Acquiring IT Applications And Infrastructure

File: ch10, Chapter 10: Acquiring IT Applications

True/False

1. Organizations typically move slowly to acquire new information technologies due to the risks involved.

Ans: False Response: See page 302

2. Organizations today can buy, lease, or build their own information systems.

Ans: True Response: See page 302

3. The first step in the IT acquisition process is to create the IT architecture.

4. The IT development process is complex.

5. The application portfolio in an organization is a set of recommended applications resulting from the planning and justification process in application development.

6. The application portfolio in an organization is a set of recommended applications resulting from IT architecture creation process in application development.

7. Planning the acquisition of IT resources starts with technical details of the proposed application.

8. Planning the acquisition of IT resources starts with an analysis of the organization’s strategic plan.

9. The IT planning process begins with an analysis of the organization’s IT infrastructure.

10. The organizational strategic plan is the only input needed in developing the IT strategic plan.

Ans: False Response: See pages 306-307

11. The IT architecture delineates the way an organization’s information resources should be used to accomplish its mission.

12. The IT infrastructure delineates the way an organization’s information resources should be used to accomplish its mission.

13. The IT architecture includes both technical and managerial aspects of information resources.

14. The IT architecture includes only the managerial aspects of information resources.

Ans: False Response: See page 306 15. The IT strategic plan is a set of long-range goals that describe the IT infrastructure and major IS initiatives needed to achieve the goal of the organization.

16. The IT strategic plan states the mission of the IS department.

17. The IT infrastructure states the mission of the IS department.

18. The IS operational plan is a set of projects that will be executed by the IS department and by functional area managers.

Ans: True Response: See pages 306-307

19. Fixed costs include infrastructure cost, cost of IT services, and IT management cost.

20. The cost of a system continues after it is installed.

21. Evaluating the benefits of IT projects is typically more complex than evaluating their costs.

22. Evaluating the costs of IT projects is typically more complex than evaluating their benefits.

Ans: False Response: See page 308 23. Benefits are harder to quantify than costs.

24. Costs are harder to quantify than benefits.

25. In many cases, IT projects generate intangible benefits that may be very desirable but difficult to quantify.

26. Financial analyses must consider tangible benefits and intangible benefits.

27. Financial analyses of potential IT projects need only consider tangible benefits.

28. The Net Present Value method of cost-benefit analysis works well in situations where the costs and benefits of the potential IT project are well defined or tangible enough to convert them into monetary values.

29. The Return on Investment method of cost-benefit analysis measures the effectiveness of management in generating profits with its available assets.

Ans: True Response: See page 308 30. The Net Present Value method of cost-benefit analysis measures the effectiveness of management in generating profits with its available assets.

31. Buying an existing package can be a cost-effective and time-saving strategy compared with developing the application in-house.

32. Developing an application in-house can be a cost-effective and time-saving strategy compared with buying an existing application.

33. Organizational needs are rarely fully satisfied by buying one software package.

34. Organizational needs are typically fully satisfied by buying one software package.

35. The buy option is particularly attractive if the software vendor allows the company to modify the package to meet its needs.

36. The buy option is particularly attractive when the software is very expensive.

37. Companies should not consider changing their business processes to accommodate leased packages.

38. Companies should consider changing their business processes to accommodate leased packages, if those packages meet 80 percent of the organizations’ needs.

39. Leasing can be especially attractive to small and medium-size organizations that cannot afford major investments in software.

Ans: True Response: See page 310-311

40. Leasing is more typically more attractive to large organizations than to small organizations.

Ans: False Response: See page 310-311

41. Insourcing application development is usually more time consuming and expensive than buying or leasing.

42. Insourcing application development often leads to a better fit with the specific organizational requirements.

43. Insourcing application development is usually less time consuming and less expensive than buying or leasing.

44. Insourcing application development does not often lead to a better fit with the specific organizational requirements.

Ans: False Response: See page 311 45. The systems development life cycle consists of sequential processes by which information systems are developed.

46. Today, developers use the waterfall approach on the majority of systems development projects.

47. The SDLC has three major advantages: control, accountability, and error detection.

48. The SDLC has three major advantages: cost, speed of development, and error detection.

49. The later in the development process that errors are detected, the more expensive they are to correct.

50. The earlier in the development process that errors are detected, the less expensive they are to correct.

51. The earlier in the development process that errors are detected, the more expensive they are to correct.

52. The SDLC is relatively inflexible.

53. The SDLC is quite flexible because it has a set sequence of steps to follow.

54. The SDLC discourages changes to user requirements once they have been established.

55. The SDLC encourages changes to user requirements once they have been established.

56. The SDLC is time-consuming and expensive.

57. The systems investigation stage begins with the business problem or opportunity.

58. The systems investigation stage begins with the IT architecture.

59. The most important task in the systems investigation stage is developing the technical specifications for the new system.

60. Technical feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project. Ans: False Response: See page 313

61. Resistance to a new information system may be overt or covert.

62. Sabotaging the new system is a form of overt resistance.

63. Sabotaging the new system is a form of covert resistance.

64. Doing your job the way you have always done it in spite of the new system is a form of overt resistance.

65. The most difficult task in systems analysis is identifying the specific information requirements that the system must satisfy.

66. The most difficult task in systems analysis is identifying the technical specifications of the new system.

67. Systems analysis describes how a system will solve the business problem, and systems design describes what the system must do to accomplish the task.

Ans: False Response: See page 314 68. The deliverable of the systems analysis stage is the technical design.

69. Logical systems design specifications are abstract.

70. Physical systems design specifications are abstract.

71. Once all participants approve systems specifications, they should not be changed.

72. Once all participants approve systems specifications, they should be changed as needed to keep up with changing business conditions.

73. Writing computer code is typically a scientific process that can be engineered.

74. Writing computer code is as much art as it is science.

75. In structured programming, the loop technique allows the logic flow to branch, depending on certain conditions being met.

76. In structured programming, the loop technique enables the program to execute the same program, or parts of the program, until certain conditions are met.

77. In structured programming, the decision technique enables the program to execute the same program, or parts of the program, until certain conditions are met.

78. In structured programming, the sequence technique enables the program to execute the same program, or parts of the program, until certain conditions are met.

79. Testing occurs only at the end of the programming stage.

80. Testing occurs continually throughout the programming stage.

81. Syntax errors are easier to find than logic errors.

82. Logic errors are easier to find than syntax errors.

Ans: False Response: See page 316 83. Syntax errors permit the program to run.

84. Logic errors permit the program to run.

85. Parallel conversion is the process where the old system and the new system operate simultaneously for a period of time.

86. Direct conversion is the process where the old system is cut off and the new system is turned on at a certain point in time.

87. Parallel conversion is the process where the old system is cut off and the new system is turned on at a certain point in time.

88. Pilot conversion is the process where the new system is introduced in one part of the organization.

89. Phased conversion is the process where the new system is introduced in one part of the organization.

90. Phased conversion is the process where components of the new system are introduced in stages.

Ans: True Response: See page 317 91. Pilot conversion is the process where the components of the new system are introduced in stages.

92. Parallel conversion is the safest process.

93. Direct conversion is the safest process.

94. Parallel conversion is the riskiest process.

95. Direct conversion is the riskiest process.

96. Maintenance ends when the new system is implemented and has run long enough for a systems audit.

97. Maintenance continues for the life of the system.

98. In the prototyping approach, developers do not try to obtain a complete set of user requirements.

Ans: True Response: See page 318 99. In the prototyping approach, developers try to obtain a complete set of user requirements.

100. The main advantage of the prototyping approach is that it speeds up the development process.

Ans: True Response: See pages 318-319

101. The main advantage of the systems development life cycle is that it speeds up the development process.

Ans: False Response: See pages 318-319

102. Prototyping is an iterative process with a great deal of user involvement.

103. The systems development life cycle is an iterative process with a great deal of user involvement.

104. Prototyping allows the users to clarify their information requirements as they use the prototype.

105. The systems development life cycle allows users to clarify their information requirements as they use the system.

106. Prototyping generally produces better documentation than the SDLC. Ans: False Response: See page 319

107. Prototyping may not produce adequate documentation.

108. In joint application design, systems analysts interview or directly observe potential users of the new information system individually to understand each user’s needs.

109. The tools used to automate the early stages of the SDLC (systems investigation, analysis, and design) are called upper CASE tools.

110. The tools used to automate later stages of the SDLC (programming, testing, operation, and maintenance) are called lower CASE tools.

111. The tools used to automate the early stages of the SDLC (systems investigation, analysis, and design) are called lower CASE tools.

112. The tools used to automate later stages of the SDLC (programming, testing, operation, and maintenance) are called upper CASE tools.

113. CASE tools require more extensive and accurate definition of user requirements.

Ans: True Response: See page 319 114. CASE tools are easy to customize.

115. The main advantage of rapid application development is the active involvement of users in the development process.

116. End-user development usually results in applications that are well documented.

117. Objects represent tangible, real-world entities.

118. Objects represent abstract ideas of systems developers.

Ans: False Response: See page 320-321

119. Outsourcing is the use of outside contractors or external organizations to acquire IT services.

120. An application service provider is a vendor who assembles the software needed by enterprises and packages them with outsourced development, operations, maintenance, and other services.

121. The essential difference between an application service provider and an outsourcer is that an ASP will manage application servers in a centrally controlled location, rather than on a customer’s site. Ans: True Response: See page 321-322

122. The most difficult task in evaluating a vendor and software package is to determine a set of detailed criteria for choosing the best vendor and package.

123. The most difficult task in evaluating a vendor and software package is to determine the financial health and “staying power” of the vendor.

124. Service level agreements delineate the division of work between a company and its vendors.

Multiple Choice

1. IT applications can be developed in which of the following ways? a) build the system in-house b) buy an application and install it c) lease software from an application service provider d) outsource it e) all of the above

Ans: e Response: See page 302

2. The information systems planning process proceeds in which order? a) organization mission – organization strategic plan – IS strategic plan – new IT architecture b) organization mission – IS strategic plan – organization strategic plan – IS operational plan c) organization strategic plan – organization mission – IS strategic plan – new IT architecture d) IT architecture – IS strategic plan – organization strategic plan – organization mission e) IS development projects – IS operational plan – new IT architecture – organization mission

Ans: a Response: See page 306-307 3. A typical IS operational plan contains which of the following elements? a) mission of the IS function b) summary of the information needs of the functional areas and of the entire organization c) IS function’s estimate of its goals d) application portfolio e) all of the above

Ans: e Response: See page 306-307

4. Which of the following is not a part of the typical IS operational plan? a) mission of the IS function b) organizational mission c) IT architecture d) application portfolio e) IS function’s estimate of its goals

Ans: b Response: See page 307

5. Evaluating the benefits of IT projects is more complex than evaluating their costs for which of the following reasons? a) benefits are harder to quantify b) benefits are often intangible c) IT can be used for several different purposes d) probability of obtaining a return from an IT investment is based on the probability of implementation success e) all of the above

6. Evaluating the benefits of IT projects is more complex than evaluating their costs for all of the following reasons except: a) benefits are harder to quantify b) benefits are often tangible c) IT can be used for several different purposes d) probability of obtaining a return from an IT investment is based on the probability of implementation success

7. The _____ method converts future values of benefits to today’s value by “discounting” them at the organization’s cost of funds. a) net present value b) cost-benefit analysis c) return on investment d) internal rate of return e) business case approach

Ans: a Response: See page 308

8. The _____ method measures the effectiveness of management in generating profits with its available assets. a) net present value b) cost-benefit analysis c) return on investment d) internal rate of return e) business case approach

Ans: c Response: See page 308

9. Which of the following are advantages of the buy option for acquiring IS applications? a) many different types of off-the-shelf software are available b) software can be tried out c) saves time d) company will know what it is getting e) all of the above

10. Which of the following is not an advantage of the buy option for acquiring IS applications? a) few types of off-the-shelf software are available, thus limiting confusion b) software can be tried out c) saves time d) company will know what it is getting e) all of the above

11. Which of the following are disadvantages of the buy option for acquiring IS applications? a) software may not exactly meet the company’s needs b) software may be impossible to modify c) company will not have control over software improvements d) software may not integrate with existing systems e) all of the above

Ans: e Response: See page 310 12. Which of the following systems acquisition methods results in software that can be tried out, has been used for similar problems in other organizations, and can save time? a) systems development life cycle b) prototyping c) end-user development d) buy option e) object-oriented development

Ans: d Response: See page 310

13. Which of the following systems acquisition methods results in software that is controlled by another company, may be difficult to enhance or modify, and may not support desired business processes? a) systems development life cycle b) prototyping c) end-user development d) buy option e) component-based development

14. Which of the following systems acquisition methods forces staff to systematically go through every step in the development process and has a lower probability of missing important user requirements? a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) object-oriented development

15. Which of the following systems acquisition methods is time-consuming, costly, and may produce excessive documentation? a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) object-oriented development

16. Place the stages of the systems development life cycle in order: a) investigation – analysis – design – programming – testing – implementation – operation – maintenance b) investigation – design – analysis – programming – testing – implementation – maintenance – operation c) analysis – design – investigation – operation – maintenance – programming – testing – implementation d) investigation – analysis – design – programming – testing – maintenance – operation – implementation

17. The feasibility study addresses which of the following issues? a) economic feasibility b) technical feasibility c) behavioral feasibility d) all of the above

18. The _____ that changes are made in the systems development life cycle, the _____ expensive these changes become. a) sooner, less b) later, less c) more frequently, more d) more extensively, more e) sooner, more

19. ____ feasibility determines if the hardware, software, and communications components can be developed and/or acquired to solve the business problem. a) technical b) economic c) organizational d) behavioral

20. _____ feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project. a) technical b) economic c) organizational d) behavioral

Ans: b Response: See page 313 21. _____ feasibility addresses the human issues of an information systems project. a) technical b) economic c) organizational d) behavioral

22. _____ feasibility concerns a firm’s policies and politics, power structures, and business relationships. a) technical b) economic c) organizational d) behavioral

23. Which of the following is not a part of systems analysis? a) definition of the business problem b) identification of the causes of, and solution to, the business problem c) identification of the information requirements that the solution must satisfy d) identification of the technical specifications of the solution

24. Systems analysts use which of the following techniques to obtain the information requirements for the new system? a) direct observation b) structured interviews c) unstructured interviews d) document analysis e) all of the above

25. Which of the following is not a technique used to obtain the information requirements for the new system? a) direct observation b) structured interviews c) unstructured interviews d) use the system themselves e) document analysis

Ans: d Response: See page 314 26. Which of the following are problems associated with eliciting information requirements? a) business problem may be poorly defined b) users may not know exactly what the business problem is c) users may disagree with each other d) the problem may not be related to information systems e) all of the above

27. _____ is the systems development stage that determines how the information system will do what is needed to solve the business problem. a) systems design b) systems analysis c) systems implementation d) systems development e) operation and maintenance

28. Logical systems design refers to _____, while physical systems design refers to _____. a) the collection of user requirements, the development of software b) what the system will do, how the tasks are accomplished c) how the tasks are accomplished, what the system will do d) the order of task accomplishment, how the tasks are accomplished e) operation of the system, debugging the system

29. Systems design answers the question, _____: a) How will the information system do what it must to obtain a solution to the business problem? b) Why must the information system do what it must to obtain a solution to the business problem? c) What is the problem the information system must address? d) Who will benefit from use of the information system being developed? e) What is the effective operational life of the system?

30. When users ask for added functionality during a systems development project, this is called: a) user-defined software b) scope creep c) bloatware d) out-of-control project e) runaway project

31. Structured design advocates the use of software modules. Which of the following items are advantages of this approach? a) modules can be reused b) modules cost less to develop c) modules are easier to modify d) all of the above

32. Structured programming includes which of the following restrictions? a) each module has one, and only one, function b) each module has one entrance and one exit c) no GOTO statements allowed d) has only three techniques: sequence, decision, loop e) all of the above

33. Which of the following is not a restriction of structured programming? a) each module has multiple functions b) each module has one entrance and one exit c) no GOTO statements allowed d) has only three techniques: sequence, decision, loop e) none of the above

34. In structured programming’s _____ structure, the logic flow branches depending on certain conditions being met. a) decision b) sequence c) decision d) return e) parallel

Ans: a Response: See page 316 35. In structured programming’s _____ structure, the software executes the same program, or parts of it, until certain conditions are met. a) decision b) sequence c) decision d) return e) parallel

36. _____conversion is the process where the old system and the new system operate simultaneously for a period of time. a) parallel b) direct c) pilot d) phased

37. _____ conversion is the process where the old system is cut off and the new system is turned on at a certain point in time. a) parallel b) direct c) pilot d) phased

38. _____ conversion is the process where the new system is introduced in one part of the organization. a) parallel b) direct c) pilot d) phased

39. _____ conversion is the process where components of the new system are introduced in stages. a) parallel b) direct c) pilot d) phased

40. The riskiest type of conversion process is: a) parallel b) direct c) pilot d) phased

41. If a firm shuts down its old COBOL legacy system and starts up the new PeopleSoft ERP system immediately, this is called _____: a) phased conversion b) direct conversion c) parallel conversion d) pilot conversion

42. As systems age, maintenance costs _____: a) decrease b) increase c) stay the same d) remain negligible e) are not considered

43. Maintenance includes which of the following types of activities? a) debugging b) updating the system to accommodate changes in business conditions, but not adding functionality c) adding new functionality to the system d) all of the above

44. Which of the following systems acquisition methods helps clarify user requirements, promotes genuine user participation, and may produce part of the final system? a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) component-based development

45. Which of the following systems acquisition methods may encourage inadequate problem analysis, is not practical with large numbers of users, and may result in a system with lower quality. a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) component-based development

46. The _____ approach to systems development defines an initial list of user requirements, then develops the system in an iterative fashion. a) integrated computer-assisted software engineering b) joint application design c) rapid application development d) prototyping e) systems development life cycle

47. The _____ approach to systems development is a group-based tool for collecting user requirements. a) integrated computer-assisted software engineering b) joint application design c) rapid application development d) prototyping e) systems development life cycle

48. The _____ approach to systems development uses specialized tools to automate many of the tasks in the systems development life cycle. a) integrated computer-assisted software engineering b) joint application design c) rapid application development d) prototyping

Ans: a Response: See page 319 49. Which of the following is not an advantage of the Joint Application Design approach to systems development? a) involves fewer users in the development process b) saves time c) greater user acceptance of the new system d) can produce a system of higher quality

50. Computer-aided software engineering tools provide which of the following advantages? a) can produce systems with longer effective operational lives b) can produce systems that more closely meet user requirements c) can speed up the development process d) can produce systems that are more adaptable to changing business conditions e) all of the above

51. Which of the following is not an advantage of computer-aided software engineering tools? a) can produce systems with longer effective operational lives b) can produce systems that more closely meet user requirements c) can require fewer developers d) can speed up the development process

52. Computer-aided software engineering tools provide which of the following disadvantages? a) produce initial systems that are more expensive to build and maintain b) require more extensive and accurate definition of user requirements c) difficult to customize d) difficult to use with existing systems e) all of the above

53. Which of the following is not a disadvantage of computer-aided software engineering tools? a) produce initial systems that are more expensive to build and maintain b) require more extensive and accurate definition of user requirements c) require more developers d) difficult to customize

Ans: c Response: See page 319 54. Advantages of Rapid Application Development include which of the following? a) active involvement of users in the development process b) faster development process c) system better meets user needs d) reduction in training costs e) all of the above

55. Which of the following systems acquisition methods bypasses the IT department, avoids delays, and results in increased user acceptance of the new system? a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) component-based development

56. Which of the following systems acquisition methods may eventually require maintenance assistance from the IT department, produce inadequate documentation, and result in a system with inadequate interfaces to existing systems? a) systems development life cycle b) prototyping c) end-user development d) external acquisition e) component-based development

57. Which of the following is the most difficult and crucial task in evaluating a vendor and a software package? a) identifying potential vendors b) determining the evaluation criteria c) evaluating vendors and packages d) choosing the vendor and package e) negotiating a contract

Ans: b Response: See page 325-326 Short Answer

1. Differentiate between the IT strategic plan and the IS operational plan.

Response: See pages 306-307

2. Discuss tangible and intangible benefits of a proposed system.

Response: See page 308

3. Describe the various methods of conducting cost-benefit analyses.

4. What is the waterfall approach to systems development?

5. Describe the feasibility study of the SDLC.

6. Compare and contrast the systems analysis and systems design phases of the SDLC.

7. Describe good-enough software.

8. Compare and contrast rapid application development and joint application design.

9. What are application service providers and how do they differ from outsourcing?

Response: See page 321-323 10. Describe the vendor selection process.

Response: See page 325-327