University of Adelaide Business School

ACCOUNTING SYSTEMS and PROCESSES (M)

TUTORIAL 6 – Answers Guide

BEFORE TUTORIAL 6

1 Read the material indicated below and attempt answers to the questions that
follow.

Material to read:
MyUni>
Data Analytics – Microsoft Power BI Material>
Topic 5 – Get started with Power BI Desktop Importing web
data.pdf

Key aims of Topic 5 are to understanding importing data from Web/HTML
documents, preparing data for analysis, including changing data type, creating
and merging tables, and manipulating and enhancing report visualisations.

Students are expected to learn basic hands-on skills to carry out these tasks.

Students are expected to attempt tasks in this document before the tute and
raise questions about issues encountered during the tute.

2 Prepare the answers to the following questions from: Systems development
process (Romney & Steinbart Chapters 22, 23, 24)


Question 1
You are a consultant advising a firm on the design and implementation of a new
system. Management has decided to let several employees go after the system is
implemented. Some have many years of company service. How would you advise
management to communicate this decision to the affected employees? To the entire
staff?

1. Tell employees what is going to happen to them as soon as possible.

2. Institute a hiring freeze so staff can be reduced by attrition.

3. Retrain displaced employees for other jobs.

4. Offer early retirement to older employees.

5. Offer retirement incentives.

6. Offer displaced employees comparable positions in other divisions of the
company.

Accounting Systems and Processes (M) Tutorial 6 Page 2
7. Hire a personnel-consulting firm to help displaced employees find alternative
employment.

8. Train displaced employees for positions in the new system.

9. Encourage part-time work or job-sharing.


How would you advise management to communicate this decision to the
affected employees? To the entire staff?

1. The communication should be direct, so that the employees are the first to find
out and are not subject to the whims of rumors and uncertainty.

2. The communication should be prompt so the employees have sufficient time to
seek other jobs.

3. Management should offer as much employee assistance as possible to help them
find new jobs. This includes recommendations from supervisors, priority
consideration for other jobs in the firm, opportunities for positions in the
new system, time off to search for a new job, and severance pay.

While these actions may be costly, they will provide benefits (cooperation,
improved morale in the remaining employees, etc.) that will likely exceed the
costs.

Question 2
Sara Jones owns a rapidly growing retail store that faces stiff competition due to poor
customer service, late and error-prone billing, and inefficient inventory control. To
continue its growth, its AIS must be upgraded but Sara is not sure what it wants the
AIS to accomplish. Sara has heard about prototyping, but does not know what it is or
whether it would help. How would you explain prototyping to Sara? Include an
explanation of its advantages and disadvantages as well as when its use is appropriate.

Prototyping is an approach to systems design in which a simplified working model of
an information system is developed. In essence, a prototype is a scaled-down,
experimental version of the system requested by the users.
The first step is to identify the basic requirements of the system. The emphasis is on
what output should be produced rather than how it should be produced. A "first draft"
model is quickly (days or weeks) and inexpensively built and given to users so they can
experiment with it. This allows users to determine what they want the system to
accomplish and what they like and don't like about it. Based upon their reactions and
feedback, the developers modify the system and again present it to the users. This
iterative process of trial usage and modification continues until the users are satisfied
that the system adequately meets their needs.
The last step is making the system operational. The two choices are to use the already
developed prototype or to use the prototype as a model for developing a new system.
Some of the advantages of prototyping include:
• Better definition of user needs
• Higher user involvement and satisfaction
• Faster development time
• Fewer errors in the implemented system
Accounting Systems and Processes (M) Tutorial 6 Page 3
• More opportunity to make changes
• Less costly than other development alternatives
Some of the disadvantages of prototyping include:
• Requires a significant amount of users’ time
• Less efficient use of system resources
• Incomplete systems development
• Inadequately tested and documented systems
• Cost of learning the different versions of the software
• Never-ending development
Prototyping is appropriate when
• there is a high level of uncertainty about what is needed
• it is unclear what questions to ask
• the final system cannot be clearly visualized because the decision process is
still unclear
• Speed is an issue
• The system must meet just one or two major critical needs
• There is a high likelihood of failure.

Question 3

Discuss how information system outsourcing can provide the organization with both a
business solution and asset management.

Answer: Many companies have come to view information system outsourcing as not
merely an IS solution but a true business solution. Outsourcing has become a
plausible business solution because it allows the organization to focus and put
its concentration into its core competencies. This transfer of IS responsibilities
can be liberating to the organization, as it frees up more resources to devote to
the mainstay of its business efforts. The viewpoint is that a company should be
allowed to do what it does best; so the outsourcer is better at IS operations and
management, while the organization is better in its areas or core competencies.
Many organizations treat outsourcers as business partners, working closely to
meet the strategic business objectives of the organization. An additional
benefit of IS outsourcing is asset management. Many organizations tie up
millions of dollars in their IS efforts, and the attempt to keep up with
technological improvements can create a steady drain on cash reserves and
other organizational resources. One way to significantly improve an
organization's cash position and reduce annual expenses is to sell off IS assets,
or lease them to the outsourcing organization. This can have positive benefits
for both the organization and outsourcing vendor as well, as it helps the
organization with cash and expense management, and can provide an
outsource vendor with the equipment (and even people) it needs to properly
service its client.



Accounting Systems and Processes (M) Tutorial 6 Page 4

Question 4
When a company converts from one system to another, many areas within the
organization are affected. Explain how conversion to a new system will affect the
following groups, both individually and collectively.

The following are possible responses to each of the five areas:

a. Personnel: Employees will be affected in at least two important ways.

1. They may be reluctant to accept the new system. They may fear for their
jobs, feel as if they are no longer vital components of the organization, or
they may completely reject the new system, and refuse to utilize it.

2. They will have to learn new policies and procedures to work with the new
system. Initially, this may cause a slight reduction of overall productivity
until they learn the system.

b. Data Storage: One of the primary logistical concerns of implementing a new
system is making the required data accessible to the new system. This often
requires that files be converted to new formats and that the company's databases
are restructured to accommodate the new system's information requirements. In
addition, new sources of input may be required which will increase the need for
employee instruction and training.

c. Operations: New personnel may have to be hired or current employees may
need to be trained to run the new system. Users will have to adjust to new system
inputs and outputs. The company as a whole will be affected by changes in
employee morale and productivity until the personnel are accustomed to and
proficient with the system.

d. Policies and Procedures: A new information system usually requires new
operating policies and procedures, including those for data security and control,
error checking, documentation, backup and recovery procedures, and file
maintenance. These new policies and procedures should be disseminated to the
employees before the actual conversion takes place to ensure that the employees
are aware of the new requirements and to facilitate the system conversion.

e. Physical Facilities: The effect on the physical facilities will be largely
determined by the size and nature of the system being installed. For example, a
server will only require a corner or perhaps a small room, whereas a mainframe
may require a large facility. In any event, the company will need to be concerned
about physical access to the system; off-site backup and recovery procedures;
protection from fire, flooding, and other disasters; office space for programmers
and operators; lighting, air conditioning, and humidity control; and data
communications facilities.


DURING TUTORIAL 6

• Contribute to the class discussion of the above questions.

Please remember that you’ll enhance your learning by ACTIVELY
PARTICIPATING in the discussions.