CH10 Developing and Implementing Effective AIS

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Chapter 10: Developing and Implementing Effective Accounting Information Systems Presentation OutlineThe Systems Development Life Cycle Systems Planning Systems Analysis - Procedures and data gathering Systems Design - Procedures - Design considerations - Design methodologies - Factors affecting the selection of a vendor Systems Implementation - Performing preliminary actions - Executing activities leading to an operational system - Follow-up procedures

THE SYSTEMS DEVELOPMENT LIFE CYCLEDeveloping a computer-based information system is a creative and demanding task that can and should produce economic benefits for an organization. However, systems development can be a disaster, with labor and financial resources being expended with no observable return and perhaps even a system that cannot be completed. Positive results are more frequently obtained if the process is formally structured, documented, and subject to management controls. By far the most common methodology for building new information systems is the systems development life cycle approach.Systems Planning - organizing the project team and developing strategic plans for performing the systems study Systems Analysis - analyzing the company s current system to determine information needs and identify the system s strong and weak points Systems Design - making changes to the company's current system so that weak points can be minimized or eliminated and strong points maintained Systems Implementation - acquiring resources for the new system and initial operation

THE SYSTEMS DEVELOPMENT LIFE CYCLESystem operation on a daily basis Follow-up studies to determine if the (newly designed) system is operating efficiently Planning and preliminary investigation

Implementation and initial operation of the revised system Design of system revisions to eliminate the problems

Analysis of the system to determine the cause(s) of the problems

SYSTEMS PLANNINGPlanning for Success approach problems from a broad point of view use an interdisciplinary study team to evaluate information systems make the study team work closely with a steering committee Broad Viewpoint in a Systems Study a systems approach aligned with mission, goals, and objectives. 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 is a constant process that continues throughout all phases of the systems study.

The System Development Life CycleSystem operation on a daily basis Follow-up studies to determine if the newly designed system is operating efficiently Broad viewpoint System study team Steering committee

Implementation and initial operation of the revised system Design of system revisions to eliminate the problems

Analysis of the system to determine the cause(s) of the problems

SYSTEMS ANALYSISThe systems analysis phase begins following the recognition of problems in the company s current system. The purpose of systems analysis is to enable consultants to familiarize themselves with a client s current operating system so they can make recommendations for improvement. The phases in systems analysis are: understanding the goals of the organization using system survey techniques to acquire sufficient information regarding problems analyzing data to suggest possible solutions to the systems problems evaluating system feasibility

Understanding Organization GoalsGeneral systems goals, awareness that benefits should exceed the costs, concern that the output should help in better decisions, designing to allow optimal access to information, and flexibility to accommodate to changing information needs. Top management systems goals, and long-range budget planning data periodic performance reports short-range operating performance of subsystems Operating management systems goals are normally easier to determine relate to well-defined and narrower organizational areas. are for the current business year are generated internally

The Systems Development Life CycleSystem operation on a daily basis Follow-up studies to determine if the newly designed system is operating efficiently Planning and preliminary investigation

Implementation and initial operation of the revised system Design of system revisions to eliminate the problems

System Survey Analysis of the system to Data Gathering: review determineobservation, of document, the cause(s) questionnaire, the problems interviews Data Analysis: work measurement, work distribution analysis System Analysis Report

System Analysis ProceduresDefine the problem - symptoms of problems must be distinguished from the real problems, and consultants must understand the goals of the system. Perform a systems survey - consultants look at the current system s strengths and weaknesses in order to obtain a complete understanding of the system. Prepare a systems analysis report - consultants suggest possible solutions to solve the problems of the present system.The process of learning how the current system functions, determining the needs of users, and developing the logical requirements of a proposed system is referred to as A. Systems design. B. Systems feasibility study. C. Systems maintenance. D. Systems analysis. (CMA, adapted)

Systems Survey Data Gathering and AnalysisData Gathering:Review of documentation - i.e., system flowcharts, organization charts and company policy manuals Observation - involves watching employees performing their duties and examining computer operations Questionnaires and Surveys - standard lists of open-ended or closedended questions used to survey a large group of people when brief answers are desired Review of internal control procedures Interviews - used to gather information in more depth

Data Analysis:creating summary statistics, developing flowcharts and/or process maps highlighting bottlenecks in information flows, reporting redundancy, and identifying missing information links.

SYSTEM DESIGNIf the client s steering committee reacts positively to the systems analysis report, system design begins. System design is the creative phase of system development that involves specifying outputs, processing procedures, and inputs for the new system. Design work includes a feasibility evaluation, a detailed system design, a specification report, a submission of the report to vendors, and the selection of a vendor.

The Systems Development Life CycleSystem operation on a daily basis Follow-up studies to determine if the newly designed system is operating efficiently Planning and preliminary investigation

Implementation and initial operation of the revised system

Feasibility evaluation: technical, operational, schedule, legal, economic Detailed system design: output, process, input Design of system revisions to eliminate report Specification the problems Selection of a vendor

Analysis of the system to determine the cause(s) of the problems

Evaluating System Feasibility: Narrowing of Design AlternativesOperational feasibility - can and will the new system be used by the personnel for whom it is designed? Economical feasibility - are the expected benefits expected to exceed the costs of the new system? Time feasibility - can the new system be designed and implemented in the period scheduled? Technical feasibility - is proven technology available to implement the design? Legal feasibility - is there a conflict between the design and the firm s ability to meet its legal obligations?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 Ordinarily, the analysis tool for the systems analyst and steering committee to use in selecting the best system alternative is (CMA, adapted) A. Pilot testing. B. User selection. C. Decision tree analysis D. Cost-benefit analysis

Detailed Systems DesignConsultants prepare a detailed system design for each feasible proposal. Outputs are designed first, followed by the processing steps and inputs. Tools that are available to consultants in preparing structured designs are Hierarchy Plus Input, Processing, and Output (HIPO) charts, WarnierOrr diagrams, system flowcharts, and data flow diagrams.The three major activities of systems design are A. User interface design, data manipulation, and output analysis. B. Process design, output design, and output analysis. C. User interface design, data design, and process design. D. Data design, input validation, and processing.

(CMA, adapted)

The process of developing specifications for hardware, software, manpower, data resources, and information products required to develop a system is referred to as A. Systems analysis. B. Systems feasibility study. C. Systems maintenance. D. Systems design. (CMA, adapted)

Systems Specifications ReportSystem design specifications should be incorporated in a formal systems specifications report. Higher-level management should review this report and give final approval. The report should contain all information needed by management to make a sound decision concerning the proposed design.Historical background information about the company s operating activities. Detailed information about the problems in the company s current system. Detailed descriptions of the systems design proposals. Indication of what the vendors should include in their proposals to the company. Time schedule for implementing the new system.

Consultants choose which vendors will receive the Request for Proposal (RFP) and answer specific questions that arise regarding aspects