The System

Development
Process
Chapter Two
2.1 System
Development and
Documentation Tools
and Technique
System Development and
Documentation Tools and
Technique
• Documentation is a vital part of any AIS.
• Accountants use many different types of
diagrams to trace the flow of accounting data
through AIS.
• A wide variety of soft ware is available for
documenting AISs.
• Documentation encompasses the narratives,
flowcharts, diagrams, and other written material
that explain how the system works.
Cont …
• One popular means of documenting a system is
to develop:
• diagrams, flowcharts, tables, and other
graphical representations of information.
• These are then supplemented by a narrative
description of the system, which is a written
step-by step explanation of system components
and interactions.
2.1.1. Importance of
Documentation in System
Development
• The two most common tools of system documentation are
dataflow diagrams and flowcharts will be discussed in this part.
• These tools save the organization both time and money.
• Depending on the job function being performed, documentation
tools are important on one or more of the following levels:
• At minimum, documentation is read to determine how the system
works.
• Internal control documentations are evaluated to identify control
strengths and weaknesses and to recommend improvements.
• The greatest amount of skill is needed to prepare documentation.
Cont …
• An understanding of documentation tools is
required regardless of the type of accounting
career chosen.
• For example:
• Auditors are required to understand the
client's system of internal controls before
conducting an audit.
Documentation
• In general, documentation n is important as in the
following manners:
• Depicting how the system works: Studying and
reviewing written descriptions of the inputs, processing
steps, and outputs of the system make the job easier.
• Training users: Documentation also includes the user
guides, procedure manuals, and other operating instructions
that help people learn how the AIS operate.
• Designing new systems: Documentation helps system
designers develop new systems in much the same way that
blueprints help architects design buildings.
Cont …
• Standardizing communications with others:
Documentation techniques such as flowcharts and data
flow diagrams are standard industry tools, and they are
more likely to be interpreted the same way by all parties
viewing them.
• Auditing AISs: Documentation helps auditors determine
the strengths and weaknesses of a system’s controls.
• Documenting business processes: By mapping the
business processes, documentation helps managers better
understand the ways in which their businesses operate.
• Accountability: It is used to establish accountability.
2.1.2. Documenting Business
Process
• By mapping the business processes,
documentation helps managers better
understand the ways in which their businesses
operate.
• The two of the most common and basic
documentation tools are:
• Data Flow Diagrams (DFDs)
• Flow Charts
Tool 1: Data Flow Diagrams
(DFDs)
• A data flow diagram (DFD) graphically describes the
flow of data within an organization.
• These diagrams provide a structured view,
showcasing how data moves from input to output
through various processes.
• DFDs employ standardized symbols like circles,
arrows, and rectangles to represent entities, data
stores, processes, and data flow.
• Commonly utilized in software engineering and
system analysis, DFDs enable analysts to understand
and communicate the data movement with clarity.
Elements in a Data Flow
Diagram
• A DFD is composed of four basic elements: data sources
and destinations, data flows, transformation processes,
and data stores.
• Each will be represented in a DFD by a unique symbol.

Process

Data Stores

Source/Destination Entity

Data Flow
Guidelines
• Some general guidelines for developing DFDs are:
• Understand the system
• Ignore certain aspects of the system
• Determine system boundaries
• Identify data flows
• Group data flows
• Identify transformation processes
• Group transformation processes …
For example
• In the diagram below, the input
to Process C is data flow B, which
comes from data source A.
• The outputs of process C are
data flows D and E. Data flow E
is sent to data destination J.
• Process F uses data flows D and
G as input and produces data
flows I and G as output.
• Data flow G comes from and
returns to data store h. Data flow
I is sent to data destination K
Tool 2: Flowcharts
• A flowchart is an analytical technique used to
describe some aspect of an information system
in a clear, concise, and logical manner.
• Flowcharts use a standard set of symbols to
pictorially describe transaction processing
procedures.
Flowchart Symbols
• Flowcharting symbols can be divided
into the following four categories:
• Input/output symbols- represent
devices or media that provide input to
or record output from processing
operations.
• Processing symbols- either show
what type of device is used to process
data or indicate when processing is
completed manually.
• Storage symbols- represent the
device used to store data that the
system is not currently using.
• Flow and miscellaneous symbols-
indicate the flow of data and goods.
 I. Document Flowchart
• A document flowchart illustrates
the flow of documents and
information among areas of
responsibility within an
organization.
• They trace a document from its
cradle to its grave.
• They show
• where a document originates,
• its distribution,
• the purpose for which it is used,
• its ultimate disposition, and
• everything that happens as it
flows through the system Document Flowcharts
Cont …
• The document flowchart can reveal weaknesses or
inefficiencies in a system such as:
• Inadequate communication flows,
• unnecessary complexity in document flows, or
• procedures responsible for causing wasteful delays.
• They also can be prepared as part of the system design
process and should be included in the documentation of
an information system.
Examples
• Following is a typical
example of how a
document flowchart can
be designed.
II. System Flowcharts
• System flowcharts depict the relationship among
the input, processing, and output of AIS.
• A system flowchart begins by identifying both the
inputs that enter the system and their origins.
• The input is followed by the processing portion of
the flowchart.
• The input is followed by processing portion of the
flowchart that is the steps performed on the data.
Cont …
• The logic the computer uses to perform the
processing task is shown on a program
flowchart.
• The resulting new information is the output
component, which can be stored for later use,
displayed on a screen, or printed on paper.
• In many instances, the output from one process
is an input to another.
Cont …
• System flowcharts are an important systems
analysis, design, and evaluation tool.
• They are universally employed in systems work
and provide an immediate form of
communication among workers.
• The system flowchart is an excellent vehicle for
describing information flows and procedures
within AIS.
Examples
• An illustration of how
a system flowchart
works is shown
below:
III. Program Flowcharts
• A program flowchart illustrates the sequence of
logical operations performed by a computer in
executing a program.
• It describes the specific logic to perform a
process shown on a systems flowchart.
• A flow line connects the symbols and indicates
the sequence of operations.
• The processing symbol represents a data
movement or arithmetic calculation.
Cont …
• Once designed and approved, the program flowchart
serves as the blueprint for coding the computer
program.
• The input/output symbol represents either reading of
input or writing of output.
• The decision symbol represents a comparison of one
or more variables and the transfer of flow to
alternative logic paths.
• All points where the flow begins or ends are
represented by the terminal symbol.
Examples
• Following is an example of a program flowchart
DFD Vs FlowCharts
• Differences between DFDs and Flowcharts
• DFDs emphasize the flow of data and what is
happening in a system, whereas a flowchart
emphasizes the flow of documents or records
containing data.
• A DFD represents the logical flow of data, whereas a
flowchart represents the physical flow of data.
• DFDs make use of only four symbols where as
Flowcharts use many symbols and thus can show
more detail.
2.2. Systems
Development Process
Systems Development Process
• Because the environment is competitive and ever
changing, organizations continually face the need for
new, faster, and more reliable ways of obtaining
information.
• To meet this need, an information system must
continually undergo changes.
• Occasionally, the changes are so drastic that the old
system is scrapped and replaces by an entirely new
one.
• Change is so constant and frequent that most
organizations are involved in some system
improvement or change.
2.2.1. The key Players in System
Development Process
• The Players refer to who are the people involved
in developing and implementing AIS?
• Management
• Accountants
• Information systems steering committee
• Project development team
• Systems analysts and programmers
• External players
Important questions
• Important questions in designing a system are:
1) What process must the company go through to obtain
and implement a new system?
2) What types of planning are necessary to ensure the
system’s success?
3) How will employees react to a new system?
4) How should the new system be justified and sold to
top management?
5) How can expected costs and benefits be quantified to
determine whether the new system will indeed be
cost-effective?
2.2.2. The Systems
Development Life Cycle
• Whether systems changes are major or minor, most
companies go through a systems development life cycle.
• The systems development life cycle (SDLC) describes
stages involved in an information system development
project, from an initial feasibility study through
maintenance of the completed application.
• It is a logical process by which systems analysts, software
engineers, programmers and end-users build information
systems and computer applications to solve business
problems and needs.
Cont …
• Systems development methodology can be used as a
synonym for the life cycle.
• Systems development methodology is a very formal and
precise system development process that defines a set of:
• Activities, methods, best practices, deliverables, and
automated tools
• that system developers and project managers are to
use
• to develop and maintain information systems and
software.
Cont …
• Various SDLC methodologies have been developed to guide
the processes involved, including:
• the waterfall model (which was the original SDLC method)
• rapid application development (RAD)
• joint application development (JAD)
• the fountain model
• the spiral model
• build and fix and
• synchronize-and-stabilize
• Frequently, several models are combined into some
sort of hybrid methodology
Stage 1: Systems Analysis
• At this stage, the information needed to purchase or
develop a new system is gathered.
• System analysis is the stage of:
• studying the current business system
• understanding how the existing system works
• determining the weakness and strength of the
existing system
• defining the business needs and requirements, etc
Cont …
• There are five steps in the analysis phase:
1) Initial investigation
2) Systems survey
3) Feasibility study
4) Information needs and systems requirements
5) Systems analysis report
Stage 2: Conceptual System
design
• A general framework is developed for implementing
user requirements and solving problems identified in
the analysis phase.
• What are the three steps in conceptual design?
• Step 1: Evaluate design alternatives: The design
team should identify and evaluate design alternatives
using the following criteria:
• How well it meets organizational and system objectives
• How well it meets users’ needs
• Whether it is economically feasible and Its advantages and
disadvantages and Prepare design specifications.
• Prepare conceptual systems design report.
Cont …
• Step 2: Prepare design specifications: Once a design
alternative has been for the following elements:
• Output
• Data storage
• Input
• Processing procedures and operations
• Step 3: Prepare conceptual systems design report: At the
end of the conceptual design a conceptual systems design report
is developed and submitted.
• To guide physical systems design activities
• To communicate how management and user information needs will
be met § To help assess systems’ feasibility
Stage 3: Physical System Design
• Output Design: The objective of output design is to
determine the characteristics of reports, documents,
and screen displays.
• Output fits into one of four categories
• File and Database Design: What are some file and
database design considerations?
• Input Design: When evaluating input design, the
design team must identify the different types of data
input and optimal input method.
• What are the two principal types of data input?
Cont …
• Procedures Design: it should answer who, what, where,
and how questions related to all AIS activities. What
should procedures cover?
• Control Design: What are some control design
considerations?
• Design Report: At the end of the physical design phase
the team prepares a physical systems design report.
• This report becomes the basis for management’s
decision whether to proceed to the implementation
phase.
Stage 4: Implementation and
conversion:
• Systems implementation is the process of installing
hardware and software and getting the AIS up and
running.
Stage 6: Operations and
Maintenance
• The Operations and Maintenance stage is the final and
ongoing phase of the Software Development Life Cycle
(SDLC).
• After the software is deployed and in use, it enters this
phase to ensure it continues to run smoothly and meets
user needs.
Cont …
• Key Activities:
• Bug Fixes: Resolving issues and errors that appear
during actual usage.
• Upgrades & Enhancements: Adding new features or
improving performance based on user feedback.
• Performance Monitoring: Ensuring the software runs
efficiently, reliably, and securely.
• Support: Providing technical assistance to users and
handling incidents.
• Adaptation: Updating the software to remain
compatible with changes in the environment (e.g., OS
updates, hardware changes).