1.) Identify the problem- During this stage, the company has to decide whether there is a need for the system and if there is a need, They have to compare the costs the benefits in order to see which would best suit the company taking into consideration their requirements and the funds available.

2.) Investigation and Analysis- Once the company have identify the problem, the company will start to investigate how the old system works and the problem it is causing by using some variety of techniques that include:

 Questionnaires and interviews

 Observing people actually using the existing system

 Paper trail

 Once the company have investigate the problems, the company will then carefully analyse how the existing systems work. They will look at alternative methods such as:

 System Diagrams

 Data Flow Diagrams

 Process diagrams

3.)Design the system- Now that the company have agreed on the requirements, designing the system will take place. In the design phase, the screen layout is designed, the error messages are written, menu buttons are chosen, Font style, Size, and color are picked, what documents to be printed out and what hardware will be needed.

4.)Develop the system- This phase is where the system starts to be written by the software programmers. They follow the requirements specification from the design stage and start to create the new system.

 5.)Test the system- Once the system has been coded, it need to be tested by a team of testers to see if the system is working properly.

6.)Evaluate the system- Now that the system is up and running for real, it is important to evaluate it.