Acquiring Information

Systems and Applications

October 2022

1
Case Study

2
Case Study (Cont.)

3
What is DevOps team?

• https://www.youtube.com/watch?v=mBBgRdlC4sc

4
Activity 1:
• Share experience with your
friends about this application

• 10 Persons/Group → Select
one mobile application that
you use a lot and discuss what
you like and don’t like about
that application

5
Why do we need to acquire or change IT
systems?
• Changes in user or • Productivity gains
business needs
• Systems integration
• Technology changes
• Systems age and need to
• Improved business be replaced
processes

• Competitive advantage
6
Can we do all IT projects?

Limited Resources Costs and Benefits

7
How to Create IT Plan

Credit to:
https://palungjit.org/members/%E0%B8%99%E0%B8%B1%E0%B9%88%E0%B8%87%E0%B9%80%E0%B8%97%E0%B8%B5%E0%B8%A2%E0%B8%99.348455/
http://fanscihorstory.blogspot.com/2017/05/blog-post.html 8
How to Create IT Plan
• Start with an analysis of the organization strategic plan

• Organization strategic plan identifies:

• Firm’s overall mission

• Goals that follow from that mission

• Broad steps required to reach these goals

9
How to Create IT Plan (Cont.)
We got
organization
strategic plan
already. Let
start.

10
How to Create IT Plan (Cont.)
• What information do we need to create IT plan?

• Only business objectives ????

• Why do we need IT architecture?

• IT architecture delineates the way an organization should utilize its information

resources to accomplish its mission.

• There are 2 aspects

• Technical aspects → Hardware, operating systems, network, data management systems, and
application software
• Managerial aspects → how the IT dept. will be managed, how the functional area mangers
will be involved, and how IT decisions will be made.

11
How to Create IT Plan (Cont.)
• IT strategic plan is a set of long-range goals that describe the IT
infrastructure and identify the major IT initiatives need to achieve the
organization’s goals.

• Must be aligned with the organization’s strategic plan → must support the
organization’s strategies

• Must provide for an IT architecture that seamlessly networks users, application and
databases

• Must efficiently allocate IS development resources among competing projects so that

the projects can be completed on time and within budget and still have the required
functionality

12
How to Create IT Plan (Cont.)
Should answer these questions:
1. Why are doing this project?
2. How does it address key business issues?
3. How much will it cost and how long will it take?
4. What is the return on investment and payback
period?
5. What are the risks of doing the project?
6. What are the risks of not doing the project?
7. What are the alternatives?
8. How will success be measured?
13
What is IT steering committee?
• Consists of a group of managers and staff who represent the various
organizational units

• Created to establish IT priorities and to ensure that the MIS function is

meeting the organization’s needs

• Major task
• Link corporate strategy to IT strategy
• Approve the allocation of resources for the MIS function
• To establish performance measures for the MIS function and ensure they are met

14
Constraints of IT Projects

Scope

Quality

Cost Time

15
Evaluating and Justifying IT Investment

Assessing the cost Assessing the benefit Conduction the Cost-

Benefit Analysis

16
Evaluating and Justifying
IT Investment (Cont.)

Credit to: https://myrecruitmentplus.com/blog/total-cost-ownership-hr-budget/

17
Evaluating and Justifying IT Investment(Cont.)

Is it true?

Credit to: https://myrecruitmentplus.com/blog/total-cost-ownership-hr-budget/

18
Activity 2:
• Your group has to set up a new fine dining restaurant. Please provide
name, location, and type of food

• Setup the company’s objectives (5 objectives) and identify strategies

• Assumption
• The company doesn’t have IT system at all
• You got 20 MB for set up the restaurant and necessary IT Systems

• Present it to your friends

19
Activity 2 (Cont.)
Business Objectives Business Strategies
1.xxxx 1. xxx
2.
3.
2.
3.
4.
5.

20
Activity 3
• Identify which strategies need IT systems/ IT application to support

21
Activity 3 (Cont.)
Business Objectives Business Strategies Need IT
(Y/N)
1.xxxx 1.1. xxx

1.2. Xxxx
1.3. xxx
2. xxxx 2.1 xxx
3. xxxxx 3.1 xxx

22
Activity 4
• Identify IT Strategies

23
How to Acquire IT Applications
• Need to make a decision first

• How much computer code does the company want to write?

• How will the company pay for the application?

• Where will the application run?

• Where will the application originate?

• Co-location

24
How to Create IT Plan (Cont.)
Are you going to
develop your
own
application?

25
How to Acquire IT Applications (Cont.)
• Purchase software package without customizations

• Purchase software package with some customizations

• Lease Application
• Lease only application and run it on company’s platform
• Lease application and run it on vendor’s platform
• Application service providers
• Software-as-a –Service Vendors

26
Operation of an application service provider.
Operation of a software-as-a-service vendor.
Advantages and Limitations of the Purchase
Option
Advantages Disadvantages
Many different types of off-the-shelf software are available. Software may not exactly meet the company’s needs.
The company can try out the software before purchasing it. Software may be difficult or impossible to modify, or it may require huge
business process changes
The company can save much time by buying rather than building.
to implement.
The company can know what it is getting before it invests in the
The company will not have control over software improvements and new
product.
versions.
Purchased software may eliminate the need to hire personnel
Purchased software can be difficult to integrate with existing systems.
specifically dedicated to a project.
Vendors may discontinue a product or go out of business.
Software is controlled by another company with its own priorities and
business considerations.
The purchasing company lacks intimate knowledge about how and why the
software functions as it does.

29
How to Acquire IT Applications (Cont.)
• In-house Development

• Outsource Development

30
Systems Development Life Cycle (SDLC)
System Analysis

Operations & Conceptual

Maintenance Design

Implementation
Physical Design
& Conversion

31
 Business Need

Operation and System

Maintenance Investigation

Systems
Development
Life Cycle Implementation System Analysis

Programing and
System Design
Testing

32
A seven-stage systems development life cycle
Business Need

Operation & System

Maintenance Investigation

Systems • Deliverables: G0/No Go Decision

Investigation
Systems • Deliverables: User Requirements
Analysis
Implementation System Analysis
• Deliverables: Technical
System Design Specifications

Programming &
System Design
Testing
People Interacting in SDLC
• Management
• Accountants
• Users
• Information systems steering committee
• Project development team
• Systems analysts and programmers

34
System Investigation
• Addresses the business problems/ opportunity by means of the
feasibility study

• Spend more time on

• Understanding business problem to be solved
• Specifying the technical options for the systems
• Anticipating the problems they are likely to encounter during development

35
Feasibility Analysis
• Does it make sense to proceed with new system?
• Economic:
• Will system benefits justify the time, money, and resources required to implement
it?
• Technical:
• Can the system be developed and implemented using existing technology?
• Legal:
• Does the system comply with all applicable federal and state laws, administrative
agency regulations, and contractual obligations?
• Scheduling
• Can the system be developed and implemented in the time allotted?
• Operational
• Does the organization have access to people who can design, implement, and
operate the proposed system? Will people use the system?

36
System Investigation
• What decision do we have to make?

• Do Nothing

• Modify or Enhance Existing Systems

• Develop a new system

• After the feasibility analysis is completed, a “go/ no go” decision is

reached by IT steering committee.
37
System Analysis
• Process whereby system analysts examine the business problem that
the organization plans to solve with an information system.

• The primary purpose = to gather information about the existing

system to determine the requirements for an enhanced system or a
new system.

• End product = User Requirements

38
Basic Business Process
• Revenue cycle: give goods / give service—get cash
• Expenditure cycle: get goods / get service—give cash
• Production cycle: give labor and give raw materials—get finished
goods
• Payroll cycle: give cash—get labor
• Financing cycle: give cash—get cash

39
Business Processes
• Revenue Cycle

• Expenditure Cycle

• Production Cycle

• Payroll Cycle

• Financing Cycle
40
 Revenue Cycle

Source: Accounting Information Systems 12th Edition– Romney & Steindart

41
 Expenditure Cycle

Source: Accounting Information Systems 12th Edition– Romney & Steindart

42
 Production Cycle – Central Kitchen (For
Restaurant)

Source: Accounting Information Systems 12th Edition– Romney & Steindart

43
Business Processes

Think about business processes

for Revenue Cycle &
Expenditure Cycle for your
business

44
Activity 5: Revenue Cycle Process
• ….
• ….
• ….
• ….
• ….
• ….
• ….
• ….

45
Activity 6: Expenditure Cycle Process
• ….
• ….
• ….
• ….
• ….
• ….
• ….
• ….

46
Business Processes

Think about your requirements

47
Activity 7: What are your requirements?
• ….
• ….
• ….
• ….
• ….
• ….
• ….
• ….

48
System Design
• Describes how the system will resolve the business problems.

• Deliverable = Set of Technical System specifications

• System outputs, inputs, and user interfaces
• Hardware, software, databases, telecommunications, personnel, and procedures
• A blueprint of how these components are integrated

• After approved by all participants, the system specification are “freeze”.

• What is scope creep???? → Changing scope → Affect schedule & budget.

49
Design Input & Output

Think about input screen &

output screen & report ……
start designing and presenting

50
Activity 8: Based on your requirements, ….
• Create Input Screen

• Create output screen

• Create report that you want

• Presenting to your friend

51
Programming and Testing
• Programming
• Translating the design specifications into computer code

• Testing
• The process that assesses whether the computer code will produce the
expected and desired result.
• Also, intended to detect errors, or bugs, in the computer code.

52
Programming and Testing (Cont.)
• What tests have been done?
• Unit Test
• Integration Test
• System Test
• Stress Test
• Security Test
• User Acceptance Test
• Penetration Testing
• Vulnerabilities testing

53
Implementation
• Process of converting from an old computer system to a new one

• Direct Conversion / Cut off

• Pilot Conversion

• Phased Conversion

• Parallel conversion

54
Operation and Maintenance
• Debugging

• Updating

• Adding

55
System Failure Due to Change
• The best system will fail without the support of the people it serves.
• Why people resist change:
• Fear
• Lack of top management support
• Lack of communication
• Disruptive nature of change
• Methods of instituting change
• Biases and emotions
• Personal characteristics and background

56
Preventing Resistance
• Obtain management support
• Meet user needs
• Involve users
• Stress new opportunities
• Avoid being too emotional
• Provide user training
• Reexamine performance evaluation to make sure they are aligned
with new system
• Keep communication lines open
• Control users expectations
57
References
• Introduction to Information Systems, R.Kelly Rainer & Brad Prince, 8th
edition

• Accounting Information Systems, Simkin, Worrel, & Savage, 14th

edition

• Accounting Information Systems, Richardson, Chang, Smith, 2nd

edition

• Accounting Information Systems, Romney et. Al., 15th edition

58