The document discusses analyzing systems using data flow diagrams (DFDs). It explains that DFDs are a key method for analyzing data-oriented systems by graphically representing how data moves through an organization. The data flow approach has advantages over narrative explanations, including freedom from early technical commitments and better communication with users. Physical DFDs show how a system will be implemented and include details like manual vs automated processes. Structured analysis techniques are used to model system processes and document data flows and stores.