Accounting Information Systems: The Processes and Controls, 2nd Edition

ELEMENTS OF THE SYSTEMS PLANNING PHASE OF THE SDLC (STUDY OBJECTIVE 3)

Systems planning is a managerial function of the IT governance committee. The IT governance committee must constantly monitor the IT system through feedback about network utilization, security breaches, and reports on the operation of the system. This constant monitoring allows the IT governance committee to determine whether the current system meets organizational needs. When the committee determines that a part or parts of the IT system are not meeting organizational needs, it should begin the process to study and evaluate the feasibility of modifying or updating those parts of the system. The IT governance committee will also receive specific requests from those who use the IT systems to modify or upgrade parts of the system. This means that at any one time the IT governance committee may be considering not only modifications or upgrades that they have noted need attention, but also upgrades or modifications requested by users. Usually, it is not possible to simultaneously modify or upgrade all of these areas. The IT governance committee must have procedures to follow that will assist it in prioritizing the most important needs of the IT system for immediate modification or upgrade.

THE REAL WORLD

Before Allstate Insurance Co. formed a capital spending committee with IT governance responsibilities, the process of prioritizing IT projects typically was decided by “whoever spoke the loudest or whoever had ...