Tutorial 11

Lecture points from lecture 10:

• Systems Development and System Analysis

TQ 11.1 (Problem 22.1, pages 740 of Romney 15th GE)

1. systems analysis	a. Process of deciding how to meet user needs, identifying and evaluating design alternatives, and developing detailed system specifications
2. conceptual design	b.Describes a system's contents; how it's developed, by whom, and when; and how needed resources will be acquired
3. physical design	c.Description of a system's document flow, computer processes and people performing them, and equipment used
4. implementation and conversion	d. Resisting change by destroying, crippling, or weakening system effectiveness such as increased error rates or sabotage
5. IS steering committee	e. Bar graph that shows project activities on the left, units of time on the top, and activity time requirements as a horizontal bar
6. systems analysts	f.Resisting change by ignoring a new IS and hoping the new system will go away
7. master plan	g. Document showing project requirements, a cost-benefit analysis, and how a project will be completed
8. PERT diagram	h. High-level management that plans and oversees the IS function, sets policies to govern the AIS, ensures control, and coordinates activities
9. critical path	i.Calculation of the number of years required for the net savings of an investment to equal its initial cost
10. Gantt chart	j.Calculating the interest rate that makes the present value of total costs equal to the present value of total savings
11. feasibility study	k. System description that focuses on activities performed and information flow regardless of how the flow is accomplished
12. economic feasibility	l. People who help users determine their information needs, study existing systems, and design new ones
13. technical feasibility	m. SDLC step of gathering information needed to purchase, develop, or modify a system
14. operational feasibility	n. PERT path requiring the greatest amount of time to complete a project; if any activity is delayed, the whole project is delayed
15.payback period	o.Way to coordinate, control, and schedule systems development activities; a diagram shows the relationships among activities
16.NPV	p. Determining if system benefits justify the time, money, and resources required to implement it
17.IRR	q. Return-on-investment technique that compares estimated benefits and costs to determine if a system is cost beneficial
18.aggression	r.Detailed specifications are used to code and test software, design input/output, and create files/databases, and implement controls
19.avoidance	s. Process in which procedures are tested and modified, controls are established, documentation is completed, and employees are trained on a new system
20.initial investigation	t. Determining if a company needs the people to design, implement, and operate the proposed system and if employees will use it
21.systems survey	u.Determining if a proposed system can be developed given the available technology
22.logical model	v. Preliminary investigation to determine whether a proposed new system is both needed and feasible
	w. Extensive study of the current AIS
	x. Resisting change by blaming everything on the new system so it becomes the scapegoat for all problems and errors
	y. Investigation to determine if it is practical to develop a new application or system
	z. Discounting estimated future cash flows back to the present using a discount rate that reflects the time value of money

TQ 11.2 (Problem 22.8, pages 745 of Romney 15th GE)

Businesses often modify or replace their financial information system to keep pace with their growth and take advantage of improved IT. This requires a substantial time and resource commitment. When an organization changes its AIS, a systems analysis takes place.

Adapted from the CMA exam

a. Explain the purpose and reasons for surveying an organization's existing system.

b. Explain the activities commonly performed during systems analysis.

• Initial Investigation
• Systems Survey
• Feasibility Study
• Information Needs and System Requirements
• Systems Analysis Report