Replacing a Legacy Application Essay Example for Free

Replacing a Legacy Application EssayBeca practise we recognize in a highly militant and ever- changing world, at any given clipping most organizations are improving or replacing their selective schooling dusts (Romney Steinbart, 2012, p. 579). As an organization postulate change due to increase competition, regulations, business growth and some otherwise(prenominal) reason and go with needs to respond by in addition changing its outline in order to meet the needs of the business. The need for changing to a bran- vernal-fangled transcription helps the business because the new musical arrangement has oft quantifys more capabilities then the older trunk allowing the ships alliance to be qualified to perform business more efficient and effectively. The need for changing to a new arrangement helps to eliminate flaws and strategy incompatibilities created by the old dodging. A reliable information schema is a necessity for all companies. Companies must properl y give accounts and detailed records or face unnecessary hails. A well-devised account information trunk, which ensures relevant and reliable information is reported in financial statements, utilitys every face of company (Pettir Accounting, 2013). I believe that a company should change to new systems in order to keep up with engineering and their competition.An updated accounting information system depose help businesses run repair by providing timely information on internal operations (Small Business-Chron, 2013). A company should consider their budget and because accounting information systems can be very expensive to purchase and withstand. Firms should make sure that they can afford purchasing an accounting information system and sit realistic expectations. Firms should also make sure that they accounting information system has been through tested by performing simulation before the system goes stand up to avoid any potential problems that could cause firm time and funds.Firms should also make sure that employees yield been properly trained on how to use the new and/or updated accounting information system. (1) Potential Benefits unmatchable of the potential benefits associated with changing a new system is that its help increases a companys competitive advantage. As technology increases and changes companies result need change its system in order improve and increase the quantity, quality, speed and accuracy of information. Also companies need to lenify ahead of their competitor so any upgrade in technology that give provide a competitive edge is crucial for a company.This go forth also help to improve products and services, lower cost and to provide other competitive advantages. Secondly, another potential benefit associated with changing a new system is that is provides productiveness gains. By having a system that can perform certain employee tasks cut downs money spent on hiring and paying employees and also increases performance t ime. This also helps slake employees of certain clerical tasks allowing them to focus on other important issues. Thirdly another benefit associated with changing a new system is it eliminates outdated systems. arrangement become old and need to be updated constantly in order for them to remain effective. The benefit of updating an outdated system results in better system capabilities and faster processing time. (1) Potential Risks One of the potential risks associated with changing a new system is how the employee will re deed to the change. Employee will either view the changes organism made as good or bad depending on the individuals creation affect by the system change. Management view changes positively if it increases profits or reduces costs.Employees view the same change as bad if their traffics are terminated or adversely affected (Romney Steinbart, 2012, p. 588). Employees who view the changes as bad will act out displaying aggression, projection or avoidance. All of th ese forms of underground can result in decrease company performance, low morale and sabotage. Resistance usually takes places because of fear, omit of top anxiety support, negative experience with prior changes, lack of communication, disruptive nature of change, manner in which the change is introduced, person biases and emotions and personal characteristic and background.Managers can help minimize the risk of behavioral problems by electing a manager who can help rally, boost employees moral and encourage coworker to help and sustain with the systems sirement. Secondly, the manager needs to involve anyone that is affected by the change in the development of the new system. Management should let employees offer suggestions and help in the purpose making. Management needs to let employees know which feedbacks will be used and which will not be used and why.By doing this employees become more knowledgeable, better trained, and more committed to using the system (Romney Steinbar t, 2012, p. 90). Thirdly management should effectively communicate with anyone who is going to be affected by the system change immediately. The employee should be told of the changes that are going to be made and the benefits the changes will provide to them. Lastly, management should help ease employee fears and stress by addressing their concerns and provide assurance (to the extent possible) that job losses and responsibility shift will not occur (Romney Steinbart, 2012, p. 590). Management should also reassure employees that they will be properly trained on how to use the system.Secondly, another potential risk associated with changing a new system is employees are not properly trained. Companies will sometimes take short-cut because of time and cost associated with training employee. This however can result in the company not being able to reach its expected benefits and return on its investments. want of employee training can also result in employees having to ask other emp loyees who are experts in using the system for help thereby decreasing productivity of coworkers and increasing company costs(Romney Steinbart, 2012, p. 49). This threat however, can be reduced my companies providing employees with proper training, system documentation and procedural manuals for employees to use. Thirdly, another potential risk associated with changing a new system is poor system planning. Management sometimes may produce unrealistic goals and expectations of what they want the system to do or the system may be too complex to understand which can result in the system failing. In order to mitigate this threat management should set realistic goals and expectations.Management should prepare a feasibility analysis were they address the five aspects (economic, technical, legal, scheduling, and operational feasibility). Management should also prepare a system analysis in order to address the current problems, the reason for the change, the proposed systems objectives, a nd its anticipated benefits and costs (Romney Steinbart, 2012, p. 590). Management should evaluate design alternative and wipe out the steering committee to evaluate and chose the lift out decision that will meet the organizations needs.Lastly, another potential risk associated with changing a new system is not testing the system properly. shortsighted system testing can be very costly for a company. Testing should be done in order to clasp and eliminate problems as early on in the development process as possible. The Gartner Group estimates that bugs discovered later(prenominal) in the SDLC cost 80% to 1,000% more to fix than those discovered earlier (Romney Steinbart, 2012, p. 646). In order to reduce this threat companies should use debugging techniques in order to discover and eliminated problems.Companies should also test the system by using system testing techniques such as walk-through, processing test data and acceptance tests. (2a) Purchase computer software progra m One of the advantages of the company choosing to purchase the software from Oracle and having it maintained by the companys information system group is the company doesnt have to worry about the risk of loss of control that could result from outsourcing its AIS system. The company is able to manage its system and data without the threat of having to worry about their losing its system and data.Secondly, another advantage of the company choosing to purchase the software from Oracle and having it maintained by the companys information system group is increased service. Poor service can result if the company chose to outsource its AIS to Oracle. By the company housing its own AIS will result in the company be able to better respond to changes in organization. Lastly, another advantage of the company choosing to purchase the software from Oracle and having it maintained by the companys information system group is flexibility.The company is under no contractual agreement so if at any t ime the company becomes dissatisfied with the product or needs to change products because of structural changes, the company can do so without consequences. If the company would have chosen to outsource its AIS to Oracle then the company would have to attend the terms and agreements stated in the contract or risk legal and costly consequences. One of the disadvantages of the company choosing to purchase the software from Oracle is risk of the software not being flexible, easily maintained and user friendly-software.This can result in the company having to spend money in order to maintain the system and to keep it running efficiently. By purchasing a system that is not user friend will result in employee who will be resistance to use the system and time wasted trying to train employees on how to use the system. This threat can reduce by the company investigating and researching other companies that use the software and their feedback on the program. Secondly, another disadvantage of the company choosing to purchase the software from Oracle is the risk of the software not having adequate control capabilities. bundle that doesnt have adequate control capabilities can result in internal control threats that can cause the company money in time in order to correct. An example is the software the companies purchase for Oracle should not give accounts payable employees access to accounts receivables duties and vice versa. This threat can be reduce by the company performing tests on the software in order to make sure that the software is error free and that the controls are working properly. Lastly, another disadvantage of the company choosing to purchase the software from Oracle is the risk of the software not meeting all mandatory specifications.By the software not being able to meet all of the companies need will result in the company having to waste money in order to modify the software or to purchase software that will meet the companys needs. This threat can be reduced by the company evaluating all system proposals and selecting the best system. The company should compare the software with the system destinys in order to determine if all mandatory requirements are met and how many desirable requirements are met (Romney Steinbart, 2012, p. 614). (2b) Modifying Current AISOne of the advantages of the company choosing to modify its AIS with the help of consultants is freeing up systems resources. agree to the information provided the information system group will rely on the consultants to assist in the development, configuration, and testing of the system. This will help free up systems resources and reduce both the invisible and the invisible backlog of systems development projects (Romney Steinbart, 2012, p. 618). Secondly another advantage of the company choosing to modify its AIS with the help of consultants is versatility and ease of use.The software developed by the consultant will easy to understand and use because the consultants can modify the information they produce or change applications programme at any time the company needs them to be changed. This is helpful work employee who work from home or employees on business trip and employees on airplane for business meetings. Lastly, another advantage of the company choosing to modify its AIS with the help of consultant is timeliness. Consultants are able to develop the software more quickly and with little ease than the company would be able to.This due to the company having to get budget approval, provide detailed requirement definitions, cost/benefit analysis, and other political requirements that may halt or slow the development process. One of the disadvantages of the company choosing to modify its AIS is poorly controlled and documented systems. According to the information given the companys information system group is going to rely on consultants to assist in the development, configuration, and testing of the system.The company runs into problems thi s focal point because the consultants may not install controls in order to protect the system. Also because the consultants may view documenting the system as boring and unimportant, this may result in them not creating very good system documentations. By consultant not creating or creating poor system documentation will lead to the employees not amply understanding how to operate the system. Secondly another disadvantage of the company choosing to modify its AIS with the help of consultant is inexperienced consultants.This can result in the company hiring consultants who have little understanding about the business environment and how it operates result in poorly written software that does not meet the companys strategic plans and goals. In order to mitigate this threat the company should evaluate each consulting group that has experience in the companys industry and an in-depth understanding of how the company conducts its business. Lastly, another disadvantage of the company ch oosing to modify its AIS with the help of consultant is poorly written and vague contracts.This can result contracts having to be rewritten causing the company money for having to reimburse contractors. This can also result in the consultants not creating systems that didnt specify system requirements and performance criteria. In order to mitigate this threat the company should sign a contract that rigorously defines the relation between the company and the developer, places responsibility for meeting system requirements on the developers and allows the project to be discontinued if severalize conditions are not met (Romney Steinbart, 2012, p. 617). (2c)Outsourcing is hiring an outside company to handle all part of an organizations data processing activities (Romney Steinbart, 2012, p. 619). The company is considering hiring an outside company in order to do the installation because this will involve very little work on the companys information system side. One of the benefits of the company choosing to outsource its AIS system to Oracle and have them to maintain the system is the development time is lesser. According to the information given if the company chooses to outsource it will take no more than 15 months to masterful the project.If the company decided not to outsource, it may result in the development of the system taking longer than 15 months to complete and the company only has 18 months to complete the project. It would also take Oracle less time to develop the system then the company, because Oracle is the maker of the application PeopleSoft Enterprise Financial Management, because of this Oracle would be able to develop and implement the system faster and more efficiently than in-house staff (Romney Steinbart, 2012, p. 620).Oracle will be able to cut through the development politics unlike the company which may have to follow stringent guidelines when developing the AIS. Secondly, another benefit of the company choosing to outsource its AIS system to Oracle and have them to maintain the system is the access to greater expertise and better technology. By the company let Oracle install, configure and maintain the AIS application, this greatly reduces the cost and time that would be wasted by the company in staying at the cutting edge of technology were rising significantly (Romney Steinbart, 2012, p. 20). Since Oracle already know the system it would be more logical to let them be responsible for upgrading and keeping the system maintain because they would have a better understanding and knowledge of how the system functions.Lastly, another benefit of the company choosing to outsource its AIS system to Oracle and have them to maintain the system is, it is an Excellent strategic and economic business solution. By allowing Oracle to handle the AIS this will give the company a chance to focus on other important areas of the business. Outsourcing is a viable strategic and economic business solution that allows companies to concentrate on core competencies (Romney Steinbart, 2012, p. 620). The company is able to work on the areas that is does flourishing in and leave the AIS application PeopleSoft Enterprise Financial Management to people who understand and know how to maintain and handle the system.The company will need to work Oracle as a partner and work side-by-side with them in order for the company to meet its strategic and operational objective. One of the disadvantages of the company choosing to outsource its AIS system to Oracle and have them to maintain the system is because of the inflexibility in contracts. If the company becomes unhappy or decides to change its AIS it will be extremely difficult or costly to break the contract.For example the contract between the company and Oracle may stipulate a 10 year contract with a cost of $5 million dollars if the contract has been breached. If the company changes its mind whether because being unhappy with Oracles performances or structural chan ges and decide to cancel the contract at year five, this will result in the company having to pay $5 million dollars because they breached the contract which was for 10 years.