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 vs automated processes
| Point | Manual process | Automated process |
|---|---|---|
| Speed | Slow | Fast; can run 24 hours a day |
| Accuracy | Human errors in copying and adding | Consistent, if the input is correct (GIGO) |
| Cost | Low set-up; high running cost in staff time | High set-up; lower cost per transaction |
| Storage and search | Paper files, slow to find | Databases, instant search |
| Reports | Prepared by hand, often late | Automatic and up to date |
| Flexibility | Easy to change on the spot | Changes need program updates |
| Risks | Lost or damaged paper, fire | System failure, cyber attack; needs backup |
| Example | A handwritten sales book | A POS system that also updates stock |
Is it viable? The TELOS feasibility tests
| Test | Question asked |
|---|---|
| Technical | Do we have, or can we get, the hardware, software and skills? |
| Economic | Do the benefits exceed the costs (cost-benefit analysis, payback)? |
| Legal | Does it meet the law, e.g. on personal data? |
| Operational | Will staff and customers accept and use it? |
| Schedule | Can it be ready in the time available? |
Is the new system economically viable? Payback period
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.
- Net yearly saving = 150,000 − 30,000 = Rs. 120,000
- Payback period = cost ÷ net yearly saving
- = 600,000 ÷ 120,000 = 5 years
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)
- back to Planning (feasibility)
Changeover methods (moving to the new system)
| Method | How | Points |
|---|---|---|
| Direct | Old system stops; new one starts at once | Cheap and quick, but risky |
| Parallel | Old and new run side by side for a while | Safe, but double work and cost |
| Pilot | Try the new system in one branch first | Limits the risk to one place |
| Phased | Introduce one part at a time | Gradual and easier to manage |
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?
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.
Feasibility = TELOS (Technical, Economic, Legal, Operational, Schedule). SDLC = 'Please Ask Dad Before Testing In Monsoon': Planning, Analysis, Design, Build, Testing, Implementation, Maintenance.