OUTLINE THE PRINCIPLES OF SYSTEMS ANALYSIS - WHAT ARE KEY DRIVERS?
Given that the development of new systems can be fraught with problems and delays, what drives organisations to develop systems?
The most important drivers come directly from the needs of the business and are often not related to technology, but require technological solutions.
There are a number of possible triggers for the need to develop a new system including users identifying a need, organisations needing to grow or acquire other companies in order to extend their market share, the need to reduce staffing costs or an organisation needing to keep up with competitors.
A few more drivers are considered here:
Need for growth
Sometimes businesses can become stagnant. This means they are not growing (gaining new business and exploring new opportunities) or they are shrinking (losing business). Eventually, businesses that do not have any movement or change will begin to decline, although this can take some time.
Most organisations want to advance – they want to expand, become involved in new markets and increase profits. They need to grow to survive and for this they have to have a strategic plan. This is where the company decides what it wants to do and what direction it wants to take. As part of this process, its systems will be examined to ensure that they are capable of supporting the proposed growth. If this is not the case, then the organisation has time to address the issues.
It is not unusual for one company to buy out another. For example, the media company Telewest was purchased by the larger group NTL a few years ago. Since then, it has been sold again – this time to the Virgin Media Group.
An organisation may well buy another company for any one of or combination of the following reasons:
To access new markets: A company selling sports equipment, for example, buys a sports clothing company so that it can add products and...
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