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MIS Chapt 14

The cost of a project is based on the time taken to complete the project.
TRUE
An information system project’s scope is directly related to its business requirements.
TRUE
The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects.
FALSE
An information systems plan contains a statement of corporate goals and specifies how information technology will support the attainment of those goals
TRUE
If an intended benefit of an IT project is improved decision making, managers should develop a set of metrics to quantify the value of an improved decision
TRUE
Scoring models are used most commonly to support decisions rather than as the final arbiters of system selection
TRUE
Transaction and clerical systems that displace labor and save space typically produce more measurable, tangible benefits than management information systems.
TRUE
Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run.
TRUE
A benefit of using TCO analysis to evaluate an information technology investment is that it is able to incorporate intangible and “soft” factors such as benefits and complexity costs
FALSE
More timely information is a tangible benefit of information systems.
FALSE
Real options pricing models use the concept of options valuation borrowed from the financial industry.
TRUE
The larger the systems project, the more risk the project runs in terms of being completed on time, within budget, and according to project requirements.
TRUE
The systems analyst is the catalyst for the entire change process and is responsible for making sure that everyone involved accepts the changes created by a new system.
TRUE
The relationship between users and information systems specialists has traditionally been a problem area for information systems implementation efforts.
TRUE
User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built.
FALSE
A Gantt chart graphically depicts project tasks and their interrelationships.
FALSE
Mandatory use of a system is one effective way of overcoming user resistance to an information system.
FALSE
Counterimplementation refers to a deliberate strategy to thwart the implementation of an information system or an innovation in an organization
TRUE
The design of jobs, health issues, and the end-user interface of information systems are all considerations in the field of ergonomics.
TRUE
The goal of sociotechnical design is to create systems with better user interfaces and contribute to fewer health issues
FALSE
On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent.
A) 30
B) 40
C) 50
D) 60
C) 50
As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management?
A) cost overruns
B) organizational conflict
C) time slippage
D) technical shortfalls
B) organizational conflict
Which of the following is not one of the five main variables affecting project success?
A) risk
B) goals
C) time
D) quality
B) goals
At the top of the management structure for information systems projects in a large company is
A) project management.
B) the CIO.
C) the corporate strategic planning group.
D) the board of directors
C) the corporate strategic planning group.
The ________ reviews and approves plans for systems in all divisions.
A) project management group
B) project team
C) IS steering committee
D) corporate strategic planning committee
C) IS steering committee
The ________ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists.
A) project management group
B) project team
C) IS steering committee
D) corporate strategic planning committee
B) project team
The ________ is directly responsible for the individual systems project.
A) project management group
B) project team
C) IS steering committee
D) corporate strategic planning committee
B) project team
A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called a(n)
A) project plan.
B) portfolio analysis.
C) information systems plan.
D) enterprise analysis.
C) information systems plan.
You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company. Which of the following would you prepare to describe how the new system will affect a firm’s structure and operations?
A) information systems plan
B) internal integration report
C) sociotechnical design report
D) organizational impact analysis
D) organizational impact analysis
All of the following are indications of a failed information systems project except
A) employees are refusing to switch to the new system.
B) employees have created a spreadsheet solution to manipulate the data generated by the system.
C) a redesigned Web site has fewer visits to the customer support pages.
D) employees require training to properly use the system.
D) employees require training to properly use the system.
Which of the following project management variables indicates how well the project satisfies management objectives?
A) goals
B) risk
C) quality
D) scope
C) quality
The central method used in a portfolio analysis is to
A) inventory all of the organization’s information systems projects and assets.
B) perform a weighted comparison of the criteria used to evaluate a system.
C) survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information.
D) interview a small number of top managers to identify their goals and criteria for achieving success.
A) inventory all of the organization’s information systems projects and assets.
In using a portfolio analysis to determine which IT projects to pursue, you would
A) select the most low-risk projects from the inventory.
B) limit work to those projects with great rewards.
C) select only low-risk, high-reward projects.
D) balance high-risk, high reward projects with lower-risk projects.
D) balance high-risk, high reward projects with lower-risk projects.
Which method would you use to develop risk profiles for a firm’s information system projects and assets?
A) information systems plan
B) scoring model
C) portfolio analysis
D) TCO
C) portfolio analysis
You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT projects. Which types of projects would be best avoided?
A) any high-risk projects
B) any low-benefit projects
C) all high-risk, low-benefit projects
D) none, any project might be beneficial
C) all high-risk, low-benefit projects
The central method used in a scoring model is to
A) inventory all of the organization’s information systems projects and assets.
B) perform a weighted comparison of the criteria used to evaluate a system.
C) survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information.
D) interview a small number of top managers to identify their goals and criteria for achieving success.
B) perform a weighted comparison of the criteria used to evaluate a system.
You are using a capital budgeting method to assess the worth of your company’s new information system. Which of the following costs would you include in measuring the cash outflow?
A) increased sales of products
B) hardware and software expenditures
C) labor expenditures
D) reduced costs in production and operation
E) both A and D
F) both B and C
G) A, B, C and D
F) both B and C
Which method is used to assign weights to various features of a system?
A) information systems plan
B) scoring model
C) portfolio analysis
D) TCO
B) scoring model
The criteria used for evaluation in a scoring model are usually determined by
A) lengthy discussions among the decision-making group.
B) portfolio analysis.
C) the IS steering committee.
D) systems analysts.
A) lengthy discussions among the decision-making group.
The worth of systems from a financial perspective essentially revolves around the issue of
A) total cost of ownership.
B) adherence to information requirements.
C) asset utilization.
D) return on invested capital
D) return on invested capital
All of the following are intangible benefits of information systems except
A) improved asset utilization.
B) increased organizational learning.
C) improved operations.
D) reduced workforce
D) reduced workforce
Which of the following is not a tangible benefit of information systems?
A) reduced rate of growth in expenses
B) lower computer expenses
C) improved resource control
D) increased productivity
C) improved resource control
The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment (ROI), the net present value, and the
A) future present value.
B) internal rate of return.
C) external rate of return.
D) ROPM.
B) internal rate of return.
In working with ROPMs and options valuation, a call option is a(n)
A) obligation to purchase an asset at a later date at a fixed price.
B) obligation to either purchase or sell an asset at a later date at a strike price.
C) right to purchase an asset at a later date at a strike price.
D) right to purchase or sell an asset at a later date at a fixed price.
D) right to purchase or sell an asset at a later date at a fixed price.
ROPMs value information systems similar to stock options, in that
A) ROPMs can be bought and sold like stocks.
B) a company’s worth can be evaluated by the worth of their ROPMs.
C) initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.
D) expenditures and benefits from IT projects are seen as inflows and outflows of cash that can be treated themselves like options.
C) initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.
To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use
A) capital budgeting.
B) the real option pricing model.
C) a scoring model.
D) the net present value
B) the real option pricing model.
Which of the following is a limitation of using a financial approach to evaluate information systems?
A) inability to measure ROI
B) inability to control vendor costs
C) inability to assess risk
D) inability to assess costs from organizational disruption
D) inability to assess costs from organizational disruption
Which of the following projects is the riskiest?
A) a project that managers are concerned will affect their roles and job descriptions
B) a project that requires technical expertise that your firm’s IT employees do not have
C) a project that has a strict deadline, or sales will suffer
D) a project that will automate many clerical duties
A) a project that managers are concerned will affect their roles and job descriptions
Which of the following statements best describes the effect that project structure has on overall project risk?
A) Highly structured projects are more complex, and run a higher risk of programmers and users misunderstanding the ultimate goals.
B) Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals.
C) Highly structured projects tend to be larger, affecting more organizational units, and run both the risk of out-of-control costs and becoming too difficult to control.
D) Less structured projects are more able to be quickly developed, tested, and implemented using cutting-edge RAD and JAD development techniques, and pose less risk of running up unforeseen costs.
B) Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals.
The project risk will rise if the project team and the IS staff lack
A) legacy applications as a starting point.
B) good equipment.
C) the required technical expertise.
D) financial studies and plans.
C) the required technical expertise.
The organizational activities working toward the adoption, management, and routinization of a new information system are called
A) production.
B) maintenance.
C) implementation.
D) acceptance
C) implementation.
One example of an implementation problem is
A) poor user interface.
B) inadequate user training.
C) project running over budget.
D) changes in job activities and responsibilities
B) inadequate user training.
According to your reading of the chapter, change management is a process that
A) should be addressed before a project is developed.
B) begins when a project is implemented.
C) is used primarily to mandate user acceptance.
D) must be addressed in all systems development
A) should be addressed before a project is developed.
Users prefer systems that
A) are oriented to facilitating organizational tasks and solving business problems.
B) work with existing DBMS.
C) are able to provide optimum hardware and software efficiency.
D) are capable of storing much more data than they need.
A) are oriented to facilitating organizational tasks and solving business problems.
Which of the following is not one of the activities of the systems analyst?
A) acting as a change agent
B) communication with users
C) mediating between competing interest groups
D) formulation of capital budgeting models
D) formulation of capital budgeting models
Which of the following statistics from studies on failed projects is not true?
A) Between 30 and 40 percent of software projects fail in terms of budget, schedule, and quality.
B) Thirty-two percent of technology investments are completed on time, within budget, and with requirements met.
C) The average cost overrun of IT projects is 60 percent.
D) One in six IT projects have an average cost overrun of 200 percent.
C) The average cost overrun of IT projects is 60 percent.
Which of the following types of projects is most likely to fail?
A) integration of a third-party automated payment system
B) replacement of middleware with Web services for legacy application integration
C) a business process redesign project that restructures workflow and responsibilities
D) redesigning a user interface to an online investment site
C) a business process redesign project that restructures workflow and responsibilities
Which of the following is not a responsibility of effective change management?
A) integrating legacy systems
B) dealing with fear and anxiety about new systems
C) training users of the new system
D) enforcing user participation at all stages of system development
A) integrating legacy systems
Which of the following tools would you use to control risk factors in an information systems project?
A) internal integration tools
B) external integration tools
C) formal planning tools and formal control tools
D) A and B
E) A and C
F) all of the above
F) all of the above
Internal integration tools
A) enable a project to have sufficient technical support for project management and development.
B) enable a project manager to properly document and monitor project plans.
C) portray a project as a network diagram with numbered nodes representing project tasks.
D) consist of ways to link the work of the implementation team with users at all organization levels.
A) enable a project to have sufficient technical support for project management and development.
An example of using an internal integration tool would be to
A) define task dependencies.
B) include user representatives as active members of the project team.
C) create a PERT chart.
D) hold frequent project team meetings.
D) hold frequent project team meetings.
Formal planning and control tools
A) enable a project to have sufficient technical support for project management and development.
B) enable a project manager to properly document and monitor project plans.
C) portray a project as a network diagram with numbered nodes representing project tasks.
D) consist of ways to link the work of the implementation team with users at all organization levels.
B) enable a project manager to properly document and monitor project plans.
Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it?
A) PERT chart
B) Gantt chart
C) both A and B
D) neither A nor B
B) Gantt chart
To review a project’s tasks and their interrelationships, you would use a
A) PERT chart.
B) Gantt chart.
C) either A or B.
D) neither A nor B.
A) PERT chart.
Which type of tool helps project managers identify bottlenecks in project development?
A) internal integration tools
B) external integration tools
C) formal planning and control tools
D) both B and C
C) formal planning and control tools
External integration tools
A) enable a project to have sufficient technical support for project management and development.
B) enable a project manager to properly document and monitor project plans.
C) portray a project as a network diagram with numbered nodes representing project tasks.
D) consist of ways to link the work of the implementation team with users at all organization levels.
D) consist of ways to link the work of the implementation team with users at all organization levels.
An example of using an external integration tool would be to
A) define task dependencies.
B) include user representatives as active members of the project team.
C) create a PERT chart.
D) hold frequent project team meetings.
B) include user representatives as active members of the project team.
Which of the following is not an organizational factor in systems planning and implementation?
A) standards and performance monitoring
B) government regulatory compliance
C) health and safety
D) user interface
D) user interface
In sociotechnical design
A) separate sets of technical and social design solutions are developed and compared.
B) ergonomic features of a system and the system’s technical design are given equal importance.
C) systems analysts with proven backgrounds in sociological concerns rate and compare a system’s social and technical aspects.
D) all of the above
A) separate sets of technical and social design solutions are developed and compared.
The most widely used project management software today is
A) Vertabase.
B) IBM Project Guide.
C) Microsoft Project.
D) Microsoft Excel
C) Microsoft Project.
________ refers to the application of knowledge, skills, tools and techniques to achieve specific targets within specified budget and time constraints.
Project Mangement
One of the five major variables in project management, ________ is an indicator of how well the project satisfies management objectives.
quality
A(n) ________ is a method for deciding among alternative systems based on a system of ratings for selected objectives
scoring model
The ________ is the part of the system that users interact with.
user interface
________ methods rely on measures of cash flows into and out of the firm.
Capital budgeting
A planned series of related activities for achieving a specific business goal is called a(n) ________.
project
Successful system building requires careful ________ management to minimize organizational resistance.
change
In one strategic approach to determining information requirements, managers select a small number of ________ that reflect firm success and profitability
KPIs (key performance indicators)
A user-designer ________ occurs when there is a difference in background, interests and priorities that impedes discussion and problem solving among users and IS specialists
communication gap
________ is the interaction of people and machines in the work environment, including the design of jobs, health issues, and the end-user interface of information systems.
Ergonomics

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