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This Document Contains Chapters 17 to 20 Chapter 17 Building Software to Support an Agile Organization Multiple Choice Questions 1. Which of the following is a business-related consequence of successful software? A. Increased revenues B. Damage to brand reputation C. Incurred liabilities D. All of these Answer: A. Increased revenues Rationale: Increased revenues is a consequence of software success. 2. Which of the following is a business-related consequence of software failure? A. Decreased productivity B. Damage to brand reputation C. Incurred liabilities D. All of these Answer: D. All of these Rationale: All of these are consequences of software failure. 3. What is the systems development life cycle? A. Involves establishing a high-level plan of the intended project and determining project goals. B. Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. C. Involves describing the desired features and operations of the system. D. The overall process for developing information systems from planning and analysis through implementation and maintenance. Answer: D. The overall process for developing information systems from planning and analysis through implementation and maintenance. Rationale: The SDLC is the overall process for developing information systems from planning and analysis through implementation and maintenance. 4. What is the overall process for developing information systems from planning and analysis through implementation and maintenance? A. Systems development life cycle B. Project management C. Systems management D. Project development life cycle Answer: A. Systems development life cycle Rationale: This is the definition of the SDLC. 5. Which of the following represents the phases in the SDLC? A. Plan, analyze, design, test, maintain, develop, implement B. Analyze, plan, design, test, develop, maintain, implement C. Plan, analyze, design, develop, test, implement, maintain D. Analyze, plan, develop, design, test, implement, maintain Answer: C. Plan, analyze, design, develop, test, implement, maintain Rationale: Plan, analyze, design, test, implement, maintain is the SDLC order. 6. What is the analysis phase in the SDLC? A. Involves establishing a high-level plan of the intended project and determining project goals. B. Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. C. Involves describing the desired features and operations of the system. D. Involves placing the system into production so users can begin to perform actual business operations with the system. Answer: B. Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. Rationale: This is the definition of the analysis phase. 7. Which phase of the SDLC gathers business requirements? A. Plan B. Analysis C. Test D. Design Answer: B. Analysis Rationale: Analysis gathers business requirements. 8. What is the design phase in the SDLC? A. Involves establishing a high-level plan of the intended project and determining project goals. B. Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. C. Involves describing the desired features and operations of the system. D. Involves placing the system into production so users can begin to perform actual business operations with the system. Answer: C. Involves describing the desired features and operations of the system. Rationale: This is the definition of the design phase. 9. What is the implementation phase in the SDLC? A. Involves establishing a high-level plan of the intended project and determining project goals. B. Involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. C. Involves describing the desired features and operations of the system. D. Involves placing the system into production so users can begin to perform actual business operations with the system. Answer: D. Involves placing the system into production so users can begin to perform actual business operations with the system. Rationale: This is the definition of the implementation phase. 10. What is a set of policies, procedures, standards, processes, practices, tools, techniques, and tasks that people apply to technical and management challenges? A. SDLC B. Methodology C. Waterfall D. Agile Answer: B. Methodology Rationale: This is the definition of methodology. 11. Which of the following is an issue related to the waterfall methodology? A. Flaws in accurately defining and articulating the business problem. B. Managing costs, resources, and time constraints. C. Assumes users can specify all business requirements in advance. D. All of these. Answer: D. All of these. Rationale: All of these are issues related to the waterfall methodology, according to the related figure in the text. 12. What consists of a series of tiny projects? A. Waterfall methodology B. Iterative development C. Agile methodology D. All of these Answer: B. Iterative development Rationale: This is the definition of iterative development. 13. Which methodology aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process with a design point that uses the bare minimum requirements? A. RAD methodology B. Agile methodology C. Waterfall methodology D. Extreme programming Answer: B. Agile methodology Rationale: This is the definition of the agile methodology. 14. Which of the following describes agile? A. Fast and efficient B. Small and nimble C. Lower cost D. All of these Answer: D. All of these Rationale: All of these describe agile. 15. Which of the following is not a primary form of agile methodology? A. RAD B. SDLC C. RUP D. Scrum Answer: B. SDLC Rationale: SDLC is not a form of agile methodology. 16. What is an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance? A. RAD methodology B. Agile methodology C. Waterfall methodology D. Extreme programming Answer: C. Waterfall methodology Rationale: This is the definition of the traditional waterfall methodology. 17. What emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process? A. RAD methodology B. Agile methodology C. Waterfall methodology D. Extreme programming Answer: A. RAD methodology Rationale: This is the definition of RAD. 18. What breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete? A. RAD methodology B. Agile methodology C. Waterfall methodology D. Extreme programming Answer: D. Extreme programming Rationale: This is the definition of extreme programming. 19. What is the success rate for a project using the waterfall methodology? A. 1 in 10 B. 2 in 10 C. 4 in 10 D. 8 in 10 Answer: A. 1 in 10 Rationale: The waterfall methodology has a 10 percent success rate, or 1 in 10. 20. Which of the following is a fundamental of the RAD methodology? A. Focus initially on creating a prototype that looks and acts like the desired system. B. Actively involve system users in the analysis, design, and development phases. C. Accelerate collecting the business requirements through an interactive and iterative construction approach. D. All of these. Answer: D. All of these. Rationale: All of these are fundamentals of the RAD methodology. 21. Which methodology provides a framework for breaking down the development of software into four gates? A. Scrum B. XP C. RAD D. RUP Answer: D. RUP Rationale: This is the definition of RUP. 22. Which of the following is not one of the four gates in the RUP methodology? A. Inception B. Collaboration C. Construction D. Transition Answer: B. Collaboration Rationale: Elaboration is the other gate in RUP, not collaboration. 23. Which gate in the RUP methodology provides a rough order of magnitude? A. Inception B. Elaboration C. Construction D. Transition Answer: B. Elaboration Rationale: Elaboration provides a rough order of magnitude. 24. Which gate in the RUP methodology includes building and developing the project? A. Inception B. Elaboration C. Construction D. Transition Answer: C. Construction Rationale: Construction includes building and developing the project. 25. Which methodology is owned by IBM? A. Scrum B. XP C. RAD D. RUP Answer: D. RUP Rationale: RUP is owned by IBM. 26. Which methodology uses small teams to produce small pieces of deliverable software using sprints, or 30-day intervals, to achieve an appointed goal? A. Scrum B. XP C. RUP D. RAD Answer: A. Scrum Rationale: This is the definition of Scrum. 27. Which methodology ends each day or begins with a stand-up meeting to monitor and control the development effort? A. Scrum B. XP C. RUP D. RAD Answer: A. Scrum Rationale: Scrum methodology ends each day or begins with a stand-up meeting to monitor and control the development effort. 28. How many days is a typical sprint in the Scrum methodology? A. 2 days B. 10 days C. 30 days D. 90 days Answer: C. 30 days Rationale: 30-day intervals are a sprint in the Scrum methodology. 29. Which of the following is not one of the tenets in the Agile Alliance's manifesto? A. Satisfy the customer through early and continuous delivery of valuable software. B. Do not allow changing requirements, especially late in development. C. Business people and developers must work together daily throughout the project. D. All of these. Answer: B. Do not allow changing requirements, especially late in development. Rationale: The manifesto states that projects should welcome changing requirements, even late in development. 30. Which of the following is not one of the primary principles an organization should follow for successful agile software development? A. Slash the budget. B. Keep requirements to a minimum. C. Test and deliver infrequently. D. Assign non-IT executives to software projects. Answer: C. Test and deliver infrequently. Rationale: Test and deliver frequently, not infrequently. True/False Questions 31. Traditional business risk models typically ignored software development, largely because most organizations considered the impact from software and software development on the business to be minor. Answer: True Rationale: Traditional business risk models typically ignored software development, largely because most organizations considered the impact from software and software development on the business to be minor. 32. Preventing liabilities is a business-related consequence of failed software. Answer: False Rationale: Preventing liabilities is a business-related consequence of successful software. 33. The implementation phase involves taking all of the detailed design documents from the design phase and transforming them into the actual system. Answer: False Rationale: The development phase involves taking all of the detailed design documents from the design phase and transforming them into the actual system. 34. The traditional waterfall methodology is a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance. Answer: True Rationale: The traditional waterfall methodology is a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance. 35. A prototype is a smaller-scale representation or working model of the users' requirements or a proposed design for an information system. Answer: True Rationale: A prototype is a smaller-scale representation or working model of the users' requirements or a proposed design for an information system. Fill in the Blank Questions 36. The ______________ phase involves establishing a high-level plan of the intended project and determining project goals. Answer: Planning 37. ____________ revenues are a business-related consequence of successful software. Answer: Increased 38. The _________ phase involves placing the system into production so users can begin to perform actual business operations with the system. Answer: Implementation 39. The ___________ phase involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals. Answer: Maintenance 40. Planning, ___________, design, development, testing, implementation, and maintenance are the seven phases in the SDLC. Answer: Analysis 41. The ___________ methodology is a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance. Answer: Waterfall 42. The rapid application development methodology emphasizes extensive user involvement in the rapid and evolutionary construction of working __________ of a system to accelerate the systems development process. Answer: Prototypes 43. The _________ methodology aims for customer satisfaction through early and continuous delivery of useful software components developed by an iterative process with a design point that uses the bare minimum requirements. Answer: Agile 44. ____________ creep occurs when the scope of the project increases. Answer: Scope 45. ___________ creep occurs when developers add extra features that were not part of the initial requirements. Answer: Feature 46. An error found during the ___________ phase is the most expensive to fix. Answer: Maintenance 47. Failure to manage __________ scope is one of the primary reasons for project failure. Answer: Project Essay Questions 48. List and describe each phase in the systems development life cycle. Answer: Planning phase-involves establishing a high-level plan of the intended project and determining project goals. Analysis phase-involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. Design phase-involves describing the desired features and operations of the system, including screen layouts, business rules, process diagrams, pseudo code, and other documentation. Development phase-involves taking all of the detailed design documents from the design phase and transforming them into the actual system. Testing phase-involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase. Implementation phase-involves placing the system into production so users can begin to perform actual business operations with the system. Maintenance phase-involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals. 49. Identify the business benefits associated with successful software development. Answer: The benefits associated with successful software development include increase revenues, repair brand reputation, prevent liabilities, and increase productivity. 50. Summarize the different software development methodologies. Answer: There are a number of different software development methodologies. The waterfall methodology is a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance. The rapid application development methodology (RAD) emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process. The extreme programming (XP) methodology breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete. The agile methodology is a form of XP. It aims for customer satisfaction through early and continuous delivery of useful software components. The Rational Unified Process (RUP) provides a framework for breaking down software development into four gates: Gate One, Inception; Gate Two, Elaboration; Gate Three, Construction; Gate Four, Transition. The Scrum methodology uses small teams to produce small pieces of deliverable software using sprints, or 30-day intervals, to achieve an appointed goal. 51. Define the relationship between the systems development life cycle and software development methodologies. Answer: All software development methodologies use the systems development life cycle. However, the way that they use it differs. For example, all projects must have planning and testing phases, but one project might use the waterfall approach and have the planning occur at the beginning of the project and the testing occur at the end. Another project might use the XP method and have small planning and testing phases occurring all the time. 52. Compare the waterfall methodology and the agile methodology. Answer: The waterfall methodology is a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance. The agile methodology is a form of XP (extreme programming). It aims to satisfy customers through early and continuous delivery of useful software components. These are two opposite ends of the spectrum in terms of systems development methodologies. The primary difference between the waterfall and XP methodologies is that XP divides its phases into iterations with user feedback. 53. Explain why software problems are business problems. Answer: Only 28 percent of projects are developed within budget and delivered on time and as promised, says a report from the Standish Group, a Massachusetts-based consultancy. The primary reasons for project failure are unclear or missing business requirements, skipping SDLC phases, failure to manage project scope, failure to manage the project plan, and changing technology. Chapter 18 Managing Organizational Projects Multiple Choice Questions 1. What is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements? A. Project management B. Project management software C. Scope D. None of these Answer: A. Project management Rationale: This is the definition of project management. 2. What are the three primary variables (or triple constraints) in any project? A. Time, cost, expense B. Time, expense, requirements C. Time, cost, scope D. Time, cost, quality Answer: C. Time, cost, scope Rationale: Time, cost, and scope are the three project variables. 3. What is the number one reason that IT projects fall behind schedule or fail? A. Change in business goals during the project. B. Lack of support from business management. C. Poor planning or poor project management. D. Change in technology during the project. Answer: C. Poor planning or poor project management. Rationale: Poor planning or poor project management is the number one reason why IT projects fall behind schedule or fail. 4. Which of the following is a characteristic of a successful project? A. Delivered on time. B. Delivered within budget. C. Meets the business's requirements. D. All of these. Answer: D. All of these. Rationale: All of these are characteristics of successful projects. 5. What is a project? A. A temporary endeavor undertaken to create a unique product, service, or result. B. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. C. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. D. Key dates when a certain group of activities must be performed. Answer: A. A temporary endeavor undertaken to create a unique product, service, or result. Rationale: This is the definition of a project. 6. What are project deliverables? A. A temporary endeavor undertaken to create a unique product or service. B. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. C. Any measurable, tangible, verifiable outcomes, results, or items that are produced to complete a project or part of a project. D. Represents key dates when a certain group of activities must be performed. Answer: C. Any measurable, tangible, verifiable outcomes, results, or items that are produced to complete a project or part of a project. Rationale: This is the definition of project deliverables. 7. What is a project manager? A. The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. B. Any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. C. Represents key dates when certain groups of activities must be performed. D. An individual who is an expert in project planning and management. Answer: D. An individual who is an expert in project planning and management. Rationale: A project manager is an individual who is an expert in project planning and management. 8. The PMI develops procedures and concepts necessary to support the profession of project management. Which of the following is not one of the three areas it focuses on? A. The distinguishing characteristics of a practicing professional (ethics). B. The content and structure of the profession's body of knowledge (standards). C. Change in business goals during project planning (management). D. Recognition of professional attainment (accreditation). Answer: C. Change in business goals during project planning (management). Rationale: Change in business goals during project planning is not one of the three areas PMI focuses on. 9. What is a project management office (PMO)? A. Measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. B. Represents key dates when certain groups of activities must be performed. C. An individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget. D. An internal department that oversees all organizational projects. Answer: D. An internal department that oversees all organizational projects. Rationale: This is the definition of PMO. 10. What is a project milestone? A. Measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project. B. A key date by which a certain group of activities must be performed. C. An individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget. D. An internal department that oversees all organizational projects. Answer: B. A key date by which a certain group of activities must be performed. Rationale: This is the definition of a project milestone. 11. The project management role has several responsibilities in the area of scope. Which of the following answers lists these responsibilities for scope? A. Communication, requirements, changes B. Expectations, resources, technology choices C. Quality, methodology D. None of these Answer: A. Communication, requirements, changes Rationale: Communication, requirements, and changes are the areas of scope for project management. 12. The project management role has several responsibilities in the area of cost. Which of the following answers lists these responsibilities for cost? A. Communication, requirements, changes B. Expectations, resources, technology choices C. Quality, methodology D. None of these Answer: B. Expectations, resources, technology choices Rationale: Expectations, resources, and technology choices are the area of cost for project management. 13. The project management role has several responsibilities in the area of time. Which of the following answers lists these responsibilities for time? A. Communication, requirements, changes B. Expectations, resources, technology choices C. Quality, methodology D. None of these Answer: C. Quality, methodology Rationale: Quality and methodology are the areas of time for project management. True/False Questions 14. PMI stands for the Project Management Institute. Answer: True Rationale: PMI stands for the Project Management Institute. 15. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Answer: True Rationale: This is the definition of project management. 16. The triple constraint includes time, cost, and quality. Answer: False Rationale: The triple constraint includes time, cost, and scope. All affect quality. 17. The relationships among the triple constraint variables are not dependent. Answer: False Rationale: The relationships among the variables in the triple constraint are interdependent. Fill in the Blank Questions 18. _________ management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Answer: Project 19. Time, cost, and ___________ are the three primary variables in any project. Answer: Scope 20. A(n) ____________ is a temporary endeavor undertaken to create a unique product, service, or result. Answer: Project 21. Project ______________ are any measurable, tangible, verifiable outcomes, results, or items that are produced to complete a project or part of a project. Answer: Deliverables 22. Project ____________ represent key dates when a certain group of activities must be performed. Answer: Milestones 23. A project ____________ is an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget. Answer: Manager 24. The project management ____________ is an internal department that oversees all organizational projects. Answer: Office Essay Questions 25. Explain the triple constraint and its importance in project management. Answer: Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. The triple constraint includes three interdependent variables-time, scope, and resources. If one changes, they all must change. 26. Describe the fundamentals of project management. Answer: The Project Management Institute (PMI) defines a project as a temporary endeavor undertaken to create a unique product, service, or result. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project deliverables are any measurable, tangible, verifiable outcomes, results, or items that are produced to complete a project or part of a project. Examples of project deliverables include design documents, testing scripts, and requirements documents. Project milestones represent key dates when a certain group of activities must be performed. For example, completing the planning phase might be a project milestone. If a project milestone is missed, then chances are the project is experiencing problems. The project manager is an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure the project is completed on time and on budget. The project manager is the person responsible for executing the entire project plan. A project management office (PMO) is an internal department that oversees all organizational projects. This group must formalize and professionalize project management expertise and leadership. One of the primary initiatives of the PMO is to educate the organization on the techniques and procedures necessary to run successful projects. Chapter 19 Outsourcing in the 21st Century Multiple Choice Questions 1. What is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems? A. Insourcing B. Outsourcing C. Business process outsourcing D. Offshore outsourcing Answer: A. Insourcing Rationale: This is the definition of insourcing. 2. What is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house? A. Insourcing B. Outsourcing C. Business process outsourcing D. Offshore outsourcing Answer: B. Outsourcing Rationale: This is the definition of outsourcing. 3. What is it called when a company uses organizations from developing countries to write code and develop systems? A. Insourcing B. Outsourcing C. Business process outsourcing D. Offshore outsourcing Answer: D. Offshore outsourcing Rationale: This is the definition of offshore outsourcing. 4. Which of the following is a benefit an organization can receive from outsourcing? A. Financial savings B. Increased technical abilities C. Market agility D. All of these Answer: D. All of these Rationale: All of these are benefits an organization can receive from outsourcing. 5. Which of the following is the most common function outsourced? A. IT B. HR C. Finance D. Marketing/sales Answer: A. IT Rationale: According to the figure Common Departments Outsourced by Organizations, IT is the most common function outsourced. 6. Which of the following is the least common function outsourced? A. IT B. HR C. Finance D. Marketing/sales Answer: D. Marketing/sales Rationale: According to the figure Common Departments Outsourced by Organizations, marketing/sales is the least common function outsourced. 7. Which of the following is the primary reason why companies outsource? A. Tap outside sources of expertise. B. Concentrate resources on core business. C. Reduce headcount and related expenses. D. Better manage the costs of internal processes. Answer: A. Tap outside sources of expertise. Rationale: According to the figure Reasons Companies Outsource, "tapping outside sources of expertise" is the primary reason why companies outsource. 8. Which of the following is the most uncommon reason why companies outsource? A. Tap outside sources of expertise. B. Concentrate resources on core business. C. Reduce headcount and related expenses. D. Better manage the costs of internal processes. Answer: D. Better manage the costs of internal processes. Rationale: According to the figure Reasons Companies Outsource, "better manage the costs of internal processes" is the most uncommon reason why companies outsource. 9. Which of the following are the influential driver(s) affecting the growth of outsourcing markets? A. Core competencies B. Rapid growth C. Industry changes D. All of these Answer: D. All of these Rationale: All of these are the influential drivers affecting the growth of outsourcing. 10. What is the outsourcing option that includes the closest location and direct customer control? A. Onshore outsourcing B. Nearshore outsourcing C. Offshore outsourcing D. None of these Answer: A. Onshore outsourcing Rationale: Onshore outsourcing offers the closest location and direct customer control. 11. All of the following are challenges of outsourcing except: A. Contract length. B. Competitive edge. C. Confidentiality. D. Reduced frustration and expense related to hiring and retaining employees in an exceptionally tight job market. Answer: D. Reduced frustration and expense related to hiring and retaining employees in an exceptionally tight job market. Rationale: Reduced frustration is not a challenge of outsourcing. It is a benefit. 12. Which of the following is an outsourcing challenge caused by contract length? A. Difficulties in getting out of a contract B. Problems in foreseeing future issues C. Problems in reforming an internal IT department D. All of these Answer: D. All of these Rationale: All of these are challenges associated with contract length. True/False Questions 13. Human resources is the most commonly outsourced function. Answer: False Rationale: IT is the most commonly outsourced function. 14. In the past, outsourcing was often used tactically, as a quick-fix, short-term solution to a particular need or problem which did not form part of an overall business strategy. Answer: True Rationale: In the past, outsourcing was often used tactically, as a quick-fix, short-term solution to a particular need or problem which did not form part of an overall business strategy. 15. Outsourcing is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems. Answer: False Rationale: Insourcing is a common approach that uses the professional expertise within an organization to develop and maintain the organization's information technology systems. 16. Insourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house. Answer: False Rationale: Outsourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house. 17. Offshore outsourcing is using organizations from developing countries to write code and develop systems. Answer: True Rationale: Offshore outsourcing is using organizations from developing countries to write code and develop systems. Fill in the Blank Questions 18. Businesses typically outsource their ___________ business functions, such as payroll and IT. Answer: Noncore 19. ___________ outsourcing refers to contracting an outsourcing arrangement with a company in a nearby country. Answer: Nearshore 20. Contract length, competitive edge, ____________, and scope definition are the four primary challenges for outsourcing. Answer: Confidentiality 21. ____________ uses the professional expertise within an organization to develop and maintain the organization's information technology systems. Answer: Insourcing 22. _________ is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house. Answer: Outsourcing 23. ___________ outsourcing is using organizations from developing countries to write code and develop systems. Answer: Offshore 24. Financial savings, increased technical abilities, and _________ agility are the benefits an organization can receive from outsourcing. Answer: Market Essay Questions 25. Describe why outsourcing is a critical business decision. Answer: Outsourcing can give the right combination of people, processes, and technology to operate efficiently and effectively in the global marketplace without burdening time and budget. 26. Explain the business benefits of outsourcing. Answer: Increased quality and efficiency, reduced operating expenses, increased focus on core competencies by outsourcing noncore processes, reduced exposure to risk, access to outsourcing service provider's economies of scale and expertise and best-in-class practices, access to advanced technologies, increased flexibility, avoidance of costly outlay of capital funds, reduced headcount and associated overhead expense, reduced frustrations and expense related to hiring and retaining employees in a tight job market, reduced time to market for products or services. 27. Describe the challenges of outsourcing. Answer: Competitive edge-effective and innovative use of IT can be lost when using an outsourcing service provider. Confidentiality-confidential information might be breached by an outsourcing service provider, especially one that provides services to competitors. Scope definition-scope creep is a common problem with outsourcing agreements. Contract length-most outsourcing contracts span several years and cause the issues discussed above. Contract length has three main issues: (1) difficulties in getting out of a contract, (2) problems in foreseeing future needs, and (3) problems in re-forming an internal IT department after the contract is finished. 28. Identify the three primary outsourcing options. Answer: Onshore outsourcing is engaging another company within the same country for services. Nearshore outsourcing is contracting an outsourcing arrangement with a company in a nearby country. Offshore outsourcing is using organizations from developing countries to write code and develop systems. Chapter 20 Developing a 21st-Century Organization Multiple Choice Questions 1. Which of the following is one of the 21st-century organizational trends on the business side? A. Uncertainty in terms of future business scenarios and economic outlooks. B. Emphasis on strategic analysis for cost reduction and productivity enhancement. C. Focus on improved business resiliency via the application of enhanced security. D. All of these. Answer: D. All of these. Rationale: All of these are 21st-century organizational trends on the business side. 2. Which of the following is not one of the primary information technology areas on which organizations are focusing? A. IT infrastructure B. Security C. Database D. Integration Answer: C. Database Rationale: Databases are not one of the primary information technology areas on which organizations are focusing. 3. Which of the following is a benefit a business can receive by deploying the latest in security technology? A. Fewer disruptions to organizational systems B. Increased productivity of employees C. Greater advances in administration D. All of these Answer: D. All of these Rationale: All of these are benefits from security. 4. Which of the following is a reason why businesses want to have the appropriate levels of authentication, access control, and encryption? A. Only authorized individuals can gain access to the network. B. Only authorized individuals can access applications for which they are entitled. C. Individuals cannot understand or alter information while in transit. D. All of these. Answer: D. All of these. Rationale: All of these are reasons why businesses want to have the appropriate levels of authentication, access control, and encryption. 5. Which of the following is the best security practice used today? A. Network firewalls B. User passwords C. Virus protection D. None of these Answer: C. Virus protection Rationale: Virus protection is the best security practice in use today. 6. What is the ability to purchase goods and services through a wireless Internet-enabled device? A. Mobile commerce B. Telematics C. Electronic tagging D. Radio frequency identification Answer: A. Mobile commerce Rationale: This is the definition of mobile commerce. 7. What is the blending of computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations? A. Mobile commerce B. Telematics C. Electronic tagging D. Radio frequency identification Answer: B. Telematics Rationale: This is the definition of telematics. 8. What is a technique for identifying and tracking assets and individuals via technologies such as RFID and smart cards? A. Mobile commerce B. Telematics C. Electronic tagging D. Radio frequency identification Answer: C. Electronic tagging Rationale: This is the definition of electronic tagging. 9. What uses active or passive tags in the form of chips or smart labels? A. Mobile commerce B. Telematics C. Electronic tagging D. Radio frequency identification Answer: D. Radio frequency identification Rationale: This is the definition of RFID. 10. Which of the following is one of the new series of business success factors that are helping to determine marketplace winners? A. Organization agility B. A focus on core competencies C. Instantaneous business response D. All of these Answer: D. All of these Rationale: All of these are part of the new series of business success factors. 11. Which of the following was the original design for the Internet? A. Email B. Document exchange C. Display of static content D. All of these Answer: D. All of these Rationale: All of these were the original design for the Internet. 12. Where is the position of IT infrastructure within the organization? A. Top B. Middle C. Bottom D. Depends on the company as to the position of the IT infrastructure Answer: C. Bottom Rationale: The IT infrastructure is on the bottom as displayed in the figure the position of infrastructure within the organization. 13. Which company was the victim of a distributed denial-of-service (DDoS) attack that forced the company to close operations and to eventually transfer over 2,500 customers to a rival organization? A. Marks & Spencer B. Public Broadcasting Service C. CloudNine Communications D. The Gap Answer: C. CloudNine Communications Rationale: CloudNine Communications was the victim of a DDoS. 14. Core business relationships and models are dramatically changing, including shifts from which of the following? A. Customer-centricity to product-centricity B. Mass customization to mass production C. The value in material things to the value of knowledge and intelligence D. All of these Answer: C. The value in material things to the value of knowledge and intelligence Rationale: The value in material things to the value of knowledge and intelligence is one of the shifts. A and B must be reversed to be shifts. 15. Which company is a leader in the transformation of the broadcasting industry? A. UPS B. PBS C. Cisco D. Sony Answer: B. PBS Rationale: PBS is transforming the broadcasting industry as discussed in the closing case. True/False Questions 16. IT infrastructure is the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals. Answer: True Rationale: IT infrastructure is the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals. 17. IT infrastructure, security, ebusiness, and integrations are the four primary information technology areas where organizations are focusing. Answer: True Rationale: IT infrastructure, security, ebusiness, and integrations are the four primary information technology areas where organizations are focusing. 18. The original design of the Internet and the web was for simple email, document exchange, and the display of static content, not for sophisticated and dynamic business applications that require access to back-end systems and databases. Answer: True Rationale: The original design of the Internet and the web was for simple email, document exchange, and the display of static content, not for sophisticated and dynamic business applications that require access to back-end systems and databases. 19. Telematics is a technique for identifying and tracking assets and individuals via technologies such as RFID and smart cards. Answer: False Rationale: Electronic tagging is a technique for identifying and tracking assets and individuals via technologies such as RFID and smart cards. 20. Telematics is the blending of computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations. Answer: True Rationale: Telematics is the blending of computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations. Fill in the Blank Questions 21. IT ____________ is the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization's goals. Answer: Infrastructure 22. Electronic __________ is a technique for identifying and tracking assets and individuals via technologies such as RFID and smart cards. Answer: Tagging 23. ___________ commerce is the ability to purchase goods and service through a wireless Internet-enabled device. Answer: Mobile 24. ___________ is the blending of computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations. Answer: Telematics 25. RFID uses ________ or passive tags in the form of chips or smart labels. Answer: Active Essay Questions 26. List and describe the four 21st-century trends that businesses are focusing on. Rank them in order of business importance and justify your ranking. Answer: The four primary information technology trends that businesses are focusing on include IT infrastructures, security, ebusiness, and integration. Student rankings of these four important IT areas will vary. The important part of the question will be the students' justifications for the ranking. 27. Explain how the integration of business and technology is shaping 21st-century organizations. Answer: The integration of business and technology has allowed organizations to increase their share of the global economy, transform the way they conduct business, and become more efficient and effective. Test Bank for Business Driven Technology Paige Baltzan 9780073376844, 9781259924927, 9781260727814, 9780073376905

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