PRELIMCH4

Accounting Information Systems
Fourteenth Edition
Chapter 20
Introduction to Systems
Development and Systems
Analysis
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2016, 2015
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Learning Objectives
• Explain the five phases of the systems development life
cycle, and discuss the people involved in systems
development and the roles they play.
• Explain the importance of systems development planning,
and describe the types of plans and planning techniques
used.
• Discuss the various types of feasibility analysis, and
calculate economic feasibility using capital budgeting
techniques.
• Explain why system changes trigger 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.
Copyright © 2017, 2016, 2015 Pearson Education, Inc. All Rights Reserved
Systems Development Life Cycle (SDLC)
Who Is Involved in the SDLC?
• Information Systems Steering • Systems Analysts
Committee – Determine information needs,
– Executive level, plans and prepare specifications for
oversees IS function; facilitates programmers
coordination with integration of • Management
systems activities
– Get users involved in the
• Project Development Team process, provide support for
– Plan and monitor project development projects, align
progress projects to meet organizations
• Programmers strategic needs
– Write and test programs • Users
according to analysts – Communicate needs to system
specifications developers, help design and
test to ensure complete and
accurate processing of data
Systems Development Planning
• Proper planning provides for achieving goals and
objectives
• For systems development, two plans needed:
– Project Development Plan
▪ Specific to a project and authored by the project team identifies people,
hardware, software, and financial resources needed
– Master Plan
▪ Long-range and authored by steering committee outlining prioritized projects
and timetables
Planning Techniques
• Program evaluation and review technique (PERT)
– Diagram that depicts all project activities that require time and
resources with completion estimates. Determines critical path.
• Gantt chart
– Bar chart that organizes activities on the left hand side and project
time scheduled with a bar drawn to show the progress to date for
that particular activity.
Business Case (Feasibility Analysis)
• Economic
– Do benefits of new system justify the costs (time and resources) to
implement?
• Technical
– Can we use existing technology?
• Legal
– Does a new system comply with regulations, laws, and contractual
obligations?
• Scheduling
– Can the system be developed in the time allotted?
• Operational
– Do we have the people to design and implement the system? Will
people use the new system?
Capital Budgeting
• Payback period
– Calculate the number of years required for the net savings to
equal the initial cost of investment
• Net Present Value (NPV)
– Estimate future cash flows with discounted rate for time value of
money
• Internal Rate of Return (IRR)
– Calculates the interest rate that makes the present value of total
costs equal to the present value of total earnings
Why Behavioral Problems Occur?
• Fear • Disruption
– Of failure, the unknown, losing – Additional requests for
status information and additional
• Lack of top-management support burdens of time is distracting
and prompts negative feelings
– If the top management is not
supportive why should the • Manner change is introduced
employee change? – Approaches are different for top
• Bad prior experiences level and lower level employees
– Bad experience with prior IS • Biases and emotions
changes • Personal characteristics and
• Poor communication background
– Employees need to understand – Age
why change is necessary – Open to technology and
comfortable with it
How to Prevent Behavioral Problems
• Management support • Performance evaluation
– Provide resources and – Reevaluate to ensure
motivation performance standards are
• Satisfy user needs consistent with the new system
• Involve users • Keep open communications
– Participation improves • Test the system prior to
communication and implementation
commitment • Keep system simple
• Reduce fears, emphasize – Avoid radical changes
opportunities • Control user’s expectations
• Avoid emotionalism – Be realistic
• Provide training
Phase 1: Systems Analysis
Key Terms (1 of 2)
• Systems development life cycle • Program evaluation and review
(SDLC) technique (PERT)
• Systems analysis • Critical path
• Conceptual design • Gantt chart
• Physical design • Feasibility study
• Implementation and conversion • Economic feasibility
• Operations and maintenance • Technical feasibility
• Information systems steering • Legal feasibility
committee • Scheduling feasibility
• Systems analyst • Operational feasibility
• Computer programmer • Capital budgeting model
• Project development plan • Payback period
• Master plan
Key Terms (2 of 2)
• Net present value (NPV)
• Internal Rate of Return (IRR)
• Behavioral aspects of change
• Aggression
• Projection
• Avoidance
• Request for systems development
• Initial investigation

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