University of Phoenix

ACC/546 MSBE0N5J91

Discussion Questions

1)Comment on the following statement: The maintenance stage of the SDLC involves making trivial changes to accommodate changes in user needs.”

2. Discuss how rushing the system’s requirements stage may delay or even result in the failure of a systems development process. Conversely, discuss how spending too long in this stage may result in “analysis paralysis.”

3. Is a good strategic plan detail­oriented?

4. Distinguish between a problem and a symptom. Give an example. Are these usually noticed by upper­, middle­, or lower­level managers?

5. What purposes does the systems project proposal serve? How are these evaluated and prioritized? Is the prioritizing process objective or subjective?

6. Most firms underestimate the cost and time requirements of the SDLC by as much as 50 percent. Why do you think this occurs? In what stages do you think the underestimates are

most dramatic?

7. A lack of support by top management has led to the downfall of many new systems projects during the implementation phase. Why do you think management support is so important?

8. Many new systems projects grossly underestimate transaction volumes simply because they do not take into account how the new, improved system can actually increase demand. Explain how this can happen, and give an example.

9. Compare and contrast the structured design approach and the object­oriented approach. Which do you believe is most beneficial? Why?

10. Do you think legal feasibility is an issue for a system that incorporates the use of

machines to sell lottery tickets?

11. Intangible benefits are usually extremely difficult to quantify accurately. Some designers argue that if you understate them, then conservative estimates are produced. Any excess benefits will be greatly welcomed but not required for the new system to be a success. What are the dangers of this viewpoint?

12. If a firm decides early on to go with a special­purpose system, such as SAP, based on the recommendations of the external audit firm, should the SDLC be bypassed?

13. During a test data procedure, why should the developers bother testing “bad” data?

14. If the system is behind schedule and if each program module is tested and no problems are found, is it necessary to test all modules in conjunction with one another? Why or why not?

15. Run manuals for computer operators are similar in theory to the checklists that airplane pilots use for takeoffs and landings. Explain why these are important.

16. Who conducts the post­implementation review? When should it be conducted? If an outside consulting firm were hired to design and implement the new system, or a canned software package were purchased, would a post­implementation review still be useful?

17. Discuss the importance of involving accountants in the detailed design and implementation phases. What tasks should they perform?

18. Discuss the independence issue when audit firms also provide consulting input into the development and selection of new systems.

19. Discuss the various feasibility measures that should be considered. Give an example of each.

20. Discuss three benefits associated with modular programming.

Problems

1. Systems Planning

A new systems development project is being planned for the Reindeer Christmas Supplies Company. The invoicing, cash receipts, and accounts payable modules are all going to be updated. The controller, Kris K. Ringle, is a little anxious about this project. The last systems development project that affected his department was not very successful, and the employees in the accounting department did not accept the new system very well at first. He feels that the systems personnel did not interact sufficiently with the users of the systems in the accounting department. Prepare a memo from Ringle to the head of the information systems department, Sandy Klaus. In this memo, provide some suggestions for including the accounting personnel in the systems development project. Give some very persuasive arguments why prototyping would be helpful to the workers in the accounting department.

2. Problem Identifications

The need for a new information system may be manifest in various symptoms. In the early stages of a problem, these symptoms seem innocuous and go unrecognized. As the underlying source of the problem grows in severity, so do its symptoms, until they are alarmingly apparent. Classify each of the following as a problem or a symptom. If it is a symptom, give two examples of a possible underlying problem. If it is a problem, give two examples of a possible symptom, which may be detected.

1. 1. declining profits
   2. defective production processes
   3. low­quality raw materials
   4. shortfall in cash balance
   5. declining market share
   6. shortage of employees in the accounts payable department
   7. shortage of raw material due to a drought in the market
   8. inadequately trained workers
   1. decreasing customer satisfaction

3. Systems Development and Implementation

Kruger Designs hired a consulting firm three months ago to redesign the information system used by the architects. The architects will be able to use state­of­the­art CAD programs to help in designing the products. Further, they will be able to store these designs on a network server where they and other architects may be able to call them back up for future designs with similar components. The consulting firm has been instructed to develop the system without disrupting the architects. In fact, top management believes that the best route is to develop the system and then to “introduce” it to the architects during a training session.

Management does not want the architects to spend precious billable hours guessing about the new system or putting work off until the new system is working. Thus, the consultants are operating in a back room under a shroud of secrecy.

Required:

1. 1. Do you think that management is taking the best course of action for the announcement of the new system? Why?
   2. Do you approve of the development process? Why?

4. Systems Analysis

Consider the following dialogue between a systems professional, Joe Pugh, and a manager of a department targeted for a new information system, Lars Meyer:

Pugh: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers perform their tasks. Then we can determine which aspects are working well and which should be preserved.

Meyer: We have been through these types of projects before and what always ends up happening is that we do not get the new system we are promised; we get a modified version of the old system.

Pugh: Well, I can assure you that will not happen this time. We just want a thorough understanding of what is working well and what is not.

Meyer: I would feel much more comfortable if we first started with a list of our requirements. We should spend some time up­front determining exactly what we want the system to do for my department. Then you systems people can come in and determine what portions to salvage if you wish. Just don’t constrain us to the old system!

Required:

1. 1. Obviously, these two workers have different views on how the systems analysis phase should be conducted. Comment on whose position you sympathize with the most.
   2. What method would you propose they take? Why?

5. Systems Design

Robin Alper, a manager of the credit collections department for ACME Building Supplies, is extremely unhappy with a new system that was installed three months ago. Her complaint is that the data flows from the billing and accounts receivable departments are not occurring in the manner originally requested. Further, the updates to the database files are not occurring as frequently as she had envisioned. Thus, the hope that the new system would provide more current and timely information has not materialized. She claims that the systems analysts spent three days interviewing her and other workers. During that time, she and the other workers thought they had clearly conveyed their needs. She feels as if their needs were ignored and their time was wasted.

Required:

What went wrong during the systems design process? What suggestions would you make for future projects?

6. Conceptual Design

Prepare two alternative conceptual designs for both an accounts payable system and an accounts receivable system. Discuss the differences in concept between the two designs. From a cost perspective, which is more economical? From a benefits perspective, which is more desirable?

Which design would you prefer and why?

7. Systems Design

Robert Hamilton was hired six months ago as the controller of a small oil and gas exploration and development company, Gusher, Inc., headquartered in Beaumont, Texas. Before working at Gusher, Hamilton was the controller of a larger petroleum company, Eureka Oil Company, based in Dallas. The joint interest billing and fixed asset accounting systems of Gusher are outdated, and many processing problems and errors have been occurring quite frequently. Hamilton immediately recognized these problems and informed the president, Mr. Barton, that it was crucial to install a new system. Barton concurred and met with Hamilton and Sally Jeffries, the information systems senior manager. Barton instructed Jeffries to make the new system that Hamilton wished to have a top priority in her department. Basically, he told Jeffries to deliver the system to meet Hamilton’s needs as soon as possible.

Jeffries left the meeting feeling overwhelmed because the IS department is currently working on two other very big projects, one for the production department and the other for the geological department. The next day, Hamilton sent a memo to Jeffries indicating the name of a system he had 100 percent confidence in—Amarillo Software—and he also indicated that he would very much like this system to be purchased as soon as possible. He stated that the system had been used with much success during the past four years in his previous job.

When commercial software is purchased, Jeffries typically sends out requests for proposals to at least six different vendors after conducting a careful analysis of the needed requirements.

However, due to the air of urgency demonstrated in the meeting with the president and the over­ worked systems staff, she decided to go along with Hamilton’s wishes and sent only one RFP (request for proposal) out, which went to Amarillo Software. Amarillo promptly returned the completed questionnaire. The purchase price ($75,000) was within the budgeted amount. Jeffries contacted the four references provided and was satisfied with their comments. Further, she felt comfortable since the system was for Hamilton, and he had used the system for four years.

The plan was to install the system during the month of July and try it for the August transaction cycle. Problems were encountered, however, during the installation phase. The system processed extremely slowly on the hardware platform owned by Gusher. When Jeffries asked Hamilton how the problem had been dealt with at Eureka, he replied that he did not remember having had such a problem. He called the systems manager from Eureka and discovered that Eureka had a much more powerful mainframe than Gusher. Further investigation revealed that Gusher has more applications running on its mainframe than Eureka did, since Eureka used a two­mainframe distributed processing platform.

Further, the data transfer did not go smoothly. A few data elements being stored in the system were not available as an option in the Amarillo system. Jeffries found that the staff at Amarillo was very friendly when she called, but they could not always identify the problem over the phone. They really needed to come out to the site and investigate. Hamilton was surprised at the delays between requesting an Amarillo consultant to come out and the time in which he or she actually arrived. Amarillo explained that it had to fly a staff member from Dallas to Beaumont for each trip. The system finally began to work somewhat smoothly in January, after a grueling fiscal year­end close in October. Hamilton’s staff viewed the project as an unnecessary inconvenience. At one point, two staff accountants threatened to quit. The extra consulting fees amounted to

$35,000. Further, the systems department at Gusher spent 500 more hours during the implementation process than it had expected. These additional hours caused other projects to fall behind schedule.

Required:

Discuss what could have been done differently during the design phase. Why were most of the problems encountered? How might a detailed feasibility study have helped?

8. Programming Languages

Describe the basic features of the following three types of programming languages: procedural, event­driven, and object oriented. Give examples of each type of language.

9. Program Testing

When program modules have been coded and tested, they must be brought together and tested as a whole. Comment on the importance of testing the entire system.

10. Database Conversion

What is database conversion? Why is it a risky activity, and what precautions should be taken?

11. System Cutover

Discuss three common approaches to system cutover. Comment on the advantages and disadvantages of each approach.

12. Audit of Systems Development

The Balcar Company’s auditors are developing an audit plan to review the company’s systems development procedures. Their audit objectives are to ensure that

1. The system was judged necessary and justified at various checkpoints throughout the SDLC.
2. Systems development activities are applied consistently and in accordance with management’s policies to all systems development projects.
3. The system as originally implemented was free from material errors and fraud.
4. System documentation is sufficiently accurate and complete to facilitate audit and maintenance activities.

The following six controllable activities have been identified as sources of audit evidence for meeting these objectives: systems authorization, user specification, technical design, internal audit participation, program testing, and user testing and acceptance.