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©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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Accounting Information Systems9th Edition

Marshall B. Romney

Paul John Steinbart

©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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Introduction to Systems Development andSystems Analysis

Chapter 16

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Learning Objectives

1. Explain the five phases of the systems development life cycle.

2. Discuss the people involved in systems development and the roles they play.

3. Explain the importance of systems development planning and describe planning techniques.

©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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Learning Objectives

4. Discuss the various types of feasibility analysis, and calculate economic feasibility.

5. Explain why systems change triggers behavioral reactions, what form this resistance to change takes, and how to avoid or minimize the resulting problems.

6. Discuss the key issues and steps in systems analysis.

©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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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

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Introduction

Ann is convinced that Shoppers Mart needs a new information system.

She has the following questions:1. What process must the company go

through to obtain and implement a new system?

2. What types of planning are necessary to ensure the system’s success?

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Introduction

3. How will employees react to a new system?

4. How should the new system be justified and sold to top management?

5. How can expected costs and benefits be quantified to determine whether the new system will indeed be cost-effective?

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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).

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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).

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Learning Objective 1

Explain the five phases of the systems development life cycle.

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The Systems Development Life Cycle

What are the five steps in the systems development life cycle (SDLC)?

1. Systems analysis

2. Conceptual design

3. Physical design

4. Implementation and conversion

5. Operations and maintenance

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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

Conceptual Design

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The Systems Development Life Cycle: Conceptual Design

Conceptual Design Identify and evaluate design alternatives

Develop design specifications Deliver conceptual design

requirements

Physical Design

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The Systems Development Life Cycle: Physical Design

Physical Design Design output Design database Design input Develop programs

Develop procedures Design controls

Deliver developed system

Implementation and Conversion

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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

Operation and

Maintenance

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The Systems Development Life Cycle: Operation and Maintenance

Operation and Maintenance Operate system

Modify system Do ongoing maintenance Deliver improved system

SystemsAnalysis

Feasibility analysis and decision points:

Economic Feasibility

Technical Feasibility

Legal Feasibility

Scheduling Feasibility

Operational Feasibility

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Learning Objective 2

Discuss the people involved in systems development and the roles they play.

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The Players

Who are the people involved in developing and implementing AIS?ManagementAccountants Information systems steering

committeeProject development teamSystems analysts and programmersExternal players

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The Players

What are top management’s roles?– providing support and encouragement– establishing system goals and

objectives– determine information requirements

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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

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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

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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

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The Players

What are the system analyst’s and programmer’s roles?– study existing systems– design new systems and prepare

specifications– write computer programs

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Learning Objective 3

Explain the importance of systems development planning and describe planning techniques.

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Planning Systems Development

Why is planning an important step in systems development?– consistency– efficiency– cutting edge– lower costs– adaptability

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Planning Systems Development

What types of systems development plans are needed?– project development plan– master plan

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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 left-

hand side and units of time across the top

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Planning Techniques: Gantt Chart

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Activity Week Starting12345678

Project Planning Chart (Sample Gantt Chart)

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Learning Objective 4

Discuss the various types of feasibility analysis, and calculate economic feasibility.

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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.

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Feasibility Analysis

What five important aspects need to be considered during a feasibility study?

1. Technical feasibility

2. Operational feasibility

3. Legal feasibility

4. Scheduling feasibility

5. Economic feasibility

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Feasibility Analysis

Economic feasibility is the most frequently analyzed of the five aspects.

What is the basic framework for feasibility analysis?– capital budgeting model

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Feasibility Analysis

What are some capital budgeting techniques?– payback period– net present value (NPV) – internal rate of return (IRR)

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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.

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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.

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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

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Behavioral Aspects of Change

How do people resist AIS changes?– aggression– projection– avoidance

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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

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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

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Learning Objective 6

Discuss the key issues and steps in systems analysis.

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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

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Systems Analysis

There are five steps in the analysis phase:

1. Initial investigation

2. Systems survey

3. Feasibility study

4. Information needs and systems requirements

5. Systems analysis report

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Case Conclusion

What did Ann Christy decide?– that the corporate office would

gather daily sales data from each store

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End of Chapter 16