System analysis is a process of studying a procedure or business to identify its goals and purposes and create systems and procedures that will efficiently achieve them. It is a problem-solving technique that breaks down a system into its component pieces and analyzes how well those parts work and interact to accomplish their purpose. The field of system analysis relates closely to requirements analysis or to operations research. System analysis is used in every field where something is developed, and it can also be a series of components that perform organic functions together, such as systems engineering.

System analysis is conducted for the purpose of studying a system or its parts to identify its objectives. It is a process of collecting and interpreting facts, identifying the problems, and decomposing a system into its components. Analysis specifies what the system should do, and it is a problem-solving technique that improves the system and ensures that all the components of the system work efficiently to accomplish their purpose. Systems design is a process of planning a new business system or replacing an existing system by defining its components or modules to satisfy the specific requirements.

Practitioners of system analysis are often called upon to dissect systems that have grown haphazardly to determine the current components of the system. System analysis is used in every industry, including transportation, food, healthcare, manufacturing, and technology development. It can be useful in resolving a glitch in an ATM machine or managing inventory and production in the food industry. The focus of system analysis is on efficient use of resources, including people, time, money, and raw materials.