Video: Approaches for Converting to a New Information System

In this lesson, Nick Palazzolo, CPA, breaks down various strategies for shifting to a new information system, emphasizing the importance of choosing the right approach to minimize risk during transition. He details three primary conversion approaches: direct conversion (or "big bang"), parallel conversion, and pilot conversion, explaining the pros and cons of each. Nick highlights how direct conversion allows for immediate switch but carries high disruption risks, while parallel conversion offers a backup system, reducing risk by allowing both old and new systems to run simultaneously. He delves into pilot conversion where the new system is tested in phases or modules, ensuring a smoother and less risky implementation across departments or functionalities. By comparing these methods, Nick offers practical insights into effective strategies to ensure a seamless transition, tailored to the needs and risk tolerance of the organization.

"Examprep.ai helped me pass all 4 CPA exams on the first try. I highly recommend. I especially like the feedback and ratings the software provides so I know where to focus my time."

Daniel H., CPA

"I can't recommend ExamPrep.ai enough. Nick's lessons turned concepts I struggled with into strengths. I was able to pass FAR right before other exams expired!"

Andrew K, CPA

"I just want to say thank you for the great lesson videos. I couldn't stay awake through lectures of another course. After watching all your FAR lessons I was finally able to pass!"

Alyssa M., CPA Candidate

Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

Cite this lesson

Link to this page

[[ citeExample ]]

Copy to clipboard

Copy URL to clipboard

Copy HTML to clipboard

Let's talk about approaches for converting to a new information system. Now, when an organization decides to transition overall to a general big old change to a new information system, choosing the right conversion approach is going to be critical for minimizing risk. Obviously, we've talked about how if you don't go about this change properly, you could definitely issues and ensuring a smooth changeover. Now, the primary approaches to consider are direct. Big bang. We'll see that here. This is the first one. Parallel and pilot conversions. These are the three choices you can go. The three routes you can go down. Each method has advantages and challenges, just like we see time and time again. There's pros and cons to all the choices you make. And the choice largely depends on the organization's risk, tolerance, resource availability and the complexity of the new system. Now, what is our option one option one for implementing a new information system? Whether this is again, let's just say you're implementing. You're using a new service provider for your all of your Internet, for your networking, maybe it's for an accounting system, whatever. It could be any sort of information system, ERP system. Now for the direct conversion, big bang one, this is a direct conversion. So the organization switches off the old system and starts using the new system all at once across the entire organization. So it's just you're running, running, running, running, running, using it switch. Now we're running, running, running, running, running with the new system. Now, what are the advantages to doing this? You know, again, we're using QuickBooks, then we switch to NetSuite. What are the advantages? Well, it's quicker. It's just boom. Right. We just switch right over. It's less costly in the short term,

Unlock the full video transcript and subtitles support with a free account!

Get more from this lesson

Create an account 7-day free trial. No credit card required.

Data Management

Module: 5 Concepts, 48 Videos

IT Infrastructure - Overview

0:25

Introduction to IT Infrastructure

4:28

Key Components of IT Architecture

4:57

Cloud Computing