Hi guys. Welcome back. In this video, we are going to look at the issues related to business application development. Now, I would like to ask question from you guys. Why do we need to have a new system being developed? There are several reasons that we need to have new system development. Maybe we would like to take advantage of new technologies like FinTech. Maybe because there is problem with the existing systems. Or we want to go for a new business in a new different way. There are many reasons that we need to have a new system being developed. When you look at the system development life cycle, In the system development life cycle, we have different phases or different steps rather, from planning, analysis, design, to implementation, testing, and maintenance. When we look at system development, usually we do go through what we call waterfall approach, waterfall technique. We start from phase 1 and then we go down to phase 6. 1, 2, 3A, 3B, 4A, 4B, 5, and 6. We're not going to go through the detailed system development life cycle, it has to be covered in a system development methodology course itself. Our main focus is going to be, how does IS Auditing play a role in system development process itself? What are the major requirements or major considerations of IT auditors of system development? Most importantly, how can controls be implemented into system development itself? For example, here it's in the planning on phase 1, We replace with feasibility. Then you could see that phase 2 analysis comes with the requirement. The design phase 3 of traditional system development, we replace with 3A and 3B, that's design and selection. I'm going to explain why this is different from design and selection in a minute. Then we have 4A development and 4B configuration, and phase 5 is implementation. mostly that it's representing two pieces of the traditional system development, that is phase 4 and phase 5, implementation and testing. Finally, maintenance phase that we are replacing with the post-implementation. First of all, I would like to ask a question from you guys which is, In these SDLC phases, which one is the most important one? The most important phase is phase 2 which is the requirement phase. If we don't do well in the phase 2, our entire system development would be a failure. So what is phase 2? How we do that? I'll talk to you guys in a few minutes time. Now, let's look at the phase 1, which is the feasibility. Could you please think about, what are the different feasibilities that we consider when we develop systems? Yes, there are three different ones. We call them operational feasibility, technical feasibility, and economic feasibility. Operational feasibility means whether that system is being developed, whether we can operate within our organization, whether we have software or hardware to operate the system. Technical feasibility means whether we have expertise to develop system, as well as maintain systems within ourselves. Finally, economic feasibility, that you can understand, the system gives you an economic benefit. That's something that we look at economic feasibility. That's the feasibility study, the one that we do first. Then we are moving to the most important phase which is the requirement phase. Can you guess what we do in the requirement phase? In the requirement phase, what we are trying to understand is, we are trying to find out what is needed for the users, because most important people for a system are whoever use the system. They could be your employee. They could be your customers, that means if you are developing a banking system, they could be your customers. Or they may be your senior management. Whoever it is, the person that uses a system day in day out. If they aren't happy with your new system development, no matter how good you think the system is, system will be retired very soon. So the most important thing are the users, what they feel about. In the requirement phase what we do is, we give them time to let us know, what they would like to have in a new system development. What kind of features? What kind of modules? What kind of capabilities that you would like to have in the new system? So we should give them enough time, and then we have to gather their input. How we do that? There are different ways that we do it in the requirement phase. We might think about interviewing some key players, or we might send them a questionnaire, or else we use social media. That's what we do most time now. We use Facebook, WhatsApp, WeChat, Weibo, whatever it is, ways of communicating with them, and give them opportunity to communicate to you and let you know about what they like to have in your new system. That's why this is the most important phase in the system development.