Accounting Information Systems 9 th Edition

Learning Objectives • 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

Learning Objectives • 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

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 SM’s periodic, preformatted reports. • The sales and purchasing departments cannot get timely information about what products are or are not selling well. ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Introduction • Ann is convinced that Shoppers Mart needs a new information system. • She has the following questions: • What process must the company go through to obtain and implement a new system? • What types of planning are necessary to ensure the system’s success? ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Introduction • 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 cost-effective? ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

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

The Systems Development Life Cycle • What are the five steps in the systems development life cycle (SDLC)? • Systems analysis • Conceptual design • Physical design • Implementation and conversion • Operations and maintenance ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

The Systems Development Life Cycle: Conceptual Design Conceptual Design Identify and evaluate design alternatives Develop design specifications Deliver conceptual design requirements Physical Design ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

The Systems Development Life Cycle: Physical Design Physical Design Design output Design database Design input Develop programs Develop procedures Design controls Deliver developed system Implementation and Conversion ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

The Systems Development Life 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 Fine-tune and review Deliver operational system Operation and Maintenance ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

The Systems Development Life Cycle: Operation and Maintenance Feasibility analysis and decision points: Economic Feasibility Technical Feasibility Legal Feasibility Scheduling Feasibility Operational Feasibility 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

The Players • Who are the people involved in developing and implementing AIS? • 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

The Players • What are top management’s roles? • providing support and encouragement • establishing system goals and objectives • determine information requirements ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

The Players • What are the steering committee’s roles? • set policies that govern the AIS • ensures top-management participation • guidance and control • facilitates coordination and integration of IS activities ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

The Players • What are the project development team’s 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

The Players • What are the system analyst’s and programmer’s 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

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

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

Planning Systems Development • What types of systems development plans are needed? • project development plan • master plan ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Planning Techniques • Two techniques for scheduling and monitoring systems development activities are: • 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 left-hand side and units of time across the top ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

Learning Objective 4 Discuss the various types of feasibility analysis, and calculate economic feasibility. ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

Feasibility Analysis • What five important aspects need to be considered during a feasibility study? • Technical feasibility • Operational feasibility • Legal feasibility • Scheduling feasibility • Economic feasibility ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Feasibility Analysis • Economic feasibility is the most frequently analyzed of the five aspects. • What is the basic framework for feasibility analysis? • capital budgeting model ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Feasibility Analysis • What are some capital budgeting techniques? • payback period • net present value (NPV) • internal rate of return (IRR) ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

Behavioral Aspects of Change • Individuals involved in systems development are agents of change who are continually confronted by people’s 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

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

Behavioral Aspects of Change • How do people resist AIS changes? • aggression • projection • avoidance ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

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

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 system’s integrity • avoid emotionalism • present the system in the proper context • control the users’ expectations • keep the system simple ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Systems Analysis • When a new or improved system is needed, a written request for systems developmentis prepared. • The request describes the current system’s problems, why the change is needed, and the proposed system’s goals and objectives. • It also describes the anticipated benefits and costs. ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Systems Analysis • There are five steps in the analysis phase: • Initial investigation • Systems survey • Feasibility study • Information needs and systems requirements • Systems analysis report ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Case Conclusion • What did Ann Christy decide? • that the corporate office would gather daily sales data from each store ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart

Accounting Information Systems 9 th Edition