Chapter #1: Introduction to System Analysis and Design

1. Use the background information to create a business profile for New Century,
and indicate areas where more information will be needed. The profile should
include an organization chart of the office staff. You can create the chart
using Microsoft Word or a similar program, or you can draw it by hand. In
Word 2010, click the Insert tab on the Ribbon, then Smart Art, then
Organization Chart.

2. Identify six business processes that New Century performs, and explain who
has primary responsibility for each process. Also describe what data is
required and what information is generated by each process.
The six business processes of New Century are:
Employee Benefits:
Responsibility: Fred Brown takes care of human resources and
employee benefits.
Data Required: The details required regarding employees are
starting date, health plan details, transportation benefits,
percentage of salary contributed towards retirement plan like
401k, number of paid vacation days per calendar year, number

of paid sick days allowed per year, number of paid personal or

optional days.
Information generated: Following information can be retrieved
for each employee from data collected above:
o Number of paid vacation days not used that needs to
be carried forward to next calendar year. Or amount
that needs to be deducted by payroll if number of
vacation days exceed the number of paid vacation
days.
o If an employee is promoted or there has been a salary
increment for him/her for next calendar year, the
percentage of salary that needs to be contributed
towards 401k changes and this can be generated
based on the data which they already have.
o If the employee moves, the amount that needs to be
contributed towards transportation benefit may
change. Once the employee updates his/her address
and
changes
the
contribution
details
for
transportation, this can be taken care of by the HR
right away.

Payroll and Tax Reporting:

Responsibility: Corinne Summers takes care of payroll, tax
reporting and profit distribution among associates and then
reports directly to Fred.
Data Required: The details required are tax information for
preparing w-2 forms every year, bank account details for direct
deposit, time sheet information to calculate number of hours
each employee worked, insurance benefits, vacation, personal
and sick days.
Information generated: From the above collected data,
generates paychecks for the employees.
Patient Reports:
Responsibility: Susan Gifford takes care of patient medical
reports.
Data Required: Patients data is required to store in a system
which is important for proper care of the patient. Collects details
of the patients treatment and insurance.
Information generated: From the above collected data, prepares
the bills of the patients.
Accounts Receivable:
Responsibility: Tom Capaletti takes care of accounts receivables.
Data Required: Collects the data from Susan regarding patients
treatment, visits and insurance.

Information generated: From the above collected data, prepares

the information regarding patients bill which is required for the
submission to the insurance companies.

Insurance Billing:
Responsibility: Tammy Alipio takes care of insurance billing.
Data Required: Collects the data from Tom regarding the
patients bill.
Information generated: From the above collected data, submits
the patient bills to the insurance companies and once the
insurance companys pays the bill, then mails the remaining bill
to the patients.
Managing Appointments:
Responsibility: Lisa Sung takes care of appointments.
Data Required: Collects the patients information, billing address
and reason of the patients visit to the hospital.
Information generated: From the above collected data,
receptionist schedules the appointments for the patients.
3. Based on what you know at this point, it is likely that you will recommend a
transaction processing system, a business support system, or a user
productivity system? What about an ERP system? Explain your reasons.
Transaction processing systems manages various kinds of transactions which
occur in the healthcare like patients admissions such as number of new
admissions and discharges from the hospital, employee time sheets, supply
purchases, tracks each charge, payment, appointment processing and
insurance claims. This system reduces the administrative costs and provides
reports. A business support system analyzes the provider workloads,
turnaround time for claims and patients and estimates the future staffing
needs. User productivity system increases efficiency and improves patient
satisfaction. Transaction processing system and business support system are
required for the clinic. As each department does not require access to all the
information an ERP system is not necessary.

4. Describe the systems development method you plan to use, and explain the
pros and cons of using this method.
I recommend agile system development method because it follows an
incremental approach. Developers starts with a simple project design and
then starts working on small modules. Before the beginning of another part
conducts the test and discovers bugs and fixes them. As there are numbers of
features each of it should be developed separately. Therefore to work on the
each individual feature this process allows for a single department to
changeover at a time instead of whole company to be trained and adjusting

to a new system at a time. Planning will be simple and can handle problems
easily. The disadvantage of this model is that the initial project doesnt have a
definitive plan the final project would be different than the initial plan.