2. Systems Analysis Refines project goals into defined functions and operation of the intended application. Analyzes end-user information needs. It follows Planning wherein after the scope of the project has been determined in planning it is necessary to determine the exact source of the problem that is being solved. In this step flow diagrams are created to pinpoint where an information systems can be used to solve any problems that may exist.
3. Systems Design: Once any problems have been identified it is possible to design a system to solve those problems. This step is broken into two sections; the creation of a logical design which explains what the new system will do; the creation of a physical systems design that lists the equipment needed to perform the logical design. System Design leads to Development where the information system is built and programmed. It describes desired features and operations in detail, including screen layouts, business rules, process diagrams, pseudocode and other documentation.
4. Testing Brings all the pieces together into a special testing environment, then checks for errors, bugs and interoperability. It can be performed after the system is built. In this step the functionality of the individual sub systems are tested to ensure proper operation; this process is called stub testing. After successful testing of each subsystem the entire system is tested to ensure all subsystems work together properly; this is called unit testing.