Chapter 14

Which of the following variables in project management is an indicator of how well the project satisfies management objectives? A. Scope B. Quality C. Time D. Cost E. Risk

Quality

On average, private sector IT projects underestimated budget and delivery time of systems by more than ________ percent. A. 30 B. 40 C. 50 D. 70 E. 80

50

Which of the following project management variables defines what work is or is not included in a project? A. Goals B. Risk C. Quality D. Scope E. Cost

Scope

Which method is used to assign weights to various features of a system? A. Information systems plan B. Scoring model C. Portfolio analysis D. TCO E. Real options model

Scoring model

Which of the following statements about scoring models is not true? A. There are many qualitative judgments involved in using a scoring model B. A scoring model is useful for selecting projects where many criteria must be considered C. The most important outcome of a scoring model is the score D. A scoring model requires experts who understand the issues and the technology E. It is appropriate to cycle through a scoring model several times

The most important outcome of a scoring model is the score

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

True

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

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 or False

True

Intangible benefits may lead to quantifiable gains in the long run. True or False

True

On average, private sector projects are underestimated by half in terms of budget and time required to deliver the complete system promised in the system plan. True or False

True

Project management refers to the application of knowledge, skills, tools and techniques to achieve specific targets within specified budget and time constraints. True or False

True

The criteria used in a scoring model are usually the result of lengthy discussions among the decision-making group. True or False

True

The data entry screen is an example of a user interface. True or False

True

The project team is supervised by information systems managers and end-user managers responsible for overseeing specific information systems projects. True or False

True

All of the following are intangible benefits of information systems except: A. improved asset utilization B. increased organizational learning C. improved operations D. cost reduction E. improved decision making

cost reduction

All of the following are indications of a failed information systems project except: A. employees are refusing to switch to the new system B. employees have created a spreadsheet solution to manipulate the data generated by the system C. a redesigned website has fewer visits to the customer support pages D. employees require training to properly use the system E. the system is not being used by anyone

employees require training to properly use the system

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): A. project plan B. portfolio analysis C. information systems plan D. enterprise analysis E. strategic planning document

information systems plan

The ________ reviews and approves plans for systems in all divisions. A. project management group B. project team C. information systems steering committee D. corporate strategic planning committee E. board of directors

information systems steering committee

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: A. future present value B. internal rate of return C. external rate of return D. ROPM (real options pricing model) E. present value of future cash flows

internal rate of return

In one strategic approach to determining information requirements, managers select a small number of ________ that reflect firm success and profitability. A. efficiency measures B. output measures C. strategic indicators D. key performance indicators E. financial indicators

key performance indicators

The ________ is directly responsible for the individual systems project. A. project management group B. project team C. IS steering committee D. corporate strategic planning committee E. systems planning committee

project team

The value of systems from a financial perspective essentially revolves around the issue of: A. total cost of ownership B. adherence to information requirements C. asset utilization D. return on invested capital E. the cost of computing equipment

return on invested capital

________ methods rely on measures of cash flows into and out of the firm. A. Scoring model B. Portfolio analysis C. Real options pricing D. Capital budgeting E. Cost effectiveness

Capital budgeting

Which of the following is at the top of the management structure for information systems projects in a large company? A. Project team B. Project management group C. Corporate strategic planning group and information systems steering committee D. Information systems managers E. End-user managers

Corporate strategic planning group and information systems steering committee

Which of the following would not be covered in the Strategic Business Plan Rationale section of an information systems plan? A. Current situation B. Current business organization C. Firm's strategic plan D. Changing environments E. Current infrastructure capabilities

Current infrastructure capabilities

As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management? A. Cost overruns B. Customer loyalty C. Time slippage D. Technical shortfalls E. Failure to obtain anticipated benefits

Customer loyalty

Which of the following would not be covered in the Budget Requirements section of an information systems plan? A. Requirements B. Potential savings C. Difficulties meeting business requirements D. Financing E. Acquisition cycle

Difficulties meeting business requirements

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. True or False

False

Scoring models are most commonly used to make the final decision when selecting different systems. True or False

False

The cost of a project is based on the time to complete a project multiplied by the cost of computer resources required to complete the project. True or False

False

Transaction and clerical systems that displace labor and save space typically produce less tangible benefits than management information systems. True or False

False

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? A. Increased sales of products B. Hardware and software expenditures C. Labor expenditures D. Reduced costs in production and operation E. Hardware, software, and labor expenditures

Hardware, software, and labor expenditures

A firm in the finance industry should do which of the following to ensure that it stays current with technology? A. Select only low-cost, low risk project B. Limit work to those projects with great rewards C. Select only low-risk, high-reward projects D. Have a few high-risk, high-benefit projects E. Avoid projects that are very costly

Have a few high-risk, high-benefit projects

You have been hired by a firm in a non-information-intensive industry to evaluate its inventory of systems and IT projects. Which types of projects should the firm focus on? A. High-risk projects B. Low cost, low-benefit projects C. High-benefit, low-risk projects D. Any project that might be beneficial E. Low cost, high benefit projects

High-benefit, low-risk projects

The ________ is composed of department heads from both end-user and information systems areas. A. project management group B. project team C. IS steering committee D. corporate strategic planning committee E. system planning committee

IS steering committee

As described in the text, which of the following statements about runaway or failed IT projects is not true? A. Large software projects on average run 33 percent over schedule B. Large software projects on average run 66 percent over budget C. 50% of businesses have experienced IT project failure in the last year D. IT projects often fail because they lack sufficient computing capacity E. One study found that private sector projects underestimate costs and time required by half

IT projects often fail because they lack sufficient computing capacity.

Which of the following strategies represents the proper approach to a low risk, high reward project? A. Identify and develop B. Avoid C. Treat as a routine project D. Pursue after all other projects are complete E. Cautiously examine

Identify and develop

Which of the following is not a tangible benefit of information systems? A. Reduced rate of growth in expenses B. Lower computer expenses C. Improved resource control D. Increased productivity E. Reduced facility costs

Improved resource control

Which of the following is a limitation of using a financial approach to evaluate information systems? A. Inability to measure ROI B. Inability to control vendor costs C. Inability to assess risk D. Inability to assess costs from organizational disruption E. Inability to assess the cost of technology

Inability to assess costs from organizational disruption

Enhanced employee goodwill falls under what category of costs and benefits of information systems? A. Costs B. Tangible benefits C. Cost savings D. Intangible costs E. Intangible benefits

Intangible benefits

Which of the following best describes the central method used in a scoring model? A. Performing an inventory of all of the organization's information systems projects and assets B. Performing a weighted comparison of the criteria used to evaluate a system C. Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information D. Interviewing a small number of top managers to identify their goals and criteria for achieving success E. Calculating the return on investment for each system, and choosing the system with the best return

Performing a weighted comparison of the criteria used to evaluate a system

Which of the following best describes the central method used in a portfolio analysis? A. Performing an inventory of all of the organization's information systems projects and assets B. Performing a weighted comparison of the criteria used to evaluate a system C. Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information D. Interviewing a small number of top managers to identify their goals and criteria for achieving success E. Scoring proposed systems on a number of dimensions, and selecting the one with the highest score

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

Which method would you use to develop risk profiles for a firm's information system projects and assets? A. Information systems plan B. Scoring model C. Portfolio analysis D. TCO E. Real options model

Portfolio analysis

Which of the following would not be covered in the Management Strategy section of an information systems plan? A. Acquisition plans B. Progress reports C. Organizational realignment D. Management controls E. Major training initiatives

Progress reports