AS 1: Approaches to Systems Development
Chapter: Reasons for Systems Development
Welcome to your study notes for Reasons for Systems Development! Whether you love technology or find computing a bit daunting at times, don't worry. This chapter explores a simple, practical question: Why do organisations decide to spend time and money building or updating computer systems?
By the end of this guide, you will understand the main triggers that push businesses to change their digital systems, from avoiding annoying crashes to following new laws.
What is Systems Development?
Systems development is the structured process of planning, designing, creating, testing, and deploying a new information system (or significantly modifying an old one) to solve problems or help an organisation achieve its goals.
Think of it like renovating a house. You might renovate because your family is growing (business growth), the roof is leaking (system errors), or you want modern energy-saving smart tech (new technological opportunities).
Did you know? Developing a major software system can cost millions of pounds. Because it is so expensive and time-consuming, organisations only undertake systems development when there is a strong, justified reason.
The Core Reasons for Systems Development
The reasons an organisation develops a new system generally fall into four broad categories:
1. Problems with the existing system
2. Changes in business needs
3. Changes in the external environment and legislation
4. Technological advancements and opportunities
Let's break each of these down step-by-step.
1. Problems with the Existing (Legacy) System
An outdated computer system currently in use is often called a legacy system. Over time, legacy systems develop issues that disrupt daily work:
• Poor Performance and Inefficiency: As databases grow, an old system may become painfully slow. Bottlenecks occur when staff have to wait for pages to load or reports to process, leading to lost productivity.
• Frequent Crashes and High Failure Rates: Unreliable software crashes often, causing data loss and frustrating both staff and customers.
• High Maintenance Costs: Maintaining old software and aging hardware becomes increasingly expensive. Finding replacement parts or programmers who understand old code costs significant amounts of money.
• System Obsolescence: Hardware and software eventually reach their End-of-Life (EOL). When the original manufacturer stops providing updates, security patches, or technical support, the system becomes obsolete and vulnerable.
• Incompatibility: Old systems often cannot communicate or exchange data with newer software, leading to duplicated work and fragmented records.
• Poor User Interface (UI): Clunky, unintuitive screens lead to human input errors, longer training times for new staff, and user dissatisfaction.
Key Takeaway: When an existing system becomes too slow, expensive, or unreliable to run, the organisation is forced to replace or upgrade it to keep day-to-day operations running smoothly.
2. Changes in Business Needs (Internal Drivers)
Even if an existing system works perfectly well, changes inside the organisation can make it unfit for purpose:
• Business Growth and Scalability: A system built to handle \(100\) orders a day will struggle or fail when the business grows to \(10,000\) orders a day. A new system is needed to scale with user demand.
• New Products, Services, or Sales Channels: If a traditional high-street shop decides to offer online shopping, click-and-collect, or mobile app ordering, it must develop an e-commerce platform integrated with warehouse stock control.
• Mergers and Takeovers: When two companies merge, they usually have different, incompatible IT systems. They must develop a unified system so all departments can share information seamlessly.
• Demand for Better Management Information: Managers need accurate, real-time data to make smart strategic decisions. If the current system cannot generate useful reports, dashboards, or sales forecasts, a modern Management Information System (MIS) must be developed.
Key Takeaway: As a business expands or changes its strategy, its IT systems must evolve to support those new operations.
3. Changes in External Environment and Legislation (External Drivers)
Sometimes organisations are forced to develop or adapt systems due to forces outside their control:
• Changes in the Law and Regulations: Governments frequently update laws regarding data privacy, tax, and employment. For example, strict data protection laws (such as GDPR) require systems to securely store personal data and allow users to request data deletion. Tax initiatives (like Making Tax Digital) require businesses to keep digital records and submit returns electronically.
• Heightened Cybersecurity Threats: Cyber threats continuously evolve. An older system without modern encryption or multi-factor authentication (MFA) creates major security risks.
• Competitor Pressure: If rival businesses offer faster delivery tracking, instant chat support, or seamless mobile payments, an organisation must update its own digital tools to prevent customers from switching to competitors.
• Customer Expectations: Modern consumers expect 24/7 self-service, instant booking confirmations, and mobile-friendly portals. Systems must be developed to meet these expectations.
Key Takeaway: External factors like legal mandates and competitive pressure mean businesses cannot stand still; they must modernise to remain compliant and competitive.
4. Technological Advancements and Opportunities
New technological developments provide opportunities to work faster, cut costs, or deliver better service:
• Cloud Computing: Moving from on-premise physical servers to cloud-based platforms allows staff to access systems securely from anywhere, while reducing hardware maintenance costs.
• Automation and AI: Modern systems can automate repetitive tasks (such as invoice processing, email confirmations, or inventory tracking), freeing up employees for higher-value work.
• Mobile and Cross-Platform Integration: Developing systems that work smoothly across smartphones, tablets, and desktops allows field workers (such as delivery drivers or service engineers) to update records on the go.
Key Takeaway: Developing new systems allows organisations to take advantage of cutting-edge technology to improve efficiency and reduce long-term operational costs.
Memory Aid: Why Develop a System?
To easily recall the reasons in an exam, remember the acronym B-L-O-T-S:
• B – Business changes: Growth, mergers, new products.
• L – Legal requirements: New legislation, tax rules, GDPR.
• O – Obsolescence & Errors: Old software reaching end-of-life, frequent bugs, lack of vendor support.
• T – Technological advancements: Cloud platforms, automation, mobile access.
• S – Speed & Security issues: Slow performance, high costs, security vulnerabilities.
Common Mistakes to Avoid
• Mistake 1: Assuming systems are only developed when the old one completely breaks down.
Correction: Many systems are developed proactively to gain a competitive edge, capture market share, or exploit new technologies, even if the current system is still technically functional.
• Mistake 2: Confusing internal business drivers with external drivers.
Correction: Internal drivers come from inside the organisation (e.g., launching a new product, opening a branch). External drivers come from outside (e.g., a new government tax law, a rival launching an innovative app).
• Mistake 3: Giving vague answers like "to make things better".
Correction: In CCEA exams, use precise terminology such as scalability, data integrity, system obsolescence, maintenance overheads, and legislative compliance.
Quick Chapter Summary
• Systems development is triggered by problems with legacy systems, internal business growth, external legal/market changes, and new technological opportunities.
• Legacy systems suffer from slow processing, crashes, high maintenance costs, poor user interfaces, and security risks.
• Internal business factors include growth, mergers, and the need for accurate management reporting.
• External drivers include data protection legislation, tax changes, cyber threats, and customer expectations.
• Technological advancements like cloud computing and automation give organisations a strong reason to modernise.