chapter 13-1 chapter 13: developing and implementing effective accounting information systems...
TRANSCRIPT
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Chapter 13-1
Chapter 13:Developing and Implementing Effective
Accounting Information Systems
Introduction
System Development Life Cycle
Systems Planning
Systems Analysis
Detailed Systems Design
Implementation, Follow-Up, and Maintenance
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Chapter 13-2
Introduction
Purpose of IT Governance Ensure IT is used effectively, efficiently, and
strategically
Study of IT Systems Planning and analysis through development Design, Development, and Implementation Maintenance of AIS applications
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Chapter 13-3
Systems Development Life Cycle
Systems Study Systems Development Work Formal investigation of an existing information
system
Performance of Study In-house professionals (large organizations) Hire outside consultants (smaller companies)
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Chapter 13-4
Four Stages in the Systems Development
Life Cycle
Planning and Investigation Preliminary investigation of current system Organize a systems study team Develop strategic plans
Analysis of Current System Identify information needs Strengths and weaknesses
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Chapter 13-5
Four Stages in the Systems Development
Life Cycle
Design Changes that eliminate weak points Preserve the strengths
Implementation, Follow-up, and Maintenance Resource acquisition Training employees Identify new problems and correct
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Chapter 13-6
Systems Development Life Cycle
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Chapter 13-7
Systems Studies and AISs
Applications Portfolio Enterprise system Specialized information systems for functional areas
Impacts of Systems Studies Work flows Data gathering and recording tasks Employee responsibilities Rewards of managers
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Chapter 13-8
Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system?
A.Planning and Investigation
B.Analysis
C.Design
D.Implementation, Follow-up, and Maintenance
Study Break #1
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Chapter 13-9
Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system?
A.Planning and Investigation
B.Analysis
C.Design
D.Implementation, Follow-up, and Maintenance
Study Break #1 - Answer
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Chapter 13-10
Systems Planning
Planning for Success Approach specific organizational problems from a
broad point of view Use an interdisciplinary study team for evaluation of
systems Study team works closely with steering committee
Broad Viewpoint in a Systems Study Align study with mission and strategic goals and
objectives
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Chapter 13-11
Systems Planning
The Study Team and the Steering Committee Interdisciplinary study team Communicate closely with management Appoint a steering committee
Investigating Current Systems Preliminary investigation to identify issues Consider alternatives Make recommendations
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Chapter 13-12
Systems Analysis
Purpose Become familiar with current system Identify inputs and outputs Identify strengths and weaknesses Make recommendations
Study Team Activities Identify and understand system goals Perform a systems survey Report findings
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Chapter 13-13
Systems Analysis Procedures
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Chapter 13-14
Understanding Organizational Goals
General Systems Goals Benefits should exceed the costs Create output that helps make better decisions Allows for optimal access to information Accommodates changing information needs
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Chapter 13-15
Understanding Organizational Goals
Top Management Systems Goals Long-range budget planning data Periodic performance reports Short-range operating performance
Operating Management Systems Goals Well-defined narrow organization areas Current year decisions
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Chapter 13-16
Systems Survey Work
Systems Survey Allows for a more complete understanding Strengths and weaknesses of current system
Understanding the Human Element and Potential Behavioral Problems Employee resistance to change Gain full cooperation and support
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Chapter 13-17
Systems Survey Work
Data Gathering Review existing documentation or create new
materials Observe the current system in operation Use questionnaires and surveys Review internal control procedures Interview systems participants
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Chapter 13-18
Systems Survey Questionnaire
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Chapter 13-19
Data Analysis
Components Create summary statistics Systems documentation
Time Period Longer than preliminary investigation May provide interim reports
Conclusions Final systems analysis report Submit to steering committee
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Chapter 13-20
Evaluating System Feasibility
Technical Feasibility Required technical resources Technical skills of current employees
Operational Feasibility Compatibility with current environment Capabilities of current employees
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Chapter 13-21
Evaluating System Feasibility
Schedule Feasibility Estimate time needed for implementation
Legal Feasibility Conflicts between system and legal obligations
Economic Feasibility Cost-benefit analysis Difficulties estimating implementation costs
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Chapter 13-22
The feasibility evaluation:
A.Is completed prior to detailed systems design
B.Includes economic, schedule, technical, legal, and operational feasibility
C.Both a and b are true
D.Neither a nor b is true
Study Break #2
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Chapter 13-23
The feasibility evaluation:
A.Is completed prior to detailed systems design
B.Includes economic, schedule, technical, legal, and operational feasibility
C.Both a and b are true
D.Neither a nor b is true
Study Break #2 - Answer
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Chapter 13-24
In developing an implementing IT, the study team and steering committee must consider organizational goals. These include:
A.General, technical, and top management goals
B.General, operating management, and technical goals
C.Top management, operating management, and economic goals
D.Top management, operating management, and general systems goals
Study Break #3
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Chapter 13-25
In developing an implementing IT, the study team and steering committee must consider organizational goals. These include:
A.General, technical, and top management goals
B.General, operating management, and technical goals
C.Top management, operating management, and economic goals
D.Top management, operating management, and general systems goals
Study Break #3 - Answer
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Chapter 13-26
Steps in the Systems Design Phase
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Chapter 13-27
Detailed Systems Design
Designing System Outputs, Processes and Inputs
Prototyping
The Systems Specifications Report
Choosing an Accounting Information System
Outsourcing
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Chapter 13-28
Detailed Systems Design
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Chapter 13-29
Designing System Outputs, Processes, and
Inputs
System Outputs Determine necessary outputs and format Create better outputs Hard-copy versus Soft-copy
Process Design Identify necessary processing procedures Utilize tools to model computer processes
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Chapter 13-30
Designing System Outputs, Processes, and
Inputs
Designing System Inputs Identify and describe data elements Specify how data items must be coded Determine source of each data element Streamline data entry tasks
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Chapter 13-31
Error Message of Data Input
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Chapter 13-32
Prototyping
Concepts Develop a simplified model of proposed system Scaled-down, experimental version
Usefulness and Challenges Helps address issues of challenging projects Can create distrust and perception concerns Not recommended for traditional AIS
applications
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Chapter 13-33
Steps in Prototyping
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Chapter 13-34
The Systems Specifications Report
Systems Specifications Report Summary of findings Submitted to steering committee for review,
comment, and approval
The Make-or-Buy Decision Develop system within the organization Outsource development of system Canned software or Turnkey system
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Chapter 13-35
Choosing an AIS
Selection Criteria The performance capability of each proposed
system Costs and benefits of each proposed system Maintainability of each proposed system Compatibility of each proposed system with
existing systems Vendor support
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Chapter 13-36
Choosing an AIS
Point-Scoring Analysis Used to evaluate possibly solutions Identifies point value for each criteria
Selecting a Finalist
Making a Final Decision
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Chapter 13-37
Point-Scoring Analysis
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Chapter 13-38
Outsourcing
Business Process Outsourcing Wide range of possible activities Routine function to entire operation
Knowledge Process Outsourcing Contract to perform research or other knowledge-
related work
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Chapter 13-39
Outsourcing
Advantages Company can focus on core competencies More efficient use of time and resources Cost savings
Disadvantages Inflexibility of contractual relationships Loss of control Loss of competitive advantages
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Chapter 13-40
Implementation, Follow-Up, and Maintenance
Implementation Activities
Managing IT Implementation Projects
Postimplementation Review
System Maintenance
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Chapter 13-41
Implementation Activities
Prepare the physical site
Determine functional changes
Select and assign personnel
Train personnel
Acquire and install computer equipment
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Chapter 13-42
Implementation Activities
Establish internal controls
Convert data files
Acquire computer software
Test computer software
Convert to the new system
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Chapter 13-43
Managing IT Implementation Projects
Program Evaluation and Review Technique Also known as PERT Helps identify critical paths Recognize areas where slack time occurs
Gantt Charts Useful for scheduling and tracking Easy to understand Best suited for projects lacking complexity
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Chapter 13-44
PERT
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Chapter 13-45
Gantt Chart
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Chapter 13-46
Managing IT Implementation Projects
Project Management Software Operates on desktop or notebook computers Aids in the management of implementation
projects Divides project into simpler activities Estimates time and cost of activities
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Chapter 13-47
Postimplementation Review
Reevaluate new system’s effectiveness Talk with personnel about satisfaction levels Talk with end users about satisfaction levels Evaluate control procedures and effectiveness Observe employee work performance Evaluate computer processing functions Determine output schedule timing and
effectiveness
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Chapter 13-48
System Maintenance
System Maintenance Performed by IT function Continues tasks created by initial follow-up study
Responsibilities Identify errors and anomalies Estimate costs of fixing items Perform necessary modifications
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Chapter 13-49
System Maintenance Costs
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Chapter 13-50
Prototyping, as an IT development approach, has both advantages and disadvantages. In general, prototyping is most appropriate when:
A.The design team is not pressed for time in creating a new system
B.Users have a thorough understanding of their information needs
C.There are high risks associated with developing an implementing an ineffective system
D.System requirements are easily defined
Study Break #4
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Chapter 13-51
Prototyping, as an IT development approach, has both advantages and disadvantages. In general, prototyping is most appropriate when:
A.The design team is not pressed for time in creating a new system
B.Users have a thorough understanding of their information needs
C.There are high risks associated with developing and implementing an ineffective system
D.System requirements are easily defined
Study Break #4 - Answer
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Chapter 13-52
A point-scoring analysis:
A.Is a useful tool in conducting a feasibility analysis
B.Helps the systems study team to decide whether or not to outsource their AIS
C.Provides a systems study team with an objective means for selecting a final AIS
D.Is a tool used for managing IT projects
Study Break #5
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Chapter 13-53
A point-scoring analysis:
A.Is a useful tool in conducting a feasibility analysis
B.Helps the systems study team to decide whether or not to outsource their AIS
C.Provides a systems study team with an objective means for selecting a final AIS
D.Is a tool used for managing IT projects
Study Break #5 - Answer
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Chapter 13-54
Copyright
Copyright 2011 John Wiley & Sons, Inc. All rights reserved.
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Request for further information should be addressed to the
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Chapter 13-55
Chapter 13