© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-1 chapter 5 System requirements Learning objectives –To understand the basic types of system development and the reasons for system development. –To gain an appreciation and understanding of a typical system development life cycle. –To identify and define the essential elements of system planning, systems analysis and system design. –To acquire the ability to conduct a system needs/requirements analysis. –To be able to apply the principles of conflict resolution in a system development environment.

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-2 key terms brainstorming business process re- engineering centralised systems conflict resolution in-house system range checks reasonableness checks sequence checks tangible benefits validation checks

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-3 Reasons for system development Creation of a new organisation Internal and external changes bring new needs Existing system is inadequate or outdated Reporting requirements have changed New technology – new software and hardware Need to increase productivity Need to increase customer satisfaction

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-4 System development life cycle System planning Systems analysis System design System implementation and maintenance System monitoring and review

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-5 System development life cycle System planning Systems analysis System design System monitoring and review System implementation

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-6 System planning Develop a master plan: –encompasses all other phases in cycle Identify future information needs: –incorporate long-range organisational plans Identify the system to be developed Plan for its development project Appoint a steering committee

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-7 Systems analysis The four steps of the systems analysis phase: 1.Surveying or evaluating the current system 2.Identifying information needs 3.Identifying system requirements 4.Preparing the systems analysis report

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-8 Evaluation of present system The necessity for procedures now in use The importance of all steps followed Cost effectiveness of current procedures Suitability of source document design Usefulness of generated reports Deficiencies in reports Adequacy of system documentation

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson. 5-9 Information gathering techniques Interviews Questionnaires Observations Examinations Job descriptions

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson Conflict resolution Potential users will have conflicting requirements. Resolving this problem may involve: –brainstorming - an effective tool in conflict resolution –use of a qualified arbitrator –referring to senior management for ruling

© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye Watson System design Specification of: –inputs –processes –outputs Awareness of: –new information requirements –efficient ways of solving problems –implementation of new technology