Module 9 Flashcards
What is the justification for the implementation of IT applications?
The need for information systems is usually related to organizational planning and to the analysis of the organization’s performance vis-à-vis its competitors
What is the cost-benefit justification of IT applications?
It must determine whether investing in a specific IT application is preferable to spending the funds on alternative projects
What is the strategic plan of IT?
It is a set of long-range goals that describe the IT infrastructure and identify the major IT initiatives needed to achieve the organization’s goals
What are the 3 main objectives of IT strategic plans?
Be part of the organization’s strategic plan
Provide an overall IT architecture that seamlessly networks users, applications, and databases
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
What fundamental business decisions must companies make for acquiring IT applications?
How much computer code does the company want to write?
How will the company pay for the application
Where will the application run?
Where will the application originate?
What are the strategies for acquiring IT applications?
Purchase a prewritten application
Customize a prewritten application
Lease the application
Use application service providers and software-as-a-service vendors
Use outsourcing
Use continuous development
Use custom development
What is the SDLC?
It is a structured framework that consists of sequential processes
What are the sequential processes of SDLC?
Systems investigation
Systems analysis
Systems design
Programming and testing
Implementation
Operation and maintenance
What are the alternative methods and tools for systems development?
Joint application design (JAD)
Rapid application development (RAD)
Agile development
End-user development
What is one critical component in developing and implementing the IT strategic plan?
The IT steering comittee
What is the IT committee’s major tasks?
To link corporate strategy with IT strategy
To approve the allocation of resources for the MIS function
To establish performance measures for the MIS function
Ensure that the performance standards are met
What is the IS operational plan?
The IS operational plan consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan
What are the main elements that a typical IS operational plan contain?
Mission
IT environment
Objectives of the IT function
Constraints of the IT function
Application portfolio
Resource allocation and project management
What does justifying IT investment involve?
Assessing the costs (fixed costs, future costs)
Assessing the benefits
Intangible benefits
Comparing the two
What are the four common approaches of conducting the cost-benefit analysis?
Net present value (NPV)
Return on investment (ROI)
Breakeven analysis
Business case approache