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Chapter 6-1
Chapter 6-2 Accounting Information Systems, 1st Edition
IT Governance
Chapter 6-3
1. An overview of IT governance and its role in strategic management
2. An overview of the system development life cycle (SDLC)
3. The elements of the systems planning phase of the SDLC
4. The elements of the systems analysis phase of the SDLC
5. The elements of the systems design phase of the SDLC
6. The elements of the systems implementation phase of the SDLC
7. The elements of the operation and maintenance phase of the SDLC
8. The critical importance of IT governance in an organization
9. Ethical considerations related to IT governance
Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives
Chapter 6-4 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
How does a company decide,
which IT systems are appropriate?
which accounting software package to buy?
when it has outgrown its accounting software or when to upgrade the software?
whether to use IT systems to sell products on the web?
whether to establish a data warehouse for analyzing data such as sales trends?
whether to use ERP systems or customer relationship management (CRM) software?
Chapter 6-5 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
IT systems must be strategically managed.
Strategic management is the process of
determining the strategic vision for the organization,
developing the long-term objectives,
creating the strategies that will achieve the vision and objectives, and
implementing those strategies.
Chapter 6-6 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
Proper management, control, and use of IT systems is IT governance. IT Governance is defined as:
[A] structure of relationships and processes to direct and control the enterprise in order to achieve the
enterprise’s goals by adding value while balancing risk versus return over IT and its processes. IT governance provides the structure that links IT processes, IT resources and information to enterprise strategies and objectives.
Chapter 6-7 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
Management must focus on the following activities:
aligning IT strategy with the business strategy
cascading strategy and goals down into the enterprise
providing organizational structures that facilitate the implementation of strategy and goals
insisting that an IT control framework be adopted and implemented
measuring IT’s performance
Chapter 6-8 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
The board and top management must ensure that the organization has processes to accomplish the following:
1. Continually evaluate the match of strategic goals to the IT systems in use.
2. Identify changes or improvements to the IT system.
3. Prioritize the necessary changes to IT systems.
4. Develop the plan to design and implement those IT changes that are of high priority.
5. Implement and maintain the IT systems.
6. Continually loop back to step 1.
Chapter 6-9 SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic
managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
Company should have an
IT governance committee and
a formal process to select, design, and implement IT systems (system development life cycle, or SDLC).
Chapter 6-10
b. Writing programming code for IT systems.
IT governance includes all but which of the following responsibilities?
Concept CheckConcept Check
c. Insisting that an IT control framework be adopted and implemented.
d. Measuring IT’s performance.
a. Aligning It strategy with the business strategy.
SO 1 An overview of IT governance and its role in strategic SO 1 An overview of IT governance and its role in strategic managementmanagement
Introduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT GovernanceIntroduction to IT Governance
Chapter 6-11 SO 2 An overview of the system development life cycle (SDLC)SO 2 An overview of the system development life cycle (SDLC)
An Overview of SDLCAn Overview of SDLCAn Overview of SDLCAn Overview of SDLC
The systems development life cycle (SDLC) is a systematic process to manage the acquisition, design, implementation, and use of IT systems.
Operation and Maintenance
System Implementation
System DesignSystem Analysis
System Planning
Exhibit 6-1 An Overview of the Systems Development Life Cycle
Chapter 6-12 SO 2 An overview of the system development life cycle (SDLC)SO 2 An overview of the system development life cycle (SDLC)
An Overview of SDLCAn Overview of SDLCAn Overview of SDLCAn Overview of SDLC
Exhibit 6-2 Process Map of the System Development Life Cycle (SDLC)
Chapter 6-13 SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLCIT governance committee must monitor the IT system through feedback about network utilization, security breaches, and reports on the operation of the system.
IT governance committee should consider:
1) the assessment of IT systems and their match to strategic organizational objectives, and
2) the feasibility of each of the requested modifications or upgrades.
Chapter 6-14 SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Exhibit 6-3 System Planning Process Map
Chapter 6-15 SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
IT governance committee should evaluate the feasibility of each competing proposal.
Four feasibility aspects
1. Technical
2. Operational
3. Economic
4. Schedule feasibility
Feasibility Study
Chapter 6-16 SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
IT governance committee must decide which of the changes can be undertaken at the current time.
Next phases of the SDLC:
1. Formally announce the project.
2. Assign the project team that will begin the next phase, the systems analysis.
3. Budget the funds necessary to complete the SDLC.
4. Continue oversight and management of the project team and proposed IT changes.
Planning and Oversight of Proposed Changes
Chapter 6-17
b. Operational feasibility.
Which of the following feasibility aspects is an evaluation of whether the technology exists to meet the need identified in the proposed change to the IT system?
Concept CheckConcept Check
c. Economic feasibility.
d. Schedule feasibility.
a. Technical feasibility.
SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Chapter 6-18
b. Designing internal controls.
The purpose of the feasibility study is to assist in?
Concept CheckConcept Check
c. Designing reports for the IT system.
d. Prioritizing IT requested changes.
a. Selecting software.
SO 3 The elements of the systems planning phase of the SDLCSO 3 The elements of the systems planning phase of the SDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Elements of Systems Planning Phase of Elements of Systems Planning Phase of SDLCSDLC
Chapter 6-19 SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Elements of Systems Analysis Phase of Analysis Phase of SDLCSDLC
Elements of Systems Elements of Systems Analysis Phase of Analysis Phase of SDLCSDLC
Preliminary InvestigationThe purpose of the preliminary investigation is to determine whether the problem or deficiency in the current system really exists.
“go” or “no-go” decision
Exhibit 6-4System Analysis Process Map
Chapter 6-20
Inputs
Outputs
Processes
Controls
System Survey
SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
A systems survey requires collecting data about the current system, including the following:
Data storage
Transaction volumes
Errors
Chapter 6-21
Determination of User Requirements
SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
To gain a complete understanding of the system under study, the project team should not only observe and review documentation, but also seek the opinions and thoughts of those who use the system.
Interviews
Questionnaires
Chapter 6-22
Analysis of the System Survey
SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Analysis phase is the critical-thinking stage.
In many cases, the analysis phase may lead to business process reengineering (BPR).
“ fundamental rethinking and radical redesign of business processes to bring about dramatic improvements” in performance.
Chapter 6-23
System Analysis Report
SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
The report to inform the IT governance committee of the results of the systems survey, user needs determination, and BPR.
Chapter 6-24
b. Systems analysis.
Which phase of the system development life cycle includes determining user needs of the IT system?
Concept CheckConcept Check
c. Systems design.
d. Systems implementation.
a. Systems planning.
SO 4 The elements of the systems analysis phase of the SDLCSO 4 The elements of the systems analysis phase of the SDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Elements of Systems Analysis Phase of Elements of Systems Analysis Phase of SDLCSDLC
Chapter 6-25 SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Exhibit 6-5System Design Process Map for Purchased Software
Purchased Software
Chapter 6-26
When evaluating each proposal, the IT governance committee should consider:
1. Price of software or software modules
2. Match of system and user needs to features of the software
3. Technical, operational, economic, and schedule feasibility
4. Technical support provided by the vendor
5. Reputation and reliability of the vendor
6. Usability and user friendliness of the software
7. Testimonials from other customers
SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Chapter 6-27 SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Exhibit 6-6System Design Process Map for In-House Design
In-House Design
Chapter 6-28
Conceptual Design
Involves identifying the alternative conceptual design approaches to systems that will meet the needs identified in the system analysis phase.
SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Chapter 6-29
Evaluation and SelectionFeasibility assessments are:
1. Technical feasibility
2. Operational feasibility
3. Economic feasibility
4. Schedule feasibility
SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
In most cases, the cost–benefit analysis is the most important of the four tests.
Chapter 6-30
Detailed Design
The purpose of the detailed design phase is to create the entire set of specifications necessary to build and implement the system.
The various parts of the system that must be designed are the
SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
outputs,
inputs,
Processes,
data storage, and
internal controls.
Chapter 6-31
b. Purchase of software.
A request for proposal (RFP) is used during the?
Concept CheckConcept Check
c. Feasibility study.
d. In-house design.
a. Phase-in period.
SO 5 The elements of the systems design phase of the SDLCSO 5 The elements of the systems design phase of the SDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Elements of Systems Design Phase of Elements of Systems Design Phase of SDLCSDLC
Chapter 6-32 SO 6 The elements of the systems implementation phase of the SO 6 The elements of the systems implementation phase of the
SDLCSDLC
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
ParallelDirect cutover
Phase-inPilot
Exhibit 6-7Implementation and Operation Process Map
Chapter 6-33
b. Data conversion.
Which of the following steps within the systems implementation phase could not occur concurrently with other steps, but would occur at the end?
Concept CheckConcept Check
c. Software programming.
d. Post-implementation review.
a. Employee training.
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
SO 6 The elements of the systems implementation phase of the SO 6 The elements of the systems implementation phase of the SDLCSDLC
Chapter 6-34
b. parallel conversion.
Each of the following are methods for implementing a new application system except
Concept CheckConcept Check
c. Pilot conversion.
d. Test method conversion.
a. Direct cutover conversion.
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
Elements of Systems Implementation Elements of Systems Implementation PhasePhase
SO 6 The elements of the systems implementation phase of the SO 6 The elements of the systems implementation phase of the SDLCSDLC
Chapter 6-35
Management should receive regular reports regarding the performance of the IT system.
Examples of reports are:
IT performance
IT load usage and excess capacity
Downtime of IT systems
Maintenance hours on IT systems
IT security and number of security breaches or problems
IT customer satisfaction, from both internal and external customers. SO 7 The elements of the operation and maintenance phase of SO 7 The elements of the operation and maintenance phase of
the SDLCthe SDLC
Elements of the Operation and Elements of the Operation and Maintenance PhaseMaintenance Phase
Elements of the Operation and Elements of the Operation and Maintenance PhaseMaintenance Phase
Chapter 6-36
b. As part of the internal control structure of the organization.
The use of the SDLC for IT system changes is important for several reasons. Which of the following is not a part of the purposes of the SDLC processes?
Concept CheckConcept Check
c. As part of the audit of an IT system.
d. As partial fulfillment of management’s ethical obligations.
a. As a part of strategic management of the organization.
SO 7 The elements of the operation and maintenance phase of SO 7 The elements of the operation and maintenance phase of the SDLCthe SDLC
Elements of the Operation and Elements of the Operation and Maintenance PhaseMaintenance Phase
Elements of the Operation and Elements of the Operation and Maintenance PhaseMaintenance Phase
Chapter 6-37
Three major purposes are served by the continual and proper use of the IT governance committee and the SDLC:
1. The strategic management process of the organization
2. The internal control structure of the organization
3. The fulfillment of ethical obligations
SO 8 The critical importance of IT governance in an organizationSO 8 The critical importance of IT governance in an organization
Critical Importance of IT GovernanceCritical Importance of IT GovernanceCritical Importance of IT GovernanceCritical Importance of IT Governance
Chapter 6-38
Management has an ethical obligation to maintain a set of processes and procedures that assure accurate and complete records and protection of assets.
Employees should not subvert the process.
Consultants have at least four ethical obligations:
1. Bid the engagement fairly, and completely disclose the terms of potential cost increases.
2. Bill time accurately to the client.
3. Do not oversell unnecessary services or systems.
4. Do not disclose confidential or proprietary information.
SO 9 Ethical considerations related to IT governanceSO 9 Ethical considerations related to IT governance
Ethical Considerations Related to IT Ethical Considerations Related to IT GovernanceGovernance
Ethical Considerations Related to IT Ethical Considerations Related to IT GovernanceGovernance
Chapter 6-39
b. Employees.
Confidentiality of information is an ethical consideration for which of the following party or parties?
Concept CheckConcept Check
c. Consultants.
d. All of the above.
a. Management.
SO 9 Ethical considerations related to IT governanceSO 9 Ethical considerations related to IT governance
Ethical Considerations Related to IT Ethical Considerations Related to IT GovernanceGovernance
Ethical Considerations Related to IT Ethical Considerations Related to IT GovernanceGovernance
Chapter 6-40
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