During the system analysis phase, the main objectives are to study the application in depth to assess the needs of users and to prepare a list of specific requirements that the new system must meet. These objectives are accomplished through data collection and data analysis. The system design phase consists of developing a model of the new system and performing a detailed analysis of benefits and costs. Once a system has been designed and the required types of software and hardware have been specified, the system acquisition phase begins. The make-or-buy decision determines whether the necessary components will be purchased or developed in-house.