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Developing and Implementing Effective

Accounting Information SystemIntroduction

IT governance, part of an organizations overall mission, goals, policies, and proceduresis the process of ensuring that IT is used effectively, efficiently, and strategically.

IT systems study includes planning and analysis through development, implementationand feedback loop for each new IT application.

System study is not conducted by systems people, it is the job of systems programmers,analysts, designers, users, and managers.

The Systems Development Life Cycle (SDLC)

Systems Study (systems development work)

- begins with a formal investigation of an existing information system. This usually

performs by large companies that have an in-house professionals, and for the smaller

companies with limited technical expertise are more likely to hire a team of outside consultants.

Four Stages of SDLC

1. Planning and Investigation- this step involves performing a preliminary investigation of the existing system, organizing

a systems study team, and developing strategic plans for the remainder of study.

2. Analysis- this step involves analyzing the companys current system in order to identify the

information needs, strengths, and of the existing system.

3. Design

- in this step, an organization make changes that eliminates (or minimize) the current

systems weak points while preserving its strengths.

4. Implementation, Follow-up and Maintenance

- this phase includes acquiring resources for the new system as well as training new or

existing employees to use it.

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Application Portfolio

- this portfolio include an enterprise system, along with other specialized information systems,

or it may of many separate systems for functional areas such as accounting, marketing and human

resources.

- is a compilation for a given customer, of the high-level and detailed information necessary for

I/T and the customer to develop an investment strategy across the customers applications (i.e. develop

specific improvement or investment plans for each application where improvement or investment are

merited).

Systems Planning

Planning for Success

- means beginning of a systems study with a focused investigation that :

1. Approaches specific organizational problems from a broad point of view,

. Uses an interdisciplinary study team to evaluate an organizations information system,

3. Make sure the companys study team works closely a steering committee in all phases of

work.

Broad Viewpoint in a Systems Study

Systems Approach

- this approach aligns with the organizations mission and strategic planning goals and

objectives.

The Study Team and the Steering Committee

Steering Committee

- An advisory committee usually made up of high level stakeholders and/or

experts who provide guidance on key issues such as company policy and objectives,

budgetary control, marketing strategy, resource allocation, and decisions involving

large expenditures.

It is important that the study team communicate closely and meaningfully with the companys

top managers. To provide this continuous interface, the companys top management should also

appoint a steering committee to work with each study team as it performs its tasks.

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System Analysis- the basic purpose of this is to examine a system in depth.

Analysis Paralysis

-

Organizational Goals:

General Systems Goals- this applies to most organizations to become an efficient and effective organization.

Principles contributing to this goals are: 1. cost-benefit analysis, 2. very good decision-maker, 3.

commitment to designing a system that allows optimal access to information, 4. flexibility.

Top Management System Goals- AISs plays a vital role in achieving management goals. AISs usually provides top

managers with long-range budget planning data that they can use in making effective strategic decisions

regarding product sales or similar business activities.

- the basic purpose of this is to examine a system in depth.

Analysis Paralysis

-

Organizational Goals:

General Systems Goals- this applies to most organizations to become an efficient and effective organization.

Principles contributing to this goals are: 1. cost-benefit analysis, 2. very good decision-maker, 3.

commitment to designing a system that allows optimal access to information, 4. flexibility.

Top Management System Goals- AISs plays a vital role in achieving management goals. AISs usually provides top

managers with long-range budget planning data that they can use in making effective strategic decisions

regarding product sales or similar business activities.

Observe the Current System in Operation. Visiting various parts of the operation on a surprise

schedule and asking workers questions about their jobs can be extremely helpful in learning whether

the systems work as described, as well as discovering the morale of employees, occurrence of down-

time, and workload cycles and distribution.

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Use Questionnaires and Surveys. These can be anonymous so that respondents share their

views openly about sensitive issues. Open-ended questionnaires provide an unstructured free-flow of

ideas that may bring new issues to light.

Review Internal Control Procedures. In earlier chapters of this book, we discussed the

importance of internal control systems. Weaknesses in these procedures can cause major problems fora company. The study team should identify high-risk areas, strengths, and weaknesses of the specific

procedures.

Interview System Participants. Face-to-face interviews allow the study team to gather system

information in the greatest depth and sometimes reveal surprises. For example, an interview might

reveal that a managers decisions dont really require input from several existing reports.

TO BE COTINUED