haya.Learning made clear
Unit VI · Information systems, ICT solutions and future trends
10 min readPathway sheetOften a 10-mark answer

Manual vs automated processes and introducing ICT solutions

Before automating a manual process, a firm tests feasibility (technical, economic, legal, operational, schedule) and builds the system through the system development life cycle.

Manual processPeople, paper files, ledgers
Automated processComputers carry out routine steps
Feasibility testsTELOS: technical, economic, legal, operational, schedule
SDLCPlan, analyse, design, build, test, implement, maintain

Manual vs automated processes

PointManual processAutomated process
SpeedSlowFast; can run 24 hours a day
AccuracyHuman errors in copying and addingConsistent, if the input is correct (GIGO)
CostLow set-up; high running cost in staff timeHigh set-up; lower cost per transaction
Storage and searchPaper files, slow to findDatabases, instant search
ReportsPrepared by hand, often lateAutomatic and up to date
FlexibilityEasy to change on the spotChanges need program updates
RisksLost or damaged paper, fireSystem failure, cyber attack; needs backup
ExampleA handwritten sales bookA POS system that also updates stock

Is it viable? The TELOS feasibility tests

TestQuestion asked
TechnicalDo we have, or can we get, the hardware, software and skills?
EconomicDo the benefits exceed the costs (cost-benefit analysis, payback)?
LegalDoes it meet the law, e.g. on personal data?
OperationalWill staff and customers accept and use it?
ScheduleCan it be ready in the time available?

Is the new system economically viable? Payback period

Problem

A shop plans a POS system costing Rs. 600,000. It expects to save Rs. 150,000 a year in staff time and stock losses, and running costs are Rs. 30,000 a year. Find the payback period.

Working
  1. Net yearly saving = 150,000 − 30,000 = Rs. 120,000
  2. Payback period = cost ÷ net yearly saving
  3. = 600,000 ÷ 120,000 = 5 years
Answer

5 years. If the owner wants the cost back within 3 years, the project is not viable as planned.

The system development life cycle (SDLC)

Changeover methods (moving to the new system)

MethodHowPoints
DirectOld system stops; new one starts at onceCheap and quick, but risky
ParallelOld and new run side by side for a whileSafe, but double work and cost
PilotTry the new system in one branch firstLimits the risk to one place
PhasedIntroduce one part at a timeGradual and easier to manage
In Sri Lankan business

Moving from handwritten ledgers to computer systems, as Sri Lankan banks did with core banking and ATMs, needs the same checks: is it technically possible, economically worth it, and will staff and customers actually use it?

Exam angle

Short answer: “What is operational feasibility?” Whether the people who will use a new system, staff and customers, will accept it and be able to use it.

Structured question: “Compare manual and automated processes.” Compare speed, accuracy, cost, storage and search, reports, flexibility and risks, with one example of each.

Essay: “Explain how a business should assess the viability of introducing a new ICT solution, referring to the SDLC.” Compare manual and automated processes, explain TELOS feasibility with a payback example, draw the SDLC, and discuss changeover and training.

Remember it

Feasibility = TELOS (Technical, Economic, Legal, Operational, Schedule). SDLC = 'Please Ask Dad Before Testing In Monsoon': Planning, Analysis, Design, Build, Testing, Implementation, Maintenance.