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 13-3 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 13-4 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 13-5 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 13-8 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 Implementation Activities Prepare the physical site Determine functional changes Select and assign personnel Train personnel Acquire and install computer equipment Chapter 13-41 Implementation Activities Establish internal controls Convert data files Acquire computer software Test computer software Convert to the new system Chapter 13-42 Managing IT Implementation Projects 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 13-43 PERT Chapter 13-44 Gantt Chart Chapter 13-45 Managing IT Implementation Projects 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 13-46 Postimplementation Review Reevaluate new system’s 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 13-47 System Maintenance 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 13-48 System Maintenance Costs Chapter 13-49 Study Break #4 Prototyping, as an IT development approach, has both advantages and disadvantages In general, prototyping is most appropriate when: A.The design team is not pressed for time in creating a new system B.Users have a thorough understanding of their information needs C.There are high risks associated with developing an implementing an ineffective system Chapter D.System requirements are easily defined 13-50 Study Break #4 - Answer Prototyping, as an IT development approach, has both advantages and disadvantages In general, prototyping is most appropriate when: A.The design team is not pressed for time in creating a new system B.Users have a thorough understanding of their information needs C.There are high risks associated with developing and implementing an ineffective system Chapter D.System requirements are easily defined 13-51 Study Break #5 A point-scoring analysis: A.Is a useful tool in conducting a feasibility analysis B.Helps the systems study team to decide whether or not to outsource their AIS C.Provides a systems study team with an objective means for selecting a final AIS D.Is a tool used for managing IT projects Chapter 13-52 Study Break #5 - Answer A point-scoring analysis: A.Is a useful tool in conducting a feasibility analysis B.Helps the systems study team to decide whether or not to outsource their AIS C.Provides a systems study team with an objective means for selecting a final AIS D.Is a tool used for managing IT projects Chapter 13-53 Copyright Copyright 2011 John Wiley & Sons, Inc All rights reserved Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc The purchaser may make backup copies for his/her own use only and not for distribution or resale The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein Chapter 13-54 Chapter 13 Chapter 13-55 ... 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... Follow-up, and Maintenance  Resource acquisition  Training employees  Identify new problems and correct Chapter 13- 5 Systems Development Life Cycle Chapter 13- 6 Systems Studies and AISs Applications... Phase Chapter 13- 26 Detailed Systems Design Designing System Outputs, Processes and Inputs Prototyping The Systems Specifications Report Choosing an Accounting Information System Outsourcing Chapter