DISCUSSION QUESTION

INTRODUCTION TO SYSTEMS DEVELOPMENT AND SYSTEMS

ANALYSIS

1. Identify the main reasons why companies change existing systems.

Answer:
• Changes in user needs or business needs due to growth, consolidation, a merger, new
regulations, or changes in regional and global relationships.
• Technological changes due to advances, improvements, and lower costs. Improvement of
business processes to eliminate inefficiency.
• Competitive advantage from increased quality, quantity, and speed of information will
result in an improved product to be sold at a lower price.
• Productivity gains that automate clerical and repetitive tasks and decrease performance
time. Outgrowing old systems requires upgrades or the installation of completely new
systems.
• Downsizing — moving from mainframes to networked PCs to get a better
price/performance ratio.
• Systems age and need to be replaced.

2. The approach to long-range AIS planning described in this chapter is important for
large organizations with extensive investments in computer facilities. Should small
organizations with far fewer information systems employees attempt to implement
planning programs?

Answer:

Yes, companies with few IS employees should attempt to implement planning programs. This
is particularly true if the company or its computer usage is growing. The extent of the
planning should be commensurate with the size of the computer facility, reliance on system
information, and the potential value of the company’s system.

Planning produces benefits even if the planning effort is minimal. In the smallest facility,
the plan may consist simply of a few pages of thoughts and projects that are prepared and
reviewed periodically by the person in charge of the system. It could also consist of a bare
bones cost-benefit analysis.

A smaller company will typically have fewer funds than a large company will. Therefore,
inadequate planning can be more disastrous and financially draining for small companies.
3. Identify the individuals who make up the project development team and describe the
team's purpose.

Answer:

The project development team includes systems specialists, managers, accountants, internal
auditors, and users.

The project development team's duties include planning each project, monitoring it to ensure
timely and cost-effective implementation, properly introducing changes after considering the
human element, and communication with the top management and the steering committee at all
steps in the process.

4. Identify and discuss the role of the groups that influence the development and
implementation of an AIS.

Answer:

• Management — support from management is crucial in successful development and

implementation of an AIS. Any actual or perceived lack of support from management
may cause skepticism and a lack of "buy in" from employees.
• Accountants — determine the user requirements and communicate to system developers;
members of the project development team; design system controls and monitor and test
the system. Accountants can also help in assessing and tracking costs of projects.
• Information systems steering committee — a cross-functional, executive-level team that
champions the project and is responsible for high-level support of the project. Sets
policies that govern AIS systems analysts — study existing systems, design new ones,
and prepare system specifications for computer programmers.
• Systems programmers — write computer programs based on specifications and
requirements created by the system analysts. External players — customers, vendors,
auditors, and regulations from governmental entities influence design of an AIS.

5. Describe the importance of the master plan in systems development.

Answer:

A master plan is a long-range planning document specifying the components of the system,
how the system will be developed, who will do the developing, how resources will be acquired
for development, and the direction the AIS will take into the future.

The document should give a status of projects already in process, prioritize them, describe
criteria for prioritization and provide a timetable for their development. A master plan should
span a time period of three years, and it should be updated at least two to three times each year.
6. You have been approached by the owner of EcoMart, a local general dealer, to give advice
regarding the implementation of an accounting information system. EcoMart currently
uses a manual system to manage everything: from ordering inventory to handling sales.
You are asked to explain the process that will be used to design and implement a new
accounting information system at EcoMart while taking into account that the current
system is a completely manual system.

Here, students need to discuss the five steps in the systems development life cycle (SDLC),
taking into consideration that EcoMart has no existing (automated) processes in place. The
main points to discuss, per step, are as follows:

Systems analysis:

All information required to purchase or develop the system is gathered in the systems
analysis step. Since EcoMart is doing everything manually, there will be no modification of
an existing system. All development requests are screened and prioritized – since this is a
completely new system, developed from scratch, all elements of the system needs to be listed
and prioritized. If EcoMart approves the project, the feasibility of the proposed project should
be determined. If the proposed project is deemed feasible, the information needs of the
system users and management needs to be documented. These needs are used as the basis of
the system requirements. A systems analysis report is prepared and this report is then
submitted for review by the information systems steering committee.

Conceptual design:

In this step, it is important to determine if off-the-shelf software would be appropriate and /

or available; since everything is currently done manually, chances are that EcoMart does not
have in-house expertise to develop the system; if off-the-shelf software is not appropriate, it
is most likely that development will then need to be outsourced. Decisions need to be made
as to what the system should accomplish and how it is to be controlled. Once the conceptual
design requirements have been established it needs to be communicated to the information
system steering committee.

Physical design:

The broad conceptual user-oriented design requirements then gets coded (programmed) and
tested. Input and output documents are designed and files and databases created. Procedures
and controls are built into the system. The results of this phase are communicated to the
information system steering committee.

Implementation and conversion:

An implementation and conversion plan is developed; new hardware and any additional
software are installed and tested. Staff will be trained (and new staff hired, if required) and
processing procedures are tested and modified. System documentation is completed, and all
standards and controls for the new system are established. The old system is removed (often
after a period of running the old and new system in parallel to ensure all is working correctly)
and a post-implementation audit is done to ensure that there are no design deficiencies. If
 any deficiencies are identified, those are corrected. A final report is sent to the information
systems steering committee.

Operations and maintenance:

this is the final phase (which is ongoing) during which the new system is periodically
reviewed and changes made as problems are identified or additional needs become evident.

7. Describe what a Gantt chart is and both its advantage and disadvantage.

Answer:

A Gantt chart is a bar chart with project activities on the left-hand side and units of time
across the top.

For each activity, a bar is drawn from the scheduled starting date to the ending date, thereby
defining expected project completion time. As activities are completed, they are recorded on
the Gantt chart by filling in the bar; thus, at any time it is possible to determine which
activities are on schedule and which are behind.

The primary advantage of the Gantt chart is the ability to show graphically the entire
schedule for a large, complex project, including progress to date and status. A disadvantage
is that the charts do not show the relationships among project activities.

8. Describe economic feasibility analysis. What techniques are used in economic feasibility
analysis?

Answer:

The capital budgeting model is used as the foundation for economic feasibility analysis. In this
model, cost savings and other (even intangible) benefits, as well as initial outlay costs,
operating costs, and other cash outflows are quantified in terms of dollars and cents.

The tangible and intangible benefits include cost savings; improved customer service, overall
increased productivity; improved decision making and data processing; better management
control; and increased job satisfaction and employee morale.

The costs include: software acquisition; design; programming; testing; documentation and
maintenance costs; site preparation; and human resource costs such as hiring, testing, and
relocation.

The capital budgeting model is used as a framework for economic feasibility analysis. The
three techniques that are used are:

a) Payback period: The number of years for the net savings to recover the initial costs of the
investment is calculated. A project with the shortest payback period is preferable under
 this method.

b) Net Present Value (NPV): A discount rate representing the time value of money is used
to discount all future cash flows to the present. The initial outlay costs are deducted from
discounted cash flows to obtain net present value. A positive NPV indicates favorable
economic feasibility.

c) Internal Rate of Return (IRR): IRR is the effective interest rate that results in an NPV of
zero. This effective interest rate is compared with a company's desired rate of return
(sometimes it can be the cost of capital). A project with the highest IRR will be selected
when this method is used for evaluation purposes.

9. Describe the three commonly used capital budgeting techniques.

Answer:

The three commonly used capital budgeting techniques are:

a) Payback period. The payback period is the number of years required for the net savings to
equal the initial cost of the investment. The project with the shortest payback period is
usually selected.

b) Net present value (NPV). All estimated future cash flows are discounted back to the
present, using a discount rate that reflects the time value of money. The initial outlay
costs are deducted from the discounted cash flows to obtain the net present value (NPV).
A positive NPV indicates the alternative is economically feasible. The highest positive
NPV is usually selected.

c) Internal rate of return (IRR). The internal rate of return (IRR) is the effective interest rate
that results in an NPV of zero. A project's IRR is compared with a minimum acceptable
rate to determine acceptance or rejection. The proposal with the highest IRR is usually
selected.

10. What are some of the reasons why behavioral problems occur when a new AIS is
introduced?

Answer:

• Personal characteristics and background of the users involved or impacted by the change.
• The manner in which change is introduced may have greater impact than the actual
change itself.
• Experience with prior changes that went poorly may make employees wary of new
anticipated changes.
• Any lack of top management support may raise an issue of endorsement for such
changes.
• Communication can be a problem when no explanation is given to employees about a
 change.
• Biases and natural resistance to change may occur due to emotional attachments to duties
or coworkers.
• Disruptive nature of the change process can place additional burdens on workers.
• People may have a fear of the unknown and uncertainty about accompanying changes.

11. Describe the physical design stage of the systems development life cycle.

Answer:

The physical design stage of the systems development life cycle (SDLC) is the third of five
stages in the life cycle, coming after the systems analysis and conceptual design stages.

In this stage of the SDLC, input, output, and database attributes are designed, as well as various
controls. Programs and procedures are developed during this stage as well.

A final part of this stage is the delivery of the developed system, which will be further enhanced
during the implementation and conversion stage of the SDLC.

12. Describe guidelines that an organization can follow to prevent behavioral problems
when implementing a system.

Answer:

The human element, which is often the most significant problem a company encounters in
implementing a system, can be improved by observing the following guidelines:

• Obtain management support;

• Involve users;
• Allay fears, and stress new opportunities;
• Avoid emotionalism;
• Provide training;
• Reexamine performance evaluation;
• Keep communication lines open;
• Keep the system simple, and humanize it; and
• Control users' expectations.
13. Describe the four primary objectives of a systems survey conducted during systems
analysis.

Answer:

• Analyze existing operations, policies and procedures, and data and information flow to
gain a thorough understanding of the current system including its strengths and
weaknesses.
• Make a preliminary assessment of current and future processing needs, and determine
both the extent and nature of the changes that are needed.
• Develop relationships with users and build coalitions to gain support for the AIS.
• Collect data that identify user needs, conduct a feasibility analysis, and make
recommendations to the management.

14. Identify and briefly discuss the points at which a “go/no go” decision is made in the
systems analysis process.

Answer:

There are three points at which a "go/no go" decision can be made during systems analysis.
• The first point is during the initial investigation, in which a decision will be made
whether to conduct a systems survey.
• The second point is at the end of the feasibility study, at which point a decision will be
made whether to proceed to the information requirement stage.
• The third (and last) point is at the completion of the analysis phase, which is the point at
which a decision is rendered about whether to proceed to the design phase.

15. Why is it important that systems development is properly planned? Refer to the advantages of
planning systems development in your discussion.

Without proper planning, it is quite likely that the final system will be a system that is poorly
integrated and also difficult to operate and maintain.

The advantages that proper planning can offer includes the following:
• the goals and objectives of the planed information system will support of the organization’s
overall strategic plan. When there is coordination between the organization’s goals and the
information system goals, the systems are more likely to be efficient, since there will be
coordinated subsystems that will be able to work together. When the subsystems are
coordinated, it is much easier to be able to determine when and where new applications are
required. With this coordination, it is also possible to stay ahead of the changes in IT.

• Appropriately planned systems development will reduce the possibility of duplication (since
subsystems are coordinated) and effort will not be wasted on the development of
unnecessary subsystems.
 • Cost and time overruns can be avoided, since, with a coordinated effort, the subsystems will
work together to attain the main goal. Maintenance is less costly and the management will
be prepared for resource needs, as and when required.

• Employees will also be less resistant to change, as they will be part of the planning process
and will be able to understand their role in the bigger picture of all the coordinated
subsystems.

16. For each of the following, discuss which data-gathering method(s) are most appropriate and
why:

a) Examining the adequacy of internal controls in the purchase requisition procedure –

Observation of procedures, interviews with employees, and documentation reviews (of document or
control flowcharts, for example) will all aid in understanding purchase requisition procedures. Each
type of procedure will identify different aspects of the internal controls in the purchasing department.

b) Identifying the controller’s information needs

Interview is one way to determine her information needs. However, managers often don’t know what
information they need; they say they need the information they are now getting and little else.
Therefore, the interviewer/analyst must understand the manager’s function and the role of that
function in the organization. The interviewer should also ask the controller what information she
would like to receive that she is not now receiving. Interviewing is an efficient fact-finding technique
that allows a prepared and informed interviewer to ask “why” or probing questions to better identify
the controller’s needs.

Reviewing the reports that the controller currently receives is also a good way to identify her needs.

c) Determining how cash disbursement procedures are actually performed –

If cash disbursement procedures are documented, a review of that documentation will help
understand how it is supposed to work. The best way to understand how cash disbursement
procedures are actually performed is to interview employees, observe them, and prepare
flowcharts and notes.

d) Surveying employees about the move to a total quality management program –

Through a questionnaire, the opinions of many different employees can be gathered.

Questionnaires also produce information in a standardized format. A questionnaire allows
employees to think about the questions before giving answers and it is more objective than
other data gathering methods. Anonymous questionnaires will encourage employees to give
honest answers.
 e) Investigating an increase in uncollectible accounts

Examination of documents will provide good initial sources of information to investigate the
problem. Documents will show which accounts are uncollectible and help with an
understanding of the company’s collection policies. Interviews will help determine why
uncollectible accounts have increased.

17. One of the main issues to consider during systems development is to determine the feasibility of
the proposed project. Discuss the purpose of a feasibility study and discuss examples of different
types of feasibility that need to be considered.

A feasibility study is an investigation that is used to determine if it would be practical to develop a new
system. A feasibility study is also sometimes referred to as a business case. Input needs to be obtained
from the management, accountants, system staff, and the users of the system.

The following types of feasibility need to be assessed:

• Economic: the questions to answer here is if the benefits that can potentially be gained actually
justify the time, money, and resources required to complete the proposed system.

• Technical: the question to be asked here is if the system can be developed with existing
technology.

• Legal: The question to ask here is if the system actually complies with all laws, regulations,
policies, and contractual obligations.

• Scheduling: The question to ask here is if it would be possible to develop and implement the
system within the time allowed / scheduled.

• Operational: The question here relates to the staffing and employees – does the company have
access to employees with the skills and expertise to design, implement, and operate the system?
Another important question is whether the employees will actually be willing to use the system.

18. Give some examples of systems analysis decisions that involve a trade-off between each of the
following pairs of objectives:
There are many examples of the tradeoffs between information system objectives. One example is
a. economy and usefulness
the decision of how much information to give a credit manager to help in deciding whether to
extend credit versus the cost of providing that information.

b. economy and reliability

the decision of whether to implement a new internal control procedure.

c. economy and customer service

the decision of whether or not to allow sales personnel to access data versus the cost of
providing that information and the cost of the information being used for unintended
purposes.

d. simplicity and usefulness –

 any decision about the extent to which output information should be reported in detail or in
summarized form.

e. simplicity and reliability

any decision about whether or not to implement an internal control procedure.

f. economy and capacity –

the decision of whether to acquire additional storage capacity.
g. economy and flexibility –
the decision to replace older, less flexible storage mediums with newer, more flexible, and
often more costly storage mediums.

19. For each of the following items, discuss which of the four data gathering methods would be
most appropriate and why.

a. Eliciting 300 employees’ opinions on a new incentive program to replace the current bonus
program.

Eliciting opinions from a large population on a potentially emotionally charged topic is

best handled with a questionnaire. You can ask the same questions from a large number
of employees; you will get candid responses, particularly if you respect anonymity; the
questionnaire would be relatively quick and inexpensive to create and analyze
responses.

b. Identifying how the credit approval process for new customers should be conducted and by
whom.

Identifying how a process is supposed to be done is best handled by reviewing

documentation about the process. Flowcharts, data flow diagrams, process diagrams,
job descriptions, organizational charts, and training manuals would all provide
information about the design of the credit approval process.

20. Discuss the strategies often used to determine requirements for a proposed AIS.

Ask users:
the simplest way to start off with is to ask users what they need. However, often users do not
understand what they need as they just know what they have to do every day. Often, users do not
have the ability to break down their daily tasks into the individual information elements they need
to use. When speaking to users, it is often more appropriate to ask some questions, such as: what
decisions do you make, what processes are you involved in? It is also good practice to get the users
to think beyond what they are currently using and doing in order to also identify possible future
needs.

Analyze existing external systems:

it is possible that there are existing systems that could potentially meet the needs of the company –
then it is not necessary to redevelop something that already exists.
 Study existing systems: Sometimes certain parts of an existing system at a company are not used
as intended – in some cases certain parts of a system is not used at all. It might be that the current
system in place might just need some modifications, or it might indicate that the existing system
does in actual fact need to be replaced.

Create prototype: Users can be given a prototyped system and asked to comment on the prototype.
In this way developers can find what users like and what they do not like and changes can be made;
this is an iterative process, so the developer creates a prototype, test it with the users; and then
repeat the process until such time that the user and the developer are in agreement as to what is
required.

21. Ajax Manufacturing installed a new bar code based inventory tracking system in its warehouse.
To close the books each month on a timely basis, the six people who work in the warehouse must
scan each item in a 36-hour period while still performing their normal duties. During certain
months, when inventory expands to meet seasonal demands, the scan takes as many as 30 hours
to complete. In addition, the scanners do not accurately record some inventory items that require
low operating temperatures. A recent audit brought to management’s attention that the
inventory records are not always accurate. Which aspect(s) of feasibility did Ajax fail to consider
prior to installing the inventory tracking system?

Ajax Manufacturing failed to consider operational and technical feasibility when implementing
their inventory tracking system.

Operational feasibility considers whether the organization’s personnel can and/or will use the
system. For Ajax, the 30 hours required to scan all inventory in a 36-hour period was very difficult
on personnel and most likely led to human error in the inventory count due to fatigue.

Technical feasibility deals with whether the technology is in place for the system to work. For
Ajax, although the technology was in place and worked under normal circumstances, the scanners
did not always work in the cold conditions of Ajax’s warehouse. Therefore, the technology
sometimes failed, which resulted in inventory errors.

22. Research has shown that many software development projects are late, others run over budget,
while still others are unsuccessful. There are several reasons for unsuccessful information system
projects, and one of the reasons is project management failure. What is the task of a project
manager in an information systems development team? What are the typical skills required by a
project manager? Discus the major roles or responsibilities a project manager needs to master to
ensure successful project management.

Project managers are the people in charge of the planning of projects – they are also in charge of the
successful execution of the planned projects. A project manager will be the team member that needs
to define the goals of the project. Different teams (internally and externally, where appropriate)
need to be aligned and need to communicate – the project manager needs to oversee that the
different teams are aligned. The project schedule (in terms of timelines and possible dependencies)
needs to be created, and once the project has started, the performance indicators should be tracked.

Project managers often need to wear a variety of hats in the business world, and this leads to a
variety of skills required. A project manager needs to have skills related to:
• budgeting (forecasting as well as management),
 • business strategy development and alignment with development teams (also at strategic level)
• scoping of projects by determining what should be included and what should be excluded.

The roles / responsibilities of project managers can be summarized as follows:

• Taking the lead – a project manager needs to be a leader and part of the leadership skills
include relationship building (as can be seen in the team discussion in one of the other areas).
Leaders often have to manage teamwork, resolve conflict, and be able to adapt in a high-
pressure environment. “Soft skills” are becoming more and more important among the set of
skills required by a project manager.
• Manage the team and their timeline – the team will most likely be a multi-disciplinary team,
with team members having very different perspectives on what needs to be developed.
Relationships between all the members of the team need to be managed. Part of this process is
also to manage the timelines that need to be adhered to so that the project can finish on time
(and within budget!).
• Organizing the team – this is closely related to the first point. A project manager should have
the ability to work with multiple teams and ensure that timelines are adhered to; and that
deliverables are available as was planned. Different team members and different teams often
have to work together to ensure that deliverables are ready by the stipulated deadlines. Project
managers need to streamline all project activities and ensure that the teams are organized.
• Technological skills – although technology cannot replace the knowledge and skills set of the
human mind, project managers need to be able to leverage existing technology. In doing so,
information can readily be shared, data can be synthesized, and all stakeholders can be
informed of updates. In project management software (part of the technology to be leveraged),
issues such as budget management, file sharing, time tracking, and email integration are all
important technologies to be understood and used.
• Performance tracking and measurement – with the requirement to work across teams to identify
key performance indicators, project managers need to utilize appropriate measurement tools to
report on strategic alignment and return on investment. Project managers need to report on what
they find, but they also need to be able to interpret findings and give explanations as to what the
findings mean. Such findings are often what impacts the strategy of a project, and if changes
need to be made based on findings the project manager had reported on, it is easier to motivate
implementation of such changes.

22.6 Joanne Grey, a senior consultant, and David Young, a junior consultant, are conducting a
systems analysis for a client to determine the feasibility of integrating and automating clerical
functions. Joanne had previously worked for the client, but David was a recent hire.

The first morning on the job, Joanne directed David to interview a departmental supervisor
and learn as much as possible about department operations. David introduced himself and
said, “Your company has hired us to study how your department works so we can make
recommendations on how to improve its efficiency and lower its cost. I would like to interview
you to determine what goes on in your department.”

David questioned the supervisor for 30 minutes but found him to be uncooperative. David
gave Joanne an oral report on how the interview went and what he learned about the
department.
 Describe several flaws in David’s approach to obtaining information. How should this task
have been performed?

• Ms. Grey did not give Mr. Young adequate instructions about how to conduct the interview
and what information to obtain. A senior consultant must exercise closer supervision and
provide better guidance to junior employees. Perhaps Ms. Grey should have performed the
interview while Mr. Young observed.

• The consultants did not prepare for the interview. They should have studied available
documentation to learn what the department does and what the supervisor’s job
responsibilities are. Then they should have prepared an interview guide listing the topics to be
discussed and the questions to be asked.

• Mr. Young provided an oral report rather than a written report of his findings. An interviewer
should take notes during the interview, and polish them immediately afterward, in order to
provide documentation for future analysis and reference.

• Mr. Young’s opening statements to the supervisor were negative in tone. He should attempt
to establish rapport with the interviewee, avoid making negative or threatening statements,
and be positive about the goals of the study.

• Mr. Young should have asked the supervisor to explain how the department works. Most of
the talking should have been done by the supervisor while Mr. Young listened and took notes.

• The interview should have been scheduled ahead of time and the department supervisor
should have had time to prepare for the interview.

23. 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.

a. Explain the purpose and reasons for surveying an organization’s existing system.
• To gain an understanding of the existing system and how it functions.
• To determine the constraints of the current system.
• To assess the strengths and weaknesses of the existing system and to identify problems
that need to be resolved.
• To provide design ideas for the new system and to identify available resources.
• To provide information about users’ information needs.
b. Explain the activities commonly performed during systems analysis.

Initial Investigation
• Verify the nature of the problem and the needs of the users.
• Gather the information needed to evaluate the feasibility of the request.
 Systems Survey
• Study and review the existing organizational structure to determine how it functions.
• Collect and review internal documents and reports to determine design, content, use,
frequency of preparation, etc.
• Develop and use questionnaire forms to determine processing frequencies, input/output
volumes, and other information.
• Conduct personal interviews to confirm and expand upon data gathered from the
questionnaire.
• Develop flowcharts, models, and diagrams to document the existing system.
• Study external data sources, including companies who develop or who similar systems,
consultants specializing in such systems, customers, industry trade associations, and
government agencies.
• Observe activities to determine how the system actually works, rather than what people
or the documentation say should be done.
Feasibility Study
• Conduct a study to determine whether to continue with the project.
Information Needs and System Requirements
• Define and document the information needs of the users.
• Define and document the requirements of the new system.
Systems Analysis Report
• Summarize and document analysis activity findings.

24. Systems analysis is often performed by a project team composed of a systems analyst, a
management accountant, and other knowledgeable and helpful people. What is the
management accountant’s role in systems analysis?

Most systems analysis work is performed by systems people. However, the management accountant is
an important part of the development team and would be of assistance in providing information about
various aspects of the system, including:
• Management’s needs for required reports and their format.
• System requirements.
• Source documents in use.
• The relevance, reliability, and timeliness of input/output data.
• The internal controls which exist and which should be incorporated into any new or redesigned
system.
25. Managers at some companies face an ongoing systems development problem: IS departments
develop systems that businesses cannot or will not use. At the heart of the problem is a gap that
separates the world of business and the world of IS that many departments are unable or ready
to cross.

One reason for the crisis is that many companies are looking for ways to improve existing, out-
of-date systems or to build new ones. Another is high user expectations that IS departments are
not meeting. Users seek more powerful applications than are available on many older systems.

For instance, a Midwestern bank used an expensive computer-aided software engineering

(CASE) tool to develop a system that users ignored because there had been no design planning.
A senior analyst for the bank said, “They built the system right; but unfortunately, they didn’t
build the right system.”

a. What causes this gap?

The gap between the information needs of business managers and the information produced by IS
department occurs because:
• Technology is advancing rapidly and many systems are outdated and do not produce the
needed information in the manner needed by users.
• Better-educated users are demanding more powerful information systems and better results
from information systems that aren’t performing.
• Poor communications among system designers, end users, and business managers results in
the development of ineffective information systems.
• IS people who do not understand operations and the management of the business.

b. What would you suggest to solve this problem?

• A first step in effective systems design is a thorough business analysis to understand how a
business operates and how its business functions relate. This helps systems professionals and
business managers to communicate effectively when developing an integrated system.

• Businesses could hire managers with a systems background so they can be a liaison between
the systems department and the finance and accounting departments, helping business
managers to communicate their needs clearly. These managers should be willing and able to
get involved in the IS development process.

• More involvement and interaction between the systems staff and end users. End users should
take an active role in the development process. In particular, designers should work closely
with end users to assess needs and to develop specific working solutions.

• A more integrated approach to systems development involving all the necessary parties:
designers, programmers, business managers, and end users.

• Management should provide employees with the training needed to make the system work
right.

• In today’s environment many companies are moving their systems to the cloud and buying
software rather than developing it. They are also making use of new developments such as
artificial intelligence, data analytics, and blockchain
 c. Discuss the role a systems designer, business manager, and end user can take to narrow
this gap.

Systems designers can involve end users and managers in the design and development
process. This reduces the behavioral problems associated with a new system and improves
the probability that the system will meet the desired business objectives. They should also
make a concerted effort to understand the business processes of the company.

Business managers can support the design team’s efforts to encourage end-user involvement
in the development process. In addition, business managers can communicate regularly with
systems developers to ensure that the system is meeting business objectives.

The end user can help bridge the gap by taking a cooperative, interactive role in the
development process.

d. Who plays the most vital role in the effective development of the system?

All players play important roles in the systems development process. This gap between the
business and IS world is in large part the result of an overreliance upon the systems analyst to
meet the needs of managers and end users without their cooperation and input. It is also a
result of analysts not taking the time to understand the business processes at their company.

26. A PERT chart is a tool that is useful in project planning.

a. Why would one use a PERT chart as opposed to a Gantt chart?

PERT charts are often used before a project begins. The chart is then used to plan and
determine the duration of each task – you also indicate the relationships between tasks, with a
clear indication of any predecessors that need to be completed before certain tasks start. A
PERT chart also contains a critical path. This path includes the activities that require the most
time and if any activity on the critical path is delayed, the entire project will be delayed.

b. What are the typical steps you would need to follow to complete a PERT chart?

1. Start by listing all the activities in the project.

2. Determine the sequence of the activities and also if there are any activities that are
dependent on other activities – if a specific task needs to be completed before another can
start, there is a dependency.
3. Create a node for each activity and add arrows to determine the sequence, and any
dependencies.
4. Estimate the time required for each activity – then add the start time and completion time
(dependent on the duration of the activity) to each node.
5. Determine the critical path.

c. What are the main advantages project managers can realize when using a PERT chart?

It is possible to identify the critical path (this would be activities that take the longest to
complete; and it would determine the shortest time in which the project can be completed)

• It is possible to create a realistic schedule for completing the project.

• Activities that can be completed simultaneously (and ones that need to be completed
before others can start) can be identified.
• Identify if there is any “slack” time where certain activities are not on the critical path,
and thus not critical to the final deadline.
• Identify activities that might need to be compressed to ensure that the overall project can
still meet the deadline.