Systems Implementation, Operation, and Control Chapter 11

Learning Objectives 1, 2, and 3 Describe the major phases of systems implementation. Recognize some of the major human factors involved in systems implementation. Describe the major forms of documentation involved in the implementation of a new system.

Systems Implementation There are three major steps in systems implementation. 1. Establish plans and controls. 2. Execute activities as planned. 3. Follow up and evaluate the new system.

Systems Implementation Systems planning and analysis Systems designs Establish plans and controls Execute activities Follow up and evaluate Systems review and control

Step I: Establishing Plans and Controls for Implementation These plans should incorporate three major components: 1. A breakdown of the project into various phases 2. Specific budgets applicable to each phase 3. Specific timetables applicable to each project phase

Step I: Establishing Plans and Controls for Implementation Scheduling Techniques: Gantt chart Network diagram Critical path

Gantt Chart Example Evaluate software Planned time Actual time Select computer Train employees Test system 1/1 2/1 3/1 4/1 5/1 6/1 7/1

Simple Network Diagram Complete Start Select software Train employees Implement computer Contact vendors Review budget Evaluate Allocate funds

Step II: Executing Implementation Activities What are examples of activities during execution? Selecting and training personnel Installing new computer equipment Detailed systems design

Step II: Executing Implementation Activities Writing and testing computer programs Selecting and training personnel Installing new computer equipment Detailed systems design File conversion

Step II: Executing Implementation Activities It is desirable for management and the systems team to make a formal announcement regarding the project. Special Project Team

Employee Training Hiring outside training consultants Using training manuals Videotape presentations Audiotape presentations

Employee Training Training seminars Individualized hands-on instruction Computer-assisted training

Acquiring and Installing New Computer Equipment Adequate facilities must be available. Specialized security measures must be implemented.

Detailed Systems Design Additional design work Last-minute fine tuning of the systems design plan

Documenting the New System Documentation is one of the most important parts of system implementation, but it is often overlooked. Good documentation can serve a wide range of useful purposes.

Documenting the New System What are some of these purposes? Training new employees Providing programmers and analysts with useful information for future program evaluation and modification activities

Documenting the New System Providing auditors with useful information for evaluating internal controls Assisting in assuring that systems design specifications are met

File Conversion In many cases, files maintained manually must be converted to computer format. Conversion can be an expensive, time-consuming process.

Test Operations There are three basic approaches to the final testing of the system. What are these approaches? 1. Direct approach 2. Parallel operation 3. Modular conversion

Step III: Evaluating the New System What approaches can assist in follow-up and evaluation? Observations Questionnaires Performance measures Benchmarks

Understand how to plan and control a systems project. Learning Objective 4 Understand how to plan and control a systems project.

Planning and Organizing a Systems Project Resources should be allocated to those projects that yield the greatest benefits to the organization.

Planning and Organizing a Systems Project Project selection The project team Project leader responsibilities Project uncertainty

Project Team Organization Steering committee Information systems department User department Lead analysts Analysts/ programmers Technical staff Project leader User member

Project Leader Responsibilities Scheduling Planning Control Allocation of resources Project breakdown Task assignment Activity/task scheduling Progress and time reporting Status

Project Breakdown into Tasks and Phases Time estimates Work measurement techniques

Factoring a Project into Tasks and Phases New System Implementation Analysis Design 1.0 2.0 3.0 Application study Vendor selection 1.1 1.2 Output design Form Program 2.1 2.3 2.2 Equipment delivery Documen- tation 3.1 3.2

Work Measurement Techniques Identify the tasks to be estimated. Estimate the total size of the task. Convert into a time estimate. Adjust the estimated processing.

Accuracy of Estimates Estimates made during the early phase of a project can be expected to be inaccurate. Initial estimates are frequently made too low.

Project Accounting Project control is established by setting measurable goals for each phase and task in the overall project. A project accounting system is a cost accounting system.

Project Accounting Computer usage summaries Progress report Time sheets Project accounting system Cost to date Overhead rates Revised cost estimate

Project Accounting Project accounting system Project File Number 91-045 Costs Actual Budget Materials XXX XXX Labor XXXX XXXX Overhead XXX XXX Project schedule Project File

Describe several approaches for control over nonfinancial Learning Objective 5 Describe several approaches for control over nonfinancial systems resources.

Control Over Nonfinancial Information Systems Resources What are nonfinancial factors? Performance measures for: Hardware Software Personnel

Control Over Nonfinancial Information Systems Resources Hardware performance involves system… Utilization Downtime Responsiveness What is downtime? It is the percentage of time that the machine is unavailable for use.

Control Over Nonfinancial Information Systems Resources Evaluating software performance involves the following: Survey systems users. Constantly monitor the software.

Control Over Nonfinancial Information Systems Resources Controls relating to personnel involve preparing reports for: Data entry specialists Evaluating the efficiency of systems operators Hardware repair persons

Auditing the Information System The audit’s focus should be on the information system itself and on the validity and accuracy of data as processed by the system. Internal control system Tests of compliance

Maintaining and Modifying the System In all operational systems, it becomes necessary to make changes. Why? It is not possible to foresee all contingencies during the design phase. Environmental conditions and information needs change. The computer program may contain bugs.

End of Chapter 11