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. 3 Triggers for Systems Development Planned Reviews –shifting business requirements changing organization environments evolving 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. 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. 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. 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. 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. 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. 9 Systems development life cycle

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

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

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

13. 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. 14 Systems development life cycle

15. 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

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

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

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

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

21. 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. 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. 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. 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. 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