Final answer:
The problem definition phase in systems development is where problems and opportunities of existing systems are clearly identified and understood, leading to the creation of a problem statement that guides the design team.
Step-by-step explanation:
The problem definition phase of systems development defines the problems and opportunities of the existing systems. During this phase, the focus is on identifying the needs of potential customers, potential competitors, and the market positions. It also considers constraints imposed by factors such as government regulations, technological limitations, and resources like personnel, time, and money. A comprehensive understanding of the project's scope and the resources available is obtained, which is often encapsulated in a problem statement. This phase is essential because it ensures that the correct issue is addressed and that the design team has a clear understanding of what is needed to solve the design problem.