Exam 2: Analyzing the Business Case
Feasibility analysis is an ongoing task that must be performed throughout the systems development process.
True
Few nondiscretionary projects are predictable.
False
Discuss in detail at least four of the main reasons for systems requests, including examples where appropriate.
The main reasons for systems requests are improved service to customers, support for new products and services, better performance, more information, stronger controls, and reduced cost.
Improved service: Systems requests often are aimed at improving service to customers or users within the company. Allowing mutual fund investors to check their account balances on a Web site, storing data on rental car customer preferences, or creating an online college registration system are examples that provide valuable services and increased customer satisfaction.
Support for new products and services: New products and services often require new types or levels of IT support. For example, a software vendor might offer an automatic upgrade service for subscribers; or a package delivery company might add a special service for RFID-tagged shipments. In situations like these, it is most likely that additional IT support will be required. At the other end of the spectrum, product obsolescence can also be an important factor in IT planning. As new products enter the marketplace, vendors often announce that they will no longer provide support for older versions. A lack of vendor support would be an important consideration in deciding whether or not to upgrade.
Better performance: The current system might not meet performance requirements. For example, it might respond slowly to data inquiries at certain times, or it might be unable to support company growth. Performance limitations also result when a system that was designed for a specific hardware configuration becomes obsolete when new hardware is introduced.
More information: The system might produce information that is insufficient, incomplete, or unable to support the company's changing information needs. For example, a system that tracks customer orders might not be capable of analyzing and predicting marketing trends. In the face of intense competition and rapid product development cycles, managers need the best possible information to make major decisions on planning, designing, and marketing new products and services.
Stronger controls: A system must have effective controls to ensure that data is secure and accurate. Some common security controls include passwords, various levels of user access, and encryption, or coding of data to keep it safe from unauthorized users. Hardware-based security controls include biometric devices that can identify a person by a retina scan or by mapping a facial pattern. One biometric tool scans hands, rather than faces. The technology uses infrared scanners that create images with thousands of measurements of hand and finger characteristics. In addition to being secure, data also must be accurate. Controls should minimize data entry errors whenever possible. For example, if a user enters an invalid customer number, the order processing system should reject the entry immediately and prompt the user to enter a valid number. Data entry controls must be effective without being excessive. If a system requires users to confirm every item with an "Are you sure? Y/N" message, internal users and customers might complain that the system is not user-friendly.
Reduced cost: The current system could be expensive to operate or maintain as a result of technical problems, design weaknesses, or the changing demands of the business. It might be possible to adapt the system to newer technology or upgrade it. On the other hand, cost-benefit analysis might show that a new system would be more cost effective and provide better support for long-term objectives.
A feasibility study includes tests for ____ feasibility, which means that a proposed system will be used effectively after it has been developed.
MATCHING
Identify the letter of the choice that best matches the phrase or definition.
a.schedule feasibility
f.systems request
b.EPC
g.control
c.JIT
h.preliminary investigation
d.systems development
i.organization chart
e.EPOD
j.case for action
-A system needs this to ensure that data is secure and accurate.
Information systems that interact with customers usually receive low priority.
-Of the measures of feasibility in the accompanying figure, ____ considers points such as "Does the proposed platform have sufficient capacity for future needs?" and "Will the hardware and software environment be reliable?"
A systems analyst conducts a(n) ____ investigation to study the systems request and recommend specific action.
Often a change in one system has an unexpected effect on another system.
Whenever possible, a systems analyst should evaluate a proposed project based on tangible costs and benefits that represent actual (or approximate) dollar values.
-In the accompanying figure showing factors that affect IT systems projects, changing _________________________ is a major force affecting business and society in general.
MATCHING
Identify the letter of the choice that best matches the phrase or definition.
a.schedule feasibility
f.systems request
b.EPC
g.control
c.JIT
h.preliminary investigation
d.systems development
i.organization chart
e.EPOD
j.case for action
-When assessing this, a systems analyst must consider the interaction between time and costs.
The first step in evaluating feasibility is to accept and include all systems requests, even those that are not feasible.
Internal and external factors affect every business decision that a company makes, and IT systems are no exception.
Lara has just finished writing a short blurb about the internal factors that impacted the major decisions made by the company last fiscal year. Which of the following factors does NOT appear on that list?
Outline the steps typically conducted during the preliminary investigation.
Projects with very general scope definitions are at risk of expanding gradually, without specific authorization, in a process called project ____.
In sequence, the interviewing process involves a series of steps: ____, conduct the interview, document the interview, and evaluate the interview.
MATCHING
Identify the letter of the choice that best matches the phrase or definition.
a.schedule feasibility
f.systems request
b.EPC
g.control
c.JIT
h.preliminary investigation
d.systems development
i.organization chart
e.EPOD
j.case for action
-Technology that is expected to overshadow bar code technology in the future.
Projects where management has no choice in implementing them are called ____ projects.
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