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Accounting information systems 11e romney steinbart chapter 18

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C

HAPTER 18

Introduction to Systems
Development and Systems
Analysis

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

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INTRODUCTION
• Questions to be addressed in this chapter include:
– What are the phases in the systems development
life cycle?
– Who are the individuals involved in systems
development?
– What techniques are used to plan the
development of a system?
– How do you determine whether a particular
system is feasible?
– How do people respond to systems changes, and
how can dysfunctional behavior be minimized?

© 2008 Prentice Hall Business Publishing



Accounting Information Systems, 11/e

Romney/Steinbart

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INTRODUCTION
• 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.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

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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 integrate incompatible systems.
To replace a system that is aged and unstable.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

4 of 153


INTRODUCTION
• Developing quality, error-free software is difficult,
expensive, and time-consuming.
• Projects tend to deliver less than expected and consume

more time and money.
• A KPMG survey found that 35% of all major information
systems projects were classified as runaways—
hopelessly incomplete and over budget.
– Major cause of runaways: Skimping on systems
development processes.

• Omitting basic systems development steps becomes
tempting but may lead to disaster as developers create
well-structured systems that fail to meet user needs or
solve business problems.
© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

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INTRODUCTION
• This chapter discusses five topics:

– Systems development life cycle
– Planning activities during the systems
development life cycle
– Feasibility analysis
– Behavioral aspects of change
– Systems analysis


© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

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SYSTEMS DEVELOPMENT LIFE CYCLE
• Whether systems changes are major or minor, most companies
go through a systems development life cycle.
• In this section, we discuss the steps in the cycle and the people
involved.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

7 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:








Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

8 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:







Systems analysis
Conceptual design
Physical design

Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

9 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may
need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
 Involves gathering the information needed
to buy or develop a new system and
determining whether it is a priority.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

10 of 153



SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may
need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey
 If the system is a priority, survey the
existing system to define the nature and
scope of the project and identify the
strengths and weaknesses of the system.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

11 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may
need more or better information.
• Systems analysis is the first step. It includes:
– Initial investigation
– Systems survey
– Feasibility study
 Involves an in-depth study of the proposed
system to determine whether it’s feasible.


© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

12 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may
need more or better information.
• Systems analysis is the first step. It includes:





Initial investigation
Systems survey
Feasibility study
Determination of information needs and system
requirements
 Involves finding out and documenting what
users and management need.
 This is the most important aspect of
systems analysis.

© 2008 Prentice Hall Business Publishing


Accounting Information Systems, 11/e

Romney/Steinbart

13 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• As organizations grow and change, they may
need more or better information.
• Systems analysis is the first step. It includes:





Initial investigation
Systems survey
 Involves preparation of a report
Feasibility study summarizing the systems analysis work.
report is submitted
to the
information
Determination ofThis
information
needs and
system
systems steering committee.
requirements
– Delivery of systems requirements


© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

14 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:







Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart


15 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• In the conceptual design phase, the company
decides how to meet user needs.
• Tasks in this phase include:
– Identify and evaluate design alternatives
 Possibilities include:
 Buying software
 Developing in-house
 Outsourcing

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

16 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• 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
 Involves writing up details of what the system is to

accomplish and how it is to be controlled and
developed.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

17 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• 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
 These requirements will be forwarded to the
information systems steering committee.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

18 of 153



SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:







Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

19 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• In the physical design phase, the broad, useroriented 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

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

20 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:








Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

21 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• This is the capstone phase during which everything
comes together.
• Tasks include:
– Develop an implementation and conversion plan.
• Needed because of the complexity and importance of this phase.

– Install any new hardware and software.
– Train personnel.
• New employees may need to be hired and trained or existing
employees relocated.







Test the system and make any needed modifications.
Complete the documentation.
Convert from the old to the new system.
Deliver operational system.
• Send the final report to the IS steering committee.

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

22 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• The five stages in the systems development life cycle are:







Systems analysis
Conceptual design

Physical design
Implementation and conversion
Operation and maintenance

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

23 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• 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.

© 2008 Prentice Hall Business Publishing


Accounting Information Systems, 11/e

Romney/Steinbart

24 of 153


SYSTEMS DEVELOPMENT LIFE CYCLE
• Eventually, a major modification or system
replacement is necessary, and the systems
development life cycle (SDLC) will start over.
• In addition to the preceding five phases, three
activities are performed throughout the life cycle:
– Planning.
– Managing behavioral reactions to change.
– Assessing ongoing feasibility.

• These three activities will be discussed in this
chapter.
• Additionally, the first phase in the SDLC, systems
analysis, will be discussed in more detail.
© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

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