AIS16

Accounting
Information
Systems
9th Edition
Marshall B. Romney
Paul John Steinbart
2003 Prentice Hall Business Publishing,

Accounting Information Systems, 9/e, Romney/Steinbart
16-1
Introduction to Systems
Development and
Systems Analysis
Chapter 16
2003 Prentice Hall Business Publishing,

Accounting Information Systems, 9/e, Romney/Steinbart
16-2
Learning Objectives
1.
2.
3.
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,
16-3
Learning Objectives
4.
5.
6.
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.
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16-4
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 SMs
periodic, preformatted reports.
The sales and purchasing departments
cannot get timely information about what
products are or are not selling well.

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16-5
Introduction
Ann is convinced that Shoppers Mart

needs a new information system.
She has the following questions:
1.
2.
What process must the company go

through to obtain and implement a
new system?
What types of planning are
necessary to ensure the systems
success?
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16-6
Introduction
3.
4.
5.
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 costeffective?
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16-7
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).

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16-8
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).

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16-9
Learning Objective 1
Explain the five phases of
the systems development
life cycle.

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16-10
The Systems Development

Life Cycle
What are the five steps in the

systems development life cycle
(SDLC)?
1.
2.
3.
4.
5.
Systems analysis
Conceptual design
Physical design
Implementation and conversion
Operations and maintenance
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16-11

Life Cycle: Systems
Analysis
Systems Analysis
Do initial investigation
Do system survey
Do feasibility study
Determine information needs
and system requirements
Deliver systems requirements

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Conceptual
Design
16-12

Life Cycle: Conceptual Design
Conceptual Design
Identify and evaluate
design alternatives
Develop design specifications
Deliver conceptual design
requirements

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Physical
Design
16-13

Life Cycle: Physical Design
Physical Design
Design output
Design database
Design input
Develop programs
Develop procedures
Design controls
Deliver developed system
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Implementation
and Conversion
16-14

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

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Operation
and
Maintenance
16-15

Life Cycle: Operation and
Maintenance
Operation and Maintenance
Operate system
Modify system
Do ongoing maintenance
Deliver improved system
Systems
Analysis
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Feasibility analysis
and decision points:
Economic
Feasibility
Technical Feasibility
Legal Feasibility
Scheduling
Feasibility
Operational
Feasibility
16-16
Discuss the people involved
in systems development and
the roles they play.

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16-17
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
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16-18
The Players
What are top managements roles?
providing support and encouragement

establishing system goals and
objectives
determine information requirements

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16-19
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

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16-20
The Players
What are the steering committees

roles?
set policies that govern the AIS

ensures top-management participation
guidance and control
facilitates coordination and integration
of IS activities

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16-21
The Players
What are the project development

teams roles?
plan each project

monitor project
make sure proper consideration is
given to the human element

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16-22
The Players
What are the system analysts and

programmers roles?
study existing systems

design new systems and prepare
specifications
write computer programs

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16-23
Explain the importance of
systems development
planning and describe
planning techniques.

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16-24
Planning Systems
Development
Why is planning an important step in

systems development?
consistency
efficiency
cutting edge
lower costs
adaptability
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16-25
Planning Systems
Development
What types of systems development

plans are needed?
project development plan

master plan

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16-26
Planning Techniques
Two techniques for scheduling and

monitoring systems development activities
are:
1
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 lefthand side and units of time across the top

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16-27
Planning Techniques:
Gantt Chart
Project Planning Chart
(Sample Gantt Chart)
______________________________________________
Activity
Week Starting
______________________________________________
1
______________________________________________
2
______________________________________________
3
______________________________________________
4
______________________________________________
5
______________________________________________
6
______________________________________________
7
______________________________________________
8
______________________________________________
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16-28
Discuss the various types of
feasibility analysis, and
calculate economic feasibility.

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16-29
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.
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16-30
What five important aspects need to

be considered during a feasibility
study?
1.
2.
3.
4.
5.
Technical feasibility
Operational feasibility
Legal feasibility
Scheduling feasibility
Economic feasibility
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16-31
Economic feasibility is the most
frequently analyzed of the five
aspects.
What is the basic framework for
feasibility analysis?
capital budgeting model

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16-32
What are some capital budgeting

techniques?
payback period
net present value (NPV)
internal rate of return (IRR)

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16-33
Explain why systems change
triggers behavioral reactions,
what form this resistance to
change takes, and how to
avoid or minimize the
resulting problem.
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16-34
Behavioral Aspects of
Change
Individuals involved in systems
development are agents of change
who are continually confronted by
peoples reaction and resistance to
change.
The best system will fail without the
support of the people it serves.

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16-35
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
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16-36
Change
How do people
resist AIS
changes?
aggression
projection
avoidance

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16-37
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
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16-38
Change
How can behavioral problems be

overcome? (continued)
provide honest feedback

humanize the system
describe new challenges and opportunities
reexamine performance evaluation
test the systems integrity
avoid emotionalism
present the system in the proper context
control the users expectations
keep the system simple
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16-39
Discuss the key issues and
steps in systems analysis.

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16-40
Systems Analysis
When a new or improved system is
needed, a written request for systems
development is prepared.
The request describes the current
systems problems, why the change is
needed, and the proposed systems
goals and objectives.
It also describes the anticipated
benefits and costs.

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16-41
Systems Analysis
There are five steps in the analysis

phase:
1.
2.
3.
4.
5.
Initial investigation
Systems survey
Feasibility study
Information needs and systems
requirements
Systems analysis report
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16-42
Case Conclusion
What did Ann Christy decide?
that the corporate office would

gather daily sales data from each
store

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16-43
End of Chapter 16

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16-44

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Accounting

2003 Prentice Hall Business Publishing,

2003 Prentice Hall Business Publishing,

Explain the five phases of the

Discuss the various types of feasibility

Ann Christy was promoted to controller of

managers cannot obtain information

2003 Prentice Hall Business

Ann is convinced that Shoppers Mart

What process must the company go

How will employees react to a new

This chapter discusses five major topics.

first topic is the system development

2003 Prentice Hall Business

fourth topic is the behavioral

2003 Prentice Hall Business

2003 Prentice Hall Business

The Systems Development

What are the five steps in the

The Systems Development

2003 Prentice Hall Business

The Systems Development

2003 Prentice Hall Business

The Systems Development

The Systems Development

2003 Prentice Hall Business

The Systems Development

2003 Prentice Hall Business

Who are the people involved in

What are top managements roles?

providing support and encouragement

2003 Prentice Hall Business

What are accountants roles?

determine their information needs

2003 Prentice Hall Business

What are the steering committees

set policies that govern the AIS

2003 Prentice Hall Business

What are the project development

plan each project

2003 Prentice Hall Business

What are the system analysts and

study existing systems

2003 Prentice Hall Business

2003 Prentice Hall Business

Why is planning an important step in

What types of systems development

project development plan

2003 Prentice Hall Business

Two techniques for scheduling and

PERT (program evaluation and review

2003 Prentice Hall Business

2003 Prentice Hall Business

Systems analysis is the first step in the

What five important aspects need to

capital budgeting model

2003 Prentice Hall Business

What are some capital budgeting

2003 Prentice Hall Business

2003 Prentice Hall Business

Why do behavioral problems occur?

personal characteristics and

2003 Prentice Hall Business