Reading
ACCG Lecture 251
ACCOUNTING AND
INFORMATION SYSTEM
Chapter 6
System Planning and
Development (Part I)
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Dr. Babak Abedin
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Babak Abedin- ACCG251 2010
Learning Objectives
Introduction to IT Governance
1. An overview of IT governance and its role in strategic management
2. An overview of the system development life cycle (SDLC)
How does a company decide,
3. The elements of the systems planning phase of the SDLC
which IT systems are appropriate?
4. The elements of the systems analysis phase of the SDLC
which accounting software package to buy?
5. The elements of the systems design phase of the SDLC
when it has outgrown its accounting software or when to
upgrade the software?
6. The elements of the systems implementation phase of the SDLC
7. The elements of the operation and maintenance phase of the SDLC
whether to use IT systems to sell products on the web?
whether to use ERP systems or customer relationship
management (CRM) software?
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Babak Abedin- ACCG251 2010
Introduction to IT Governance
Introduction to IT Governance
IT systems must be strategically managed.
Proper management, control, and use of IT systems is IT
governance. IT Governance is defined as:
Strategic management is the process of
determining
determining the strategic vision for the organization,
[A] structure of relationships and processes to direct and control the
enterprise in order to achieve the enterprises 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.
developing the long-term objectives,
creating the strategies that will achieve the vision and
objectives, and
implementing those strategies.
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Babak Abedin- ACCG251 2010
Introduction to IT Governance
Introduction to IT Governance
The board and top management must ensure that the
organization has processes to accomplish the following:
Company should have an
1. Continually evaluate the match of strategic goals to the IT
systems in use.
IT governance committee and
a formal process to select, design, and implement IT
design and
systems (e.g. system development life cycle, or SDLC).
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.
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Babak Abedin- ACCG251 2010
Babak Abedin- ACCG251 2010
Introduction to IT Governance
What is Methodology
Method: a way, technique, or process for doing something.
Concept Check
IT governance includes all but which of the following
responsibilities?
Methodology:
a) a body of methods, rules, and postulates (claims)
rules and
employed by a discipline;
a. Aligning It strategy with the business strategy.
b) a particular procedure or set of procedures.
b. Writing programming code for IT systems.
(Webster,
2008)
c. Insisting that an IT control framework be adopted
and implemented.
d. Measuring ITs performance.
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An Overview of SDLC
Information Systems Stakeholders
The systems development life cycle (SDLC) is a systematic
process to manage the acquisition, design, implementation,
and use of IT systems.
Managers
Shareholders
Users (e.g. Accountants, Administrators, Engineers,
etc.)
System Developers
System Analysers
Clients
Suppliers / Consulting firms
etc...
Operation and
Maintenance
Start
System Planning
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System
Implementation
System Analysis
System Design
Exhibit 6-1
An Overview of the Systems
Development Life Cycle
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An Overview of SDLC
Exhibit 6-2
Process Map of the System
Development Life Cycle
(SDLC)
STAGE 1 OF SDLC:
SYSTEMS PLANNING &
YSTEMS PLANNING
INVESTIGATION
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Babak Abedin- ACCG251 2010
Systems Investigations & Planning
Systems Investigations & Planning
Exhibit 6-3
System Planning Process Map
IT 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.
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Babak Abedin- ACCG251 2010
Systems Investigations & Planning
Systems Investigations & Planning
Feasibility Study
Feasibility Study (Continued)
IT governance committee should evaluate the feasibility
of each competing proposal.
1. Economic: A cost-benefit analysis to determine whether
or not we should/can invest on the new system
2. Schedule feasibility: To determine whether we have
sufficient time to implement and use the system
Four feasibility aspects
1. Technical: Having the technique (know-how) to
implement and maintain the system
2. Operational: The extent to which the system suits the
operations of the company
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Systems Investigations & Planning
Systems Investigations & Planning
Planning and Oversight of Proposed Changes
Concept Check
IT governance committee must decide which of the
changes can be undertaken at the current time.
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?
Next phases of the SDLC:
1.
Formally announce the project.
a. Technical feasibility.
2.
Assign the project team that will begin the next phase,
the systems analysis.
3.
b. Operational feasibility.
Budget the funds necessary to complete the SDLC.
c. Economic feasibility.
4.
Continue oversight and management of the project team
and proposed IT changes.
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d. Schedule feasibility.
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System Analysis
Exhibit 6-4
System Analysis
Process Map
Preliminary Investigation
STAGE 2 OF SDLC:
SYSTEM
SYSTEM ANALYSIS
The purpose of the preliminary
investigation
investigation is to determine
whether the problem or deficiency
in the current system really exists.
go or no-go decision
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Babak Abedin- ACCG251 2010
SDLC: System Analysis
SDLC: System Analysis
Study Current System
Determination of User Requirements
To document objectives and functionality of the
current system (why it is currently used)
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.
To understand weaknesses and strengths of the
current system
Interviews
To determine to improve the current system or to
replace it with a new system
Questionnaires
Survey
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SDLC: System Analysis
SDLC: Analysis
System System Survey
Analysis of the System Survey
A systems survey requires collecting data about the
current system, including the following:
Analysis phase is the critical-thinking stage.
Inputs
Inputs
Outputs
Transaction volumes
Processes
In many cases, the analysis phase may lead to business
process
process reengineering (BPR).
Data storage
Errors
fundamental rethinking and radical redesign
of business processes to bring about dramatic
improvements in performance.
Controls
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Babak Abedin- ACCG251 2010
SDLC: System Analysis
SDLC: System Analysis
Concept Check
System Analysis Report
The report to inform the IT governance committee of the
syste
su
use
dete
results of the systems survey and user needs determination.
Which phase of the system development life cycle includes
determining user needs of the IT system?
a. Systems planning.
b. Systems analysis.
c. Systems design.
d. Systems implementation.
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SDLC: System Design
Alternatives for companies to acquire a new system
STAGE 3 OF SDLC:
SYSTEM
SYSTEM DESIGN
Purchased software
RFP (Request For Proposal): The document prepared by
companies which is sent to a supplier/consulting firm , which
explains the specifications of the software they need
In-house software
Companies generate alternative designs and choose the best
option
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SDLC: System Design
SDLC: System Design
Purchased
Software
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 support provided by the vendor
5.
Reputation and reliability of the vendor
6.
Usability and user friendliness of the software
7.
Exhibit 6-5
System Design
Process Map for
Purchased
Software
Technical, operational, economic, and schedule feasibility
4.
Testimonials from other customers
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Babak Abedin- ACCG251 2010
SDLC: System Design
SDLC: System Design
In-House
Design
Conceptual Design
Exhibit 6-6
System Design Process
Map for In-House Design
Involves identifying the alternative conceptual design
approaches to systems that will meet the needs identified
in the system analysis phase.
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Babak Abedin- ACCG251 2010
SDLC: System Design
SDLC: System Design
Evaluation and Selection
Detailed Design
Feasibility assessments are:
The purpose of the detailed design phase is to create the
entire set of specifications necessary to build and
implement the system.
1. Technical feasibility
2. Operational feasibility
The various parts of the system that must be designed are
the
3. Economic feasibility
4. Schedule feasibility
outputs,
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data storage, and
inputs,
In most cases, the costbenefit analysis is the most
important of the four tests.
internal controls.
Processes,
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SDLC: System Design
SDLC: System Design
DESIGNING SYSTEM OUTPUTS
PROCESS DESIGN
An AIS should be designed to meet users
information needs; thus, output specifications must
by prepared first.
The design team should use data gathered from the
prior systems analysis work to help decide what
kinds of reports are needed.
Outputs should be classified according to functional
area requesting them.
Process design involves identifying the processing
procedures required to produce the outputs.
Tools available to model processes are
ER
ER diagrams, structure charts, system flowcharts,
structure
system
data flow diagrams, program flowcharts, and
process maps.
Common to all of these design methodologies is the
idea of a structured, top-down design.
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Babak Abedin- ACCG251 2010
SDLC: System Design
SDLC: System Design
DESIGNING SYSTEM INPUTS
SYSTEMS SPECIFICATIONS REPORT
Team must identify and describe each data element
in the systems design as well as specify the way
data items must be coded.
The design team must also determine the source for
each data element.
The Systems Specifications Report includes
detailed information about the system design
proposal
proposal.
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SDLC: System Design
Concept Check
A request for proposal (RFP) is used during the?
STAGE 4 OF SDLC: SYSTEM
IMPLEMENTATION
IMPLEMENTATION
a. Phase-in period.
b. Purchase of software.
c. Feasibility study.
d. In-house design.
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SDLC: System Implementation
SDLC: System Implementation
Exhibit 6-7
Implementation and
Operation Process Map
Parallel
Direct cutover
Phase-in
Pilot
IMPLEMENTATION
IMPLEMENTATION ACTIVITIES
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Software Programming- normally done by computer
engineers using programming language(s)
Document System: documenting codes and
procedures
procedures of software programming
Train Personnel - computer vendor personnel and
implementation team can help train personnel.
Test Computer Software - programs must be tested
regardless of where they came from or who wrote
them.
Convert Data Files - data files may have to be
converted to newer, more useful formats.
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Babak Abedin- ACCG251 2010
SDLC: System Implementation
Elements of the Operation and Maintenance
Phase
IMPLEMENTATION
IMPLEMENTATION ACTIVITIES
Management should receive regular reports regarding the
performance of the IT system.
System Conversion - there are several conversion
methods:
Examples of reports are:
IT performance
Direct Conversion the old system is immediately
discontinued when the new system is implemented.
Parallel Conversion- both the new and old system
operate simultaneously for a certain period of time.
Phased Conversion- consists of testing and converting
the new system one module at a time.
IT load usage and excess capacity
Downtime of IT systems
Maintenance hours on IT systems
IT security and number of security breaches or problems
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IT customer satisfaction, from both internal and external
customers.
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References & Acknowledgment
Concept Check
Blair, B. and Boyce G. (2006) (eds), Accounting and information
systems with social and organisational perspectives, John Wiley
and Sons, Milton:Qld
Laudon, Kenneth and Laudon, Jane (2006), Fundamentals of
Information Systems, 3th Edition, Pearson, USA
Turner, L. and Weickgenannt, A. (2009), Accounting Information
Systems:
Systems: Controls and Processes, John Wiley & Sons, Milton:Qld
Milton:Qld
ISBN: 13 9780 4714 795 12
I wish to acknowledge Dr. Savanid (nui) Vatanasakdakul input
and material that were incorporated into the lecture slides as well
as the supplementary material and sources provided by John
Wiley publishers.
Each of the following are methods for implementing a
new application system except
a. Direct conversion.
b. parallel conversion.
c. Phased conversion.
d. Test method
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