Chapter 14

Project Management: Establishing the Business Value of Systems and Managing Change
True-False 1. uestions Between 30 and 40 percent of all software projects are runaway projects that far exceed original schedule and budget projections. !ns"er: False 2. #ifficulty: Medium $eference: %& ''(

he infor!ation syste!s steering co!!ittee is co!posed of infor!ation syste!s !anagers and end"user !anagers responsible for o#erseeing se#eral specific infor!ation syste!s projects. !ns"er: False #ifficulty: )ard $eference: %& ''*

3.

$n infor!ation syste!s plan contains a state!ent of corporate goals and specifies how infor!ation technology will support the attain!ent of those goals. !ns"er: True #ifficulty: Medium $eference: %& ''+

4.

%f an intended benefit of an % project is i!pro#ed decision !a&ing' !anagers should de#elop a set of !etrics to (uantify the #alue of an i!pro#ed decision. !ns"er: True #ifficulty: Medium $eference: %& ''+

).

*coring !odels are used !ost co!!only to support decisions rather than as the final arbiters of syste! selection. !ns"er: True #ifficulty: Medium $eference: %& '('

+.

ransaction and clerical syste!s that displace labor and sa#e space typically produce !ore !easurable' tangible benefits than !anage!ent infor!ation syste!s !ns"er: True #ifficulty: )ard $eference: %& '('

,.

$ benefit of using -. analysis to e#aluate an infor!ation technology in#est!ent is that it is able to incorporate intangible and soft factors such as benefits and co!plexity costs. !ns"er: False #ifficulty: Medium $eference: %& '('

,,+

/.

%ntangible benefits cannot be i!!ediately (uantified but !ay lead to (uantifiable gains in the long run. !ns"er: True #ifficulty: Easy $eference: %& '('

0.

1ore ti!ely infor!ation is a tangible benefit of infor!ation syste!s. !ns"er: False #ifficulty: Medium $eference: %& '((

10.

he %22 calculates the rate of return fro! an in#est!ent by adjusting the cash inflows produced by the in#est!ent for depreciation. !ns"er: True #ifficulty: Easy $eference: %& '-.

11.

2eal options pricing !odels use the concept of options #aluation borrowed fro! the financial industry. !ns"er: True #ifficulty: Easy $eference: %& '-/

12.

he syste!s analyst is the catalyst for the entire change process and is responsible for !a&ing sure that e#eryone in#ol#ed accepts the changes created by a new syste!. !ns"er: True #ifficulty: Easy $eference: %& '-0

13.

he relationship between users and infor!ation syste!s specialists has traditionally been a proble! area for infor!ation syste!s i!ple!entation efforts. !ns"er: True #ifficulty: Easy $eference: %& '-0

14.

3ser concerns and designer concerns are usually the sa!e at the beginning of the project but !ay di#erge later as the syste! is built. !ns"er: False #ifficulty: Medium $eference: %& '-0

1).

4or!al planning and control tools allow for all aspects of the i!ple!entation process to be controlled or planned. !ns"er: False #ifficulty: Medium $eference: %& '-'

1+.

$ 5antt chart graphically depicts project tas&s and their interrelationships. !ns"er: False #ifficulty: Medium $eference: %& '-'

1,.

-ounteri!ple!entation refers to a deliberate strategy to thwart the i!ple!entation of an infor!ation syste! or an inno#ation in an organi6ation. !ns"er: True #ifficulty: Medium $eference: %& '*.

,0.

1/.

1andatory use of a syste! is one effecti#e way of o#erco!ing user resistance to an infor!ation syste!. !ns"er: False #ifficulty: Medium $eference: %& '*.

10.

he design of jobs' health issues' and the end"user interface of infor!ation syste!s are all considerations in the field of ergono!ics !ns"er: True #ifficulty: Medium $eference: %%& '*.1'*,

20.

he goal of sociotechnical design is to create syste!s with better user interfaces and contribute to fewer health issues. !ns"er: False #ifficulty: )ard $eference: %& '*0

Multi%le-Choice 21.

uestions

%n the chapter case study on $.5. 7dwards' i!pro#e!ents in its infor!ation syste!s projects were achie#ed8 a. b. c. d. pri!arily through i!ple!enting a syste!s"wide #iew of project !anage!ent. through use of a structured' enterprise"wide definitions of project !anage!ent techni(ues' such as re(uire!ents gathering and tas& assign!ent. through the co!bined use of a fra!ewor& for !anaging projects and !anage!ent training. through the adaptation of stricter !easure!ents of project success and failure. #ifficulty: Medium $eference: %%& ''01''2

!ns"er: a 22.

.n a#erage' pri#ate sector % projects underesti!ated budget and deli#ery ti!e of syste!s by8 a. b. c. d. 30 percent 40 percent )0 percent +0 percent #ifficulty: Medium $eference: %& ''(

!ns"er: c

,0/

23.

he !ajor #ariables in project !anage!ent are8 a. b. c. d. scope' ti!e' cost' and perfor!ance. scope' ti!e' cost' (uality' and ris&. ti!e' cost' (uality' perfor!ance' and ris&. ti!e' cost' scope' and perfor!ance. #ifficulty: Medium $eference: %& ''(

!ns"er: b 24.

$ road !ap indicating the direction of syste!s de#elop!ent' the rationale' the current syste!s' new de#elop!ents to consider' the !anage!ent strategy' the i!ple!entation plan' and the budget is called a9n:8 a. b. c. d. project plan. portfolio analysis. infor!ation syste!s plan. enterprise analysis. #ifficulty: Easy $eference: %& ''+

!ns"er: c 2).

wo principal !ethodologies for establishing the essential infor!ation re(uire!ents of the organi6ation as a whole are8 a. b. c. d. enterprise analysis and portfolio analysis. business syste!s planning and critical success factors. enterprise analysis and business syste!s planning. capital budgeting and portfolio analysis. #ifficulty: Medium $eference: %& ''+

!ns"er: b 2+.

he central !ethod used in an enterprise analysis is to8 a. b. c. d. in#entory all of the organi6ation;s infor!ation syste!s projects and assets. perfor! a weighted co!parison of the criteria used to e#aluate a syste!. sur#ey a large sa!ple of !anagers on their objecti#es' decision"!a&ing process' and uses and needs for data and infor!ation. inter#iew a s!all nu!ber of top !anagers to identify their goals and criteria for achie#ing success. #ifficulty: Medium $eference: %& ''+

!ns"er: c

,0,

2,.

he central !ethod used in a strategic analysis is to8 a. b. c. d. in#entory all of the organi6ation;s infor!ation syste!s projects and assets. perfor! a weighted co!parison of the criteria used to e#aluate a syste!. sur#ey a large sa!ple of !anagers on their objecti#es' decision"!a&ing process' and uses and needs for data and infor!ation. inter#iew a s!all nu!ber of top !anagers to identify their goals and criteria for achie#ing success. #ifficulty: Medium $eference: %& '(,

!ns"er: d 2/.

he central !ethod used in a scoring !odel is to8 a. b. c. d. in#entory all of the organi6ation;s infor!ation syste!s projects and assets. perfor! a weighted co!parison of the criteria used to e#aluate a syste!. sur#ey a large sa!ple of !anagers on their objecti#es' decision"!a&ing process' and uses and needs for data and infor!ation. inter#iew a s!all nu!ber of top !anagers to identify their goals and criteria for achie#ing success. #ifficulty: Medium $eference: %& '(2

!ns"er: b 20.

he central !ethod used in a portfolio analysis is to8 a. b. c. d. in#entory all of the organi6ation;s infor!ation syste!s projects and assets. perfor! a weighted co!parison of the criteria used to e#aluate a syste!. sur#ey a large sa!ple of !anagers on their objecti#es' decision"!a&ing process' and uses and needs for data and infor!ation. inter#iew a s!all nu!ber of top !anagers to identify their goals and criteria for achie#ing success. #ifficulty: Medium $eference: %& '(0

!ns"er: a 30.

he wea&ness of enterprise analysis is that8 a. b. c. d. it has a tendency to focus on auto!ating existing processes rather than de#eloping new business processes. there is no particularly rigorous way in which the results can be aggregated into a clear co!pany pattern. what !ay be considered critical to a !anager !ay not be i!portant for the organi6ation as a whole. the (uestions focus too hea#ily on !anage!ent;s critical objecti#es. #ifficulty: Medium $eference: %& '(/

!ns"er: a

,00

31.

$ -*4 approach to establishing an enterprise;s infor!ation re(uire!ents is especially suitable for8 a. b. c. d. distinguishing between indi#idual and organi6ational objecti#es. identifying the &ey entities and attributes of the organi6ation;s data. understanding how organi6ational units define critical data. the de#elop!ent of <**s and 7**s. #ifficulty: )ard $eference: %& '(,

!ns"er: d 32.

=hich !ethod is used to de#elop ris& profiles for a fir!;s infor!ation syste! projects and assets> a. b. c. d. %nfor!ation syste!s plan *coring !odel ?ortfolio analysis -*4 #ifficulty: Medium $eference: %& '(0

!ns"er: c 33.

@ou ha#e been hired by a phar!aceutical co!pany to e#aluate its in#entory of syste!s and % projects. =hich types of projects would be best a#oided> a. b. c. d. $ny high ris& projects $ny low"benefit projects $ll high"ris&' low benefit projects Aone' any project !ight be beneficial #ifficulty: Medium $eference: %& '(0

!ns"er: c 34.

=hich !ethod is used to assign weights to #arious features of a syste!> a. b. c. d. %nfor!ation syste!s plan *coring !odel ?ortfolio analysis -*4 #ifficulty: Easy $eference: %& '(2

!ns"er: b 3).

he criteria used for e#aluation in a scoring !odel are usually deter!ined by8 a. b. c. d. lengthy discussions a!ong the decision"!a&ing group. a -*4 analysis. the %* steering co!!ittee. syste!s analysts. #ifficulty: )ard $eference: %& '(2

!ns"er: a

,02

3+.

he worth of syste!s fro! a financial perspecti#e essentially re#ol#es around the issue of8 a. b. c. d. -*4s. adherence to infor!ation re(uire!ents. asset utili6ation. return on in#ested capital. #ifficulty: Easy $eference: %& '('

!ns"er: d 3,.

he principal capital budgeting !odels for e#aluating infor!ation technology projects are the paybac& !ethod' the accounting rate of return on in#est!ent 92.%:' the net present #alue' and8 a. b. c. d. the future present #alue. the internal rate of return. the external rate of return. 2.?1. #ifficulty: Medium $eference: %& '('

!ns"er: b 3/.

BBBBBBBBBBBBBBBBBBB are all tangible benefits of infor!ation syste!s. a. b. c. d. %!pro#ed asset utili6ation' increased organi6ational learning' and i!pro#ed operations 2educed wor&force' lower outside #endor costs' and increased producti#ity %ncreased producti#ity' reduced wor&force' and increased job satisfaction Cower operational costs' i!pro#ed resource control' and !ore infor!ation #ifficulty: Medium $eference: %& '((

!ns"er: b 30.

BBBBBBBBBBBBBBBBBBB are all intangible benefits of infor!ation syste!s. a. b. c. d. %!pro#ed asset utili6ation' increased organi6ational learning' and i!pro#ed operations 2educed wor&force' lower outside #endor costs' and increased producti#ity %ncreased producti#ity' reduced wor&force' and increased job satisfaction Cower operational costs' i!pro#ed resource control' and !ore infor!ation #ifficulty: Medium $eference: %& '((

!ns"er: a 40.

he paybac& !ethod of capital budgeting8 a. b. c. d. is the a!ount of !oney an in#est!ent is worth' ta&ing into account its cost' earnings' and the ti!e #alue of !oney calculates the rate of return fro! an in#est!ent by adjusting the cash inflows produced by the in#est!ent for depreciation is defined as the rate of return or profit that an in#est!ent is expected to earn' ta&ing into account the ti!e #alue of !oney is a !easure of the ti!e re(uired to pay bac& the initial in#est!ent of a project #ifficulty: Medium $eference: %& '(-

!ns"er: d

,0'

41.

o deter!ine the 2.% of an in#est!ent' you !ust first calculate the8 a. b. c. d. net present #alue. present #alue. a#erage net benefit. %22. #ifficulty: )ard $eference: %& '(+

!ns"er: c 42. he net present #alue8 a. b. c. d.

is the a!ount of !oney an in#est!ent is worth in today;s dollars' ta&ing into account its cost' earnings' and the ti!e #alue of !oney. calculates the rate of return fro! an in#est!ent by adjusting the cash inflows produced by the in#est!ent for depreciation. is defined as the rate of return or profit that an in#est!ent is expected to earn' ta&ing into account the ti!e #alue of !oney. is a !easure of the ti!e re(uired to pay bac& the initial in#est!ent of a project. #ifficulty: Medium $eference: %& '-.

!ns"er: a 43.

he interest rate that will e(uate the present #alue of a project;s future cash flows to the initial cost of the project is the8 a. b. c. d. %22. 2.%. net present #alue. 2.?1. #ifficulty: Medium $eference: %& '-.

!ns"er: a 44.

o best e#aluate' fro! a financial standpoint' an % in#est!ent whose benefits cannot be fir!ly established in ad#ance' you would use8 a. b. c. d. capital budgeting. real option pricing !odel. scoring !odel. net present #alue. #ifficulty: Medium $eference: %& '-/

!ns"er: b 4).

%nfor!ation syste!s projects are #alued si!ilarly to stoc& options in which !odel of financial e#aluation> a. b. c. d. %22 2eal options pricing !odel -apital budgeting $ccounting rate of return on 2.% #ifficulty: Medium $eference: %& '-/

!ns"er: a

,0(

4+.

he le#el of a project;s ris& is influenced pri!arily by8 a. b. c. d. project si6e' project structure' and the le#el of technical expertise. project cost' project scope' and the i!ple!entation plan. project scope' project schedule' and project budget. project si6e' project scope' and the le#el of technical expertise. #ifficulty: Medium $eference: %& '-,

!ns"er: a 4,.

he project ris& will rise if the project tea! and the %* staff lac&8 a. b. c. d. legacy applications as a starting point. good e(uip!ent. the re(uired technical expertise. financial studies and plans. #ifficulty: )ard $eference: %& '-,

!ns"er: c 4/. 3sers prefer syste!s that8 a. b. c. d.

are oriented to facilitating organi6ational tas&s and sol#ing business proble!s. wor& with existing <B1*. are able to pro#ide opti!u! hardware and software efficiency. are capable of storing !uch !ore data than they need. #ifficulty: Medium $eference: %& '-0

!ns"er: a 40.

=hich of the following is not one of the acti#ities of the syste!s analyst8 a. b. c. d. acting as a change agent. co!!unication with users. !ediating between co!peting interest groups. for!ulation of capital budgeting !odels. #ifficulty: Easy $eference: %& '-0

!ns"er: d )0.

he organi6ational acti#ities wor&ing toward the adoption' !anage!ent' and routini6ation of a new infor!ation syste! are called8 a. b. c. d. production. !aintenance. i!ple!entation. acceptance. #ifficulty: Easy $eference: %& '-0

!ns"er: c

,0-

)1.

$ccording to your reading of the chapter' change !anage!ent is a process that8 a. b. c. d. should be addressed before a project is de#eloped. begins when a project is i!ple!ented. is used pri!arily to !andate user acceptance. !ust be addressed in all syste!s de#elop!ent. #ifficulty: Easy $eference: %& '-0

!ns"er: a )2.

$n exa!ple of an i!ple!entation proble! is8 a. b. c. d. poor user interface. inade(uate user training. project running o#er budget. changes in job acti#ities and responsibilities. #ifficulty: Medium $eference: %& '-0

!ns"er: b )3.

he co!!unications gap between users and syste!s designers is created by their differences in8 a. b. c. d. bac&grounds. interests. priorities. all of the abo#e. #ifficulty: Easy $eference: %& '-0

!ns"er: d )4.

=hich of the following types of projects is !ost li&ely to fail> a. b. c. d. %ntegration of an third"party auto!ated pay!ent syste! 2eplace!ent of !iddleware with =eb ser#ices for legacy application integration $ business process redesign project that restructures wor&flow and responsibilities 2edesigning a user interface to an online in#est!ent site #ifficulty: Medium $eference: %& '-2

!ns"er: c )).

=hich of the following tools would you use to control ris& factors in an infor!ation syste!s project> a. b. c. d. %nternal integration tools 7xternal integration tools 4or!al planning tools and for!al control tools $ll of the abo#e #ifficulty: Easy $eference: %& '-'

!ns"er: d

,0*

)+.

%nternal integration tools8 a. b. c. d. enable a project to ha#e sufficient technical support for project !anage!ent and de#elop!ent. enable a project !anager to properly docu!ent and !onitor project plans. Dportray a project as a networ& diagra! with nu!bered nodes representing project tas&s. consist of ways to lin& the wor& of the i!ple!entation tea! with users at all organi6ation le#els. #ifficulty: Medium $eference: %& '-'

!ns"er: a ),. 7xternal integration tools8 a. b. c. d.

enable a project to ha#e sufficient technical support for project !anage!ent and de#elop!ent. enable a project !anager to properly docu!ent and !onitor project plans. portray a project as a networ& diagra! with nu!bered nodes representing project tas&s. consist of ways to lin& the wor& of the i!ple!entation tea! with users at all organi6ation le#els. #ifficulty: Medium $eference: %& '-'

!ns"er: d )/.

4or!al planning and control tools8 a. b. c. d. enable a project to ha#e sufficient technical support for project !anage!ent and de#elop!ent. enable a project !anager to properly docu!ent and !onitor project plans. portray a project as a networ& diagra! with nu!bered nodes representing project tas&s. consist of ways to lin& the wor& of the i!ple!entation tea! with users at all organi6ation le#els. #ifficulty: Medium $eference: %& '-'

!ns"er: b )0.

$n exa!ple of an internal integration tool would be to8 a. b. c. d. define tas& dependencies. include user representati#es as acti#e !e!bers of the project tea!. create a ?72 chart. hold fre(uent project tea! !eetings. #ifficulty: Medium $eference: %& '-'

!ns"er: d +0.

$n exa!ple of an external integration tool would be to8 a. b. c. d. define tas& dependencies. include user representati#es as acti#e !e!bers of the project tea!. create a ?72 chart. hold fre(uent project tea! !eetings. #ifficulty: Medium $eference: %& '*.

!ns"er: b

,0+

+1.

=hich type of planning tool shows each tas& as a hori6ontal bar whose length is proportional to the ti!e re(uired to co!plete it> a. b. c. d. ?72 chart 5antt chart Both a and b Aeither a nor b #ifficulty: Medium $eference: %& '-'

!ns"er: b +2.

o re#iew a project;s tas&s and their interrelationships' you would use a8 a. b. c. d. ?72 chart. 5antt chart. 7ither a or b. Aeither a nor b. #ifficulty: Medium $eference: %& '-+

!ns"er: a +3.

=hich type of tool helps project !anagers identify bottlenec&s in project de#elop!ent> a. b. c. d. %nternal integration tools 7xternal integration tools 4or!al planning and control tools Both b and c #ifficulty: Easy $eference: %& '-+

!ns"er: c +4.

$ccording to the chapter case discussing !ergers and ac(uisitions' what is the !ost predo!inant cause for the fact that +0 percent of 1E$s result in falling stoc& #alue for the ac(uiring co!pany> a. b. c. d. he ac(uiring fir! underesti!ates the ris&s in !erging % infrastructures. arget co!panies often ha#e outdated infor!ation syste!s or ha#e stopped spending on % in#est!ents. arget co!panies rarely ha#e % syste!s that are co!patible with the ac(uiring fir!. $c(uiring fir!s tend to build entirely new infor!ation syste!s rather than in#entorying all existing syste!s and choosing to &eep only those with pro#en #alue. #ifficulty: Medium $eference: %& '-(

!ns"er: a +).

$s discussed in the chapter case' which of the following difficulties pro#ed the !ost challenging to =allace' =elch' and =illingha! in the i!ple!entation of its new -21 syste!> a. b. c. d. 3ser"designer co!!unications gap 1anage!ent support 1anaging the change in business process 3ser acceptance #ifficulty: Medium $eference: %& '*/

!ns"er: d

,2.

++.

=hich of the following tools !ay help identify ris& areas associated with e!ployee acceptance of a new infor!ation syste!> a. b. c. d. 4or!al planning and control tools .rgani6ational i!pact analysis *yste! prototype 4easibility study #ifficulty: Medium $eference: %& '*,

!ns"er: b +,.

=hich of the following is not an organi6ational di!ension of infor!ation syste!s> a. b. c. d. *tandards and perfor!ance !onitoring 5o#ern!ent regulatory co!pliance Fealth and safety 3ser interface #ifficulty: Medium $eference: %%& '*,1'*0

!ns"er: d +/. %n sociotechnical design8 a. b. c. d.

separate sets of technical and social design solutions are de#eloped and co!pared. ergono!ic features of a syste! and the syste!;s technical design are gi#en e(ual i!portance. syste!s analysts with pro#en bac&grounds in sociological concerns rate and co!pare a syste!;s social and technical aspects. all of the abo#e. #ifficulty: Medium $eference: %& '*0

!ns"er: a +0.

he !ost widely used project !anage!ent software today is8 a. b. c. d. Gertabase. %B1 ?roject 5uide. 1icrosoft ?roject. 1icrosoft 7xcel. #ifficulty: Easy $eference: %& '*0

!ns"er: c ,0.

$s per the chapter case study on 1aine;s 1edicaid clai! processing syste!' which of the following tools would ha#e done the !ost to pre#ent the challenges presented by its new infor!ation syste!> a. b. c. d. ?72 and 5antt charts 7xternal integration tools %nternal integration tools 4or!al planning and control tools #ifficulty: )ard $eference: %%& '*+1'+/

!ns"er: b

,2/

Fill in the Blan3s

,1.

Project management refers to the application of &nowledge' s&ills' tools and techni(ues to achie#e specific targets within specified budget and ti!e constraints. #ifficulty: Easy $eference: %& ''-

,2.

$n information systems plan contains a state!ent of corporate goals and specifies how infor!ation technology will support the attain!ent of those goals. #ifficulty: Easy $eference: %& ''+

,3.

Enterprise analysis/business systems planning argues that the fir!;s infor!ation re(uire!ents can be understood only by exa!ining the entire organi6ation in ter!s of organi6ational units' functions' processes' and data ele!ents. #ifficulty: Medium $eference: %& ''+

,4.

%n portfolio analysis' low benefit' high ris& syste!s should be a#oided. #ifficulty: Medium $eference: %& '(0

,).

$9n: scoring model is a !ethod for deciding a!ong alternati#e syste!s based on a syste! of ratings for selected objecti#es. #ifficulty: Medium $eference: %& '(2

,+.

Tangible benefits are those than can be (uantified and assigned a !onetary #alue. #ifficulty: Easy $eference: %& '('

,,.

Capital budgeting !ethods rely on !easures of cash flows into and out of the fir!. #ifficulty: Easy $eference: %& '((

,/.

$9n: change agent is the indi#idual who acts as the catalyst to ensure successful adaptation to a new syste! or inno#ation. #ifficulty: Medium $eference: %& '-0

,0.

$9n: user-designer communications gap occurs when there is a difference in bac&ground' interests and priorities that i!pede co!!unication and proble! sol#ing a!ong users and %* specialists. #ifficulty: Medium $eference: %& '-0

,2,

/0.

Ergonomics is the interaction of people and !achines in the wor& en#iron!ent' including the design of jobs' health issues' and the end"user interface of infor!ation syste!s. #ifficulty: Medium $eference: %& '*.

Essay
/1.

uestions 4ou are "or3ing as a %roject manager for a small 5T consulting firm and ha6e been as3ed to create a %lan for re6ie"ing and auditing com%leted %rojects in order to gauge their success& 7hat factors "ill you use to measure the success of a %roject8 7hat 9uestions "ould you as3 in order to understand "hy a %roject succeeded or failed8 *tudent answers will #ary but should include an understanding of the !ain project #ariables8 *cope' ti!e' cost' (uality' and ris&. $ sa!ple answer is8 he factors % would use are8 Cost: =hat was the original budget and final budget Time: =hat was the original schedule and final schedule uality: <id the project !eet the re(uire!ents outlined in the project plan Sco%e: <id the scope of the project change>

Huestions % would as& to understand the success or failure of the project would be8 =hat technical difficulties were experienced and which could ha#e been foreseen> =hat ris&s did the project entail> =hat e#ents led to the scope changing> =hat difficulties occurred that were a conse(uence of personal' e!ployee"oriented proble!s> =hat difficulties occurred that were a conse(uence of en#iron!ental' organi6ational' or !anagerial challenges> =hat do project tea! !e!bers consider as the pri!ary challenges> =hat do clients or sta&eholders consider as the pri!ary challenges> #ifficulty: Medium $eference: %& ''-

,20

/2.

#escribe the elements of a management structure for information systems %rojects in a large cor%oration& %n a large corporation' the !anage!ent structure typically consists of 9fro! top to botto! le#els in the hierarchy:8 Cor%orate strategic %lanning grou%: he higher le#el group of !anagers responsible for de#eloping the fir!;s strategic plan. 5nformation systems steering committee: $ senior !anage!ent group with responsibility for syste!s de#elop!ent and operation. Project management: $ group of infor!ation syste!s !anagers and end"user !anagers responsible for o#erseeing se#eral specific infor!ation syste!s projects. Project team: he group directly responsible for the indi#idual syste!s project' consisting of syste!s analysts' specialists fro! the rele#ant end"user business areas' application progra!!ers' and perhaps database specialists. #ifficulty: Medium $eference: %& ''*

/3.

:ist fi6e categories of information that should be included in an information systems %lan& 5eneral categories of infor!ation included in an infor!ation plan are8 ?urpose of the plan Business rationale -urrent syste!s or situation Aew de#elop!ents to consider 1anage!ent strategy %!ple!entation plan Budget #ifficulty: )ard $eference: %& ''+

/4.

4ou ha6e been hired as a consultant for a nation"ide real estate firm "ho are interested in achie6ing better organi;ation bet"een branches by u%dating their information systems& 7ill you conduct an enter%rise analysis or use a CSF a%%roach to gain an understanding of the cor%oration<s information re9uirements8 :ist at least t"o reasons "hy you feel this is the better a%%roach& *tudent answers will #ary8 $n exa!ple answer is8 % would choose an enterprise analysis because this will 91: gi#e a better idea of the types of infor!ation that need to be shared. $lso' 92: since the goal is the sharing of infor!ation' rather than reorgani6ing' % will need an understanding of all the current infor!ation and process flows. $ -*4 approach would be better if the infor!ation syste! were pri!arily for decision support or executi#e support and geared toward top !anagers. #ifficulty: Medium $eference: %%& ''+1'(0

,22

/).

#escribe the %rocess of %ortfolio analysis& 5n "hat situations is this e6aluation method useful8 ?ortfolio analysis in#entories all of the organi6ation;s infor!ation syste!s projects and assets' including infrastructure' outsourcing contracts' and licenses. 7ach project can be described as ha#ing a profile of ris& and benefit to the fir!' si!ilar to the financial portfolio. %n a portfolio analysis' you would list the #arious syste!s projects and rate the! according to their potential ris&s and benefits. @ou would use the portfolio analysis to deter!ine which potential projects should be pursued and which should be !odified or abandoned. Figh ris&' low benefit projects should be a#oided' while low"ris&' high benefit projects would be at the top of the list. Figh"benefit' high"ris& projects and low"ris&' low"benefit projects would be reexa!ined to see if they could be !odified to better fit with the co!panies strategic plans. $ !ix of profiles could also be defined as acceptable in ter!s of the co!pany;s o#erall plans' !uch as is done with a financial portfolio. #ifficulty: Easy $eference: %& '(0

/+.

4ou ha6e been hired as a consultant to ma3e recommendations for Smarty<s= a healthy fast-food chain that is undergoing major e>%ansion and is in need of a su%%ly chain %lanning system& They are e6aluating t"o commercially a6ailable soft"are %ac3ages& 7hat systems e6aluation model "ill hel% them assess and com%are the t"o %ac3ages8 )o" does this model "or38 $ scoring !odel can be used for selecting projects where !any criteria !ust be considered. %t assigns weights to #arious features of a syste! and then calculates the weighted totals. =hat *!arty;s would do is ha#e decision !a&ers such as top !anagers list the #arious features they feel are i!portant to ha#e in the syste!' such as the processes that need support or reports they !ay need fro! the syste!. 7ach feature' or criteria' the !anagers list is gi#en a weight' or rating' in ter!s of how i!portant it is o#erall to ha#e in the syste!. 7ach pac&age then is e#aluated in ter!s of the percentage of re(uire!ents it contributes or supports for each criteria. %n the scoring !odel' you !ultiply the weight with the software;s percentage of contribution to arri#e at a score for each criteria. he scores of both software pac&ages are totaled and co!pared to see o#erall their contribution to fulfilling the co!pany;s re(uire!ents. #ifficulty: Medium $eference: %& '(2

,2'

/,.

#ifferentiate bet"een intangible and tangible benefits and list three e>am%les of each& 5n "hat ty%es of systems are intangible benefits more %redominant8 angible benefits can be (uantified and gi#en a !onetary #alue. 4or exa!ple' a !onetary #alue can be gi#en to increased producti#ity' lower operational costs' reduced wor&force' lower co!puter expenses' lower outside #endor costs' lower clerical and professional costs' reduced rate of growth in expenses' and reduced facility' teleco!!unications' software' ser#ices' and personnel costs. %ntangible benefits cannot be i!!ediately (uantified but !ay lead to (uantifiable gains in the long run such as higher sales. 7xa!ples of intangible benefits include8 i!pro#ed asset utili6ation' resource control' organi6ational planning' decision !a&ing' operationsI increased flexibility' learning' job satisfaction 'client satisfaction' e!ployee goodwill' !ore ti!ely infor!ation and !ore infor!ation' the fulfill!ent of legal re(uire!ents and a better corporate i!age. *yste!s that produce !ore intangible benefits are 1%*' <**' and collaborati#e wor& syste!s. #ifficulty: Medium $eference: %%& '('1'((

//.

:ist and describe the four %rinci%le ca%ital budgeting models& 5n "hat situations are these models not useful8 he paybac& !ethod is a !easure of the ti!e re(uired to pay bac& the initial in#est!ent of a project. he accounting rate of return on in#est!ent 92.%: calculates the rate of return fro! an in#est!ent by adjusting the cash inflows produced by the in#est!ent for depreciation. he net present #alue is the a!ount of !oney an in#est!ent is worth' ta&ing into account its cost' earnings' and the ti!e #alue of !oney. %nternal rate of return 9%22: is defined as the rate of return or profit that an in#est!ent is expected to earn' ta&ing into account the ti!e #alue of !oney. %22 is the discount 9interest: rate that will e(uate the present #alue of the project;s future cash flows to the initial cost of the project.

hese !odels !ay not be useful for so!e infor!ation syste!s projects' especially when their future re#enue strea!s are unclear and the upfront costs are high' and the benefits !ay be !ore intangible than tangible.9%n such cases' !anagers !ight benefit fro! using real options pricing !odels to e#aluate infor!ation technology in#est!ents.: #ifficulty: )ard $eference: %%& '(-1'-.

,2(

/0.

4ou are the senior %roject manager for a 7eb de6elo%ment com%any "ith u%"ards of /.. current client %rojects& 4ou ha6e been assigned to e6aluate t"o u%coming %rojects& ?ne %roject is to de6elo% a time trac3ing solution that "ould allo" your ,. freelancers to submit daily time sheets and "ould re%ort on the time s%ent on each %roject& The other %roject is to redesign the client interface to the com%any e>tranet to ma3e it easier to use& The e>tranet allo"s clients to log in and 6ie" their current 7eb sites under de6elo%ment= as "ell as 6ie" %roject statistics= documents= and %rogress re%orts& Com%are the t"o %rojects in terms of ris3 factors& *tudent answers will #ary but should include an understanding of the !ain ris&s factors8 si6e' structure' and technical expertise. $n exa!ple answer is8 he !ain ris& factors are si6e' structure' and technical expertise. Si;e& he ti!e"trac&ing project is a larger project8 %t in#ol#es creating new progra!!ing that !ay interface with bac&"end syste!s and will i!!ediately influence pay!ent and cost. %t also affects business processes. 2edesigning an interface for the client extranet !ay si!ply be designing one or two pages that will be replicated for each client once the initial design is done. Structure& %t !ay be easier to define the re(uire!ents of the ti!e"trac&ing software' as this process is relati#ely straightforward. 3nderstanding what !a&es the user interface proble!atic and defining ways to !a&e it easier to use is so!ewhat of a less tangible (uality than reporting on ti!e' so this !ay be a concern in the second project. Technical e>%ertise& *ince the ti!e"trac&ing project is a new application' there !ay be so!e issues of !a&ing sure any in"house staff has the appropriate le#el of expertise. he user interface in#ol#es wor&ing with existing progra!!ing that will not change. Fowe#er' there !ay be a need to !a&e sure that an expert who understands usability is present. #ifficulty: Medium $eference: %& '-,

,2-

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!mericlinic= a national chain of budget health-care clinics= is creating an information system that "ill allo" %atients and doctors at %artici%ating franchises to communicate online& The goal of the system is to allo" doctors to res%ond to minor health 9uestions 9uic3ly and more efficiently= sa6ing %atients unnecessary 6isits to the clinic& This "ill be a major %rocedural change& 7hat ste%s "ould you recommend to this com%any to ensure the user acce%tance of the system8 he first step should be to conduct an organi6ational i!pact analysis' to deter!ine the changes in procedures' job function' organi6ational structure' power relationships' and beha#ior that this syste! re(uires or will engender. $ny organi6ational changes should occur prior to i!ple!enting the syste!. %n order to gain co!pliance and support of the doctors' % would establish a re#iew co!!ittee of influential participating doctors and change agents to discuss the syste! prior to de#elop!ent and during de#elop!ent in order to !eet physician needs and re(uire!ents. % would also in#ol#e focus groups of intended users to re#iew prototypes of the syste! to !a&e sure it is easy to use' and hopefully easier to use in the rele#ant health situations than going to the doctor. he co!pany will need to !a&e sure that there is also an option for users that do not ha#e %nternet access. 3ser training for doctors and nurses will be essential. he co!pany should also consider incenti#es for doctors and patients that use the syste!. #ifficulty: Medium $eference: %%& '-01'-2= '*.1'*0

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