1

Systems Implementation

and Operation

Learning Objectives

• To enumerate the goals, plans, tasks, and results of systems implementation.

• To recognize how accountants take part in systems implementation.

• To describe the interdependent tasks that must be accomplished during systems implementation.

• To assess the importance of thoroughly testing the new or revised system prior to putting the system into operation.

SystemsImplementation

andOperation

Learning Objectives• To enumerate the goals, plans,

tasks, and results of systems operation.

• To recognize how accountants are involved in systems operation.

• To illustrate the dual functions of post-implementation review, which are to determine the effectiveness and efficiency of the new or revised system and to assess the quality of the development process.

• To analyze the difficulties associated with systems maintenance.

SystemsImplementation

andOperation

4

Focus of this Chapter

• Systems implementation:– Includes completing the design of the new or

revised system and beginning to use that system.

• Post implementation review:– Assesses the adequacy of the new system

compared to the user’s requirements and the quality of the acquisition/development process.

• Systems maintenance:– Involves making repairs and modifications to the

system.

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Introduction to Systems Implementation

• Systems implementation reflects a set of procedures performed to complete the design contained in the approved systems design document and to test, install, and begin to use the new or revised information system.

• The systems implementation goals are as follows:1. Complete, as necessary, the design contained in the approved

systems design document. 2. Write, test, and document the programs and procedures required

by the approved systems design document.3. Ensure, by completing the preparation of user manuals and other

documentation and by educating and training personnel, that the organization’s personnel can operate the new system.

4. Determine, by thoroughly testing the system with users, that the system satisfies the users’ requirements.

5. Ensure a correct conversion by planning, controlling, and conducting an orderly installation of the new system.

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The Systems Development

Life Cycle

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Approaches to Implementation

• Parallel approach.

• Direct approach.

• Modular approach.

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Parallel Approach

• Both the old and new systems operate together for a time.

• Management later makes a decision, based on the comparison of the two systems’ outputs, whether to terminate the operation of the old system.

• The parallel approach provides a high level of control because the old system is not abandoned until users are satisfied that the new system adequately replaces the old.

• It is expensive to keep two systems running simultaneously.

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Direct Approach• The riskiest of the three approaches.• The old system is turned off, the new system is turned on.• Also referred to as the big bang or cold turkey approach. • Enterprise systems are often implemented using this

approach. • Can lead to disaster if not carefully planned and executed. • Can be less costly than the parallel approach—if all goes

well.• In large implementations, such as enterprise systems, it is

often capacity and/or cost prohibitive to take the parallel approach.

• The direct approach forces users to learn the new system,• The new system can get up and running very quickly. • Can lead to increased user satisfaction with the new system

as compared to the old system.

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Modular Approach• The modular approach, can be combined with the

parallel or the direct approaches to tailor the implementation to the circumstances.

• The new system is either implemented one module at a time or is introduced one organizational unit at a time.

• Also referred to as the phased approach.• Permits pilot testing of a system or system

component and elimination of any problems discovered before full implementation.

• Can combine the safety and control of a parallel implementation with the cost/time savings of a direct approach.

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Implementation Approaches

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The Accountant’s Involvementin Systems Implementation

• Analyst.

• Consultant.

• User.

• Member of the implementation team.

• Internal auditor/IT auditor.

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The Systems Implementation Deliverable:The Project Completion Report

• The project completion report usually includes the following items:1. Summary of requirements satisfied by the new system.2. Estimated and actual duration of each development stage.3. Estimated and actual systems performance (e.g., response time,

costs, benefits).4. System documentation, which provides an overview of the new

system.5. Program documentation, which includes source code and other

related items.6. User manual, which describes operating procedures for both

manual and automated procedures.7. Operations run manual, which contains operating instructions for

computer operations.8. System test report.9. User training programs and manuals.10.Operator training programs and manuals.

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Triggering Systems Implementation

• Approved configuration plan, developed during the systems selection step.

• Approved systems design document, produced in the structured systems design step of systems development.

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Intermediate Steps in Systems Implementation

• Complete the design.• Acquire hardware and software.• Write, test, debug, and document computer

programs.• Select train and educate personnel.• Complete user manual.• Test the system.• Obtain approvals.• Conduct conversion.

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Systems Implementation

Tasks and Documents

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Complete the Design1. Input and output reports, documents and computer screens:

• Appendix S4 provides guidelines for the design of effective system components, including reports, documents, and computer screens.

2. Database layout: • Logical view of each database record. • Indicates the field (i.e., attribute) names and lengths. • The database administrator (DBA) uses this layout to map the logical

record into storage. • The DBA must decide where and how to store each data element.

3. Specifications for manual and automated processes: • The specifications for each computer program module must be

adequate for the writing of the computer program code. • The manual procedures must contain sufficient detail to allow for the

writing of the procedures manuals.

– These specifications are required whether we purchase or develop a new system.

– Acquired systems must be configured to provide user functionality.

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Acquire Hardware and Software

• Acquire hardware and software:– Contract negotiation for lease, rental, or purchase.– Contract negotiation for hardware and software

service, such as a systems integrator, a service bureau, or an application service provider.

• Prepare site:– Electrical power, power protection, air

conditioning, security, physical structure of the computer room, and access to that room.

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Write, Test, Debug, and Document Computer Programs

• The programmer develops a test plan, which outlines how each program module will be tested.– The user, the programmer, and another member of the

programming team do a “walkthrough” of the module specifications and the test plan to determine that the latter is adequate; then the programmer codes the program.

• Debugging: The programmer tests the individual module and removes any errors found during testing.

• Programmer completes the program documentation. – Maintenance programmers will use this documentation to make

program changes, correct errors in the programs, and add enhancements to the programs.

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Select, Train, and Educate Personnel

• Choose the personnel who will operate the new system.– Train them to perform their system-related duties.

• System’s users must be educated about the new system’s purpose, function, and capabilities.

• Training may be given through a combination of schools run by software vendors, hardware vendors, vendors specializing in training, and programs conducted by the organization itself.

• Computer-assisted learning, such as interactive tutorials, might also be used.

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Complete User Manual

• A user manual should describe operating procedures for both manual and automated systems functions.

• The systems designer, the user, and possibly the organization’s technical writing and training staff should cooperate in preparing the user manual.

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Test the System• Beyond testing program modules, the entire system is tested to

determine that it meets the requirements and that it can be used and operated to the satisfaction of both users and system operators.– Testing is carried out by the systems developers, by the developers and

the users together, and finally by the users. • Each test consists of the following steps:

1. Specify test conditions.2. Review test conditions (i.e., walkthrough).3. Create test data.4. Execute tests.5. Evaluate results.

• Several types or levels of tests are usually completed before a system can be implemented. From the users’ point of view, three of these tests are the most important. 1. The system test verifies the new system against the original

specifications. 2. The acceptance test is a user-directed test of the complete system in a

test environment.3. the operations test or environmental test runs a subset of the system in

the actual production environment.

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Obtain Approvals

• The project completion report is approved by:– Users.– IT.– Management.– IT Auditors.

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Conduct Conversion

• Conversion includes:– Conversion of data. – Conversion of processes (i.e., the

programs).– Completing the documentation.

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Systems Operation

• Post implementation review.

• Systems maintenance.

• Periodic systems survey.

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Post Implementation Review• Examination of the information system, conducted soon after

implementation.• Should be brief and inexpensive.• Goals of a post implementation review.

1. Determine user satisfaction with the new system.2. Identify degree of correspondence between system performance

requirements and achieved performance.3. Evaluate quality of new system’s documentation, training, and data

conversions.4. Review performance of new system and, if necessary, recommend

improvements.5. Ascertain that the organization’s project management framework and

SDLC were followed during development.6. Recommend improvements to systems development standards manual if

necessary.7. Review cost projections and benefit estimations and determining the

degree to which these were achieved.8. Perfect project-planning procedures by examining total project costs and

the project team’s ability to adhere to project cost estimates and schedules.

9. Make any other recommendations that might improve the operation of the system or the development of other information systems.

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Post Implementation Review Report

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Systems Maintenance

• Systems maintenance is the modification (e.g., repair, correction, or enhancement) of existing applications.

• Systems maintenance expenditures can account for 50 to 70 percent of the total cost of a system over its total life cycle.

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Types of Maintenance Activities

1. Corrective maintenance must be performed to fix errors.

2. Perfective maintenance is conducted to improve the performance of an application.

3. Adaptive maintenance adjusts applications to reflect changing business needs and environmental challenges.

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Systems Maintenance Goals

1. Accomplish system changes quickly and efficiently.2. Prevent system changes from causing other system problems.3. Make system changes that are in the organization’s overall best

interest.4. Perfect systems development and systems maintenance

procedures by collecting and using information about system changes.

5. Supplant systems maintenance with the systems survey if requested changes are significant or if they would destroy the system (i.e., would be the straw that broke the camel’s back).

6. Minimize control exposure and organizational disruption that can be caused by systems maintenance.

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Maintenance Completion Report

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Appendix S4: Report, Document, and Screen Layout

• Forms—documents used to capture data—should meet the following criteria:

• Be easy to complete and use.• Minimize the errors that can be made in

completing a form and keying from a completed form.

• Minimize cost.• Not contain too much data or be too sparse

or too busy.

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Report, Document, and Screen Layout

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Report, Document, and Screen Layout

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Report, Document, and Screen Layout

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Report, Document, and Screen Layout