1. Chapter 16 Structured Systems Analysis

2. Learning Objectives Know goals, plans, tasks, tools, & results of systems analysis Understand/appreciate costs of developing, maintaining, operating information system Appreciate typical information system benefits Understand how accountants participate in systems analysis Perform some analysis tasks

3. 3 Systems development life cycle

4. 4 Systems Analysis Goals Define problem precisely Devise alternative designs (solutions) Choose & justify one of the alternatives Develop logical specifications for selected design Develop physical requirements for selected design Develop budget for next two SD phases (systems design; systems implementation)

5. 5 Systems Analysis Plans & Documents

6. 6 Accountant’s Involvement in Systems Analysis Systems specialist or consultant Staff accountant –User/requester –member of analysis team –interviewee by analysis team Internal auditor –consultant to analysis team –agent of management/board of directors

7. 7 Systems Analysis Document Executive summary –Project summary –Summary of proposed system –Summary of impact of new system –Summary of cost/effectiveness & recommendations Systems analysis summary –facts gathered –analysis performed

8. 8 Systems Analysis Document (cont.) User requirements for new system –Operating requirements –Information requirements –Control requirements Description of future logical system –DFDs, data dictionaries, narrative description –Summary of improvements from new system

9. 9 Systems Analysis Document (cont.) Description of future physical system –DFDs, flowcharts, narrative –Summary of cost/benefit improvements - new system New system constraints –Hardware & software constraints –Interface constraints –Contractual/legal requirements

10. 10 Systems Analysis Document (cont.) Design phase budget & schedule –Design phase personnel/computer requirements –Development schedule Physical requirements –Workload & volume –Response times –Functional layouts of screens & reports –System growth

11. 11 Systems Analysis Document (cont.) Recommendations - project leader Approvals Attachments –Approved feasibility document –Analysis memos, summaries, tables, graphs, charts –Cost/effectiveness schedules

12. 12 Systems Analysis Documentation Memos summarizing interview & observations Narratives describing observations Charts, tables, graphs Completed questionnaires (or summaries) Flowcharts Physical DFDs Organization charts

13. 13 Future logical system from current Add new activities Remodel existing activities Add or change control activities

14. 14 Future Physical from Future Logical Decide which processes will be manual/automated Decide which would be immediate processing and which would be batch Complete specifications for new system –alternative technologies (EDI, mail) –alternative modes (immediate/batch)

15. 15 Select Best Alternative Physical System Analysis team recommends IT steering committee ratifies - or sends back Analysis team conducts cost/effectiveness study –cost/benefit analysis –effectiveness analysis

16. 16 Cost/Benefit Analysis Estimate costs of new system –direct costs - equipment, personnel, site, materials, supplies –indirect costs - overhead-type costs, utilities Estimate benefits of new system –direct benefits - reduced personnel/hardware costs –indirect benefits - improved revenue from improved customer support; reduced inventory &/or accounts receivable

17. 17 Effectiveness Analysis Analysts & user list all relevant criteria, including costs & benefits Users & analysts jointly assign subjective rankings for each criterion for each alternative Team ranks alternatives by summarizing ratings Team recommends best alternative to steering committee

18. 18 Logical Specifications Will be used in systems selection or design Executive summary - DFD & narrative for major features, objectives, benefits & constraints Application description - DFD & narrative for each system function Information requirements - each input, output, & file: purpose, description, origin, major elements, frequency, volume, distribution Miscellaneous functions

19. 19 Physical Requirements Used in systems selection to acquire equipment Items to be specified –Data storage File size, growth, activity, access requirements Transaction volume/expected growth Peripherals - printers, PCs, plotters Communications Backup & security Processing approaches Reliability Output distribution Response time requirements

20. 20 Budget & Schedule Budget - from cost/benefit analysis - update of projections made during systems survey Schedule - update of preliminary schedules made during systems survey Finally, the document should have the proper approvals

21. Learning Objectives Know goals, plans, tasks, tools, & results of systems analysis Understand/appreciate costs of developing, maintaining, operating information system Appreciate typical information system benefits Understand how accountants participate in systems analysis Perform some analysis tasks