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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

A company is replacing its payroll system. The IT team decides to run the new system and the old system side by side for two months, processing the same data in both and comparing results. Which method of system changeover is this?

This is parallel running. Both the old and new payroll systems process the same data at the same time so results can be compared and errors detected. It is lower risk than direct changeover, where the old system is simply switched off, though it costs more because of duplicated effort.

  1. AParallel runningCorrect
  2. BDirect changeover
  3. CPhased implementation
  4. DPilot implementation

Explanation

Parallel running means both old and new systems operate simultaneously on the same data so outputs can be compared. Direct changeover replaces the old system at once with no overlap. Phased implementation introduces the system in stages by module, and pilot implementation uses one location or department first.

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