consuming.‘Step Initial investigation . Accounting Information Systems 3 Steps in System Analysis Objecti Investigate each development activity to define the problem to be solved Make a preliminary assessment of feasibility, Prepare a proposal to conduct systems analysis. Study the present system to gain a thorough understanding of how it works. Develop a more thorough feasibility analysis, economic costs and benefits, Identify information needs of users. Determine objectives and requirement of the new systemAccounting Information Systems System Development Life Cycle (SDLC): Development Phases As the environment, technology, and competition change; an information system should continually undergo changes The changes range from minor adjustments to major overhauls. Eventually the old system is replaced The systems development life cycle includes five stage Phase 1: Systems Analysis, Phase 2: Conceptual Design Phase 3: Physical Design, Phase 4: Implementation and Conversion, and Phase 5: Operation and Maintenance. Sauna nd ork coke keel aX aD Neca + The. system. analysis, phase. include: A) Initial Investigation: I+ involves: © Determination of the vi of the project © Identifying c« the problem ) what is wrong with the 6 components of AIS [people, software, data ..]Accounting Information Systems 5 ithered. froms 2. External sources such asi Consultants, Customers, Suppliers, Industry associations, Government agencies 3, Documentations such ax chants and procedures manuals for gathering datas , Observation, and System Documentation Ie Systems may not always work as illustrated per the d System to determine whether it is all time as the benefits and costs ofAccounting Information Systeme & o There are 4 Strategies for Determining the Requirements from the Hrstem: {we can apply one or combine from the} 1. Analyzing existing systems 2. Examining existing system uses 3. Asking users what they need 4, Create a prototype © Report & Documentation and Approval of User Requirements should be prepared E) Delivery of Systems Analysis Report: © Ttreport, summarizes and documents the systems analysis work, and submitted it to information systems steering committee (Top Level), © During the systems analysis phase, a feasibility study is prepared and updated regularly during the remaining steps in the SDLC due to dynamic environment. o The ote feasibility study depends on the size and nature of the system 3. Systems personnel 4. Users e considered under. feasibility, analysis’, logy available to do it? who can do it available? [Hire new employees sting personnel} legal, regulatory, and contractual obligatio in time? [Time schedule} costs?Accounting Information Systems Calculation of Economic Fea: ty Costs and Benefits » Benefits. might. include: Any incremental (extra) (additional) (new) income or cash inflows Cost savings and other benefits Improved customer service, productivity, decision making, or data processing. Better management control » Costs include: Tt includes: Initial Investments Costs & Operating Costs each year Such as: Equipment costs, Software costs, Human resource costs, Site preparation costs, Installation and, conversion costs, Supplies, Overhead, Financial charges....etc. Benefits and costs should be estimated and included even if they are quantifiable, Tf some costs and benefits ¢: at least be listed, Typical capital budgeting methods are used such as: [payback period, net present value (NPV), and internal rate of return (IRR)].In this phase, the broad user-oriented requirements of the conceptual design are translated into detailed specifications that can be used by programmers to code the programs. » Tasks include: Design outputs, database, and inputs Develop programs Develop procedures Design controls Deliver developed system Report must be prepared a TE System Development Life Cycle (SDLC) - Phase (4): Implementation and Conversion | © This is the capstone phase during which everything comes together. Tasks include: Develop an implementation and conversion plan Install any new hardware and software Train personnel (New employees may be hired or existing employees) Test the system and make any needed modifications cumentation. sid to the new system.Accounting Information Systems 9 system Development Life Cycle (SDLC) - Phase (5): Operations & Maintenances ‘ Once the system is up and running, operations and monitoring the system continue, o Tasks include: ~ Fine-tuning and doing post-implementation review — Operating the system. — Periodically ng and modifying the system. — Performing on are involved in developing and successfully implementir system, including: