HA2042
Accounting Information Systems
Theme
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Lecture 10 & 11
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AIS Development Strategies
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Introduction
Companies change their systems for a variety of
reasons:
• To respond to changes in user needs or business
needs
• To take advantage of or respond to technology
changes
• To accommodate improvements in their business
process
• To gain a competitive advantage and/or lower costs
• To increase productivity
• To accommodate growth
• To accommodate downsizing or distribute decision
making
• To replace a system that is aged and unstable
As the environment, technology, and
competition
change, an information system must
continually undergo changes.
These changes range from minor adjustments
to major overhauls.
Occasionally the old system is scrapped and
replaced.
The techniques are used to plan the
development of a system.
Determining what will be feasible in a new
system.
How people respond to systems change.
Underlying Principles of Systems
Development
• Get the owners and users involved
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Use a problem-solving approach
Establish phases and activities
Establish standards
Justify systems as a capital investment
Don’t be afraid to cancel or revise scope
Divide and conquer
Design systems for growth and change
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Systems Development Life Cycle
 Whether systems changes are major or
minor, most companies go through a
systems development life cycle.
 The five stages in the systems
development life cycle (SDLC) are:
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Systems analysis
Conceptual Design
Physical Design
Implementation and Conversion
Operation and Maintenance
Modified SDLC with overlapping stages
SDLC – Systems Analysis
 As organizations grow and change, they
may need more or better information.
 Systems analysis is the first step. It
includes:
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Initial investigation
Systems survey
Feasibility study
Determination of information needs and
system requirements
• Delivery of systems requirements
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SDLC – Conceptual Design
 In the conceptual design phase, the
company decides how to meet user
needs.
 Tasks in this phase include:
• Identify and evaluate design
alternatives
• Develop design specifications
• Deliver conceptual design requirements
SDLC – Physical Design
• In the physical design phase, the broad, user
oriented requirements of the conceptual
design are translated into detailed
specifications that can be used by
programmers to code the programs.
• Tasks include:
 Design outputs, database, and inputs
 Develop programs
 Develop procedures
 Design controls
 Deliver developed system
• Goes to information systems steering
committee
SDLC – Implementation and Conversion
• This is the capstone phase during
which everything comes together.
• Tasks include:
 Develop an implementation and conversion
plan
 Install any new hardware and software
 Train personnel
 Test the system and make any needed
modifications.
 Complete the documentation.
SDLC – Operations and Monitoring
• Once the system is up and running,
operations and monitoring continue.
• Tasks include:
 Fine-tune and do post-implementation
review.
 Operate the system.
 Periodically review and modify the system.
 Do ongoing maintenance.
 Deliver improved system.
 Convert from the old to the new system.
 Deliver operational system.
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The Players
The Players
Many people are involved in developing
and successfully implementing an AIS,
including:
 Top management
 Accountants
 The information systems steering
committee
 The project development team
 Systems analysts
 Computer programmers
 External players
Planning Systems Development
• Systems development planning is an
important
• Step for the following key reasons:
 Consistency with the organization’s
strategic plan.
 Efficiency achieved through coordination of
the subsystems.
 Cutting edge technology and techniques.
 Lower costs due to lack of duplication,
wasted effort, time overruns, and cost
overruns.
 Adaptability for future changes.
Planning Systems Development
Two types of systems development plans
are needed:
 Individual project plans developed by the
project teams.
 A master plan developed by the IS steering
committee.
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Planning Systems Development
• Individual project plans contain:
Planning Systems Development
• A master plan specifies:
 A cost-benefit analysis.
 What the system will consist of
 Developmental and operational
 How it will be developed
requirements, including:
• Human resources
• Hardware
• Software
• Financial resources
• A schedule of activities to develop and
operate the new application
 Who will develop it
 How needed resources will be acquired
 Where the AIS is headed
• It also provides:
 Status of projects in process
 Prioritization of planned projects and
criteria for establishing priorities
 Timetables for development
Planning Systems Development
Planning Techniques
Feasibility Analysis
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 Two techniques for scheduling and
monitoring systems development activities
are:
• Program Evaluation and Review
Technique (PERT)
• Gantt Charts
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During the systems analysis phase, a feasibility study
(aka, a business case) is prepared and is updated
during the remaining steps in the SDLC.
The extent of the feasibility study depends on the size
and nature of the system.
Feasibility team should include:
 Management
 Accountants skilled in controls and auditing
 Systems personnel
 Users
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Feasibility Analysis
Five aspects need to be considered during a
feasibility study:
 Technical
• Do you have the skills and can you acquire the
necessary hardware and software
 Economic
• Do the benefits outweigh the costs
• Both tangible and intangible
 Legal
• Do the laws/regulations permit you to develop the
system
 Operational
• Does the project fit in with the current organisational
operational style and culture
 Schedule
• Can the project be developed in the time available
Behavioural Aspects of Change
How People Resist AIS Changes?
• Resistance to change often takes
one of three forms:
 Aggression
 Projection
 Avoidance
Behavioural Aspects of Change
• The best system will fail without the
support of the people it serves.
• To minimize adverse behavioural
reactions, it helps to understand why
resistance occurs:
 Personal characteristics and background
 Manner in which change is introduced
 Experience with prior changes
 Top management support
 Communication
 Biases and natural resistance to change
 Disruptive nature of the change process
 Fear
Preventing Behavioural Problems
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Meet user’s needs;
Keep communication lines
open;
Maintain a safe and open
atmosphere;
Obtain management
support;
Allay fears;
Solicit user participation;
Provide honest feedback;
Make sure users
understand the system;
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Humanize the system;
Describe new challenges
and opportunities;
Re-examine performance
evaluation;
Test system integrity;
Avoid emotionalism;
Present the system in the
proper context;
Control user
expectations;
And Keep the system
simple.
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Systems Analysis
The project development team will
conduct the systems analysis in five
steps:
 Initial investigation
 Systems survey
 Feasibility study
 Information needs and systems
requirements
 Systems analysis report
Systems Analysis
Data – Where does it come from?
Four common methods of gathering
data are:
 Interviews
 Questionnaires
 Observation
 System Documentation
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Systems Analysis
At the end of this phase, prepare
systems survey report:
 Outlines and documents the data
gathered.
 Provides recommendations that result
from the systems survey.
Systems Analysis
Documentation and Approval of User
Requirements:
 Detailed requirements for the new AIS
should be created and documented.
• How to produce the required features is
determined during the design phases of
the SDLC.
• The requirements list should be
supported by sample input and output
forms and charts that make it easier to
conceptualize.
• A nontechnical summary is often
prepared for management.
Systems Analysis
Strategies for Determining
Requirements:
 One or more of the following four
strategies are used to determine AIS
requirements:
• Ask users what they need
• Analyse existing systems
• Examine existing system use
• Create a prototype
Systems Analysis
The last step in systems analysis is the
systems analysis report.
 Summarizes and documents the activities.
 Serves as a repository of data from which
designers can draw.
 Outlines:
• Goals and objectives of the new system.
• Scope of the project.
• How the new system fits into the company’s
master plan.
• User processing requirements and
information needs.
• Feasibility analysis.
• Recommendations for the new system.
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Systems Analysis
• A go-no-go decision is usually made
three times
• During systems analysis:
 During the initial investigation to
determine whether to go ahead with a
systems survey.
 At the end of the feasibility study to
determine whether to proceed with the
information requirements step.
 At the completion of the analysis phase
to decide whether to proceed to the next
phase (conceptual design).
Systems Analysis
When systems analysis is completed,
the project can move on to:
 Conceptual design phase
 Physical design phase
 Implementation and conversion
 Operation and maintenance
• You’ve learned about the five phases in the
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systems development life cycle, with a
particular emphasis on systems analysis.
You’ve learned who the players are in the
systems development process.
You’ve learned about various techniques
that are used to plan the development of a
system.
You’ve reviewed some techniques for
determining system feasibility.
You’ve learned about behavioural
responses to systems changes and how
dysfunctional behaviour can be minimized.
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