You are on page 1of 173

C HAPTER 20

Systems Design,
Implementation, and
Operation

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 1 of 171
INTRODUCTION

• Questions to be addressed in this chapter


include:
– What are the activities that take place in the
conceptual design phase of the systems development
life cycle (SDLC)?
– What activities take place in the physical systems
design phase?
– What happens during the systems implementation
and conversion process?
– What activities occur in the systems operation and
maintenance process?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 2 of 171
INTRODUCTION
• Accountants must understand the entire systems
development process, since they are involved in
several ways:
– Helping to specify their needs.
– As members of the development team.
– As auditors after the fact.
• Accountants also help keep the project on track
by:
– Evaluating and measuring benefits.
– Measuring costs.
– Ensuring the project stays on schedule.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 3 of 171
INTRODUCTION

• Effective systems analysis and design


can ensure that developers:
– Correctly define the business problem.
– Design the appropriate solution.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 4 of 171
INTRODUCTION

• The crucial phases of the SDLC include:


– Systems analysis to define the new systems
requirements (discussed in Chapter 18).
– The phases discussed in this chapter, which
include:
• Conceptual systems design
• Physical systems design
• Systems implementation and conversion
• Operation and maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 5 of 171
INTRODUCTION

• The crucial phases of the SDLC include:


– Systems analysis to define the new systems
requirements (discussed in Chapter 18).
– The phases discussed in this chapter, which
include:
• Conceptual systems design
• Physical systems design
• Systems implementation and conversion
• Operation and maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 6 of 171
CONCEPTUAL SYSTEMS DESIGN

• In the conceptual systems design


phase, a general framework is created for
implementing user requirements and
solving the problems identified in the
analysis phase.
• The three main steps are:
– Evaluate design alternatives.
– Prepare design specifications.
– Prepare the conceptual systems design
report.
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 7 of 171
Conceptual
Systems
Systems Analysis
Design

Evaluate Prepare Prepare


Design Design Conceptual Systems
Alternatives Specifications Design report

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 8 of 171
Systems
Analysis

Evaluate Prepare Prepare


Design Design Conceptual Systems
Alternatives Specifications Design report

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 9 of 171
CONCEPTUAL SYSTEMS DESIGN

• Evaluating Design Alternatives


– There are many design decisions that must be
made. For example:
• Should a document be hard-copy or sent by EDI?
• Should the company use a large centralized
mainframe or some form of distributed processing?
• What form should data entry take, e.g., keyboard,
optical character recognition, POS devices?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 10 of 171
CONCEPTUAL SYSTEMS DESIGN

• Also, there are many ways to approach the


systems development process:
– Packaged software
– In-house development
– End-user development
– Outsourcing
• The company also chooses between:
– Modifying or enhancing existing software
– Replacing existing software
– Reengineering its business processes

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 11 of 171
CONCEPTUAL SYSTEMS DESIGN
• The design team should identify a variety of
design alternatives and evaluate each with
respect to:
– How well it meets organizational and system
objectives
– How well it meets user needs
– Whether it is economically feasible
– Its advantages and disadvantages
• The steering committee evaluates the
alternatives.
• Click here to view some of the design
considerations and alternatives from Table 20-1
in your textbook.
Design Considerations
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 12 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured? • Point-to-point
• Multi-drop
• Line-sharing

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 13 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured?
• What type of communications channel
should be used? • Phone lines
• Coaxial cable
• Fiber optics
• Microwave
• Satellite

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 14 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured?
• What type of communications channel should be
used?
• What type of communications network
should be used? • Centralized
• Decentralized
• Distributed
• Local area

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 15 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured?
• What type of communications channel should be
used?
• What type of communications network should be
used?
• What type of storage media should be used
for data? • Tape
• Disk
• Diskette
• Hard drive
• CD
• Paper
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 16 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured?
• What type of communications channel should be
used?
• What type of communications network should be
used?
• What type of storage media should be used for
data?
• What type of data storage structure should
be used?
• Files
• Database

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 17 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How should the communications channel be
configured?
• What type of communications channel should be
used?
• What type of communications network should be
used?
• What type of storage media should be used for
data? • Random
• Sequential
• What type of data storage structure should be
• Indexed-sequential access
used?
• How should files be organized and
accessed?
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 18 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• Keying
• OCR
• MICR
• POS
• EDI
• Voice

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 19 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• Source documents
• Turnaround documents
• Source data automation
• Screen

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 20 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated? • In-house
• Outsourcing

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 21 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• Instantly
• Hourly
• Daily
• Weekly
• Monthly

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 22 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• Paper
• Screen
• Voice
• Diskette
• CD
• Microfilm

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 23 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• On demand
• At predetermined times

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 24 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• What format will the output take?
• Narrative
• Table
• Graph
• Electronic file or communication

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 25 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• What format will the output take?
• What form will printed output take?
• Pre-printed forms
• Turnaround documents
• System-generated forms

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 26 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• What format will the output take?
• What form will printed output take?
• What processing mode will be used?
• Manual
• Batch
• Real time
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 27 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• What format will the output take?
• Personal computer
• What form will printed output take?
• Minicomputer
• • Mainframe
What processing mode will be used?
• What type of processor will be utilized?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 28 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• What media should be used to input data?
• What format will the input take?
• How will the system be operated?
• How frequently will outputs be produced?
• What media will be used for output?
• How will output be scheduled?
• What format will the output take?
• What form will printed output take?
• What processing mode will be used? • Canned
• What type of processor will be utilized?
• Custom
• How will software be acquired? • Modified
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 29 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How will transactions be processed?
• By batch
• Online

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 30 of 171
CONCEPTUAL DESIGN
CONSIDERATIONS AND ALTERNATIVES
• How will transactions be processed?
• How frequently will updates occur?
• Instantly
• Hourly
• Daily
• Weekly
• Monthly

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 31 of 171
Systems
Analysis

Evaluate Prepare Prepare


Design Design Conceptual Systems
Alternatives Specifications Design report

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 32 of 171
CONCEPTUAL SYSTEMS DESIGN

• Prepare design specifications


– Once a design has been selected, the
project team develops the conceptual
design specifications for the following
elements:
• Output
• Because output is what goes to the user and the
system must be designed to meet user needs, the
output specifications are prepared first.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 33 of 171
CONCEPTUAL SYSTEMS DESIGN

• Prepare design specifications


– Once a design has been selected, the
project team develops the conceptual
design specifications for the following
elements:
• Output
• Data storage
• How will data be stored to produce the desired
outputs?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 34 of 171
CONCEPTUAL SYSTEMS DESIGN

• Prepare design specifications


– Once a design has been selected, the
project team develops the conceptual
design specifications for the following
elements:
• Output
• Data storage
• Input
• What types of data must be entered to produce the
desired outputs?
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 35 of 171
CONCEPTUAL SYSTEMS DESIGN

• Prepare design specifications


– Once a design has been selected, the
project team develops the conceptual
design specifications for the following
elements:
• Output
• Data storage
• How will data be processed and in what sequence
• Inputto produce the desired outputs?
• Processing procedures and operations

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 36 of 171
Systems
Analysis

Evaluate Prepare Prepare


Design Design Conceptual Systems
Alternatives Specifications Design report

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 37 of 171
CONCEPTUAL SYSTEMS DESIGN

• Prepare the Conceptual Systems


Design Report
– A conceptual systems design report is
prepared at the end of the conceptual design
phase to:
• Guide physical system design activities.
• Communicate how management and user
information needs will be met.
• Help the steering committee assess system
feasibility.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 38 of 171
CONCEPTUAL SYSTEMS DESIGN

• The main component is a description of one or


more recommended system designs. This
description contains:
– The contents of each output, database, and input.
– Processing flows and the relationships among
programs, files, inputs, and outputs.
– Hardware, software, and resource requirements.
– Audit, control, and security processes and
procedures.
– A discussion of assumptions or unresolved problems
that might affect the final design.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 39 of 171
INTRODUCTION

• The crucial phases of the SDLC include:


– Systems analysis to define the new systems
requirements (discussed in Chapter 18).
– The phases discussed in this chapter, which
include:
• Conceptual systems design
• Physical systems design
• Systems implementation and conversion
• Operation and maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 40 of 171
PHYSICAL SYSTEMS DESIGN
• During the physical systems design phase, the
company determines how the conceptual AIS
design is to be implemented.
– The broad, user-oriented requirements of conceptual
design are translated into detailed specifications used
to code and test computer programs.
– Phases include:
• Designing output
• Creating files and databases
• Designing input
• Writing computer programs
• Developing procedures
• Building in controls

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 41 of 171
Systems
Analysis

Physical
Conceptual
Systems Systems
Design Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 42 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 43 of 171
PHYSICAL SYSTEMS DESIGN

• Output Design
– The objective of output design is to
determine the nature, format, content,
and timing of printed reports,
documents, and screen displays.
• Requires cooperation between users and
designers.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 44 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
• Who will use it and why?
• When is it needed?
• What decisions will it facilitate?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 45 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


• Paper
– Use of the output
• Screen
– Output medium • Voice response
• Diskette
• Microfilm
• Other

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 46 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format • Should select the format that
clearly conveys the most
information.
• Could be:
– Table
– Narrative
– Graphic

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 47 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format
– Pre-printed • Should paper output be on
preprinted form and/or
turnaround document?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 48 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format
– Pre-printed
– Location • Where is the output to be
sent?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 49 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format
– Pre-printed
– Location
– Access • Who should be able to
access hard-copy and
screen output?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 50 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format
– Pre-printed
– Location • Lengthy output should be preceded by an
– Access executive summary and a table of contents.
• Headings and legends organize data and
– Detail highlight important items.
• Detailed info goes in an appendix.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 51 of 171
PHYSICAL SYSTEMS DESIGN

• Important design considerations include:


– Use of the output
– Output medium
– Output format
– Pre-printed
– Location
– Access
– Detail • How often should the output be produced?
– Timeliness
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 52 of 171
PHYSICAL SYSTEMS DESIGN

• Outputs usually fit into one of the following


four categories:
– Scheduled reports
• Have pre-specified content and format.
• Are prepared on a regular basis.
• Examples:
– Weekly sales analysis
– Monthly financial statements

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 53 of 171
PHYSICAL SYSTEMS DESIGN

• Outputs usually fit into one of the following


four categories:
– Scheduled reports
– Special-purpose analysis reports
• No pre-specified content and format.
• Typically prepared in response to a
management request.
• Example:
– Analysis of impact of a government mandate on
profitability

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 54 of 171
PHYSICAL SYSTEMS DESIGN

• Outputs usually fit into one of the following


four categories:
– Scheduled reports
– Special-purpose analysis reports
– Triggered exception reports
• Have pre-specified content and format.
• Prepared only in response to abnormal
conditions, i.e., the “trigger.”
• Example:
– Cost overruns

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 55 of 171
PHYSICAL SYSTEMS DESIGN

• Outputs usually fit into one of the following


four categories:
– Scheduled reports
– Special-purpose analysis reports
– Triggered exception reports
– Demand reports
• Have pre-specified content and format.
• Prepared only on request.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 56 of 171
PHYSICAL SYSTEMS DESIGN

• AIS developers prepare sample outputs


and users evaluate them to ensure they
are complete, relevant, and useful.
– Modifications are made as needed to ensure
acceptability.
– Many organizations require users to sign off
on these documents before proceeding
through the SDLC.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 57 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 58 of 171
PHYSICAL SYSTEMS DESIGN

• File and Database Design


– Various company segments need to store data in
compatible formats so that data can be shared across
units.
– Important file and database design considerations
include: • Hard drive
• Storage medium • Disk
• Diskette
• CD
• Tape
• Paper

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 59 of 171
PHYSICAL SYSTEMS DESIGN

• File and Database Design


– Various company segments need to store data in
compatible formats so that data can be shared across
units.
– Important file and database design considerations
include:
• Storage medium • Manual
• Processing mode • Batch
• Real time

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 60 of 171
PHYSICAL SYSTEMS DESIGN

• File and Database Design


– Various company segments need to store data in
compatible formats so that data can be shared across
units.
– Important file and database design considerations
include:
• Storage medium
• Processing mode
• Maintenance • What procedures are needed to
effectively maintain the data?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 61 of 171
PHYSICAL SYSTEMS DESIGN

• File and Database Design


– Various company segments need to store data in
compatible formats so that data can be shared across
units.
– Important file and database design considerations
include:
• Storage medium
• Processing mode
• Maintenance
• Size • How many records and how big are they?
• How fast are they expected to grow?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 62 of 171
PHYSICAL SYSTEMS DESIGN

• File and Database Design


– Various company segments need to store data in
compatible formats so that data can be shared across
units.
– Important file and database design considerations
include:
• Storage medium
• What portion of records are added or
• Processing mode
deleted each year?
• Maintenance •
What portion needs to be updated?
• Size
• Activity level

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 63 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 64 of 171
PHYSICAL SYSTEMS DESIGN

• Input Design
– Systems designers must identify the
different types of data input and optimal
input methods.
– There are two principal types of data
input:
• Forms
• Computer screens

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 65 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium • Keyboard
• OCR
• MICR
• POS terminal
• EDI
• Voice input

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 66 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium • Where do data originate?
– Input source – Computer
– Customer
– Remote location

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 67 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format • What format captures the data with
the least effort or cost?
– Source or turnaround document
– Screen
– Source data automation

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 68 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type • What is the nature of the data?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 69 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type
– Volume • How much data are to be entered?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 70 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type
– Volume
– Personnel
• What functions and expertise do the data
entry operators have?
• Is additional training necessary?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 71 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type
– Volume
– Personnel
– Frequency • How often is data to be entered?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 72 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type
– Volume
– Personnel
– Frequency  How can costs be minimized without
adversely affecting efficiency and
– Cost accuracy?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 73 of 171
PHYSICAL SYSTEMS DESIGN

• Considerations in input design include:


– Input medium
– Input source
– Input format
– Input type
– Volume
– Personnel
– Frequency • What errors are possible?
• How can they be detected and corrected?
– Cost
– Error detection and correction

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 74 of 171
PHYSICAL SYSTEMS DESIGN
• Preprint as much data as possible.
• Use appropriate weight and grade of paper.
• Use bold type, double-thick lines, and shading to
• Forms Designhighlight different parts of the form.
• Use a standard size and one that is consistent with
– Although inputforisfiling,
requirements evolving toward
binding, source data
or mailing.
automation, forms design
• If mailed to external is still the
parties, position important.
address for
placement in a window envelope.
– Following are important principles for
• Have copies of the form printed in different colors to
designing new forms
facilitate accurate and evaluating existing
distribution.
ones:
• Include clear instructions for completing the form.
• General considerations

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 75 of 171
PHYSICAL SYSTEMS DESIGN

• Forms Design
– Although input is evolving toward source data
automation,• forms design is still important.
Place the form name at the top in bold type.
– Following are important
• Have principlesconsecutively.
the forms pre-numbered for
• If distributed to external parties, have company
designing new forms
name and pre-printed
and address evaluating on theexisting
form.
ones:
• General considerations
• Introductory section of form

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 76 of 171
PHYSICAL SYSTEMS DESIGN

• Forms Design
• Group together logically related information
– Although input(e.g.,
is evolving toward
info about the source
customer, datathe
info about
automation, forms
product).design is still important.
• Provide sufficient room to record each item.
– Following are important principles for
• Order the data items consistent with the
designing newsequence
forms in and evaluating
which existing
the data is likely to be
ones: gathered.
• Use codes and check-offs in places where
• General considerations
standardized explanations are likely.
• Introductory section of form
• Main body of form

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 77 of 171
PHYSICAL SYSTEMS DESIGN

• Forms Design
– Although input is evolving toward source data
automation, forms design is still important.
• Provide
– Following are space
important for:
principles for

designing new Recording
forms and final disposition of the form.
evaluating existing
– Approval signatures.
ones: – Dates of approval and final disposition.
• General considerations
– A dollar or numeric total.
• Introductory sectionindicate
• Clearly of form the distribution of
• Main body ofeach
formform.
• Conclusion section of form

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 78 of 171
PHYSICAL SYSTEMS DESIGN

• Designing Computer Screens


– It is more efficient to enter data directly into
the computer than to record it on paper for
subsequent entry.
– Therefore, it’s important to design computer
screens for input as well as output.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 79 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry
of the data.
• Minimize input by retrieving as much as possible from
the system.
• Example: If the customer number is entered, retrieve his
name/address data from the system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 80 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry of
the data.
– Enter data in the same order it appears on the document.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 81 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry of
the data.
– Enter data in the same order it appears on the document.
– Complete the screen from left to right and top to bottom,
grouping logically related data together.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 82 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry of
the data.
– Enter data in the same order it appears on the document.
– Complete the screen from left to right and top to bottom,
grouping logically related data together.
– Design the screen so users can jump from one data entry
location to another or use a single key to go directly to
screen locations.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 83 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry of
the data.
– Enter data in the same order it appears on the document.
– Complete the screen from left to right and top to bottom,
grouping logically related data together.
– Design the screen so users can jump from one data entry
location to another or use a single key to go directly to screen
locations.
– Make it easy to correct mistakes.
• Use clear and explicit error messages that are consistent
on all screens.
• Provide a help feature for online assistance.
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 84 of 171
PHYSICAL SYSTEMS DESIGN
• Computer screens are most effective when the following
principles are used:
– Organize the screen for quick, accurate, and complete entry of
the data.
– Enter data in the same order it appears on the document.
– Complete the screen from left to right and top to bottom,
grouping logically related data together.
– Design the screen so users can jump from one data entry
location to another or use a single key to go directly to screen
locations.
• Limit the number of menu options on a single screen.
– Make it easy to correct mistakes.
– Avoid clutter by restricting the amount of data on one
screen.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 85 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 86 of 171
PHYSICAL SYSTEMS DESIGN

• Program Design
– Program development is one of the most time-
consuming activities in the SDLC.
– A structured programming process should be
followed:
• With structured programming, programs should be
subdivided into small, well-defined modules to reduce
complexity and enhance reliability and modifiability.
• Modules should interact with a control module rather than
with each other.
• To facilitate testing and modification, each module should
have only one entry and exit point.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 87 of 171
PHYSICAL SYSTEMS DESIGN

• To improve software quality, organizations


should develop programming standards (rules
for writing programs).
– Contributes to consistency among programs.
– Makes them easier to read and maintain.
• Consider doing structured program walk-
throughs to find incorrect logic, errors,
omissions, or other problems.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 88 of 171
PHYSICAL SYSTEMS DESIGN

• Program preparation time may range from a few


days to a few years, depending on complexity.
• Though accountants need not be programmers,
they should understand how software is created.
• The following slides discuss the eight steps for
developing software and where these steps take
place in the SDLC.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 89 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP ONE: Determine user
needs.
Conceptual – Occurs during the systems analysis
Design stage of the SDLC.

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 90 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP TWO: Develop and
document a plan.
Conceptual – Occurs during the conceptual design
Design phase and the beginning of physical
design.
Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 91 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP THREE: Write the program
code.
Conceptual – Design in increasing levels of detail,
Design known as hierarchical program
design.
Physical – Begun during systems design and
Design
completed during systems
Implementation
implementation.
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 92 of 171
PHYSICAL SYSTEMS DESIGN
Systems • STEP FOUR: Test the program code.
Analysis
– Debugging is discovering and
Conceptual
eliminating program errors.
Design – Desk checking happens after a
program is coded and involves a
Physical visual and mental review to discover
Design programming errors.
– Programs are tested for logic errors
Implementation
And using test data that simulates both
Conversion valid transactions and all possible
Operation
error conditions.
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 93 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
– Large programs are often tested
in three stages:
Conceptual • Individual program modules.
Design
• The linkages between the module
and the control module.
Physical
Design • The interfaces between the
program being tested and other
Implementation application programs.
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 94 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
– Errors need to be found as soon
as possible in the development
Conceptual process.
Design
– Errors discovered late cost 80-
Physical
1000% more to fix than those
Design found early.
Implementation
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 95 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP FIVE: Document the
program.
Conceptual – Documentation explains how
Design
programs work and helps
Physical
correct and resolve errors.
Design – Includes flowcharts, record
Implementation
layouts, E-R diagrams, REA
And data models, narrative
Conversion
descriptions of the system, etc.,
Operation
And
organized in a manual.
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 96 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP SIX: Train program users.
– Often uses the program
Conceptual documentation.
Design

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 97 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP SEVEN: Install the system.
- All components are brought
Conceptual together, and the company
Design
begins to use the system.
Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 98 of 171
PHYSICAL SYSTEMS DESIGN
Systems
Analysis
• STEP EIGHT: Use and
modify the system.
Conceptual – Program maintenance is a
Design
response to any factors that
require program revision.
Physical
Design – Includes requests for:
• New or revised reports.
Implementation • Changes in input, file content, or
And
Conversion values such as tax rates.
• Error detection and correction.
Operation
And • Conversion to new hardware.
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 99 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 100 of 171
PHYSICAL SYSTEMS DESIGN
• Procedures Design
– Individuals who interact with a newly-designed
AIS need procedures to cover:
• Input preparation
• Transaction processing
• Error detection and correction
• Controls
• Reconciliation of balances
• Database access
• Output preparation and distribution
• Computer operator instructions

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 101 of 171
PHYSICAL SYSTEMS DESIGN

• Procedures may take the form of:


– System manuals
– User instruction classes
– Training materials
– Online help screens

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 102 of 171
PHYSICAL SYSTEMS DESIGN

• The procedures may be written by:


– Development teams;
– Users; or
– Teams representing both groups.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 103 of 171
Systems
Analysis

Conceptual
Systems
Design

Proce-
Output File & DB Input Program Controls
dures
Design Design Design Design Design
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 104 of 171
PHYSICAL SYSTEMS DESIGN

• Controls Design
– Improperly controlled input, processing, and
database functions produce information of
questionable value.
– Controls must be built into an AIS to ensure
its effectiveness, efficiency, and accuracy.
These controls should:
• Minimize errors
• Detect and correct errors when they do occur
– Accountants play a vital role in this area.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 105 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity • Are all interactions valid?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 106 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
• Are input, processing, storage, and
output activities authorized by the
appropriate managers?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 107 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
– Accuracy • Is input verified to ensure accuracy?
• What controls ensure that data is not
lost when passing between processing
activities?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 108 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
– Accuracy
– Security
• Is the system protected against:
– Unauthorized physical and logical access to prevent
improper use, alteration, destruction, or disclosure of
information and software?
– Theft of system resources?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 109 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
– Accuracy
– Security
– Numerical control
• Are documents pre-numbered to prevent errors or
intentional misuse and to detect when documents are
missing or stolen?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 110 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
– Accuracy
– Security
– Numerical control
– Availability
• Is the system available as set forth in agreements?
• Can users enter, update, and retrieve data during those
times?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 111 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
• Can the system be modified without affecting system
– Authorization
availability, security, and integrity?
– Accuracy
• Are only authorized, tested, and documented changes
– made to the system and data?
Security
• Are resources available to manage, schedule, document,
– Numerical control changes to management and
and communicate
– Availability
authorized users?
– Maintainability

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 112 of 171
PHYSICAL SYSTEMS DESIGN

• Important control concerns that must be


addressed include:
– Validity
– Authorization
– Accuracy
– Security
• Is processing complete, accurate, timely, and
– Numerical control
authorized?
– Availability• Is it free from unauthorized or inadvertent
– manipulations?
Maintainability
– Integrity

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 113 of 171
PHYSICAL SYSTEMS DESIGN
• Important control concerns that must be
addressed include:
– Validity
– Authorization
– Accuracy
– Security
– Numerical control
– Availability
– • Can data be traced from source to output and vice
Maintainability
versa?
– Integrity
– Audit trail

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 114 of 171
PHYSICAL SYSTEMS DESIGN

• Physical Systems Design Report


– At the end of the physical design phase, a
physical systems design report is prepared,
summarizing what was accomplished.
– This report serves as the basis for
management’s decision whether to proceed to
implementation.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 115 of 171
PHYSICAL SYSTEMS DESIGN

• Physical Systems Design Report


– At the end of the physical design phase, a
physical systems design report is prepared,
summarizing what was accomplished.
– This report serves as the basis for
management’s decision whether to proceed to
implementation.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 116 of 171
INTRODUCTION

• The crucial phases of the SDLC include:


– Systems analysis to define the new systems
requirements (discussed in Chapter 18).
– The phases discussed in this chapter, which
include:
• Conceptual systems design
• Physical systems design
• Systems implementation and conversion
• Operation and maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 117 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• SYSTEMS IMPLEMENTATION
– Systems implementation is the process of
installing hardware and software and
getting the AIS up and running.
– Phases include:
• Developing a plan
• Preparing the site
• Installing and testing hardware and software
• Selecting and training personnel
• Completing documentation
• Testing the system

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 118 of 171
Systems
Analysis

Conceptual
Systems
System Design
Implementation
And Physical
Conversion Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 119 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 120 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Implementation Planning
– An implementation plan consists of:
• Implementation tasks
• Expected completion dates
• Cost estimates
• Specification of the person(s) responsible for each task
– The plan specifies when the project should be
complete and operational.
– The implementation team should identify risk
factors that decrease the likelihood of successful
implementation, and the plan should contain a
strategy for coping with each of the risks.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 121 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• AIS changes may require adjustments to the
company’s organizational structure,
including:
– Creation of new departments.
– Elimination or downsizing of existing
departments.
– Changes even in the data processing department.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 122 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 123 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Site Preparation
– A large computer may require changes such as:
• New electrical outlets
• Data communications facilities
• Raised floors
• Humidity controls
• Special lighting
• Air-conditioning
• Security measures, such as:
– Fire protection
– Emergency power supply
• Space for equipment, storage, and offices

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 124 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Site preparation is a lengthy process and
should begin well ahead of the installation
date.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 125 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 126 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Select and Train Personnel
– Employees can be hired from outside or
transferred internally.
• Hiring within is usually more effective and less
costly, because the employees already understand
the business.
• Transferring displaced employees can enhance
loyalty and morale.
– Companies take training shortcuts because:
• Effective training is time-consuming and
expensive.
• Those who understand the system are maintaining
and upgrading it.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 127 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• When training is insufficient, the company will not
achieve the expected return on investment.
• The hidden cost is that users will turn to their
coworkers who have mastered the system for help.
Results in:
– Less productive coworkers
– Increased costs
• Effective training includes:
– Hardware and software skills
– Orientation to new policies and operations
• The training should be scheduled just before
systems testing and conversion.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 128 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Types of training include:
– Technical training from vendors
– Self-study manuals
– Computer-aided instruction
– Videotape presentations
– Role-playing
– Case studies
– Experimenting with the AIS under the guidance of
experienced users

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 129 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 130 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three types of documentation must be
prepared for new systems:
– Development documentation
• Describes the AIS and includes:
– A system description
– Copies of output, input, file, and database layouts
– Program flowcharts
– Test results
– User acceptance forms

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 131 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three types of documentation must be
prepared for new systems:
– Development documentation
– Operations documentation

• Includes:
– Operating schedules
– Files and databases accessed
– Equipment, security, and file retention requirements

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 132 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three types of documentation must be
prepared for new systems:
– Development documentation
– Operations documentation
– User documentation
• Teaches users how to operate the AIS.
• Includes a procedures manual and training materials.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 133 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 134 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Test the System
– Inadequate system testing has contributed to the
failure of systems.
– All of the following should be given a trial run in
realistic circumstances.
• Documents and reports
• User input
• Operating and control procedures
• Processing procedures
• Computer programs
– Should also test:
• Capacity limits
• Backup and recovery procedures

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 135 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three common forms of testing include:
– Walk-throughs
• Step-by-step reviews of procedures or program logic.
– Attended by the development team and users early in system
design.
– Focus is on organization:
• Input
• Files
• Outputs
• Data flows
– Subsequent walk-throughs are attended by programmers.
• Address logical and structural aspects of program code.
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 136 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three common forms of testing include:
– Walk-throughs
– Processing test transactions
• Determines whether the program operates as
designed.
• Requires both valid and erroneous data.
• The correct response for each test should be
specified in advance.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 137 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three common forms of testing include:
– Walk-throughs
– Processing test transactions
– Acceptance tests
• Uses copies of real transactions and files
rather than hypothetical ones.
– Users develop acceptance criteria.
– Then make final decision whether to accept

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 138 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Three common forms of testing include:
– Walk-throughs
– Processing test transactions
– Acceptance tests
• Even software purchased from an
outside vendor must be tested
thoroughly before installation.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 139 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Systems
Design

Prepare site;
Complete
Install & test
documentation
hardware
Implementation Conversion
Planning
Select & Train Test
Personnel system

Operation
And
Maintenance
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 140 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Systems Conversion
– Conversion is the process of changing from the old
AIS to the new.
– Many elements must be converted, including:
• Hardware
• Software
• Data files
• Procedures
– The process is complete when the new AIS has
become a routine, ongoing part of the system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 141 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Conversion Approaches
– Four conversion approaches are used to
change from an old to a new system:
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 142 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Conversion Approaches
– Four conversion approaches are used to
change from an old to a new system:
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 143 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Direct conversion
– Immediately terminates the old AIS when the
new one is introduced.
– Appropriate when:
• The old AIS has no value; or
• The new AIS is so different that comparisons
between the two are meaningless.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 144 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Main advantage to direct conversion:
– It’s inexpensive
• Main disadvantage:
– It provides no backup AIS.
• There is a high risk of failure unless the
new system has been very carefully
developed and tested.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 145 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Conversion Approaches
– Four conversion approaches are used to
change from an old to a new system:
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 146 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Parallel conversion
– Operates the old and new systems
simultaneously for a period of time.
– You can process transactions with both
systems, compare output, reconcile
differences, and make corrections to the new
AIS.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 147 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Main advantage to parallel conversion:
– It protects the company from errors.
• Main disadvantage:
– It is costly and stressful for employees to process all
transactions twice.
• Because companies often experience problems
during conversion, parallel processing has
gained widespread popularity.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 148 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Conversion Approaches
– Four conversion approaches are used to
change from an old to a new system:
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 149 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Phase-in conversion
– Gradually replaces elements of the old AIS with the
new one.
– The new system is often phased in a module at a
time.
– Main Advantage:
• Data processing resources can be acquired over time.
– Disadvantages:
• Costs of creating temporary interfaces between old and new
AIS.
• Time required to make the complete conversion.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 150 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Conversion Approaches
– Four conversion approaches are used to
change from an old to a new system:
• Direct conversion
• Parallel conversion
• Phase-in conversion
• Pilot conversion

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 151 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Pilot conversion
– Implements a system in just one part of the
organization, e.g., a branch office or a single store.
– When problems with the system are resolved, the
new system could be implemented at the remaining
locations.
– Advantages:
• Localizes conversion problems and allows training in a live
environment.
– Disadvantages:
• Long conversion time.
• Need for interfaces between old and new systems.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 152 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Data Conversion
– Data conversion can be time-consuming,
tedious, and expense.
– The difficulty and magnitude is easy to
underestimate.
– Data files may need to be modified in three
ways:
• Files may be moved to a different storage medium
(e.g., tape to disk).
• Data content may be changed (e.g., fields added
or deleted).
• A file or database format may be changed.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 153 of 171
SYSTEMS IMPLEMENTATION AND
CONVERSION
• Steps in the data conversion process:
– Decide which data files need to be converted.
– Check files for completeness and data inaccuracies,
and remove any inconsistencies.
– Do the actual data conversion.
– Validate the new files to ensure data were not lost
during conversion.
– If the file conversion is lengthy, update the new files
with transactions that occurred during data
conversion.
– After conversion and testing, monitor the system to
make sure it runs smoothly and accurately.
– Document the conversion activities.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 154 of 171
Systems
Analysis

Conceptual
Systems
Design

Physical
Design

Implementation
And
Conversion

Operation
And
Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 155 of 171
OPERATIONS AND MAINTENANCE

• The last step in the SDLC is to operate


and maintain the new system.
• A post-implementation review should be
conducted to ensure the new AIS meets
its planned objectives.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 156 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
• Does the system help the organization meet its goals,
objectives, and overall mission?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 157 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
• Are users satisfied?
• Do they want changes or improvements?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 158 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
– Benefits • Were the expected benefits achieved?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 159 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
– Benefits
– Costs • Are actual costs in line with expected costs?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 160 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
– Benefits
– Costs
– Reliability
• Has the system failed, and if so, why?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 161 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
– Benefits
– Costs
– Reliability
– Accuracy
• Does the system produce accurate and complete
data?
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 162 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Goals and objectives
– Satisfaction
– Benefits
– Costs
– Reliability
– Accuracy• Does the system produce timely information?

– Timeliness
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 163 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
• Are hardware, software, data, and procedures
compatible with existing systems?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 164 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
• Are there safeguards against unintentional errors,
fraud, and intrusion?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 165 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
– Errors
• Are there adequate error-handling procedures?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 166 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
– Errors
– Training
• Are systems personnel and users adequately
trained?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 167 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
– Errors
– Training
– Communications
• Is the communications system adequate?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 168 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
– Errors
• Are structural changes that resulted from the system
– Training
beneficial or harmful?
• If harmful, how can they be resolved?
– Communications
– Organization changes

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 169 of 171
OPERATIONS AND MAINTENANCE

• Factors and questions include:


– Compatibility
– Controls and security
– Errors
– Training
– Communications
– Organization changes
• Is documentation complete and accurate?

– Documentation
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 170 of 171
OPERATIONS AND MAINTENANCE

• Any problems discovered during the review


should be brought to management’s attention,
and adjustments should be made.
• When the review is complete, a post-
implementation review report is prepared.
• User acceptance of that report is the final
activity in systems development.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 171 of 171
OPERATIONS AND MAINTENANCE

• Control of the AIS is then passed to the data


processing department.
• But the work is not done.
– About 30% of the work takes place during
development.
– The remaining 70% is spent in maintaining the
system—particularly with respect to software
modifications and updates.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 172 of 171
SUMMARY AND CONCLUSIONS
• You’ve learned in more depth about the activities
that take place in the conceptual design phase of
the systems development life cycle (SDLC).
• You’ve also learned about activities that take
place in the physical systems design phase.
• You’ve explored what happens during the systems
implementation and conversion process.
• Finally, you’ve learned about the activities in the
last phase of the systems development life cycle—
the systems operation and maintenance process.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart 173 of 171

You might also like