Chapter
13-1
Chapter 13:
Developing and Implementing Effective
Accounting Information Systems
Introduction
System Development Life Cycle
Systems Planning
Systems Analysis
Detailed Systems Design
Implementation, Follow-Up, and Maintenance
Chapter
13-2
Introduction
Purpose of IT Governance
 Ensure
IT is used effectively, efficiently, and
strategically
Study of IT Systems
 Planning
and analysis through development
 Design, Development, and Implementation
 Maintenance of AIS applications
Chapter
13-3
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)
Chapter
13-4
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
Chapter
13-5
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
Chapter
13-6
Systems Development
Life Cycle
Chapter
13-7
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?
A.Planning and Investigation
B.Analysis
C.Design
D.Implementation, Follow-up, and Maintenance
Chapter
13-8
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
Chapter
13-9
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
Chapter
13-10
Systems Analysis
Purpose
 Become familiar
with current system (AS-IS system)
 Identify inputs and outputs
 Identify strengths and weaknesses
 Make recommendations (TO-BE system)
Study Team Activities
 Identify
and understand system goals
 Perform a systems survey
 Report findings
Chapter
13-11
Systems Analysis Procedures
Chapter
13-12
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
Chapter
13-13
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
Chapter
13-14
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
Chapter
13-15
Systems Survey Work
Data Gathering
 Review
existing documentation or create new
materials
 Observe the current system in operation
 Use questionnaires and surveys
 Review internal control procedures
 Interview systems participants
Chapter
13-16
Information Gathering Strategies
 Document
Analysis
 Observation
 Questionnaires
 Interviews
 Joint Application Design (JAD) sessions
Chapter
13-17
Systems Survey Questionnaire
Chapter
13-18
Data Analysis
Components
 Create summary statistics
 Systems
documentation
Time Period
 Longer than
preliminary investigation
 May provide interim reports
Conclusions
 Final
systems analysis report
 Submit to steering committee
Chapter
13-19
Evaluating System Feasibility
Technical Feasibility
 Required
technical resources
 Technical skills of current employees
Operational Feasibility
 Compatibility
with current environment
 Capabilities of current employees
Chapter
13-20
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
Chapter
13-21
Steps in the Systems Design Phase
Chapter
13-22
Detailed Systems Design
Designing System Outputs, Processes and
Inputs
Prototyping
The Systems Specifications Report
Choosing an Accounting Information System
Outsourcing
Chapter
13-23
Detailed Systems Design
Chapter
13-24
Designing System Outputs,
Processes, and Inputs
System Outputs
 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
Chapter
13-25
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
Chapter
13-26
Prototyping
Concepts
 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
Chapter
13-27
Steps in Prototyping
Chapter
13-28
The Systems
Specifications Report
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
Chapter
13-29
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
Chapter
13-30
Choosing an AIS
Point-Scoring Analysis
 Used
to evaluate possibly solutions
 Identifies point value for each criteria
Selecting a Finalist
Making a Final Decision
Chapter
13-31
Point-Scoring Analysis
Chapter
13-32
Outsourcing
Business Process Outsourcing
 Wide
range of possible activities
 Routine function to entire operation
Knowledge Process Outsourcing
 Contract
to perform research or other knowledgerelated work
Chapter
13-33
Outsourcing
Advantages
 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
Chapter
13-34
Implementation, Follow-Up,
and Maintenance
Implementation Activities
Managing IT Implementation Projects
Postimplementation Review
System Maintenance
Chapter
13-35
Implementation Activities
Prepare the physical site
Determine functional changes
Select and assign personnel
Train personnel
Acquire and install computer equipment
Chapter
13-36
Implementation Activities
Establish internal controls
Convert data files
Acquire computer software
Test computer software
Convert to the new system
Chapter
13-37
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
Chapter
13-38
Postimplementation 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
Chapter
13-39
System Maintenance
System Maintenance
 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
Chapter
13-40
System Maintenance Costs
Chapter
13-41
Study Break #4
Prototyping, as an IT development approach, has both
advantages and disadvantages. In general, prototyping is most
appropriate when:
A.The design team is not pressed for time in creating a new
system
B.Users have a thorough understanding of their information
needs
C.There are high risks associated with developing an
implementing an ineffective system
Chapter
D.System requirements are easily defined
13-42