Segregating New Systems Development from Maintenance

System Development function groups

1. System Analysis
- Work with users to produce detailed designs of the new systems
2. Programming
- Codes the program according to design and specification
- The programmer also maintains the system during the maintenance phase og
the systems development life cycle
Two Types of Control Problems
1. Inadequate Documentation
- Documenting systems is not as interesting as designing, testing, and
implementing them.
- Job security
2. Program Fraud
- Involves making unauthorized changes to program modules for the purpose
of committing an illegal act
- For the fraud to be successful, the programmer must be able to control the
situation through exclusive and unrestricted access to the applications
programs
A Superior Structure for Systems Development
Systems Development Function Groups:
1. New Systems Development
- Responsible for designing, programming, and implementing new systems
projects
2. Systems Maintenance
Two Control Problems
a. Documentation standards are improves because maintenance group requires
documentation
b. Denying the original program future access to the program deters program
fraud
THE DISTRIBUTED MODEL
Distributed Data Processing (DDP)
-

Involves reorganizing the central IT function into small IT units that are placed
under the control of end users.
The IT units may be distributed according to business function, geographic
location , or both
The degree to which they are distribute will vary depending upon the
philosophy and objectives of the organizations management

Two Alternatives:
1. Alternative A
- Variant of the centralized mode
- The difference terminals are distributed to end users for handling input and
output
2. Alternative B
- Distributes all computer services to the end users, where they operate as
standalone units
- Elimination of the central IT function from the organizational structure
Risk Associated with DDP
1. Inefficient Use of Resources
a. Risk of management of organization-wide IT resources by end users
b. DDP can increase the risk of operational inefficiencies because of redundant
tasks being performed within the end-user committee,
c. DDP environment poses a risk of incompatible hardware and software among
end-user functions
2. Destruction of Audit Trails
Audit Trail- Provides the linkage between a companys financial activities
(transactions) and the financial statement that report on those activities.
- In DDP systems, the audit trail consists of a set of digital transaction files and
master files that reside entirely on the end-user computers
- Should an end use inadvertently delete one of the files, the audit trail could be
destroyed and unrecoverable
3. Inadequate Segregation of Duties
- The distribution of the IT services to users may result to the creation of small
independent units that do not permit the desired separation of incompatible
functions
4. Hiring Qualified Professionals
- End-user managers may lack the IT knowledge to evaluate the technical
credentials and relevant experience f candidates applying for professional
positions
- If organization is small, opportunity for personal growth, continuing education,
and promotion may be limited
5. Lack of Standards
- Standards for developing and documenting systems, choosing programming
languages, acquiring hardware and software, and evaluating performance
may be unevenly applied or nonexistent

Advantages of DDP
1. Cost Reductions
- Powerful and inexpensive microcomputers and minicomputers that can
perform specialized functions have changed the economics of data
processing dramatically
- Unit cost of data storage is no longer a prime consideration
- Data can be edited ad entered y the end user, thus eliminating the centralized
task of data preparation
- Application of complexity can be reduced, which in turn reduces systems
development and maintenance cost
2. Improved Cost Control Responsibility