Essentials of Systems Analysis and Design Chapter 4
Intangible benefit
A benefit derived from the creation of an information system, that cannot be easily measured in dollars or with certainty
Tangible Benefit
A benefit, derived from the creation of an information system, that can be messing in dollars and with certainty
Tangible Cost
A cost associated with an information system that can be easily measured in dollars and with certainty
Intangible Cost
A cost associated with an information system, that cannot be easily measured in terms of dollars or with certainty
One-time cost
A cost associated with project initiation and development, or system startup
Recurring Cost
A cost resulting from the ongoing evolution and use of the system
Project scope statement
A document prepared for the customer that described what the project will deliver and outlines generally at a high level all work required to complete the project
Internet
A network of interconnected individual networks that use a common protocol to communicate with each other
Walkthrough
A peer group review of any product created during the systems development process; also called a structured walkthrough
Economic Feasibility
A process of identifying the financial benefits associated with a development project
Incremental Commitment
A strategy in systems analysis and design in which the project is reviewed after each phase, and continuation of the project is rejustified in each of these review
Break-even Analysis
A type of cost-benefit analysis to identify at what point (if ever) benefits equal costs
Business Case
A written report that outlines the justification for an information system. The report highlights economic benefits and costs and the technical and organizational feasibility of the proposed system
Extranet
Internet-based communication to support B2B activities
Intranet
Internet-based communication to support business activities within a single organization
Baseline Project Plan (BPP)
One of the major outcomes and deliverables from the project initiation and planning phase. It contains the best estimate of the project's scope, benefits, costs, risks, and resource requirements
Present Value
The current value of a future cash flow
Discount Rate
The interest rate used to compute the present value of future cash flows
Legal and contractual feasibility
The process of assessing potential legal and contractual ramifications due to the construction of a system
Operational Feasibility
The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities
Schedule Feasibility
The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for effecting change
Technical Feasibility
The process of assessing the development organization's ability to construct a proposed system
Time Value of Money (TVM)
The process of comparing present cash outlays to future expected returns
Political Feasibility
The process of evaluating how key stakeholders within the organization view the proposed system
Electronic Data Interchange (EDI)
The use of telecommunication technologies to transfer business documents directly between organizations
