Chapter 13 Flashcards
Application Portfolio
Recommended applications that result from the planning and justification process in application development
IT Strategic Plan
long-term goals required to achieve the organization’s objectives
IT Steering Committee
A group of managers and staff decide on IT priorities and if technology meets the company’s needs
IS Operational Plan
lists projects, making sure they align with the IT strategic plan
IT Costs Downsides
Allocating Fixed Costs
Ongoing Costs
Unanticipated Costs
Long-Term Effects of Design Choices
IT Investment Benefits
Improved CRM/Decision Making
Used for Various Purposes
Benefits Realized when Implemented
Real-World Testing
Types of Conducting Cost-Benefit Analysis
Net Present Value (NPV)
Return on Investment (ROI)
Break-Even Analysis
Business Case Approach
Net Present Value (NPV)
A way to calculate whether the benefits of a project are worth more than its costs by comparing the current value of future benefits to the costs, using the company’s cost of funds
Return on Investment (ROI)
A measure of how well a company makes profits from its assets, calculated by dividing the net income by the average assets invested. A higher percentage means better performanc
Break-even analysis
Do benefits=investments
Business case approach
Involves writing a business case to justify funding for specific projects, describing current processes and how a new system can improve them
Application service provider (ASP)
Companies that gives businesses software and handles its setup, maintenance, and support for them
Software-as-a-service (SaaS)
Using a software online hosted by a company
Outsourcing in IT
Use of outside contractors or external organizations to acquire IT applications or services
Continuous application development
Process of steadily adding new computer code to a software project as the new code is written and tested
4 Fundamental Businesses Decisions for Acquiring IS
How much computer code to write?
How to pay for the application?
Where will the application run?
Where will the application originate?
Systems Development Life Cycle (SDLC)
A step-by-step process for planning, building, and managing big IT projects
Systems analysts
Analyze and design information systems