1 Chapter 1 Introduction to Accounting Information Systems Chapter 17 System Selection and System Design

Learning Objectives Know goals, plans, tasks, results of sys. selection Know advantages/disadvantages of alternative sources for HW & SW Appreciate advantages/disadvantages alternative financing Understand process of choosing HW & SW Recognize how accountant involved in selection Understand how accountant involved in design

3 Learning Objectives (2) Know goals, plans, tasks, results of structured design Understand advantages of structured design Appreciate importance of implementation planning

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5 System selection goals Determine what computer software will implement logical specifications Determine what computer hardware will implement physical requirements Choose acquisition financing methods Determine appropriate acquisition ancillaries

6 Accountant’s involvement System specialist/consultant staff accountant internal auditor

7 Approved configuration plan Chose s/w package and expected performance specifications Chosen h/w type, mfg., model, expected performance specifications Items for s/w & h/w contracts Results of testing alternative s/w & h/w Assessment of financing & outsourcing alternatives

8 Software acquisition alternatives Internal development External acquisition –turnkey systems –service bureaus –system integrators

9 Hardware acquisition alternatives Internal acquisition –purchase –rental (operating lease) –capital lease External acquisition –outsourcing –facilities management

10 System selection plans/documents

11 Request for Proposal Descriptions of scope of request –Hardware –Software –Services System description, including logical & physical specifications –inputs outputs files processes, controls

12 Request for Proposal (2) Procedures for submitting proposals –Timetable –Evaluation methods –Final decision date Price/budget constraints Vendor information required –contract terms –warranty –general company information

13 Request for Proposal (3) Hardware performance objectives –storage capacity & access –input/output speed & volumes –data communications requirements –computational demands Software performance objectives –inputs required outputs file sizes; access requirements utilities language compilers

14 Request for Proposal (4) Projected growth requirements –expected changes in volumes –modularity/expandability requirements Evaluation criteria –ability to meet performance criteria reliability documentationtraining backupcost ease of useexpandability

15 Vendor Effectiveness CriteriaVendor A B Mandatory software requirements: Uses open-item AR agingYN Operating system supports multiprogramming YN S/W compatible with existingYN Mandatory hardware requirements Remote communication feature available YY Rental availableNY

16 Weighted & Scored Vendor Comparison Vendor A B C CriteriaWt.Val.ScoreVal.ScoreVal.Score Ease of use Expandability Vendor support Compatibility Completeness Total

17 Complete configuration plan Complete software plan Complete hardware plan Prepare configuration plan Obtain approvals

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19 Structured System Design Goals Convert structured specification into reliable, maintainable design Develop plan & budget for orderly & controlled implementation Develop implementation test plan Develop user manuals Develop training program

20 Structured design plans & documents

21 Approved systems design document Use: –Programmers - to write programs –Personnel dept. - to do training –IS dept. - to test and implement system Sections –Design specifications –Implementation plan and budget –Implementation test plan –User manual –Training plan

Learning Objectives Know goals, plans, tasks, results of sys. selection Know advantages/disadvantages of alternative sources for HW & SW Appreciate advantages/disadvantages alternative financing Understand process of choosing HW & SW Recognize how accountant involved in selection Understand how accountant involved in design

23 Learning Objectives (2) Know goals, plans, tasks, results of structured design Understand advantages of structured design Appreciate importance of implementation planning