1. 1 Accounting Information Systems: A Business Process Approach Chapter Fourteen: Introduction to Systems Development

2. 2 Learning Objective After completing this chapter, you should understand: §Systems development methodology and benefits §The systems development life cycle §The techniques used to acquire facts §The context of accounting application development

3. 3 Learning Objective (Continue) After completing this chapter, you should be able to: §Identify task required in each phase of the systems development life cycle §Identify models/techniques suitable foe each phase of the systems development life cycle

4. 4 Exhibits: 14.3, 14.4, 14.6, 14.7, 14.8 Tables: 14.1 - 14.4

5. 5 Exhibit 14.3 Information Technology Environment Information technology environment has four key elements: 1.IT strategy is the organization’s broad vision for using IT to support the organization’s overall business strategy and processes. 2.IT infrastructure is the organization of technology to support business processes. It refers to the way that technology is used for recording, processing, storing, and communicating data. 3.IT function refers to the organization of people responsible for acquiring and developing information systems and for supporting end-users. 4.Systems development process is the process by which applications are developed, used, and maintained. The process is represented by the systems development life cycle—a series of steps used by organizations to build accounting applications.

6. 6 Exhibit 14.4 Tasks in Systems Investigation (in terms of the concepts in Figure 14.1) Business strategy: Study alignment of proposed system with business strategy and objectives. AIS applications: Understand current applications (if any) and perceived deficiencies. Propose new applications or modifications. Identify benefits and costs of acquiring and implementing new applications. Business process: Understand current business process and needed changes. Identify effects of proposed systems on business process. Identify effects of proposed systems on employees. Identify costs of redesigning processes and training users. Identify benefits of modified business processes. IT environment: Assess whether the proposed system is feasible given the organization’s IT strategy, IT infrastructure, IT function, and systems development process. Note: The tasks listed above are organized by issue and not by the order in which they would be conducted. For example, the task of understanding current applications may occur before identifying the effects of proposed systems on employees.

7. 7 Exhibit 14.6 Tasks in Systems Analysis Business strategy: Study alignment of proposed system with business strategy and objectives. AIS applications: Understand current applications (if any) and perceived deficiencies. Propose new applications or modifications. Identify benefits and costs of acquiring and implementing new applications. Business process: Understand current business process and needed changes. Document current business process. Identify effects of proposed system on business process. Identify effects of proposed system on employees. Design and document revised business process. Model data needed to support business process/users. Identify costs of redesigning processes and training users. Identify benefits of modified business processes. IT environment: Assess whether proposed system is feasible given the organization’s IT strategy, IT infrastructure, IT function, and systems development process.

8. 8 Exhibit 14.7 Tasks in Systems Design Business strategy: Ensure that the design of the proposed system is consistent with business strategy and objectives. AIS applications: Design reports, input forms, tables, and processing. Prepare RFQ (request for quotation) or RFP (request for proposal). Select supplier. Select hardware and software. Business process: Refine business processes and controls. Design training program. IT environment: Ensure that the design of the proposed system is appropriate given the organization’s IT strategy, IT infrastructure, IT function, and systems development process.

9. 9 Exhibit 14.8 Tasks in Systems Implementation Business strategy: Ensure that the implementation is consistent with business strategy and objectives. AIS applications: Develop application. Test application. Install application. Train users. Convert to new system. Business process: Implement changes to business process/controls. Implement training program. IT environment: Ensure that the implementation is appropriate given the organization’s IT strategy, IT infrastructure, IT function, and systems development process.

10. 10 Table 14.1 Models and Techniques Used in Different Phases of the Systems Development Life Cycle PhaseExamples of Models/TechniquesIntroduced in Chapter SystemsWorkflow table3 investigationOverview activity diagram3 SystemsWorkflow table3 analysisActivity diagram3 Use case diagram7 Use case descriptions7 Risk analysis templates4 Types of internal controls4 Systems designUML class diagram5 Form layout7 Input controls7 Report layout6 Use case diagram7 Use case descriptions7 SystemsTraining manual implementationUser manual

11. 11 Table 14.2 Design of AIS Applications Designing AIS Chapter 1. Precise specification of data that will need to be collected 5 2. Design of records and tables, primary keys, and foreign keys 5 3. Relationship between tables 5 4. How data will be collected (e.g., data entry form, bar code reader, 7 or e-commerce) 5. Form content and organization 7 6. Input controls 7 7. Report content and organization 6 8. Frequency of report generation 6 9. Data entry and update mode: real-time system, batch processing 8 (on-line/off-line), and batch updates 10. Required linkage between this application and others (e.g., general 8 ledger or inventory) 11. How data and processing will need to be shared—centralized, 12 centralized processing with distributed entry, decentralized, distributed processing, etc. 12. Access controls and backup/recovery controls13

12. 12 Table 14.3 Phase Objectives PhaseObjective Systems investigationPropose a solution from alternatives that is feasible and will meet the organization’s needs. Systems analysisDevelop detailed requirements for the new system. Systems designSpecify the physical reality of the system (specify forms, reports, tables, processes, etc.) and choose a supplier. Systems implementationBuild the new system and convert from the old system to the new.

13. 13 Table 14.4 Generic Tasks in the Professional Problem Solving Model TaskDescription DefineDefine the problem and solution alternatives to be considered. AcquireDetermine what information is required and obtain it from a variety of sources. DevelopSelect, design, and/or implement a solution. CommunicateCommunicate the solution to diverse audiences.