ACCOUNTING INFORMATION SYSTEM

GAGE UNIVERSITY COLLEGE- ADDISU GEBEYA CAMPUS INS. TESFAHUN KEBEDE

CHAPTER THREE
3. THE SYSTEM DEVELOPMENT PROCESS
What is system development process?

Systems development process is the process of defining, designing, testing and implementing a
new software application or program. 

It can include the internal development of customized systems, the creation of database systems
or the acquisition of third party developed software.

3.1 System development and documentation tools: techniques DFD and flow chart

Let’s see the seven phases of a system development life cycle:

1. Planning
2. Analysis
3. Design
4. Development
5. Testing and Integration
6. Implementation and release
7. Maintenance

Documentation explains how a system works, including who, what, when, where, why, and how
of data entry, data processing, data storage, information output, and system controls.

The three common systems documentation tools:

1. Data flow diagrams(DFD)

It is a graphical description of data sources, data flows, transformation processes, data storage,
and data destinations.

 The four basic elements data flow diagram(DFD) are:

A. Data sources and destinations

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 Data source - The entity that produces or sends the data that is entered into a system.
 Data destination - The entity that receives data produced by a system.
B. Data flows
 Data flow - The movement of data among processes, stores, sources, and destinations.
C. Transformation processes
 Process - The action that transforms data into other data or information.
D. Data stores
 Data store - The place or medium where system data is stored.

Data Flow Diagram Symbols

Symbol Explanation

Data sources and destinations

Data destinations

Transformation processes

Internal Control

Data stores

2. Flowcharts

Flow chart refers to a graphical description of a system.

There are 3 types of flow charts:

a. Document flowchart

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It shows the flow of documents and information between departments or areas of responsibility.

b. System flowchart

It shows the relationship among the input, processing, and output in an information system.

c. Program flowchart

It shows the sequence of logical operations a computer performs as it executes a program.

Flowcharting symbols are divided into four categories:

1. Input/output symbols show input to or output from a system.

2. Processing symbols show data processing, either electronically or by hand.

3. Storage symbols show where data is stored.

4. Flow and miscellaneous symbols indicate the flow of data, where flowcharts begin or end,
where decisions are made, and how to add explanatory notes to flowcharts..

3. Business process diagrams

It refers to a graphical description of the business processes used by a company. The first step
in preparing a business process diagram is to identify and understand the business processes to
be diagramed.

 The importance of documentation tool is:-

I. To determine how a system works.
II. To identify internal control strengths and weaknesses and recommend improvements as
well as to determine if a proposed system meets the company’s needs.
III. To prepare documentation that shows how an existing or proposed system operates.

3.2 System development process (Methodology, system investigation,

planning, Analysis, Design and implementation
A. System development Methodology

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A system development methodology refers to the framework that is used to structure, plan and
control the process of developing an information system.

Types of System Development Methodologies

1 . Waterfall Methodology

The Waterfall methodology—also known as the Waterfall model and it is defined as a
sequential development process that flows like a waterfall through all phases of a project
(analysis, design, development, and testing), with each phase completely wrapping up before the
next phase begins.

The waterfall is believed to have been the first process model and classical model in software
engineering, originating from mechanical engineering. It’s a sequential design process meaning
that the earlier phases define subsequent phases.

Advantages:

1. Easy to use, simple and understandable.

2. Easy to manage as each phase has specific outputs and review process.

3. Clearly-defined stages.

4. Works well for smaller projects where requirements are very clear.

5. Process and output of each phase are clearly mentioned in the document.
Disadvantages:

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1. Inflexible, slow, costly and cumbersome due to significant structure and tight controls.
2. Risk and uncertainty are high.
3. Not advisable for complex and object-oriented projects.
4. Changing requirements can’t be accommodated in any phase.
5. As testing is done at a later phase. So, there is a chance that challenges and risks at earlier
phases are not identified.

 A good example for waterfall methodology is development of department of

defense, military and aircraft programs.

2. Prototyping Methodology

The Prototype Methodology is the software development process that allows developers to

create only the prototype of the solution to demonstrate its functionality to the clients. 

Prototyping Model is a software development model in which prototype is built, tested, and
reworked until an acceptable prototype is achieved. It also creates base to produce the final
system or software.

Four types of Prototyping models are:

1. Rapid Throwaway prototypes: is based on the preliminary requirement. It is quickly

developed to show how the requirement will look visually. The customer's feedback
helps drives changes to the requirement, and the prototype is again created until the
requirement is base lined.
2. Evolutionary prototype: is the prototype developed that incrementally refined based on
customer's feedback until it is finally accepted. It helps you to save time as well as effort.
3. Incremental prototype: refers to the final product is decimated into different small
prototypes and developed individually. Eventually, the different prototypes are merged
into a single product. 
4. Extreme prototype: is mostly used for web development. It is consists of three
sequential phases.

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A. Basic prototype with the entire existing page is present in the HTML
(Hypertext Markup Language) format.
B. You can simulate data process using a prototype services layer.
C. The services are implemented and integrated into the final prototype.

 prototype model phases 6th

1st 2nd 3rd 4th 5th

Impleme
ntation
Requirements Quick Build User Evaluation Refining &
Design prototype Prototype Maintain
ance

3. Incremental Methodology

It is a method that develops a system in a manner where various portions of the system are
developed at different times or speed of development and are coupled based on the time of
completion. In iterative development (step by step growth), the development teams revisit parts
of the system to improve their functionality.

 The incremental development is divided into four phases namely the:

A. Inception Phase
B. Elaboration Phase
C. Construction Phase
D. Transition Phase. 

EXAMPLE – Electronic commerce payment machines like credit card

4 . Spiral Methodology

The spiral model is a systems development lifecycle (SDLC) method used for risk
management that combines the iterative development process model with elements of the
Waterfall model. The spiral model is used by software engineers and is favored for large,
expensive and complicated projects.

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The most important feature of the model is its ability to manage unknown risks after the project
has commenced; creating a prototype makes this feasible.

Every phase can be broken into four quadrants: identifying and understanding requirements,
performing risk analysis, building the prototype and evaluation of the software's performance.

 The advantages of the Spiral SDLC Model are as follows −

 Changing requirements can be accommodated.

 Allows extensive use of prototypes.
 Requirements can be captured more accurately.
 Users see the system early.
 Development can be divided into smaller parts and the risky parts can be developed
earlier which helps in better risk management.

 The disadvantages of the Spiral SDLC Model are as follows −

 Management is more complex.

 End of the project may not be known early.
 Not suitable for small or low risk projects and could be expensive for small projects.
 Process is complex
 Spiral may go on indefinitely.

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 Large number of intermediate stages requires excessive documentation.

5 . Rapid Application Development (RAD) Methodology

 Key objective is for fast development and delivery of a high quality system at a
relatively low investment cost.
 Attempts to reduce inherent project risk by breaking a project into smaller segments and
providing more ease-of-change during the development process.
 Aims to produce high quality systems quickly, primarily through the use of iterative
Prototyping (at any stage of development), active user involvement, and computerized
development tools. These tools may include Graphical User Interface (GUI) builders,
Computer Aided Software Engineering (CASE) tools, Database Management Systems
(DBMS), fourth-generation programming languages, code generators, and object-
oriented techniques.

Aims to produce high quality systems quickly, primarily through the use of iterative
Prototyping (at any stage of development), active user involvement, and computerized
development tools.
These tools may include Graphical User Interface (GUI) builders, Computer Aided
Software Engineering (CASE) tools, Database Management Systems (DBMS), fourth-
generation programming languages, code generators, and object-oriented techniques.
B. System investigation

When we discuss about the system investigation, initially the IT system proposal is investigated.
During this step, consider all current priorities that would be affected and how they should be
handled.

 Before any system planning is done, a feasibility study should be conducted to determine

if creating a new or improved system is a viable solution. This will help to determine the
costs, benefits, resource requirements, and specific user needs required for completion.
The development process can only continue once management approves of the
recommendations from the feasibility study.

The following represent different components of the feasibility study:

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 Operational feasibility
 Financial feasibility
 Technical feasibility
 Human factors feasibility
 Legal/Political feasibility
C. System planning

planning is required as without planning the outcome will be below expectations. Planning sets
the objectives of the system in clear and unambiguous terms so that the developer may conform
to a well laid set of deliverables rather than a high-sounding statement that may mean little to
him.

Planning also enables the development process to be structured so that logical methodology is
used rather than working in fits and starts. It ensures user participation and helps in greater
acceptability and a better outcome from the development process. It leads to a system that is
well balanced in both the managerial and technical aspects.

D. System development Analysis

Systems analysis refers to a define project goals into defined functions and operations of the intended
application. This involves the process of:

 Gathering and interpreting facts,

 Diagnosing problems, and
 Recommending improvements to the system.

Project goals will be further aided by analysis of end-user information needs and the removal of any
inconsistencies and incompleteness in these requirements.
A series of steps followed by the developer include:

1. Collection of facts:

Obtain end user requirements through documentation, client interviews, observation, and questionnaires.

2. Scrutiny of the existing system:

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Identify pros and cons of the current system in-place, so as to carry forward the pros and avoid the cons in the
new system.

3. Analysis of the proposed system:

Find solutions to the shortcomings described in step two and prepare the specifications using any specific user
proposals.
E. System Design

Systems design implies a systematic approach to the design of a system.

System design is the process of defining the elements of a system such as the architecture,
modules and components, the different interfaces of those components and the data that goes
through that system. It is meant to satisfy specific needs and requirements of a business or
organization through the engineering of a coherent and well-running system.

At this step, desired features and operations are described in detail, including:

 screen layouts, 
 business rules, 
 process diagrams, 
 pseudo code, and
 other documentation.
F. System Implementation

The purpose of System Implementation can be summarized as follows:

 making the new system available to a prepared set of users (the deployment).
 positioning on-going support and maintenance of the system within the Performing
Organization (the transition).
System Implementation

The seven major activities that expected in system implementation are:-

1. Coding
2. Testing
3. Installation

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4. Documentation
5. Training
6. Support

The Process of Coding, Testing and Installation

Coding: Physical design specifications are turned into working computer code
Testing : Tests are performed using various strategies and it can be performed in parallel
with coding
Installation: Process during which the current system is replaced by the new system

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