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Accounting Information Systems

Fourteenth Edition

Chapter 20

Introduction to Systems Development and Systems Analysis

Copyright © 2018 Pearson Education, Inc. All Rights Reserved

Copyright © 2018 Pearson Education, Inc.

Chapter 20: Introduction to Systems Development and Systems Analysis

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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 © 2018 Pearson Education, Inc.

Chapter 20: Introduction to Systems Development and Systems Analysis

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Systems Development Life Cycle (SDLC)

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Chapter 20: Introduction to Systems Development and Systems Analysis

Copyright © 2018 Pearson Education, Inc.

Chapter 20: Introduction to Systems Development and Systems Analysis

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Who Is Involved in the SDLC?

Information Systems Steering Committee

Executive level, plans and oversees IS function; facilitates coordination with integration of systems activities

Project Development Team

Plan and monitor project progress

Programmers

Write and test programs according to analysts specifications

Systems Analysts

Determine information needs, prepare specifications for programmers

Management

Get users involved in the process, provide support for development projects, align projects to meet organizations strategic needs

Users

Communicate needs to system developers, help design and test to ensure complete and accurate processing of data

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Chapter 20: Introduction to Systems Development and Systems Analysis

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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

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Chapter 20: Introduction to Systems Development and Systems Analysis

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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.

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Chapter 20: Introduction to Systems Development and Systems Analysis

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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?

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Chapter 20: Introduction to Systems Development and Systems Analysis

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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

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Chapter 20: Introduction to Systems Development and Systems Analysis

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Why Behavioral Problems Occur?

Fear

Of failure, the unknown, losing status

Lack of top-management support

If the top management is not supportive why should the employee change?

Bad prior experiences

Bad experience with prior IS changes

Poor communication

Employees need to understand why change is necessary

Disruption

Additional requests for information and additional burdens of time is distracting and prompts negative feelings

Manner change is introduced

Approaches are different for top level and lower level employees

Biases and emotions

Personal characteristics and background

Age

Open to technology and comfortable with it

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Chapter 20: Introduction to Systems Development and Systems Analysis

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How to Prevent Behavioral Problems

Management support

Provide resources and motivation

Satisfy user needs

Involve users

Participation improves communication and commitment

Reduce fears, emphasize opportunities

Avoid emotionalism

Provide training

Performance evaluation

Reevaluate to ensure performance standards are consistent with the new system

Keep open communications

Test the system prior to implementation

Keep system simple

Avoid radical changes

Control user’s expectations

Be realistic

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Chapter 20: Introduction to Systems Development and Systems Analysis

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Phase 1: Systems Analysis

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Chapter 20: Introduction to Systems Development and Systems Analysis

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Chapter 20: Introduction to Systems Development and Systems Analysis

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Key Terms (1 of 2)

Systems development life cycle (SDLC)

Systems analysis

Conceptual design

Physical design

Implementation and conversion

Operations and maintenance

Information systems steering committee

Systems analyst

Computer programmer

Project development plan

Master plan

Program evaluation and review technique (PERT)

Critical path

Gantt chart

Feasibility study

Economic feasibility

Technical feasibility

Legal feasibility

Scheduling feasibility

Operational feasibility

Capital budgeting model

Payback period

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Chapter 20: Introduction to Systems Development and Systems Analysis

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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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Chapter 20: Introduction to Systems Development and Systems Analysis

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Copyright © 2018 Pearson Education, Inc.

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