Test Bank Docx Acquiring Information Systems and Ch13

Package Title: Chapter 13, Testbank

Course Title: Rainer, IS 5e

Chapter Number: 13

Question Type: Multiple Choice

1) Paychex provides a ____ to its customers that are primarily ____ businesses.

a) PaaS; large

b) PaaS; small and medium

c) SaaS; large

d) SaaS; small and medium

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

2) Paychex original development model was _______.

a) agile development

b) end-user development

c) joint application design

d) traditional waterfall

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

3) The first step in the information systems planning process is to ________.

a) analyze the organization’s strategic plan

b) consider potential IS development projects

c) create an IS strategic plan

d) evaluation the potential IT architecture

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

4) The _________ identifies the firm’s overall mission, the goals that follow from that mission, and the broad steps required to reach these goals.

a) IS operational plan

b) IS strategic plan

c) IT architecture

d) Organization strategic plan

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

5) The _________ delineates the way an organization should utilize its information resources to accomplish its mission.

a) IS operational plan

b) IS strategic plan

c) IT architecture

d) Organization strategic plan

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

6) The _________ is a set of long-range goals that describe the IT infrastructure and identify the major IT initiatives need to achieve the organization’s goals.

a) IS operational plan

b) IS strategic plan

c) IT architecture

d) organization strategic plan

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

7) The _________ consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan.

a) IS operational plan

b) IT architecture

c) organization mission

d) organization strategic plan

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

8) _________ is a managerial aspect of the IT architecture.

a) How IT decisions will be made

b) Networking

c) The applications software

d) The operating system

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

9) _________ is a technical aspect of the IT architecture.

a) Functional area manager involvement

b) How IT decisions will be made

c) How the IT department will be managed

d) The applications software

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

10) Which of the following is NOT an objective of the IT strategic plan?

a) It must be aligned with the organization’s strategic plan.

b) It must efficiently allocate IS development resources among competing projects.

c) It must meet the needs of every functional area to ensure employee buy-in.

d) It must provide for an IT architecture that seamlessly networks users, applications, and databases.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

11) The IT steering committee is comprised of ________.

a) board members

b) C-level executives

c) top-level IT managers

d) managers from each functional area

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

12) _________ is NOT a major task of the IT steering committee.

a) Approving the allocation of resources for the MIS function

b) Establishing performance measures for the MIS function and ensuring they are met

c) Linking corporate strategy with IT strategy

d) Training the top managers from each functional area

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

13) The _________ is/are a prioritized inventory of present applications and a detailed plan of projects to be developed or continued during the current year.

a) application portfolio

b) constraints of the IS function

c) IS environment

d) objectives of the IS function

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

14) The _________ is/are the technological, financial, personnel, and other resource limitations on the IS function.

a) application portfolio

b) constraints of the IS function

c) IS environment

d) objectives of the IS function

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

15) The _________ is/are a summary of the information needs of the individual functional areas and of the organization as a whole.

a) application portfolio

b) constraints of the IS function

c) IS environment

d) objectives of the IS function

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

16) The _________ is/are the best current estimate of the goals of the IS function.

a) application portfolio

b) constraints of the IS function

c) IS environment

d) objectives of the IS function

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

17) _________ costs are those costs that remain the same regardless of any change in the company’s activity level. The CIO’s salary is an example of a _________ cost.

a) Fixed; fixed

b) Fixed; variable

c) Variable; fixed

d) Variable; variable

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

18) _________ is a method to convert future values of benefits to their present-value equivalent by “discounting” them at the organization’s cost of funds.

a) Breakeven analysis

b) The business case approach

c) NPV

d) ROI

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

19) _________ measures management’s effectiveness in generating profits with its available assets by dividing the net income generated by a project by the average assets invested in the project.

a) Breakeven analysis

b) The business case approach

c) NPV

d) ROI

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

20) _________ determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project.

a) Breakeven analysis

b) The business case approach

c) NPV

d) ROI

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

21) _________ involves system developers writing a business case to justify funding one or more specific applications or projects.

a) Breakeven analysis

b) The business case approach

c) NPV

d) ROI

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

22) If a company doesn’t want to write any computer code, it would choose to ________.

a) custom-write an entire application

b) customize a prewritten application

c) outsource the application

d) use a prewritten application

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

23) If a company wants to write some computer code, it would choose to ________.

a) custom-write an entire application

b) customize a prewritten application

c) outsource the application

d) use a prewritten application

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

24) If a company wants to write all new computer code, it would choose to ________.

a) custom-write an entire application

b) customize a prewritten application

c) outsource the application

d) use a prewritten application

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

25) _________ is an advantage of the buy option.

a) Control

b) Modification

c) Integration

d) Time

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

26) _________ is a disadvantage of the buy option.

a) Availability

b) Control

c) Hiring

d) Time

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

27) The 80/20 rule means that if the software meets _________ percent of the company’s needs, then the company should modify _________ percent of its business processes to use the software.

a) 20; 20

b) 20; 80

c) 80; 20

d) 80; 80

Difficulty: Medium

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

28) A(n) ____________ is an agent or a vendor who assembles the software needed by enterprises and then packages it with services such as development, operations, and maintenance.

a) ASP

b) ERP

c) PaaS

d) SaaS

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

29) _________ is a method of delivering software in which a vendor hosts the applications and provides them as a service to customers over a network, typically the internet.

a) ASP

b) ERP

c) PaaS

d) SaaS

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

30) SaaS is a method of delivering _________ in which a vendor hosts the applications and provides them as a service to customers over a network, typically the internet.

a) a platform

b) an architecture

c) hardware

d) software

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

31) If a company acquires IT applications from outside contractors or external organizations, it is called ________.

a) insourcing

b) onshoring

c) outsourcing

d) reverse outsourcing

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

32) Insourcing is also called ________.

a) nearshoring

b) onshoring

c) outsourcing

d) reverse outsourcing

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

33) Starchup is a _______ provider that _______.

a) IaaS; helps entrepreneurs build apps quickly

b) IaaS; provides apps to dry cleaners

c) SaaS; helps entrepreneurs build apps quickly

d) SaaS; provides apps to dry cleaners

Difficulty: Easy

Section Reference 1: IT’s About Business 13.1

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

34) Gigster is part of the _______ economy.

a) app

b) quoting

c) sharing

d) technology

Difficulty: Hard

Section Reference 1: IT’s About Business 13.1

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

35) Which BEST describes Gigster’s business model?

a) It provides access to experienced IT professionals for small, independently-owned companies that do not have the budget for in-house IT groups.

b) It provides on-demand access to experienced programmers and developers for entrepreneurs who do not possess the expertise to bring app ideas to market.

c) It provides access to any number of tech-industry professionals with a variety of experience to telecommuting professionals who require IT assistance.

d) It provides on-demand access to a variety of people working in creative spaces for households, businesses, or individuals in need of their services.

Difficulty: Medium

Section Reference 1: IT’s About Business 13.1

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Application

Standard 1: AACSB || Technology

36) Gigster and Starchup’s relationship can be described as ______.

a) a partnership

b) competitors

c) adversarial

d) B2C

Difficulty: Easy

Section Reference 1: IT’s About Business 13.1

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

37)

In spring 2019 there was a rash of condominium bicycle thefts in Toronto, bicycles with ______on them were not stolen.

a) good locks

b) good insurance

c) GPS locator devices

d) RFID locator devices

Difficulty: Easy

Section Reference 1: IT’s About Business 13.2

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

38) Security codes to enter to access the condominium building are not secure because ____ .

a) There are many apps that can break codes in matter of minutes.

b) There are many websites that sell codes for different condominium buildings

c) One can look online and find videos and websites that describe the methods to change security access codes and set up new access codes for many condominium entry systems.

d) Many web sites with the help of a web cam, can help you to break the code for a fee.

Difficulty: Medium

Section Reference 1: IT’s About Business 13.2

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

39) It turned out that the rash of bicycle thefts in spring 2019 in Toronto had one thing in common_____.

a) the same type of entry access system

b) the same type of bike look system

c) the same building management company

d) The same bike brand and model

Difficulty: Easy

Section Reference 1: IT’s About Business 13.2

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

40) Which of the following is the correct order of the SDLC?

a) analysis, investigation, design, implementation, programming/testing, operation/maintenance

b) analysis, investigation, design, programming/testing, implementation, operation/maintenance

c) investigation, analysis, design, implementation, programming/testing, operation/maintenance

d) investigation, analysis, design, programming/testing, implementation, operation/maintenance

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

41) The first stage of the SDLC is ________.

a) analysis

b) design

c) investigation

d) programming

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

42) _________ are employees from all functional areas and levels of the organization who interact with the system, either directly or indirectly.

a) Programmers

b) Systems analysts

c) Technical specialists

d) Users

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

43) _________ are IS professionals who specialize in analyzing and designing information systems.

a) Programmers

b) Systems analysts

c) Technical specialists

d) Users

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

44) _________ are IS professionals who either modify existing computer programs or write new programs to satisfy user requirements.

a) Programmers

b) Systems analysts

c) Technical specialists

d) Users

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

45) _________ are experts on a certain type of technology.

a) Programmers

b) Systems analysts

c) Technical specialists

d) Users

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

46) Users have the greatest involvement in the _________ stage of the SDLC.

a) design

b) programming

c) implementation

d) investigation

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

47) System developers have the greatest involvement in the _________ stage of the SDLC.

a) analysis

b) investigation

c) operation

d) testing

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

48) Systems _________ addresses the business problem or business opportunity by means of a feasibility study.

a) analysis

b) design

c) investigation

d) operation

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

49) _________ feasibility determines whether the company can develop or otherwise acquire the hardware, software, and communications components needed to solve the business problem.

a) Behavioral

b) Competitive

c) Economic

d) Technical

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

50) _________ feasibility determines whether the project is an acceptable financial risk and, if so, whether the organization has the necessary time and money to successfully complete the project.

a) Behavioral

b) Competitive

c) Economic

d) Technical

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

51) _________ feasibility addresses the human issues of the systems development project.

a) Behavioral

b) Competitive

c) Economic

d) Technical

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

52) Your company’s employee base is mostly comprised of older people who generally dislike and distrust technology. This means the _________ feasibility of implementing a new system is low.

a) behavioral

b) competitive

c) economic

d) technical

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Application

Standard 1: AACSB || Technology

53) The primary purpose of the systems _________ stage is to gather information about the existing system to determine the requirements for an enhanced system or a new system.

a) analysis

b) design

c) investigation

d) operation

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

54) The end product of the _________ stage is a set of system requirements.

a) analysis

b) design

c) investigation

d) operation

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

55) The deliverable of the system _________ phase is the set of technical system specifications.

a) analysis

b) design

c) investigation

d) programming

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

56) Adding functions after the project has been initiated causes ________.

a) direct deployment

b) low feasibility

c) quality issues

d) scope creep

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

57) A _________ conversion involves shutting the old system off and turning the new system on at a certain point in time.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

58) _________ conversion is the least expensive.

a) Direct

b) Parallel

c) Phased

d) Pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

59) _________ conversion is the most risky.

a) Direct

b) Parallel

c) Phased

d) Pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

60) A _________ conversion introduces the new system in one part of the organization.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

61) A _________ conversion introduces components of the new system in stages.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

62) Your company decides to implement the manufacturing module of SAP before implementing payroll. This is an example of _________ conversion.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Application

Standard 1: AACSB || Technology

63) Your company decides to implement SAP in the United States before implementing it in Canada. This is an example of _________ conversion.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Application

Standard 1: AACSB || Technology

64) A _________ conversion involves running the old and new systems at the same time.

a) direct

b) parallel

c) phased

d) pilot

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

65) _________ is a group-based tool for collecting user requirements and creating system designs.

a) Agile development

b) End-user development

c) JAD

d) RAD

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

66) _________ is a systems development method that can combine tools to rapidly produce a high-quality system.

a) Agile development

b) End-user development

c) JAD

d) RAD

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

67) _________ is a software development methodology that delivers functionality in rapid iterations which are usually measured in weeks.

a) Agile development

b) End-user development

c) JAD

d) RAD

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

68) _________ is an approach in which the organization’s end users develop their own applications with little or no formal assistance from the IT department.

a) Agile development

b) End-user development

c) JAD

d) RAD

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

69) In the first RAD stage, developers use _________ sessions to collect user requirements.

a) Agile development

b) end-user development

c) ICASE

d) JAD

Difficulty: Medium

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

70) RAD uses _________ tools to quickly structure requirements and develop prototypes.

a) Agile development

b) end-user development

c) ICASE

d) JAD

Difficulty: Medium

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

71) The scrum approach is one type of ________.

a) Agile development

b) end-user development

c) JAD

d) RAD

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

72) The _________ is the scrum approach typically replaces a project manager.

a) product owner

b) program developer

c) scrum master

d) team

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

73) The _________ represents the business users and any other stakeholders in the project.

a) product owner

b) program developer

c) scrum master

d) team

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

74) Scrum sprints typically last 2–4 ________.

a) hours

b) days

c) weeks

d) years

Difficulty: Medium

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

75) The biggest problem associated with end-user development is ________.

a) availability

b) cost

c) security

d) time

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

76) ________________ development is closely linked with the idea of web services and service-oriented architectures.

a) Agile

b) Component-based

c) End-user

d) Object-oriented

Difficulty: Medium

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Analysis

Standard 1: AACSB || Technology

77) _________ are the fundamental elements in object-oriented development and represent tangible, real-world entities.

a) Behaviors

b) Objects

c) Operations

d) Properties

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

78) Which of the following is an advantage of the traditional SDLC?

a) Bypasses the IS department and avoids delays

b) Enforces quality by maintaining standards

c) Involves many users in the development process

d) Works wells for ill-defined problems

Difficulty: Easy

Section Reference 1: 13.4

Section Reference 2: 13.3

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Learning Objective 2: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

79) Which of the following is an advantage of prototyping?

a) Bypasses the IS department and avoids delays

b) Enforces quality by maintaining standards

c) Involves many users in the development process

d) Works wells for ill-defined problems

Difficulty: Easy

Section Reference 1: 13.4

Section Reference 2: 13.3

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Learning Objective 2: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

80) Which of the following is an advantage of JAD?

a) Bypasses the IS department and avoids delays

b) Enforces quality by maintaining standards

c) Involves many users in the development process

d) Works wells for ill-defined problems

Difficulty: Easy

Section Reference 1: 13.4

Section Reference 2: 13.3

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Learning Objective 2: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

81) Which of the following is an advantage of end-user development?

a) Bypasses the IS department and avoids delays

b) Enforces quality by maintaining standards

c) Involves many users in the development process

d) Works wells for ill-defined problems

Difficulty: Easy

Section Reference 1: 13.4

Section Reference 2: 13.3

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Learning Objective 2: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

82) Joseph and his marketing team want to create a new app where customers can give feedback on various products. They have asked the technical team to develop the app with four sprints, each two weeks apart. It is important to them that they be able to change the specs of the app based on customer feedback. This app would best be be developed using ____________ development.

a) joint application

b) agile

c) end-user

d) object-oriented

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

83) Conrad and his team are under pressure to develop their product for the university before the semester starts and they have only two weeks. Which type of development would be least helpful for them?

a) traditional development

b) agile development

c) rapid application development

d) prototyping

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

84) Public Services and Procurement Canada wanted to save money on payroll processing by adopting one common payroll system that was more comprehensive and versatile and accessible by all departments and agencies with a(n) ______

a) Email system

b) MRP

c) SCM

d) Modern database approach

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

85) Information systems and functional departments usually set targets on.

a) budgets and marketing objectives

b) quality control and accuracy

c) number of concurrent users

d) legacy systems compatibility

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question type: True/False

86) Paychex switched from the traditional waterfall development method to agile development to deploy software more quickly.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

87) Paychex is an IaaS provider.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

88) One of the most important things to understand about the service that Paychex provides is that if the system were to go down for an extended period, customers would leave very quickly.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

89) DevOps is a methodology combining IT developments teams with operations teams throughout the development and deployment of IT solutions.

Difficulty: Easy

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension

Standard 1: AACSB || Technology

90) While DevOps as a deployment and development method is gaining popularity, most experts agree that the waterfall method is much more effective and in the end, will result in a stronger product.

Difficulty: Medium

Section Reference 1: Opening Case

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Analysis

Standard 1: AACSB || Technology

91) Small organizations do not need a formal process for planning for and justifying IT applications.

Difficulty: Medium

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Analysis

Standard 1: AACSB || Technology

92) The IT architecture encompasses both the technical and managerial aspects of information resources.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

93) The IT architecture focuses on the technical aspects of information resources.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

94) The existing IT architecture is an absolute constraint on the development of an IT strategic plan.

Difficulty: Medium

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Analysis

Standard 1: AACSB || Technology

95) The IT steering committee is comprised of the top IT managers in an organization.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

96) Fixed costs change when a company decides to implement a cloud computing solution.

Difficulty: Hard

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

97) Costs of a system end when the system is installed.

Difficulty: Medium

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

98) Database design choices can affect an organization decades after they are made even when hardware and software is replaced; the Y2K problem was a perfect illustration of this.

Difficulty: Hard

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

99) It is easy to assess the benefits of IT because they are so tangible.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

100) As long a new technology is implemented, it will give organizations the benefits they seek.

Difficulty: Hard

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Evaluation

Standard 1: AACSB || Technology

101) Companies can buy or lease prewritten applications.

Difficulty: Medium

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

102) Purchasing a prewritten application is always the most cost-effective and time-saving solution.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

103) A single software package rarely satisfies all of an organization’s needs.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

104) An ASP hosts both an application and a database for each customer.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

105) SaaS customers own the software but it is offered at a cheaper price.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

106) Open-source software is an alternative source of applications.

Difficulty: Medium

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

107) Communication, control, and cost are the three benefits of outsourcing.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

108) Being an informed user will help you take advantage of custom development.

Difficulty: Hard

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Synthesis

Standard 1: AACSB || Technology

109) Gigster helps entrepreneurs bring an app to market because entrepreneurs frequently do not have the money or the skills to develop an app on their own.

Difficulty: Easy

Section Reference 1: IT’s About Business 13.1

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

110) In spring 2019 there was a rash of condominium bicycle thefts in Toronto, all in areas where people treasure their bicycles and use them to travel around the city.

Difficulty: Easy

Section Reference 1: IT’s About Business 13.2

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

111) Only IT people are involved in the SDLC.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

112) Technology is available at a cost that is affordable to you, but you know your employees will refuse to use anything new. This means the feasibility of your IT project is high.

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Analysis

Standard 1: AACSB || Technology

113) A hidden backlog contains the projects that the IT department is not aware of because of low feasibility.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

114) IT people are supposed to identify the system requirements in the systems analysis stage.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

115) Scope creep is necessary even though it is really expensive because it allows users to request things they really need.

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Analysis

Standard 1: AACSB || Technology

116) Most systems are implemented with direct conversion because it is the cheapest.

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

117) Pilot conversion is the least used conversion strategy.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

118) The direct and parallel conversion strategies are not used very frequently by businesses.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

119) RAD produces prototypes rather than functional components.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

120) The development process in RAD is iterative.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

121) Agile development ensures that the software includes every possible feature the user will require.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

122) The core tenet of agile development is to do only what you have to do to be successful right now.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

123) End-user development is also called Shadow IT.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

124) Upper CASE tools automate the early stages of the SDLC.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

125) Upper CASE tools automate the later stages of the SDLC.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

126) Lower CASE tools automate the systems investigation, analysis, and design stages of the SDLC.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

127) Lower CASE tools automate the programming, testing, operation, and maintenance stages of the SDLC.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

128) End-user development requires a high degree of assistance from the IT department.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

129) Apps built in a Windows environment typically do not operate in a Linux environment.

Difficulty: Easy

Section Reference 1: Closing Case

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question Type: Text Entry

130) A(n) ___ is a prioritized list of both existing and potential IT applications.

Difficulty: Easy

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

131) A(n) ___ is an agent or a vendor who assembles the software needed by enterprises and then packages it with services such as development, operations, and maintenance.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

132) ___ is a method of delivering software in which a vendor hosts the applications and provides them as a service to customers over a network, typically the internet.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

133) ___ are a method of developing applications that run independently of the base operating system of the server.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

134) ___ is the process of steadily adding new computer code to a software project when the new computer code is written and tested.

Difficulty: Easy

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

135) A(n) ___ is a list of projects that the IT department is not aware of.

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

136) Systems ___ describes how the system will resolve the business problem.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

137) Adding functions after the project has been initiated causes ___.

Difficulty: Easy

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

138) ___ is a group-based tool for collecting user requirements and creating system designs.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

139) ____ is a systems development method that can combine tools to rapidly produce a high-quality system.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

140) ___ is a software development methodology that delivers functionality in rapid iterations which are usually measured in weeks.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

141) ___ is an approach in which the organization’s end users develop their own applications with little or no formal assistance from the IT department.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

142) ___ uses standard components to build applications.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

143) ___ is based on a different view of computer systems than that perception that characterizes traditional development approaches.

Difficulty: Easy

Section Reference 1: 13.4

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Bloomcode: Knowledge

Standard 1: AACSB || Technology

Question Type: Essay

144) List and describe the four common approaches for conducting a cost-benefit analysis. What are the difficulties associated with conducting these approaches for IT projects? What approach would you use to justify the implementation of a website that allows customers to post comments on it and why?

Difficulty: Medium

Section Reference 1: 13.1

Learning Objective 1: Discuss the different cost–benefit analyses that companies must take into account when formulating an IT strategic plan.

Bloomcode: Comprehension, Application, Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: Cost-benefit analysis:
NPV = convert future values of benefits to their present-value equivalent by “discounting” them at the organization’s cost of funds
ROI = effectiveness in generating profits with its available assets
Breakeven analysis = how many years will it take for the benefits to equal the investment
Business case approach = business case to justify implementation
Difficulties = the cost of the system may be easy to calculate (assuming an on-premise installation), but variable costs may be hard to calculate (assuming a cloud computing solution) and other after-installation costs are involved (training, maintenance, updating, etc.); benefits are hard to calculate since many are intangible (customer satisfaction, employee satisfaction, usability, etc.); business case approach is probably the best since customers basically need to be allowed to post comments but customer satisfaction is hard to measure – businesses would have to consider how much time it will take to monitor the site – how much will that cost?

145) List and describe the four fundamental questions/decisions/strategies for acquiring IT applications (including the sub-parts). You’ve justified your IT investment, so now you need to decide how you want to pursue it. You are an entrepreneur who wants to start your own small business; how would you answer these questions? Now assume you are the CEO of a multi-billion-dollar company; how would you answer these questions?

Difficulty: Medium

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension, Application, Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: How much computer code does the company want to write? Prewritten (no code), customize prewritten (some code), custom-write (all new code); small – either prewritten (could actually be cheaper) or custom-write/customize if the student knows programming or knows someone who can program; large – any option is good because they have the money to do what they want – time is the big issue with customization so it may be easiest to purchase prewritten but that could harm strategic advantage (have the same software as everyone else) – so it depends on the strategy
How will the company pay for the application? Buy or lease; small – leasing may be the best option to get the business started; large – this depends on the student’s perspective of buying/leasing – some feel buying is cheaper in the long run while others feel leasing is the best because upgrading is often easier (but it is more expensive in the long-run)
Where will the application run? In-house or outsourcing; small - Outsourcing may be the cheapest way of doing this so the company doesn’t have to buy hardware or hire IT personnel; large – could make the same argument as small but many large organizations already have an IT staff that can manage these things in-house
Where will the application originate? Open-source, vendor, customized, in-house, customized; small – open-source or outsourcing could be viable options because it is cheaper but see above arguments; large – see above arguments

146) What is the difference between outsourcing and offshoring? If you were the CEO of a large corporation, would you outsource, offshore, or insource (why or why not)?

Difficulty: Medium

Section Reference 1: 13.2

Learning Objective 1: Discuss the four business decisions that companies must make when they acquire new applications.

Bloomcode: Comprehension, Application, Analysis

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: outsourcing = acquiring IT applications from outside contractors or external organizations (could be in the US or from a different country); offshoring = outsourcing to places like India and China (NOT in the US); risks of outsourcing = lose control over those resources so could lose competitive advantage and may not actually save money; risks of offshoring = poor communication; insourcing = need the expertise

147) List and describe the six stages of the SDLC. What role would you play in the SDLC if your company was thinking about implementing an ERP system; if you were an HR manager; if you were an IT programmer?

Difficulty: Medium

Section Reference 1: 13.3

Learning Objective 1: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Comprehension, Application

Standard 1: AACSB || Communication

Standard 2 : AACSB || Technology

Solution: Systems investigation = feasibility study to see if a new system is necessary; HR manager
Systems analysis = what does the new system need to do; HR manager
Systems design = describe how the new system will meet business needs; programmer
Programming/testing = create the new system and test it; programmer (HR manager does some testing)
Implementation = start the new system and replace the old one (four options for cut-over); programmer but HR manager may have some input into which option is used
Operation/maintenance – use the new system and modify it to address problems or meet needs; HR manager mostly but programmer for addressing problems

148) You decide the traditional SDLC approach has too many disadvantages. Which alternative would you use and why? HINT: You should discuss the advantages of the method you choose and at least one disadvantage supporting why you would not choose the other methods.

Difficulty: Medium

Section Reference 1: 13.4

Section Reference 2: 13.3

Learning Objective 1: Describe alternative development methods and the tools that augment these methods.

Learning Objective 2: Enumerate the primary tasks and the importance of each of the six processes involved in the systems development life cycle.

Bloomcode: Application

Standard 1: AACSB || Communication

Standard 2 : AACSB || Analytic

Standard 3 : AACSB || Technology

Solution: