Systems Analysis

1. Systems Analysis

2. We we came from… Planning Identify Problem/Value. Feasibility Analysis. Project Management. Analysis Design Implementation

3. Systems Analysis Planning Understand as-is system. Identify Improvements. Develop concept for the to-be system. Analysis Design Implementation

4. Three major methods • Business Process Automation • Business Process Improvement • Business Process Reengineering

5. Business Process Automation Goal: Efficiency for users

6. Root Cause Analysis Symptoms • Identify symptoms • Trace each back to its causes Symptoms ROOT CAUSES

7. Business Process Improvement

8. Business Process Reengineering • Radical redesign of business processes

9. Example: Processing a Loan Dept. A Receive Request. Date/Time. Dept. B Bill Pappas Verify Employmt. & Eligibil. Dept. C Verify Acct. Status for amount. Dept. D John Malone Term & Amount approval. Sharon Dabaloosky Dept. E Create amort. schedule. Dept. F Trisch Mashius Process & send check. June Wayne Tom Mooka

10. Account Database: Amounts HR Database: Employment & Eligibility Tom Lauer Amortization Program 17 Minutes vs. 22 days!!

11. BASIS FOR REENGINEERING(source: Hammer) • The usual methods for boosting performance - process rationalization and automation - have not yielded the dramatic improvements companies need. • Companies tend to use technology to mechanize old ways of doing business. • Often, existing processes are left intact, and computers are used simply to speed them up. • Many processes are geared toward efficiency and control. BUT, new watchwords are innovation, speed, service, and quality.

12. WHAT IS REENGINEERING?(source: Hammer) • Discontinuous thinking - recognize and break away from outdated rules and fundamental assumption that underlie operations. • Looking at fundamental processes of the business from a cross-functional perspective. • Striving for dramatic levels of improvement. • Using IT not to automate an existing process but to enable a new one.

13. Processing a Loan Dept. A Receive Request. Date/Time. Dept. B Bill Pappas Verify Employmt. & Eligibil. Dept. C Verify Acct. Status for amount. Dept. D John Malone Term & Amount approval. Sharon Dabaloosky Dept. E Create amort. schedule. Dept. F Trisch Mashius Process & send check. June Wayne Tom Mooka

14. PRINCIPLES OF REENGINEERING(source: Hammer) • Organize around outcomes, not tasks. • Have those who use the output of the process perform the process. • Subsume information processing work into the real work that produces information. • Treat geographically dispersed resources as though they were centralized. • Link parallel activities instead of integrating their results. • Put the decision point where the work is performed. • Capture information once at the source.

15. Example: Ford - BEFORE and After Purchase Order Purchasing Vendor Receiving Goods Receiving Document Copy of Purchase Order Payment Invoice Accounts Payable 500 AP employees! Most time spent on mismatches.

16. Example: Ford - Before and AFTER Purchase Order Purchasing Vendor Receiving Goods Payment “Don’t send us invoices” Accounts Payable Database 75% reduction in head count.

17. Business Business Business Process Process Process Automation Improvement Reeingineering Potential Business Low-Moderate Moderate High Value Project Cost Low Low-Moderate High Breadth of Analysis Narrow Narrow-Moderate Very Broad Risk Low-Moderate Low-Moderate Very High Characteristics of Analysis Strategies