SYSTRUST AND WEBTRUST
SysTrust and WebTrust are two specific services developed by the AICPA that are based on the Trust Services Principles and Criteria. SysTrust engagements are designed for the provision or advisory services or assurance on the reliability of a system. WebTrust engagements relate to assurance or advisory services on an organization's system related to e-commerce. Only certified public accountants (CPAs) may provide the assurance services of Trust Services that result in the expression of a Trust Services, WebTrust, or SysTrust opinion, and in order to issue SysTrust or WebTrust reports, CPA firms must be licensed by the AICPA.
The following principles and related criteria have been developed by the AICPA/CICA for use by practitioners in the performance of Trust Services engagements such as SysTrust and WebTrust.
♦ Security. The system is protected against unauthorized access (both physical and logical).
♦ Availability. The system is available for operation and use as committed or agreed.
♦ Processing integrity. System processing is complete, accurate, timely, and authorized.
♦ Online privacy. Personal information obtained as a result of e-commerce is collected,
used, disclosed, and retained as committed or agreed.
♦ Confidentiality. Information designated as confidential is protected as committed or
agreed.
Each of these Principles and Criteria are organized and presented in four broad areas:
♦ Policies. The entity has defined and documented its policies relevant to the particular
principle.
♦ Communications. The entity has communicated its defined policies to authorized users.
♦ Procedures. The entity uses procedures to achieve its objectives in accordance with its
defined policies.
♦ Monitoring. The entity monitors the system and takes action to maintain compliance
with its defined policies.
Showing posts with label INFORMATION SYSTEM. Show all posts
Showing posts with label INFORMATION SYSTEM. Show all posts
Friday, August 27, 2010
Thursday, August 26, 2010
ERP PROJECT COST
Cost of ERP - What does ERP really cost?
The total cost of ERP ownership includes the costs of packaged software, hardware,
professional services (for ongoing maintenance, upgrades and optimization) and internal
costs.
Costs of Software
The cost of packaged ERP software depends on the scope of implementation (the # of ERP
modules and the number of end users), complexity of software and ERP vendors. ERP
software that involves the integration with external business entities generally costs more.
ERP vendors offer discount for organizations who invest in a suite of ERP software
systems. Mid-sized organizations typically commit a few million dollars to packaged ERP
software.
Costs of Hardware
Implementation of ERP systems routinely requires purchase of new computer hardware,
systems software, network equipment and security software. The costs of hardware vary in
a wide range dependent on the scope of implementation and platforms. The hardware
typically costs about half million dollars for mid-sized organizations that implements ERP
systems.
Costs of Professional Services
Customization The big chunk of costs of Professional Services is customization. The cost
of customization can easily out-run the cost of packaged ERP software, but it is the
customization of ERP software that makes an ERP a success or a failure.
Integration ERP systems won't demonstrate its full potentials unless they are properly
integrated with other enterprise software application:
1. the integration of various functional ERP modules,
2. the integration of ERP with other e-business software applications, and
3. the integration of ERP with legacy systems.
Data Conversion
The cost of data conversion depends on the format and the media that
store the historical data. Data conversion from legacy systems to RDBMS is a timeconsuming
process. Data conversion may lead to further data gathering to fill the missing
links in data requirements.
Testing
ERP systems are thoroughly tested before they go into production. ERP testing
includes unit testing, component testing, regression testing, performance testing and user
acceptance testing.
Training
Workflow and UI design in ERP software are more complex than average
business software. ERP training is expensive because workers almost invariably have to
learn a new set of processes of doing their daily tasks besides learning how to use the ERP
software. To reduce the cost of ERP training and to ease the transitions from old processes
to new, organizations often seek the help from training companies which are specialized in
coaching workers on using ERP software from particular vendors.
The total cost of ERP ownership includes the costs of packaged software, hardware,
professional services (for ongoing maintenance, upgrades and optimization) and internal
costs.
Costs of Software
The cost of packaged ERP software depends on the scope of implementation (the # of ERP
modules and the number of end users), complexity of software and ERP vendors. ERP
software that involves the integration with external business entities generally costs more.
ERP vendors offer discount for organizations who invest in a suite of ERP software
systems. Mid-sized organizations typically commit a few million dollars to packaged ERP
software.
Costs of Hardware
Implementation of ERP systems routinely requires purchase of new computer hardware,
systems software, network equipment and security software. The costs of hardware vary in
a wide range dependent on the scope of implementation and platforms. The hardware
typically costs about half million dollars for mid-sized organizations that implements ERP
systems.
Costs of Professional Services
Customization The big chunk of costs of Professional Services is customization. The cost
of customization can easily out-run the cost of packaged ERP software, but it is the
customization of ERP software that makes an ERP a success or a failure.
Integration ERP systems won't demonstrate its full potentials unless they are properly
integrated with other enterprise software application:
1. the integration of various functional ERP modules,
2. the integration of ERP with other e-business software applications, and
3. the integration of ERP with legacy systems.
Data Conversion
The cost of data conversion depends on the format and the media that
store the historical data. Data conversion from legacy systems to RDBMS is a timeconsuming
process. Data conversion may lead to further data gathering to fill the missing
links in data requirements.
Testing
ERP systems are thoroughly tested before they go into production. ERP testing
includes unit testing, component testing, regression testing, performance testing and user
acceptance testing.
Training
Workflow and UI design in ERP software are more complex than average
business software. ERP training is expensive because workers almost invariably have to
learn a new set of processes of doing their daily tasks besides learning how to use the ERP
software. To reduce the cost of ERP training and to ease the transitions from old processes
to new, organizations often seek the help from training companies which are specialized in
coaching workers on using ERP software from particular vendors.
WHY ERP PROJECT FAIL?
WHY ERP PROJECT FAIL?
Among companies that have been through a- less-than-fully successful ERP
implementation five reasons for poor results show up consistently:
• Operating strategy did not drive business process design and deployment.
• The implementation took much longer than expected.
• Pre-implementation preparation activities were done poorly, if at all.
• People were not well-prepared to accept and operate with the new system.
• The cost to implement was much greater than anticipated.
There Is No Magic in ERP Software: It’s in Preparation of the Process and People
Successfully implementing ERP the first time requires a structured methodology that is
strategy-, people and process-focused.
Among companies that have been through a- less-than-fully successful ERP
implementation five reasons for poor results show up consistently:
• Operating strategy did not drive business process design and deployment.
• The implementation took much longer than expected.
• Pre-implementation preparation activities were done poorly, if at all.
• People were not well-prepared to accept and operate with the new system.
• The cost to implement was much greater than anticipated.
There Is No Magic in ERP Software: It’s in Preparation of the Process and People
Successfully implementing ERP the first time requires a structured methodology that is
strategy-, people and process-focused.
Friday, March 27, 2009
SYSTEM SOFTWARE & APPLICATION SOFTWARE
SYSTEM SOFTWARE & APPLICATION SOFTWARE
The system software controls the computer. It communicates with computer’s hardware(key board, mouse, modem, sound card etc) and controls different aspects of operations.
It includes following sub categories:
o Operating system
o Device drivers
o Utilities
Operating system
An operating system is the program that manages all the other programs in a computer. It is a integrated collection of routines that service the sequencing and processing of programs by a computer.
So it is the the software responsible for controlling the allocation and usage of hardware resources such as memory, central processing unit (CPU) time, disk space, and peripheral devices.
Device driver
The device driver software is used to communicate between the devices and the computer. We have monitor, keyboard and mouse attached to almost all PC’s; if we look at the properties of these devices we will see that the operating system has installed special software to control these devices. This piece of software is called device driver software. When we attach a new device with the computer, we need software to communicate with this device. These kinds of software are known as device drivers e.g.CD Rom driver, Sound Card driver and Modem driver.
Utility Software
Utility software is a program that performs a very specific task, usually related to managing system resources. You would have noticed a utility of Disk Compression.Whenever you write a file and save it to the disk, Compression Utility compresses the file (reduce the file size) and write it to the disk and when you request this file from the disk, the compression utility uncompressed the file and shows its contents. Similarly there is another utility, Disk Defragmentation which is used to defragment the disk. The data is stored on the disks in chunks, so if we are using several files and are making changes to these files then the different portions of file are saved on different locations on the disk. These chunks are linked and the operating system knows how to read the contents of file from the disk combining all the chunks. Similarly when we delete a file then the place where that file was stored on the disk is emptied and is available now to store other files. As the time goes on, we have a lot of empty and used pieces on the disk. In such situation we say that the disk is fragmented now. If we remove this fragmentation the chunks of data on the disk will be stored close to each other and thus reading of data will be faster.For the purpose of removing fragmentation on the disk the Defragmentation utility is used.
Application software
A program or group of programs designed for end users. For example a program for Accounting, Payroll, Inventory Control System, and guided system for planes. GPS (global positioning system), another application software, is being used in vehicles, which through satellite determines the geographical position of the vehicle.
Most Popular Application Software Categories are:
Web browsers
Email clients
Word processors
The system software controls the computer. It communicates with computer’s hardware(key board, mouse, modem, sound card etc) and controls different aspects of operations.
It includes following sub categories:
o Operating system
o Device drivers
o Utilities
Operating system
An operating system is the program that manages all the other programs in a computer. It is a integrated collection of routines that service the sequencing and processing of programs by a computer.
So it is the the software responsible for controlling the allocation and usage of hardware resources such as memory, central processing unit (CPU) time, disk space, and peripheral devices.
Device driver
The device driver software is used to communicate between the devices and the computer. We have monitor, keyboard and mouse attached to almost all PC’s; if we look at the properties of these devices we will see that the operating system has installed special software to control these devices. This piece of software is called device driver software. When we attach a new device with the computer, we need software to communicate with this device. These kinds of software are known as device drivers e.g.CD Rom driver, Sound Card driver and Modem driver.
Utility Software
Utility software is a program that performs a very specific task, usually related to managing system resources. You would have noticed a utility of Disk Compression.Whenever you write a file and save it to the disk, Compression Utility compresses the file (reduce the file size) and write it to the disk and when you request this file from the disk, the compression utility uncompressed the file and shows its contents. Similarly there is another utility, Disk Defragmentation which is used to defragment the disk. The data is stored on the disks in chunks, so if we are using several files and are making changes to these files then the different portions of file are saved on different locations on the disk. These chunks are linked and the operating system knows how to read the contents of file from the disk combining all the chunks. Similarly when we delete a file then the place where that file was stored on the disk is emptied and is available now to store other files. As the time goes on, we have a lot of empty and used pieces on the disk. In such situation we say that the disk is fragmented now. If we remove this fragmentation the chunks of data on the disk will be stored close to each other and thus reading of data will be faster.For the purpose of removing fragmentation on the disk the Defragmentation utility is used.
Application software
A program or group of programs designed for end users. For example a program for Accounting, Payroll, Inventory Control System, and guided system for planes. GPS (global positioning system), another application software, is being used in vehicles, which through satellite determines the geographical position of the vehicle.
Most Popular Application Software Categories are:
Web browsers
Email clients
Word processors
The Global Information Technology Report 2008-2009
The Global Information Technology Report 2008-2009
The Report stresses the importance of ICT as a catalyst for growth in the current global turmoil
The Report stresses the importance of ICT as a catalyst for growth in the current global turmoil
Denmark and Sweden once again lead the rankings of The Global Information Technology Report 2008-2009, released for the eighth consecutive year by the World Economic Forum. The United States follows suit, up one position from last year, thus confirming its pre-eminence in networked readiness in the current times of economic slowdown. Singapore (4), Switzerland (5) and the other Nordic countries together with the Netherlands and Canada complete the top 10.
The Report underlines that good education fundamentals and high levels of technological readiness and innovation are essential engines of growth needed to overcome the current economic crisis. Under the theme “Mobility in a Networked World”, this year’s Report places a particular focus on the relationship and interrelations between mobility and ICT.
With record coverage of 134 economies worldwide, the Report remains the world’s most comprehensive and authoritative international assessment of the impact of ICT on the development process and the competitiveness of nations.
The Report is produced by the World Economic Forum in cooperation with INSEAD, the leading international business school, and is sponsored by Cisco Systems.
For more details
The Global Information Technology Report 2008-2009
Tuesday, February 10, 2009
INTRODUCTION OF IMPLEMETATION OF CONTROLS IN IT SYSTEM
IMPLEMETATION OF CONTROLS IN IT SYSTEM
Implementation of controls is a critical security feature of information systems.
1. Access Controls
Controlling who can access the information system.
2. Input Controls
Controls over how the data is input to the information system.
3. Communication Controls
Controls over the transfer of data between LAN, WAN or internet.
4. Processing Controls
Controlling the processing of data
5. Database Controls
Securing the most important asset of the organization
6. Output controls
Controlling the privacy of the data.
Implementation of controls is a critical security feature of information systems.
1. Access Controls
Controlling who can access the information system.
2. Input Controls
Controls over how the data is input to the information system.
3. Communication Controls
Controls over the transfer of data between LAN, WAN or internet.
4. Processing Controls
Controlling the processing of data
5. Database Controls
Securing the most important asset of the organization
6. Output controls
Controlling the privacy of the data.
Saturday, February 7, 2009
SYSTEM DEVELOPMENT LIFE CYCLE
SYSTEM DEVELOPMENT LIFE CYCLE
It is a logical process used by system analyst to develop an information system including requirements, validation, training, and user ownership.
PHASES OF SYSTEM DEVELOPMENT LIFE CYCLE:
INITIATION:
Identification of need or oppurtunity copncept.
SYSTEM CONCEPT DEVELOPMENT
Define scope.
Cost benefit analysis.
Feasibility study.
Risk management plan
PLAN
Develope project management plan.
REQUIREMENT ANALYSIS
Demonstrate that developed information system conforms to requirements as specified into functional design documents.
DESIGN
Trasform requirements into system design documents.
DEVELOPMENT
Convert design into complete information system including:
acquring & installing systems environment.
crating & testing databases.
preparing test case procedures ETC.
INTEGRATION & TEST
Demonstrate that developed system conforms to requirements as specified into functional requirements documents.
IMPLEMENTATION
Implement into production requirements & resolution of problems.
OPERATIONS & MAINTENANCE
Describe task to operate & maintain information system into production environment.
DISPOSITION
Describe end of system activities.
It is a logical process used by system analyst to develop an information system including requirements, validation, training, and user ownership.
PHASES OF SYSTEM DEVELOPMENT LIFE CYCLE:
INITIATION:
Identification of need or oppurtunity copncept.
SYSTEM CONCEPT DEVELOPMENT
Define scope.
Cost benefit analysis.
Feasibility study.
Risk management plan
PLAN
Develope project management plan.
REQUIREMENT ANALYSIS
Demonstrate that developed information system conforms to requirements as specified into functional design documents.
DESIGN
Trasform requirements into system design documents.
DEVELOPMENT
Convert design into complete information system including:
acquring & installing systems environment.
crating & testing databases.
preparing test case procedures ETC.
INTEGRATION & TEST
Demonstrate that developed system conforms to requirements as specified into functional requirements documents.
IMPLEMENTATION
Implement into production requirements & resolution of problems.
OPERATIONS & MAINTENANCE
Describe task to operate & maintain information system into production environment.
DISPOSITION
Describe end of system activities.
DATA VS INFORMATION & INFORMATION SYSTEM
DATA VS INFORMATION
Data represents facts of any kind. In the process of recording important particulars of any event, it is the discretion of the management, what should be recorded and how it should be presented.
However when this data is processed or reformatted, it becomes information. Information is a subset of data which adds to the knowledge.
Information Systems
Interrelated components working together to collect, process, store and disseminate information to support decision making, coordination control, analysis and visualization in an organization.
Wednesday, January 28, 2009
Shifting from legacy system to new system
DEAR ALL,
Objective is to successful shift from Legacy System to new improved system.
legacy system evaluation
•Identify current system transactions flow (prepared flow charts).
•Identify weaknesses and strengths.
•Identify current system users.
•Identify new system objective and requirements.
New System
Objective is to successful shift from Legacy System to new improved system.
legacy system evaluation
•Identify current system transactions flow (prepared flow charts).
•Identify weaknesses and strengths.
•Identify current system users.
•Identify new system objective and requirements.
New System
•Identify new system objective and requirements.
•Break into smaller interdependent modules e.g. General Ledger, Fixed Assets, Purchasing etc.
•Prepare functional design documents FDDS for each module (business process reengineering).
•Get approval of FDDS from top management and key users.
•Map new system transactions flow (prepared flow charts) with existing system transactions flow.
•Map with weaknesses identified in current system.
•Map with core issues identified in current system.
Users identification/training
•Identify new system users (prepare user matrix)
•Identify new I.T infrastructure.
•Identify users requirements in new system.
•Initial training of users.
Preparation of master data
•Prepare master data of relevant module e-g item master , Supplier master, Bank master etc.
•Prepare opening balances data for new system.
•Preparation of reports formats.
Implementation/Evaluation
•Final training of users.
•Parallel working of old and new systems (in small modular form).
•Reconcile results of new system with old system (in small modular form).
•New system fully implemented (in small modular form).
Regards,
Haroon Sulaman ACA
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