System analysis and design involves analyzing business processes and requirements and designing logical systems models. Key activities include fact finding, modeling current and required systems, and producing requirements specifications and logical models. Data flow diagrams (DFDs) are a common modeling technique, depicting the flow of data through a system via processes, external entities, and data stores. DFDs are drawn at different levels of detail, with level 0 providing an overview and higher levels showing more granular decompositions of processes. Proper notation, numbering, labeling, and balancing are important for effective DFDs.