Chapter 13 Flashcards
(185 cards)
organizations must analyze the need for applications and then _________
justify each purchase in terms of costs and benefits.
need for information systems is usually related to __________ and __________
organizational planning and to the analysis of its performance vis-à-vis its competitors
What must the cost-benefit justification consider?
he wisdom of investing in a specific IT application versus spending the funds on alternative projects
def. application portfolio
The set of recommended applications resulting from the planning and justification process in application development
What does the planning process for new IT applications begin with?
an analysis of the organizational strategic plan
what does the organization’s strategic plan do?
identifies the firm’s overall mission, the goals that follow from that mission, and the broad steps required to reach these goals
what does the strategic planning process do?
modifies the organization’s objectives and resources to match its changing markets and opportunities
What provides the inputs in developing the IT strategic plan?
organizational strategic plan and the existing IT architecture
what does the IT architecture do? What does it encompass?
- delineates the way an organization should utilize its information resources to accomplish its mission
- encompasses both the technical and the managerial aspects of information resources
what does the technical aspects of IT structure include?
hardware and operating systems, networking, data management systems, and applications software.
what do the managerial aspects of IT architecture do?
specify:
- how the IT department will be managed,
- how the functional area managers will be involved,
- how IT decisions will be made.
def. IT strategic plan
A set of long-range goals that describe the IT infrastructure and major IT initiatives needed to achieve the goals of the organization
What three objectives must the IT strategic plan meet?
- It must be aligned with the organization’s strategic plan.
- -critical because org’s ISs must support the organization’s strategies - It must provide for an IT architecture that seamlessly networks users, applications, and databases.
- It must efficiently allocate IS development resources among competing projects so that the projects can be completed on time and within budget and still have the required functionality.
why is the existing architecture a necessary input into the IT strategic plan?
acts as a constraint on future development efforts
-not an absolute constraint
what is a critical component in developing and implementing the IT strategic plan?
IT steering committee
def. IT steering committee
committee, composed of a group of managers and staff representing various organizational units, set up to establish IT priorities and to ensure that the MIS function is meeting the needs of the enterprise.
why is th IT steering committee important to you?
because it ensures that you get the information systems and applications that you need to do your job
what happens after a company has agreed on an IT strategic plan?
develops IS operational plan
def. IS operational plan
A clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan.
Describe the elements of a typical IS operational plan? (6)
- Mission: The mission of the IS function (derived from the IT strategy).
- IS environment: A summary of the information needs of the individual functional areas and of the organization as a whole.
- Objectives of the IS function: The best current estimate of the goals of the IS function.
- Constraints on the IS function: Technological, financial, personnel, and other resource limitations on the IS function.
- The application portfolio: A prioritized inventory of present applications and a detailed plan of projects to be developed or continued during the current year.
- Resource allocation and project management: A listing of who is going to do what, how, and when.
What is the first step in the acquisition process? Why?
Developing an IT plan
-Because all companies have limited resources, they must justify investing resources in some areas, including IT, rather than in others
What does justifying IT investment involve?
calculating the costs, assessing the benefits (values), and comparing the two
ie. Cost-benefit analysis
Wha is one of the major challenges companies face regarding IT and costs?
allocate fixed costs among different IT projects
def. fixed costs
costs that remain the same regardless of any change in the company’s activity level.