A generalizable procedure for the analysis and design of information systems is described in the context of allied and supporting data methods, design assessment, and project management considerations. This procedure follows from a view of information systems development as a complex series of goal-directed iterations, rather than a well-ordered sequence of simple steps. In each iteration, tentative design alternatives are progressively narrowed, better defined, carefully assessed, and revised until a workable, user-responsive solution is operationally activated. The analysis and design procedure is developed in two forms: A comprehensive discussion of the basic concepts, rationale, and constructive operations supported by detailed flow diagrams; A simplified, convenient working tool (TRACE), illustrated with two sample system design problems of widely different complexity. (Volume I is reported in LI 003952.) (Author)