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AIS Development Strategies
Rahat
131-116-051
BBA 29th
Metropolitan University, Sylhet
Writing this assignment appeared to be a great experience to us. It added a
lot to our knowledge. This assignment is one of our memorable experiences in
student life. Though words are inadequate in offering thanks to our teacher
Mr. Rafiqul Islam
Developing an accounting
information system is all about
acquiring a new information
system and then improving the
development process. So we can
state the AIS development
strategies in two phases as:-
(a) Obtaining a new information
system
(b) Improving the development
process
# Phase 1: Obtaining a new
information system
A new information system can
be obtained by:-
a. Purchasing prewritten
software; or
b. Developing software in-
house; or
c. Outsourcing.
(a) Purchasing prewritten software
Prewritten software means commercially available software
package. It includes:-
Canned software
Software which are sold to open market, has wide range of user
with similar requirements.
example: SAP, Quick Books, Great plains etc.
Turnkey systems
Some companies sell hardware and software together as a
package. These systems are called turnkey systems. Here the
“Vendor” install the entire system
example: Microsoft SQL
Continues………….
Application Service Providers(ASPs)
Web-based software delivered over the Internet. It means “Rent”
rather than buy the software. Can reduce costs, and allow
companies to focus on core competencies, not software.
example: Turbo Tax
System Development Life Cycle(SDLC)
SDLC is a conceptual model used in project management that
describes the stages involved in an information system development
project. Companies which usually buys software they can use SDLC
process. Which includes the following:- requirement analysis, design,
implementation, testing, evolution
SDLC process
• Analysis
• Design
• Implementation
• Testing
• Evolution
 initial investigation, systems
survey, and feasibility study,
as well as determining AIS
requirements
SDLC process
• Analysis
• Design
• Implementation
• Testing
• Evolution
• An important aspect is
determining whether software
that meets AIS requirements is
already available.
SDLC process
• Analysis
• Design
• Implementation
• Testing
• Evolution
• convert systems, install
and test hardware and
software, select and
train personnel, and
document the new
system
SDLC process
• Analysis
• Design
• Implementation
• Testing
• Evolution
Testing is used to evaluate the
effectiveness of the system.
SDLC process
• Analysis
• Design
• Implementation
• Testing
• Evolution
to ensure that the system
continues to perform according
to specifications.
Selecting a ‘Vendor’
A vendor is the party in the supply
chain that makes goods and services
available to companies or consumers.
Mainly vendor selected to know:
# Is the software applicable to your
business?
# How long will it meet your needs?
# Will the vendor be around?
Finding a vendor: Look in phone book,
Obtain referrals, Scan computer or
trade magazines, Attend
conferences, Use search
organizations
Systems Acquisition Process
Will package
meet needs?
Develop
software
internally
Send RFP for
hardware,
if necessary
Evaluate
proposal
No
Yes
Investigate
software
packages
Can package
be modified?
Send RFP for
software and
hardware
No
Yes
Select best
combination
(b) Developing software in house
Developing custom software is
difficult, but some companies
prefer this approach particularly
if the company is large, has
unique needs, and believes their
systems provide a competitive
advantage. In house
development of software can be
done by:-
(1) software developed by IS
staff.
(2) software developed by End
users.
End user computing
End-user computing (EUC) is the hands-on
development, use, and control of
computer-based information systems by
users.
End User Development occurs when
information users, such as managers,
accountants, and internal auditors,
develop their own applications using
computer specialists as advisors.
systems
developer
end
user
Benefits & Risks of end user
computing
• Benefits of end-user
computing:
▫ User creation, control, and
implementation
▫ Systems that meet user
needs
▫ Timeliness
▫ Freeing up systems
resources
▫ Versatility and ease of use
• Risks of end-user
computing:
▫ Logic and development
errors
▫ Inadequately tested
applications
▫ Inefficient systems
▫ Poorly controlled and
documented systems
▫ System incompatibilities
▫ Duplication of systems and
data and wasted resources
▫ Increased costs
(c) Outsourcing
Outsourcing is hiring an outside
company to handle all or part of
an organization’s data processing
activities.
▫ In a client/server or a PC
outsourcing agreement the
organization outsources:
 A particular service (e.g.,
help desk services);
 A segment of its business
 A particular function; or
 PC support
Continues…
• In an organization, for
accounting information
system, the range of activities
in outsourcing includes:
▫ Installation
▫ Training
▫ Maintenance
▫ Help desk
▫ Technical support
Benefits & Risks of Outsourcing
• Benefits of
outsourcing:
▫ Provides a business solution
▫ Asset utilization
▫ Access to greater
experience and more
advanced technology
▫ Lower costs
▫ Improved development
time
▫ Elimination of peaks-and-
valleys usage
▫ Facilitation of downsizing
• Risks of outsourcing:
▫ Inflexibility
▫ Loss of control
▫ Reduced competitive
advantage
▫ Locked in system
▫ Unfulfilled goals
▫ Poor service
# Phase 2: Improving the
development process
The development process can
be improved through:-
a. Business process
reengineering; or
b. Prototyping; or
c. CASE.
(a) Business process re-engineering
Business Process Re-Engineering is
the fundamental rethinking and
Radical redesign of Business
Processes to achieve Dramatic
improvements in the critical
measures of Performance such as
Cost, Quality, Service, Efficiency
and Speed.
Business process re-engineering
principles
• Michael Hammer has set several principles that help
organizations successfully reengineer business processes:
- Organize around outcomes, not tasks.
- Require those who use the output to perform the process.
- Require those who produce information to process it.
- Centralize AND disperse data.
- Integrate parallel activities.
- Empower workers, use built-in controls, and flatten the
organization chart.
- Capture data once—at its source.
Challenges Faced by Reengineering
Efforts:
▫ Many BPR efforts fail or fall short of
their objectives. A company must
overcome the following obstacles:
 Tradition
 Resistance
 Time and cost requirements
 Lack of management support
 Skepticism
 Retraining
(b) Prototyping
• Prototyping is an approach to
systems development in which
simplified working model
of system developed
• Prototype (“first draft”)
quickly and inexpensively
built
• Provided to users for testing
and training
Why prototyping?
When anyone working with
new system ideas with their
users, they don’t want to go
through the cost of developing
a gigantic system which might
take years; they’ll build a
mock-up of it, which might
take weeks
When to use prototyping
▫ It is appropriate when:
 Users don’t fully understand their needs,
or the needs change rapidly
 System requirements are difficult to
define
 System inputs and outputs are not known
 The task to be performed is unstructured
or semi-structured
 Designers are uncertain about what
technology to use
Continues…
 The users’ reactions to the new system are important
development considerations
 Many design strategies must be tested
 The design staff has little experience developing this type of
system or application
 The system will be used infrequently so that processing
efficiency is not crucial
 The system is crucial and needed quickly
 The risk of developing the wrong system is high
Advantages & Disadvantages of
prototyping
• Advantages of
Prototyping:
▫ Better definition of user
needs
▫ Higher user involvement
and satisfaction
▫ Faster development time
▫ Fewer errors
▫ More opportunity for
changes
▫ Less costly
• Disadvantages of
Prototyping:
▫ Significant user time
▫ Less efficient use of system
resources
▫ Incomplete system
development
▫ Inadequately tested and
documented systems
▫ Negative behavioral
reactions
(c) Computer Aided Software
Engineering (CASE)
Computer-aided software (or systems)
engineering (CASE) tools are an
integrated package of computer-based
tools that automate important aspects of
the software development process.
▫ Used to plan, analyze, design, program,
and maintain an information system.
▫ Also used to enhance efforts of
managers, users, and programmers in
understanding information needs.
(c) Computer Aided Software
Engineering (CASE)
• CASE tools do not replace skilled
designers, but provide developers with
effective support for all SDLC phases.
• CASE software typically includes tools for:
▫ Strategic planning
▫ Project and system management
▫ Database design
▫ Screen and report layout
▫ Automatic code generation
Advantages & Disadvantages of CASE
• Advantages of CASE
technology:
▫ Increased productivity
▫ Improved program quality
▫ Cost savings
▫ Improved control
procedures
▫ Simplified documentation
• Problems with CASE
technology:
▫ Incompatibility
▫ Cost
▫ Unmet expectations
Ais development strategy

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Ais development strategy

  • 3. Writing this assignment appeared to be a great experience to us. It added a lot to our knowledge. This assignment is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher Mr. Rafiqul Islam
  • 4. Developing an accounting information system is all about acquiring a new information system and then improving the development process. So we can state the AIS development strategies in two phases as:- (a) Obtaining a new information system (b) Improving the development process
  • 5. # Phase 1: Obtaining a new information system A new information system can be obtained by:- a. Purchasing prewritten software; or b. Developing software in- house; or c. Outsourcing.
  • 6. (a) Purchasing prewritten software Prewritten software means commercially available software package. It includes:- Canned software Software which are sold to open market, has wide range of user with similar requirements. example: SAP, Quick Books, Great plains etc. Turnkey systems Some companies sell hardware and software together as a package. These systems are called turnkey systems. Here the “Vendor” install the entire system example: Microsoft SQL
  • 7. Continues…………. Application Service Providers(ASPs) Web-based software delivered over the Internet. It means “Rent” rather than buy the software. Can reduce costs, and allow companies to focus on core competencies, not software. example: Turbo Tax System Development Life Cycle(SDLC) SDLC is a conceptual model used in project management that describes the stages involved in an information system development project. Companies which usually buys software they can use SDLC process. Which includes the following:- requirement analysis, design, implementation, testing, evolution
  • 8. SDLC process • Analysis • Design • Implementation • Testing • Evolution  initial investigation, systems survey, and feasibility study, as well as determining AIS requirements
  • 9. SDLC process • Analysis • Design • Implementation • Testing • Evolution • An important aspect is determining whether software that meets AIS requirements is already available.
  • 10. SDLC process • Analysis • Design • Implementation • Testing • Evolution • convert systems, install and test hardware and software, select and train personnel, and document the new system
  • 11. SDLC process • Analysis • Design • Implementation • Testing • Evolution Testing is used to evaluate the effectiveness of the system.
  • 12. SDLC process • Analysis • Design • Implementation • Testing • Evolution to ensure that the system continues to perform according to specifications.
  • 13. Selecting a ‘Vendor’ A vendor is the party in the supply chain that makes goods and services available to companies or consumers. Mainly vendor selected to know: # Is the software applicable to your business? # How long will it meet your needs? # Will the vendor be around? Finding a vendor: Look in phone book, Obtain referrals, Scan computer or trade magazines, Attend conferences, Use search organizations
  • 14. Systems Acquisition Process Will package meet needs? Develop software internally Send RFP for hardware, if necessary Evaluate proposal No Yes Investigate software packages Can package be modified? Send RFP for software and hardware No Yes Select best combination
  • 15. (b) Developing software in house Developing custom software is difficult, but some companies prefer this approach particularly if the company is large, has unique needs, and believes their systems provide a competitive advantage. In house development of software can be done by:- (1) software developed by IS staff. (2) software developed by End users.
  • 16. End user computing End-user computing (EUC) is the hands-on development, use, and control of computer-based information systems by users. End User Development occurs when information users, such as managers, accountants, and internal auditors, develop their own applications using computer specialists as advisors. systems developer end user
  • 17. Benefits & Risks of end user computing • Benefits of end-user computing: ▫ User creation, control, and implementation ▫ Systems that meet user needs ▫ Timeliness ▫ Freeing up systems resources ▫ Versatility and ease of use • Risks of end-user computing: ▫ Logic and development errors ▫ Inadequately tested applications ▫ Inefficient systems ▫ Poorly controlled and documented systems ▫ System incompatibilities ▫ Duplication of systems and data and wasted resources ▫ Increased costs
  • 18. (c) Outsourcing Outsourcing is hiring an outside company to handle all or part of an organization’s data processing activities. ▫ In a client/server or a PC outsourcing agreement the organization outsources:  A particular service (e.g., help desk services);  A segment of its business  A particular function; or  PC support
  • 19. Continues… • In an organization, for accounting information system, the range of activities in outsourcing includes: ▫ Installation ▫ Training ▫ Maintenance ▫ Help desk ▫ Technical support
  • 20. Benefits & Risks of Outsourcing • Benefits of outsourcing: ▫ Provides a business solution ▫ Asset utilization ▫ Access to greater experience and more advanced technology ▫ Lower costs ▫ Improved development time ▫ Elimination of peaks-and- valleys usage ▫ Facilitation of downsizing • Risks of outsourcing: ▫ Inflexibility ▫ Loss of control ▫ Reduced competitive advantage ▫ Locked in system ▫ Unfulfilled goals ▫ Poor service
  • 21. # Phase 2: Improving the development process The development process can be improved through:- a. Business process reengineering; or b. Prototyping; or c. CASE.
  • 22. (a) Business process re-engineering Business Process Re-Engineering is the fundamental rethinking and Radical redesign of Business Processes to achieve Dramatic improvements in the critical measures of Performance such as Cost, Quality, Service, Efficiency and Speed.
  • 23. Business process re-engineering principles • Michael Hammer has set several principles that help organizations successfully reengineer business processes: - Organize around outcomes, not tasks. - Require those who use the output to perform the process. - Require those who produce information to process it. - Centralize AND disperse data. - Integrate parallel activities. - Empower workers, use built-in controls, and flatten the organization chart. - Capture data once—at its source.
  • 24. Challenges Faced by Reengineering Efforts: ▫ Many BPR efforts fail or fall short of their objectives. A company must overcome the following obstacles:  Tradition  Resistance  Time and cost requirements  Lack of management support  Skepticism  Retraining
  • 25. (b) Prototyping • Prototyping is an approach to systems development in which simplified working model of system developed • Prototype (“first draft”) quickly and inexpensively built • Provided to users for testing and training
  • 26. Why prototyping? When anyone working with new system ideas with their users, they don’t want to go through the cost of developing a gigantic system which might take years; they’ll build a mock-up of it, which might take weeks
  • 27. When to use prototyping ▫ It is appropriate when:  Users don’t fully understand their needs, or the needs change rapidly  System requirements are difficult to define  System inputs and outputs are not known  The task to be performed is unstructured or semi-structured  Designers are uncertain about what technology to use
  • 28. Continues…  The users’ reactions to the new system are important development considerations  Many design strategies must be tested  The design staff has little experience developing this type of system or application  The system will be used infrequently so that processing efficiency is not crucial  The system is crucial and needed quickly  The risk of developing the wrong system is high
  • 29. Advantages & Disadvantages of prototyping • Advantages of Prototyping: ▫ Better definition of user needs ▫ Higher user involvement and satisfaction ▫ Faster development time ▫ Fewer errors ▫ More opportunity for changes ▫ Less costly • Disadvantages of Prototyping: ▫ Significant user time ▫ Less efficient use of system resources ▫ Incomplete system development ▫ Inadequately tested and documented systems ▫ Negative behavioral reactions
  • 30. (c) Computer Aided Software Engineering (CASE) Computer-aided software (or systems) engineering (CASE) tools are an integrated package of computer-based tools that automate important aspects of the software development process. ▫ Used to plan, analyze, design, program, and maintain an information system. ▫ Also used to enhance efforts of managers, users, and programmers in understanding information needs.
  • 31. (c) Computer Aided Software Engineering (CASE) • CASE tools do not replace skilled designers, but provide developers with effective support for all SDLC phases. • CASE software typically includes tools for: ▫ Strategic planning ▫ Project and system management ▫ Database design ▫ Screen and report layout ▫ Automatic code generation
  • 32. Advantages & Disadvantages of CASE • Advantages of CASE technology: ▫ Increased productivity ▫ Improved program quality ▫ Cost savings ▫ Improved control procedures ▫ Simplified documentation • Problems with CASE technology: ▫ Incompatibility ▫ Cost ▫ Unmet expectations