2.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 1 Chapter 11 Systems Implementation, Operation, and Control

3.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 2 Learning Objectives 1, 2, and 3 Describe the major phases of systems implementation. Recognize some of the major human factors involved in systems implementation. Describe the major forms of documentation involved in the implementation of a new system.

4.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 3 Systems Implementation There are three major steps in systems implementation. 1. Establish plans and controls. 2. Execute activities as planned. 3. Follow up and evaluate the new system.

5.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 4 Systems Implementation Systems planning and analysis Establish plans and controls Systemsdesigns Systems review and control Executeactivities Follow up and evaluate

6.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 5 Step I: Establishing Plans and Controls for Implementation These plans should incorporate three major components: 1. A breakdown of the project into various phases 2. Specific budgets applicable to each phase 3. Specific timetables applicable to each project phase

7.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 6 Step I: Establishing Plans and Controls for Implementation Gantt chart Network diagram Critical path

8.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 7 Gantt Chart Example Evaluatesoftware Planned time Actual time 1/12/13/14/15/16/17/1 Selectsoftware Selectcomputer Trainemployees Testsystem

9.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 8 Simple Network Diagram CompleteStart Selectsoftware Trainemployees Implementcomputer Selectcomputer Contactvendors Contactvendors Reviewbudget Evaluatesoftware Allocatefunds

10.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 9 Step II: Executing Implementation Activities What are examples of activities during execution? Selecting and training personnel Installing new computer equipment Detailed systems design

11.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 10 Step II: Executing Implementation Activities Writing and testing computer programs Selecting and training personnel Installing new computer equipment Detailed systems design File conversion

12.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 11 Step II: Executing Implementation Activities It is desirable for management and the systems team to make a formal announcement regarding the project.

13.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 12 Employee Training Hiring outside training consultants Using training manuals Videotape presentations Audiotape presentations

14.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 13 Employee Training Training seminars Individualized hands-on instruction Computer-assisted training

15.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 14 Acquiring and Installing New Computer Equipment Adequate facilities must be available. Specialized security measures must be implemented.

16.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 15 Detailed Systems Design Additional design work Last-minute fine tuning of the systems design plan

17.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 16 Documenting the New System Documentation is one of the most important parts of system implementation, but it is often overlooked. Good documentation can serve a wide range of useful purposes.

18.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 17 Documenting the New System What are some of these purposes? Training new employees Providing programmers and analysts with useful information for future program evaluation and modification activities

19.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 18 Documenting the New System Providing auditors with useful information for evaluating internal controls Assisting in assuring that systems design specifications are met

20.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 19 File Conversion In many cases, files maintained manually must be converted to computer format. Conversion can be an expensive, time-consuming process.

21.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 20 Test Operations There are three basic approaches to the final testing of the system. What are these approaches? 1. Direct approach 2. Parallel operation 3. Modular conversion

22.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 21 Step III: Evaluating the New System What approaches can assist in follow-up and evaluation? Observations Questionnaires Performance measures Benchmarks

23.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 22 Learning Objective 4 Understand how to plan and control a systems project.

24.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 23 Planning and Organizing a Systems Project Resources should be allocated to those projects that yield the greatest benefits to the organization.

25.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 24 Planning and Organizing a Systems Project Project selection The project team The project team Project leader responsibilities Project uncertainty

26.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 25 Project Team Organization Information systems department departmentSteeringcommitteeSteeringcommittee UserdepartmentUserdepartment UsermemberUsermember Analysts/programmersAnalysts/programmers TechnicalstaffTechnicalstaff ProjectleaderProjectleader LeadanalystsLeadanalysts

27.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 26 Project Leader Responsibilities SchedulingPlanningControl AllocationofresourcesProjectbreakdown TaskassignmentActivity/taskscheduling Progress and time reportingStatusreporting

28.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 27 Project Breakdown into Tasks and Phases Time estimates Work measurement techniques Work measurement techniques

29.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 28 Factoring a Project into Tasks and Phases New System ImplementationAnalysis Design 1.02.03.0 ApplicationstudyVendorselection 1.11.2 EquipmentdeliveryDocumen-tation 3.13.2 OutputdesignFormdesignProgramdesign 2.12.32.2

30.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 29 Work Measurement Techniques Identify the tasks to be estimated. Estimate the total size of the task. Convert into a time estimate. Adjust the estimated processing.

31.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 30 Accuracy of Estimates Estimates made during the early phase of a project can be expected to be inaccurate. Initial estimates are frequently made too low.

32.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 31 Project Accounting Project control is established by setting measurable goals for each phase and task in the overall project. A project accounting system is a cost accounting system.

33.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 32 Project Accounting Projectaccountingsystem Computerusagesummaries Timesheets Overheadrates Progressreport Cost to date Revised cost estimate

34.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 33 Project Accounting Number 91-045 Costs Actual Budget Materials XXX XXX LaborXXXXXXXX Overhead XXX XXX Project schedule Number 91-045 Costs Actual Budget Materials XXX XXX LaborXXXXXXXX Overhead XXX XXX Project schedule Project File Projectaccountingsystem

35.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 34 Learning Objective 5 Describe several approaches for control over nonfinancial systems resources.

36.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 35 Control Over Nonfinancial Information Systems Resources What are nonfinancial factors? HardwareSoftwarePersonnel

37.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 36 Control Over Nonfinancial Information Systems Resources Hardware performance involves system… UtilizationDowntimeResponsiveness It is the percentage of time that the machine is unavailable for use.

38.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 37 Control Over Nonfinancial Information Systems Resources Evaluating software performance involves the following: Survey systems users. Constantly monitor the software.

39.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 38 Control Over Nonfinancial Information Systems Resources Controls relating to personnel involve preparing reports for: Data entry specialists Evaluating the efficiency of systems operators Hardware repair persons

40.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 39 Auditing the Information System The audit’s focus should be on the information system itself and on the validity and accuracy of data as processed by the system.

41.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 40 Maintaining and Modifying the System In all operational systems, it becomes necessary to make changes. necessary to make changes. It is not possible to foresee all contingencies during the design phase. Environmental conditions and information needs change. The computer program may contain bugs. Why?

42.  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 11 – 41 End of Chapter 11