Accounting Information Systems: Package Implementation

• AIS Selection in Accounting Information Systems is covered.
• Package Implementation and SDLC (Systems Development Life Cycle) are discussed.

Package Implementation & SDLC

• The steps in the Package Implementation & SDLC include Systems Analysis, Conceptual Design, and Package Selection.
• Systems Analysis involves defining system requirements.
• Conceptual Design involves functional requirements.
• Package Selection includes key requirements and selection criteria, RFP (Request for Proposal) and vendor shortlist, vendor presentation and prototypes, reference sites, and contract negotiation.
• The last step is Operations and maintenance

Package Selection Basic Process

• The basic process for package selection encompasses defining key requirements and selection criteria, sending out RFPs to create a vendor shortlist, vendor presentations and prototypes, reference sites, contract negotiation, and awarding a contract.
• Acquisition teams, acquisition strategies, market analysis, and evaluation criteria are important

Acquisition Team

• An acquisition team oversees all acquisitions.
• Some team members will transition to the implementation team later on.
• A steering committee is composed of senior users and IT executives.
• Project teams include user department managers and IT department managers.
• User reps teams include functional department users from Purchasing, Finance, etc., full- or part-time.

Acquisition Strategies

• Acquisition strategies involve gathering data on potential software packages.
• Information is gathered though internet searches or vendor brochures
• Other strategies may include conference visits, market surveys and reports
• Credibility and reliability of information sources should be assured.
• Information should be confirmed from relevant sources like peers, client referrals, vendor referrals, outside references, and market reports.
• Acquisition approaches involves deciding on whole package vs module, adoption with or without customization, and in-house vs outsourced implementation.

Marketplace Analysis

• Marketplace analysis includes the "package" market's basic considerations for the software Vendor and user.
• Low-end market: Includes QuickBooks and MYOB and has basic functions for customer invoicing, inventory tracking, and purchase ordering.
• Mid-range market: Microsoft Dynamics offers financial and non-financial functionalities, for SME and Medium Enterprises with increased capacity and cross enterprise integration.
• High-end market: ERPs (Enterprise Resource Planning) such as Oracle and SAP have full enterprise integration with flexible customization of modules.
• Cloud ERP handles ERP software and its data centrally on the Internet, is managed by the ERP vendor, and is accessed by customers using a web browser such as NetSuite. Basic vendor considerations: Identification of major players, market segment, players in Singapore/region instead of globally, and costs like package license fees, implementations and customization.
• User considerations: Company needs regarding business type, number of users, operational complexity, system sophistication (ease of use, setup, maintenance), and IT infrastructure.

Evaluation Criteria

• Defining the criteria for shortlisting, evaluating and selecting the most suitable software package.
• These can be categorized into Mandatory, Desirable and Optional.
• The categories include package functionalities considerations, technical considerations vendor characteristics and Cost Considerations

Package Functionalities

• Modular system or integrated only, Customization: amount of customization required, Database: scope and content, Reporting: ease of enquiry and online facilities, Support for E-commerce and global business activities, Performance: speed, accuracy, reliability, User-friendliness: documentation, flexibility, maintenance, Mandatory: Business processes, functions, and transactions are all aspects of package functionality.

Technical Considerations

• Technical Considerations include DBMS and programming language.
• Also include Hardware systems and Extensibility or Sophistication of technology.
• This includes technology for future expansion and scalability e.g., XML, use of open standards.
• Current IT infrastructure, Other system software and Compatibility with existing software.
• Legacy systems such as payment, CRM, E-commerce, reporting and billing systems.

Vendor Characteristics

• Vendor characteristics can be divided into intrinsic and project-specific attributes.
• Intrinsic characteristics are size, financial stability, years of industry experience, reputation for reliability, and competence.
• Project Specific-services, commitment, financing, references and training
• Ongoing Maintenance includes Regularity of updates and maintenance, quality of support and warranties, timeliness and responsiveness.

Cost Considerations

• Direct costs include hardware and software licenses.
• Other costs include network and communications, if applicable, implementation: conversion, package customization, project management, and technical consultant and training.
• Operating costs include hardware replacements, software upgrades, annual licenses.
• Also included are maintenance/support, maintenance contracts, help desk support, and ongoing training.

Recap of Package Selection Process

• The package selection process includes: gathering requirements, RFP/vendor shortlisting, getting vendor presentations and prototypes, reference sites and negotiating contracts.
• Key elements are setting up an acquisition team, devising strategies, conducing market analysis and setting evaluation criteria.
• Evaluation criteria include package functionalities, technical vendor and costs considerations.