Importance Of System Analyst
Communication takes many forms from written to verbal to visual aids. A system analyst must be to able understand as many forms of communication as possible. To be an effective communicator, you must consider five related questions about yourself, your audience, and your objectives: why, who, what, when, and how (Tilley and Rosenblatt 465). An effective communicator …show more content…
A systems analyst needs to know how to calculate costs and benefits when conducting preliminary investigations, evaluating IT projects, and making recommendations to management. Economic feasibility means that the future benefits of a system will be greater than the projected cost. Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners determine the tangible and intangible costs of a product or system. Tangible cost includes salaries, hardware, and software purchases all have a direct dollar amount. Intangible cost reduced information availability, low customer satisfaction, and low employee morale dollar value cannot be measured. Direct costs are costs that can be associated with the development of a specific system (Tilley and Rosenblatt 511). Fixed costs are costs that are relatively constant and do not depend on a level of activity or effort (Tilley and Rosenblatt 511). Developmental costs are incurred only once; at the time the system is developed or acquired (Tilley and Rosenblatt 511).
Cost-benefit analysis is the process of comparing the anticipated costs of an information system to the anticipated benefits. The three most common methods of cost-benefits are payback analysis, return on investment analysis, and present value analysis. Payback analysis is the point at which the benefits equal cost. Return on investment analysis evaluates a system by comparing the return to the investment. Present value analysis is the future dollar is the amount of money that an investment increases over a length of