Objectives: Introduction Over View of System Analysis and Design



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Valuation problems- Intangible costs and benefits are difficult to quantify and tangible costs are generally more pronounced than tangible benefits. Inmost cases, then, a project must have substantial intangible benefits to be accepted.
2.
Distortion problems- There are two ways of distorting the results of cost/benefit analysis. One is the intentional favoritism of an alternative for political reasons. The second is when data are incomplete or missing from the analysis.
3.
Completeness problems:- Occasionally an alternative is overlooked that compromises the quality of the final choice. Furthermore, the costs related to cost benefit analysis maybe on the high side or not enough costs maybe considered to do a complete analysis. In either case, the reliability of the final choice is in doubt.
5.9 The System Proposal
The final decision following cost/benefit analysis is to select the most cost-effective and beneficial system for the user. At this time, the analyst prepares a feasibility report on the major findings and recommendations. It outlines the options and recommendations. It is presented to management for determining whether a candidate system should be designed. Effective reports follow carefully planned formats that management can

understand and evaluate without having to read the entire document. The content and format of the feasibility report are summarized in Figure 5.2.



Figure 5.2 Feasibility Report- An Outline
A written feasibility report should include the following

TITLE PAGE Defines the name of the project and who it is for
I. TABLE OF CONTENTS List various parts, features and exhibits, showing page numbers II. SCOPE Present a brief explanation of the system boundaries III. STATEMENT OF PROBLEM Describe current system, Describe proposed system, Indicate how proposed system will solve the problems) IV. SUMMARY
ABSTRACT(optional) Give executive a summary of project, highlighting benefits V.
COST/BENEFIT STATEMENT List benefits and savings in quantitative terms Present figures of savings versus costs, Summarize cost of new equipment, onetime charges, etc. Quantify net savings and expected returns. VI. IMPLEMENTATION SCHEDULE Submit implementation plan, Specify human resources requirements, systems and procedures, etc. Include
PERT-CPM or Gantt Chart VII. HARDWARE CONFIGURATION (optional) Layout computer configuration. Describe terminal network and equipment (CRTs, printers, etc. List communication equipment (data sets, lines, etc) VIII. CREDITS Give credit to those who contributed to the project study.

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