Studying and analyzing organizations and procedures in order to identify inputs, outputs, and processes in order to create or modify systems and procedures to improve efficiency.
System analysis is a discipline that analyses complex "systems" (e.g. organization, business processes, technical systems) by identifying their parts and their interaction, their boundaries with their outside environment, and their behavior.
In software engineering this is mostly undertaken to determine the (e.g. "business" or "domain") requirements of a new IT system, or to understand the design of an existing IT system.
Additional reading:
- System analysis in wikipedia
- System analysis definitions according to the business dictionary and merriam webster
- Introduction by the International Institute for applied System analysis