chapter 14

On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent.

50

________ methods rely on measures of cash flows into and out of the firm.

Capital budgeting

________ is the interaction of people and machines in the work environment, including the design of jobs, health issues, and the end-user interface of information systems.

Ergonomics

A Gantt chart graphically depicts project tasks and their interrelationships.

FALSE

A benefit of using TCO analysis to evaluate an information technology investment is that it is able to incorporate intangible and "soft" factors such as benefits and complexity costs.

FALSE

Mandatory use of a system is one effective way of overcoming user resistance to an information system.

FALSE

More timely information is a tangible benefit of information systems.

FALSE

The goal of sociotechnical design is to create systems with better user interfaces and contribute to fewer health issues.

FALSE

The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects.

FALSE

User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built

FALSE

Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it?

Gantt chart

The ________ reviews and approves plans for systems in all divisions.

IS steering committee

________ benefits cannot be immediately measured but may lead to measurable gains over time.

Intangible

The most widely used project management software today is

Microsoft Project.

To review a project's tasks and their interrelationships, you would use a

PERT chart.

________ refers to the application of knowledge, skills, tools and techniques to achieve specific targets within specified budget and time constraints.

Project management

Which of the following statements best describes the effect of project structure on overall project risk?

Projects with relatively undefined goals are more likely to be subjected to users changing requirements and run a higher risk of not satisfying project goals.

An information system project's scope is directly related to its business requirements.

TRUE

An information systems plan contains a statement of corporate goals and specifies how information technology will support the attainment of those goals.

TRUE

Between 30 and 40 percent of all software projects are "runaway" projects that far exceed original schedule and budget projections.

TRUE

Counterimplementation refers to a deliberate strategy to thwart the implementation of an information system or an innovation in an organization.

TRUE

If an intended benefit of an IT project is improved decision making, managers should develop a set of metrics to quantify the value of an improved decision.

TRUE

Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run.

TRUE

Real options pricing models use the concept of options valuation borrowed from the financial industry.

TRUE

Scoring models are used most commonly to support decisions rather than as the final arbiters of system selection.

TRUE

The design of jobs, health issues, and the end-user interface of information systems are all considerations in the field of ergonomics.

TRUE

The larger the systems project, the more risk the project runs in terms of being completed on time, within budget, and according to project requirements.

TRUE

The relationship between users and information systems specialists has traditionally been a problem area for information systems implementation efforts.

TRUE

The systems analyst is the catalyst for the entire change process and is responsible for making sure that everyone involved accepts the changes created by a new system.

TRUE

Transaction and clerical systems that displace labor and save space typically produce more measurable, tangible benefits than management information systems.

TRUE

Which of the following types of projects is most likely to fail?

a business process redesign project that restructures workflow and responsibilities

You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT projects. Which types of projects would be best avoided?

all high-risk, low benefit projects

Which of the following tools would you use to control risk factors in an information systems project?

all of the above

The communications gap between users and systems designers is created by their differences in

all of the above.

Users prefer systems that

are oriented to facilitating organizational tasks and solving business problems.

In using a portfolio analysis to determine which IT projects to pursue, you would

balance high-risk, high reward projects with lower-risk projects.

You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow?

both B and C

Successful system building requires careful ________ management to minimize organizational resistance.

change

A(n) ________ is the individual who acts as the catalyst to ensure successful adaptation to a new system or innovation.

change agent

A user-designer ________ occurs when there is a difference in background, interests and priorities that impedes discussion and problem solving among users and IS specialists.

communications gap

External integration tools

consist of ways to link the work of the implementation team with users at all organization levels.

In CFS analysis, it is important to

distinguish between organizational and individual CSFs.

Formal planning and control tools

enable a project manager to properly document and monitor project plans.

Internal integration tools

enable a project to have sufficient technical support for project management and development.

Which type of tool helps project managers identify bottlenecks in project development?

formal planning and control tools

Which of the following is not one of the activities of the systems analyst?

formulation of capital budgeting models

An example of using an internal integration tool would be to

hold frequent project team meetings.

The organizational activities working toward the adoption, management, and routinization of a new information system are called

implementation.

Which of the following is not a tangible benefit of information systems?

improved resource control

Which of the following is a limitation of using a financial approach to evaluate information systems?

inability to assess costs from organizational disruption

One example of an implementation problem is

inadequate user training.

An example of using an external integration tool would be to

include user representatives as active members of the project team.

A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called a(n)

information systems plan.

ROPMs value information systems similar to stock options, in that

initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.

Which of the following is not a responsibility of effective change management?

integrating legacy systems

The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment (ROI), the net present value, and the

internal rate of return.

The principal method used in CFS analysis is to

interview a small number of top managers to identify their goals and criteria for achieving success.

The central method used in a portfolio analysis is to

inventory all of the organization's information systems projects and assets.

The criteria used for evaluation in a scoring model are usually determined by

lengthy discussions among the decision-making group.

Real Options Pricing Models (ROPMs) value systems projects similar to ________.

options, stock options

As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management?

organizational conflict

The central method used in a scoring model is to

perform a weighted comparison of the criteria used to evaluate a system.

Which method would you use is used to develop risk profiles for a firm's information system projects and assets?

portfolio analysis

The level of a project's risk is influenced primarily by

project size, project structure, and the level of technical expertise.

The ________ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists.

project team

The ________ is directly responsible for the individual systems project.

project team

One of the five major variables in project management, ________ is an indicator of how well the project satisfies management objectives.

quality

All of the following are intangible benefits of information systems except

reduced workforce.

The worth of systems from a financial perspective essentially revolves around the issue of

return on invested capital.

In working with ROPMs and options valuation, a call option is a(n)

right to purchase or sell an asset a later date at a fixed price.

The major variables in project management are

scope, time, cost, quality, and risk.

A(n) ________ is a method for deciding among alternative systems based on a system of ratings for selected objectives.

scoring model

Which method is used to assign weights to various features of a system?

scoring model

In sociotechnical design

separate sets of technical and social design solutions are developed and compared.

According to your reading of the chapter, change management is a process that

should be addressed before a project is developed.

At the top of the management structure for information systems projects in a large company is

the corporate strategic planning group.

A CSF approach to establishing an enterprise's information requirements is especially suitable for

the development of DSSs and ESSs.

To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use

the real option pricing model

The project risk will rise if the project team and the IS staff lack

the required technical expertise.

Which of the following is not an organizational factor in systems planning and implementation?

user interface