CHAPTER 13
MANAGING THE SYSTEMS
DEVELOPMENT LIFE CYCLE
1. REVIEW QUESTIONS
1. Systems Strategy. The first step in the SDLC is to develop a systems strategy,
which requires an understanding the strategic business needs of the organization.
Project Initiation. Project initiation is the process by which systems proposals
are assessed for consistency with the strategic systems plan and evaluated in
In-House Development. As mentioned earlier, some organizations have such
unique information needs that they can only be adequately met through internal
Commercial Packages. When the nature of the project and the needs of the
Maintenance and Support. Maintenance involves both acquiring and
implementing the latest software versions of commercial packages and making
in-house modifications to existing systems to accommodate changing user
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2. The balanced scorecard (BSC) is a management system that enables
organizations to clarify their vision and strategy and translate them into action. It
3. Accountants are involved in the SDLC since information systems represent a
significant financial transaction which consumes both financial and human
resources. The accountants are concerned with these projects since they have
4. Learning and growth constitute the essential foundation for success of any
5. Users tend to become discouraged when they discover the amount of time they
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6. The SDLC is a step-by-step procedure. Frequently the necessity arises to go back to
a previous stage if the requirements or constraints change during the process. Thus,
7. One of the reasons for conducting a review of the current system is to identify
elements of the legacy system that should be retained. When implementing an ERP
system, the entire business process is typically reengineered. The object is to
8. Congruent objectives should exist between the individual systems projects and the
9. The composition of the steering committee may include the following: the chief
executive officer, the chief financial officer, the chief information officer, senior
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10. Metrics based on this perspective allow the manager to know how well their
11. Reactive management responds to problems only when they reach a crisis state and
can no longer be ignored. This method is the “putting out fires” type of management.
Resources and time are spent solving crises, and this detracts from efforts to
12. The strategic objectives of the firm should lead to the identification of information
needs. These broad strategic objectives are used to develop functional objectives for
13. Ensuring acceptance among the user community is vital, and the manner in which
the project is announced can dramatically affect the reception of the project. The
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14. One feasibility measure is technical feasibility, which is an assessment as to whether
the system can be developed under existing technology or if new technology is
needed. An example might be a situation where a firm wants to completely automate
the sales process. A question would be: Is technology available that allows sales to
be made without humans? Another feasibility measure is economic feasibility, which
15. Data sources, users, data stores, processes, data flows, controls, transaction
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17. An advantage of studying the current system is that it provides a way to identify what
aspects of the old system are positive and should be kept. Further, the tasks,
procedures and data of the old system need to be understood so that the phase-in of
the new system can handle any changes. Also, a survey of the current system may
18. The primary objective is to reach consensus between users and systems
19. The conceptual design phase should be general; however, it should possess
20. The accountant must be aware that each alternative system must be adequately
controlled, that audit trails must be preserved, and that accounting conventions and
21. The project manager, a member of the internal audit staff, a user representative, and
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22. The benefits of information systems are oftentimes very difficult to assess. Many
times the benefits are intangible, such as improved decision making capabilities.
23. a. training personnel—one-time
b. initial programming and testing—one-time
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24. Escapable costs are directly related to the system, and they cease to exist when the
system ceases to exist. An example would be annual software support fee for
purchased software. If the system ceases to exist, the support for the software will
25. Tangible benefits can be measured and expressed in financial terms, while
26. A formal document that consists of a revised feasibility study, a cost-benefit analysis,
27. The net present value method requires a schedule of cash outflows and cash inflows
over the life of the project. These cash flows are discounted to their present values.
The payback method compares cash outflows with cash inflows to determine at what
28. The accountant should ensure that:
