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Massey Subjects > Topic 2.2 AIS And Development Strategies > Flashcards

Topic 2.2 AIS And Development Strategies Flashcards

1
Q

How to obtain an AIS?

A

Purchasing
Developing
Outsource to outside organisation

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2
Q

What does purchasing an AIS involve?

A
  • select a vendor
  • request for proposal that meet needs
  • evaluate proposals
  • make a final selection
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3
Q

What are the types of software you can purchase?

A
  • Off the shelf or canned software
  • turnkey system
    • hardware and software sold as a package
  • application service provider
    • MYOB, XERO
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4
Q

Developing software in house risk and advantages

A

Advantages
- Can make it to meet all the needs you require. Provides a significant competitive advantage

Risks

 - requires a lot of time
 - complexity of the system
 - insufficient planning
 - lack of qualified staff
 - poor top management support
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5
Q

What is end user computing?

A

Refers to a system that non programmers can create working applications

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6
Q

What are the advantages and disadvantages of end user computing

A

Advantages

  • more likely to meet user needs
  • saves time
  • frees up system resources
  • easy to use and understand

Disadvantages

  • lack of testing of application and possible calculation errors
  • inefficient systems
  • poorly controlled
  • poorly documented
  • duplication of data
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7
Q

What does outsourcing the system mean

A

Hiring outside firm to manage all or part of the data processing requirements

Started with applications such as payroll

Now whole accounting systems e.g smaller firms adopt applications like Xero

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8
Q

What are outsourcing advantages And disadvantages

A

Advantages

  • allows companies to concentrate on core competencies
  • improve asset utilisation
  • access to greater expertise and better technology
  • less development time
  • facilitates down sizing

Disadvantages

  • inflexibility
  • loss of control
  • locked in system
  • poor service
  • increased risk
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9
Q

What are the 3 types of methods to develop an AIS

A

Business process management

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10
Q

What are the four major components of business process management systems

A
  • process engine to model and execute applications and business rules
  • business analytics to identify issues, trends and opportunities
  • collaboration tools to remove communication barriers
  • content manager to store electronic electronic documents and images
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11
Q

Internal controls in BPMS

A
  • BPMS uses an organisation’s business process rules to determine the correct person to preform a task and authorise that person to preform it
  • separation of duties can also be improved
  • reduces delays and costs by instantaneously transferring items needing approval to a manager
  • built in audit trail.
  • BPMS uses a proactive process management approach
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12
Q

Steps of Prototyping

A

A simplified model is developed

  • identify basic requirements
  • develop an initial prototype
  • repeated iterations
  • use the system
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13
Q

What are the advantages and disadvantages of prototyping

A

Advantages

  • results in well defined user needs
  • higher user satisfaction and involvement
  • faster development
  • fewer errors
  • opportunities to suggest change
  • less costly

Disadvantages

  • requires significant user time
  • resource efficiency may not be achieved
  • inadequate testing and documentation
  • negative behavioural reactions
  • continuous development
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14
Q

What is CASE

A

Computer aided software engineering

Software to help plan, analysis, design, program, and maintain an information system

  • strategic planning
  • project and system management
  • database design
  • screen and report layout
  • automatic code generation
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15
Q

What are the advantages and disadvantages of CASE

A

Advantages

  • improved productivity
  • improved program quality
  • cost savings
  • improved control procedures
  • simplified documentation

Disadvantages

  • Unmet expectations
  • incompatibility with other systems
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16
Q

When a systems vendor provides both the software and hardware needed to run a system as a package, this is known as

A

A turnkey system

17
Q

Although Gillette uses canned software in its business operations, it does so with the intention of creating a competitive advantage. Identify how Gillette aims to gain a greater competitive advantage from using canned software.

A

From decided how the system should be used

18
Q

Firms should consider developing custom software only if

A

it will contribute to development of a significant competitive advantage.

19
Q

Why might outsourcing cause employee resistance?

A

Outsourcing often facilitates downsizing.

20
Q

Identify a key advantage of a business process management system (BPMS) as compared to an event-based system.

A

Built in audit trail

21
Q

Carmie Iria, the director of a systems project committee, has received management approval for the implementation of a new accounting information system. After sending out an RFP to multiple vendors, the committee settled on purchasing a system from Sysys, a vendor who will provide a standard software package and post-sale technical support. Carmie’s committee has decided to go with

A

Canned software

22
Q

When a request for proposal (RFP) is solicited based on ________, total costs are usually lower and less time is required for vendor preparation and company evaluation.

A

exact hardware and software specifications

23
Q

What is a drawback to using the requirement costing method of software and hardware evaluation?

A

Intangible factors such as reliability and vendor support are overlooked.

24
Q

Identify the system below that end users should not be allowed to develop.

A

A payroll processing program.

25
Q

Why are end-user created systems often poorly documented?

A

Users often consider systems documentation to be unimportant.

26
Q

Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets, or approximately 25% of its locations. Sabella needs to reduce the costs of operating the firm’s information systems. To accomplish this, Sabella might decide to

A

outsource system operations.

27
Q

A process that embraces customers frequently changing their minds about what they need or want and with the focus on flexibility, responding to new requirements, adapting to evolving changes in technology, and quickly delivering a system the customer can evaluate is called

A

Scrum development

28
Q

Types of cloud computing service

A

Infrastructure as a service
- buying time on computing hardware or storage

Software as a service
-use a complete application running on someone else’s system

Platform as a service
- develop applications using web based tools so they run on systems software and hardware provided by another company

29
Q

Benefits of cloud computing

A

Availability

- access from anywhere as long as you have internet access
 - providers maintain the backups. They are experts in storage

Cost effective

 - no need to buy expensive hardware
 - if software is provided updates are made automatically 
 - monthly fee makes IT cost ps an expense rather than a capital expenditure item

Scalability

 - ability of a computer application to function well when it’s changed in size and volume 
 - MYOB different products for different sized organisations
30
Q

Risks of cloud based computing

A

Loss of service - provider going out of business or running foul of the law and being closed down

Security breach - unauthorised access by other cloud customers who may include competitors. Lack of control contractors

Denial of service attacks on the cloud computing provider

Compliance issues e.g where records are kept

Obscurity - vendors not transparent

31
Q

Cloud computing codes of practice

A

Improve the standard of services being provided by cloud computing

Set a standard of disclosure within the industry

Create openness between providers and customers

Massey Subjects (12 decks)

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