Accounting information systems 12th SIMKIN and norman chapter 13

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
13-1


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
13-2

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
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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
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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
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Systems Development
Life Cycle

Chapter
13-6

Systems Studies and AISs
Applications Portfolio
 Enterprise

system
 Specialized information systems for functional areas

Impacts of Systems Studies
 Work

flows
 Data gathering and recording tasks
 Employee responsibilities
 Rewards of managers
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
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Study Break #1 - Answer
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
13-9


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
13-10


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
13-11


Systems Analysis
Purpose
 Become

familiar with current system
 Identify inputs and outputs
 Identify strengths and weaknesses
 Make recommendations

Study Team Activities
 Identify

and understand system goals
 Perform a systems survey
 Report findings

Chapter
13-12


Systems Analysis Procedures

Chapter
13-13


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
13-14

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
13-15


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
13-16


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
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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
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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
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Study Break #2
The feasibility evaluation:
A.Is completed prior to detailed systems design
B.Includes economic, schedule, technical, legal, and operational

feasibility
C.Both a and b are true
D.Neither a nor b is true

Chapter
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Study Break #2 - Answer
The feasibility evaluation:
A.Is completed prior to detailed systems design
B.Includes economic, schedule, technical, legal, and operational
feasibility
C.Both a and b are true
D.Neither a nor b is true

Chapter
13-23


Study Break #3
In developing an implementing IT, the study team and steering
committee must consider organizational goals. These include:
A.General, technical, and top management goals
B.General, operating management, and technical goals
C.Top management, operating management, and economic
goals
D.Top management, operating management, and general
systems goals
Chapter

13-24


Study Break #3 - Answer
In developing an implementing IT, the study team and steering
committee must consider organizational goals. These include:
A.General, technical, and top management goals
B.General, operating management, and technical goals
C.Top management, operating management, and economic
goals
D.Top management, operating management, and general
systems goals
Chapter
13-25