In this first phase of the systems development life cycle, the analyst is concerned with correctly identifying problems, opportunities, and objectives. This stage is critical to the success of the rest of the project, because no one wants to waste subsequent time addressing the wrong problem. The first phase requires that the analyst look honestly at what is occurring in a business.
Then, together with other organizational members, the analyst pinpoints problems. Often others will bring up these problems, and they are the reason the analyst was initially called in. Opportunities are situations that the analyst believes can be improved through the use of computerized information systems. Seizing opportunities may allow the business to gain a competitive edge or set an industry standard.
Identifying objectives is also an important component of the first phase. The analyst must first discover what the business is trying to do. Then the analyst will be able to see whether some aspect of information systems applications can help the business reach its objectives by addressing specific problems or opportunities.
The people involved in the first phase are the users, analysts, and systems managers coordinating the project. Activities in this phase consist of interviewing user management, summarizing the knowledge obtained, estimating the scope of the project, and documenting the results. The output of this phase is a feasibility report containing a problem definition and summarizing the objectives. Management must then make a decision on whether to proceed with the proposed project. If the user group does not have sufficient funds in its budget or wishes to tackle unrelated problems, or if the problems do not require a computer system, a different solution may be recommended, and the systems project does not proceed any further.