Accounting Information Systems: John Wiley & Sons, Inc

Core Concepts of
ACCOUNTING INFORMATION SYSTEMS

Moscove, Simkin & Bagranoff
Developed by:
S. Bhattacharya, Ph.D.
Florida Atlantic University
John Wiley & Sons, Inc.

Chapter 13
Systems Study: Implementation,
Follow-up and Maintenance
• Introduction
• Systems Implementation
• Systems Follow Up and Maintenance
• Outsourcing
Systems Implementation
• 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.
What can go wrong during
implementation?
• The new system is not fully developed or tested,

but is installed anyway.
• The organization fails to budget sufficient time,
money, and related resources to the installation
tasks of the project.
• Complete system and application documentation is
lacking, causing confusion and misunderstandings.
• Users are forced to use the system without
adequate training.
What can go wrong during
implementation?
• The implementation team fails to test the new
system, which turns out to have major “bugs” in it.
• After the initial installation is completed, the
organization fails to evaluate the system’s
performance, especially against the original
objectives.
• The organization fails to allocate sufficient
resources for system maintenance. Over time, the
system deteriorates and becomes ineffective.
Implementation Activities
• 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.
• 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.
• 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.
• Three methods for testing computer software are:
– Unit testing – individual programs of a system are each tested
as separate components.
– Process testing - hypothetical test transactions and
hypothetical file records are developed that represent all valid
processing and all conceivable errors.
– Acceptance test - test transactions and acceptance criteria in
processing these transactions with a computer program are
developed by system’s users.
• 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.
Program Evaluation and
Review Technique (PERT)
• PERT (Program Evaluation and Review
Technique) is a technique for scheduling and
monitoring the activities in large projects.
• Project leader
– prepares a list of system implementation activities
– identifies the prerequisite activities that must be
completed before others can start
– and estimates the amount of time required to
complete each activity.
PERT Charts
• The longest path of completion of a project

is the critical path.
• The slack time describes the amount of
delay time that can occur in each noncritical
activity and still not delay the entire project.
Gantt Charts
• A Gantt Chart is useful in scheduling and tracking

activities required in implementation.
• Gantt charts are straightforward, easy to understand,
and best suited for projects that are not highly
complex.
• The Gantt chart is good for
comparing planned to actual times
for the implementation activities
that must be performed.
Systems Follow-up and
Maintenance
• 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
Steps in Evaluation of System’s
Effectiveness
• Talk to management and end users to ascertain satisfaction
with the new system.
• Determine that controls are functioning properly.
• Observe employees’ work performance.
• Evaluate whether computer processing functions
are being performed efficiently and
effectively.
• Determine whether output schedules
for reports are being met.
The Follow-up Review Report
• A post-implementation review report summarizes

the implementation team’s findings.
• If the team is satisfied that the new system is
working satisfactorily, no further revisions are
required.
• If follow-up studies reveal that problems still exist
in the new system, the team will communicate
these findings to the steering committee.
Systems Maintenance
• Systems maintenance continues the tasks created

by the initial follow-up study, except that experts
from the company’s IT subsystem now perform the
modifications exclusively.
• Most systems costs involve
maintenance.
• Therefore, smart systems teams try
to develop or acquire flexible systems.
Outsourcing
• Under outsourcing, a company needing data

processing services hires an outside
organization to handle all or part its data
processing services.
• The degree to which a company
outsources may range from routine
assistance with a single application
to running the entire IT department.
Advantages of Outsourcing
• Attractive Business Solution

• Effective Use of Assets
• Lower Costs
• Avoid Seasonal Fluctuations
• Facilitates Downsizing
Disadvantages of Outsourcing
• It could be difficult for a company to break its

contract, resulting in inflexibility.
• The company may lose control of
its information system and be exposed
to possible abuse.
• Over the long run, a company may
lose sight of its information needs
and how the system can provide it with
competitive advantage.
Copyright
Copyright 2005 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may
make backup copies for his/her own use only and not for distribution
or resale. The Publisher assumes no responsibility for errors,
omissions, or damages, caused by the use of these programs or from
the use of the information contained herein.
Chapter 13

Accounting Information Systems: John Wiley & Sons, Inc

Uploaded by

Copyright:

Available Formats

Accounting Information Systems: John Wiley & Sons, Inc

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting Information Systems: John Wiley & Sons, Inc

Uploaded by

Copyright:

Available Formats

Core Concepts of

ACCOUNTING INFORMATION SYSTEMS

John Wiley & Sons, Inc.

• Systems Implementation is often called the

• The new system is not fully developed or tested,

• Prepare the Physical Site - accountants are concerned

• Train Personnel - computer vendor personnel and

• Convert Data Files - data files may have to

• Test Computer Software - programs must be tested

• Conversion - there are several conversion methods:

• The longest path of completion of a project

• A Gantt Chart is useful in scheduling and tracking

• The purpose of follow-up and maintenance

• A post-implementation review report summarizes

• Systems maintenance continues the tasks created

• Under outsourcing, a company needing data

• Attractive Business Solution

• It could be difficult for a company to break its

You might also like