to the
job a fundamental curiosity to explore how things are done and the determina-
tion to make them work better.
Developing information systems isn’t just about writing programs.
Information systems are developed to solve problems for organizations, as the
opening case study demonstrated, and a systems analyst is often thought of as a
problem solver rather than a programmer. So, what kinds of problems does an
analyst typically solve?
■ Customers want to order products any time of the day or night. So, the
problem is how to process those orders around the clock without adding to
the selling cost.
■ Production needs to plan very carefully the amount of each type of product
to produce each week. So, the problem is how to estimate the dozens of
parameters that affect production and then allow planners to explore differ-
ent scenarios before committing to a specific plan.
■ Suppliers want to minimize their inventory holding costs by shipping parts
used in the manufacturing process in smaller daily batches. So, the problem
is how to order in smaller lots and accept daily shipments to take advantage
of supplier discounts.
■ Marketing wants to better anticipate customer needs by tracking purchasing
patterns and buyer trends. So, the problem is how to collect and analyze
information on customer behavior that marketing can put to use.
■ Management continually wants to know the current financial picture of the
company, including profit and loss, cash flow, and stock market forecasts.
4 PART 1 ■ An Introduction to Systems Development

So, the problem is how to collect, analyze, and present all the financial
information management wants.
■ Employees demand more flexibility in their benefits programs, and manage-
ment wants to build loyalty and morale. So, the problem is how to process
transactions for flexible health plans, wellness programs, employee invest-
ment options, retirement accounts, and other benefit programs offered to
employees.
Information system developers work on problems such as these—and many
more. Some of these problems are large and strategically important. Some are
much smaller, affecting fewer people but important in their own way. All pro-
gramming for the information system that solves the business problem is impor-
tant, but solving each of these problems involves more than programming.
How does an analyst solve problems? Systems analysis and design focuses
on understanding the business problem and outlining the approach to be taken
to solve it. Figure A-1 shows a general approach to problem solving that can
be adapted to solving business problems by using information technology.
Obviously, part of the solution is a new information system, but that is just
part of the story.
The analyst must first understand the problem and learn everything possible
about it: who is involved, what business processes come into play, and what
other systems would be affected by solving the problem. Then, the analyst
needs to confirm for management that the benefits of solving the problem out-
weigh the costs. Sometimes, it would cost a fortune to solve the problem, so it
might not be worth solving.
If solving the problem is feasible, the analyst defines in detail what is
required to solve it: what specific objectives must be satisfied, what data needs
to be stored and used, what processing must be done to the data, and what out-
puts must be produced. What needs to be done must be defined first. How it
will be done isn’t important yet.
After detailed requirements are defined, the analyst develops a set of possible
solutions. Each possible solution (an alternative) needs to be thought through
carefully. Usually, an information system alternative is defined as a set of choices
about physical components that make up an information system—how it will be
done. Many choices must be made, involving questions such as these:
■ What are the needed components?
■ What technology should be used to build the different components?
■ Where are the components located?
■ How will components communicate over networks?
■ How are components configured into a system?
■ How will people interact with the system?
■ Which components are custom made and which are purchased from
vendors?
■ Who should build the custom-made components?
■ Who should assemble and support the components?
Many different alternatives must be considered, and the challenge is to
select the best—that is, the solution with the fewest risks and most benefits.
Alternatives for solving the problem must be cost effective, but they must also
be consistent with the corporate strategic plan. Does the alternative contribute
to the basic goals and objectives of the organization? Will it integrate seamlessly
with other planned systems? Does it use technology that fits the strategic direc-
tion that management has defined? Will end users be receptive to it? Analysts
must consider many factors and make tough decisions.
After the systems analyst has determined in consultation with management
which alternative to recommend and management has approved the recommen-
dation, the design details must be worked out. Here, the analyst is concerned
 CHAPTER A ■ The Role of the Systems Analyst 5

FIGURE A-1 Research and

The analyst’s approach to problem understand the
solving problem

Verify that the

benefits of solving
the problem
outweigh the costs

Define the
requirements for
solving the problem

Develop a set of
possible solutions
(alternatives)

Decide which
solution is best,
and make a
recommendation

Define the details of

the chosen solution

Implement the
solution

Monitor to make
sure that you obtain
the desired results

with creating a blueprint (design specifications) for how the new system will
work. Systems design specifications describe the construction details of all parts
of the system, including databases, user interfaces, networks, operating proce-
dures, conversion plans, and, of course, program modules.
Thus far, we haven’t mentioned programming, even though we are near the
end of the steps outlined in Figure OS1-1. Inexperienced developers have a ten-
dency to rush into programming without completing the earlier steps.
Sometimes, early programming may be needed to evaluate technical feasibility
or to help users understand how a completed system might look and behave.
But most of the time, early programming results in wasted time and money
because key system requirements or design constraints aren’t well understood.
Building a system based on incomplete or misunderstood requirements ensures
6 PART 1 ■ An Introduction to Systems Development

that the project will be overbudget, late, and will deliver a system that doesn’t
fully solve the problems it was intended to address. An information system can
cost a lot of money to build and install—perhaps millions of dollars. It isn’t
unusual for dozens of programmers to work on programs to get a system up
and running, and those programmers need to know exactly what the system is
to accomplish; thus, detailed specifications are required. This text presents the
tools and techniques an analyst uses during system development to create the
detailed specifications. Some of these specifications are the result of systems
analysis, and some are the result of systems design.
Although this text is oriented toward potential systems analysts, it also pro-
vides a good foundation for others who will deal with business problems that
could be solved with the help of an information system. Managers throughout
business must become more and more knowledgeable about using information
technology to solve business problems. Many general business students take a
systems analysis and design course to round out their background in two-year
and four-year degree programs. Many graduate programs, such as master of
business administration (MBA) and master of accountancy (MAcc) programs,
have technology tracks with courses that use this book. Remember that systems
analysis and design work isn’t just about developing systems; it is really about
solving business problems by using information technology. So, even though
they never build information systems, managers need to gain expertise in these
concepts to be effective in their jobs.

Systems That Solve Business Problems

We described the systems analyst as a business problem solver. We said that the
solution to the problem is usually an information system. Before we talk about
how you learn to be a systems analyst, let us quickly review some information
systems concepts.

Information Systems
system a collection of interrelated compo- A system is a collection of interrelated components that function together to
nents that function together to achieve some achieve some outcome. An information system is a collection of interrelated
outcome components that collect, process, store, and provide as output the information
information system a collection of needed to complete a business task. Completing a business task is usually the
interrelated components that collect, process, “problem” we talked about earlier.
store, and provide as output the information For example, a payroll system collects information on employees and their
needed to complete business tasks work, processes and stores that information, and then produces paychecks and
payroll reports (among other things) for the organization. A sales management
system collects information about customers, sales, products, and inventory
levels. It enables customers and sales personnel to create and modify sales
orders, select payment methods, and output sales information for such tasks as
generating financial statements, computing bonuses, and scheduling production.
What are the interrelated components of an information system? You
can think about components in several ways. Any system can have subsystems.
subsystem a system that is part of a A subsystem is a system that is part of another system, so subsystems might
larger system be one way to think about the components of a system. For example, a sales
management system might be one subsystem of a customer relationship man-
agement (CRM) system. Another CRM subsystem might enable customers to
view past and current orders, track order fulfillment and shipping, and modify
their account information. A third CRM subsystem might maintain the prod-
uct catalog database and provide Web-based access to product specifications
and manuals. A fourth CRM subsystem might provide technical support via
telephone and a Web site, with detailed tracking of customer support requests
and related reporting to improve call center management and product quality.
When looking at the business as a single system, the CRM system is only one
 CHAPTER A ■ The Role of the Systems Analyst 7

FIGURE A-2
Information systems and subsystems All Information Systems

Customer relationship management system

Sales Account
management management
system system

Product Technical
information support
system system

Accounting and financial management system

Manufacturing management system

Human resources management system

subsystem among others, including the accounting and financial management

system, the manufacturing management system, and the human resources man-
agement system.
The view of a system as a collection of subsystems is very useful to the
analyst. It enables the analyst to focus attention on a single area of a business or
organization, a group of related areas, or the interfaces among areas. Figure A-2
shows how one system can be divided, or decomposed, into subsystems, which in
turn can be further decomposed into subsystems. This approach to dividing a
functional decomposition dividing a system into components is referred to as functional decomposition.
system into components based on subsystems Another way to think about the components of a system is to list the parts
that are further divided into smaller subsystems that interact. For example, an information system includes hardware, software,
inputs, outputs, data, people, and procedures. This view is also very useful to
the analyst. These interrelated components function together in a system, as
shown in Figure A-3.
Every system has a boundary between it and its environment. Any inputs or
system boundary the separation outputs must cross the system boundary. Defining these inputs and outputs is
between a system and its environment that an important part of systems analysis and design. In an information system, peo-
inputs and outputs must cross ple are also key components, and these people do some of the system’s work. So,
automation boundary the separation there is another boundary that is important to a systems analyst: the automation
between the automated part of a system and boundary. On one side of the automation boundary is the automated part of the
the manual part of a system system, where work is done by computers. On the other side is the manual part
of the system, where work is done by people (see Figure A-4).

Types of Information Systems

customer relationship management Because organizations perform many different types of activities, many types of
(CRM) system a system that supports information systems exist—all of which can be innovative and use the latest
marketing, sales, and service operations
involving direct and indirect customer
technologies. The types of information systems found in most businesses are
interaction shown in Figure A-5. You learned about these types of systems in your intro-
ductory information systems course, so we briefly review only the most common
supply chain management (SCM) ones here.
system a system that seamlessly
integrates product development, product
A customer relationship management (CRM) system incorporates pro-
acquisition, manufacturing, and inventory cesses that support marketing, sales, and service operations involving direct and
management indirect customer interaction. A supply chain management (SCM) system
8 PART 1 ■ An Introduction to Systems Development

FIGURE A-3
Information systems and components Customer support system

Hardware

Inputs Outputs

People Software

Data Procedures

FIGURE A-4
The system boundary versus the Environment surrounding the system
automation boundary

Manual part of the system—

tasks completed by people
System
boundary

Automated part of
Automation the system—tasks completed
boundary by the computer

incorporates processes that seamlessly integrate product development, product

acquisition, manufacturing, and inventory management. Both systems are
important because they are part of the interface between the organization and
key external entities. Both types of systems have had rapid changes over the last
two decades, including expanded scope and functionality, significant application
of Web-based technologies, and increased integration across organizational
boundaries. For example, most modern organizations now manage sales and
service via a single system, enable Web-based ordering and account management
via consumer-oriented Web sites, and employ automated interfaces for business
customers that directly connect one organization’s SCM to other organizations’
accounting and financial manage- CRMs. Integration across organizational boundaries has increased the speed
ment (AFM) system a system that and efficiency of business transactions and enabled such modern business prac-
records accounting information needed to
produce financial statements and other reports
tices as just-in-time delivery of raw materials in manufacturing organizations
used by investors and creditors and direct shipment from manufacturers to end users by third-party resellers.
Other systems that interface with external entities include accounting and
human resource management
(HRM) system a system that supports
financial management (AFM) systems and human resource management
such employee-related tasks as payroll, (HRM) systems. AFM systems record accounting information needed to pro-
benefits, hiring, and training duce financial statements and other reports used by investors and creditors.
 CHAPTER A ■ The Role of the Systems Analyst 9

FIGURE A-5
Types of information systems Customers Investors

Customer Accounting
Knowledge
relationship and financial
management
management management
system
system system

Collaboration Business
support intelligence
system Database system

Human
Manufacturing Supply chain
resource
management management
management
system system
system

Employees Suppliers

AFM systems also include such financial functions as cash management, cash
flow forecasting, and securities management. HRM systems include processes
concerned with employees, such as payroll, health insurance, pensions, hiring,
and training. AFM and HRM systems are partly governed by external regula-
tions and must frequently interact with regulatory authorities in such areas as
manufacturing management taxes, public financial markets, and occupational health and safety.
system a system that controls internal Organizations also have information systems with few or no interactions with
production processes that turn raw materials
external entities. A manufacturing management system controls internal pro-
into finished goods
duction processes that turn raw materials into finished goods. A knowledge
knowledge management system management system (KMS) supports the storage of and access to documents
(KMS) a system that supports the storage from all parts of the organization. It enables rapid communication of policies,
of and access to documents from all parts of
procedures, and data and helps ensure continuity of knowledge despite changes
the organization
in personnel assignments.
collaboration support system A collaboration support system (CSS) enables geographically distrib-
(CSS) a system that enables geographically uted personnel to collaborate on projects and tasks. CSSs encompass a vari-
distributed personnel to collaborate on projects
ety of technologies, including voice communications, videoconferencing,
and tasks
project management and scheduling tools, and Wiki technology that enables
business intelligence system a sys- Web-based management of documents by project participants. A business
tem that supports strategic planning and intelligence system supports strategic planning and executive decision mak-
executive decision making
ing. It enables users to organize internal and external data about customers,
suppliers, competitors, and economic conditions for use in statistical analysis,
simulations, and other forms of planning.
enterprise resource planning Today, many companies use enterprise resource planning (ERP) systems
(ERP) a process in which an organization that incorporate most or all of the system types described previously in this sec-
commits to using an integrated set of software tion. Such software vendors as SAP, Oracle, and IBM offer comprehensive
packages for key information systems
packages for companies in specific industries. To adopt an ERP solution, the
company must carefully study its existing processes and information needs and
then determine which ERP vendor provides the best match. ERP systems are so
complex that an organization must often commit nearly everyone in the infor-
mation systems department and throughout the organization to research
10 PART 1 ■ An Introduction to Systems Development

options. They are also very expensive—in initial costs and support costs.
Extensive change is involved for management and for staff. After the decision is
made to adopt an ERP system, it is very difficult to return to the old ways of
doing business or to the old systems.
An important aspect of all types of information systems is data integration. For
example, order data originally captured by the CRM system is needed by the SCM
system to drive purchasing, the manufacturing management system to drive produc-
tion scheduling, the AFM system for accounting and to help determine near-term
financing requirements, and the business intelligence system to drive estimates of
future sales and profitability. Data sharing among all these systems is made possible
database a centrally managed collection by databases—centrally managed collections of data that can store large amounts
of data that is accessible to many users and of information and make it accessible to many users and systems at the same time.
systems at the same time

Required Skills of the Systems Analyst

Systems analysts (or any professionals doing systems analysis and design work)
need a great variety of special skills. First, they need to be able to understand
how to build information systems, which requires quite a bit of technical knowl-
edge. Then, as discussed previously, they have to understand the business they
are working for and how the business uses each of the types of systems. Finally,
the analysts need to understand quite a bit about people and the way they
work. People are the source of information about requirements, the labor that
builds systems, and the ultimate users of the information system. Figure A-6
summarizes the analyst’s knowledge and skill requirements.

Technical Knowledge and Skills

It shouldn’t be surprising that a systems analyst needs technical expertise. The
scope, breadth, and depth of technology employed in medium- and large-scale
organizations are vast. A company’s “simple” online order-processing applica-
tion might involve a system with thousands of users spread over hundreds of
locations. The database might contain hundreds of tables with millions of
records in each table. The system might have taken years to construct, cost mil-
lions of dollars, and be supported by global networks, hundreds of servers, and
dozens of support staff. If the system fails for even an hour, the company could
lose millions of dollars in sales and disrupt its entire supply chain. Such a system

FIGURE A-6
Required skills of the systems analyst Knowledge and skills required of a systems analyst

Technical Technical
knowledge skills

Business Business
knowledge skills

People People
knowledge skills
 CHAPTER A ■ The Role of the Systems Analyst 11

is a critical business resource, so the staffers that support and maintain it work
in round-the-clock shifts and are on call day and night in case of a problem.
The importance of technology to modern organizations can’t be overstated.
Even if an analyst isn’t involved in such activities as programming, network
design, or hardware configuration, it is still crucial to have an understanding of
different types of technology: what they are used for, how they work, and how
they are evolving. No one person can be an expert at all types of technology;
there are technical specialists to consult for the details. But a systems analyst
should understand the fundamentals about the following:
■ Computers and how they work
■ File, database, and storage hardware and software
■ Input and output hardware and software
■ Computer networks and protocols
■ Programming languages, operating systems, and utilities
■ Communication and collaboration technology such as digital telephones,
videoconferencing, and Web-based document management systems
Just as an organization’s business environment continually changes, so does
the technology used for its information systems. The rapid change in technology
often drives other needed changes. Thus, all participants in information system
development should upgrade their knowledge and skills continually. Those who
don’t will be left behind.
A systems analyst also needs to know a lot about tools and techniques for
tools a software application that assists developing systems. Tools are software products that are used to develop analy-
developers in creating models or other sis and design specifications and completed system components. Some tools used
components required for a project in system development include:
■ Such software packages as Intuit QuickBooks, Microsoft Access, and Adobe
Dreamweaver that can be used to implement small systems or develop
subsystems
■ Integrated development environments (IDEs), such as Oracle JDeveloper
and Microsoft Visual Studio, that support program development, database
design, software testing, and system deployment
■ Computer-aided visual modeling tools, such as Rational XDE Modeler,
Visible Analyst, and Embarcadero Describe, that help analysts create,
store, modify, and manage system specifications and sometimes generate
programs, databases, Web-based interfaces, and other software
components
■ Automated testing tools, configuration management tools, software library
management tools, documentation support tools, project management tools,
and so on
techniques strategies for completing Techniques are strategies for completing specific system development activi-
specific system development activities ties. How do you plan and manage a system development project? How do you
define requirements? How do you design user interactions by using design princi-
ples and best practices? How do you complete implementation and testing? How
do you install and support a new information system? Much of this text explains
how to use specific techniques for project planning, defining requirements, and
designing system components. But it also covers some aspects of implementation
and support. Some examples of techniques include:
■ Project planning techniques
■ Cost/benefit analysis techniques
■ Interviewing techniques
■ Requirements modeling techniques
■ Architectural design techniques
■ Network configuration techniques
■ Database design techniques
12 PART 1 ■ An Introduction to Systems Development

Business Knowledge and Skills

Other knowledge and skills that are crucial for an analyst include those that
apply to understanding business organizations in general. After all, the problem
to be solved is a business problem. What does the analyst need to know? The
following are examples:
■ What business functions do organizations perform?
■ How are organizations structured?
■ How are organizations managed?
■ What type of work goes on in organizations (finance, manufacturing, mar-
keting, customer service, and so on)?
Systems analysts benefit from a fairly broad understanding of businesses in
general, so they typically study business administration in college. In fact, com-
puter information systems (CIS) or management information systems (MIS)
majors are often included in a School of Business for that reason. The account-
ing, marketing, management, and operations courses taken in a CIS or MIS
degree program serve a very important purpose of preparing the graduate for
the workplace. Such project management techniques as planning, scheduling,
budgeting, feasibility analysis, and management reporting are particularly
important.
Systems analysts also need to understand the type of organization for which
they work. Some analysts specialize in a specific industry for their entire career—
perhaps in manufacturing, retailing, financial services, or aerospace. The reason
for this business focus is simple: It takes a long time to understand the problems
of a specific industry. An analyst with deep understanding of a specific industry
can solve complex problems for companies in the industry.
Familiarity with a specific company also provides important guidance on
system needs and changes. Often, just knowing the people who work for a com-
pany and understanding subtleties of the company culture can make a big differ-
ence in the effectiveness of an analyst. It takes years of experience working for a
company to really understand what is going on. The more an analyst knows
about how an organization works, the more effective he or she can be. Some
specifics the analyst needs to know about the company include:
■ What the specific organization does
■ What makes it successful
■ What its strategies and plans are
■ What its traditions and values are

People Knowledge and Skills

Interpersonal skills are perhaps the analyst’s most important skills because
analysts rely on others, including managers, users, programmers, technical
specialists, customers, and vendors, to take a system from initial idea to final
implementation. The analyst is a translator for all project participants, translat-
ing business objectives into functional requirements, user needs into system
specifications, and technical jargon and details into terms that nontechnical
personnel can easily understand. The analyst must be an effective communicator
in many contexts, including conversations, interviews, technical reviews, and
formal presentations.
Required interpersonal skills go well beyond oral and written communica-
tion. For example, the analyst must develop rapport with users who may be
resistant to change, negotiate with management for such resources as budget,
time, and personnel, and manage development personnel with many different
skills, capabilities, and attitudes. The analyst must be an effective teacher, men-
tor, confidant, collaborator, manager, and leader, shifting easily among those
roles many times over the course of a typical work day. In an increasing
 CHAPTER A ■ The Role of the Systems Analyst 13

multinational environment, the analyst must effectively interact with people of

diverse backgrounds, customs, and beliefs.
All these interpersonal skills are critical to project success. The wrong sys-
tem is acquired or constructed when business and user requirements are misun-
derstood or ignored. Projects fail without support from managers, users, and
development staff. Critical subsystems don’t interact correctly when technical
specifications are incorrectly communicated or documented. The development
team can’t adapt to new information and change without effective feedback
among all project participants.

A Few Words about Integrity and Ethics

One aspect of a career in information systems that students often underestimate
is the importance of personal integrity and ethics. A systems analyst is asked to
look into problems that involve information from many different parts of an
organization. Especially if it involves individual employees, the information
might be private, such as salary, health, and job performance. The analyst must
have the integrity to keep this information private.
The problems the analyst works on can also involve confidential corporate
information, including proprietary information about products or planned
products, strategic plans or tactics, and even top secret information involving
government military contracts. Sometimes, a company’s security processes or
specific security systems can be involved in the analyst’s work. Analysts are
expected to uphold the highest ethical standards when it comes to private
proprietary information—whether the analysts are employees or outside
consultants.
Ethics and integrity also include follow-through on commitments, dealing
directly with mistakes and gaps in relevant knowledge and skills, and practicing
open and honest communication. Because an analyst is a pivotal member of the
development team, his or her lack of follow-through or task completion can
cause problems that reverberate throughout the project. No one can be highly
skilled in every aspect of system development across all application areas and
organizational contexts. An analyst must take honest stock of his or her
strengths, weaknesses, and performance as well as ask for needed help and
resources and be ready to provide the same to others. The analyst must also bal-
ance organizational privacy needs and the reluctance of some project partici-
pants to provide complete information with the improved outcomes that arise
from the free exchange of information and ideas. It is a difficult balance to
strike but one that is critical to project success.

Analysis-Related Careers
Employment in the fields of information systems and computer technology
spans a wide variety of skills, organizations, and roles. Rapid changes in tech-
nology, business practices, and the structure of the global economy have
changed related jobs. Typical information system graduates of the late 20th century
were employed as programmer analysts. Job tasks consisted primarily of pro-
gramming, with some analysis and design. As employees moved “up the lad-
der,” the mix of activities changed, the breadth and importance of analysis and
design activities increased, and supervisory responsibilities for maintenance and
development project teams were gradually added. Employees typically worked
within a dedicated information systems department of a business or government
organization or for a company that developed and maintained information sys-
tems under contract to other organizations. The “career ladder” was usually
well defined, and skills were easily transferred among jobs.
The employment picture is much more complex in the 21st century. The
number of programmer analysts employed by “brick and mortar” companies
has decreased due to increased productivity and outsourcing. Many software
14 PART 1 ■ An Introduction to Systems Development

development jobs have shifted to companies that produce and sell ERP software,
and many of those companies have moved some or all operations out of North
America and Western Europe to India, China, and countries of the old Soviet
bloc. Given the significant changes that have occurred, is there really a need for
analysis and design skills and are there any related jobs in North America and
Western Europe?
The answer is yes, but the number and nature of the jobs, their titles, and
the organizations that fill those positions are much more complex than in the
past. Despite the widespread use of ERP software, many businesses still have
smaller in-house development staffs that concentrate on areas of strategic impor-
tance, competitive advantage, and unique firm requirements. In-house develop-
ment, including analysis and design, is especially common in security-sensitive
industries, national defense, and research and development in national laborato-
ries. Thus, the employment of analysts and software developers within tradi-
tional industries continues but at a slower pace than in the past.
Changes in software development, technology, and business practices have
created many new career opportunities for analysts, including:
■ Sales and support of ERP software
■ Business analysts for user organizations
■ Auditing, compliance, and security
■ Web development
Companies that produce and sell ERP software have become a significant
part of the information systems employment picture. Large companies, such as
SAP, Oracle, and IBM, have significant ERP market share, although there are
many smaller and more specialized competitors. Selling and supporting ERP
software require many analysis and design skills. ERP systems are complex com-
binations of hardware and software components. Determining the component
mix that best matches a particular customer and deploying and supporting that
solution requires considerable analysis and design skills. Thus, the job of
account representative for many ERP firms requires considerable skills in analy-
sis and sometimes in design. In addition, ERP firms employ many analysts and
designers to support account representatives and to continually improve their
products to match changing technology and customer needs.
User organizations in “line areas,” such as finance, customer service, and
logistics, often employ personnel with significant analysis and design responsibili-
ties. These employees evaluate changing business needs, redesign business pro-
cesses to better satisfy those needs, and research, evaluate, purchase, deploy, and
support new technology to support the redesigned processes. They often work
closely with ERP firms and act as user representatives and contract managers for
their employers. Although such a position entails many different skills, analysis
and design skills are essential. Unlike traditional programmer analyst jobs, these
positions are difficult to outsource and less likely to be moved offshore, although
they are often globally distributed in large multinational organizations.
Accounting is an area of rapid job growth for information systems profes-
sionals, especially within large accounting and auditing firms and within the
accounting and internal audit staffs of their clients. The Sarbanes-Oxley Act in
the United States—and similar legislation and regulation in other countries—
requires publicly traded companies to continually evaluate the adequacy of
their financial reporting and internal control systems. Auditors must also cer-
tify the adequacy of business processes and evaluate whether the firm is at
risk of near-term failure due to financial, legal, market, or other problems.
Because businesses rely heavily on automated systems to support business pro-
cesses and financial reporting, accountants and auditors work closely with
technical personnel who understand those systems. The core skill set required
for those jobs is analysis and design. Employees with experience and skills in
accounting and information systems are in high demand.
 CHAPTER A ■ The Role of the Systems Analyst 15

As Web technology has permeated modern organizations, the demand for

employees with related skills has skyrocketed. Most medium- and large-scale
organizations have in-house staffers that develop and maintain Web sites, build
Web-based application software, and serve as internal Web consultants to other
parts of the organization. Many consulting firms specialize in developing and
maintaining a Web presence for other organizations. Analysis and design skills
are an important part of developing and maintaining Web-based applications
and Web presence. To employ such systems to maximal advantage, developers
must analyze business needs and design appropriate systems deployed with
appropriate technology.
As you have probably surmised by now, career opportunities for analysts
and people with significant analysis and design skills are as varied as the related
job titles and descriptions. Here are some job titles you might encounter:
■ Programmer analyst
■ Business systems analyst
■ System liaison
■ End-user analyst
■ Business consultant
■ Systems consultant
■ Systems support analyst
■ Systems designer
■ Software engineer
■ System architect
■ Web architect
■ Webmaster
■ Web developer
Sometimes, systems analysts might also be called project leaders or project
managers. Be prepared to hear all kinds of titles for people who are involved in
analysis and design work.
In sum, the career prospects for analysts are bright, but the nature of related
jobs, their location, and the typical career development path for analysts and
other information system professionals has changed significantly over the last
two decades. As in many other areas of the economy, large numbers of employ-
ees doing similar tasks for a single company is no longer the norm. Similar tasks
are now more automated and more dispersed, resulting in jobs in a greater vari-
ety of organizations with broader responsibilities and rapidly changing require-
ments. Analysis and design skills are at the core of many of these new jobs.
Employees who can understand business processes, user needs, and the technol-
ogy that supports those processes and needs are in high demand. Continuing
penetration of information technology into every aspect of modern organiza-
tions ensures that demand will be strong far into the future.

Chapter Summary
A systems analyst is someone who solves business A system is a collection of interrelated components
problems by using information systems technology. that function together to achieve some outcome.
Problem solving means looking into the problem in Information systems, like other systems, contain compo-
great detail, understanding everything about the problem, nents, and an information systems outcome is the solution
generating several alternatives for solving the problem, to a business problem. Information systems components
and then picking the best solution. Information systems can be thought of as subsystems that interact or as
are usually part of the solution, and information systems hardware, software, inputs, outputs, data, people, and
development is much more than writing programs. procedures. Many different types of systems solve
16 PART 1 ■ An Introduction to Systems Development

organizational problems, including customer relationship people knowledge and skills. Integrity and ethical behav-
management systems, supply chain management systems, ior are crucial to the success of the analyst. Analysts
human resource management systems, manufacturing encounter a variety of technologies that often change
management systems, accounting and financial manage- rapidly. Systems analysis and design work is done by
ment systems, and purchased software that integrates people with a variety of job titles—not only systems
these systems—often referred to as enterprise resource analyst but programmer analyst, systems consultant,
planning systems. In addition, organizations use collabora- systems engineer, and Web developer, among others.
tion support systems and business intelligence systems. Analysts also work for consulting firms, as independent
A systems analyst needs broad knowledge and a contractors, and for companies that produce software
variety of skills, including technical, business, and packages.

Key Terms
accounting and financial knowledge management
management (AFM) systems 8 system (KMS) 9
automation boundary 7 manufacturing management
business intelligence system 9 system 9
collaboration support system subsystem 6
(CSS) 9 supply chain management
customer relationship (SCM) system 7
management (CRM) system 7 system 6
databases 10 system boundary 7
enterprise resource planning (ERP) 9 systems analysis 3
functional decomposition 7 systems analyst 3
human resource management (HRM) systems design 3
systems 8 techniques 11
information system 6 tools 11

Review Questions
1. Give an example of a business problem. 7. List four types of tools the analyst needs to use to
2. What are the main steps to follow when solving a develop systems.
problem? 8. List five types of techniques used during system
3. Define system. development.
4. Define information system. 9. What are some of the things an analyst needs to under-
stand about businesses and organizations in general?
5. What types of information systems are found in
most organizations? 10. What are some of the things an analyst needs to
understand about people?
6. List the six fundamental technologies an analyst
needs to understand. 11. List 10 job titles that involve analysis and design work.

Problems and Exercises

1. Describe a business problem your university has 3. Many different types of information systems were
that you would like to see solved. How can described in this chapter. Give an example of each
information technology help solve it? type of system that might be used by a university.
2. Describe how you would go about solving a prob- 4. What is the difference between technical skills and
lem you face. Is the approach taken by a systems business skills? Explain how a computer science
analyst, as described in the text, any different? graduate might be strong in one area and weak in
 CHAPTER A ■ The Role of the Systems Analyst 17

another. Discuss how the preparation for a CIS or 10. Explain why a commitment to enterprise resource
MIS graduate is different from that for a computer planning (ERP) would be very difficult to undo after
science graduate. it has been made.
5. Explain why an analyst needs to understand how 11. It is important to understand the nature of the
people think, how they learn, how they react to business you work for as an analyst. Contact some
change, how they communicate, and how they work. information systems developers and ask them about
6. Who needs greater integrity to be successful: a their employers. Do they seem to know a lot about
salesperson or a systems analyst? Or does every the nature of the business? If so, how did the
working professional need integrity and ethical developers gain that knowledge; for example, was it
behavior to be successful? Discuss. through self-study, formal training or course work,
or on-the-job training via participation in system
7. Explain why developing a small information system
development projects? What are the developers’
for use by a single department requires different
plans for the future; for example, do the plans
skills than developing a large information system
involve more training, more courses, or working on
with many internal and external users.
projects in specific business areas?
8. How might working for a consulting firm for a
12. Think about the type of position you want (for
variety of companies make it difficult for the
example, working for a specific company, working
consultant to understand the business problem a
for a consulting firm, or working for a software
particular company faces? What might be easier for
vendor). Do some research on each job by looking
the consultant to understand about a business
at companies’ recruiting brochures or Web sites.
problem?
What do they indicate are the key skills they look
9. Explain why a strategic information systems for in a new hire? Are there any noticeable differ-
planning project must involve people outside the ences between consulting firms and the other
information systems department. Why would a con- organizations?
sulting firm be called in to help organize the project?

Case Study

Association for Information Technology impresses me if they seem to appreciate how a hospital
Professionals Meeting functions and what the problems are for us—how informa-
tion technology can help solve some of our problems. It is
“I’ll tell you exactly what I look for when I interview a new
the ability to see the big picture that really gets my
college grad,” Alice Adams volunteered. Alice, a system
attention.”
development manager at a local bank, was talking with
“Yeah, I’m with you,” added Sam Young, the manager
several professional acquaintances at a monthly dinner
of marketing systems for a retail store chain. “I am not that
meeting of the Association for Information Technology
impressed with the specific technical skills an applicant
Professionals (AITP). AITP provides opportunities for infor-
has. I assume they have the aptitude and some skills. I
mation systems professionals to get together occasionally
do want to know how well they can communicate. I do
and share experiences. Usually, a few dozen professionals
want to know how much they know about the nature of
from information systems departments at a variety of com-
our business. I do want to know how interested they are
panies attend the monthly meetings.
in retail stores and the problems we face.”
“When I interview students, I look for problem-solving
“Exactly,” confirmed Alice.
skills,” continued Alice. “Every student I interview claims
to know all about Java and .NET and Dreamweaver and 1. Do you agree with Alice and the others about the
XYZ or whatever the latest development package is. But I importance of problem-solving skills? Industry-specific
always ask interviewees one thing: ‘How do you generally insight? Communication skills? Discuss.
approach solving problems?’ And then I want to know if 2. Should you research how a hospital is managed
they have even thought much about banks like mine and before interviewing for a position with an information
financial services generally, so I ask ‘What would you say systems manager at a hospital? Discuss.
are the greatest problems facing the banking industry 3. In terms of your career, do you think it really makes a
these days?’” difference whether you work for a bank, a hospital, or
Jim Parsons, a database administrator for the local a retail chain? Or is an information systems job going
hospital, laughed. “Yes, I know what you mean. It really to be the same no matter where you work? Discuss.