Chapter 1 The Accounting Systems Development Environment

After reading this chapter you should better understand the accounting systems development environment.

Video: http://www.youtube.com/watch?v=tChuHB4eHQM Question: Why should accountants know systems analysis? Video: http://video.google.com/videoplay?docid=-9103122443686683744&q=%22computer+history
%22&total=363&start=10&num=10&so=0&type=search&plindex=9

Question: Given the history of computing what do you expect the future of computing to be? Accounting Information systems analysis and design is the complex organizational process through which computer-based information systems are developed and maintained. More and more the accountant and auditor are assuming the role of systems analyst as part of their roles as trusted business advisor in the organization. With the expanded use of Enterprise Systems or Enterprise Resource Planning (ERP) Systems in the organization there is a blurring of what is an accounting information system (AIS) and what is a management information system (MIS). For example, a sales transaction amount could be captured and with the amount could be detailed information on location, product color and style and what else the customer purchased. This could be used for marketing information systems. Chapter 1 The Systems Development Environment

Introduction Information Systems Analysis and Design

Complex process whereby computer information systems are developed and maintained -based

Application Software
Result of systems analysis and design Designed to support specific organizational functions or processes

1.5 1.5

In the early years of computing, analysis and design were considered an art. However, with the growing importance and changing nature of information technology and its usage in the work environment, work methods have evolved, making analysis and design a disciplined process. Through the years, the systems developers job has moved from builder to integrator. In the 1950s, the development effort concentrated on the processes the software performed; emphasis was placed on automating existing processes; all applications were developed in machine language or assembly language and developed from scratch. In the 1970s, systems development became more disciplined as many people worked to make it more like engineering. In the 1980s, microcomputers became key organizational tools; the software industry expanded greatly; fourthgeneration languages were used more and more to write applications, and CASE tools were developed. In the 1990s, the focus shifted to system integration, and developers were using visual programming environments to design user interfaces. Databases began residing on servers, as well as the application logic. Companies began purchasing enterprise-wide systems, and more and more systems development focused on the Internet, particularly the Web. The current focus is on Web-based systems development and wireless components. Additionally, many system implementations use a three-tier design. Currently, companies may assemble their systems using off-the-shelf components or by using application service providers.

Introduction
Software engineering processes have been developed to assist in analysis and design
Methodologies
Comprehensive, multi-step approaches to systems development

Techniques
Processes that are followed to ensure that work is well thought-out, complete and comprehensible to others on the project team

Tools
Computer programs to assist in application of techniques to the analysis and design process
1.6 1.6

This class discusses transaction processing systems, management information systems, decision support systems, and expert systems. Transaction processing systems automate the handling of data about business activities or transactions. Management information systems take the information generated by transaction processing systems and convert it into aggregated forms meaningful to managers. Decision support systems are designed to help organizational decision makers make decisions by providing an interactive environment that uses data and models. Expert systems represent attempts to codify and manipulate knowledge rather than information by mimicking experts in particular knowledge domains.

Introduction
Systems Analyst performs analysis and design based upon:
Understanding of organizations objectives, structure and processes Knowledge of how to exploit information technology for advantage

1.8 1.8

The five systems development life cycle (SDLC) phases are planning, analysis, design, implementation, and maintenance. During the planning phase, an organizations total information system needs are identified, analyzed, prioritized, and arranged. During the analysis phase, requirements are gathered from users. The requirements are then studied and organized. Finally, any redundancies are eliminated. The output of this phase is a solution recommended by the analysis team. During the design phase, the description of the recommended solution is converted into logical and then physical system specifications. During the implementation phase, the information system is coded, tested, installed, and supported in the organization. During the maintenance phase, the system is systematically repaired and improved.

Data and Processes

Three key components of an information system
Data Data Flows Processing Logic

Data vs. Information

Data
Raw facts

Information
Derived from data Organized in a manner that humans can understand.
1.1 1.1

There have been several problems with the traditional waterfall SDLC identified in the literature. One is that the SDLC forces dynamic processes into timed phases that were doomed to fail. Although the designing software is a form of engineering, it is much more of a dynamic process. Another problem is that the SDLC has resulted in much process and documentation. Many organizations have a large overhead of staff whose sole purpose is to create and maintain the documentation for the SDLC. Some alternatives to the traditional SDLC, such as the Agile Methodology, have attempted to streamline documentation.

Systems Development Life Cycle

Series of steps used to manage the phases of development for an information system Consists of six phases:

1.1 1.1

Project Identification and Selection Project Initiation and Planning Analysis Design Implementation Maintenance

Methodologies, techniques, and tools help ensure the quality and appropriateness of the system being built. Following a systems methodology, applying techniques, and using appropriate tools provides structure to the systems development process, since they have been tested and perfected by others. The quick and easy approach to building systems may be easier, cheaper, and quicker in the short run, but it almost always results in a poorly developed system, meaning that the system will be less than optimal and require extra work to maintain. In the long run, a poorly developed system requires more time and money to make right. Following an engineering-type approach ensures that systems analysis and design is rigorous, structured, and systematic. Prototyping is an iterative process of systems development by which requirements are converted to a working system, which is continually revised through close work between an analyst and users. Prototyping is useful for requirements determination, helping to clarify and communicate user requirements. Also, a prototype can serve as the basis for the final system. As an example, imagine that an analyst is developing a computerized inventory-tracking system. This inventorytracking system provides a sales representative with real-time access to inventory levels. The analyst asks the sales representative what kinds of inventory information he needs, including when and where he needs to access this information. Using a graphical, object-oriented development tool, such as Microsoft Visual Basic, the analyst quickly builds several sample interface displays. The sales representative reviews these displays and provides the analyst with feedback. Based on this feedback, the analyst modifies the displays and, again, solicits feedback from the sales representative. Given Visual Basics ease of use, the analyst can build the sample interfaces on-the-fly with the sales representative present. The sample interfaces can be used to build the actual system, either in Visual Basic or in some other development environment.

Approaches to Development
Prototyping
Building a scaled-down working version of the system Advantages:
Users are involved in design Captures requirements in concrete form

Rapid Application Development (RAD)

Utilizes prototyping to delay producing system design until after user requirements are clear

1.1 1.1

Joint Application Design (JAD) is a structured process in which users, managers, and analysts work together for several days in a series of intensive meetings to specify or review system requirements. Computer Aided Software Engineering (CASE) tools are software that provide automated support for some portion of the systems development life cycle. CASE tools are built around a repository that contains all of the metadata (such as data names, format, uses and location) for data elements as well as the system specifications. CASE tools automate the repository for easier updating. Included in the CASE tools are diagramming tools to produce dataflow diagrams, entityrelationship diagrams, screen and report designs. CASE tools automate routine tasks to help programmers and analysts do their jobs better.

Improving IS Development Productivity

Computer-aided software engineering (CASE) tools
Facilitate creation of a central repository for system descriptions and specifications

1.1 1.1

Rapid Application Development (RAD) is a systems development methodology created to decrease the time needed to design and implement an information system. One of the hallmarks of RAD is extensive user involvement through traditional JAD sessions as well as evaluation of prototypes. RAD also includes integrated CASE tools and code generators.

Review Questions:
1. Why should accountants be interested in systems analysis & design? 2. How has systems analysis changed over the last 4 decades? 3. List the different classes of information systems discussed in the chapter and indicate how they differ. 4. List and explain the different phases in the systems development life cycle. 5. What roles do accountants play in the SDLC?

6. What are the benefits of prototyping? 7. What is JAD and its benefits?

Problems:
1. Why is it important to use a methodology in designing a new system? Why no use the quick and easy approach? 2. Discuss how prototyping can be used in the SDLC. 3. Discuss how accountants should be involved in the SDLC. 4. Find another SDLC in a textbook or other source. What are the differences with the one in this chapter? 5. Why would you depart from the SDLC and use rapid application development (RAD)?