Chapter 17

Acquiring and Implementing Accounting

Information Systems
(S2)

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 AIS Selection

 Involves two steps - evaluating feasible solutions

(bubble 3.0) and determining the final solution
(bubble 4.0)
 Evaluate Feasible Solutions - two primary tasks
(matching specifications with potential AIS
solutions - bubble 3.1 and determining a set of
feasible solutions - bubble 3.2)

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 Feasible Solutions Tasks and Documents

Potential AIS
solutions
Infeasible AIS
Approved AIS solutions
specifications
3.1 Match
specifications 3.2
with potential Determine
solutions feasible Feasible AIS
solutions solution set

Environmental
information
 AIS Selection

 Match specifications with Potential

Solutions
 Use The Accounting Library (TAL)
 Determine Feasible Solutions

 The universe of available AIS solutions is

narrowed down to a set of potential solutions,
based on need requirements.
 Example: perhaps your company has heard or
read poor reviews of one of the vendors.
 Maybe you already know that installing one of
the solutions will conflict with, or be
incompatible with, your operating system and
other software applications

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 Determine Final Solution

 Bubble 4.0 - appraise vendor proposals

(4.1), recommend final solution (4.2)
and approve final solution (4.3)
 Appraise vendor proposals - to send
requests for proposals to prospective
vendors who have been identified in
the feasible AIS solution set.

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 Final solution Tasks

Acceptable
proposals
Rejected AIS
Feasible AIS solutions
solution set

4.1 Appraise
vendor 4.2
proposals Recommend
Recommended
final solution AIS solution

Requests for
proposals
Environmental
information 4.3
Vendor Approve
proposals final solution
Contracts

Signed
contracts Approved AIS
solution
 Determine Final Solution

 Recommend Final Solution

 Itis time to select the winning candidate, as
the votes are in and the judges' scores are
being tallied.
 Finalchecking by getting references from
companies who are using the vendor's
software and searching the internet reviews
on the comments about AIS solution
 Choose wisely and carefully.

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 Determine Final Solution

 Approve Final Solution

 One or more representatives from upper
management, all user groups, and the project
manager need to approve the recommended AIS
solution

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 Synopsis S2

 S1 examined the analysis and selection phases

of purchasing an AIS from an external vendor
 Due to an organization's need are so unique
that a commercial software solution is not
available.
 Therefore an organization might decide to
develop its own IS using internal skills and
resources

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 Structured Systems Analysis

 System development comprises the steps

undertaken to create, modify, or maintain an
organization's information system.
 Objectives :

 to develop an information system that

satisfies an organization's informational and
operational needs (product-oriented objective)
to develop an information system in an
efficient and effective manner (process-
oriented objective)

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System Development Methodology

 Known as System Development Life Cycle

(SDLC) - formalized, standardized,
documented set of activities used to
manage a systems development project.
 It should be used when information
systems are developed, acquired, or
maintained
Characteristics of a System Development
Methodology
 The project is divided into a number of identifiable
processes, each having a starting and ending point
 Specific reports and other documentation
 users, managers, and auditors are required to
participate in the project
 The system must be tested thoroughly prior to
implementation to ensure that it meets users' needs
 A training plan is developed for user
 Formal program change controls
 A post-implementation review of all developed
systems must be performed to assess the effectiveness
and efficiency of the new system and of the
development process
 System Development Life Cycle
(SDLC)

• 4 phases - System Analysis, systems design,

systems Implementation and systems operation
• Seven development steps undertaken to complete the
four phases of development.
• Arrows flowing into each bubble represent the inputs
needed to perform step.
• Outward-flowing arrows represent the product of a
step
 Information Systems Development
Phases, Purposes and Tasks

 Analysis
 Develop specifications for a new or revised system
 Propose alternative problem solutions
 Design
 Develop an appropriate system manifestation
 Devise implementation plans, system tests and training programs
 Implementation
 Begin using the new system
 write, test, and debug the computer programs. convert to new or
revised system
 Operation
 Use the new system
 Conduct post-implementation review. Perform systems
maintenance
 Business Process Reengineering

 BPR is an activity larger in scope than

systems development
 It addresses all of the processes in the
organization, including the information
systems processes.
 It is reflects a fundamental and radical
redesign of existing business processes.
 Change Management

 Modern business organization lives or dies

by its ability to respond to change
 Most human resist change. Why?
 Do you know that resistance to change
can be the foremost obstacle facing
successful system implementation
 Accountant's Involvement in
Systems Development

 This course will allow you to solve simple system

analysis and design problems.
 combine knowledge of IT, business, accounting,
and internal control, as well as behaviour and
communications to ensure new systems meet
the needs of user and possess adequate internal
control
 specialized skills such as accounting and
auditing
 Possess a broad understanding of an
organization's business processes.
 Systems Survey

 First step in the development of a

particular system
 Systems survey -> feasibility study or
preliminary feasibility study is a set of
procedures conducted to determine the
feasibility of a potential systems
development project
 Systems Survey Tasks and Documents

Infeasible
project
Request for
systems Facts
development 1.1
Gather 1.2
facts Perform
Feasibility
feasibility
study
study

Facts
1.3 Devise
project
plan

1.4
Obtain Draft of
Approved
feasibility approval feasibility
document document
 System Survey Goals

 Determine the nature and the extent of each

reported problem
 Determine the scope of the problem
 Propose a course of action that might solve
the problem
 Determine the feasibility of any proposed
development
 Devise a detailed plan for conducting the
analysis step
 Develop a summary plan for the entire
development project.
 Structured Systems Analysis

 Definition -> a set of procedures

conducted to generate the specifications
for a new information system or
subsystem.
 systems analysis is called structured
system analysis when structured tools and
techniques such as DFD are used in
conducting the analysis
 Systems Analysis Goals
 Define the problem precisely
 Devise alternative design (solutions)
 Choose and justify one of these alternative
design solutions
 Develop logical specifications for the selected
design
 Develop the physical requirements for the
selected design
 Develop the budget for the next two systems
development phases (systems design and systems
implementation)
 System Analysis Tasks and Documents
Approved
Current physical
Feasibility 2.1
system
document Study and
document
current 2.2
physical Extract and
system document
current logical
2.3 equivalent
Define
Current logical
future
system
logical
system
2.4
Design Logical specification
alternative Future logical
future system
physical Cost/effectiveness
study 2.6
systems Complete and
2.5 package the
Alternative Select the approved systems
future physical best analysis
Approved systems alternative document
Feasibility physical Selected alternative Physical
document system physical system requirements
 Systems Analysis Tasks and
Documents

 System analysis begins with an approved

feasibility document and ends with
physical requirements, a budget and
schedule, and a logical specification
 The analysis deliverable: The approved
systems analysis document - logical
specification and physical requirements
 Triggering systems analysis