System planning (BSP) is a method of analyzing, defining and designing the information architecture of organizations. For more details relating to it visit http://www.helpwithassignment.com/accounting-assignment-help

1. (Part I)
 Understand the roles of accountants, analysis teams, and
steering committees in system studies;
 Understand why system analysis must understand the
strategic and operational goals of a company;
 Be able to help plan and complete the analysis and design
phases of a system study;
 Be able to evaluate alternative system proposals and make a
selection or choose to outsource;
 Be familiar with the activities required to implement and
maintain a large information system.

System Planning and Development
Accounting System
Design and Development

2. predefined input3. Design
o Outputs of onereview
Systems development lifecycle represents
a
very structured and methodical way of
doing
development projects
1. Investigation o Each of these
2. Analysis stages has a
4. Implementation and output
5. Maintenance &
stage provide input
for next stage

 Their current system is inefficient
 Two or more formally separate accounting
systems need to be combined
 The power of the Internet is causing many
firms to scramble to develop a web presence
 Etc.


3. Systems Planning and the
Initial Investigation


4.  When performing a systems study, the
participants should use a systems approach –
that is, a broad point of view.
 A broad viewpoint will identify the goals top
management really desired and find the “real
problems” of the current AIS.

 System approach to planning
1) approaching organizational problems from a broad
point of view
2) utilizing an interdisciplinary study team to evaluate
an organization’s information systems
3) having the company’s steering committee work
with the study team in all phases of work


5.  Who might be chosen as study team
members?





 The use of an interdisciplinary study team
follows from the importance of a broad
viewpoint when performing a systems study.
 The team can provide knowledge of several
disciplines and serve as a team of
“specialists”.


6.  The Steering Committee interfaces between
the client company’s management and the
study team.
 A steering committee requires that top
management focus on the study and
development, ensures that top management
will be involved, and helps ensure that the
newly designed system is one that the
company wants and needs.

 Who might be chosen as study team
members?
◦ IT specialist
◦ Middle-level manager
◦ Operational supervisor
◦ Accountant
◦ Auditor


7.  In a feasibility evaluation, the design team
determines the practicality of alternative
proposals.
 Example of feasibility studies
◦ Financial
◦ Legal
◦ Schedule
◦ Technical
◦ Strategic

 The first task of a systems study is to
perform a preliminary investigation of the
information system in question and to advise
the steering committee of its findings.
 An important part of this investigation is to
separate symptoms from causes.
 The “deliverable” of this phase is the
preliminary investigation report.


8.  The operational feasibility of any proposed
system attempts to answer the question:
“How consistent will the tasks and procedures
of the new system be with those of the old
system?”
 Operational feasibility is mostly a human
relations study because it is strongly oriented
toward “people problems.”

 The technical feasibility of any proposed
system attempts to answer the question:
“What technical resources are required by a
particular system?”
 Hardware and software are two components
of the question.
 Need to also determine if
current employees possess the
technical skills.


9.  Legal feasibility is largely concerned with
whether there will be any conflict between a
newly proposed system and the
organization’s legal obligations.
 Revised systems should comply with
applicable federal and state statutes about
financial reporting and other contractual
obligations.

 Schedule feasibility involves estimating how
long it will take a new or revised system to
become operational and communicating this
information to the steering committee.


10.  Projected costs and benefits are often
converted to their present values by using
capital budgeting techniques.
 The benefits of a computerized data
processing system are often difficult to
quantify monetarily.
 The costs are usually based on accountant’s
estimates.

 Economic feasibility focuses on projecting
which, if any, of the proposed computerized
systems are expected to be cost-effective.
 The design team should perform a cost-
benefit analysis on each proposed system.
 A cost-effective system is one whose
anticipated benefits are expected to exceed
its anticipated costs.


11. Systems Analysis

12. Phase 1: Understand the systems goals
Phase 2: Systems survey to acquire
sufficient information relating to current
systems problems
Phase 3: Suggest possible solutions to
solve the systems problems through a
systems analysis report

 The basic purpose of the Systems Analysis
phase is to study a system in depth.


13.  Cost awareness
 Relevant output
 Simplified structure
 Flexible structure

 The company’s information systems goals
can be investigated at three levels.
◦ General System Goals
◦ Top Management Systems Goals
◦ Operating Management Systems Goals


14.  Decision-making functions of operating
managers relate to well-defined and narrower
organizational areas than those of top
management.
 Most of their decisions are for the current
business year and information required is
generated internally.

 Much of the information required by top
management is for long-range planning and
controlling functions.
 Long-range planning requires external
information.
 The study team should ascertain whether
needs of top management are being satisfied
by company’s current information system.


15.  Many people resist changes to their jobs.
 The systems study should gain cooperation
and support of employees or it will not be
effective.

 A Systems Survey’s objective is to enable the
study team to obtain a complete
understanding of the company’s current
operational information system and
environment.
 Of special importance is identifying
strengths and weaknesses of the
current system.


16. The final procedure in systems analysis is to
communicate the consultants’ systems
survey work in a Final Systems Analysis
Report.
 Report should be submitted to steering
committee.
 The report should contain all
information needed by management
to make a sound decision
concerning the proposed design.

 Review of documentation
 Observation of the current system
 Using questionnaires to determine user and
perhaps customer satisfaction
 Review of internal control procedures
 Conducting interviews with individual system
participants


17.  If the client’s steering committee reacts
positively toward the recommendations, the
organization moves forward with systems
design.
Prior to preparing a detailed design for a
computerized information system, the
consultants should conduct a feasibility
evaluation.

Systems Design and Selection

18.  Perform feasibility evaluation
 Prepare detailed systems design
 Prepare systems specifications report
 Submit systems specifications report to
computer vendors or internal IT department.
 Select particular computer vendor proposal or
develop application in-house.

Perform feasibility evaluation
Prepare detailed systems
design
Prepare systems
specification report
Buy Make
Submit systems specification Submit systems specification
report to vendors report to internal IT department
Select particular Develop application
vendor proposal inhouse


19. Control requirements
 Processes
 Data Elements
 Data Structure
 Inputs
 Outputs
 Documentation
 Constraints
 Controls
 Reorganizations

 The design team prepare a Detailed System Design
for the general systems plan.
 Detailed System Design includes specifying
outputs, processing procedures, and inputs for the
new system.
 This becomes the “blueprint” for
creating or acquiring the new system.
 From an accounting standpoint, one of the most
important elements in a new system is
.


20.  Process design involves identifying the
processing procedures required to produce
the outputs.
 Tools available to model processes are
ER diagrams, structure charts, system
flowcharts, data flow diagrams, program
flowcharts, and process maps.
 Common to all of these design
methodologies is the idea of a structured,
top-down design.

 An AIS should be designed to meet users’
information needs; thus, output
specifications must by prepared first.
 The design team should use data gathered
from the prior systems analysis work to help
decide what kinds of reports are needed.
 Outputs should be classified according to
functional area requesting them.


21.  The Systems Specifications Report includes
detailed information about the system design
proposal.
After the steering committee approves the
detailed design work, it now faces a
control requirement.

 Team must identify and describe each data
element in the systems design as well as
specify the way data items must be coded.
 The design team must also determine the
source for each data element.


22. Implementation,
Follow-up and Maintenance
 The performance capability of each proposed
system in relation to its cost.
 The costs and benefits of each proposed
system.
 The maintainability of each proposed system.
 The compatibility of each
proposed system with existing
systems.
 Vendor Support


23.  Prepare the Physical Site - accountants are
concerned about incremental costs.
 Determine the Functional Changes - includes
analysis of job function changes and types of
data that will be processed and reported.
 Select and Assign Personnel - new
system may require added
personnel, job reengineering,
or terminating employees.

 Systems Implementation is often called the
“action” phase of a systems study because the
recommended changes from the prior analysis,
design, and development work are now put
into operation.


24.  Convert Data Files - data files may have to be
converted to newer, more useful formats.
 Acquire Computer Software
◦ Software acquired from an independent vendor is
called canned software.
◦ Hardware and software combined in one package is
called a turnkey system.
 Test Computer Software - programs must be
tested regardless of where they came from or
who wrote them.

 Train Personnel - computer vendor
personnel and implementation team can help
train personnel.
 Acquire and Install Computer Equipment –
implementation team and computer vendor’s
employees help to install the new computer
equipment.
 Establish Internal Controls - cost-
effective general and application
controls should be built into
the system.


25.  The purpose of follow-up and maintenance is
to monitor the new system and make sure
that it continues to satisfy the three levels of
organizational goals:
◦ General systems goals
◦ Top management systems goals
◦ Operating management systems goals

 Conversion - there are several conversion
methods:
◦ Direct conversion - the old system is immediately
discontinued when the new system is implemented.
◦ Parallel conversion - both the new and old system
operate simultaneously for a certain period of time.
◦ Modular conversion (or pilot conversion) - consists
of testing and converting the new system one
module at a time.


26.  Stair, R. and Reynolds G. (2006), Fundamentals of
Information Systems, 3rd Edition, Thompson, USA
 Bagranoff, N. and Simkin, M. and Strand, S. (2008),
Core Concepts of Accounting Information Systems,
10th Edition, John Wiley & Sons, New York


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