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Chapter 13 Building Information Systems

21) What is the primary driving factor in firms to select domestic outsourcing firms to bui
ld system
A) to take advantage of technical skills the firm does not have
B) to save labor costs
C) to avoid change management issues
D) all of the above
Answer: A

22) The four kinds of structural organizational change enabled by IT, in order from least t
o most
risky, are
A) rationalization, automation, reengineering, and redesigning.
B) rationalization, automation, reengineering, and paradigm shift.
C) automation, rationalization, reengineering, and paradigm shift.
D) automation, redesigning, restructuring, and paradigm shift.
Answer: C
23) Business processes are analyzed, simplified, and redesigned in
A) business process redesign.
B) rationalization of procedures.
C) automation.
D) paradigm shifts.

This is an exa mple of A) automation. Answer: D 25) A bank has reworked its mortgage application process so that several steps are handle d by computer software. Answer: B 26) An upscale organic foods grocery chain is implementing an information system that will enable it to add sameday home delivery of groceries to its customers. what are the first three steps in BPM? . D) business process redesign. C) paradigm shift. C) standard operating procedures are streamlined to remove bottlenecks. D) employees are enabled to perform their tasks more efficiently. Answer: C 27) In order.Answer: A 24) In automation A) business processes are simplified. B) rationalization of procedures. B) business processes are reorganized to cut waste and eliminate repetitive. The goal is to gradually improve its efficiency over time. This is an example of A) automation. D) business process redesign. C) paradigm shift. B) rationalization of procedures. and some steps are combined to reduce bottlenecks in processin g. paperintensive tasks.

D) TQM. A) Business process redesign B) Business process management C) CASE tools D) TQM Answer: B 29) The idea that the achievement of quality control is an end in itself describes a main co ncept of A) BPM. B) BPR. (3) designing th e new process C) (1) identifying processes for change. (3) measuring the op timized process Answer: A 28) ________ provide(s) a methodology and tools for dealing with the organization's ong oing need to revise and optimize its numerous business processes. (2) designing the new process. (2) analyzing existing processes. (2) identifying processes for change.A) (1) identifying processes for change. (3) designing th e new process B) (1) analyzing existing processes. C) six sigma. (3) implementing the new process D) (1) analyzing processes to change (2) designing the new process. Answer: D .

D) workflow management. B) business process redesign. Answer: A 35) Transferring data from a legacy system to the new system would be defined by which category of system design specifications? A) input B) database C) manual procedures D) conversion Answer: D 36) Determining methods for feedback and error handling would be defined by which cat egory of system design specifications? A) training and documentation B) user interface C) manual procedures D) security and controls Answer: B 37) Unit testing . C) workflow engineering.34) Enabling organizations to make continual improvements to many business processes and to use processes as the fundamental building blocks of corporate information systems is the goal of A) business process management.

B) tests the functioning of the system as a whole in order to determine if discrete modules will function together as planned. . B) tests the functioning of the system as a whole in order to determine if discrete modules will function together as planned. C) tests each program separately. C) tests each program separately. the new system A) is tested by an outsourced company. Answer: B 39) Acceptance testing A) includes all the preparations for the series of tests to be performed on the system.A) includes all the preparations for the series of tests to be performed on the system. D) provides the final certification that the system is ready to be used in a production setti ng. B) tests the functioning of the system as a whole in order to determine if discrete modules will function together as planned. D) provides the final certification that the system is ready to be used in a production setti ng. D) provides the final certification that the system is ready to be used in a production setti ng. C) tests each program separately. Answer: C 38) System testing A) includes all the preparations for the series of tests to be performed on the system. Answer: D 40) In a parallel conversion strategy.

or improve processing efficiencies are termed A) compliance. D) is introduced in stages. B) production. C) maintenance. C) and the old are run together. B) replaces the old one at an appointed time. meet new requirements. documentation. Answer: C 43) In what stage of systems development are design specifications created? A) systems analysis B) systems design C) testing D) conversion . or production to a production system to correct errors. software. Answer: B 42) Changes in hardware. the new system A) is tested by an outsourced company. D) acceptance. Answer: C 41) In the direct cutover conversion strategy. C) and the old are run together.B) replaces the old one at an appointed time. D) is introduced in stages.

system specifications that were prepared during the design stage are translated into software code. C) user documentation. Answer: A 72) A software package evaluation process is often based on a series of questions sent to vendors. D) data flow diagram. C) user documentation.Answer: B 44) The primary tool for representing a system's component processes and the flow of dat a between them is the A) data dictionary. request for proposal 73) During the ________ stage of system development. called a(n) ________ Answer: RFP. B) process specifications diagram. system builders us e A) a data dictionary. Answer: D 45) To understand and define the contents of data flows and data store. B) process specifications diagrams. D) data flow diagrams. Answer: programming .

technical. and organizational standpoint. Answer: Joint application . and how the informat ion is needed. Answer: systems design 77) ________ is the process of changing from the old system to the new system. Answer: Fourth-generation languages 80) ________ design is a process used to accelerate the generation of information require ments by having end users and information system specialists work together in intensive interactive design sessions. Answer: feasibility study 75) ________ contain a detailed statement of the information needs that a new system mu st satisfy. Answer: Conversion 78) ________ describe the transformation occurring within the lowest level of the data fl ow diagrams. Answer: Process specifications 79) ________ are software tools that enable end users to create reports or develop software applications with minimal or no technical assistance.74) A systems analysis includes a(n) ________ that is used to determine whether the solu tion is achievable from a financial. where. Answer: Information requirements 76) A(n) ________ is the model or blueprint for an information system solution and consi sts of all the specifications that will deliver the functions identified during systems analys is. and when. identifies who needs what information.

which has previously been handled entirely with a paperbased process. In automation. Give an example of each type of change. without the need of a hotel employee to confirm the process. Quality improvements in business processes can increase efficiency. standard operating procedures are streamlined. In a hotel. this might mean that a reservation system that required three or four steps for checkin g a customer in would be reduced to one or two steps. 4. the reservation and check-in system might be designed to allow the cus tomers to reserve rooms and check in themselves.4 defects per million opportunities. representing 3. 3. In TQM.81) Describe each type of organizational change enabled by information technology. the very nature of the business is rethought and new business models are defined. In business process reengineering. business processes are analyzed. simplified and rede signed. or perhaps even as a cond ominium or other business type. this might mean that the idea of renting rooms on a night-by-night basis to clients might be rethought of as an extended stay place. reduce waste. 2. Everyone is expected to contrib ute to the overall improvement of quality. this might mean that a system is set up for the reservations desk to record and p rocess customer reservations. I n a hotel. as it might be illustrated through the operations of a h otel. lower costs. 82) What is the business importance of managing the quality of business processes? Des cribe two methods of quality management. In paradigm shift. employees are assisted with performing tasks automatically.Two methods for achieving greater qua lity are Total Quality Management (TQM) and Six Sigma. Most c ompanies cannot achieve this level of quality but use six sigma as a goal to implement a s et of methodologies and techniques for improving quality and reducing costs. In a ho tel. Answer: Quality management is one area of continuous process improvement. Answer: 1. an d can raise the level of product and service quality. quality is the respons ibility of all people and functions within an organization. They would like to set up a system by which prospective students can appl . In rationalization of procedures. Six sigma is a specific measure of quality. In a hotel. 83) You are consulting for the information technology division of a state university to gui de and facilitate the design of a new system for handling college applications.

and organizational standpoint. identifying its causes. whether the technology nee ded for the system was available and could be handled by the firm's information systems specialists. Describe in detail their first steps and any studies they should perform before de signing the new information system. Give at least two examples for each one. A written systems proposal report describes the costs and benefits. and organizational impacts represents the most desirable alternative. observing system operations. They should identify several alternative solutions that the organization can pursue.y online. along with feasibility studies and determining information requirement s. technical features. or achievable. The process then assesses t he feasibility of each. content. 84) List and describe at least nine factors considered in the design specifications for a ne w system. work papers. They will also need to define the specific information require ments that must be met by the system solution selected. An example answer is: The college will need to perform systems analysis. an d procedures. It is up to management to determine w hich mix of costs. specifying the solution. Medium. and how. Answer: • Output. the problems of existing systems. This consists of defining the problem. timing . Th e systems analysis would include a feasibility study to determine whether that solution was feasible. technical. Requirements analysis carefully defines the objectives of the new or modified system and develops a detailed description of the functi ons that the new system must perform. It also includes identifying the primary owners and users of data along with existing hardwa re and software. advantages and disadvantages of each alternative. when. The feasibility study would det ermine whether the proposed system was a good investment. examining documents. benefits. and whether the organization could handle the changes introduced by the syst em. and interviewing key users of the systems. but should include an understanding of the first step of systems development — systems analysis. from a financial. This involves identifying who ne eds what information. Answer: Student answers will vary. where. identifying the information requirements.

process design. Operations documentation. systems documents. Simplicity. logic. flow. errors Database design. how. Select training techniques. output controls. What activities. Input controls. required reports. Logical data model. who performs them. job design. select testing method. organization structure design. volume and speed requirements. catastrophe plans. efficiency. Transfer files. record specifications •Processing. user documentation Conversion. Access controls. feedback. procedural controls Security. Origins. initiate procedures. reporting relationships . Computations. identify training facilities Organizational changes. develop training modules. data entry User interface. Task redesign. audit trails Documentation. organization and design. program modules. cut over to new system Training. where Controls. timing of outputs Manual procedures. when. processing controls.Input.

the users themselves create the system. users are in volved throughout development. th e system will need to be tested as accessed from the variety of platforms that are supporte d by the application. end users are limited to providing infor mation requirements and reviewing the technical staff's work. through the use and review of iterative steps of the proto type. Ecommerce companies need to be able to add. change. and then the system as a whole will need to b e tested (in system testing). they have more opportunities to mold the system according to t heir priorities and business requirements. Any individual components will need t o be tested separately. and retire their technology capabilit . 86) You work for the IT department of a startup ASP. and more opportunities to control the outcome. Describe the proces ses you will recommend. The role of the user in the development of software depends on the method of development used. Building successful inf ormation systems requires close cooperation among end users and information systems sp ecialists throughout the systems development process. first (in unit testing). Answer: The user is the primary focus of software development. If the hosted application supports both Mac and Windows users. and it is your job to set up the testin g processes for a new enterprise system the company will be hosting. work. If users are heavily involved in the development of a system. In SLDC. In end-user development. What unique considerations will you have? Answer: The first step is to prepare the test plan. the system and its parts will need to be tested using client computers running these systems. Because this is a hosted application. Users are typicall y more involved also in RAD.85) Discuss the role and influence the user plays in software development. In prototyping. through the use of prototyping and JAD. Finally acceptance testing will be conducted to make sure the system is ready to be used in a production setting. Whether a new informa tion system succeeds or fails largely depends on the roles of users. 87) What qualities of object-oriented development make this method especially suitable f or Internet applications? Answer: Object-oriented development uses the object as the basic unit of systems analysi s and design. They also are more likely to react positively to the completed system because they have b een active participants in the change process. end users and information systems specialists work together in an interactive se ssion to discuss design. In joint applicatio n design. Incorporating user knowledge and expertise leads to better solutions. The system is modeled as a collection of objects and the relationships betwe en them.

users continually i nteract with the prototype. (5) In outsourcing — systems are built and sometimes operated by an external vendor. it is more likely to produce systems that fulfill user requirements. rapid and informal. redesigned.ies very rapidly. (2) develop an initial prot . 89) What are the advantages and disadvantages of prototyping? Describe the steps in prot otyping. Answer: 1) Systems lifecycle is a sequential step-by-tep formal process. limited role of users. Because prototyping encourages intense end-user involvement through out the process. Give at least two circumstances under which prototyping might be useful. If the completed prototype works r easonably well. management may not see the need for reprogramming. This can backfire later wit h large quantities of data or large numbers of users in a production environment. Object-riented development allows objects to be reused and repackaged with other objects to create new software. (3) An applications software package is commercial software t hat eliminates the need for internally developed software programs (4) In end-user develo pment. The ste ps in prototyping are: (1) Identify the user's basic requirements. (2) In prototyping. and iterative process. requirements are specified dynamicall y with experimental systems in a rapid. systems are created by end users using fourth-generation software tools. full d ocumentation in testing to build a polished production system. written specifica tion and approvals. Rapid prototyping can gloss over essential steps in systems development. Workin g prototype systems can be developed very rapidly and inexpensively. 88) Identify and describe each of the five systems development approaches. informal. Answer: Prototyping is most useful when there is some uncertainty about requirements o r design solutions. minimal role of information systems specialists. saving money and development time.

cultural differences. It is also possible to underestimate costs in outsourcing. (3) use the prototype. Answer: TRUE 2) Rationalization of procedures describes a radical rethinking of the business models. in the case of domestic outsourcing. The benefit to outsourcing is. The vendor may be dome stic or in another country (in offshore outsourcing). Prototyping might be especially useful in designing end-user interfaces. having third party firms access to privileged company data and information. This can include software development and hosting a pplications. productivity losses. a firm hires an external organization to build or maintain part or all of its information systems needs. or situations in which the users have no clear ideas of what their information requirements are. a primary benefit is cost savings. 90) What is outsourcing? Describe the advantages and disadvantages to outsourcing soft ware development. In the case of offshore outsourcing. being able to develop systems that in-house staff may not have the time or skills to do. Answer: TRUE . 1) The most common form of IT-enabled organizational change is automation. which include costs for transferring knowledge. Answer: FALSE 3) Failure to address properly the organizational changes surrounding the introduction of a new system can cause the demise of an otherwise good system. Answer: In outsourcing. (4) revise and enhance the prototype. Disadvantages would include relinquishing some control over dev elopment. but the firm may also host any developed applications on its own hardware w hile having the vendor create and maintain software or systems. as costs and salaries in foreign countries ca n be significantly less.otype. and other human resource issues.

4 defects per million. partition ing a system into modules that show manageable levels of detail. during the programming stage. Answer: TRUE 7) Documentation reveals how well the system has met its original objectives.4) TQM describes the measurement of quality as 3. Answer: TRUE 9) A structure chart is a bottom-up chart. Answer: FALSE 10) Object-oriented development is more incremental than traditional structured develop ment. Answer: TRUE 11) Objects are grouped into hierarchies. showing each level of design. Answer: FALSE 8) A data flow diagram offers a logical and graphical model of information flow.2 6) The system is not in production until conversion is complete. the design documen ts are sufficiently detailed. and hierarchies into classes. and its place in the overall design structure. its relationship to other levels. Answer: FALSE 5) Thorough testing is not required if. Answer: FALSE Objective: 13. .

Answer: TRUE 17) One advantage of fourth-generation tools is that they can easily handle processing lar ge numbers of transactions or applications with extensive procedural logic and updating requirements. Answer: TRUE 15) A problem with prototyping is that the systems constructed using this method may no t be able to handle large quantities of data in a production environment. Answer: FALSE 14) Prototyping is more iterative than the conventional lifecycle. Answer: TRUE 16) End-user-developed systems can be completed more rapidly than those developed thr ough the conventional systems lifecycle.Answer: FALSE 12) CASE tools facilitate the creation of clear documentation and the coordination of tea development efforts. Answer: TRUE 13) The oldest method for building information systems is prototyping. .

Answer: FALSE 20) Systems development activities always take place in sequential order. Answer: FALSE . a company hires an external vendor to create the softw are for its system. Answer: TRUE 19) A primary benefit of offshore outsourcing is that this can substantially reduce hidden costs. but operates the software on its own computers.Answer: FALSE 18) In some forms of outsourcing.