mis 361 chapt 4
79) Which section of the ISP deals with the set of long-range strategies chosen by the IS department? A) Overall systems needs strategies B) Mission and objectives of IS C) Informational inventory D) Conclusion
: A Difficulty: Difficult AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
95) Which of the following is an unknown that should be addressed when designing an Internet application? A) Connection speed B) How many users will access the application at one time C) How much it costs purchase satellite service D) What the time zone of the user is
: A Difficulty: Difficult AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
1) What is another term for nonintegrated systems? A) Islands of information B) ERP systems C) SAP systems D) Enterprise systems
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
13) Which of the following is NOT a characteristic of a steering committee when making IS identification and selections? A) Less concern with cost-benefit analysis B) Cross functional focus C) Narrow nonstrategic focus D) Larger and riskier projects
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
22) Considering evaluation criteria for classifying and ranking projects, which criterion concerns improving profits and customer service? A) Potential Benefits B) Project Duration C) Technical Risks D) Resource Availability
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
27) What is the final activity in the project identification and selection process? A) Selecting an IS project B) Producing the IS project C) Implementing the IS project D) Delete the project
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
28) ________ is a process of considering short- and long- term projects. A) Project selection B) Project identification C) Project determination D) Project analysis
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
31) Which of the following is NOT a factor when making a project selection decision? A) End-user development B) List of ongoing projects C) Current organizational environment D) Perceived and real needs
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
35) The term ________ is used when a project is reviewed after each stage to determine its continuance. A) Incremental commitment B) Reevaluation C) Project continuance D) Project re-planning
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
5) Which of the following is NOT a source for IS development requests? A) Customers B) Formal planning groups C) Business units D) IS managers
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
9) If a project has a small or narrow focus, it most likely was chosen by ________. A) A business unit B) Top management C) A steering committee D) The IS department
: A Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
18) Which of the following is NOT a reason a project would be removed from the project selection list? A) The IS department feels it is too difficult to implement B) Inconsistency with overall objectives C) Redundant functionality D) Unnecessary
: A Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
73) Which approach to planning begins with an analysis of an organization's mission? A) Top-down planning B) Top-down projects C) Bottom up planning D) Bottom up goals
: A Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
74) Identifying the relationships between organizational entities and each business function relates to which kind of matrix? A) Unit-to-function B) Location-to-unit C) Function-to-process D) Entity-to-process
: A Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
75) The second activity in the ISP process is ________. A) Describe the target situation, trends, and constraints B) Describe the current situation C) Develop a transition strategy and plans D) Develop the logical design
: A Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
77) Which of the following is NOT a component on the typical information systems plan? A) Corporation history B) Constraints on IS development C) Informational inventory D) The short-term plan
: A Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
32) When choosing a weighted system to determine project viability, what should the organization keep in mind? A) All requirements should be weighted equally. B) Weights are subjective. C) The total points have to equal 100. D) Requirements and constraints have equal weights.
: B Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
6) Why would an IS manager request an IS development project? A) To help meet the organization's goals B) To move to a new operating environment C) To provide a new service to customers D) To gain needed information
: B Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
66) What kind of statement is "We are in the business of designing, fabricating, and selling to retail stores high-quality wood furniture"? A) Business statement B) Mission statement C) Goal statement D) Corporate policy
: B Difficulty: Difficult AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
10) Which of the following factors does NOT have any influence on the selection of a potential project? A) Duration B) The IS manager list C) Risk D) Complexity
: B Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
14) Which group chooses projects that most often reflect the larger needs of the organization? A) Business unit B) Steering committee C) Functional manager D) Development group
: B Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
19) What is the second major activity in the project identification and selection process? A) Identifying potential projects B) Classifying IS development projects C) Choosing a final project D) Identifying a project team
: B Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
2) What is the first phase of the SDLC method? A) Analysis B) Planning C) Design D) Maintenance
: B Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
23) Which evaluation criterion for classifying and ranking projects deals with helping an organization achieve its long-term goals? A) Value chain analysis B) Strategic alignment C) Potential Benefits D) Resource availability
: B Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
65) When do executives develop a mission statement? A) At the beginning of the fiscal year B) During corporate strategic planning C) At the beginning of the project D) During the board of director meeting
: B Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
69) Which Porter strategy deals with competing in an industry on the basis of products to the consumer? A) Value added B) Low cost producer C) Product differentiation D) Product Focus
: B Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
29) If a project is selected, what is the most likely next step? A) The project will begin. B) The project will be funded. C) The project has to be signed off by management. D) The project is no longer considered.
: B Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
70) Which Porter strategy has a narrow market focus? A) Low cost producer B) Product niche C) Product differentiation D) Service cost to the consumer
: B Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
96) What stands as the most outstanding representation of global networking? A) Business to business applications B) The Internet C) Protocols D) Electronic commerce
: B Difficulty: Moderate AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
15) Which of the following is an example of a project coming from a top-down source? A) A project identified by a business unit B) A project identified by customers C) A project identified by a steering committee D) A project identified by managers
: C Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
24) What has assisted value chains in having the greatest improvement? A) Value chain analysis B) Analysis of organization's activities C) Information systems D) Removing some processes in the value chain
: C Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
37) Which of the following is NOT a reason why the planning-based approach for projects is better than the traditional approach? A) The planning based approach plans for the future. B) Data structures remain stable. C) Business processes remain the same for ten or more years. D) An organization's informational needs change more slowly.
: C Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
78) The overall IS plan may influence ________. A) Whether a systems analyst will be on the project B) The organization's strategic plan C) All development projects D) The mission of the company
: C Difficulty: Difficult AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
11) ________ will mostly likely choose projects that are easy to integrate with the current hardware and software. A) Top management B) Steering committees C) IS departments D) User departments
: C Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
20) Which of the following is NOT a possible evaluation criteria when ranking projects? A) Value chain analysis B) Strategic alignment C) Cross functional focus D) Technical difficulty
: C Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
25) How should one think about an organization when conducting a value chain analysis? A) Understand the costs associated with value chain activities. B) Identify the projects that support the organizations goals. C) Consider the organization in terms of inputs/outputs. D) Look at each individual process within a value chain.
: C Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
30) Which of the following is NOT a possible decision outcome for a project? A) Accept the project B) Reject the project C) Evaluate criteria D) Proof of concept
: C Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
63) Which of the following is NOT a step in the corporate strategic planning process? A) Current enterprise B) Future enterprise C) IS Corporate plan D) Strategic plan
: C Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
64) A ________ clearly states what business a company is in. A) Corporate statement B) Current plan C) Mission statement D) Strategic plan
: C Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
67) What refers to a broad and timeless goal for the organization? A) A competitive strategy B) The strategic plan C) The objective statements D) The mission statement
: C Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
71) Which of the following does a company NOT need to understand in order to build effective information systems? A) Its mission B) Its objectives C) Its current IS project list D) Its strategy
: C Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
76) The third activity in the ISP process is ________. A) Describe the target situation, trends, and constraints B) Describe the current situation C) Develop a transition strategy and plans D) Develop the logical design
: C Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
93) Which of the following is NOT a general class of Internet electronic commerce? A) B2B B) B2E C) G2B D) B2C
: C Difficulty: Easy AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
16) Which of the following groups does NOT identify a bottom-up development project? A) Business units B) Managers C) Top Management D) IS development group
: C Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
3) The SDLC planning phase consists of which activity? A) Project completion B) Project reorganization C) Project selection D) Project testing
: C Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
33) Which of the following is NOT included as a total when using a weighted multi-criteria project? A) Requirements B) Constraints C) Department rankings D) Overall totals
: C Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
36) How have organizations traditionally allocated IS resources? A) Through a formal process B) With a top-down process C) Through attempts to solve isolated organizational problems D) To update billing systems
: C Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
7) Which of the following is NOT a primary activity in project identification? A) Identify potential projects. B) Select IS projects. C) Stop current projects. D) Classify development projects.
: C Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
94) What do trading partners use to establish computer-to-computer links to allow for electronic data exchange? A) B2B B) The Internet C) EDI D) LAN
: C Difficulty: Moderate AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
17) As an analyst, which type of project would you most likely have contact with in the beginning of your career? A) Top-down projects B) Strategic goals projects C) Planning of projects D) Bottom-up projects
: D Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
21) Which evaluation criteria for classifying and ranking projects deals with level of difficulty of the project? A) Value chain analysis B) Resource availability C) Potential benefits D) Technical difficulty
: D Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
26) Which of the following is NOT an output in the value chain? A) Products sold to customers B) Services C) Distribution D) Costs
: D Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
34) What is the primary deliverable in the initial part of the planning phase? A) To determine costs B) To rank projects C) A detailed projet plan D) A schedule of specific IS development projects
: D Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
8) Which of the following roles does NOT identify potential development projects? A) CEO B) Steering committee C) User departments D) Customer focus groups
: D Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
72) Information systems planning includes all of the following steps except ________. A) Current situation B) Future situation C) Schedule of projects D) Selection of projects
: D Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
12) Which of the following is NOT a characteristic of top management when choosing an IS project selection? A) Largest project size B) Strategic focus C) Enterprise wide consideration D) Faster development
: D Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
4) Which of the following is true as it pertains to project identification and small organizations? A) Small organizations normally have a formal process. B) Small organizations projects are normally borne out of a larger planning process. C) The proposal process is rigorous. D) The highest ranking IS manager typically selects the projects.
: D Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
68) Which of the following is NOT a generic strategy identified by Porter? A) Low cost producer B) Product differentiation C) Product niche D) Product introduction
: D Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
56) Describe all of the sources of information systems development requests.
: During project identification and selection, a senior manager, a business group, an IS manager, or a steering committee identifies and assesses all possible systems development projects that an organization unit could undertake. Information systems development requests come from a variety of sources. One source is requests by managers and business units for replacing or extending an existing system to gain needed information or to provide a new service to customers. Another source for requests is IS managers who want to make a system more efficient and less costly to operate, or want to move it to a new operating environment. A final source of projects is a formal planning group that identifies projects for improvement to help the organization meet its corporate objectives. Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 57) Identify the three activities in project identification and selection. Describe at least one step in each activity. Answer: Project identification and selection consists of three primary activities: 1. Identifying potential development projects; 2. Classifying and ranking IS development projects; 3. Selecting IS development projects. Organizations vary as to how they identify projects. This process can be performed by a key member of top management, a steering committee, user departments, systems analyst or the development group/senior IS manager. The final activity in the project identification and selection process is the actual selection of projects for further development. Project selection is a process of considering both short- and long-term projects and selecting those most likely to achieve business objectives. Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 58) What is a top-down planning approach? Identify four advantages to the top-down planning approach over other planning approaches. Answer: A top-down planning approach is a generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization. Broader perspective, improved integration, improved management support, and better understanding are four advantages. Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 59) List and describe the six evaluation criteria for classifying and ranking projects. Answer: 1. Value Chain Analysis: Extent to which activities add value and costs when developing products and/or services. 2. Strategic Alignment: Extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals. 3. Potential Benefits: Extent to which the project is viewed as improving profits, customer service, and so forth, and the duration of these benefits. 4. Resource Availability: Amount and type of resources the project requires and their availability. 5. Project Size/Duration: Number of individuals and the length of time needed to complete the project. 6. Technical Difficulty/Risks: Level of technical difficulty to successfully complete the project within given time and resource constraints. Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 60) Define incremental commitment. Does it always result in a working system? Why or why not? Answer: Incremental commitment is a systems analysis and design strategy in which the project is reviewed after each phase and continuation of the project is rejustified in each of these reviews. Incremental commitment does not always result in a working system. Incremental commitment permits management and the project team to reevaluate the system's costs, benefits, and risks in light of changing business conditions. If business conditions, system costs, system benefits, and/or risks have changed, the project may be cancelled. Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 61) There is a need for improved information systems project and identification. Describe the indicators that support the previous statement. Answer: The need for improved information systems project identification and selection is readily apparent when we consider factors such as the following: 1. The cost of information systems has risen steadily and approaches 40 percent of total expenses in some organizations. 2. Many systems cannot handle applications that cross organizational boundaries. 3. Many systems often do not address the critical problems of the business as a whole or support strategic applications. 4. Data redundancy is often out of control, and users may have little confidence in the quality of data. 5. Systems maintenance costs are out of control as old, poorly planned systems must constantly be revised. 6. Application backlogs often extend three years or more, and frustrated end users are forced to create (or purchase) their own systems, often creating redundant databases and incompatible systems in the process. Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification: Synthesis 62) Which of the following is NOT a consideration when discussing the need for improved IS project selection? A) Systems cannot handle applications that cross organizational boundaries. B) Poorly planned systems must be constantly revised. C) Data redundancy is out of control. D) The cost of information systems has remained steady. Answer: D Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
46) The second step in selection of a project is reviewing the current projects and removing the ones that do not line up with strategic goals.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
48) Rejection of a project is the only outcome in the classifying and ranking of projects.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
50) An example of a requirement for project selection is ease of training.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
52) If a project is in the incremental commitment stage, it is waiting to start.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
54) The cost of information systems has steadily decreased over time.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
82) In information systems planning, technology blueprints would be found in the current situation step.
: FALSE Difficulty: Difficult AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
40) A large organization uses a less formal approach to project selection.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
44) When a steering committee chooses a project it is referred as a bottom-up source.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
45) Projects are identified by bottom and top up sources.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
49) Using a weighted system, requirements and restraints should be given equal weights.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
83) The most used approach to describing the current situation is a top-up approach.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
98) B2E is not a mode of electronic commerce.
: FALSE Difficulty: Easy AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
42) Top management most often chooses project with a narrow tactical focus.
: FALSE Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
51) The primary deliverable form the planning phase of IS development projects is incremental commitment.
: FALSE Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
80) Objective statements is the method of an organization fulfilling its mission and objectives.
: FALSE Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
47) Transforming raw materials into products is a part of a value chain.
: TRUE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
55) Every successful organization has a mission.
: TRUE Difficulty: Difficult AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
38) Organizations create new information systems to add value.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
41) A primary step in project identification is selecting IS development projects.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
53) The organization should have a good understanding of the business strategy for good project selection to occur.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
81) Hyundai practices the low-cost producer competitive strategy.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
84) When an organization reviews their short and long term goals for development, the organization uses an IS plan to document it.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification:
97) The most connected network in the world is the Internet.
: TRUE Difficulty: Easy AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
39) The scope of information systems is concerned with the entire company.
: TRUE Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
43) A development group selection method looks for projects with fewer development delays.
: TRUE Difficulty: Moderate AACSB: Information Technology LO: 4.1 Describe the project identification and selection process Classification:
85) Define and briefly discuss corporate strategic planning.
: To make effective project selection decisions, a corporation must know where it is, where it is going, and the path it will take to get there. Corporate strategic planning is based on this premise. Corporate strategic planning can be viewed as a three step process: (1) current enterprise, (2) future enterprise, and (3) strategic plan. During corporate strategic planning, mission statements, statements of future corporate objectives, and strategies are developed. Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 86) Identify and describe the generic competitive strategies. Provide an example for each strategy. Answer: Low-Cost Producer: This strategy reflects competing in an industry on the basis of product or service cost to the consumer. For example, in the automobile industry, the South Korean-produced Hyundai is a product line that competes on the basis of low cost. Product Differentiation: This competitive strategy reflects capitalizing on a key product criterion requested by the market (for example, high quality, style, performance, roominess). In the automobile industry, many manufacturers are trying to differentiate their products on the basis of quality (e.g., "At Ford, quality is job one."). Product Focus or Niche: This strategy is similar to both the low-cost and differentiation strategies but with a much narrower market focus. For example, a niche market in the automobile industry is the convertible sports car market. Within this market, some manufacturers may employ a low-cost strategy and others may employ a differentiation strategy based on performance or style. Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 87) Define and discuss information systems planning. Answer: ISP is an orderly means of assessing the information needs of an organization, and defining the systems, databases, and technologies that will best satisfy those needs. During ISP, current and future organization informational needs will be modeled. Also, strategies and project plans to move the current information system and technologies to their desired future state will be developed. ISP looks at information systems and technologies in terms of how they can help the business achieve its objectives defined during corporate planning. ISP includes three key activities. The first activity involves assessing current IS-related assets; the second step involves developing target blueprints of the resources; a series of scheduled projects is defined in the third step. Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 88) Briefly describe four of the ten types of matrices that are beneficial during information systems planning. Answer: The types of matrices typically developed include the following: • Location-to-Function: This matrix identifies which business functions are being performed at various organizational locations. • Location-to-Unit: This matrix identifies which organizational units are located in or interact with a specific business location. • Unit-to-Function: This matrix identifies the relationships between organizational entities and each business function. • Function-to-Objective: This matrix identifies which functions are essential or desirable in achieving each organizational objective. • Function-to-Process: This matrix identifies which processes are used to support each business function. • Function-to-Data Entity: This matrix identifies which business functions utilize which data entities. • Process-to-Data Entity: This matrix identifies which data are captured, used, updated, or deleted within each process. • Process-to-Information System: This matrix identifies which information systems are used to support each process. • Data Entity-to-Information System: This matrix identifies which data are created, updated, accessed, or deleted in each system. • Information System-to-Objective: This matrix identifies which information systems support each business objective as identified during organizational planning. Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 89) Describe three ways CASE tools help to sort out the information in matrices. Answer: Management of Information: A big part of working with complex matrices is managing the information. Using the dictionary features of the CASE tool repository, terms can be defined or modified in a single location. All planners will therefore have the most recent information. Matrix Construction: The reporting system within the CASE repository allows matrix reports to be easily produced. Because planning information can be changed at any time by many team members, an easy method to record changes and produce the most up-to-date reports is invaluable to the planning process. Matrix Analysis: Possibly the most important feature CASE tools provide to planners is the ability to perform complex analyses within and across matrices. This analysis is often referred to as affinity clustering. Difficulty: Easy AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 90) What is affinity clustering? Why is it important? Answer: Affinity clustering is the process of arranging planning matrix information so that clusters of information with a predetermined level or type of affinity are placed next to each other on a matrix report. It is important because it allows planners a means to perform complex analyses. Thus, affinity clustering is the process of arranging matrix information so that clusters of information with some predetermined level or type of affinity are placed next to each other on a matrix report. Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 91) Define and briefly discuss information systems planning (ISP). Answer: Information systems planning is an orderly means of assessing the information needs of an organization, and defining the systems, databases, and technologies that will best satisfy those needs. During ISP, current and future organization informational needs will be modeled. Also, strategies and project plans to move the current information system and technologies to their desired future state will be developed. ISP looks at information systems and technologies in terms of how they can help the business achieve its objectives defined during corporate planning. ISP includes three key activities. The first activity involves assessing current IS-related assets; the second step involves developing target blueprints of the resources; a series of scheduled projects is defined in the third step. Difficulty: Moderate AACSB: Information Technology LO: 4.2 Describe the corporate strategic planning and information systems planning process Classification: Synthesis 92) What is a large network of networks? A) Electronic commerce B) The Internet C) EDI D) A local area network Answer: B Difficulty: Easy AACSB: Information Technology LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business Classification:
