Test: Lesson 1,2,3

Lesson 1: Introduction to System Development

Learning Objectives:
1. Understand the needs of system development and Information System Strategy.
2. Introduction to IT governance and its role in strategic management
3. Analyze the failure of system development.

1.0 System Development 1) Like change from

physical to online.

2) Like payment method,

Process of modifying or replacing a portion or all last time don’t have TNG e
wallet, or self-counter, or
of an information system palm biometric.

Definition In the context of accounting, system 3) Like fast food

development aims to enhance and automate restaurant, last time long

que, now can self QR code
financial processes, ensuring accuracy, efficiency, then faster get the food.

and compliance. 4) Brings competitive

advantage like McDonald
use qr code.
Changes in user or business needs 5) the system now can
Technological changes. work 24 hours, if physical
only few hours.

Reasons to Improved business processes. 6) One system for one

change/update Competitive advantage. company is enough, some
company has many
system Productivity gains. systems.

Systems integration. 7) When the version too

low, must buy new one,
Systems age and need to be replaced. like apple.

Importance of System Development in Accounting:

a) Streamlining Processes
Automation of routine tasks leads to increased efficiency in data entry, processing,
and reporting.

b) Accuracy and Precision

Minimizing manual errors by implementing systematic controls improves the
accuracy of financial data.

c) Compliance and Regulations

Systems can be designed to adhere to accounting standards, legal requirements,
and industry regulations.

d) Decision Support

¹Adapted from Control Objectives for information and Related Technology (COBIT) 4.1, Framework, IT Governance Institute, Rolling
Meadows, IL, 2007 (www.itgi.org).
 Information systems provide timely and relevant data to aid managerial decision-
making.

e) Cost Efficiency
Streamlining processes and reducing errors contribute to cost savings over time.

Online platform, you don’t need rent, employees, utility, etc.

2.0 IT governance and Strategic management
 In the business environment of today, IT systems are critical to the success of the
organizations that use them.

 IT systems can improve efficiency and effectiveness, and reduce costs.

 To ensure that a company is using IT to its competitive advantage, it must

continually investigate and assess the viability of using newer information
technologies.

 The company must ensure that its long-term strategies, and its ongoing operations,
properly utilize appropriate IT systems.

 IT systems must be chosen that support management’s strategic goals and the daily
operational management – strategically managed.

2.1 Strategic management

 Def: process of determining the strategic vision for the organization, developing the
long-term objectives, creating the strategies that will achieve the vision and
objectives, and implementing those strategies.

 Requires continuous evaluation of, and refinements to, the vision, objectives,
strategy, and implementation. To achieve the purposes of strategic management, an
organization must also properly manage, control, and use IT systems that enable the
organization to achieve its strategies and objectives.
.
IT Governance

Like Petronas and Shell, Shell need RFID payment only,

Petronas use their own app. Different payment method.

 IT governance: [A] structure of relationships and processes to direct and control the
enterprise in order to achieve the enterprise’s goals by adding value while balancing

¹Adapted from Control Objectives for information and Related Technology (COBIT) 4.1, Framework, IT Governance Institute, Rolling
Meadows, IL, 2007 (www.itgi.org).
 risk versus return over IT and its processes. IT governance provides the structure
that links IT processes, IT resources, and information to enterprise strategies and
objectives.¹

 IT systems should be chosen and implemented that support attainment of strategies

and objectives.

 To fulfill the management obligations that are inherent in IT governance,

management must focus on the following activities:
1) Each o Aligning IT strategy with the business strategy
department has
there own goals.
o Cascading strategy and goals
o Providing organizational structures that facilitate the implementation of
2)Does budget
enough? strategy and goals
o Insisting that an IT control framework be adopted and implemented
o Measuring IT’s performance

 Integration of Technology in Accounting Systems

a) Cloud Computing
Accessibility: Allowing access to accounting data from anywhere with an internet
connection.
Scalability: Easily scaling up or down based on organizational needs.
b) Artificial Intelligence (AI) and Machine Learning (ML)
Automation of Routine Tasks: Using AI and ML to automate repetitive accounting
tasks.
Predictive Analytics: Analyzing historical data to make predictions and informed
decisions.

¹Adapted from Control Objectives for information and Related Technology (COBIT) 4.1, Framework, IT Governance Institute, Rolling
Meadows, IL, 2007 (www.itgi.org).
3.0 System Development Life Cycle (SDLC)

 The formal process that many organizations use to select, design, and implement IT
systems is the system development life cycle, or SDLC.
 Phases of SDLC:

 Planning
o Identification of Needs: Assessing the organization's accounting requirements
and identifying areas for improvement.
o Feasibility Study: Evaluating the technical, operational, and economic
feasibility of implementing a new system.
 Analysis
o Requirements Gathering: Collecting and documenting detailed requirements
for the new accounting system.
o System Design: Creating a blueprint for the new system based on the
gathered requirements.

 Implementation
o Coding: Writing the actual code for the accounting system based on the
design specifications.
o Testing: Conducting rigorous testing to identify and rectify any bugs or issues.
o Deployment: Implementing the system in the live environment.

 Maintenance
o Monitoring: Regularly monitoring the system's performance to identify and

¹Adapted from Control Objectives for information and Related Technology (COBIT) 4.1, Framework, IT Governance Institute, Rolling
Meadows, IL, 2007 (www.itgi.org).
o Updates and Enhancements: Making necessary updates and improvements to keep
the system current and aligned with changing business needs.

¹Adapted from Control Objectives for information and Related Technology (COBIT) 4.1, Framework, IT Governance Institute, Rolling
Meadows, IL, 2007 (www.itgi.org).