System development can generally be thought of having two major components: systems
analysis and systems design.
In System Analysis more emphasis is given to understanding the details of an existing
system or a proposed one and then deciding whether the proposed system is desirable or
not and whether the existing system needs improvements. Thus, system analysis is the
process of investigating a system, identifying problems, and using the information to
recommend improvements to the system.

Fig 1.3 shows the various stages involved in building an improved system.
System design is the process of planning a new business system or one to replace or
complement an existing system.
Analysis specifies what the system should do. Design states how to accomplish the
objective.
After the proposed system is analyzed and designed, the actual implementation of the
system occurs. After implementation, working system is available and it requires timely
maintenance. See fig 1.3.
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