AIS Ch 5 - IT Governance

Business Process Reengineering (BPR)

"fundamental rethinking and radical redesign of business processes to bring about dramatic improvements" in performance.

Steps for software in-house design

(1) generate alternative designs, (2) feasibility study, (3) select best design, (4) detailed design, (5) design specifications

Steps for software purchase

(1) send RFP, (2) evaluate RFPs and software, (3) select software, (4) purchase selected software, (5) determine modifications, (6) design change specifications

Systems Implementation Phase (flowchart)

(1) software programming, (2) train employees, software testing, document system (3) Data conversion, (4) System conversion, (5) User acceptance, (6) Post implementation review, (7) Continuing operation

Phases to the SDLC

(1) systems planning, (2) systems analysis, (3) systems design, (4) systems implementation, and (5) operation and maintenance.

In the systems planning phase, IT governance committee should consider

(1) the assessment of IT systems and their match to strategic organizational objectives, and (2) the feasibility of each of the requested modifications or upgrades

During the ongoing operation of the IT system, management should receive regular reports as necessary to monitor the IT systems. Examples of reports are

- IT performance (IT load usage and excess capacity, downtime of IT systems, maintenance hours). - IT security and number of breaches or problems. - IT customer satisfaction (internal and external customers).

Major purposes the IT governance committee and the SDLC serve

- The strategic management process of the organization. - The internal control structure of the organization. - The fulfillment of ethical obligations.

Conceptual Design

Involves identifying the alternative conceptual design approaches to systems that will meet the needs identified in the system analysis phase.

Systems Analysis Phase (2)

It includes a preliminary investigation, a survey of the current system, a determination of user information needs, analysis, and business process reengineering. At this point the purpose is to make a "go", or "no go" decision.

Who must take responsibility to ensure that the organization has processes to IT systems with the strategies and objectives of the organization?

The board of directors and top level executive managers

Data conversion

The file or database storage for the new system may be different from the storage of the old system. In most instances, a conversion program can be written or acquired that will convert the data from the old to new format.

System Analysis Report

The last step in the systems analysis phase. It informs the IT governance committee of the results of the systems survey, user needs determination, and BPR.

Detailed Design

The purpose of this phase is to create the entire set of specifications necessary to build and implement the system.

RFP - request for proposals

The solicitation of proposals from different software vendors

Operational and Maintenance Phase

This part of the SDLC is the longest and costliest part since it may last for several years. At some point, the company will find a need to make major revisions or updates to the system. This would trigger the SDLC to begin again to revise the system.

SDLC definition

a systematic process to manage the acquisition, design, implementation, and use of IT systems

IT governance committee must monitor the IT system through

feedback, security breaches, and reports on the operation of the system

Systems survey requires collecting data about the current system from different sources including

inputs, outputs, processes, controls, data storage, transaction volumes, errors

Document review

is a detailed examination of documentation that exists about the system to gain an understanding of the system under study

Systems Survey (during systems analysis phase)

is a detailed study of the current system to determine strengths and weaknesses of the current system.

Direct cutover

is a system conversion method in which on a chosen date the old system operation is terminated and all processing begins on the new system.

Parallel conversion

is a system conversion method in which the old and the new systems are operated simultaneously for a short time.

Phase-in conversion

is a system conversion method in which the system is broken into modules, or parts, which are phased in incrementally and over a longer period

Pilot conversion

is a system conversion method in which the system is operated in only one or a few sub-units of the organization.

Observation

is watching the steps that employees take as they process transactions in the system.

Data collection involves

observation, documentation review, interviews, and questionnaires. A project team would use each of these methods to collect the necessary data.

Parts of the system that must be designed during "Detailed Design" phase

outputs, inputs, processes, data storage, and internal controls

System conversion methods

parallel, direct cutover, phase-in, and pilot

SDLC

systems development life cycle

Feasibility aspects to be considered during systems planning phase

technical, operational, economic, and schedule (TOES)

The oversight and management of the SDLC is normally the responsibility of

the IT governance committee.

System conversion

the actual changeover from the old to the new system. Often, this is called the "go live" date, which is the day that the new system is fully in operation.

Analysis of the System Survey

the critical thinking stage of systems analysis. The purpose is to question the current approaches used in the system and to consider better ways to carry out the steps and processes in the system. The project team studies the information collected in the system survey phase and attempts to create improvements to the system.

Systems Planning Phase (1)

the evaluation of long-term, strategic objectives and the prioritization of the IT systems that assist the organization in achieving its objectives. Also involves the continuing oversight of the design, implementation, and use of those IT systems.

IT Governance

the proper management, control, and use of IT systems

Purchased software offers advantages because

the software is written by the software vendor and its cost is spread over several clients; therefore, the coding and testing are already complete when a customer buys the software.

Preliminary investigation purpose

to determine whether the problem or deficiency in the current system really exists.