Chapter 14 MIS

A Gantt chart graphically depicts project tasks and their interrelationships. True False

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. True False

False

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

False

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

False

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

False

The larger the systems project, the greater the chance that the project will be completed on time, within budget, and according to project requirements. True False

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. True False

False

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 and B neither A nor B

Gantt chart

The ________ reviews and approves plans for systems in all divisions. IS steering committee corporate strategic planning committee project team chief executive officer (CEO) project management group

IS steering committee

The most widely used project management software today is IBM Project Guide. Microsoft Project. Microsoft Excel. Vertabase.

Microsoft Project.

To review a project's tasks and their interrelationships, you would use a Gantt chart. PERT chart. either A or B. neither A nor B.

PERT chart.

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. Highly structured projects are more complex, and run a higher risk of programmers and users misunderstanding the ultimate goals. 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. 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. the less structured a project, the greater the freedom of users to define the system

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 types of projects is most likely to fail? redesigning a user interface to an online investment site integration of a third-party automated payment system replacement of middleware with Web services for legacy application integration building a Web-based interface to an existing system a business process redesign project that restructures workflow and responsibilities

a business process redesign project that restructures workflow and responsibilities

Which of the following projects is the riskiest? a project that will displace employees a project that requires technical expertise that your firm's IT employees do not have a project that managers are concerned will affect their roles and job descriptions a project that has a strict deadline, or sales will suffer a project that will automate many clerical duties

a project that managers are concerned will affect their roles and job descriptions

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? none, any project might be beneficial any low-benefit projects low cost, high benefit projects any high-risk projects all high-risk, low-benefit projects

all high-risk, low-benefit projects

Users prefer systems that work with existing DBMS. are capable of storing much more data than they need. have an easy-to-learn interface. are able to provide optimum hardware and software efficiency. are oriented to facilitating organizational tasks and solving business problems.

are oriented to facilitating organizational tasks and solving business problems.

In using a portfolio analysis to determine which IT projects to pursue, you would select only low-risk, high-reward projects. select the most low-risk projects from the inventory. limit work to those projects with great rewards. avoid projects that were very costly. balance high-risk, high reward projects with lower-risk projects.

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? increased sales of products hardware and software expenditures labor expenditures reduced costs in production and operation both B and C

both B and C

External integration tools consist of ways to link the work of the implementation team with users at all organization levels. enable a project manager to properly document and monitor project plans. portray a project as a network diagram with numbered nodes representing project tasks. enable a project to have sufficient technical support for project management and development.

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

As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management? customer loyalty technical shortfalls cost overruns time slippage failure to obtain anticipated benefits

customer loyalty

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

employees require training to properly use the system.

Formal planning and control tools enable a project to have sufficient technical support for project management and development. consist of ways to link the work of the implementation team with users at all organization levels. portray a project as a network diagram with numbered nodes representing project tasks. enable a project manager to properly document and monitor project plans. enable senior management to track the development of systems.

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

Internal integration tools enable end users to communicate with system developers. consist of ways to link the work of the implementation team with users at all organization levels. enable a project manager to properly document and monitor project plans. portray a project as a network diagram with numbered nodes representing project tasks. enable a project to have sufficient technical support for project management and development.

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? external integration tools formal planning and control tools internal integration tools both B and C

formal planning and control tools

Which of the following is not one of the activities of the systems analyst? communication with users formulation of capital budgeting models deciding which systems to develop mediating between competing interest groups acting as a change agent

formulation of capital budgeting models

An example of using an internal integration tool would be to define task dependencies. create a PERT chart. include user representatives as active members of the project team. hold frequent project team meetings. develop a system planning document for technical specialists.

hold frequent project team meetings.

The organizational activities working toward the adoption, management, and routinization of a new information system are called acceptance. maintenance. implementation. production. final acceptance.

implementation.

Which of the following is not a tangible benefit of information systems? increased productivity improved resource control lower computer expenses end user satisfaction reduced rate of growth in expenses

improved resource control

Which of the following is a limitation of using a financial approach to evaluate information systems? inability to assess the cost of technology inability to assess risk inability to measure ROI inability to control vendor costs inability to assess costs from organizational disruption

inability to assess costs from organizational disruption

One example of an implementation problem is inadequate user training. changes in job activities and responsibilities. poor user interface. reduction in labor force. project running over budget.

inadequate user training.

An example of using an external integration tool would be to create a PERT chart. hold frequent project team meetings. include user representatives as active members of the project team. define task dependencies.

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) portfolio analysis. enterprise analysis. strategic planning document. information systems plan. project plan.

information systems plan.

ROPMs (real options pricing models) value information systems similar to stock options, in that the price paid today for information systems reflects their future cash flows. a company's worth can be evaluated by the worth of their ROPMs. ROPMs can be bought and sold like stocks. expenditures and benefits from IT projects are seen as inflows and outflows of cash that can be treated themselves like options. initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.

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 ensuring users are properly trained training users of the new system enforcing user participation at all stages of system development dealing with fear and anxiety about new systems

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. future present value. external rate of return. ROPM (real options pricing model). present value of future cash flows

internal rate of return.

The central method used in a portfolio analysis is to survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information. interview a small number of top managers to identify their goals and criteria for achieving success. inventory all of the organization's information systems projects and assets. score proposed systems on a number of dimensions, and select the one with the highest score. perform a weighted comparison of the criteria used to evaluate a system.

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

The criteria used for evaluation in a scoring model are usually determined by portfolio analysis. project managers. the IS steering committee. lengthy discussions among the decision-making group. systems analysts.

lengthy discussions among the decision-making group.

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? sociotechnical design report internal integration report information systems plan organizational impact analysis strategic planning document

organizational impact analysis

The central method used in a scoring model is to interview a small number of top managers to identify their goals and criteria for achieving success. inventory all of the organization's information systems projects and assets. perform a weighted comparison of the criteria used to evaluate a system. survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information. calculate the return on investment for each system, and choose the system with the best return.

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

Which method would you use to develop risk profiles for a firm's information system projects and assets? real options model information systems plan scoring model TCO portfolio analysis

portfolio analysis

The ________ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists. corporate strategic planning committee project team IS steering committee project management group system planning committee

project team

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

project team

Which of the following project management variables indicates how well the project satisfies management objectives? risk scope quality goals cost

quality

Which of the following tools is not one you would use to control risk factors in an information systems project? external integration tools internal integration tools Gantt charts real options pricing models formal planning tools and formal control tools

real options pricing models

All of the following are intangible benefits of information systems except increased organizational learning. reduced workforce. employee morale. improved asset utilization. improved operations.

reduced workforce.

The worth of systems from a financial perspective essentially revolves around the issue of asset utilization. adherence to information requirements. return on invested capital. total cost of ownership. the cost of computing equipment.

return on invested capital.

In working with ROPMs (real option pricing models) and options valuation, a call option is a(n) an obligation to sell an asset at a later date at a fixed price. right to purchase an asset at a later date at a strike price. obligation to either purchase or sell an asset at a later date at a strike price. obligation to purchase an asset at a later date at a fixed price. right to purchase or sell an asset at a later date at a fixed price.

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

Which method is used to assign weights to various features of a system? scoring model information systems plan real options model TCO portfolio analysis

scoring model

In sociotechnical design systems analysts with proven backgrounds in sociological concerns rate and compare a system's social and technical aspects. ergonomic features of a system and the system's technical design are given equal importance. separate sets of technical and social design solutions are developed and compared. all of the above.

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. is used primarily to mandate user acceptance. must be addressed in all systems development. is introduced after the system is developed. begins when a project is implemented.

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 CIO. project management. the board of directors. the corporate strategic planning group. chief executive officer (CEO).

the corporate strategic planning group.

To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use a portfolio analysis. capital budgeting. the net present value. the real option pricing model. a scoring model.

the real option pricing model.

The project risk will rise if the project team and the IS staff lack a committed management group of executive leaders. legacy applications as a starting point. good equipment. the required technical expertise. financial studies and plans.

the required technical expertise.

Which of the following is not an organizational factor in systems planning and implementation? user interface standards and performance monitoring government regulatory compliance health and safety

user interface

Which of the following is not one of the five main variables affecting project success? vendors time quality risk cost

vendors

On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent. 40 30 70 50 60

50

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

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 False

True

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

True

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

True

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

True

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

True

The goal of sociotechnical design is to create systems where the organization and the technology change and adjust to one another. True False

True

Which of the following statistics from studies on failed projects is not true? Between 30 and 40 percent of all software projects are "runaway" projects that far exceed the original schedule and budget projections and fail to perform as originally specified. Large software projects on average run 66 percent over budget and 33 percent over schedule. Thirty-two percent of technology investments are completed on time, within budget, and with requirements met. Only 32 percent of all technology investments were completed on time, on budget, and with all features and functions originally specified. The average cost overrun of IT projects is 20 percent.

The average cost overrun of IT projects is 20 percent.

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

True

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

True

Intangible benefits generally do not lead to quantifiable gains in the long run. True False

True

More timely information is a intangible benefit of information systems. True False

True