20.1 Technology-Enabled Finance Transformation Flashcards
An information system (IS) project manager is currently in the process of adding a system analyst to the IS staff. The new systems analyst will be involved with testing the new computerized system. At which stage of the systems development life cycle will the analyst be primarily used?
A. Cost-benefit analysis
B. Requirements definition
C. Flowcharting
D. Development
D. Development
The systems development life-cycle approach is the oldest methodology applied to the development of medium or large information systems. The cycle is analytically divisible into stages; definition, design, development, implementation, and maintenance. Testing is the most crucial step in the development stage of the life cycle.
All of the following are correct statements regarding the use of cloud computing for big data projects except
A. Businesses are hesitant to invest in an extensive server and storage infrastructure that might only be used occasionally to complete big data tasks.
B. Businesses only pay for the storage and computing time actually used.
C. An advantage of using cloud computing includes fast access to software.
D. Analysts are not required to have a detailed understanding of the available data and possess some sense of what answer(s) they’re looking for.
D. Analysts are not required to have a detailed understanding of the available data and possess some sense of what answer(s) they’re looking for.
Analysts must have a detailed understanding of the available data and process some sense of the answers they are looking for. The value of data is only as valuable as the business outcomes it makes possible. It is how businesses make use of data that allows full recognition of its true value and the potential to improve decision-making capabilities and measure them against the results of positive business outcomes.
The process of learning how the current system functions, determining the needs of users, and developing the logical requirements of a proposed system is referred to as
A. Systems maintenance.
B. Systems analysis.
C. Systems feasibility study.
D. Systems design.
B. Systems analysis.
A system analysis requires a survey of the existing system, the organization itself, and the organization’s environment to determine (among other things) whether a new system is needed. The survey results determine not only what, where, how, and by whom activities are performed but also why, how well, and whether they should be done at all. Ascertaining the problems and informational needs of decision makers is the next step. The systems analyst must consider the entity’s key success variables (factors that determine its success or failure), the decisions currently being made and those that should be made, the factors important in decision making (timing, relation to other decisions, etc.), the information needed for decisions, and how well the current system makes those decisions. Finally, the systems analysis should establish the requirements of a system that will meet user needs.
The least risky strategy for converting from a manual to a computerized accounts receivable system would be a
A. Direct conversion.
B. Parallel conversion.
C. Pilot conversion.
D. Database conversion.
B. Parallel conversion.
The least risky strategy for converting from a manual to a computerized system is a parallel conversion in which the old and new systems are operated simultaneously until satisfaction is obtained that the new system is operating as expected. Slightly more risky is a pilot conversion in which the new system is introduced by module or segment.
Which of the following are objectives for performing tests during system development?
I. System responds correctly to all kinds of inputs
II. System achieves the general result its stakeholders desire
III. System meets the requirements that guided its design and development
IV. System performs its functions within an acceptable time
A. I and III only
B. II, III, and IV only
C. I, II, and IV only
D. I, II, III and IV
D. I, II, III and IV
Testing is performed during system development with the intent of identifying errors or other defects. The job of testing is an iterative process as when one error is corrected, it can illuminate other errors or even create new ones. All of the objectives listed are objectives for performing tests during system development.
Two phases of systems planning are project definition and project initiation. All of the following are steps in the project initiation phase except
A. Preparing the project proposal.
B. Informing managers and employees of the project.
C. Assembling the project team.
D. Training selected personnel.
A. Preparing the project proposal.
The project initiation phase includes promptly informing managers and employees about the project, assembling the project team (possibly including systems analysts, programmers, accountants, and users), training selected personnel to improve necessary skills and enhance communication among team members, and establishing project controls (e.g., by implementing a project scheduling technique such as PERT). Preparing the project proposal is a part of the project definition phase, as are conducting feasibility studies, determining project priority, and submitting the proposal for approval.
An analyst prepared a forecast using newly developed system features. The analyst recently left the company and her replacement was unable to understand how to use these system functionalities. In accordance with systems development life-cycle best practices, which one of the following controls would have prevented this situation from occurring?
A. End-user computing efforts are outlined.
B. Documentation standards and procedures are developed.
C. Backup activities and requirements are put into place.
D. Changes made to the system are monitored and evaluated.
B. Documentation standards and procedures are developed.
A requirement for documentation standards would have prevented the problem.
Software-as-a-service can best be defined as a(n)
A. On-premises ERP system installed and serviced locally.
B. Type of cloud computing in which applications are hosted by a third party for a monthly fee.
C. Type of database management system serviced by a third party for an annual fee.
D. Infrastructure platform that replaces complex individual computers within a business.
B. Type of cloud computing in which applications are hosted by a third party for a monthly fee.
Software-as-a-service (SaaS) is a software-user distribution model wherein a third-party provider hosts applications and makes them available to subscribers over the internet. With this model, the user does not have to buy and maintain as much computer hardware, install software, or worry about manning support services. Other benefits of SaaS include flexible payments, scalable usage, automatic updates, and flexible accessibility.
An insurance firm that follows the systems development life cycle concept for all major information system projects is preparing to start a feasibility study for a proposed underwriting system. Some of the primary factors the feasibility study should include are
A. Possible vendors for the system and their reputation for quality.
B. Exposure to computer viruses and other intrusions.
C. Methods of implementation, such as parallel or cutover.
D. Technology and related costs.
D. Technology and related costs.
The feasibility study should consider the activity to be automated, the needs of the user, the type of equipment required, the cost, and the potential benefit to the specific area and the company in general. Thus, technical feasibility and cost are determined during this stage.
he process of monitoring, evaluating, and modifying a system as needed is referred to as
A. Systems analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. Systems implementation.
C. Systems maintenance.
Systems maintenance must be undertaken by systems analysts and applications programmers continuously throughout the life of a system. Maintenance is the redesign of the system and programs to meet new needs or to correct design flaws. Ideally, these changes should be made as part of a regular program of preventive maintenance.
Workwell Company operates in several regions, with each region performing its data processing in a regional data center. The corporate management information systems (MIS) staff has developed a database management system to handle customer service and billing. The director of MIS recommended that the new system be implemented in the Southwestern Region to ascertain if the system operates in a satisfactory manner. This type of conversion is called a
A. Parallel conversion.
B. Direct conversion.
C. Prototype conversion.
D. Pilot conversion.
D. Pilot conversion
A modular conversion approach entails switching to the new or improved system in organizational (division, region, product line, etc.) segments or system segments (accounts receivable, database, etc.). A pilot conversion is one in which the final testing and switchover are accomplished at one segment or division of the company.
A major disadvantage of the life cycle approach to system development is that it is not well-suited for projects that are
A. Structured.
B. Large.
C. Complex.
D. Unstructured.
D. Unstructured
The life cycle approach is best employed when systems are large and highly structured, users understand the tasks to be performed by the information system, and the developers have directly applicable experience in designing similar systems. In the life cycle process, each stage of development is highly structured, and requirements are clearly defined. However, when the task is unstructured, prototyping may be the better approach.
Which of the following large-scale conversion approaches to system implementation presents the greatest risk to an organization?
A. Parallel.
B. Direct.
C. Phase-in.
D. Pilot.
B. Direct
With direct changeover (direct cutover) conversion, the old system is shut down and the new one takes over processing at once. This may be the least expensive and time-consuming strategy, but it is the riskiest because the new system cannot be reverted to the original.
Cloud computing can best be defined as a model that
A. Is designed for rapid application deployment by making several virtual servers run on one physical host.
B. Allows users to access network resources from remote locations through a virtual private network
C. Streamline business processes onto a well-secured and highly available in-house e-commerce platform to optimize customers’ online experience
D. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure
D. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure
Cloud computing can be used for management and storage of both applications and data where all the software and data are stored via the Internet. It allows organizations to access services and applications that run on remote third-party hosts.
Ordinarily, the analysis tool for the systems analyst and steering committee to use in selecting the best system alternative is
A. Cost-benefit analysis
B. Pilot testing
C. User selection
D. Decision tree analysis
A. Cost-benefit analysis
Feasibility studies should include an analysis of the cost-benefit ratio of any system alternatives. In many cases, the best possible system may not be cost effective. Thus, once the decision makers have determined that two or more systems alternatives are acceptable, the cost-benefit analysis should be used to select the best system for a particular application.
