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Answers to End of Chapter Questions
1. Give three examples of business reasons for a system to be built.
(1). To maintain or improve the competitive position.
(2). To perform a business function more efficiently.
(3). To take advantage of a new business opportunity.
2. What is the purpose of an approval committee?
The approval committee generally serves as the decision making body regarding investments in information systems projects. This committee generally has a broad organizational representation, and therefore can avoid allocating resources that will serve only narrow organizational interests. The approval committee commonly has project oversight responsibilities as well as monitoring project performance after the project has been accepted.
3. Why should the system request be created by a businessperson as opposed to an IS professional?
Usually, the system request originates with a businessperson because the need for the system or system improvement is recognized in the business unit. It is unlikely the IS professionals in the organization will be able to recognize all the business needs and opportunities for systems and improvements in the business units since they are not involved directly in those areas. Also, the businessperson will have a much better idea of the value of the proposed system or improvement, and therefore is in a better position to create a meaningful system request.
4. What is the difference between intangible value and tangible value? Give three examples of each.
Tangible value represents the benefits from the system that are quantifiable and measurable. Intangible value represents benefits that are real, but are difficult to quantify and measure. Examples of tangible benefits might be increased sales, reduced operating costs, reduced interest costs. Examples of intangible value might include increased customer satisfaction, improved decision making, improved problem recognition. Note that
1. Give three examples of business reasons for a system to be built.
(1). To maintain or improve the competitive position.
(2). To perform a business function more efficiently.
(3). To take advantage of a new business opportunity.
2. What is the purpose of an approval committee?
The approval committee generally serves as the decision making body regarding investments in information systems projects. This committee generally has a broad organizational representation, and therefore can avoid allocating resources that will serve only narrow organizational interests. The approval committee commonly has project oversight responsibilities as well as monitoring project performance after the project has been accepted.
3. Why should the system request be created by a businessperson as opposed to an IS professional?
Usually, the system request originates with a businessperson because the need for the system or system improvement is recognized in the business unit. It is unlikely the IS professionals in the organization will be able to recognize all the business needs and opportunities for systems and improvements in the business units since they are not involved directly in those areas. Also, the businessperson will have a much better idea of the value of the proposed system or improvement, and therefore is in a better position to create a meaningful system request.
4. What is the difference between intangible value and tangible value? Give three examples of each.
Tangible value represents the benefits from the system that are quantifiable and measurable. Intangible value represents benefits that are real, but are difficult to quantify and measure. Examples of tangible benefits might be increased sales, reduced operating costs, reduced interest costs. Examples of intangible value might include increased customer satisfaction, improved decision making, improved problem recognition. Note that