Chapter 14 practice questions
Which of the following statements best describes the effect that project structure has on overall project risk? Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals. Less structured projects are more able to be quickly developed, tested, and implemented using cutting-edge RAD and JAD development techniques, and pose less risk of running up unforeseen costs. Highly structured projects tend to be larger, affecting more organizational units, and run both the risk of out-of-control costs and becoming too difficult to control. The less structured a project, the greater the freedom of users to define the system. Highly structured projects are more complex, and run a higher risk of programmers and users misunderstanding the ultimate goals.
Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals.
Which of the following is not important when designing a new system to fit the organization? Government regulatory compliance Return on investment Health and safety Job design Ergonomics
Return on investment
On average, private sector IT projects underestimated budget and delivery time of systems by more than ________ percent. 70 40 30 80 50
50
Which method is used to assign weights to various features of a system? Portfolio analysis Real options model Scoring model TCO Information systems plan
Scoring model
Which of the following best describes the relationship between system implementation and user involvement and management support? System implementation benefits from management support, but does not require user support. System implementation rarely benefits from management support. System implementation generally benefits from high levels of user involvement and management support. System implementation rarely benefits from user involvement. System implementation benefits from user support, but does not require management support.
System implementation generally benefits from high levels of user involvement and management support.
Which of the following statements about project risk is not true? Very large-scale systems project have a failure rate that is 50 to 75 percent higher than that for other projects. The more dollars spent on a project, the greater the risk. The organizational complexity of a system contributes to the complexity of large-scale systems projects. The higher the number of implementation staff on a project, the lower the risk. The higher the number of organizational units affected by a project, the greater the risk.
The higher the number of implementation staff on a project, the lower the risk.
As described in the text, which of the following is not a risk factor in information systems projects? Scope of the project Project structure The link between information systems and corporate strategy Experience with technology Project size
The link between information systems and corporate strategy
All of the following are directly correlated with increased risk except: a large amount of organizational units affected. a large amount of technical expertise from project team and information team staff. a large amount of implementation staff. a large amount of time allocated for implementation. a large amount of dollars spent.
a large amount of technical expertise from project team and information team staff.
External integration tools: enable a project manager to properly document and monitor project plans. enable project team members to keep track of external costs of a project. enable a project to have sufficient technical support for project management and development. portray a project as a network diagram with numbered nodes representing project tasks. consist of ways to link the work of the implementation team with users at all organization levels.
consist of ways to link the work of the implementation team with users at all organization levels.
All of the following are intangible benefits of information systems except: improved asset utilization. increased organizational learning. improved operations. cost reduction. improved decision making.
cost reduction
Counterimplementation is best defined as: multiple implementations that are run in parallel. strategies used to overcome user resistance to change. critiquing the implementation of a system constructively. deliberate attempts to thwart the implementation of a system. all of the organizational challenges involved in implementing a system.
deliberate attempts to thwart the implementation of a system.
All of the following are indications of a failed information systems project except: employees are refusing to switch to the new system. employees require training to properly use the system. the system is not being used by anyone. a redesigned website has fewer visits to the customer support pages. employees have created a spreadsheet solution to manipulate the data generated by the system.
employees require training to properly use the system.
Formal planning and control tools: link the work of the implementation team with users at all organization levels. are used to select projects where many criteria must be considered. enable a project manager to properly document and monitor project plans. serve as a road map indicating the direction of systems development. are used to evaluate alternative systems projects.
enable a project manager to properly document and monitor project plans.
internal integration tools: consist of ways to link the work of the implementation team with users at all organization levels. enable end users to communicate with system developers. portray a project as a network diagram with numbered nodes representing project tasks. enable a project to have sufficient technical support for projects with challenging and complex technology. enable a project manager to properly document and monitor project plans.
enable a project to have sufficient technical support for projects with challenging and complex technology.
Which of the following refers to all organizational activities working toward the adoption, management, and routinization of a new information system? Final acceptance Acceptance Production Implementation Maintenance
implementation
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): strategic planning document. project plan. enterprise analysis. portfolio analysis. information systems plan.
information systems plan.
The ________ reviews and approves plans for systems in all divisions. board of directors project management group project team information systems steering committee corporate strategic planning committee
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: future present value. external rate of return. internal rate of return. present value of future cash flows. ROPM (real options pricing model).
internal rate of return.
In one strategic approach to determining information requirements, managers select a small number of ________ that reflect firm success and profitability. financial indicators key performance indicators efficiency measures strategic indicators output measures
key performance indicators
Information systems specialists often tend to seek solutions that: facilitate organizational tasks. employ clear documentation. optimize hardware and software efficiency at the expense of ease of use. are oriented towards solving business problems. are simplistic for end users to understand.
optimize hardware and software efficiency at the expense of ease of use.
The ________ is directly responsible for the individual systems project. project management group project team systems planning committee IS steering committee corporate strategic planning committee
project team
Which of the following variables in project management is an indicator of how well the project satisfies management objectives? Scope Risk Cost Time Quality
quality
The value of systems from a financial perspective essentially revolves around the issue of: adherence to information requirements. total cost of ownership. the cost of computing equipment. asset utilization. return on invested capital.
return on invested capital
In sociotechnical design: separate sets of technical and social design solutions are developed and compared. technical needs are given more importance than organizational needs. ergonomic features of a system are considered to be the most important consideration. human needs are given more importance than technical needs. systems analysts with proven backgrounds in sociological concerns rate and compare a system's social and technical aspects
separate sets of technical and social design solutions are developed and compared.
The differing background between users and information systems specialists is referred to as the: user-designer communications gap. user-designer expertise gap. information system specialist inefficiency. user expertise gap. user-designer paradigm.
user-designer communications gap.
________ methods rely on measures of cash flows into and out of the firm. Portfolio analysis Scoring model Cost effectiveness Capital budgeting Real options pricing
Capital budgeting
Which of the following is not something you would use to control risk factors in an information systems project? Capital budgeting models Gantt charts External integration tools Formal planning tools and formal control tools Internal integration tools
Capital budgeting models
Which of the following is at the top of the management structure for information systems projects in a large company? Project management group Corporate strategic planning group and information systems steering committee End-user managers Project team Information systems 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? Current business organization Current situation Changing environments Current infrastructure capabilities Firm's strategic plan
Current infrastructure capabilities
As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management? Time slippage Failure to obtain anticipated benefits Customer loyalty Cost overruns Technical shortfalls
Customer loyalty
Which of the following would not be covered in the Budget Requirements section of an information systems plan? Acquisition cycle Potential savings Requirements Difficulties meeting business requirements Financing
Difficulties meeting business requirements
According to the Project Management Institute, what is the leading factor in project success? Communication between technicians and end users Carefully monitored changes in work habits and procedures Upper management that financially backs the project Executive sponsors who are actively engaged End users who communicate their needs for the project
Executive sponsors who are actively engaged
Which of the following is not a factor in the high failure rate of reengineering systems projects? Changes in career paths signaled by the new system Changes in job descriptions signaled by the new system Resistance by key managers Employees' concerns about change Failures of the new technologies to perform according to plan
Failures of the new technologies to perform according to plan
Which of the following helps project managers identify bottlenecks in project development? Portfolio analysis tools Both internal and external integration tools External integration tools Formal planning and control tools Internal integration tools
Formal planning and control tools
Which of the following is not one of the activities of the systems analyst? Formulating of capital budgeting models Acting as a change agent Communicating with users Deciding which systems to develop Mediating between competing interest groups
Formulating of capital budgeting models
Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it? PERT chart Gantt chart Both a PERT chart and a Gannt chart Portfolio analysis Scoring model
Gantt chart
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? Labor expenditures Hardware, software, and labor expenditures Reduced costs in production and operation Increased sales of products Hardware and software expenditures
Hardware, software, and labor expenditures
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? High-benefit, low-risk projects Any project that might be beneficial High-risk projects Low cost, high benefit projects Low cost, low-benefit projects
High-benefit, low-risk projects
Which of the following is an example of using an internal integration tool? Developing a scoring model Including user representatives as active members of the project team Creating a Gantt chart Creating PERT chart Holding frequent project team meetings
Holding frequent project team meetings
As described in the text, which of the following statements about runaway or failed IT projects is not true? IT projects often fail because they lack sufficient computing capacity. One study found that private sector projects underestimate costs and time required by half. Large software projects on average run 33 percent over schedule. Large software projects on average run 66 percent over budget. 50% of businesses have experienced IT project failure in the last year
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? Treat as a routine project Pursue after all other projects are complete Cautiously examine Identify and develop Avoid
Identify and develop
Which of the following is not a tangible benefit of information systems? Reduced rate of growth in expenses Improved resource control Reduced facility costs Increased productivity Lower computer expenses
Improved resource control
Which of the following is an example of using an external integration tool? Creating a Gantt chart Developing a scoring model Including user representatives as active members of the project team Using portfolio analysis Creating a PERT chart
Including user representatives as active members of the project team
Which of the following statements about the user-designer communications gap is not true? When it is pronounced, it creates a very high risk of failure for a systems development project. It is one of the major reasons why users are driven out of the implementation process. It occurs because users and information systems specialists tend to have different backgrounds, interests, and priorities. It is one of the major reasons why user requirements are not properly incorporated into information systems. Information systems specialists prefer systems that are oriented toward solving business problems or facilitating organizational tasks.
Information systems specialists prefer systems that are oriented toward solving business problems or facilitating organizational tasks
A firm in the finance industry should do which of the following to ensure that it stays current with technology? Avoid projects that are very costly Select only low-risk, high-reward projects Have a few high-risk, high-benefit projects Select only low-cost, low risk projects Limit work to those projects with great rewards
Limit work to those projects with great rewards
You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company. Which of the following would you prepare to describe how the new system will affect a firm's structure and operations? Organizational impact analysis Internal integration report Information systems plan Sociotechnical design report Strategic planning document
Organizational impact analysis
To review a project's tasks and their interrelationships, you would use which of the following? Portfolio analysis PERT chart Scoring model Gantt chart PERT chart or a Gantt chart
PERT chart
Which of the following best describes the central method used in a portfolio analysis? Performing a weighted comparison of the criteria used to evaluate a system Interviewing a small number of top managers to identify their goals and criteria for achieving success Performing an inventory of all of the organization's information systems projects and assets Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information 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? Portfolio analysis Real options model Information systems plan TCO Scoring model
Portfolio analysis
