IS 401 CH. 9 (Terms) Flashcards
break-even point
the point in time at which dollar benefits offset dollar costs
users
are the people who will actually use the new system. The user typically provides information about the detailed functions and operations needed in the new system.
System Vision Document
a document to help define the scope of a new system.
There are three components to this document: the problem description, the anticipated business benefits, and the system capabilities.
Note the differences between the business benefits and the system capabilities. The business benefits focus on the financial benefit to the company. The system capabilities focus on the system itself. The benefits are achieved through the capabilities provided by the system.
business benefits
contains the results that the organization anticipates it will accrue from a new system. Business benefits are normally described in terms of the specific results that can change the financial statements, either by decreasing
costs or increasing revenues.
system capabilities
helps identify the size and complexity of the new system and the project that will be required.
cost/benefit analysis
process of comparing costs and benefits to see whether
investing in a new system will be beneficial
net present value (NPV)
the present value of dollar benefits and dollar costs of a
particular investment
(costs-benefits)
tangible benefit
a benefit that can be measured or estimated in terms of dollars
intangible benefit
a benefit that accrues to an organization but that can’t be measured quantitatively or estimated accurately good investment.
Examples of intangible benefits include: Increased levels of service (in ways that can’t be measured in dollars), Increased customer satisfaction (not measurable in dollars), Survival, Need to develop in-house expertise (such as a pilot program with new technology)
Examples of intangible costs include: Reduced employee morale, Lost productivity (the organization may not be able to estimate it), Lost customers or sales (during some unknown period of time)
payback period
the time period after which the dollar benefits have offset the dollar costs
project iteration
schedule the list of iterations and use cases or user stories assigned to each iteration
detailed work schedule
the schedule that lists, organizes, and describes the
dependencies of the detailed work tasks
work breakdown structure (WBS)
the list or hierarchy of activities and tasks of a project; used to estimate the work to be done and to create a detailed work schedule
Gantt chart
a bar chart that portrays the schedule by the length of horizontal bars superimposed on a calendar
critical path
a sequence of tasks that can’t be delayed without causing the entire project to be delayed
