Systems Development Life Cycle

A systems study or systems development work begins with a formal investigation of an existing information system to identify strengths and weaknesses.

Who actually performs a systems study?

This varies from company to company as well as among projects.

In-house professionals (large organizations) Hire outside consultants (smaller companies)

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

Risk Assessment and Security Policies

Design
Changes that eliminate weak points Preserve the strengths

Implementation, Follow-up, and Maintenance

Resource acquisition Training employees Identify new problems and correct

Systems Development Life Cycle

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

a preliminary investigation of the current system organizing a systems study team, and developing strategic plans.

Systems Planning and Investigation involves

Planning for Success

1. approach problems from a broad point of view, 2. use an interdisciplinary study team to evaluate information systems, and 3. make the study team work closely with a steering committee

1.Broad Viewpoint in a Systems Study

a systems approach aligned with mission, goals, and objectives.

2.The Study Team and the Steering Committee

top management personnel critical to the success of a new system.

Investigating Current Systems reports

the problems or objectives the study team identified, solutions or alternatives it investigated, and further course(s) of action it recommends.

The preliminary investigation separates the symptoms from the causes, considers alternatives to the current system, attempts to estimate the costs and benefits, and recommends desired alternatives. The study team submits this report to the company steering committee.

The Study Team consists of interdisciplinary specialists

the importance of a broad viewpoint interdisciplinary knowledge

communicates
closely with companys managers meaningfully to provide solutions

The Steering Committee interfaces between the companys management and the study team includes top management personnel like
the controller, the vice president of finance, the top-level information systems manager one or more staff auditors, and the CEO (for very important projects)

may disband the study team and do nothing, perform further preliminary investigations, or proceed to the formal systems analysis stage

The basic purpose of the systems analysis phase is to examine a system in depth. The study team will familiarize itself with the companys current operating system, identify specific inputs and outputs, identify system strengths and weaknesses, and eventually make recommendations for further work.

Understanding Organizational Goals

Special importance is determining which goals are not being achieved under the present system and why this happens. Organization goals include: 1) general systems goals, 2) top management systems goals, and 3) operating management systems goals.

General Systems Goals

General systems goals apply to most organizations information systems and help an AIS contribute to an efficient and effective organization. The study team must determine whether the current information system helps to achieve general systems goals.

Top Management Systems Goals

Provide top managers with long-range budget planning data so they can make effective strategic decisions regarding future product-line sales or comparable business activities.

Operating Management Systems Goals

Much of the information required for operating managers decisions is generated internally as a by-product of processing a companys accounting data.

Systems Survey Work

The objective of a systems survey is to enable the study team to obtain a more complete understanding of the companys current operational information system and its environment. The overall objective is to retain the systems strengths while eliminating the systems weaknesses, especially those weaknesses causing problems in the current system.

Data Gathering
A systems survey requires the study team to gather data about the existing system. There are several ways of doing this, including: Review Existing Documentation Observe the Current System in Operation Use Questionnaires and Surveys Review Internal Control Procedures Interview System Participants

Data Analysis
Systems analysis work necessarily takes longer than a preliminary investigation. The most important deliverable from the analysis portion of the systems study, is the final systems analysis report, which signals the end of the analysis phase of the systems study.

Evaluating System Feasibility

Feasibility evaluation where the design team determines the practicality of alternative proposals. The design team must examine five feasibility areas: 1) technical feasibility, 2) operational feasibility, 3) schedule feasibility, 4) legal feasibility, and 5) economic feasibility.

Technical Feasibility
The technical feasibility of any proposed system attempts to answer the question, What technical resources are required by a particular system?

Operational Feasibility
The operational feasibility of a proposed system examines its compatibility with the current operating environment. Operational-feasibility analysis is mostly a human relations study because it is strongly oriented toward people problems.

Schedule Feasibility
Timeliness is important. Schedule feasibility requires the design team to estimate how long it will take a new or revised system to become operational and to communicate this information to the steering committee.

Legal Feasibility
A new or revised system should comply with all applicable federal and state statutes about financial reporting requirements, as well as the companys contractual obligations.

Economic Feasibility
Through economic feasibility evaluation, the design team attempts to assess whether the anticipated benefits of the system exceed its projected costs. This analysis takes into account all costs, including indirect costs such as time spent by current employees on implementing the new system. The point of the economic feasibility analysis is to get a best estimate of the worthiness of a project.

SYSTEM DESIGN
the process of defining the architecture, components, modules,
interfaces, and data for a system to satisfy specified requirements.

DESIGNING SYSTEM OUTPUTS, PROCESSES, AND INPUTS

System Outputs. *The design team will use the data gathered from the prior systems analysis work to help it decide what kinds of outputs are needed as well as the formats that these outputs should have. Process Design * identify the processing procedures required to produce them. This involves deciding which application programs are necessary and what data processing tasks each program should perform. Designing System Inputs * Once the design team has specified the outputs and processing procedures for a new project, its members can think about what data the system must collect to satisfy these output and processing requirements

PROTOTYPING
developing a simplified model of a proposed information system.
A prototype is a scaled-down, experimental version of a nonexistent information system that a design team can develop cheaply and quickly for user-evaluation purposes

SYSTEMS SPECIFICATIONS REPORT.

After the design team completes its work of specifying the
inputs, outputs, and processing requirements of the new system, the members will summarize their findings here.

CHOOSING AN ACCOUNTING INFORMATION SYSTEM

SELECTION CRITERIA
The Performance Capability of Each Proposed System Costs and Benefits of Each Proposed System Maintainability of Each Proposed System Compatibility of Each Proposed System with Existing Systems Vendor Support

POINT-SCORING ANALYSIS
A technical approach for evaluating hardware or
software that meets most of a companys major requirements

OUTSOURCING
Outsourcing is an effective cost-saving strategy when
used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally

 Implementation Managing

Activities

IT Implementation Projects

Postimplementation System

Review

Maintenance

Chapter 13-36

 Prepare

the physical site functional changes

Determine Select Train

and assign personnel

personnel and install computer equipment

Chapter 13-37

Acquire

 Establish Convert Acquire Test

internal controls

data files computer software

computer software to the new system

Chapter 13-38

Convert

 Program

Evaluation and Review Technique

Also known as PERT Helps identify critical paths Recognize areas where slack time occurs

Gantt

Charts

Useful for scheduling and tracking Easy to understand Best suited for projects lacking complexity
Chapter 13-39

Chapter 13-40

Chapter 13-41

 Project

Management Software

Operates on desktop or notebook computers Aids in the management of implementation

projects Divides project into simpler activities Estimates time and cost of activities

Chapter 13-42

 Reevaluate

new systems effectiveness

Talk with personnel about satisfaction levels Talk with end users about satisfaction levels Evaluate control procedures and effectiveness

Observe employee work performance

Evaluate computer processing functions Determine output schedule timing and

effectiveness
Chapter 13-43

 System

Maintenance

Performed by IT function Continues tasks created by initial follow-up

study
Responsibilities

Identify errors and anomalies Estimate costs of fixing items Perform necessary modifications
Chapter 13-44

Chapter 13-45