Accounting
Information
Systems
9th Edition
Marshall B. Romney
Paul John Steinbart
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-1
Introduction to Systems
Development and
Systems Analysis
Chapter 16
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-2
Learning Objectives
1.
2.
3.
Explain the five phases of the
systems development life cycle.
Discuss the people involved in
systems development and the roles
they play.
Explain the importance of systems
development planning and describe
planning techniques.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-3
Learning Objectives
4.
5.
6.
Discuss the various types of
feasibility analysis, and calculate
economic feasibility.
Explain why systems change triggers
behavioral reactions, what form this
resistance to change takes, and how
to avoid or minimize the resulting
problems.
Discuss the key issues and steps in
systems analysis.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-4
Introduction


Ann Christy was promoted to controller of
Shoppers Mart (SM).
She determined the following:


Store managers cannot obtain information
other than what is contained on SM’s
periodic, preformatted reports.
The sales and purchasing departments
cannot get timely information about what
products are or are not selling well.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-5
Introduction


Ann is convinced that Shoppers Mart
needs a new information system.
She has the following questions:
1.
2.
What process must the company go
through to obtain and implement a
new system?
What types of planning are
necessary to ensure the system’s
success?
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-6
Introduction
3.
4.
5.
How will employees react to a new
system?
How should the new system be
justified and sold to top
management?
How can expected costs and benefits
be quantified to determine whether
the new system will indeed be costeffective?
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-7
Introduction

This chapter discusses five major topics.



The first topic is the system development
life cycle (Objective 1).
The second topic is the planning activities
that are necessary during the development
of the life cycle (Objectives 2 and 3).
The third topic is the process of
demonstrating the feasibility of a new AIS
(Objective 4).
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-8
Introduction


The fourth topic is the behavioral
aspects of change that companies
must deal with to successfully
implement a new system (Objective 5).
The last topic is a discussion of
systems analysis, the first step in the
development cycle (Objective 6).
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-9
Learning Objective 1
Explain the five phases of
the systems development
life cycle.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-10
The Systems Development
Life Cycle

What are the five steps in the
systems development life cycle
(SDLC)?
1.
2.
3.
4.
5.
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operations and maintenance
©2003 Prentice Hall Business Publishing,
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16-11
The Systems Development
Life Cycle: Systems Analysis
Systems Analysis
Do initial investigation
Do system survey
Do feasibility study
Determine information needs
and system requirements
Deliver systems requirements
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
Conceptual
Design
16-12
The Systems Development
Life Cycle: Conceptual Design
Conceptual Design
Identify and evaluate
design alternatives
Develop design specifications
Deliver conceptual design
requirements
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
Physical
Design
16-13
The Systems Development
Life Cycle: Physical Design
Physical Design
Design output
Design database
Design input
Develop programs
Develop procedures
Design controls
Deliver developed system
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
Implementation
and Conversion
16-14
The Systems Development
Life Cycle: Implementation and
Conversion
Implementation and Conversion
Develop plan
Install hardware and software
Train personnel, test the system
Complete documentation
Convert from old to new system
Fine-tune and review
Deliver operational system
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
Operation
and
Maintenance
16-15
The Systems Development
Life Cycle: Operation and
Maintenance
Operation and Maintenance
Operate system
Modify system
Do ongoing maintenance
Deliver improved system
Systems
Analysis
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
Feasibility analysis
and decision points:
Economic
Feasibility
Technical Feasibility
Legal Feasibility
Scheduling
Feasibility
Operational
Feasibility
16-16
Learning Objective 2
Discuss the people involved
in systems development and
the roles they play.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-17
The Players

Who are the people involved in
developing and implementing AIS?
 Management
 Accountants
 Information
systems steering
committee
 Project development team
 Systems analysts and programmers
 External players
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-18
The Players

What are top management’s roles?
–
–
–
providing support and encouragement
establishing system goals and
objectives
determine information requirements
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-19
The Players

What are accountants’ roles?
–
–
–
determine their information needs
may be members of the project
development team
play an active role in designing
system controls
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-20
The Players

What are the steering committee’s
roles?
–
–
–
–
set policies that govern the AIS
ensures top-management participation
guidance and control
facilitates coordination and integration
of IS activities
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-21
The Players

What are the project development
team’s roles?
–
–
–
plan each project
monitor project
make sure proper consideration is
given to the human element
©2003 Prentice Hall Business Publishing,
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16-22
The Players

What are the system analyst’s and
programmer’s roles?
–
–
–
study existing systems
design new systems and prepare
specifications
write computer programs
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-23
Learning Objective 3
Explain the importance of
systems development
planning and describe
planning techniques.
©2003 Prentice Hall Business Publishing,
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16-24
Planning Systems
Development

Why is planning an important step in
systems development?
–
–
–
–
–
consistency
efficiency
cutting edge
lower costs
adaptability
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16-25
Planning Systems
Development

What types of systems development
plans are needed?
–
–
project development plan
master plan
©2003 Prentice Hall Business Publishing,
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16-26
Planning Techniques

Two techniques for scheduling and
monitoring systems development activities
are:
1
PERT (program evaluation and review
technique)
• PERT requires that all activities and the precedent
and subsequent relationships among them be
identified.
2
Gantt chart
• A bar chart with project activities listed on the lefthand side and units of time across the top
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-27
Planning Techniques:
Gantt Chart
Project Planning Chart
(Sample
Gantt
Chart)
______________________________________________
Activity
Week Starting
______________________________________________
1
______________________________________________
2
______________________________________________
3
______________________________________________
4
______________________________________________
5
______________________________________________
6
______________________________________________
7
______________________________________________
8
______________________________________________
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-28
Learning Objective 4
Discuss the various types of
feasibility analysis, and
calculate economic feasibility.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-29
Feasibility Analysis



Systems analysis is the first step in the
systems development life cycle (SDLC).
A feasibility study (also called a business
case) is prepared during systems analysis
and updated as necessary during the
remaining steps in the SDLC.
The steering committee uses the study to
decide whether to terminate a project,
proceed unconditionally, or proceed
conditionally.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-30
Feasibility Analysis

What five important aspects need to
be considered during a feasibility
study?
1.
2.
3.
4.
5.
Technical feasibility
Operational feasibility
Legal feasibility
Scheduling feasibility
Economic feasibility
©2003 Prentice Hall Business Publishing,
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16-31
Feasibility Analysis
Economic feasibility is the most
frequently analyzed of the five
aspects.
 What is the basic framework for
feasibility analysis?

–
capital budgeting model
©2003 Prentice Hall Business Publishing,
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16-32
Feasibility Analysis

What are some capital budgeting
techniques?
–
–
–
payback period
net present value (NPV)
internal rate of return (IRR)
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-33
Learning Objective 5
Explain why systems change
triggers behavioral reactions,
what form this resistance to
change takes, and how to
avoid or minimize the
resulting problem.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-34
Behavioral Aspects of
Change
Individuals involved in systems
development are agents of change
who are continually confronted by
people’s reaction and resistance to
change.
 The best system will fail without the
support of the people it serves.

©2003 Prentice Hall Business Publishing,
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16-35
Behavioral Aspects of
Change

Why do behavioral problems occur?
–
–
–
–
–
–
personal characteristics and
background
manner in which change is introduced
experience with prior changes
communication
disruptive nature of the change
process
fear
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-36
Behavioral Aspects of
Change

How do people
resist AIS
changes?
–
–
–
aggression
projection
avoidance
©2003 Prentice Hall Business Publishing,
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16-37
Behavioral Aspects
of Change

How can behavioral problems be
overcome?
–
–
–
–
–
–
–
meet needs of the users
keep communication lines open
maintain a safe and open atmosphere
obtain management support
allay fears
solicit user participation
make sure users understand the system
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-38
Behavioral Aspects of
Change
–
How can behavioral problems be
overcome? (continued)
–
–
–
–
–
–
–
–
–
provide honest feedback
humanize the system
describe new challenges and opportunities
reexamine performance evaluation
test the system’s integrity
avoid emotionalism
present the system in the proper context
control the users’ expectations
keep the system simple
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-39
Learning Objective 6
Discuss the key issues and
steps in systems analysis.
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-40
Systems Analysis
When a new or improved system is
needed, a written request for systems
development is prepared.
 The request describes the current
system’s problems, why the change is
needed, and the proposed system’s
goals and objectives.
 It also describes the anticipated
benefits and costs.

©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-41
Systems Analysis

There are five steps in the analysis
phase:
1.
2.
3.
4.
5.
Initial investigation
Systems survey
Feasibility study
Information needs and systems
requirements
Systems analysis report
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-42
Case Conclusion

What did Ann Christy decide?
–
that the corporate office would
gather daily sales data from each
store
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-43
End of Chapter 16
©2003 Prentice Hall Business Publishing,
Accounting Information Systems, 9/e, Romney/Steinbart
16-44