HAPTER 18 Introduction to Systems Development and Systems Analysis ©2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart [RIOR UIINTRODUCTION Questions to be addressed in this chapter include: — What are the phases in the systems development life cycle? — Who are the individuals involved i in systems” development? — What techniques are used to plan the development of a system? — How do you determine whether a particular system is feasible? — How do people respond to systems changes, and how can dysfunctional behavior be minimized?INTRODUCTION * As the environment, technology, and competition change, an information system must continually undergo changes * These changes range from minor adjustments to major overhauls. * Occasionally the old system is scrapped and replaced.INTRODUCTION * Companies change their systems for a variety of reasons: — To respond to changes in user needs or business needs — To take advantage of or respond to technology changes | — To accommodate improvements in their business process — To gaina competitive advantage and/or lower costs ~— To increase productivity = To accommodate growth — To accommodate downsizing or distribute decision making — To replace asystem that is aged and unstableINTRODUCTION Developing quality, error-free 36 software | is difficult, expensive, and time-consuming. Projects tend to deliver less than expected and consume | more time and money. ; A KPMG survey found that 35% of all major information systems projects were classified as runaways— hopelessly incomplete and over budget. = Major cause of runaways: Skimping on systems development processes. Omitting basic systems development steps becomes tempting but may lead to disaster as developers create well-structured systems that fail to meet user needs or solve business problems.INTRODUCTION * This chapter discusses five topics: — Systems development life cycle — Planning activities during the systems development life cycle — Feasibility analysis — Behavioral aspects of change — Systems analysisSYSTEMS DEVELOPMENT LIFE CYCLE [* Whether systems changes are major or minor, most companies go through a systems development life cycle. * In this section, we discuss the steps in the cycle and the people involved.SYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: — Systems analysis — Conceptual Design — Physical Design — Implementation and Conversion — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: — Conceptual Design — Physical Design — Implementation and Conversion — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. * Systems analysis is the first step. It includes: — Initial investigation = Involves gathering the information needed to buy or develop a new system and determining whether it is a priority.SYSTEMS DEVELOPMENT LIFE CYCLE * As organizations grow and change, they may need more or better information. * Systems analysis is the first step. It includes: — Initial investigation — Systems surve * If the system is a priority, survey the existing system to define the nature and scope of the project and identify the strengths and weaknesses of the system.SYSTEMS DEVELOPMENT LIFE CYCLE * As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: — Initial investigation — Systems survey — Feasibility study " Involves an in-depth study of the proposed system to determine whether it’s feasible. °SYSTEMS DEVELOPMENT LIFE CYCLE * As organizations grow and change, they may need more or better information. * Systems analysis is the first step. It includes: — Initial investigation — Systems survey — Feasibility study — Determination of information needs and system requirements = Involves finding out and documenting what users and management need. « This is the most important aspect of systems analysis.SYSTEMS DEVELOPMENT LIFE CYCLE * As organizations grow and change, they may need more or better information. * Systems analysis is the first step. It includes: — Initial investigation — Systems SUIVe~ Involves preparation of a report — Feasibility stud summarizing the systems analysis work. — Determination|" This report is submitted to the information requirements systems steering committee. — Delivery of systems requirementsSYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: analysis — Physical Design — Implementation and Conversion — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE * In the conceptual design phase, the company decides how to meet user needs. * Tasks in this phase include: — Identify and evaluate design alternatives * Possibilities include: = Buying software = Developing in-house = OutsourcingSYSTEMS DEVELOPMENT LIFE CYCLE | * In the conceptual design phase, the company decides how to meet user needs. * Tasks in this phase include: — Identify and evaluate design alternatives — Develop design specifications = Involves writing up details of what the system is to accomplish and how it is to be controlled and developed.SYSTEMS DEVELOPMENT LIFE CYCLE In the conceptual design phase, the company decides how to meet user needs. * Tasks in this phase include: — Identify and evaluate design alternatives — Develop design specifications — Deliver conceptual design requirements = These requirements will be forwarded to the information systems steering committee.SYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: — Systems analysis — Conceptual Design — Physical Design — Implementation and Conversion — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE * In the physical design ‘phase, the broad, user- oriented requirements of the conceptual design are translated into detailed specifications that can be used by programmers to code the c ims. * Tasks include: — Design outputs, database, and inputs — Develop programs — Develop procedures - a Design controls — Deliver developed system + Goes to information systems steering committeeSYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: — Systems analysis — Conceptual Design — Physical Design — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE * This is the capstone phase during which everything comes together. * Tasks include: — Develop an implementation and conversion plan + Needed because of the complexity and importance of this phase Install any new hardware and software Train personnel * New employees may need to be hired and trained or existing employees relocated. Test the system and make any needed modifications. Complete the documentation. Convert from the old to the new system. Deliver operational system. + Send the final report to the IS steering committee.| SYSTEMS DEVELOPMENT LIFE CYCLE * The five stages in the systems development life cycle are: — Systems analysis — Conceptual Design — Physical Design — Implementation and Conversion — Operation and MaintenanceSYSTEMS DEVELOPMENT LIFE CYCLE * Once the system is up and running, operations and monitoring continue. * Tasks include: — Fine-tune and do post-implementation review. — Operate the system. — Periodically review and modify the system. — Do ongoing maintenance. — Deliver improved system.SYSTEMS DEVELOPMENT LIFE CYCLE tis necessary, and the systems ife cycle (SDLC) will start over. In addition oO the preceding five phases, three activities are performed throughout the life cycle: = Planning ; - Managing behavioral reactions to change — Assessing ongoing feasibility These three activities will be discussed i in this i ally the first phase in the SDLC, systems — an lysis, will be dibalseed in more detail.THE PLAYERS ¢ Many people are involved in developing and successfully implementing an AIS, including: * Top management ¢ Accountants © The information systems steering committee ° The project development team ¢ Systems analysts ¢ Computer programmers ¢ External playersTHE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: ¢ Accountants e The information systems steering committee e The project development team ® Systems analysts ¢ Computer programmers e External playersTHE PLAYERS * Top management's role in systems development. is to: — Provide support and encouragement and a clear signal that user involvement is important. — Help align the systems with corporate strategies. — Establish system goals and objectives. — Review |S department performance and leadership. — Establish policies for project selection and _ organizational structure. — Participate in important systems decisions.THE PLAYERS * User management needs to: — Determine information requirements for departmental projects, — Assist systems analysts with project cost-benefit estimates. — Assign key staff members to development projects. — Allocate funds.THE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: * Top management e ses pareaets systems steering committee e The project development team ® Systems analysts ° Computer programmers e External playersTHE PLAYERS + Accountants also play an an important role in systems develop — ASAIS users, they must. determine: their information needs and systems requirements and communicate them to. system developers. — As members of project development teams or steering committees, they help management in the development process. — They are also active in: * Designing system controls and monitoring and testing these. controls. * Ensuring | the system is easy to audit. — Controls and “auditabi need to be built in early to’ minimize costs and inefficiencies later.THE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: ® Top management ¢ Accountants ¢ The information systems steering committee e The project development team © Systems analysts ° Computer programmers e External playersTHE PLAYERS * The information systems steering committee is an executive-level committee whose duty is to plan and oversee the IS function. — Consists of high level management, such as: * Controller * IS Manager + User department managers — Sets policies to govern the AIS and assure top- management participation, guidance, and control. — Attempts to encourage goal congruence and reduce goal conflict.THE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: * Top management ¢ Accountants e The information systems steering committee © Systems analysts ¢ Computer programmers e External playersTHE PLAYERS The roject d development team includes systems specialists, managers, accountants, auditors, and users whose responsibility is to guide development Their job: = Plan each project. — Monitor to ensure timely and cost-effective completion. — Ensure the human element is considered. = Communicate project status to top management and steering committee. municate and meet with users to: onsider ideas _* Discuss progress * Eliminate surprises — The team approach produces more effective results and better user acceptance.THE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: * Top management ¢ Accountants e The information systems steering committee e The project development team © Computer programmers e External playersTHE PLAYERS . Systems. analysts study existing systems, design new ones, and prepare specifications that are used by programmers. — They interact with technical personnel and users to bridge the gap. i They are responsible for ensuring, the system meets user needs.THE PLAYERS e Many people are involved in developing and successfully implement an AIS, including: * Top management ¢ Accountants e The information systems steering committee e The project development team e Systems analysts e External playersTHE PLAYERS | - Computer programmers write the computer programs, using the specs developed by the systems analysts. * They also modify and maintaining existing programs.THE PLAYERS ¢ Many people are involved in developing and successfully implement an AIS, including: * Top management ¢ Accountants e The information systems steering committee e The project development team © Systems analysts e Computer programmers ¢ External playersTHE PLAYERS [> External players include: — Customers — Vendors — Auditors. — Governmental entities Their needs must also be met in systems development.PLANNING SYSTEMS DEVELOPMENT Several activities must be performed at various times throughout the One of these activities is planning, The organization should have plans for: — The long range — Each systems development project — Each phase of each systems development project We'll discuss these plans and a number of techniques to develop them.PLANNING SYSTEMS DEVELOPMENT Suppose you bought a personal computer on impulse without thinking about what you wanted fo do with it. — When! you got it home, you: fealized it wasn’t compatible Furthermore, it wasn’t e uipped for broadband internet } en hoping to switch to. ‘broadband. the money and buy the parts to puter to do what you a it to do, eer find |PLANNING SYSTEMS DEVELOPMENT . Systems development ple planning is an important step for the following key reasons: — Consistency with the organization's strategic plan. — Efficiency achieved through coordination of the _ subsystems. = Cutting edge technology and techniques. — Lower costs due to lack of duplication, wasted effort, time overruns, and cost overruns. _— Adaptability for future changes.PLANNING SYSTEMS DEVELOPMENT e¢ When a ‘system | is poorly planned, a company must often return to a prior phase and correct errors and design flaws. ¢ These returns are costly and result in delays, frustration, and low morale.PLANNING SYSTEMS DEVELOPMENT * Two types of systems development plans are needed: - Individual project plans developed by the project teams. - Amaster plan developed by the |S steering committee.PLANNING SYSTEMS DEVELOPMENT ® Two types of systems development plans are needed: - Individual project plans developed by the project teams. - Amaster plan developed by the IS steering committee.PLANNING SYSTEMS DEVELOPMENT * Individual project plans contain: — A cost-benefit analysis. — Developmental and operational requirements, including: * Human resources * Hardware + Software * Financial resources — A schedule of activities to develop and operate the new applicationPLANNING SYSTEMS DEVELOPMENT ® Two types of systems development plans are needed: - Individual project plans developed by the project teams. - Amaster plan developed by the IS steering committee.PLANNING SYSTEMS DEVELOPMENT + Amaster plan specifies: — What the system will consist of — How it will be developed — Who will develop it _— How needed resources will be acquired — Where the AIS is headed It also provides: = Status of projects in process — Prioritization of planned projects and criteria for establishing priorities — Timetables for developmentPLANNING SYSTEMS DEVELOPMENT Projects with highest priority are first to be c d. — These decisions are made by top management. Planning horizon: — About a 3-year horizon — With updates at least 2-3 times/year—even more frequently in some companies. The ClO should determine: — How soon technologies will be in wide use -— Whether the company should adopt late or early — What business opportunities might arise from new technologiesPLANNING SYSTEMS DEVELOPMENT |: Planning Techniques —Two techniques for scheduling and monitoring systems development activities are: * Program Evaluation and Review Technique (PERT) * Gantt ChartsPLANNING SYSTEMS DEVELOPMENT ¢ Planning Techniques —Two techniques for scheduling and monitor systems development activities are: * Program Evaluation and Review Technique (PERT * Gantt ChartsPLANNING SYSTEMS DEVELOPMENT * A PERT diagram requires that all activities in a project be identified along with the activities that precede and follow them. These activities are used to draw a PERT diagram, which consists of a network of: — Arrows—representing activities that require time and resources. — Nodes—representing completion and initiation of activities. ;PLANNING SYSTEMS DEVELOPMENT * The critical path in a PERT diagram is the path requiring the greatest amount of time. * If an activity on the critical path is delayed, the whole project is delayed. * Resources may be shifted to the critical path to reduce the delay.i SAMPLE PERT CHART — For building and selling a birdhouse. — Each block contains a task and a time estimate (may include best time, worst time, and average time) — May indicate who will be responsible for the task.PLANNING SYSTEMS DEVELOPMENT * Planning Techniques —Two techniques for scheduling and monitor systems development activities are: * Program Evaluation and Review Technique (PERT)PLANNING SYSTEMS DEVELOPMENT A Gantt chart is a bar chart with project activities on the left and time across the top. For each activity, a bar of expected time is drawn. As activities are completed, the bar is filled in. The Gantt chart makes it easy to eyeball the chart and understand the current status of a project. But the chart does not show the relationship between activities like the PERT chart does.SAMPLE GANTT CHART Complete Testing In Development “Uy Milestone Period ime e3e| nes |eom Sea] Orsay 8%) 10) Design birdhouse uy wood & nails = paint atFEASIBILITY ANALYSIS * During the systems analysis phase, a feasibility study (aka, a business case) is prepared and is updated during the remaining steps in the SDLC. The extent of the feasibility study depends on the size and nature of the system. Feasibility team should include: — Management — Accountants skilled in controls and auditing — Systems personnel — UsersFEASIBILITY ANALYSIS * The feasibility study and its updates are used by the steering committee as the project proceeds to decide whether to: = Terminate the project — Proceed — Proceed if specific problems are resolvedFEASIBILITY ANALYSIS * Five aspects need to be considered during a feasibility study: — Technical feasibility + Is the technology there to do it? — Operational feasibility * Do we have people who can do it, and will it get used? — Legal feasibility * Does it comply with legal, regulatory, and contractual obligations? — Scheduling feasibility * Can it be done in ? — Economic feasibility + Will the benefits exceed the costs?FEASIBILITY ANALYSIS Calculating Economic Feasibility Costs and Benefits — Economic feasibility is probably the most important and frequently analyzed aspect. — This examination requires a careful investigation of costs and benefits. — It typically uses a capital budgeting model that considers: * Cost savings and other benefits * Initial outlay costs * Operating costs * Other costsFEASIBILITY ANALYSIS * When possible, benefits and costs should be estimated and included even if they are not easily quantifiable. - If some costs and benefits cannot be accurately estimated, they should at least be listed, along with the likelihood of their occurrence and their expected impact.FEASIBILITY ANALYSIS * Benefits might include: — Cost savings. — Improved customer service, productivity, decision making, or data processing. — Better management control. — Increased job satisfaction and employee morale.FEASIBILITY ANALYSIS Costs might include: — Equipment costs * Initial outlay plus ongoing operating costs Software costs * Costs of acquiring, maintaining, supporting, and operating Human resource costs * Salaries, as well as costs of hiring, training, and relocating staff Site preparation costs Installation and conversion costs - Supplies Overhead Financial charges * The primary operating cost is maintaining the system. + Makes up 65-75% of the organization's system effortsFEASIBILITY ANALYSIS * Capital Budgeting — Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. — There are three commonly used techniques ¢ Payback period * Calculates the number of years before the new savings from the project equal the initial cost of the investment. * Select projects with shorter payback periods.FEASIBILITY ANALYSIS * Capital Budgeting — Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. — There are three commonly used techniques ° Payback period + Net present value (NPV) * Calculates and sums the discounted future cash flows of the costs and benefits.FEASIBILITY ANALYSIS * Capital Budgeting — Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. =i Calculates the effective interest rate that would result in *| anet present value of zero for the project. «|° Select projects with higher IRRs. * Internal rate of return (IRR)BEHAVIORAL ASPECTS OF CHANGE * The best system will fail without the support of the people it serves. * So the behavioral aspects of change are crucial. * You need to be aware of and sensitive to the types of behavioral problems that can result from change.BEHAVIORAL ASPECTS OF CHANGE * Why Behavioral Problems Occur — Employees will tend to view change as good if they believe it will affect them positively and vice versa.* To minimize adverse behavioral reactions, it helps to understand why resistance ©2006 Prentice Hall Business Publishing Accounting Information Systems, 1/e Romney/Steinbart ESERCTIBEHAVIORAL ASPECTS OF CHANGE * To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced + The rationale used to sell the system may need to vary with the job responsibilities of the employees involved.BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced — Experience with prior changes + Fool me once, shame on me... * Let's see if leven give youa second chance.BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced — Experience with prior changes — Top management supportBEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced — Experience with prior changes — Top management support — CommunicationBEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced — Experience with prir- Employees may be too — Top management g tt — Communication duties, i.e., “sacred cows. — Biases and natural resistance to changeBEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: — Personal characteristics and background — Manner in which change is introduced — Experience with prior changes — Top management support — Biases and a wa | — Disruptive nature of the change process©2006 Prentice Hall Business Publishing Accounting Information Systems, ile Romney/Steinbart EOCIRCTINBEHAVIORAL ASPECTS OF CHANGE * How People Resist AIS Changes —Resistance to change often takes one of three forms: * Aggression * Behavior intended to destroy, cripple, or weaken the system's effectiveness. + Examples: Increased error rates, disruptions, or deliberate sabotage.BEHAVIORAL ASPECTS OF CHANGE * How People Resist AIS Changes —Resistance to change often takes one of three forms: * Aggression * Projection + Blaming the new system for any and every unpleasant occurrence, i.e., the system becomes a scapegoat. * To preserve the integrity of the system, these criticisms must be controlled or answered.BEHAVIORAL ASPECTS OF CHANGE * How People Resist AIS Changes —Resistance to change often takes one of three forms: * Aggression * Projection * Avoidance * “If | don’t use this thing, maybe it will go away!”FEASIBILITY ANALYSIS * Reactions to change can be improved by observing the following guidelines: — Meet user's needs with respect to the form, content, and volume of system output. — Keep communication lines apen. Managers and users should be fully informed about: * What changes are being made * Why : ; * How it will benefit them * Who to contact with questionsFEASIBILITY ANALYSIS — Maintain a safe and open atmosphere. + If employees become hostile, it's an uphill battle you probably won't win. — Obtain management support. — Allay fears. * To the extent possible, reassure employees that no major job losses or responsibility shifts will occur. * If employees are terminated, severance pay and outplacement services should be provided.FEASIBILITY ANALYSIS — Solicit user participation. * It is ego enhancing, challenging, and intrinsically satisfying. * Users who participate will be more committed to using the system. — Provide honest feedback. -* Explain which suggestions are and are not being used and why. — Make sure users understand the system. * Don’t underestimate training needs.FEASIBILITY ANALYSIS — Humanize the system. * Employees shouldn't feel the computer is controlling them or has usurped their positions. — Describe new challenges and opportunities. * The system can provide greater job satisfaction and increased opportunities. — Reexamine performance evaluation. + Are performance standards and criteria realistic in light of the change? — Test the system’s integrity. * It’ important to minimize bad impressionsFEASIBILITY ANALYSIS — Avoid emotionalism. * Emotional issues should be allowed to cool, handled in a non-confrontational manner, or sidestepped. — Present the system in the proper context. + Address the concerns of the people to whom you're speaking, not the concerns of management or developers. — Control the user's expectations * Don’t oversell, and be realistic. — Keep the system simple * Avoid complex systems that cause radical changes.FEASIBILITY ANALYSIS e Ignoring the preceding steps can leave to behavior issues that are difficult or impossible to reverse.SYSTEMS ANALYSIS * When a new or improved system is needed, a written request for systems development is prepared. That request describes: — The current system’s problems —The reasons for the proposed changes — The goals and objectives of a proposed system ; — The anticipated benefits and costsSYSTEMS ANALYSIS The project development team will conduct the systems analysis in five steps: — Initial investigation — Systems survey — Feasibility study — Information needs and systems requirements — Systems analysis reportSYSTEMS ANALYSIS * The project development team will conduct the systems analysis in five steps — Systems survey — Feasibility study — Information needs and systems requirements — Systems analysis reportSYSTEMS ANALYSIS * The initial investigation is conducted to: — Gain a clear picture of the problem or need. * Sometimes what is thought to be the cause of the problem is not the real source.SYSTEMS ANALYSIS * The initial investigation is conducted to: — Gain a clear picture of the problem or need. — Determine the viability of the project and expected costs and payoffs.A ALA A new AIS is useful when problems are a result of: — Lack of information — Inaccessibility of data = Inefficient data processing A new AIS will not answer problems such as: — Amanager who has too many subordinates —- Amanager who lacks organizational skills — Failure to enforce existing problems — Evaluate the scope and nature of the new AIS. © 2006 Prentice Hall Business Publishing | Accounting Information Systems, 10/e Romney/Steinbart [BETTS RELINSYSTEMS ANALYSIS * The initial investigation is conducted to: — Gain a clear picture of the peshiarn or need. — Determine the viabili expected costs q° Either: = Initiate the project as proposed. —Evaluate the scq = _ moaify it. Als. — Abandon it. — Recommend whether to proceed.SYSTEMS ANALYSIS If the project is approved: — A proposal to conduct systems analysis is prepared. —The project i is assigned a priority and added to the master plan. — The development team begins a survey of the existing AIS. — The proposal will be modified as more information becomes available.SYSTEMS ANALYSIS * The project development team will conduct the systems analysis in five steps — Initial investigation — Feasibility study — Information needs and systems requirements — Systems analysis reportSYSTEMS ANALYSIS * Data and information flow “AIS strengths ¢ and weaknesses + Available | hardware, software, and personnel - Make preliminary sssments of current and future: ig needSYSTEMS ANALYSIS * Data can be gathered from: — Employees. — Documentation such as organization charts _and procedure manuals. — External sources such as: * Consultants * Customers * Suppliers * Industry associations . Government agenciesSYSTEMS ANALYSIS * Four common methods of gathering data are: — Interviews — Questionnaires — Observation — System DocumentationSYSTEMS ANALYSIS * Four common methods of gathering data are: — Questionnaires — Observation — System DocumentationSYSTEMS ANALYSIS * Advantages of interviews: — Can answer “why” questions: -— Can allow for follow-up and clarification — Provides opportunity to build positive relationships with interviewees and support for new system * Disadvantages of interviews: — Time-consuming — Expensive — Personal biases or self-interest may produce inaccurate informationSYSTEMS ANALYSIS + When you do interviews: — Make an appointment. — Explain the purpose ahead of time. — Indicate the amount of time needed, — Be on time. : — Be familiar with the interviewee’s responsibilities. — Make notes on points to cover. -— Put the interviewee at ease and let him/her do the talking. — Pay attention to nonverbal cues. — Take notes and augment them with impressions after the interview. — Request permission to tape critical interviews.SYSTEMS ANALYSIS * Four common methods of gathering data are: — Interviews — Questionnaires — Observation — System DocumentationSYSTEMS ANALYSIS * Questionnaires can be used when: — The amount of information to be gathered is small and well defined. — The information is to be obtained from many people or from those who are remotely located. — The information is intended to verify data from other sources.SYSTEMS ANALYSIS + Advantages of questionnaires: — Can be anonymous. — Not time-consuming to complete. — Inexpensive. -— Allows the subject time to think about responses. * Disadvantages of questionnaires: — Does not allow in-depth questions or answers. = Does not allow follow-up or clarification. — Does not build relationships. — Difficult to develop. — May be ignored or completed superficially.SYSTEMS ANALYSIS * Four common methods of gathering data are: — Interviews — Questionnaires — System DocumentationSYSTEMS ANALYSIS * Advantages of observations: — Can verify how the system actually works rather than how it should work. — Results in greater understanding of systems. * Disadvantages of observations: = Time-consuming. — Expensive. — Difficult to interpret. — People may alter behavior while being observed.SYSTEMS ANALYSIS * When you do observations: — Identify what is to be observed and estimate the time required. — Obtain permission. — Explain what will be done and why. — Don't make value judgments. — Take notes and document impressions ASAP.SYSTEMS ANALYSIS * Four common methods of gathering data are: — Interviews — Questionnaires — Observation — System DocumentationSYSTEMS ANALYSIS + Advantages of systems documentation: ribes how the system should work. - Written form facilitates review and analysis. * Disadvantages of systems documentation: — Time consuming. _ —Maybe elusive. * When you examine systems documentation: — Keep in mind that the system doesn’t always work as it should per the documentation. — If documentation is unavailable, it may be worthwhile to develop it.SYSTEMS ANALYSIS * Once the data is gathered, document findings and model the existing system. — Documentation consists of: * Questionnaire copies ¢ Interview notes * MemosSYSTEMS ANALYSIS * Another form of documentation is a system model: — Physical models i|lustrate how a system functions by describing: * Flow of documents. * Computer processes performed and the people doing them. * Equipment used. * Any other physical elements. — Logical models illustrate what is being done regardless of how the flow is accomplished.SYSTEMS ANALYSIS * When documentation is complete, analyze the existing system: — Evaluate the AlS’s strengths and weaknesses to develop ideas for designing and structuring the new AIS. ° Try to retain strengths. * Correct weaknesses. — Sometimes, you need revolutionary, rather than evolutionary change. * Called re-engineering.SYSTEMS ANALYSIS * At the end of this phase, prepare systems survey report: — Outlines and documents the data gathered. — Provides recommendations that result from the systems survey.SYSTEMS ANALYSIS * The project development team will conduct the systems analysis in five steps — Initial investigation — Systems surve — Information needs and systems requirements — Systems analysis reportSYSTEMS ANALYSIS * After the systems survey, a more thorough feasibility analysis is conducted. * This analysis is updated regularly as the project proceeds and costs and benefits become clearer.SYSTEMS ANALYSIS * The project development team will conduct the systems analysis in five steps — Initial investigation — Systems surveySYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes * Describes what is to be done and by whom.SYSTEMS ANALYSIS | = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes = Uateclenant + Describes name, size, format, source, and significance of necessary data elements.SYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes - Data elements - Data structure |* A preliminary structure showing how the data elements will be organized into logical records.SYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes - Data elements - Data structure - Outputs Layouts of system outputs and adescription o purpose, frequency, and ution.SYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes - Data elements - Data structure ~ Outputs ~ Inputs |* A copy of system inputs anda description of their contents, source, and who is responsible for them.SYSTEMS ANALYSIS Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes - Data elements - Data structure ~ Outputs ~ Inputs : Adescription of deadlines, = Constraints schedules, security requirements, staffing limitations, and legal requirements.SYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AlS users and documents systems processes, including: - Processes - Data elements - Data structure - Outputs = Inputs - Constraints - ControlsSYSTEMS ANALYSIS = Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: - Processes - Data elements - Data structure - Outputs = Inputs - Documentation constraints ~ Controls * Changes in staffing, job ~ Reorganizations tc., that would be necessary.SYSTEMS ANALYSIS Issues: — There is much to be specified, even fora simple AIS. — It may be difficult to get employees to accurately articulate their needs. — Errors are best caught early, as the cost to correct them increases significantly the farther you are into the project.SYSTEMS ANALYSIS * Systems Objectives and Constraints — Many entities take a systems approach to determining information needs and systems requirements. — Problems and alternatives are viewed from the standpoint of the entire organization—as opposed to a single department.SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness : Al fo help users make decisions.SYSTEMS ANALYSIS . Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Economy + Benefits exceed costs.SYSTEMS ANALYSIS * Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Economy - Reliabili * Data is processed accurately and reliably.SYSTEMS ANALYSIS * Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Economy - Reliability - Availability You can access it when you need it.SYSTEMS ANALYSIS * Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Economy - Reliability - Availability - Timeliness * More critical information is provided first.SYSTEMS ANALYSIS . Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Economy ~ Reliability - Availability - Timeliness - Customer service * Efficient and courteous.SYSTEMS ANALYSIS . Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Capaci - Reliability - Availability - Timeliness - Customer serviceSYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Capacity - Economy - Ease of use - Reliability - Availability - Timeliness - Customer serviceSYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Capacity - Economy - Ease of use - Reliability ~ Flexibili - Availability - Timeliness - Customer serviceSYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Capacity - Economy - Ease of use - Reliability - Flexibility - Availability Tractabili - Timeliness + Easily understood. * Facilitates problem solving and ~ Customer service future development.SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness - Capacity - Economy - Ease of use ~ Reliability - Flexibility - Availability - Tractability - Timeliness - Auditability - Customer serviceSYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: - Usefulness Capacity - Economy Ease of use - Reliability Flexibility - Availability Tractability - Timeliness Auditability - Customer service Security]- Available only to authorized users.SYSTEMS ANALYSIS * There are often trade-offs between objectives. * Organizational constraints make it impossible to develop all parts of an AIS simultaneously. — You divide it into modules that are analyzed, developed, and installed independently. — When changes are made, only the affected modules need to be changed. — The modules should be properly integrated into a workable system.SYSTEMS ANALYSIS * Success often depends on the project team’s ability to cope with organizational constraints, including: — Requirements of governmental agencies. — Managerial policies and guidelines. — Lack of sufficient, qualified staff. — Capabilities and attitudes of users. — Available technology. — Limited financial resources.SYSTEMS ANALYSIS * Strategies for Determining Requirements: — One or more of the following four strategies are used to determine AIS requirements: * Ask users what they need * This is the simplest and fastest strategy. * But many people don't realize or understand their true needs. It's sometimes better to ask them what decisions they make and what processes they are involved in. Users also need to think beyond their current information needsSYSTEMS ANALYSIS * Strategies for Determining Requirements: — One or more of the following four strategies are used to determine AIS requirements: * Ask users what they need * Analyze existing systems = Internal and external systems should be analyzed to avoid reinventing the wheel.SYSTEMS ANALYSIS * Strategies for Determining Certain modules: — May not be used as intended — May be augmented by manual tasks — May be avoided altogether Helps determine whether the system really needs to be simply modified rather than replaced. ° Examine existing system use ©2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart [RT EOREISYSTEMS ANALYSIS * Strategies for Determining Requirements: — One_or more of the following four strategies Entails roughing out a system for users to critique. When they see something on a screen, it’s easier to identify what they like and don’t like. Goes through iterations of improving and reviewing with users until users agree on their needs. * Create a prototypeSYSTEMS ANALYSIS * Documentation and Approval of User Requirements: ; — Detailed requirements for the new AIS should be created and documented. * How to produce the required features is determined during the design phases. of the SDLC.. * The requirements list should be supported by sample input and output forms and charts that | make it easier to conce pt i + Anontechnical summary is often prepared for management.SYSTEMS ANALYSIS * Once user requirements have been determined and documented, the project team: — Meets with users. — Explains the requirements. — Obtains their agreement and approval. When an agreement is reached, user management should sign off on the requirements.SYSTEMS ANALYSIS * The project development team will conduct the systems analysis in five steps — Initial investigation — Systems survey — Feasibility study — Information needs and systems requirements — Systems analysis reportSYSTEMS ANALYSIS * The last step in systems ns analysis | is the systems analysis report. — Summarizes and documents the activities. — Serves as a repository of data from which designers can draw. — Outlines: * Goals and objectives of the new system. * Scope of the project. * How the new system fits into the company’s master plan. * User processing requirements and information needs. * Feasibility analysis. * Recommendations for the new system.SYSTEMS ANALYSIS * A go-no-go decision is usually made three times during systems analysis: — During the initial investigation to determine whether to go ahead with a systems survey. — At the end of the feasibility study to determine whether to proceed with the information requirements step. — At the completion of the analysis phase to" decide whether to proceed to the next phase (conceptual design).SYSTEMS ANALYSIS * When systems analysis is completed, the project can move on to: — Conceptual design phase — Physical design phase — Implementation and conversion — Operation and maintenanceSUMMARY ; techniq used to plan the development of a system. You've reviewed some techniques for termin g ae em feasibility, syster Nang behavior can be