A systems study or systems development work

begins with a formal investigation of an existing information system to

identify strengths and weaknesses.

Systems Development Life Cycle

Who actually performs a systems study?

In-house professionals (large organizations)

Hire outside consultants (smaller companies)

This varies from company to company as well as among projects.

Planning and InvestigationPreliminary investigation of current systemOrganize a systems study teamDevelop strategic plans

Analysis of Current System Identify information needsStrengths and weaknesses

Four Stages in the Systems Development Life Cycle

Risk Assessment and Security Policies

DesignChanges that eliminate weak points Preserve the strengths

Implementation, Follow-up, and MaintenanceResource acquisitionTraining employees Identify new problems and correct

Systems Development Life Cycle

Applications PortfolioEnterprise systemSpecialized information systems for functional

areas

Impacts of Systems StudiesWork flowsData gathering and recording tasksEmployee responsibilitiesRewards of managers

Systems Studies and AISs

Planning and Investigationa preliminary investigation of the current systemorganizing a systems study team, and developing strategic plans.

Systems Planning and Investigation involves

Planning for Success1. approach problems from a broad point of view, 2. use an interdisciplinary study team to evaluate

information systems, and 3. make the study team work closely with a steering

committee

1.Broad Viewpoint in a Systems Study• a systems approach aligned with mission, goals,

and objectives.

Systems Planning and Investigation

2.The Study Team and the Steering Committee◦ top management personnel critical to the

success of a new system.

Investigating Current Systems reports◦ the problems or objectives the study team

identified,◦ solutions or alternatives it investigated, and ◦ further course(s) of action it recommends.

Systems Planning and Investigation

The preliminary investigation separates the symptoms from the causes, considers alternatives to the current system, attempts to estimate the costs and benefits, and recommends desired alternatives.

The study team submitsthis report to the company

steering committee.

The Preliminary Investigation

The Study Team consists of interdisciplinary specialists

◦ the importance of a broad viewpoint◦ interdisciplinary knowledge

communicates ◦ closely with company’s managers◦ meaningfully to provide solutions

The Study Team

The Steering Committee interfaces between the company’s management

and the study team includes top management personnel like

◦ the controller, ◦ the vice president of finance, ◦ the top-level information systems manager ◦ one or more staff auditors, and ◦ the CEO (for very important projects)

may disband the study team and do nothing, perform further preliminary investigations, or proceed to the formal systems analysis stage

The Steering Committee

SYSTEMS ANALYSIS

The basic purpose of the systems analysis phase is to examine a system in depth. The study team will familiarize itself with the company’s current operating system, identify specific inputs and outputs, identify system strengths and weaknesses, and eventually make recommendations for further work.

Understanding Organizational Goals

Special importance is determining which goals are not being achieved under the present system and why this happens. Organization goals include:

1) general systems goals,

2) top management systems goals, and

3) operating management systems goals.

General Systems Goals

General systems goals apply to most organization’s information systems and help an AIS contribute to an efficient and effective organization.

The study team must determine whether the current information system helps to achieve general systems goals.

Top Management Systems Goals

Provide top managers with long-range budget planning data so they can make effective strategic decisions regarding future product-line sales or comparable business activities.

Operating Management Systems Goals

Much of the information required for operating managers’ decisions is generated internally as a by-product of processing a company’s accounting data.

Systems Survey Work

The objective of a systems survey is to enable the study team to obtain a more complete understanding of the company’s current operational information system and its environment. The overall objective is to retain the system’s strengths while eliminating the system’s weaknesses, especially those weaknesses causing problems in the current system.

Data Gathering A systems survey requires the study team

to gather data about the existing system. There are several ways of doing this, including:

Review Existing Documentation Observe the Current System in Operation Use Questionnaires and Surveys Review Internal Control Procedures Interview System Participants

Data Analysis

Systems analysis work necessarily takes longer than a preliminary investigation. The most important deliverable from the analysis portion of the systems study, is the final systems analysis report, which signals the end of the analysis phase of the systems study.

Evaluating System Feasibility

Feasibility evaluation where the design team determines the practicality of alternative proposals.

The design team must examine five feasibility areas:

1) technical feasibility,

2) operational feasibility,

3) schedule feasibility,

4) legal feasibility, and

5) economic feasibility.

Technical Feasibility

The technical feasibility of any proposed system attempts to answer the question, ‘‘What technical resources are required by a particular system?’’

Operational Feasibility

The operational feasibility of a proposed system examines its compatibility with the current operating environment.

Operational-feasibility analysis is mostly a human relations study because it is strongly oriented toward ‘‘people problems.’’

Schedule Feasibility

Timeliness is important. Schedule feasibility requires the design team to estimate how long it will take a new or revised system to become operational and to communicate this information to the steering committee.

Legal Feasibility

A new or revised system should comply with all applicable federal and state statutes about financial reporting requirements, as well as the company’s contractual obligations.

Economic Feasibility

Through economic feasibility evaluation, the design team attempts to assess whether the anticipated benefits of the system exceed its projected costs.

This analysis takes into account all costs, including indirect costs such as time spent by current employees on implementing the new system. The point of the economic feasibility analysis is to get a ‘‘best estimate’’ of the worthiness of a project.

SYSTEM DESIGN

the process of defining the

architecture, components, modules,

interfaces, and data for a system to

satisfy specified requirements.

D ESIGNING SYST EM OUTPUT S, PRO CESSES, AN D IN PUTS

System Outputs. *The design team will use the data gathered from

the prior systems analysis work to help it decide what kinds of outputs are needed as well as the formats that these outputs should have. Process Design

* identify the processing procedures required to produce them. This involves deciding which application programs are necessary and what data processing tasks each program should perform.Designing System Inputs

* Once the design team has specified the outputs and processing procedures for a new project, its members can think about what data the system must collect to satisfy these output and processing requirements

PROTOTYPINGdeveloping a simplified model of a proposed

information system. A prototype is a scaled-down,

experimental version of a nonexistent information

system that a design team can develop cheaply

and quickly for user-evaluation purposes

SYSTEMS SPECIF ICAT IONS REPORT.

After the design team completes its work of

specifying the inputs, outputs, and processing

requirements of the new system, the members

will summarize their findings here.

CHOOSING AN ACCOUNTING

INFORMATION SYSTEM

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

POINT-SCORING ANALYSIS

A technical approach for evaluating

hardware or software that meets most

of a company’s major requirements

OUTSOURCINGOutsourcing is an effective cost-saving strategy when

used properly. It is sometimes more affordable to

purchase a good from companies with comparative

advantages than it is to produce the good internally

Chapter 13-36

Implementation, Follow-Up, and Maintenance

Implementation Activities

Managing IT Implementation Projects

Postimplementation Review

System Maintenance

Chapter 13-37

Implementation Activities

Prepare the physical site

Determine functional changes

Select and assign personnel

Train personnel

Acquire and install computer equipment

Chapter 13-38

Implementation Activities

Establish internal controls

Convert data files

Acquire computer software

Test computer software

Convert to the new system

Chapter 13-39

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

Chapter 13-40

PERT

Chapter 13-41

Gantt Chart

Chapter 13-42

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

Chapter 13-43

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

Chapter 13-44

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

Chapter 13-45

System Maintenance Costs