Accounting Information Systems

9th 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 and Systems Analysis Chapter 16

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

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Learning Objectives
1.

1.

1.

Explain the five phases of the systems development life cycle. Discuss the people involved in systems development and the roles they play. 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.

1.

1.

Discuss the various types of feasibility analysis, and calculate economic feasibility. Explain why systems change triggers behavioral reactions, what form this resistance to change takes, and how to avoid or minimize the resulting problems. 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 SMs periodic, preformatted reports. The sales and purchasing departments cannot get timely information about what products are or are not selling well.

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Introduction

Ann is convinced that Shoppers Mart needs a new information system. She has the following questions:
1.

2.

What process must the company go through to obtain and implement a new system? What types of planning are necessary to ensure the systems success?
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Introduction
3. 4.

5.

How will employees react to a new system? How should the new system be justified and sold to top management? How can expected costs and benefits be quantified to determine whether the new system will indeed be costeffective?
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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).

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

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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. 1. 1. 1. 1.

Systems analysis Conceptual design Physical design Implementation and conversion Operations and maintenance
2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

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
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Implementation and Conversion

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The Systems Development 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 Finetune and review Deliver operational system

Life

Operation and Maintenance

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The Systems Development Cycle: Operation and Maintenance

Operation and Maintenance Operate system Modify system Do ongoing maintenance Deliver improved system Systems Analysis
2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Life

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.

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

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The Players

Who are the people involved in developing and implementing AIS?

g g g g g g

Management Accountants Information systems steering committee Project development team Systems analysts and programmers External players
2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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The Players

What are top managements 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

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

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The Players

What are the steering committees 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 teams roles?

plan each project monitor project make sure proper consideration is given to the human element

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

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The Players

What are the system analysts and programmers roles?

study existing systems design new systems and prepare specifications write computer programs

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

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Learning Objective 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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Planning Systems Development

Why is planning an important step in systems development?

consistency efficiency cutting edge lower costs adaptability

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

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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.

Gantt chart
A bar chart with project activities listed on the lefthand side and units of time across the top

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

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Planning Techniques: Gantt Chart

Project Planning Chart (Sample Gantt Chart) ________________________________________________
Activity Week Starting ________________________________________________ 1 ________________________________________________ 2 ________________________________________________ 3 ________________________________________________ 4 ________________________________________________ 5 ________________________________________________ 6 ________________________________________________ 7 ________________________________________________ 8 ____________________________
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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.
2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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Feasibility Analysis

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

1. 1. 1. 1. 1.

Technical feasibility Operational feasibility Legal feasibility Scheduling feasibility 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 peoples reaction and resistance to change. The best system will fail without the support of the people it serves.

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

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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
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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 systems 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 systems problems, why the change is needed, and the proposed systems 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. 1. 1. 1. 1.

Initial investigation Systems survey Feasibility study Information needs and systems requirements 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

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