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CHAPTER 20
INTRODUCTION TO SYSTEMS DEVELOPMENT; SYSTEMS ANALYSIS
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
20.1 The approach to long-range AIS planning described in this chapter is important for large
organizations with extensive investments in computer facilities. Should small organizations
with far fewer information systems employees attempt to implement planning programs?
Why or why not? Be prepared to defend your position to the class.
Yes, companies with few IS employees should attempt to implement planning programs. This is
A smaller company will typically have fewer funds than a large company will. Therefore,
inadequate planning can be more disastrous and financially draining for small companies.
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Ch 20: Introduction To Systems Development; Systems Analysis
20.2 You are a consultant advising a firm on the design and implementation of a new system.
Management has decided to let several employees go after the system is implemented. Some
have many years of company service.
Tell employees what is going to happen to them as soon as possible.
Encourage part-time work or job-sharing.
How would you advise management to communicate this decision to the affected employees?
To the entire staff?
The communication should be direct, so that the employees are the first to find out and are not
subject to the whims of rumors and uncertainty.
While these actions may be costly, they will provide benefits (cooperation, improved morale in the
remaining employees, etc.) that will likely exceed the costs.
20.3 While reviewing a list of benefits from a computer vendor’s proposal, you note an item that
reads, “Improvements in management decision making—$50,000 per year.” How would you
interpret this item? What influence should it have on the economic feasibility and the
computer acquisition decision?
The item cannot be properly interpreted without further information from the computer vendor,
such as what decisions, made by which managers, are they referring to? How will the decisions be
Usually, a computer system will help management make better decisions. However, these decisions
do not always result in a direct cost savings. The economic feasibility study should only include
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20.4 For each of the following, discuss which data-gathering method(s) are most appropriate and
why:
a. Examining the adequacy of internal controls in the purchase requisition procedure
-Observation of procedures, interviews with employees, and documentation reviews (of
b. Identifying the controller’s information needs - An in-depth interview with the controller is
one way to determine her information needs. However, managers often don’t know what
information they need; they say they need the information they are now getting and little else.
Reviewing the reports that the controller currently receives is also a good way to identify her
needs.
c. Determining how cash disbursement procedures are actually performed - If the cash
procedures are documented, a review of that documentation will help understand how it is
d. Surveying employees about the move to a total quality management program - By using
a questionnaire, the opinions of many different employees can be gathered. Questionnaires
Questionnaires produce a “breadth” but not a “depth” of information. To go beyond the
e. Investigating an increase in uncollectible accounts - Interviews with employees and
examination of documents will provide good initial sources of information to investigate the
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20.5 The following problem situations occurred in a manufacturing firm. What questions should
you ask to understand the problem?
Customer complaints about product quality have increased.
What is it, specifically, that customers are complaining about?
Does the company have a total quality management (TQM) program? Should they?
Accounting sees an increase in the number and dollar value of bad debt write-offs
Has the company recently changed its credit policy? If so, why?
Operating margins have declined each of the past four years due to higher-than-expected
production costs from idle time, overtime, and reworking products
Does the production scheduling system perform satisfactorily? If not, why not?
Are there delays in receiving materials? If so, why? What are the current policies for handling
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Ch 20: Introduction To Systems Development; Systems Analysis
20.6 Give some examples of systems analysis decisions that involve a trade-off between each of the
following pairs of objectives:
There are many examples of the tradeoffs between information system objectives. One example is
provided here for each pair of objectives.
a. economy and usefulness - the decision of how much information to give a credit manager to
b. economy and reliability - the decision of whether to implement a new internal control
g. economy and flexibility - the decision to replace older, less flexible storage mediums with
newer, more flexible, and often more costly storage mediums.
20.7 For years, Jerry Jingle’s dairy production facilities led the state in sales volume but recent
declines worry him. Customers are satisfied with his products but are troubled by the dairy’s
late deliveries and incomplete orders. Production employees (not the cows) are concerned
about bottlenecks in milk pasteurization and homogenization due to poor job scheduling,
mix-ups in customers’ orders, and improperly labeled products. How should Jerry address
the problems? What data-gathering techniques would be helpful at this early stage?
Jerry could install an information system that coordinates job scheduling, tracks customer orders,
and controls product labeling. The system can also help reduce bottlenecks in the milk
pasteurization and homogenization process by controlling production schedules.
It appears that Jerry has conducted an initial investigation and determined that actual problems
exist. Jerry now needs to conduct a more in-depth investigation to verify the nature of the problem
and to identify customer and the user needs.
The person conducting the investigation should interview the employees who process, bottle,
Customers should also be interviewed to find out their needs, since meeting customer’s needs is
Jerry and supervisory personnel should be interviewed to get their insights about the problems
Interviewing from the bottom up can result in better problem identification and solutions than from
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20.8 A manufacturing firm needed a specialized software program to identify and monitor cost
overruns. After an extensive analysis, the company purchased prepackaged software and
assigned three programmers to modify it to meet its individual circumstances and processes.
After six months of work, during final testing, the company told them to stop all work until
further notice. While reading the software vendor’s sales agreement, the manufacturing
manager found a clause stating that the software could not be changed without the prior
written consent of the vendor. The firm had to pay the software vendor an additional fee so it
could use the modified software in its manufacturing process. Which aspect(s) of feasibility
did the manufacturing firm failed to consider prior to purchasing the software.
Of the five aspects of feasibility, the manufacturing firm failed to consider legal feasibility. Legal
20.9 Ajax Manufacturing installed a new bar code based inventory tracking system in its
warehouse. To close the books each month on a timely basis, the six people who work in the
warehouse must scan each item in a 36-hour period while still performing their normal duties.
During certain months, when inventory expands to meet seasonal demands, the scan takes as
many as 30 hours to complete. In addition, the scanners do not accurately record some
inventory items that require low operating temperatures. A recent audit brought to
management’s attention that the inventory records are not always accurate. Which aspect(s)
of feasibility did Ajax fail to consider prior to installing the inventory tracking system.
Ajax Manufacturing failed to consider operational and technical feasibility when implementing
their inventory tracking system.
Operational feasibility considers whether the organization’s personnel can and/or will use the
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SUGGESTED ANSWERS TO THE PROBLEMS
20.1 How do you get a grizzled veteran police officer who is used to filling out paper forms to use a
computer to process his arrests and casework—especially when he has little or no experience
using a computer? That was the problem facing the Chicago Police Department when it
decided to implement a relational database system. The system is capable of churning through
massive amounts of data to give officers the information they need to fight crime more
effectively.
Initially, the department rolled out the case component of the CLEAR (Citizen Law
Enforcement Analysis and Reporting) system that provided criminal history and arrest
records. The officers hated it, complaining that the system was not user-friendly, that
approval from supervisors was complex and involved multiple screens, and that they did not
feel properly trained on the system. After listening to the officers’ complaints for a year, the
department clearly had to do something. (Adapted from Todd Datz, “No Small Change,” CIO
(February 15, 2004): 66–72)
a. Identify as many system analysis and design problems as you can.
Apparently, the detectives were not asked what they wanted and/or needed in the new
system. If they were asked for input, it was not adequately communicated to system
b. What could the department have done differently to prevent the officers’ complaints?
If the department had involved the police officers early in the planning, analysis, and
design process, they could have:
oHelped systems analysts identify what they wanted in the new system, helped design
The Chicago Police Department recognized the problems with new systems and took steps to
improve system performance and user acceptance. They:
Increased the competence of their information systems group. They were a good team,
Increased training for all IS professionals, from entry-level developers to senior
Used police officers to train users in the field, which made a huge difference to the cop
on the street. One officer commented, “There is a certain degree of comfort with other
police officers.”
c. What principles of system analysis and design were violated in this case?
Limited or no user input
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20.2 Mary Smith is the bookkeeper for Dave’s Distributing Company, a distributor of soft drinks
and juices. Because the company is rather small, Mary performs all daily accounting tasks
herself. Dave, the owner of the company, supervises the warehouse/delivery and front office
staff, but he also spends much of his time jogging and skiing.
For several years, profits were good, and sales grew faster than industry averages. Although
the accounting system was working well, bottlers were pressuring Dave to computerize. With
a little guidance from a CPA friend and with no mention to Mary, Dave bought a new
computer system and some accounting software. Only one day was required to set up the
hardware, install the software, and convert the files. The morning the vendor installed the
computer system, Mary’s job performance changed dramatically. Although the software
company provided two full days of training, Mary resisted learning the new system. As a
result, Dave decided she should run both the manual and computer systems for a month to
verify the new system’s accuracy.
Mary continually complained that she lacked the time and expertise to update both systems
by herself. She also complained that she did not understand how to use the new computer
system. To keep accounts up to date, Dave spent two to three hours a day running the new
system himself. Dave found that much of the time spent running the system was devoted to
identifying discrepancies between the computer and manual results. When the error was
located, it was usually in the manual system. This significantly increased Dave’s confidence in
the new system.
At the end of the month, Dave was ready to scrap the manual system, but Mary said she was
not ready. Dave went back to skiing and jogging, and Mary went on with the manual system.
When the computer system fell behind, Dave again spent time catching it up. He also worked
with Mary to try to help her understand how to operate the computer system.
Months later, Dave was very frustrated because he was still keeping the computer system up
to date and training Mary. He commented, “I’m sure Mary knows how to use the system, but
she doesn’t seem to want to. I can do all the accounting work on the computer in two or three
hours a day, but she can’t even do it in her normal eight-hour workday. What should I do?”
This is an actual case with the facts presented as accurately as possible. The objective is to
familiarize students with the behavioral issues surrounding a systems change. It is less important to
determine the “right answer” (there may not be one) that it is to discuss the issues.
a. What do you believe is the real cause of Mary’s resistance to computers?
Employee reaction to the installation of a new information system is often diverse and
unpredictable. In many cases, employees must make significant behavioral adjustments to
Is Mary’s adverse behavior due to a perceived need to protect her ego? Is she afraid she
Since Mary was excluded from the decision to automate the office, does she feel
Is she fearful because computers sometimes cause people to overcommunicate? (i.e., with
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Is she worried that the computer will impose its own structure on the organization? The
b. What events may have contributed to the new system’s failure?
The company did not involve Mary in the systems change. They did not ask for her ideas,
The company did not explain why the system was being implemented, what the company
The changes to Mary’s job and responsibilities were not explained.
c. In retrospect, how should Dave have handled the accounting system computerization?
Mary should have been informed of the change that was going to take place, the purpose
The company should have allowed Mary to make suggestions concerning the system,
Mary should be reassured that she has control over the system and not the other way
Education prior to systems implementation could perhaps have helped Mary adapt to the
d. At what point in the decision-making process should Mary have been informed? Should
she have had some say in whether the computer was purchased? If so, what should have
been the nature of her input? If Mary had not agreed with Dave’s decision to acquire
the computer, what should Dave have done?
Mary should have at least been informed as soon as the decision was made to purchase the
Because Mary was only a bookkeeper and did not fully understand the necessity of the
system, she should not have been allowed to make the final decision on acquiring the
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e. A hard decision must be made regarding Mary. Significant efforts have been made to
train her, but they have been unsuccessful. What would you recommend at this point?
Should she be fired? Threatened with the loss of her job? Moved somewhere else in the
business? Given additional training?
There are advantages and disadvantages to each of the following four options. Students
1. Firing can have the following advantages:
Firing can have the following disadvantages:
The company sends messages to other employees and perhaps the community in
2. Transferring employees can have the following advantages:
The company is less likely to communicate that it does not care for its employees.
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3. Persuasion can have the following advantages:
A valuable employee may be retained and her time freed up to perform tasks that are
more important.
It may only serve to increase even further the frustration level that already exists.
Mary was eventually fired and another bookkeeper hired. With the new system, there was not
enough work to keep the new employee busy full time. Consequently, the employee took over
Mary was interviewed several years later. She was employed at another firm and worked
20.3 Wright Company’s information system was developed in stages over the past five years. During the
design process, department heads specified the information and reports they needed. By the time
development began, new department heads were in place, and they requested additional reports.
Reports were discontinued only when requested by a department head. Few reports were discontinued,
and a large number are generated each period.
Management, concerned about the number of reports produced, asked internal auditing to evaluate
system effectiveness. They determined that more information was generated than could be used
effectively and noted the following reactions:
Many departments did not act on reports during peak activity periods. They let them accumulate
a. Explain whether each reaction is a functional or dysfunctional behavioral response.
1. Avoiding or delaying activity on reports during peak activity periods is dysfunctional if
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2. Having so many reports that no action or the wrong action is taken means that the
3. It is dysfunctional when a department head does not refer to report data until a fellow
4. The department head’s actions are both functional and dysfunctional. Developing
b. Recommend procedures to eliminate dysfunctional behavior and prevent its recurrence.
The dysfunctional behavior at Wright Company was a direct result of management’s failure to
recognize that information systems are dynamic. Once a system is designed and
A committee composed of systems staff and users should be established to monitor the
system and to educate users as to information needs and the use of information. The
Users who participate in developing the system know more about the technical aspects of the
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