Chapter 15

1. Chapter 15 Introduction to Systems Development

2. Learning Objectives • Learn how information systems are developed • Understand importance of managing SD process • Be familiar with SD process, major phases/steps • Be familiar with accountant’s future involvement in SD • Identify when alternative approaches to SD work • Be acquainted with goals, plans, tasks, tools, and results of systems survey • Understand accountant’s involvement in systems survey

3. Triggers for Systems Development • Planned Reviews • shifting business requirementschanging organization environmentsevolving information technology • User-requested reviews • System does not meet system goals • regulation changes • reports don’t meet decision-maker needs • escalating complaints • erroneous system outputs causing problems

4. Reasons for SD failures • Lack of senior management support • Shifting user needs • Development of strategic systems (fuzzy) • New technologies • Lack of standard project management and system development methodologies • Failure to act on strategic changes required • Resistance to change • Lack of user participation • Inadequate testing and user training

5. Elements of Good SD Project Mgmt. • User participation • Assignment of proper staff - definition of roles • Written statement of project nature & scope • Feasibility study - basis for mgt. approval • Project master plan - time/cost estimates

6. Elements of Good SD Project Mgmt. (cont.) • Risk management program • Division of project into phases • Approval of work from phases before proceeding • Quality assurance plan

7. Systems Development Methodology • Formalized, standardized, documented set of activities used to manage a SD project • Should be used when information systems are developed, acquired, or maintained

8. SD Methodology Elements • Divide project into processes • starting/ending points • several activities • one or more deliverables • several management control points • Describe reports and other documentation (deliverables) • Require that users, managers, & auditors participate in project. Get signoffs.

9. Systems development life cycle

10. Business Process Reengineering • Fundamental rethinking of business processes • Radical redesign • Achieving dramatic improvements • Focus on end-to-end business processes

11. Accountant’s Involvement in SD • Systems specialist • Consultant • Staff accountant • Internal auditor • Independent auditor

12. Alternative Approaches to SDLC • Data-structured development • Object-oriented development • Business Process Reengineering (BPR) • Fundamental rethinking of business processes • Radical redesign

13. Systems Survey • Often called feasibility study or preliminary feasibility study • Set of procedures conducted to determine the feasibility of a potential systems development project • Prepare a systems development plan for projects considered feasible

14. Systems development life cycle

15. System Survey Goals • Determine nature/extent of systems development • Determine scope of problem • Propose course of action that might solve problem • Determine feasibility of any proposed development • Devise detailed plan for conducting analysis • Devise summary plan for entire project

17. Accountant’s Involvement in System Survey • Systems specialist or consultant • Staff accountant • Internal auditor • Independent auditor

18. Feasibility Document • Summary • Introduction • Summary of Findings • Recommendations • Description of Problem • Solution Objectives • Constraints • Preliminary Feasibility Study

19. Feasibility Document (cont.) • Development Plans • Scope of development • Tasks to be accomplished • Timetable • Systems development team • Potential Solutions • Recommendations • Approvals

20. Feasibility Document - Attachments • Requests for Systems Development • Memoranda • Summaries of Observations • Documentation • Feasibility Documentation • Planning Documents

21. Objectives of Fact Gathering • Determine whether problem exists • Define problem further • Determine scope of problem • Obtain information to conduct preliminary feasibility study • Devise plan for conducting analysis

22. Types of Feasibility • Technical feasibility: if problem can be solved using available h/w & s/w technology • Operational feasibility: if problem can be solved given the organization’s available personnel and procedures • Economic feasibility: if • costs seem reasonable; (benefits exceed costs) • project compares favorably vs. competing projects

23. Contents of Project Plan • Scope of Analysis • Required tasks & personnel skills • Recommended project team and leader • Recommended SD organization structure • Sources of required information • Timetable for completing analysis • Estimated analysis costs • Timetable/estimated costs for whole project

24. Objectives of Project Plan • Provide means to schedule use of resources • Indicate milestones to monitor project’s progress • Forecast budget, used to authorize project continuation • Furnish guidelines for go/no-go decision • Offer framework by which management can determine reasonableness/completeness of project’s steps

25. Calculating Development Costs • Determine work units; document using work breakdown structure • Determine skill level for each unit • Estimate costs for each unit • Aggregate individual units to determine analysis cost • Assign work units to calendar periods • Estimate miscellaneous costs

26. Learning Objectives • Learn how information systems are developed • Understand importance of managing SD process • Be familiar with SD process, major phases/steps • Be familiar with accountant’s future involvement in SD • Identify when alternative approaches to SD work • Be acquainted with goals, plans, tasks, tools, and results of systems survey • Understand accountant’s involvement in systems survey