CH-4 Identifying and Selecting Systems Development Projects – Modern Systems Analysis and Design : Exam Guide

Chapter 4 Identifying and Selecting Systems Development Projects 1) Non-integrated systems used in the past are being replaced with cooperative, integrated enterprise systems that can easily support information sharing. Answer: True 2) Systems analysis is the first phase of the systems development life cycle. Answer: False 3) During project identification and selection, all possible systems development projects that an organizational unit can undertake are identified and assessed. Answer: True 4) An IS manager, a formal planning group, a user department, and a development group are possible sources for information systems development projects. Answer: True 5) Requirements structuring is the first activity of the project identification and selection phase. Answer: False 6) Projects identified by top management have a cross-functional focus. Answer: False 7) When identifying and selecting projects, the development group is very concerned with cost-benefit analysis. Answer: False 8) When comparing alternative methods for making information systems identification and selection decisions, top management has the smallest project size and a cross-functional focus. Answer: False 9) To maintain consistency, top management or a steering committee should classify and rank projects, not the IS group or individual business units. Answer: False 10) The criteria used to evaluate projects will vary by organization. Answer: True 11) Potential benefits are the process of analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred for doing so; this process usually also includes a comparison with the activities, added value, and costs of other organizations for the purpose of making improvements in the organization's operations and performance. Answer: False 12) When classifying and ranking projects, resource availability, potential benefits, and project size/duration are possible evaluation criteria. Answer: True 13) Project selection is a process of considering both short- and long-term projects and selecting those most likely to achieve business objectives. Answer: True 14) The Baseline Project Plan is the primary deliverable from the project identification and selection phase. Answer: False 15) A schedule of specific IS development projects is the primary deliverable from the project identification and selection phase. Answer: True 16) Due to the principle of incremental commitment, a selected project will result in a working system. Answer: False 17) When determining how to allocate IS resources, organizations have traditionally used a systematic planning process. Answer: False 18) "What information requirements will satisfy our business's decision-making needs today and well into the future?" is a question that might be asked by a planning-based approach to project identification and selection. Answer: True 19) A major disadvantage to the planning-based approach is that an organization's informational needs are more likely to change than its business processes. Answer: False 20) To benefit from a planning-based approach for identifying and selecting projects, an organization must analyze its information needs and plan its projects carefully. Answer: True 21) The rising costs of information systems is one reason why improved information systems project identification and selection is needed. Answer: True 22) Data redundancy and users having little confidence in the quality of data are reasons why improved information systems project identification and selection is needed. Answer: True 23) A disciplined approach, driven by top management commitment, is a prerequisite to most effectively apply information systems in order to reach organizational objectives. Answer: True 24) Requirements determination and requirements structuring are two processes that can significantly improve the quality of project identification and selection decisions. Answer: False 25) Corporate analysis is an ongoing process that defines the mission, objectives, and strategies of an organization. Answer: False 26) During corporate strategic planning, executives typically develop a mission statement, statements of future corporate objectives, and strategies designed to help the organization reach its objectives. Answer: True 27) A business objective statement is a statement that makes it clear what business the company is in. Answer: False 28) "We are in the business of selling high-quality men's shoes" is an example of a mission statement. Answer: True 29) "Baker's Fitness Center will increase market share and profitability" is an example of a mission statement. Answer: False 30) Objective statements are a series of statements that express an organization's qualitative and quantitative goals for reaching a desired future position. Answer: True 31) Mission statements are a series of statements that express an organization's qualitative and quantitative goals for reaching a desired future position. Answer: False 32) Mission statements are often referred to as critical success factors. Answer: False 33) A company should define its competitive strategy and then define its mission and objectives. Answer: False 34) A competitive strategy is the method by which an organization attempts to achieve its mission and objectives. Answer: True 35) To build the most effective information systems, an organization must clearly understand its mission, objectives, and strategy. Answer: True 36) A low-cost producer competitive strategy reflects competing in an industry on the basis of product or service cost to the consumer. Answer: True 37) The South Korean-produced Hyundai uses a product focus competitive strategy. Answer: False 38) Promoting your product as having an ingredient that competing products do not, setting the product apart from the competition, best exemplifies the product differentiation competitive strategy. Answer: True 39) The product focus or niche competitive strategy is similar to both the low-cost and differentiation strategies, but with a much narrower market focus. Answer: True 40) Systems requirements 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. Answer: False 41) During ISP, the current and future organizational needs are modeled, and strategies and project plans to migrate the current information systems and technologies to their desired future state are developed. Answer: True 42) Top-down planning is an ISP methodology which attempts to gain a specific understanding of the information system needs of a part of the organization. Answer: False 43) Bottom-up planning is an ISP methodology that identifies and defines IS development projects based upon solving operational business problems. Answer: True 44) The bottom-up approach always views the informational needs of the entire organization and thus results in the creation of cohesive information systems. Answer: False 45) A location-to-function matrix identifies which organizational units are located in or interact with a specific business function. Answer: False 46) A unit-to-function matrix identifies the relationship between organizational entities and each business function. Answer: True 47) The target situation must be developed in light of technology and business trends, in addition to organizational constraints. Answer: True 48) The systems identification and selection process for an Internet-based electronic commerce application is no different than the process followed for other applications. Answer: True 49) The Internet is a large worldwide network of networks that use a common protocol to communicate with each other. Answer: True 50) An Intranet refers to the use of the Internet between firms. Answer: False 51) EDI is the use of telecommunications technologies to transfer business documents directly between organizations. Answer: True 52) Organizations that have Intranets dictate what applications will run over the Intranet and the speed and quality of the hardware connected to the Intranet. Answer: True 53) When developing either a B2E or B2B application, developers know who the users are, what applications will be used, the speed of the network connection, and the type of communication devices. Answer: True 54) When developing an Internet EC application, developers must deal with several unknown factors, including the user, connection speed, and access method. Answer: True 55) Identification and assessment of all possible systems development projects that an organization unit can undertake is conducted during: A) project identification and selection B) project initiation and planning C) design D) analysis Answer: A 56) Which of the following is one of the three primary activities associated with identifying and selecting IS development projects? A) preliminary investigation of the system problem or opportunity B) identification of potential development projects C) requirements determination D) generating alternative initial designs Answer: B 57) A department head deciding which project requests to submit is an example of: A) a preliminary investigation of the system problem or opportunity B) identifying potential development projects C) requirements determination D) generating alternative initial designs Answer: B 58) Research has found that projects identified by top management more often: A) have a narrow, tactical focus B) reflect diversity and have a cross-functional focus C) have a strategic, organizational focus D) will integrate easily with existing hardware and systems Answer: C 59) Research has found that projects identified by individual departments or business units most often: A) have a narrow, tactical focus B) reflect diversity and have a cross-functional focus C) have a strategic, organizational focus D) will integrate easily with existing hardware and systems Answer: A 60) Potential development projects can be identified by: A) a steering committee B) top management C) a senior IS manager D) all of the above Answer: D 61) Which of the following possible project sources most often reflects the broader needs of the organization? A) user department B) development group C) IS manager D) top management Answer: D 62) Which of the following characteristics is associated with the steering committee selection method? A) greater strategic focus B) greater organizational change C) fewer users, management layers, and business functions D) less concern on cost-benefit analysis Answer: B 63) Which of the following is a way projects can be identified? A) bottom-up source B) upper-echelon source C) top-down source D) both A and C Answer: D 64) The extent to which the project is viewed as improving profits, customer service, etc., and the duration of these benefits best defines which of the following evaluation criteria? A) potential benefits B) resource availability C) technical difficulty or risks D) strategic alignment Answer: A 65) The extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals describes: A) potential benefits B) resource availability C) technical difficulty or risks D) strategic alignment Answer: D 66) Analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred best describes: A) affinity clustering B) business process reengineering C) value chain analysis D) technical difficulty or risks Answer: C 67) If the project team and organizational officials reassess the project after each subsequent SDLC phase to determine if the business conditions have changed or if a more detailed understanding of a system's costs, benefits, and risks suggest that the project is not as worthy as previously thought, they are: A) adhering to the incremental commitment principle B) overly cautious C) using a CASE methodology D) adhering to a bottom-up commitment principle Answer: A 68) Which of the following is a true statement regarding a planning-based approach? A) An emphasis is placed on identifying the procedure that is required to solve a particular problem as it exists today. B) The difficulty with this approach is that the required organizational procedures are likely to change over time as the environment changes. C) A major advantage of this approach is that an organization's informational needs are less likely to change (or will change more slowly) than its business processes. D) One of the benefits of this plan is that an organization does not need to analyze its information needs and plan its projects carefully. Answer: C 69) Which of the following is a need for improved information systems project identification and selection? A) The costs of information systems are steadily decreasing. B) Many systems can handle applications that cross organization boundaries. C) Data redundancy is often out of control, and users may have little confidence in the quality of the data. D) Systems maintenance costs are well under control. Answer: C 70) Gaining a clear idea of where an organization is, its vision of where it wants to be in the future, and a plan of how to make the transition to its desired state is: A) the third activity in the analysis phase B) a prerequisite to making effective project selection decisions C) the first step in a bottom-up approach D) not necessary if one is using a CASE product Answer: B 71) An ongoing process that defines the mission, objectives, and strategies of an organization refers to: A) corporate strategic planning B) analysis C) goal setting D) information systems planning Answer: A 72) A statement that makes it clear what business a company is in is called a: A) business statement B) corporate policy statement C) goal statement D) mission statement Answer: D 73) "We are in the business of designing, fabricating, and selling to retail stores high-quality wood furniture" is what kind of statement? A) business statement B) mission statement C) goal statement D) corporate policy Answer: B 74) A series of statements that express an organization's qualitative and quantitative goals for reaching a desired future position best defines: A) objective statements B) information systems plan C) competitive strategy D) business policy Answer: A 75) Once a company has defined its mission and objectives: A) goals can be established B) an information architecture can be developed C) project analysis can begin D) a competitive strategy can be formulated Answer: D 76) The method by which an organization attempts to achieve its mission and objectives best defines: A) critical success factors B) competitive strategy C) business policy D) information systems plan Answer: B 77) Which of the following is a strategy for a low-cost producer? A) competing in an industry on the basis of product quality B) capitalizing on a key product criteria requested by the market C) competing in an industry on the basis of product or service cost to the consumer D) competing in an industry on the basis of product quantity Answer: C 78) Which of the following describes the product differentiation strategy? A) competing in an industry on the basis of product quality B) competing in an industry on the basis of product quantity C) competing in an industry on the basis of product or service cost to the consumer D) capitalizing on a key product criteria requested by the market Answer: D 79) Which of the following is a competitive strategy? A) low-cost producer B) product differentiation C) product focus D) all of the above Answer: D 80) If Kia Motors is attempting to achieve its mission and objectives by providing a low-priced line of cars, this is referred to as its: A) competitive strategy B) business policy C) information systems plan D) objective statement Answer: A 81) The second planning process that can play a significant role in the quality of project identification and selection decisions is called: A) strategic alignment B) cost/benefit analysis C) information systems planning D) incremental commitment Answer: C 82) Which of the following is a true statement regarding ISP? A) During ISP, the current and future information needs of an organization are modeled. B) Strategies and project plans to migrate the current information systems and technologies to their desired future state are developed. C) ISP is a top-down process that takes into account the outside forces (industry, economic, relative size, geographic region, etc.). D) All of the above. Answer: D 83) An orderly means of assessing the information needs of an organization and defining the systems, databases, and technologies that will best satisfy those needs best defines: A) information systems planning B) mission statement C) objective statement D) competitive strategy Answer: A 84) Which of the following is the first ISP step? A) Develop target blueprints B) Assess current IS-related assets C) Define a series of scheduled projects D) Assign resources Answer: B 85) A generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization defines: A) bottom-up planning B) top-down planning C) democratic planning D) foundation planning Answer: B 86) This approach begins by conducting an extensive analysis of the organization's mission, objectives, and strategy and determining the information requirements needed to meet each objective: A) foundation planning B) democratic planning C) top-down planning D) bottom-up planning Answer: C 87) This approach requires the identification of business problems and opportunities used to define projects: A) foundation planning B) democratic planning C) top-down planning D) bottom-up planning Answer: D 88) A generic information systems planning methodology that identifies and defines IS development projects based on solving operational business problems or taking advantage of some business opportunities defines: A) democratic planning B) bottom-up planning C) top-down planning D) foundation planning Answer: B 89) Which of the following is an advantage to the top-down planning approach over other planning approaches? A) broader perspective B) improved integration C) better understanding D) all of the above Answer: D 90) Which of the following best describes the top-down planning approach advantage, improved integration? A) If not viewed from the top, totally new management information systems may be implemented rather than planning how to evolve existing systems. B) If not viewed from the top, planners may lack sufficient management acceptance of the role of information systems in helping them achieve business objectives. C) If not viewed from the top, planners may lack the understanding necessary to implement information systems across the entire business rather than simply to individual operating units. D) If not viewed from the top, information systems may be implemented without first understanding the business from general management's viewpoint. Answer: A 91) Which of the following best describes the top-down planning approach advantage, better understanding? A) If not viewed from the top, totally new management information systems may be implemented rather than planning how to evolve existing systems. B) If not viewed from the top, planners may lack sufficient management acceptance of the role of information systems in helping them achieve business objectives. C) If not viewed from the top, planners may lack the understanding necessary to implement information systems across the entire business rather than simply to individual operating units. D) If not viewed from the top, information systems may be implemented without first understanding the business from general management's viewpoint. Answer: C 92) An advantage of the bottom-up planning approach is: A) identifying pressing organizational problems B) broader perspective C) improved integration D) better understanding Answer: A 93) Which of the following is an advantage of the bottom-up planning approach? A) By using the bottom-up approach, a broader perspective can be achieved. B) IS plans can be created faster and are less costly to develop than using the top-down approach. C) By using the bottom-up approach, planners may gain the understanding necessary to implement information systems across the entire business. D) By using the bottom-up approach, planners will have sufficient management acceptance of the role of information systems in helping them achieve business objectives. Answer: B 94) The matrix that identifies the relationships between organizational entities and each business function is: A) unit-to-function B) location-to-unit C) function-to-process D) entity-to-process Answer: A 95) The matrix that identifies which data are created, updated, accessed, or deleted in each system is: A) data entity-to-information system B) process-to-information system C) information system-to-objective D) process-to-data entity Answer: A 96) 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 Answer: A 97) The process of arranging planning 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 defines: A) grouping B) isolating C) affinity clustering D) trend analysis Answer: C 98) Matrices of the target or "future" situation are sometimes called: A) forward-looking matrices B) "to be" matrices C) candidate matrices D) proposed matrices Answer: B 99) Which of the following is a CASE tool feature that can help you make sense out of matrices? A) management of information B) matrix construction C) matrix analysis D) all of the above Answer: D 100) The third activity in the ISP process is: A) describe the target situation, trends, and constraints B) describe the current situation C) developing a transition strategy and plans D) develop the logical design Answer: C 101) Which of the following is a true statement regarding the IS plan? A) The short- and long-term development needs identified in the plan are typically expressed as a series of projects. B) Projects from the long-term plan tend to build a foundation for later projects. C) Projects from the short-term plan are specific steps to fill the gap between current and desired systems or respond to dynamic business conditions. D) All of the above. Answer: D 102) 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 Answer: A 103) The use of telecommunications technologies to directly transfer business documents between organizations best defines: A) electronic delivery B) computer conferencing C) extranet exchange D) electronic data interchange Answer: D 104) An Internet-based communication that supports business-to-business activities best describes: A) Internet B) electronic commerce C) electronic data interchange D) B2B Answer: D 105) ________ refers to analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred for doing so; usually also includes a comparison with the activities, added value, and costs of other organizations for the purpose of making improvements in the organization's operations and performance. Answer: Value chain analysis 106) ________ is the extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals. Answer: Strategic alignment 107) ________ are the extent to which the project is viewed as improving profits, customer service, and so forth and the duration of these benefits. Answer: Potential benefits 108) ________ is the amount and type of resources the project requires and their availability. Answer: Resource availability 109) ________ refers to the number of individuals and the length of time needed to complete the project. Answer: Project/size duration 110) ________ refers to the level of technical difficulty to successfully complete the project within given time and resource constraints. Answer: Technical difficulty/risks 111) ________ is a strategy in systems analysis and design in which the project is reviewed after each phase and continuation of the project is rejustified. Answer: Incremental commitment 112) ________ is an ongoing process that defines the mission, objectives, and strategies of an organization. Answer: Corporate strategic planning 113) A ________ is a statement that makes it clear what business a company is in. Answer: mission statement 114) ________ are a series of statements that express an organization's qualitative and quantitative goals for reaching a desired future position. Answer: Objective statements 115) A ________ is the method by which an organization attempts to achieve its mission and objectives. Answer: competitive strategy 116) ________ is the competitive strategy that reflects competing in an industry on the basis of product or service cost to the consumer. Answer: Low-cost producer 117) ________ is the competitive strategy that reflects capitalizing on a key product criterion requested by the market. Answer: Product differentiation 118) ________ is the competitive strategy that is similar to both low-cost and differentiation strategies but with a much narrower market focus. Answer: Product focus or niche 119) ________ 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. Answer: Information systems planning 120) ________ is a generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization. Answer: Top-down planning 121) ________ is a generic information systems planning methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities. Answer: Bottom-up planning 122) ________ is a matrix that identifies which data are captured, used, updated, or deleted within each process. Answer: Process-to-data entity 123) ________ is the process of arranging planning matrix information so the clusters of information with some predetermined level or type of affinity are placed next to each other on a matrix report. Answer: Affinity clustering 124) The ________ is a large worldwide network of networks that use a common protocol to communicate with each other. Answer: Internet 125) ________ refers to Internet-based communication to support day-to-day business activities. Answer: Electronic commerce 126) ________ and ________ are the two general classes of Internet EC applications. Answer: Internets, intranets 127) An ________ is Internet-based communication to support business activities within a single organization. Answer: Intranet 128) ________ is the use of telecommunications technologies to directly transfer business documents between organizations. Answer: Electronic data interchange 129) ________, ________, and ________ are the three unknowns that must be dealt with when designing and building Internet applications. Answer: User, connection speed, access method 130) List and briefly identify the three primary activities of the project identification and selection phase. Answer: The first phase of the SDLC is project identification and selection. During this phase, all possible systems development projects are identified and assessed. Project identification and selection consists of three primary activities: identify potential development projects, classifying and ranking projects, and selecting projects for development. During the first activity, projects can be identified by a variety of sources. A key member of top-management, a steering committee, user departments, and the development group are possible sources. Classifying and ranking IS development projects, the second major activity, focuses on assessing the relative merit of potential projects. Various criteria (strategic alignment, potential benefits, resource availability, project size/duration, and technical difficulty/risks) can be used to evaluate the projects. The last activity, selecting IS development projects, is the actual selection of projects for further development. Consideration is given to both short- and long-term projects. Projects most likely to achieve business objectives are selected. Numerous factors (perceived organizational needs, existing systems and ongoing projects, resource availability, evaluation criteria, current business conditions, and decision maker perceptions) impact the selection process. Acceptance, rejection, and conditional acceptance are possible outcomes for this activity. 131) Define and briefly discuss corporate strategic planning. Answer: 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. 132) Define and briefly 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. 133) Define top-down planning and bottom-up planning. Answer: Top-down planning is a generic information systems planning methodology that attempts to gain a broad understanding of the information system needs of the entire organization. Bottom-up planning is a generic information systems planning methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities. 134) What is 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. 135) Identify six reasons why improved information systems project identification and selection is needed. Answer: Information systems costs continue to rise, the inability of systems to handle applications that cross organizational boundaries, systems not addressing the critical problems of the business as a whole nor supporting strategic planning applications, data redundancy and lack of user confidence in the quality of data, out-of-control system maintenance costs, and lengthy application backlogs are six reasons why improvements in the information systems project identification and selection process are necessary. 136) Briefly discuss three generic competitive strategies. Provide an example of each. Answer: Low-cost producer, product differentiation, and product focus or niche are three generic competitive strategies. A low-cost producer strategy reflects competing in an industry on the basis of product or service cost to the consumer. South Korean-produced Hyundai is the example mentioned in the textbook. The product differentiation strategy reflects capitalizing on a key product criterion requested by the market. An example is an automobile manufacturer suggesting that its line of trucks provides the quietest and most comfortable ride. The product focus or niche strategy is similar to both the low-cost and differentiation strategies but with a much narrower market focus. An example of this strategy is a fitness center that caters exclusively to women. 137) 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. 138) Using any business as an example, provide one example each for its organizational locations, units, functions, processes, and information systems. Answer: A national insurance company is a good example. Organizational locations include the home office and its various branch locations. Most finance and accounting functions are handled at the home office, while the local branches are responsible, to some degree, for marketing and sales. Customer enrollment and billing are processes. Payroll processing, accounts payable, and accounts receivable are information systems. The insurance company would keep information about its customers, branch locations, and insurance plans. 139) Briefly describe three of the ten types of matrices that are beneficial during information systems planning. Answer: Location-to-function, location-to-unit, and unit-to-function are three of the ten types of matrices. The location-to-function matrix identifies which business functions are being performed at various organizational locations. The location-to-unit matrix identifies which organizational units are located in or interact with a specific function. The unit-to-function matrix identifies the relationships between organizational entities and each business function. Additional matrices are mentioned in the textbook. Test Bank for Modern Systems Analysis and Design Jeffrey A. Hoffer, Joey George, Joseph S. Valacich, Joe Valacich, Jeffrey Slater 9780132991308, 9780134204925, 9780135172759, 9780136088219