CHAPTER 4 Flashcards
Incremental commitment
A strategy in systems analysis and design in which the project is reviewed after each phase, and continuation of the project is rejustified in each of these reviews.
Business case
A written report that outlines the justification for an information system. The report highlights economic benefits and costs and the technical and organizational feasibility of the proposed system.
Baseline project
plan (BPP)
One of the major outcomes and deliverables from the project initiation and planning phase. It contains the best estimate of the project’s scope, benefits, costs, risks, and resource requirements.
Economic feasibility
A process of identifying the
financial benefits and costs
associated with a development
project.
Tangible benefit
A benefit, derived from the
creation of an information
system, that can be measured in
dollars and with certainty.
Intangible benefit
A benefit derived from the creation of an information system, that cannot be easily measured in dollars or with certainty.
Tangible cost
A cost associated with an
information system that can be
easily measured in dollars and
with certainty.
Intangible cost
A cost associated with an
information system, that cannot
be easily measured in terms of
dollars or with certainty.
One-time cost
A cost associated with project
initiation and development, or
system start-up.
Recurring cost
A cost resulting from the ongoing
evolution and use of the system.
Time value of money
TVM
The process of comparing
present cash outlays to future
expected returns.
Discount rate
The interest rate used to compute
the present value of future cash
flows.
Present value
The current value of a future cash
flow.
Break-even analysis
A type of cost-benefit analysis to
identify at what point (if ever)
benefits equal costs.
Operational feasibility
The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.
