2. Chapter 13: Developing and Implementing Effective Accounting Information Systems
Introduction
System Development Life Cycle
Systems Planning
Systems Analysis
Systems Design
Implementation, Follow-Up, and Maintenance

3. Introduction Purpose of IT Governance Study of IT Systems
Ensure IT is used effectively, efficiently, and strategically
Study of IT Systems
Planning and analysis through development
Implementation
Feedback loop for each new IT application

4. Systems Development Life Cycle
Systems Study
Systems Development Work
Formal investigation of an existing information system
Performance of Study
In-house professionals (large organizations)
Hire outside consultants (smaller companies)

5. Four Stages in the Systems Development Life Cycle
Planning and Investigation
Preliminary investigation of current system
Organize a systems study team
Develop strategic plans
Analysis of Current System
Identify information needs
Strengths and weaknesses

6. Four Stages in the Systems Development Life Cycle
Design
Changes that eliminate weak points
Preserve the strengths
Implementation, Follow-up, and Maintenance
Resource acquisition
Training employees
Identify new problems and correct

7. Systems Development Life Cycle

8. Study Break #1
Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system?
Planning and Investigation
Analysis
Design
Implementation, Follow-up, and Maintenance

9. Study Break #1 - Answer
Which one of the four stages in the Systems Development Life Cycle is likely to be most costly for a new system?
Planning and Investigation
Analysis
Design
Implementation, Follow-up, and Maintenance

10. Systems Studies and AISs
Applications Portfolio
Enterprise system
Specialized information systems for functional areas
Impacts of Systems Studies
Work flows
Data gathering and recording tasks
Employee responsibilities
Rewards of managers

11. Systems Planning Planning for Success
Approach specific organizational problems from a broad point of view
Use an interdisciplinary study team for evaluation of systems
Study team works closely with steering committee
Broad Viewpoint in a Systems Study
Align study with mission and strategic goals and objectives

12. Systems Planning The Study Team and the Steering Committee
Interdisciplinary study team
Communicate closely with management
Appoint a steering committee
Investigating Current Systems
Preliminary investigation to identify issues
Consider alternatives
Make recommendations

13. Systems Analysis Purpose Study Team Activities
Become familiar with current system
Identify inputs and outputs
Identify strengths and weaknesses
Make recommendations
Study Team Activities
Identify and understand system goals
Perform a systems survey
Report findings

14. Systems Analysis Procedures

15. Understanding Organizational Goals
General Systems Goals
Benefits should exceed the costs
Create output that helps make better decisions
Allows for optimal access to information
Accommodates changing information needs

16. Understanding Organizational Goals
Top Management Systems Goals
Long-range budget planning data
Periodic performance reports
Short-range operating performance
Operating Management Systems Goals
Well-defined narrow organization areas
Current year decisions

17. Systems Survey Work Systems Survey
Allows for a more complete understanding
Strengths and weaknesses of current system
Understanding the Human Element and Potential Behavioral Problems
Employee resistance to change
Gain full cooperation and support

18. Systems Survey Work Data Gathering Review existing documentation
Observe the current system in operation
Use questionnaires and surveys
Review internal control procedures
Interview systems participants

19. Systems Survey Questionnaire

20. Data Analysis Components Time Period Conclusions
Create summary statistics
Systems documentation
Time Period
Longer than preliminary investigation
May provide interim reports
Conclusions
Final systems analysis report
Submit to steering committee

21. Evaluating System Feasibility
Technical Feasibility
Required technical resources
Technical skills of current employees
Operational Feasibility
Compatibility with current environment
Capabilities of current employees

22. Evaluating System Feasibility
Schedule Feasibility
Estimate time needed for implementation
Legal Feasibility
Conflicts between system and legal obligations
Economic Feasibility
Cost-benefit analysis
Difficulties estimating implementation costs

23. Study Break #2 The feasibility evaluation:
Is completed prior to detailed systems design
Includes economic, schedule, technical, legal, and operational feasibility
Both a and b are true
Neither a nor b is true

24. Study Break #2 - Answer The feasibility evaluation:
Is completed prior to detailed systems design
Includes economic, schedule, technical, legal, and operational feasibility
Both a and b are true
Neither a nor b is true

25. Study Break #3
In developing an implementing IT, the study team and steering committee must consider organizational goals. These include:
General, technical, and top management goals
General, operating management, and technical goals
Top management, operating management, and economic goals
Top management, operating management, and general systems goals

26. Study Break #3 - Answer
In developing an implementing IT, the study team and steering committee must consider organizational goals. These include:
General, technical, and top management goals
General, operating management, and technical goals
Top management, operating management, and economic goals
Top management, operating management, and general systems goals

27. Steps in the Systems Design Phase

28. Systems Design Designing System Outputs, Processes and Inputs
Prototyping
The Systems Specifications Report
Choosing an Accounting Information System
Outsourcing

29. Detailed Systems Design

30. Designing System Outputs, Processes, and Inputs
Determine necessary outputs and format
Create better outputs
Hard-copy versus Soft-copy
Process Design
Identify necessary processing procedures
Utilize tools to model computer processes

31. Designing System Outputs, Processes, and Inputs
Designing System Inputs
Identify and describe data elements
Specify how data items must be coded
Determine source of each data element
Streamline data entry tasks

32. Error Message of Data Input

33. Prototyping Concepts Usefulness and Challenges
Develop a simplified model of proposed system
Scaled-down, experimental version
Usefulness and Challenges
Helps address issues of challenging projects
Can create distrust and perception concerns
Not recommended for traditional AIS applications

34. Steps in Prototyping

35. The Systems Specifications Report
Summary of findings
Submitted to steering committee for review, comment, and approval
The Make or Buy Decision
Develop system within the organization
Outsource development of system
Canned software or Turnkey system

36. Choosing an AIS Selection Criteria
The performance capability of each proposed system
Costs and benefits of each proposed system
Maintainability of each proposed system
Compatibility of each proposed system with existing systems
Vendor support

37. Choosing an AIS Point-Scoring Analysis Selecting a Finalist
Used to evaluate possibly solutions
Identifies point value for each criteria
Selecting a Finalist
Making a Final Decision

38. Point-Scoring Analysis

39. Outsourcing Advantages Disadvantages
Company can focus on core competencies
More efficient use of time and resources
Cost savings
Disadvantages
Inflexibility of contractual relationships
Loss of control
Loss of competitive advantages

40. Implementation, Follow-Up, and Maintenance
Implementation Activities
Managing IT Implementation Projects
Post-Implementation Review
System Maintenance

41. Implementation Activities
Prepare the physical site
Determine functional changes
Select and assign personnel
Train personnel
Acquire and install computer equipment

42. Implementation Activities
Establish internal controls
Convert data files
Acquire computer software
Test computer software
Convert to the new system

43. Managing IT Implementation Projects
Program Evaluation and Review Technique
Also known as PERT
Helps identify critical paths
Recognize areas where slack time occurs
Gantt Charts
Useful for scheduling and tracking
Easy to understand
Best suited for projects lacking complexity

44. Managing IT Implementation Projects
Project Management Software
Operates on desktop or notebook computers
Aids in the management of implementation projects
Divides project into simpler activities
Estimates time and cost of activities

45. PERT

46. Gantt Chart

47. Post-Implementation Review
Reevaluate new system’s effectiveness
Talk with personnel about satisfaction levels
Talk with end users about satisfaction levels
Evaluate control procedures and effectiveness
Observe employee work performance
Evaluate computer processing functions
Determine output schedule timing and effectiveness

48. System Maintenance System Maintenance Responsibilities
Performed by IT function
Continues tasks created by initial follow-up study
Responsibilities
Identify errors and anomalies
Estimate costs of fixing items
Perform necessary modifications

49. System Maintenance Costs

50. Study Break #4
Prototyping, as an IT development approach, has both advantages and disadvantages. In general, prototyping is most appropriate when:
The design team is not pressed for time in creating a new system
Users have a thorough understanding of their information needs
There are high risks associated with developing an implementing an ineffective system
System requirements are easily defined

51. Study Break #4 - Answer
Prototyping, as an IT development approach, has both advantages and disadvantages. In general, prototyping is most appropriate when:
The design team is not pressed for time in creating a new system
Users have a thorough understanding of their information needs
There are high risks associated with developing and implementing an ineffective system
System requirements are easily defined

52. Study Break #5 A point-scoring analysis:
Is a useful tool in conducting a feasibility analysis
Helps the systems study team to decide whether or not to outsource their AIS
Provides a systems study team with an objective means for selecting a final AIS
Is a tool used for managing IT projects

53. Study Break #5 - Answer A point-scoring analysis:
Is a useful tool in conducting a feasibility analysis
Helps the systems study team to decide whether or not to outsource their AIS
Provides a systems study team with an objective means for selecting a final AIS
Is a tool used for managing IT projects

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55. Chapter 13