Management Information Systems, 15e (Laudon) Chapter 14 Managing Projects
1) On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent. A) 3 !) " #) $ %) & ') ( Anser* # %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 ) As discussed in t+e c+apter, +ic+ of t+e folloing is not one one of t+e immediate conse4uences of inade4uate softare project management2 A) #ost overruns !) #ustomer loyalty #) Time slippage %) Tec+nical s+ortfalls ') 5ailure to obtain anticipated benefits Anser* ! %ifficulty* 3* #+allenging AA#!* Analytical t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 3) +ic+ of t+e folloing is not one one of t+e five main variables affecting project success2 A) -is !) 6endors #) Time %) 7uality ') #ost Anser* ! %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 ") 8ou +ave been +ired to implement an enterprise system t+at ill automate muc+ of t+e billing and accounting or for a stateide 96A# 96A# services company. +ic+ of t+e folloing ould you prepare to describe +o t+e ne system ill affect a firm:s structure and operations2 A) Information systems plan !) Internal integration report #) ociotec+nical design report 1 #opyrig+t ; 1< =earson 'ducation, Inc.
%) Organi>ational impact analysis ') trategic planning document Anser* % %ifficulty* 3* #+allenging AA#!* Analytical t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 $) All of t+e folloing are indications of a failed information systems project except: A) employees are refusing to sitc+ to t+e ne system. !) employees +ave created a spreads+eet solution to manipulate t+e data generated by t+e system. #) a redesigned ebsite +as feer visits to t+e customer support pages. %) employees re4uire training to properly use t+e system. ') t+e system is not being used by anyone. Anser* % %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 &) +ic+ of t+e folloing project management variables defines +at o r is or is not included in a project2 A) ?oals !) -is #) 7uality %) cope ') #ost Anser* % %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 () +ic+ of t+e folloing statistics from studies on failed projects is not true2 true2 A) /arge softare projects on average run 33 percent over sc+edule. !) /arge softare projects on average run && percent over budget. #) !eteen 3 and " percent of all softare projects are @runaay@ projects t+at far eceed t+e original sc+edule and budget projections and fail to perform as originally specified. %) As many as 1( percent of projects turn out so badly t+at t+ey can t+reaten t+e eistence of t+e company. ') T+e average cost overrun of IT projects is percent. Anser* ' %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, management, and +y is it so essential essential in developing information systems2 #opyrig+t ; 1< =earson 'ducation, Inc.
<) T+e cost of a project is based on t+e time to complete a project multiplied by t+e cost of +uman resources re4uired to complete t+e project. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 D) An information system project:s scope is directly related to its business re4uirements. Anser* T-B' %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 1) =roject management refers to t+e application of noledge, sills, tools and tec+ni4ues to ac+ieve specific targets it+in specified budget and time constraints. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 11) +ic+ of t+e folloing variables in project management is an indicator of +o ell t+e project satisfies management objectives2 A) cope !) 7uality #) Time %) #ost ') -is Anser* ! %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 1) T+e data entry screen is an eample of a user interface. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 13) According to a 1$ report by 1', over $E of all softare installed is not being used. Anser* 5A/' %ifficulty* 1* 'asy 3 #opyrig+t ; 1< =earson 'ducation, Inc.
AA#!* -eflective t+ining /O* 1"01* +at are t+e objectives of project management, and +y is it so essential in developing information systems2 1") +ic+ of t+e folloing is at t+e top of t+e management structure for information systems projects in a large company2 A) =roject team !) =roject management group #) #orporate strategic planning group and information systems steering committee %) Information systems managers ') 'nd0user managers Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 1$) T+e ________ revies and approves plans for systems in all divisions. A) project management group !) project team #) information systems steering committee %) corporate strategic planning committee ') board of directors Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 1&) T+e ________ consists of systems analysts, specialists from t+e relevant end0user business areas, application programmers, and per+aps database specialists. A) project management group !) project team #) I steering committee %) corporate strategic planning committee ') system planning committee Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 1() T+e ________ is directly responsible for t+e individual systems project. A) project management group !) project team #) I steering committee %) corporate strategic planning committee ') systems planning committee " #opyrig+t ; 1< =earson 'ducation, Inc.
Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 1<) A road map indicating t+e direction of systems development, t+e rationale, t+e current systems, ne developments to consider, t+e management strategy, t+e implementation plan, and t+e budget is called aFn)* A) project plan. !) portfolio analysis. #) information systems plan. %) enterprise analysis. ') strategic planning document. Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 1D) +ic+ of t+e folloing best describes t+e central met+od used in a portfolio analysis2 A) =erforming an inventory all of t+e organi>ation:s information systems projects and assets !) =erforming a eig+ted comparison of t+e criteria used to evaluate a system #) urveying a large sample of managers on t+eir objectives, decision0maing process, and uses and needs for data and information %) Intervieing a small number of top managers to identify t+eir goals and criteria for ac+ieving success ') coring proposed systems on a number of dimensions, and select t+e one it+ t+e +ig+est score. Anser* A %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 ) A firm in t+e finance industry s+ould do +ic+ of t+e folloing to ensure t+at it stays current it+ tec+nology2 A) elect only lo0cost, lo ris projects !) /imit or to t+ose projects it+ great reards. #) elect only lo0ris, +ig+0reard projects. %) 9ave a fe +ig+0ris, +ig+ benefit projects ') Avoid projects t+at ere very costly. Anser* % %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 $ #opyrig+t ; 1< =earson 'ducation, Inc.
1) +ic+ met+od ould you use to develop ris profiles for a firm:s information system projects and assets2 A) Information systems plan !) coring model #) =ortfolio analysis %) T#O ') -eal options model Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 ) 8ou +ave been +ired by a firm in a non0information0intensive industry to evaluate its inventory of systems and IT projects. +ic+ types of projects s+ould t+e firm focus on2 A) 9ig+0ris projects !) /o cost, lo0benefit projects #) 9ig+0benefit, lo0ris projects %) Any project t+at mig+t be beneficial ') /o cost, +ig+ benefit projects Anser* # %ifficulty* 3* #+allenging AA#!* Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3) +ic+ of t+e folloing best describes t+e central met+od used in a scoring model2 A) =erforming an inventory all of t+e organi>ation:s information systems projects and assets !) =erforming a eig+ted comparison of t+e criteria used to evaluate a system #) urveying a large sample of managers on t+eir objectives, decision0maing process, and uses and needs for data and information %) Intervieing a small number of top managers to identify t+eir goals and criteria for ac+ieving success ') #alculating t+e return on investment for eac+ system, and c+oose t+e system it+ t+e best return Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 ") +ic+ met+od is used to assign eig+ts to various features of a system2 A) Information systems plan !) coring model #) =ortfolio analysis %) T#O ') -eal options model & #opyrig+t ; 1< =earson 'ducation, Inc.
Anser* ! %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 $) +ic+ of t+e folloing statements about scoring models is not true2 A) T+ere are many 4ualitative judgments involved in using a scoring model. !) A scoring model is useful for selecting projects +ere many criteria must be considered. #) T+e most important outcome of a scoring model is t+e score. %) A scoring model re4uires eperts +o understand t+e issues and t+e tec+nology. ') It is appropriate to cycle t+roug+ a scoring model several times. Anser* # %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 &) T+e information systems steering committee is composed of information systems managers and end0user managers responsible for overseeing several specific information systems projects. Anser* 5A/' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 () An information systems plan contains a statement of corporate goals and specifies +o information tec+nology ill support t+e attainment of t+ose goals. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 <) If an intended benefit of an IT project is improved decision maing, managers s+ould develop a set of metrics to 4uantify t+e value of an improved decision. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 D) coring models are most commonly used to mae t+e final decision +en selecting different systems. Anser* 5A/' %ifficulty* * Coderate AA#!* -eflective t+ining ( #opyrig+t ; 1< =earson 'ducation, Inc.
/O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3) T+e criteria used in a scoring model are usually t+e result of lengt+y discussions among t+e decision0maing group. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 31) 8ou are oring as a project manager for a small IT consulting firm and +ave been ased to create a plan for revieing and auditing completed projects in order to gauge t+eir success. +at factors ill you use to measure t+e success of a project2 +at 4uestions ould you as in order to understand +y a project succeeded or failed2 Anser* tudent ansers ill vary but s+ould include an understanding of t+e main project variables* scope, time, cost, 4uality, and ris. A sample anser is* T+e factors I ould use are* G Cost: +at as t+e original budget and final budget2 G Time: +at as t+e original sc+edule and final sc+edule2 G Quality: %id t+e project meet t+e re4uirements outlined in t+e project plan2 G Scope: %id t+e scope of t+e project c+ange2 7uestions I ould as to understand t+e success or failure of t+e project ould be* G +at tec+nical difficulties ere eperienced and +ic+ could +ave been foreseen2 G +at riss did t+e project entail2 G +at events led to t+e scope c+anging2 G +at difficulties occurred t+at ere a conse4uence of personal, employee0oriented problems2 G +at difficulties occurred t+at ere a conse4uence of environmental, organi>ational, or managerial c+allenges2 G +at do project team members consider as t+e primary c+allenges2 G +at do clients or stae+olders consider as t+e primary c+allenges2 %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3) %escribe t+e elements of a management structure for information systems projects in a large corporation. Anser* In a large corporation, t+e management structure typically consists of Ffrom top to bottom levels in t+e +ierarc+y)* G Corporate strategic planning group: T+e +ig+er level group of managers responsible for developing t+e firm:s strategic plan. G n!ormation systems steering committee: A senior management group it+ responsibility for systems development and operation. G Project management: A group of information systems managers and end0user managers responsible for overseeing several specific information systems projects. < #opyrig+t ; 1< =earson 'ducation, Inc.
G Project team: T+e group directly responsible for t+e individual systems project, consisting of systems analysts, specialists from t+e relevant end0user business areas, application programmers, and per+aps database specialists. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 33) /ist five types of information t+at s+ould be included in an information systems plan. Anser* ?eneral categories of information included in an information plan are* G =urpose of t+e plan G !usiness rationale G #urrent systems or situation G e developments to consider G Canagement strategy G Implementation plan G !udget %ifficulty* 3* #+allenging AA#!* Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3") 8ou +ave been +ired as a consultant for a nationide real estate firm, #ross J %eptford, +o are interested in ac+ieving better organi>ation beteen branc+es by updating t+eir information systems, but are not sure +at ill suit t+eir needs. +at ill you recommend t+ey do in order to determine t+e most effective IT projects2 Anser* #ross J %eptford first s+ould +ave an information systems plan created to determine +at t+eir information re4uirements are and +at systems ill support t+eir business goals. T+ey ill need to inventory t+eir eisting systems and develop metrics to 4uantify any future improvements are made. T+ey can use portfolio analysis andKor scoring models to +elp determine t+e most important information systems projects to pursue. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3$) %escribe t+e process of portfolio analysis. In +at situations is t+is evaluation met+od useful2 Anser* =ortfolio analysis inventories all of t+e organi>ation:s information systems projects and assets, including infrastructure, outsourcing contracts, and licenses. 'ac+ project can b e described as +aving a profile of ris and benefit to t+e firm, similar to t+e financial portfolio. In a portfolio analysis, you ould list t+e various systems projects and rate t+em according to t+eir potential riss and benefits. 8ou ould use t+e portfolio analysis to determine +ic+ potential projects s+ould be pursued and +ic+ s+ould be modified or abandoned. 9ig+0ris, lo0benefit projects s+ould be avoided, +ile lo0ris, +ig+0benefit projects ould be at t+e top of t+e list. 9ig+0benefit, +ig+0ris projects and lo0ris, lo0benefit projects ould be reeamined to see if t+ey could be modified to better fit it+ t+e company:s strategic plans. A mi of profiles could D #opyrig+t ; 1< =earson 'ducation, Inc.
also be defined as acceptable in terms of t+e company:s overall plans, muc+ as is done it+ a financial portfolio. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationsH Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3&) 8ou +ave been +ired as a consultant to mae recommendations for marty:s, a +ealt+y fast0 food c+ain t+at is undergoing major epansion and is in need of a supply c+ain planning system. T+ey are evaluating to commercially available softare pacages. +at systems evaluation model ill +elp t+em assess and compare t+e to pacages2 9o does t+is model or2 Anser* A scoring model can be used for selecting projects +ere many criteria must be considered. It assigns eig+ts to various features of a system and t+en calculates t+e eig+ted totals. +at marty:s ould do is +ave decision maers suc+ as top managers list t+e various features t+ey feel are important to +ave in t+e system, suc+ as t+e processes t+at need support or reports t+ey may need from t+e system. 'ac+ feature, or criteria, t+e managers list is given a eig+t, or rating, in terms of +o important it is overall to +ave in t+e system. 'ac+ pacage t+en is evaluated in terms of t+e percentage of re4uirements it contributes or supports for eac+ criteria. In t+e scoring model, you multiply t+e eig+t it+ t+e softare:s percentage of contribution to arrive at a score for eac+ criteria. T+e scores of bot+ softare pacages are totaled and compared to see overall t+eir contribution to fulfilling t+e company:s re4uirements. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationsH Analytical t+ining /O* 1"0* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 3() 8ou are using a capital budgeting met+od to assess t+e ort+ of your company:s ne information system. +ic+ of t+e folloing costs ould you include in measuring t+e cas+ outflo2 A) Increased sales of products !) 9ardare and softare ependitures #) /abor ependitures %) -educed costs in production and operation ') 9ardare, softare, and labor ependitures Anser* ' %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 3<) T+e ort+ of systems from a financial perspective essentially revolves around t+e issue of* A) total cost of oners+ip. !) ad+erence to information re4uirements. #) asset utili>ation. %) return on invested capital. ') t+e cost of computing e4uipment. Anser* % %ifficulty* 1* 'asy 1 #opyrig+t ; 1< =earson 'ducation, Inc.
AA#!* Analytical t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 3D) All of t+e folloing are intangible benefits of information systems except: A) improved asset utili>ation. !) increased organi>ational learning. #) improved operations. %) reduced orforce. ') employee morale. Anser* % %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 ") +ic+ of t+e folloing is not a tangible benefit of information systems2 A) -educed rate of grot+ in epenses !) /oer computer epenses #) Improved resource control %) Increased productivity ') 'nd user satisfaction Anser* # %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "1) T+e principal capital budgeting models for evaluating information tec+nology projects are t+e paybac met+od, t+e accounting rate of return on investment F-OI), t+e net present value, and t+e* A) future present value. !) internal rate of return. #) eternal rate of return. %) -O=C Freal options pricing model). ') present value of future cas+ flos Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 ") +ic+ of t+e folloing strategies represents t+e proper approac+ to a +ig+ ris, +ig+ reard project2 A) Identify and develop !) Avoid #) Treat as a routine project %) =ursue after all ot+er projects are complete ') #autiously eamine Anser* ' %ifficulty* * Coderate AA#!* -eflective t+ining 11 #opyrig+t ; 1< =earson 'ducation, Inc.
/O* 1"03* 9o can firms assess t+e business value of information systems2 "3) 'n+anced employee goodill falls under +at category of costs and benefits of information systems2 A) #osts !) Tangible benefits #) #ost savings %) Intangible costs ') Intangible benefits Anser* ' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "") #ounterimplementation is best defined as* A) multiple implementations t+at are run in parallel. !) deliberate attempts to t+art t+e implementation of a system. #) criti4uing t+e implementation of a system constructively. %) all of t+e organi>ational c+allenges involved in implementing a system. ') strategies used to overcome user resistance to c+ange. Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "$) +ic+ of t+e folloing is a limitation of using a financial ap proac+ to evaluate information systems2 A) Inability to measure -OI !) Inability to control vendor costs #) Inability to assess ris %) Inability to assess costs from organi>ational disruption ') Inability to assess t+e cost of tec+nology Anser* % %ifficulty* 1* 'asy AA#!* Analytical t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "&) Transaction and clerical systems t+at displace labor and save space typically produce more measurable, tangible benefits t+an management information systems. Anser* T-B' %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "() Intangible benefits generally do not lead to 4uantifiable gains in t+e long run. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining 1 #opyrig+t ; 1< =earson 'ducation, Inc.
/O* 1"03* 9o can firms assess t+e business value of information systems2 "<) A benefit of using T#O analysis to evaluate an information tec+nology investment is t+at it is able to incorporate intangible and @soft@ factors suc+ as benefits and compleity costs. Anser* 5A/' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 "D) Core timely information is a intangible benefit of information systems. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $) T+e difference beteen cas+ outflos and cas+ inflos is used for ca lculating t+e financial ort+ of an investment. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $1) ________ met+ods rely on measures of cas+ flos into and out of t+e firm. A) coring model !) =ortfolio analysis #) -eal options pricing %) #apital budgeting ') #ost effectiveness Anser* % %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $) In one strategic approac+ to determining information re4uirements, managers select a small number of ________ t+at reflect firm success and profitability. A) efficiency measures !) output measures #) strategic indicators %) ey performance indicators ') financial indicators Anser* % %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $3) %ifferentiate beteen intangible and tangible benefits and list t+ree eamples of eac+. In +at types of systems are intangible benefits more predominant2 13 #opyrig+t ; 1< =earson 'ducation, Inc.
Anser* Tangible benefits can be 4uantified and given a monetary value. 5or eample, a monetary value can be given to increased productivity, loer operational costs, reduced orforce, loer computer epenses, loer outside vendor costs, loer clerical and professional costs, reduced rate of grot+ in epenses, and reduced facility, telecommunications, softare, services, and personnel costs. Intangible benefits cannot be immediately 4uantified but may lead to 4uantifiable gains in t+e long run, suc+ as +ig+er sales. 'amples of intangible benefits include* improved asset utili>ation, resource control, organi>ational planning, decision maing, operations, increased fleibility, learning, job satisfaction, client satisfaction, employee goodill, more timely information and more information, t+e fulfillment of legal re4uirements and a better corporate image. ystems t+at produce more intangible benefits are CI, %, and collaborative or systems. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $". 8ou are a senior manager at a mid0si>ed regional retail c+ain. T+e companyLs IT manager approac+es you it+ a project t+at ould completely over+aul t+e companyLs information system infrastructure, generating significant risH but if eecuted successfully, ould dramatically improve t+e companyLs overall efficiency. 9o s+ould you proceed2 Anser* Bsing t+e portfolio analysis approac+, t+is type of project is a +ig+0ris, +ig+0reard project, and s+ould be considered carefully. tudent ansers may vary about +o to proceed, but s+ould involve mention of a scoring models to compare t+e system to ot+er c+oices and soliciting input from employees across many areas of t+e firm to determine t+eir illingness to tae on ris and endure organi>ational c+ange. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"03* 9o can firms assess t+e business value of information systems2 $$) All of t+e folloing are directly correlated it+ increased ris except: A) a large amount of tec+nical epertise from project team an d information team staff !) a large amount of dollars spent #) a large amount of implementation staff %) a large amount of time allocated for implementation ') a large amount of organi>ational units affected Anser* A %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 $&) +ic+ of t+e folloing statements best describes t+e effect t+at project structure +as on overall project ris2 A) 9ig+ly structured projects are more comple, and run a +ig+er ris of programmers and users misunderstanding t+e ultimate goals. !) =rojects it+ relatively undefined goals are more liely to be subjected to users c+anging re4uirements and to run a +ig+er ris of not satisfying project goals. #) 9ig+ly structured projects tend to be larger, affecting more organi>ational units, and run bot+ 1" #opyrig+t ; 1< =earson 'ducation, Inc.
t+e ris of out0of0control costs and becoming too difficult to control. %) /ess structured projects are more able to be 4 uicly developed, tested, and implemented using cutting0edge -A% and MA% development tec+ni4ues, and pose less ris of running up unforeseen costs. ') T+e less structured a project, t+e greater t+e freedom of users to define t+e system Anser* ! %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 $() +ic+ of t+e folloing statements about project ris is not true2 A) T+e more dollars spent on project, t+e greater t+e ris. !) T+e +ig+er t+e number of implementation staff on a project, t+e loer t+e ris. #) T+e +ig+er t+e number of organi>ational units affected by a p roject, t+e greater t+e ris. %) 6ery large0scale systems project +ave a failure rate t+at is $ to ( $ percent +ig+er t+an t+at for ot+er projects. ') T+e organi>ational compleity of a system contributes to t+e compleity of large0scale systems projects. Anser* ! %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 $<) +ic+ of t+e folloing refers to all organi>ational activities oring toard t+e adoption, management, and routini>ation of a ne information system2 A) =roduction !) Caintenance #) Implementation %) Acceptance ') 5inal acceptance Anser* # %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 $D) +ic+ of t+e folloing ould not be covered in t+e trategic !usiness =lan -ationale section of an information systems plan2 A) #urrent situation !) #urrent business organi>ation #) 5irmLs strategic plan %) #+anging environments ') #urrent infrastructure capabilities Anser* ' %ifficulty* * Coderate 1$ #opyrig+t ; 1< =earson 'ducation, Inc.
AA#!* Analytical t+ining /O* 1".* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 &) +ic+ of t+e folloing ould not be covered in t+e Canagement trategy section of an information systems plan2 A) Ac4uisition plans !) =rogress reports #) Organi>ational realignment %) Internal reorgani>ation ') Cajor training initiatives Anser* A %ifficulty* 1* 'asy AA#!* Analytical t+ining /O* 1".* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 &1) +ic+ of t+e folloing ould not be covered in t+e !udget -e4uirements section of an information systems plan2 A) -e4uirements !) =otential savings #) %ifficulties meeting business re4uirements %) 5inancing ') Ac4uisition cycle Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1".* +at met+ods can be used for selecting and evaluating information systems projects and aligning t+em it+ t+e firm:s business goals2 &) +ic+ of t+e folloing is not one of t+e activities of t+e systems analyst2 A) Acting as a c+ange agent !) #ommunicating it+ users #) Cediating beteen competing interest groups %) 5ormulating of capital budgeting models ') %eciding +ic+ systems to develop Anser* % %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &3) +ic+ of t+e folloing types of projects is most liely to fail2 A) Integration of a t+ird0party automated payment system !) -eplacement of middleare it+ eb services for legacy application integration #) !usiness process redesign project t+at restructures orflo and responsibilities %) -edesigning a user interface to an online investment site 1& #opyrig+t ; 1< =earson 'ducation, Inc.
') !uilding a eb0based interface to an eisting system Anser* # %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &") +ic+ of t+e folloing is not a responsibility of effective c+ange management2 A) Integrating legacy systems !) %ealing it+ fear and aniety about ne systems #) Training users of t+e ne system %) 'nforcing user participation at all stages of system development ') 'nsuring users are properly trained Anser* A %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &$) +ic+ of t+e folloing is not somet+ing you ould use to control ris factors in an information systems project2 A) Internal integration tools !) 'ternal integration tools #) 5ormal planning tools and formal control tools %) -eal options pricing models ') ?antt c+arts Anser* % %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &&) Internal integration tools* A) enable a project to +ave sufficient tec+nical support for projects it+ c+allenging and comple tec+nology. !) enable a project manager to properly document and monitor project plans. #) portray a project as a netor diagram it+ numbered nodes representing project tass. %) consist of ays to lin t+e or of t+e implementation team it+ users at all organi>ation levels. ') enable end users to communicate it+ system developers. Anser* A %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &() +ic+ of t+e folloing is an eample of using an internal integration tool2 1( #opyrig+t ; 1< =earson 'ducation, Inc.
A) #reating a ?antt c+art !) Including user representatives as active members of t+e project team #) #reating ='-T c+art %) 9olding fre4uent project team meetings ') %eveloping a scoring model Anser* % %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &<) 5ormal planning and control tools* A) are used to select projects +ere many criteria must be considered. !) enable a project manager to properly document and monitor project plans. #) are used to evaluate alternative systems projects. %) lin t+e or of t+e implementation team it+ users at all organi>ation levels. ') serve as a road map indicating t+e direction of systems development. Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 &D) +ic+ type of planning tool s+os eac+ tas as a +ori>ontal bar +ose lengt+ is proportional to t+e time re4uired to complete it2 A) ='-T c+art !) ?antt c+art #) !ot+ a ='-T c+art and a ?annt c+art %) coring model ') =ortfolio analysis Anser* ! %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 () To revie a project:s tass and t+eir interrelations+ips, you ould use +ic+ of t+e folloing2 A) ='-T c+art !) ?antt c+art #) ='-T c+art or a ?antt c+art %) coring model ') =ortfolio analysis Anser* A %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey 1< #opyrig+t ; 1< =earson 'ducation, Inc.
be managed2 (1) +ic+ of t+e folloing +elps project managers identify bottlenecs in project development2 A) Internal integration tools !) 'ternal integration tools #) 5ormal planning and control tools %) !ot+ internal and eternal integration tools ') =ortfolio analysis tools Anser* # %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 () 'ternal integration tools* A) enable a project to +ave sufficient tec+nical support for project management and development. !) enable a project manager to properly document and monitor project plans. #) portray a project as a netor diagram it+ numbered nodes representing project tass. %) consist of ays to lin t+e or of t+e implementation team it+ users at all organi>ation levels. ') enable project team members to eep trac of eternal costs of a project. Anser* % %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (3) +ic+ of t+e folloing is an eample of using an eternal integration tool2 A) #reating a ?antt c+art !) Including user representatives as active members of t+e project team. #) #reating a ='-T c+art. %) Bsing portfolio analysis. ') %eveloping a scoring model, Anser* ! %ifficulty* 3* #+allenging AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (") +ic+ of t+e folloing is not an organi>ational factor in systems planning and implementation2 A) tandards and performance monitoring !) ?overnment regulatory compliance #) 9ealt+ and safety %) Bser interface ') 'rgonomics 1D #opyrig+t ; 1< =earson 'ducation, Inc.
Anser* % %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 ($) In sociotec+nical design* A) separate sets of tec+nical and social design solutions are developed and compared. !) ergonomic features of a system are considered to be t+e most important consideration. #) systems analysts it+ proven bacgrounds in sociological concerns rate and compare a system:s social and tec+nical aspects. %) +uman needs are given more importance t+an tec+nical needs. ') tec+nical needs are given more importance t+an organi>ational needs. Anser* A %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (&) +ic+ of t+e folloing is t+e most idely used project management softare today2 A) 6ertabase !) I!C =roject ?uide #) Cicrosoft =roject %) Cicrosoft 'cel ') No+o =rojects Anser* # %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (() T+e larger t+e systems project, t+e greater t+e c+ance t+at t+e project ill be completed on time, it+in budget, and according to project re4uirements. Anser* 5A/' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (<) T+e systems analyst is t+e catalyst for t+e entire c+ange process and is responsible for maing sure t+at everyone involved accepts t+e c+anges created by a ne system. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 (D) T+e relations+ip beteen users and information systems specialists +as traditionally been a #opyrig+t ; 1< =earson 'ducation, Inc.
problem area for information systems implementation efforts. Anser* T-B' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <) Bser concerns and designer concerns are usually t+e same at t+e beginning of t+e project but may diverge later as t+e system is built. Anser* 5A/' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <1) A ?antt c+art grap+ically depicts project tass and t+eir interrelations+ips. Anser* 5A/' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <) Candatory use of a system is one effective ay of overcoming user resistance to an information system. Anser* 5A/' %ifficulty* * Coderate AA#!* Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <3) #ounterimplementation refers to a deliberate strategy to t+art t+e implementation of an information system or an innovation in an organi>ation. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <") T+e design of jobs, +ealt+ issues, and t+e end0user interface of information systems are all considerations in t+e field of ergonomics. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <$) T+e goal of sociotec+nical design is to create systems +ere t+e organi>ation and t+e 1 #opyrig+t ; 1< =earson 'ducation, Inc.
tec+nology c+ange and adjust to one anot+er. Anser* T-B' %ifficulty* 3* #+allenging AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <&) uccessful system building re4uires careful ________ management to minimi>e organi>ational resistance. A) cost !) tec+nology #) c+ange %) supply c+ain ') system application Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <() +ic+ of t+e folloing statements about t+e user0designer communications gap is not true2 A) It occurs because users and information systems specialists tend to +ave different bacgrounds, interests, and priorities. !) It is one of t+e major reasons +y user re4uirements are not properly incorporated into information systems. #) It is one of t+e major reasons +y users are driven out of t+e implementation process. %) +en it is pronounced, it creates a very +ig+ ris of failure for a systems development project. ') Information systems specialists prefer systems t+at are oriented toard solving business problems or facilitating organi>ational tass. Anser* ' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 <<) 'rgonomics is t+e interaction of people and mac+ines in t+e or environment, including t+e design of jobs, +ealt+ issues, and t+e end0user interface of information systems. Anser* T-B' %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2
s+eets and ould report on t+e time spent on eac+ project. T+e ot+er project is to redesign t+e client interface to t+e company etranet to mae it easier to use. T+e etranet allos clients to log in and vie t+eir current ebsites under development, as ell as vie project statistics, documents, and progress reports. #ompare t+e to p rojects in terms of ris factors. Anser* tudent ansers ill vary but s+ould include an understanding of t+e main riss factors* si>e, structure, and tec+nical epertise. An eample anser is* T+e main ris factors are si>e, structure, and tec+nical e pertise. G Si"e# T+e time0tracing project is a larger project* It involves creating ne programming t+at may interface it+ bac0end systems and ill immediately influence payment and cost. It also affects business processes. -edesigning an interface for t+e client etranet may simply be designing one or to pages t+at ill be replicated for eac+ client once t+e initial design is done. G Structure# It may be easier to define t+e re4uirements of t+e time0tracing softare, as t+is process is relatively straig+tforard. Bnderstanding +at maes t+e user interface problematic and defining ays to mae it easier to use is some+at of a less tangible 4uality t+an reporting on time, so t+is may be a concern in t+e second project. G Technical e$pertise# ince t+e time0tracing project is a ne application, t+ere may be some issues of maing sure any in0+ouse staff +as t+e appropriate level of e pertise. T+e user interface involves oring it+ eisting programming t+at ill not c+ange. 9oever, t+ere may be a need to mae sure t+at an epert +o understands usability is present. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D) Americlinic, a national c+ain of budget +ealt+0care clinics, is creating an information system t+at ill allo patients and doctors at participating franc+ises to communicate online. T+e goal of t+e system is to allo doctors to respond to minor +ealt+ 4uestions 4uicly and more efficiently, saving patients unnecessary visits to t+e clinic. T+is ill be a major procedural c+ange. +at steps ould you recommend to t+is company to ensure t+e user acceptance of t+e system2 Anser* T+e first step s+ould be to conduct an organi>ational impact analysis, to determine t+e c+anges in procedures, job function, organi>ational structure, poer relations+ips, and be+avior t+at t+is system re4uires or ill engender. Any organi>ational c+anges s+ould occur prior to implementing t+e system. In order to gain compliance and support of t+e doctors, I ould establis+ a revie committee of influential participating doctors and c+ange agents to discuss t+e system prior to development and during development in order to meet p+ysician needs and re4uirements. I ould also involve focus groups of intended users to revie prototypes of t+e system to mae sure it is easy to use, and +opefully easier to use in t+e relevant +ealt+ situations t+an going to t+e doctor. T+e company ill need to mae sure t+at t+ere is also an option for users t+at do not +ave Internet access. Bser training for doctors and nurses ill be essential. T+e company s+ould also consider incentives for doctors and patients t+at use t+e system. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D1) +ic+ of t+e folloing best describes t+e relations+ip beteen system implementation and user involvement and management support2 3 #opyrig+t ; 1< =earson 'ducation, Inc.
A) ystem implementation rarely benefits from user involvement. !) ystem implementation benefits from user support, but does not re4uire managemen t support. #) ystem implementation generally benefits from +ig+ levels of user involvement and management support. %) ystem implementation benefits from management support, but does not re4uire user support. ') ystem implementation rarely benefits from management support. Anser* # %ifficulty* * Coderate AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D) T+e differing bacgrounds beteen users and information systems specialists is referred to as t+e* A) user epertise gap. !) information system specialist inefficiency. #) user0designer paradigm. %) user0designer epertise gap. ') user0designer communications gap. Anser* ' %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D3) Information systems specialists often tend to see solutions t+at* A) are oriented toards solving business problems. !) facilitate organi>ational tass. #) optimi>e +ardare and softare efficiency at t+e epense of ease of use. %) are simplistic for end users to understand. ') employ clear documentation. Anser* # %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D") According to t+e =roject Canagement Institute, +at is t+e leading factor in project success2 A) Bpper management t+at financially bacs t+e project !) 'ecutive sponsors +o are actively engaged #) #arefully monitored c+anges in or +abits and procedures %) #ommunication beteen tec+nicians and end users ') 'nd users +o communicate t+eir needs for t+e project Anser* ! %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey " #opyrig+t ; 1< =earson 'ducation, Inc.
be managed2 D$) +ile users are concerned about an information system delivering t+e information needed for or, designers mig+t be concerned about* A) accessing t+e data on i=+ones and tablets !) t+e procedures re4uired to enter data into t+e system #) +o operation of t+e system ill c+ange t+eir daily routines %) +at demands t+e system ill place on t+e company servers ') opening lines of communication it+ end users Anser* % %ifficulty* 1* 'asy AA#!* -eflective t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D&) +at is t+e user0designer communications gap2 %escribe t+e differences beteen t+e types of concerns users and designers +ave about information systems. Anser* T+e user0designer communication gap refers to t+e tendency for users and information systems specialists to +ave different bacgrounds, interests, and priorities. T+is often manifests itself in t+e types of concerns t+e to groups +ave about information systemsH for eample, +ile a user mig+t simply be concerned +et+er t+e information system ors properly, t+e designer is concerned it+ t+e demands t+at t+e system ill put on t+e company servers. +ile users mig+t be concerned it+ t+e procedures re4uired to enter data into a ne system, t+e designers are liely to be focused on +ere t+e data ill be stored and t+e most effective tec+ni4ue to store it. %ifficulty* * Coderate AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D() +at is counterimplementation and +at are some of t+e strategies t+at organi>ations can use to avoid it2 Anser* #ounterimplementation is a deliberate strategy to t+art t+e implementation of a ne information system or innovation in general. Organi>ations can overcome t+is resistance by soliciting user participation in t+e design of a ne system, to ensure t+at employees feel invested in t+e c+angeH user education and trainingH encouraging management policiesH and employee incentives for t+ose +o cooperate and participate. %ifficulty* * Coderate AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 D<) +at are t+e benefits of t+e sociotec+nical design approac+ to information systems2 Anser* T+e sociotec+nical design approac+ features designers setting fort+ to separate plans tec+nical solutions and social design solutions. T+e social design plan ill emp+asi>e orgroup structures, allocation of tass, and t+e design of individual jobs. If t+e tec+nical solutions enable t+e social design plan to also be ac+ieved, t+en t+e design can move forard. T+e result is an information system t+at blends tec+nical efficiency it+ sensitivity to organi>ational and +uman needs, as opposed to an information system t+at ors properly but is poorly suited to t+e social $ #opyrig+t ; 1< =earson 'ducation, Inc.
environment of t+e orplace. %ifficulty* * Coderate AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 DD) +at are ?antt c+arts and ='-T c+arts2 In +at ay mig+t a ='-T c+art be a better option t+an a ?antt c+art2 Anser* ?antt c+arts lists project activities and corresponding start and completion dates and visually s+os t+e duration of tass in a project along it+ t+eir +uman resource re4uirements. Tass are displayed as +ori>ontal bars +ose lengt+ represents t+e amount of time re4uired to complete t+e tas. 9oever, ?antt c+arts donLt s+o +o one tas is affected by ot+ers. 5o r eample, if delays in a tas cause a ripple effect in ot+er tass, t+is renders t+e ?antt c+art obsolete. ='-T c+arts grap+ically depict project tass and t+eir inter0relations+ips, muc+ lie a flo c+art. ='-T c+arts s+o t+e activities t+at must be completed before t+e net activity can begin. %ifficulty* * Coderate AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2 1) 8ou are t+e IT manager for a small online mareting firm looing to determine t+e best ay to budget more capital in information systems projects your firm +as completed it+in t+e last year. 9o ould you evaluate t+e ort+ of your firmLs completed projects2 Anser* #apital budgeting models are tec+ni4ues used to measure t+e value of investing in long0 term capital investment projects lie information systems. T+e principal capital budgeting models for evaluating an IT project are t+e paybac met+od, accounting rate of return on investment F-OI), net present value, and t+e internal rate of return. 'ac+ of t+ese met+ods measures cas+ flos into and out of t+e firm, taing account of investment costs of systems as ell as t+e increased sales of products and services made possible by t+e ne systems. %ifficulty* 3* #+allenging AA#!* ritten and oral communicationH Analytical t+ining /O* 1"0"* +at are t+e principal ris factors in information systems projects, and +o can t+ey be managed2
& #opyrig+t ; 1< =earson 'ducation, Inc.
