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Final Exam Study Guide

50 questions will come from the lecture


30 questions from the book (This means there will be 3 questions from each chapter. We
studied the following chapters: 1, 2, 3, 4, 5, 6, 7, 9, 10, and 11)
The exam will be completed in the Assessment Lab (Moody 106) using Moodle on Thursday, May
8 at 6 PM.
FYI:

Organizational strategy: ex= personnel policies about responding to changes in the


organization
o Includes the orgs design as well as the choices it makes to define, set up,
coordinate, and control its work processes; is a plan that answers the question--how will the firm achieve its goals and implement its business strategy
Informational strategy: a plan the organization uses to provide information services; allows
a company to implement its business strategy; a set of systems to monitor, manage, and
abort drilling processes in a crisis
Business strategy: a plan articulating where a business seeks to go and how it expects to
get there

1. Know the definition of an information system (Lecture 1d)


o Information System:
Interrelated components working together to collect, process, store, and
disseminate information to support decision making, coordination, control,
analysis, and visualization of an organization
The technology (hardware, software, networking, data) people, and processes
that an organization uses to manage information
2. What is the study of Management Information Systems? (Social/Technical view)
o Managers should not rely on experts to analyze all the aspects of IS and to make the
best decisions for the organization
o Managers today need to know about their organizations capabilities and uses of
information as much as they need to understand how to obtain and budget
financials resources
o IS managers need a business view to explain how technology will impact the
business and what the tradeoffs are
o Managers must know how to mesh technology and people to create effective work
processes
o Technology facilitates the work that people do and the way they interact with each
other
o IS, MIS, and IT are synonymous. In charge of the information systems within the
organization.
o Digital Natives: individuals who have grown up completely fluent in the use of
personal technologies and the Web, also increase the rate of adoption of new
technologies beyond the pace of traditional organization
o ***Failure to consider IS strategy when planning business strategy and
organizational strategy leads to 3 business consequences:
IS that fail to support business goals
IS that fail to support organizational systems
1

3. What is
o

Misalignment between business goals and organizational capabilities


3 Managerial Skills:
Visionary
Information/interpersonal
Structural
4 Assumptions about Management:
Planning
Organizing
Leading
Controlling
3 Roles:
Interpersonal: figurehead, leader, liaison
Informational: monitor, disseminator, spokesperson
Decisional: entrepreneur, disturbance handler, resource allocator, negotiator
data? Information? Knowledge? (Lecture 1d)
Data:
Data: Streams of raw facts representing events occurring in organizations or
the physical environment before they have been organized and arranged into
a form that people can understand and use
Information :
Data endowed with relevance and purpose, data in a context; data that have
been shaped into a form that is meaningful and useful to human beings.
Knowledge:
information that is synthesized and contextualized to provide value (has most
value)
Information that has been organized and processed to convey
understanding, experiences, accumulated learning, and expertise as it
applies to a particular problem or process
A central productive and strategic asset; only true form of competitive
advantage
Mix of contextualized info, values, experiences, and rules
Richer and deeper than information and more valuable
Information from the human mind (includes reflection, synthesis, context)
Hard to structure; Difficult to capture on machines; Often tacit; Hard to
transfer
Computers work well for managing data, but are less efficient at
managing information
Example: inventory manager knowing which items need to be
reordered in light of daily inventory report, anticipated labor strikes,
and a flood in Brazil that affects the supply of a major component
Ex: Walmart receipt: diapers and beer: raw data, date and time: info, 2
most common things purchased in early evening: knowledge
Wisdom:
4th level in the information hierarchy
Wisdom is knowledge, fused with intuition and judgment that facilitates the
ability to make decisions
Consistent with Aristotles view: ability to balance different and conflicting
elements together in ways that are only learned through experience
2

4. What is the current role of IT within organizations today? **LECTURE 2A**


o 2 categories of technology:
Disruptive: a new way of doing things that initially do not meet the needs of
customers; customers must learn to adapt to the new way of doing things;
after they learn to adapt theyre appreciative of the new method
Internet (5 benefits)
Shrinkage of information asymmetry
Must focus on unexpected to capitalize on opportunities in disruptive
technology
Sustaining: produces improved product customers are eager to buy
5. What is the difference between e-business and e-commerce? (Lecture 2a)
o E-business: use of internet and other digital technology for organizational
communication and coordination and the management of the firm
o E-commerce: the process of buying and selling goods and services electronically,
involving transactions using the internet, networks, and other digital technologies
o E-business is focused upon the organization, where e-commerce is about buying
and selling of goods
6. What is disintermediation? (Lecture 2a)
o Disintermediation: The elimination of organization or business process layers
responsible for certain intermediary steps in a value chain
What is the purpose of disintermediation?
o Purpose is to reduce the final cost of the product to the consumer
And why is Reintermediation occurring?
o Reintermediation: to provide value as a middleman to avoid disintermediation;
shifting intermediary function in a value chain to a new source, such as service
hubs
Example: trusted parties to bring two parties together (Paypal)
Ex. Manufacturer---- Service hub---Consumer
7. What is information asymmetry and how has the Internet changed the power
dynamic? (Lecture 2a)
o Information asymmetry: Situation where bargaining power of two parties in a
transaction is determined to one party having more information essential to the
transaction than the other party
Before the internet, it wasnt as easy for consumers to shop around for better
prices
Now, the consumer has a lot of power right at his fingertips
Now with internet can be anywhere to shop and compare prices
2 results from this shift:
Consumer has more power now
Disintermediation: fewer intermediaries between consumer and
manufacturer
8. What is: B2B, B2C, C2C, C2B, and clicks-and-bricks?

Type

Selling Party

Buying Party

B2C

Business (eg. Kmart)

Consumer (eg. Me
buying a tv)

B2B

Business

Business

Eg. Sony

Eg. Kmart-distributor

Consumer

Consumer

C2C

o
o

What are the 3


Different types of Ecommerce
B2B= business to
business Sony
selling to its

distributor Walmart
B2C= Me buying a computer or refrigerator from Conns
C2C= Ebay- A person selling a pair of NineWest Shoes on ebay
Early days E-commerce focused on B2C relations, but in recent times, focus
has shifted towards B2B relationships
Benefits of the e-world:
Shrinkage of information asymmetry
Changing relationships
Business conducted 24/7
Extended global reach of corporation
Can reduce transaction costs

Clicks and bricks (click and mortar): company integrates both offline (bricks) and
online (clicks)presence
Pure play- businesses that exist solely on the internet
During the early days of e-commerce, predominated by pure-play; now
shifting toward clicks and mortar or pure-play aligning with clicks-and-bricks
E-firms have made technology the basis of their organization; have shown that
technology can help to dramatically change marketplaces and the nature of
competition; have made traditional firms change the way they compete for
business; have made technology a basis for competition
Todays economy characterized by: immediate access -right now; no physical
boundaries global economy; IT has changed commerce- the economy;
Information moves electronically- digital economy

9. What are the four powerful worldwide changes that have altered the business
environment? (Lecture 1a-1c)
a. Globalization
b. Rise of information technology
c. Emergence of the digital firm
i. Characterized by digitally enabled relationships with customers,
suppliers, and employees
ii. Core business processes are accomplished via networks
iii. Digital management of key corporate assets
iv. Rapid sensing and responding to environmental changes
d. Transformation of business enterprise
i. Characterized by flattening, decentralization, flexibility, location
independence; low transaction and coordination costs; empowerment;
collaborative work and teamwork
4

10.

What is the difference between richness and reach? (Lecture 2b)


o Richness: the depth and detail of information that a business can supply to (or can
collect from) a customer; eg. The Ritz Carlton chooses richness over reach- each
customers stay is personalized to their tastes- not many ppl can afford to stay
there though
o Reach: how much people can a business can connect with and how many products
it can offer those people; eg. Walmart chooses reach over richness
11.
What are Thomas Friedmans 10 forces that flattened the world? (Lecture 1a)
o The Collapse of the Berlin Wall
o Netscape: broadened audience IPO
o Workflow software: machines talking to each other with no human involvement
o Uploading (Open-Sourcing)
o Outsourcing
o Offshoring:
o Supply-chaining: example - Walmart
o Insourcing
o Informing: search engine
o The Steroids: voice over internet; wireless
12.
Know the types of power in Porters Five Forces Model: (Pre & Post Internet)
high/low degree
o Porter argued that firms exist within industries
o Competitive forces are affecting firms, including:
Threat of new market entrants
Threat from substitute products
Threat from suppliers
Threat from customers
Threat from other competitors
Ex: Barnes & Noble (Pre-internet) threats were from suppliers, customers & other
competitors
But was not worried about new entrants because high cost to enter market
o Ex: Barnes & Noble (Post-Internet)
Still threats from suppliers, customers, and other competitors
Competitive landscape has shifted
Amazon shown that it is easy to enter the market, so higher degree of new
entrants
Also, now there is a threat from substitute product
o Technology has made it easier for new entrants/ technology influences and
facilitates the strategies today
Know the elements of systems theory **LECTURE 1D**
o Input: The capture or collection of raw data from within the organization or from its
external environment for processing in an information system
o Processing: The conversion, manipulation, and analysis of raw input into a form that
is more meaningful to humans
o Output: the distribution of processed information to the people who will use it or to
the activities for which it will be used
o Feedback: Output that is returned to the appropriate members of the organization
to help them evaluate or correct input
o

13.

14.
Know the elements of socio-technical systems theory: finding FIT in
organization
The technology must be changed and designed in such a way as to fit
organizational and individual needs (tech, organization, mgmt)
o Organizational structure
o Tasks
o Technology
o People
15.
What is the central and productive asset for firms today? (Lecture 1a)
o Knowledge is the central and productive asset for firms today
16.
What are the 4 rules governing the digital economy? (Lecture 1b)
o Wealth flows from innovation, not optimization
Wealth is not gained by perfecting the known, but by imperfectly seizing the
unknown.
o The ideal environment for cultivating the unknown is to nurture the supreme agility
and nimbleness of networks.
o The domestication of the unknown inevitably means abandoning the highly
successful known - undoing the perfected.
o The cycle of "find, nurture, destroy" happens faster and more intensely than ever
before.
17.

What are Porters four types of organizational strategy? (Lecture 2c)


o

IT helps to achieve all four strategies


o Cost leadership strategy: products are cheaper and the market is broad
Eg. Walmart
o Cost focus: products are cheaper and the market is narrow
o Differentiation: Products are unique and the market is broad
o Differentiation focus: Products are unique and the market is narrow
Eg. Ritz Carlton Hotel-uses unique narrow market- differentiation focus to
form good relationships with clients

18.

What is the difference between primary and support activities? (Lecture 3a)
o Primary: most directly related to production & distribution of product/service
60% value adding activities
Most value added activities of firm are related to production (40.3%) and
distribution of the product (6.6%)
o Support: make delivery of firms primary activities possible; 40% value-adding
activities

19.

How does technology give firms a competitive advantage?


o Technology alone does not lead to a competitive advantage
6

Systems can be a differentiator, but not necessarily a competitive advantage


o By leveraging the power of the network, IT can bring together the resources and
leverage capabilities to create distinctive competencies
With the competencies in place, these competencies are then combined to generate
a cost or differentiation advantage

20.Know the difference between technologies that work in the tactical level, the operational
level, and the strategic level. **LECTURE 3B**
o Operational Level:
Deciding how to carry out specific tasks specified by upper and middle
management and establishing criteria for completion and resource allocation
Monitors elementary activities and transactions of the firm
TPS: Transaction Processing Systems
computerized systems that perform and record daily routine
transactions necessary to conduct the business
Input: transactions, events
Processing: Sorted, listed, merged, updated
Output: Detailed reports, lists, summaries
Users: Operations personnel, supervisors
Examples: A/P, A/R , Payroll order tracking & processing
o Tactical Level
(Knowledge workers): system supports knowledge and data workers
Evaluating new ideas for products, services, ways to communicate new
knowledge, and ways to distribute information throughout the organization
OAS: Office automated systems
o Designed to increase the productivity of data workers
Work processing (eg. Microsoft Word),
desktop publishing (eg. Microsoft Publisher);
Document imaging systems
KBS: Knowledge based systems
o Intended to capture knowledge of human beings
o 2 varieties:
(ES) Expert systems-captures the expertise of a human in
limited domains of knowledge; similar to a DSS, but is
built upon human knowledge
Rationale: all individuals contain tacit knowledge
knowledge in their heads
Components =
o Knowledge base: stores the rules of the
expert system
o Inference engine: takes the problem facts
and searches the knowledge base for rules
that fit
o Explanation module: explains why the
system made the decision
(KMS)Knowledge management systems
Try to use computers to model human
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(Middle managers): systems support monitoring, controlling, decision making,


and administrative activities
Monitoring how efficiently or effectively resources are utilized and how
well functional units are performing
MIS: Manager information systems
o Records company data
o Transaction data from TPS are run through MIS producing reports
o Serve Management level; provide reports and access to
company data
o Input: summary transaction data, high-volume data, simple
models
o Processing: routine reports, simple models, low-level analysis
o Output: summary and exception reports
o Users: Middle managers
DSS: Decision support system:
o Combines data and analytic models to support non routine
decisions for individuals
o Use input from TPS data plus external sources
o Central idea: creating excel spreadsheet to create a model to
make decisions
o Relies on data that is processed and analyzed to produce a
report
o Effectiveness depends on how well you build the tool
o Users: professionals; staff managers
o Example: use of several models to determine costs for buying a
home
GDSS: Group decision support system aka collaboration system
o an interactive computer-based system to facilitate the solution
to unstructured problems by a set of decision-makers working
together as a group
o Example: Blackboard Collaborate where group holds
discussions
o Facilitate interactions between individuals
o The group uses software tools aka groupware to help it arrive
at a decision
Differences between DSS and GDSS:
o DSS= individuals; GDSS = groups
o Objective of use:
DSS= build models using data
GDSS = facilitate interaction between individuals
o Effectiveness:
DSS: depends on how well the tool is built by designers
GDSS: depends on facilitators, tools selected, and
participants
Strategic Level
System supports long range planning activities
Determining the long-term objectives, resources & policies of an
organization
ESS: Executive support system
8

o
o

21.

22.

Systems designed to address non-routine decision making


Incorporate data from TPS, MIS, DSS, and other external
sources
Senior managers use this
Examples: forecasting, marketplace trends, personal planning

What is the strategic inflection point? (Lecture 3a)


o Strategic Inflection Point: there will come a point in time when the organization
struggles to find new customers and the organizations growth plateaus;
over time, an organization grows until it reaches a period where growth
plateaus
Time where organization struggles to obtain new customers and organization
plateaus
the company must then either adapt and change to see new levels of growth;
without adaptation the company will see failure
What is a database? And what are the components of a DBMS (Lecture 4a)
o Database: maintains information about various objects (inventory), events
(transactions), people (employees), and place (warehouse)
o Located at the center of all Enterprise Resource Planning Systems
When a user enters or updates information in one module, it is immediately
and automatically updated throughout the entire system
o DBMS: software that allows users to create and maintain a database and enable
individual business applications to extract the data they need

23.

What are two examples of data manipulation languages?


o SQL: Sequel /Structured query language
o XML: Extendable markup language
24.
Why do firms implement data administration policies?
o Organizations create one individual to manage databases
A database administrator is usually in charge of this functions
o Organizations outline an information policy: rules governing the maintenance,
distribution, and use of data in an information system
o Organizations are aware of the serious risks of security issues, so a DBA is put in
charge
DBA can see everything
Making sure information is safe/information security
25.
What is data mining? And what is the difference between data mining and a
data warehouse? (Lecture 4b)
o Data Warehouse is an aggregation of all of the databases; a logical collection of
information, gathered from many different operational databases, used to create
business intelligence that supports business analysis activities and decision-making
tasks
o Data Mining: Techniques to find hidden patterns, relationships in large pools of data to
infer rules for predicting future trends. If we want to leverage our Warehouse we will
use data mining:
Data mining are the tools used to analyze the data; drilling down to find
relationships between groups of data
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May include: Query & reporting tools; intelligent agents; multidimensional


analysis tools; statistical tools

26.

What are the characteristics of high quality information? **LECTURE 4A**


o Helpful Hint: ACCUT-- Accuracy, Completeness, Consistency, Uniqueness,
Timeliness
High quality information lead to good decisions; good decisions improves the
bottom line
27.
What is business intelligence? And what are the drivers of BI?
o Business Intelligence: Information that people use to support their decision-making
efforts
o Principle BI enablers (drivers) include:
Right person (people)
Right technology
Right culture
28.
What is enterprise architecture? And what are the components of EA? (Lecture
6a)
o Enterprise Architecture: Plans for how an organization will build, deploy, use, and
share its data, processes, and IT assets
o Three Components of EA:
Information Architecture
Goal: create a strategy for safeguarding the firms information
Focus: How should we safeguard our information?
Includes: backup and recovery; disaster recovery; information security
A good plan includes: a strong information security plan; managing
user access (so wont have a system crash by somebody who doesnt
know what theyre doing); up-to-date antivirus software and patches
Infrastructure Architecture
Infrastructure: specific technology used to enable architecture;
Focus: How should information be exchanged?
A collection of compatible hardware and software arranged to
communicate information from one location to another
Includes hubs, routers, switches and all related protocols
o Protocols = the rules and procedures that govern the
transmission between the components in a network; specific
language that governs the flow of data
Includes: Reliability; Scalability; Flexibility; Availability; Performance
Application Architecture
How should applications integrate?
Includes: Web Services; Open Systems for integration of applications
29.
What is the difference between a backup and a recovery? (Lecture 6a)
o Backup, Recovery, and Information Security are all a part of a companys
Information Architecture
o Backup: An exact copy of a systems information
o Recovery: The ability to get a system up and running in the event of a system crash
or failure and includes restoring the information backup
Fault tolerance: The ability of a system to cope with internal hardware
problems (eg, a disk drive failure) and still continue to operate with minimal
impact
11

Failover: The transfer of operation from a failed component to a redundant


component to ensure uninterrupted data flow
o Disaster recovery plan: detailed process for recovering information or an IT system
in the event of a catastrophic disaster (eg. flood, fire, hurricane)
30.
What are the steps that managers go through when making decisions
(according to Simon 1960)? Managers go through 4 stages to make a decision.

o
o
o
o

Intelligence: Individual collects information to identify problems in the


organization
Design: Individual conceives of possible alternative solutions to a problem
Choice: Individual selects among the various solution alternatives
Implementation: Individual puts the decision into effect & reports on progress of
solution

31.What is bandwidth?
o The typical measure used in conversation is the difference between the highest and
lowest frequencies that can be transmitted ---- known as the bandwidth
o The higher the bandwidth, the quicker the transmission (eg. increase the
bandwidth, increase the speed of the internet???)
Fiber Optic = fastest
Microwave = slowest
32.
What is the difference between LAN and WAN? (Lecture 6b)
o Local Area Network (LAN): network that encompasses a limited distance, usually
one building or several buildings in close proximity (eg. C&Gs internet prob uses
LAN)
o Wide Area Network (WAN): Spans a large geographical distance (eg. network on ULL
campus)
o There are two types of computers on a network
Client: the user-point-of-entry for the required function
Typically a desktop, workstation, or laptop computer
Server: A computer that stores and processes shared data and performs
back-end functions not visible to users, such as managing network activities
o These two devices communicate with one another using communication channels
over networks
33.
What is the difference between infrastructure and architecture?
o Architecture:
Provides the blueprint for translating business strategy into a plan for IS
Strategic in nature; there must be a high level technology strategy for
sharing data
Creation of architecture requires communication between IT and business
12

Infrastructure:
Everything that supports the flow and processing of information in an
organization, including hardware, software, data and network components
Consists of components, chosen and assembled in a manner that best suits
the plan and enables the overarching business strategy
Refers to specific technology that is used to enable architecture
A collection of compatible hardware and software arranged to communicate
information from one location to another
Specific routers, hubs, servers used to implement architecture
Five primary characteristics of a solid infrastructure architecture:
o Flexibility
o Scalability
o Reliability
o Availability
o Performance
Cannot be all of the above, can only pick one
IT creates infrastructure plan after architecture strategy is created

34.
What is enterprise application integration? And what are your options for
enabling EAI? (Lecture 5b)
o Enterprise Application Integration (EAI) is software that ties together multiple
applications to support enterprise integration; similar to ERPs but EAI is a
commercial attempt to do the same
o Middleware solutions: stand inside of organization or integrate applications through
the internet
o Web services: enable two web based applications to exchange data
Set of standards using Internet technology for integrating applications from
different sources without coding; used for linking systems within the same
organization
The social nature of the organization is crucial
Power and politics play a role in implementation
Users want the innovation to liberate them and set them free from the
constraints of their job
Upper management support is crucial
35.

Describe the different communication channels (Lecture 6b)


o There are four different communication channels:
13

Twisted pair: twisted copper wires (e.g. telephone)


Some refer to this as Category 1 to Category 7 untwisted or shielded
twisted pair
Aka X-Based T Ethernet
Coaxial cable: thickly insulated copper wire (e.g. TV cable)
56kbps to 200 Mbps
Fiber-optic: thin strands of clear glass fiber bound into cables (eg. LUS Fiber)
Fastest: 500 kbps to 6+ tbps
Wireless: sending data without cables (e.g. microwaves or satellites; WiFi)
36.
How do websites map domain names to IP addresses? (Lecture 6b)
o DNS server = Domain Name System
Server translates URL (Uniform Resource Locater) to IP address
If our server knows the address, routes the information to the appropriate
location
If our server does not know, it routes request to another DNS to figure it out
DNS = a hierarchical naming system for computers, services, or any resource
connected to the internet (eg. translates human-friendly computer host
names to an IP address)
37.
What is the standard for wireless networks? (Lecture 6b)
o More and more internet connections are occurring through Wi-Fi connections
o The standard for wireless networks = 802.11 - the wireless protocol to govern
internet connections
Standard for networks created by the Institute of Electrical and Electronics
Engineers (IEEE)
Working group
Supported bandwidth of 2 Mbps
Has been expanded to 802.11b, 802.11a, 802.11g
38.
What is the SDLC (Systems Development Life Cycle) methodology? And what
are the steps involved? (Lecture 7a)
o SDLC = Systems Development Life Cycle: a traditional tool for developing
information systems, or for implementing software developed by an outsourcing
provider or software developer
Set of activities used to create an IS; refers to the process of designing and
delivering the entire system
SDLC can be used in one of two ways: systems analysis or systems
development
Systems analysis: The analysis of the business problem that the organization
will try to solve with an information system
The general project plan of all the activities that must take place for
the entire system to be put into operation; includes:
o Planning
o Analysis
Systems development: The activities that go into producing an information
systems solution to an organizational problem or opportunity
Design
Develop
Test
Implement
Maintain
14

Plan The project is considered, scoped, and carefully planned


Document project objectives, scope, benefits, assumptions,
constraints, estimated costs, and schedule, and user commitment
mechanisms
Plan for human resources, communication, risk management, and
quality
End users should define CSFs (Critical success factors)and be included
in the project plan
o CSF= elements that are critical to the system being successful
o Project scope: high level system requirements of the project;
gives an understanding of the type of system the firm is
intending to use (eg. Supply Chain; CRM)
Analysis Goal: end users and IT work together to gather, understand, and
document the business requirements for the proposed system
Involves:
o gathering biz requirements: detailed set of requests that the
system must need; more specific than CSFs
o conduct a feasibility study-determination of whether a solution is
possible, given the firms resources/constraints; examine
technical resources, economic resources, operational resources,
strategic resources
o determine the answer to the need from the feasibility study,
determine the list of possible alternatives and decide upon
which mix of costs, benefits, features, and impacts is most
desirable
Design Goal: to build a technical blueprint of how the proposed system will
work
o Design the technical architecture required to support the system
o Design system models
Design the technical architecture required to support the system;
architecture must be compatible with infrastructure unless the
organization builds one for the project
Design system models: a graphical representation of the system is
built; includes screens, reports, software, and databases
Development
Goal: transform design documents from the design phase into an
actual system
o Involves: writing and coding the software
o Creating the databases
o Deploying the telecom equipment
o Installing hardware and software
Deliverable = finished system
Point at which the system is actually built; if the system is acquired, it
is here where customization occurs according to the needs of the
business environment
15

Development Options:
o Application software packages: set of prewritten, pre-coded
application software packages commercially available for sale or
lease
o Customization: modification of software package to meet the
firms unique requirements without destroying the softwares
integrity
o Write from Scratch: writing and coding software using standard
programming tools and databases; not the best strategy
Software alone does not give a competitive advantage; need a
sustainable competitive advantage

Test Goal: verify that the system works and meets all of the business
requirements defined in the analysis phase
o Develop a test plan- what needs to work
o Implement the test plan
o If the testing is successful, proceed to implementation
Two broad options for testing:
o Unit testing: test each module in the program individually; aka
deep testing; what Cisco did- not the best option when used
alone;
o System testing: test the whole program
Implement
Goal: to place the proposed system in the organization
Activities:
o Define the distribution approach
o Carry out the conversion
o Train the users (can happen during conversion)
o Provide users with documentation (highlights how to use the
system)
Deliverable: the system is being used by every user
Maintain
Goal: monitor and support the new system to ensure that it continues
to meet business goals
o Activities:
debugging/solving problems (help desk): 20%
Upgrades/changes: 20%
Adding new functionality: 60%

39.
Why is systems development so challenging? And what are the challenges with
implementation?
o
40.
What are the different choices for implementation (e.g. pilot testing, parallel,
direct cover, and phased)?
o Parallel strategy: safe and conservative; both systems are used for a time; the old
system may stop running as soon as the new system is installed; the safest way to
convert from a new to an old system b/c if the new system fails, users easily can
revert to the old system
16

Direct cutover: risky; one system replaces the other on a given day; the new system
may be installed in stages across locations or in phases; the riskiest approach b/c
there is no backup system to turn to in the event of problems with the new system
o Pilot testing: system is brought into individual BUs and operates until system is
successful
o Phased: system is brought in one functional unit at a time
41.
What are the factors that dictate whether an IS project will be successful or not?
(Lecture 7b)
o User involvement and influence
o Management support
o Complexity/risk
o Management of implementation process
42.
What is project management?
o Project manager: makes sure the entire project is executed appropriately and
coordinated properly; defines the project scope realistically and then manages the
projects so that it can be completed on time and within budget
43.
What is extreme programming and why is it advantageous?
o Extreme programming (XP) methodology breaks a project into tiny phases,
and developers cannot continue on to the next phase until the first phase is
complete
Faster than the waterfall method with 7 steps
Smaller projects are delivered quickly in steps
Users are the drivers of the success of this method
Typically allows for delivery of parts every quarter
Allows IT to keep the user engaged and involved at each step
44.
What are the drawbacks for software customization?
o Customization: Modification of software package to meet organizations unique
requirements without destroying the softwares integrity
Software by itself does not provide competitive advantage; it is how you use
and leverage IT gives competitive advantage
The more customization present, the higher it will cost
Most firms try to do ERP without making any changes
Uses up capital unnecessarily that can be used to obtain more sustaining
competitive advantage
Upgrades
Software integrity
Best practices
Cost
45.
During the maintenance phase of SDLC, where does IT spend most of its time?
o Monitor and support the new system to ensure that it continues to meet business
goals
Debugging 20%
Upgrades 20%
Adding new functionality 60%
o

46.

Why is IT project management so unique? (Lecutre 8a)


***IT projects uniquely require more knowledge than other projects
o More stakeholders present: End users, business owners, and IT
o Technological challenges: Integration with architecture and pre-existing software
17

Cost issues: Who is paying for the project? And what happens when it is over
budget?
o More knowledge is required: Must interface with all functional areas in the
organization and speak their language
47.
Why do IT projects fail? (Lecture 8a)
o 2/3 of all IT projects fail (KPMG)
o Ignorance (eg. ppl dont know how to run a cost-effective, quality project)
o Bad management (eg. poor control, improper planning)
Poor control
Not relying upon proper planning
o Failure to communicate
o Not understanding sociotechnical view
o Mythical man-month
Man month: the amount of work a person can be expected to complete in a
month
More people Less time
Project managers believe that when the project falls behind, just need more
people; WRONG-- 2/3 of all IT projects fail
Most IT people dont have project management skills; former programmers or
analysts with no formal project training
48.
What is the difference between an analyzer, defender, prospector, and reactor
corporation?
o According to the Miles & Snow: Corporate Strategy Taxonomy, there are 4 types of
corporate strategies
o Strategy: an elaborate and systematic plan of action; high level statement of what
the firm intends to do; Typically set by the CEO and other top executives; Tool-
SWOT analysis
o Defender
Locates and maintains a secure niche in a relatively stable product or service
area
Offers limited range of products or services
Protects domain by offering higher quality, superior service and lower prices
Not usually at the forefront of developments in the industry
Tends to ignore industry changes that have no direct influence on
current areas of operations
Concentrates on doing the best job possible in a limited area
Not as aggressive; like a soldier that stands its ground and maintains
position (eg. a clothing boutique)
Has the mentality that it wont move or change; focus is on what it
does best
o Prospector
Operates within a broad product-market domain that undergoes periodic
redefinition
Values first in in new-product and market areas
Even if efforts are not highly profitable
Organization responds rapidly to early signals concerning areas of
productivity
Responses often leads to a new round of competitive actions
Organization may not maintain market strength in all areas it enters
18
o

49.

Like a kamikaze soldier on the battlefield- see opportunities and rush in to


take it
Great firm to work in; will Rush in to establish a niche to create new
industry
Eg. Amazon
Analyzer
Attempts to maintain a stable, limited line of products or services
Moves out quickly to more promising new developments in the industry
Seldom a major competitor in areas compatible with its stable productmarket base
Is frequently second in with a more cost-efficient product or service
Comes in to try to change the nature of competition by using technology to
drive down costs
Eg. Google after Yahoo established the market for search engines
Watches the kamikaze go in first to feel out the scene, then enters the market
Reactor
Does not appear to have a consistent product-market orientation
Not as aggressive in maintaining established products and markets as some
of its competitors
Not risk takers
Not willing to take as many risks as other competitors
Responds in those areas where it is forced to by environmental pressures
Reacts based on pressure
Not trying to be proactive but Reactive
Similar to defender in lack of aggression
Eg. Blockbuster when hit by Redbox & Netflix didnt change until
these two companies came out Blockbuster wasnt really trying to
adjust to new technology

What are the different stages in Nolans stages of growth? (Lecture 9b)
o Initiation: Initial introduction of computers to the organization. Batch processing
to automate clerical operations to achieve cost reduction, operational systems
focus, lack of management interest, and centralized development
o Contagion (expansion): Centralized rapid growth as users demand more
applications based on high expectations of benefits, move to online systems, trying
to satisfy user demands. Little control if any. IT expenses increase rapidly.
o Control: In response to management concern about cost vs. benefits, systems
projects are expected to show a return, plans are produced, and
methodologies/standards enforced. Planning controls are introduced.
o Integration: Considerable expenditure on integrating (via telecommunications and
databases) existing systems. User accountability for systems established and IT
provides a service to users. At this time, there is a transition to supporting
knowledge workers and from data processing
o Data administration: Information requirements rather than processing drive the
applications portfolio and information is shared within the organization. Database
capability is exploited as users understand the value of the information and are
willing to share it
19

Maturity: The planning and development of IT in the organization is closely


coordinated with the business development. Corporate wide systems are in place.
The IT department and the users share accountability regarding resources. IT is a
strategic partner.

50.
What is outsourcing? What are the different choices? And why do firms
outsource?
o IT outsourcing - Describes a process whereas an organization decides to contractout or sell the firms IT assets, people and/or activities to a third party vendor, who
in exchange provides and manages these assets and services for an agreed fee and
over an agreed time period.
o Outsourcing Options
Total: Outsource all IT
Selective: Outsource some aspect of IT
Transitional: Outsource legacy systems while working on new systems
o Why Firms Outsource
Reduced IT costs
Improved technology and services
Business focus
Downsizing and rightsizing
Access to knowledge
Reduced capital expenditure
Vendor value proposition
51.
How do firms gain a competitive advantage?
o An advantage gained over competitors by offering consumers value
Either by lower price or greater benefits and service that justifies higher
service
52.
Know the model that describes competitive parity versus a
temporary/sustainable competitive advantage:

20

53.

o
Know about the case studies that we discussed in class
o Cisco
o CVS
o Kodak
o Mrs Fields
o Zara

Textbook Questions
The textbook questions will be pulled from the questions that you have already seen during the
four quizzes. Familiarize yourself with the chapters and be prepared for questions similar to what
you have previously seen.

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First
Generation

Second
Generation

Third
Generation

Fourth
Generation

Fifth
Generation

Trend: Toward Easy-to-Use Multipurpose Network-Enabled Application


Packages for Productivity and Collaboration

Natural &
Object-Oriented
DBMS
User-WrittenPackaged Operating
Languages
Fourth-Generation
Programs Programs Systems
Multipurpose
Languages
Machine
Symbolic
High-Level
Graphic- Interface
Microcomputer
Languages Languages Languages
Network-Enabled
Packages
Expert-Assisted
Packages
Trend: Toward Visual or Conversational Programming Languages and
Tools

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