Chapter 5 Study Guide

Intangible Benefits

A benefit derived from the creation of an information system that CANNOT be measured in dollars and with certainty. Examples: - Improvement of employee morale - reduction of waste creation or resource consumption on

Tangible Benefits

A benefit derived from the creation of an information system that can be measured in dollars and with certainty. Examples: -include reduced personnel expenses, lower transaction costs, or higher profit margins Categories: - Cost reduction and avoidance - Error reduction - Increased flexibility - Increased speed of activity - Improvement of management planning and control - Opening new markets and increasing sales opportunities

Tangible Costs

A cost associated with an information system that can be measured in dollars and with certainty. Examples: hardware costs, labor costs, and operational costs including employee training and building renovations.

Intangible Costs

A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty. Examples: costs can include loss of customer goodwill, employee morale, or operational inefficiency

One-Time Cost

A cost associated with project start-up and development or system start-up. Examples: systems development, new hardware and software purchases, user training, site preparation, and data or system conversion.

Walk-Through

A peer group review of any product created during the systems development process

Which of the following is NOT an example of a project risk assessment factor? Customer's Commitment to system Familiarity with similar systems Project duration Time Organizational personnel changes resulting from system

Customer's Commitment to system

User Group Risk Assessment Factor

Familiarity with information systems development process Familiarity with proposed application area Familiarity with using similar systems

Project Size, Project Structure, Development Group, User Group

Project risk assessment factors

Which of the following is NOT included in the feasibility assessment Technical difficulties Project costs Project benefits System alternatives

System alternatives

Business Case

The justification for an information system, presented in terms of the tangible and intangible economic benefits and costs and the technical and organizational feasibility of the proposed system.

Baseline project plan

A major outcome and deliverable from the project initiation and planning phase that contains the best estimate of a project's scope, benefits, costs, risks, and resource requirements.

Technical Feasibility

A process of assessing the development organization's ability to construct a proposed system. Analysis should include an assessment of the development group's understanding of the possible target hardware, software, and operating environments to be used, as well as system size, complexity, and the group's experience with similar systems.

Development Group Risk Assessment Factor

Familiarity with target hardware, software development environment, tools, and operating system Familiarity with proposed application area Familiarity with building similar systems of similar size

Economic, Technical, Operational, Scheduling, Legal and contractual , Political

Feasibility Factors

Project Structure Risk Assessment Factor

New system or renovation of existing system(s) Organizational, procedural, structural, or personnel changes resulting from system User perceptions and willingness to participate in effort Management commitment to system Amount of user information in system development effort

Project Size Risk Assessment Factor

Number of members on the project team Project duration time Number of organizational departments involved in project Size of programming effort (e.g., hours, function points) Number of outsourcing partners