chAptEr 7

Question 1

List the ways to acquire a new system. COP

Answer 1

Custom development.
Purchase software package.
Outsource development

Question 2

List the pros of custom development.

Answer 2

Team flexibility & Creativity
Unique solutions created for strategic advantage
Get exactly what you want

Question 3

List the cons of custom development.

Answer 3

Money Costly.
Time costly.
Risk of project failure.

Question 4

List the pros of purchased software.

Answer 4

Cost saving
Time saving
Some customization may be possible

Question 5

List the cons of purchased software.

Answer 5

Requires system integration.
Reliance on vendor for maintenance.

Question 6

What are the risks associated with purchased software.

Answer 6

Performance
Fear of losing confidential information

Question 7

What is an ASP?

Answer 7

Its a provider that hosts someone else’s software on a pay-as-you-go basis.

Question 8

What is a SaaS?

Answer 8

A software vendor that hosts its own software.

Question 9

What is systems integration?

Answer 9

The process of building systems by combining packages, existing systems and custom software written for integration.

Question 10

List the pros of outsourced development.

Answer 10

Low risk
Time saving
Cost saving

Question 11

List the cons of outsourced development.

Answer 11

Reliance on vendor
Performance based on contract terms

Question 12

List the risks of outsourcing.

Answer 12

Losing confidential information
Losing learning opportunities

Question 13

List the types of outsourcing contracts.

Answer 13

Time and arrangements
Fixed-price
Value-added

Question 14

Study the Acquisition Strategy Selection Factors.

Answer 14

Ayt, bet.

Question 15

What is the request for proposal (RFP)?

Answer 15

A document seeking proposals from vendors to design and build a new IS.

Question 16

What is a request for Information (RFI)?

Answer 16

A shorter and less detailed version of an RFP.

Question 17

What is a request for quote (RFQ)?

Answer 17

An RFP to use when you just need a price.

Question 18

List the steps in developing an alternative matrix?

Answer 18

Combine many feasibility analyses into 1 matrix.
Include technical, economic and organizational feasibilities
Assign weights to indicate importance of criteria.
Assign scores to indicate how well alt meets criteria.