Information Systems Planning Quiz
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Questions and Answers

What is the primary deliverable from the initial part of the planning phase in identifying and selecting IS development projects?

  • A schedule of specific IS development projects (correct)
  • A list of potential project ideas
  • A feasibility study for each proposed project
  • A detailed budget for each project
  • What is the outcome of the project initiation and planning phase in relation to project selection?

  • Identifying all potential stakeholders for each project
  • Ensuring each project can help the organization reach its goals (correct)
  • Establishing a clear project scope and deliverables
  • Developing a detailed project charter for each project
  • What is the strategy known as "incremental commitment" in systems analysis and design?

  • A process of breaking down a large project into smaller, manageable phases
  • A method of prioritizing projects based on their potential return on investment
  • A project review process conducted after each phase to rejustify continuation (correct)
  • A way of ensuring that projects are adequately staffed and resourced
  • From where do information systems development projects originate?

    <p>From both top-down and bottom-up initiatives (C)</p> Signup and view all the answers

    What are the two critical steps an organization must take to benefit from a planning-based approach for selecting IS projects?

    <p>Analyzing its information needs and planning its projects (B)</p> Signup and view all the answers

    Which of the following is NOT a reason for the importance of improved planning in IS development?

    <p>Need for increased security and compliance regulations (D)</p> Signup and view all the answers

    What is the approximate percentage of organizational expense represented by information systems, as mentioned in the content?

    <p>40% (B)</p> Signup and view all the answers

    What is one of the problems highlighted in the content that often arises in organizations due to poor planning in IS development?

    <p>Too much data redundancy, lack of data quality (D)</p> Signup and view all the answers

    What is one primary benefit of top-down planning in information systems?

    <p>Improved integration across the organization (B)</p> Signup and view all the answers

    Which of the following best describes bottom-up planning?

    <p>It identifies projects based on specific operational issues. (D)</p> Signup and view all the answers

    What does functional decomposition aim to achieve in information systems planning?

    <p>Breaking down complex information into manageable parts (A)</p> Signup and view all the answers

    What is the primary purpose of IS planning matrices?

    <p>To describe relationships between organizational elements (C)</p> Signup and view all the answers

    Which approach to information systems planning might be more beneficial in a rapidly changing business environment?

    <p>Bottom-up planning for quick adaptations (B)</p> Signup and view all the answers

    What is a mission statement primarily aimed at defining?

    <p>The business activities of a company (C)</p> Signup and view all the answers

    Which component of corporate strategy expresses qualitative and quantitative goals?

    <p>Objective statement (B)</p> Signup and view all the answers

    What term is sometimes used interchangeably with objective statements?

    <p>Critical success factors (D)</p> Signup and view all the answers

    Which of the following is NOT a type of competitive strategy?

    <p>Market expansion (D)</p> Signup and view all the answers

    What is the main focus of corporate strategic planning?

    <p>Defining mission, objectives, and strategies (B)</p> Signup and view all the answers

    What is the primary goal of Information Systems Planning (ISP)?

    <p>To assess information needs and define support systems (C)</p> Signup and view all the answers

    How should ISP be aligned within an organization?

    <p>It must follow the organization’s mission, objectives, and competitive strategy (A)</p> Signup and view all the answers

    What does a competitive strategy aim to achieve?

    <p>Achieve the organization’s mission and objectives (D)</p> Signup and view all the answers

    What is the primary role of an Information System (IS) in an organization?

    <p>To transform the enterprise from its current to future state (C)</p> Signup and view all the answers

    What does the Short Term Plan component of the IS plan include?

    <p>A detailed inventory of current projects and plans for the current year (D)</p> Signup and view all the answers

    Which type of electronic commerce involves transactions between businesses and consumers?

    <p>Business-to-consumer (B2C) (A)</p> Signup and view all the answers

    What is one of the constraints on Information Systems development?

    <p>Limitations imposed by technology and current resources (C)</p> Signup and view all the answers

    What does Electronic Data Interchange (EDI) enable in business transactions?

    <p>Direct transfer of business documents between organizations (D)</p> Signup and view all the answers

    What is the definition of Electronic Commerce (EC)?

    <p>Internet-based communication to support business activities (D)</p> Signup and view all the answers

    In IS planning, what is meant by the term 'Systems Needs'?

    <p>Long-term strategies to address overall information systems needs (A)</p> Signup and view all the answers

    Which mode of electronic commerce includes sales and transactions between businesses and their employees?

    <p>Business-to-employee (B2E) (B)</p> Signup and view all the answers

    Which of the following planning matrices focuses on identifying the relationships between business processes and the data they utilize?

    <p>Process-to-Data (C)</p> Signup and view all the answers

    What is the primary purpose of affinity clustering when applied to planning matrices?

    <p>Grouping related information together to reveal patterns and relationships (C)</p> Signup and view all the answers

    Which of the following is NOT considered an advantage of using CASE tools during information systems planning?

    <p>Creating detailed system specifications for individual projects (D)</p> Signup and view all the answers

    What is the significance of developing both "as-is" and "to-be" planning matrices?

    <p>To understand the current state of operations and plan for future improvements (C)</p> Signup and view all the answers

    How does an information systems plan typically relate to systems development projects?

    <p>It provides a roadmap for the selection and development of projects (D)</p> Signup and view all the answers

    What is the main purpose of the "Information Inventory" component of an IS plan?

    <p>To summarize the processes, functions, data entities, and information requirements of the organization (D)</p> Signup and view all the answers

    Which of the following best describes the relationship between an information systems plan and an organization's mission, objectives, and strategy?

    <p>The IS plan should support and contribute to the organization's mission, objectives, and strategy (D)</p> Signup and view all the answers

    Which of the following options is NOT a direct benefit of utilizing planning matrices during the information systems planning process?

    <p>Defining the technical requirements for specific software applications (C)</p> Signup and view all the answers

    What are the three primary steps involved in identifying and selecting IS development projects?

    <p>Identifying potential development projects, Classifying and ranking IS development projects, Selecting IS development projects (A)</p> Signup and view all the answers

    Which of the following is NOT a source of project identification?

    <p>Process mapping (A)</p> Signup and view all the answers

    What is the primary reason why different stakeholder groups bring a unique perspective to the IS decision-making process?

    <p>Each group has different priorities and goals (A)</p> Signup and view all the answers

    Which describes the most common way projects are initiated from a bottom-up perspective?

    <p>Individual departments or business units suggest projects based on their needs or opportunities (C)</p> Signup and view all the answers

    What is the role of a steering committee in identifying and selecting IS development projects?

    <p>To oversee and guide the IS development process from beginning to end (A)</p> Signup and view all the answers

    What distinguishes top-down project identification from bottom-up project identification?

    <p>The source of the project idea: Top-down projects originate from top management or a steering committee, while bottom-up projects originate from individual departments or business units. (B)</p> Signup and view all the answers

    What is the primary purpose of classifying and ranking IS development projects?

    <p>To prioritize projects based on their potential impact and urgency (B)</p> Signup and view all the answers

    Why is it important to consider the impact of IS development projects on various stakeholder groups?

    <p>To ensure that the new systems meet the needs of all users (D)</p> Signup and view all the answers

    Flashcards

    Corporate Strategic Planning

    An ongoing process defining an organization's mission, objectives, and strategies.

    Mission Statement

    A statement that clarifies the business a company is in.

    Objective Statement

    Statements expressing qualitative and quantitative goals for desired future positions.

    Critical Success Factors

    Another term for objective statements, highlighting essential areas for success.

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    Competitive Strategy

    The method an organization uses to achieve its mission and objectives.

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    Low-Cost Producer

    A type of competitive strategy focusing on being the lowest cost provider in the market.

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    Product Differentiation

    A competitive strategy where a firm distinguishes its products to gain a market edge.

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    Information Systems Planning (ISP)

    A method to assess organization’s information needs and define necessary systems and technologies.

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    Project Identification Process

    The series of steps to recognize potential projects for development.

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    Three Main Steps in Project Selection

    Identifying potential projects, classifying/ranking them, and selecting ones to develop.

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    Stakeholder Groups

    Groups with varied perspectives and motivations contributing to project identification.

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    Top-Down Source

    Projects identified by top management or a steering committee.

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    Bottom-Up Source

    Project initiatives originating from managers, business units, or development teams.

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    IS Development Projects

    Information systems projects designed to improve or create systems.

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    Classifying and Ranking Projects

    The process of organizing potential projects based on criteria like importance.

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    Weighted Multicriteria Analysis

    A method to assess and prioritize alternative IS projects based on multiple criteria.

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    Primary Deliverable

    The main output from the planning phase, typically a schedule of specific IS development projects.

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    Incremental Commitment

    A strategy where projects are reviewed after each phase to justify continuation.

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    Top-Down Initiatives

    IS projects that originate from higher management and are directed downwards.

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    Bottom-Up Initiatives

    IS projects that arise from lower levels of the organization, suggesting needs to management.

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    Information Needs Analysis

    A thorough examination of the organization's data requirements.

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    Improved Planning Importance

    Key reasons include high information system costs and poor cross-application.

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    High System Maintenance Costs

    Significant expenses incurred from maintaining existing information systems.

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    Top-down planning

    An approach that assesses overall organizational information system needs.

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    Bottom-up planning

    Identifies IS projects based on specific operational problems or opportunities.

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    Functional Decomposition

    Breaking down high-level information into smaller, detailed parts.

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    IS Planning Matrices

    Tools that illustrate relationships between various organizational elements.

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    Parallel activities in planning

    Simultaneous strategic planning for both corporate and information systems.

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    Types of Planning Matrices

    Matrices that connect various elements in IS planning, including location, function, and data.

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    Information Systems Planning

    The process of identifying and selecting projects before they are implemented, analyzing current and future needs.

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    As-is vs To-be Matrices

    As-is matrices show current functions, while to-be matrices illustrate future objectives and targets.

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    CASE Tools

    Computer-Aided Software Engineering tools that help in managing information, constructing, and analyzing matrices.

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    Affinity Clustering

    Arranging matrix information to group related items together based on shared characteristics.

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    Function-to-Data Entity Matrix

    A matrix that aligns functions with the data entities they utilize.

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    IS Plan Components

    Key elements of an IS plan include the organization’s mission, objectives, strategy, and information inventory.

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    Information Inventory

    A summarized list of processes, functions, and data entities crucial for the enterprise's information needs.

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    IS Mission and Objectives

    The role of information systems to transform an organization from its current to its future state.

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    IS Development Constraints

    Limitations due to technology and available resources like finance and personnel.

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    Systems Needs and IS Strategy

    Summarizes the information systems needs and establishes long-term strategies for addressing them.

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    Short Term Plan

    A detailed inventory of current projects and systems for the current year.

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    Unknown Events in Planning

    Potential unforeseen circumstances that could impact an IS plan.

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    Business-to-Consumer (B2C)

    E-commerce transactions that occur between businesses and consumers.

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    Electronic Data Interchange (EDI)

    The use of telecommunications to transfer business documents directly between organizations.

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    Electronic Commerce (EC)

    Internet-based communication that supports daily business activities.

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    Study Notes

    Modern Systems Analysis and Design

    • This is the eighth edition, global edition of the book
    • It's authored by Joseph S. Valacich and Joey F. George
    • The chapter is about Identifying and Selecting Systems Development Projects

    Learning Objectives

    • Describes the project identification and selection process
    • Describes corporate strategic planning and information systems planning
    • Describes three classes of Internet electronic commerce applications: business-to-consumer, business-to-employee, and business-to-business

    Identifying and Selecting Systems Development Projects

    • Systems development life cycle with project identification and selection highlighted
    • Three main steps:
      • Identifying potential development projects
      • Classifying and ranking IS development projects
      • Selecting IS development projects

    The Process of Identifying and Selecting IS Development Projects

    • Identifying potential development projects:
      • Identification from a stakeholder group. Each stakeholder group brings their own perspective and motivation to the IS decision.
    • Top-down source projects are identified by top management or a steering committee
    • Bottom-up source projects are initiatives stemming from managers, business units, or the development group
    • The process varies substantially across organizations

    Classifying and Ranking IS Development Projects

    • Using value chain analysis or other evaluation criteria
    • Value chain analysis: Analyzing an organization's activities to determine where value is added to products and/or services, the costs incurred, and comparing with other organizations to make improvements

    The Process of Identifying & Selecting IS Development Projects (Cont.)

    • Selecting IS development projects
      • Based on various factors
      • Both short- and long-term projects are considered
      • Most likely to achieve business objectives are selected
      • A very important and ongoing activity

    The Process of Identifying & Selecting IS Development Projects (Cont.)

    • Factors in project selection:
      • Perceived and real needs
      • Existing and available resources
      • List of potential and ongoing projects
      • Current organizational environment
      • Evaluation criteria
      • Decision outcomes (accept, reject, delay, etc.)
      • Project selection decisions require multiple factors influencing various decision outcomes

    The Process of Identifying & Selecting IS Development Projects (Cont.)

    • Deciding among different projects or alternative designs:
      • Score = weight x rating for each requirement/constraint
      • Sum scores across requirements/constraints for each alternative
      • Alternative with the highest score wins

    The Process of Identifying & Selecting IS Development Projects (Cont.)

    • Table showing example project criteria with weights assigned and scores for alternatives
    • Figure illustrating the decision process for selecting IS initiatives based on factors like requirements, constraints and considerations.

    Deliverables & Outcomes

    • The primary deliverable from the first part of the planning phase is a schedule of specific IS development projects
    • The outcome of the next part of the planning phase (initiation and planning) is assurance that careful consideration was given to project selection and each project can help the organization reach its goals

    Deliverables & Outcomes (Cont.)

    • Incremental commitment: a strategy in systems analysis and design where the project is reviewed following each phase. Continuation is rejustified
    • Sources of potential projects: top-down (top management, steering committee), bottom-up (user departments, development group)
    • Figure illustrating project flow; project identification and selection feed into project initiation and planning, leading to project scheduling

    Corporate and Information Systems Planning

    • To benefit, planning must analyze information needs and plan projects carefully

    Reasons for Importance of Improved Planning

    • Increasing costs of information systems (40% of organizational expense)
    • Lack of cross-organizational applications and systems
    • Systems not addressing critical strategic problems
    • Too much data redundancy and lack of data quality
    • High system maintenance costs
    • Long application backlogs

    Corporate Strategic Planning

    • An ongoing process defining an organization's mission, objectives, and strategies
    • Corporate strategy includes mission statement, objective statements, and descriptions of competitive strategy
    • Figure depicting steps of corporate strategic planning process: current enterprise, future enterprise, and strategic planning

    Corporate Strategic Planning (Cont.)

    • Mission statement: clear statement of the company's business
    • Example mission statement: Pine Valley Furniture
    • Objectives statement: series of statements expressing an organization's qualitative and quantitative goals for a desired future position (also known as "critical success factors")
    • Example statement of objectives: Pine Valley Furniture

    Corporate Strategic Planning (Cont.)

    • Competitive strategy: method by which an organization attempts to achieve its mission and objectives
    • Main strategies: low-cost producer, product differentiation, product focus or niche
    • Table illustrating generic competitive strategies

    Information Systems Planning (ISP)

    • An orderly means of assessing information needs and defining systems, databases, technologies to best meet those needs
    • ISP must be done according to the organization's mission, objectives, and competitive strategy
    • Parallel activities of corporate strategic planning and information systems planning

    Information Systems Planning (Cont.)

    • Top-down planning: gaining a broad understanding of information system needs for the entire organization
      • Offers: broader perspective, improved integration, improved management support, and better understanding

    Information Systems Planning (Cont.)

    • Bottom-up planning: identifying IS development projects based on solving specific operational problems or taking advantage of specific opportunities
      • Can be faster and less costly

    Information Systems Planning (Cont.)

    • Functional decomposition: breaking high-level abstract information into smaller units for detailed planning
    • IS planning matrices: describing relationships between pairs of organizational elements (location, function, business unit, objective, process, data, information system)
    • Example planning matrices: location-to-function, location-to-unit, unit-to-function, function-to-objective, function-to-process, function-to-data, entity, process-to-data entity, process-to information system, data entity- to information system, and Information system - to -objective

    Information Systems Planning (Cont.)

    • Data entity-to-function matrix (example: Pine Valley Furniture)
    • Table showing data entity-to-function relationships

    Making Sense of the Matrices

    • IS planning takes place prior to project identification and selection
    • "Behind the scenes" analysis
    • Matrices "as-is" and "to-be"
    • CASE tools help via managing information, matrix construction, matrix analysis (affinity clustering)

    Affinity Clustering

    • Arranging planning matrices so that clusters of information with a predetermined level or type of affinity are placed next to each other on the matrix reports
    • Affinity: extent to which the information holds things in common
    • Example: Function-to-Data entity matrix
      • Functions using similar data entities placed in adjacent rows
      • Data entities used in common by processes in adjacent columns.

    Information Systems (IS) Plan

    • Systems development projects can flow from the information systems plan, shown as interconnected project stages.

    IS Plan Components

    • Organizational Mission, Objectives, and Strategy: brief description of the organization's mission, objectives, and strategy
    • Information Inventory: summary of processes, functions, data entities, and information needs
    • Mission and Objectives of IS: primary role of IS in transforming the organization from a current to a future state
    • Constraints on IS Development: limitations imposed by technology, financial, technical, and personnel resources

    IS Plan Components (Cont.)

    • Systems Needs and IS Strategy: summarizing information systems needs and setting long-term strategies to address them
    • Short-term plan: detailed inventory of current projects, systems, and a detailed plan for the current year

    IS Plan Components (Cont.)

    • Conclusions: unknown but likely events that can affect the plan, and presently known business elements and impacts on the plan

    Electronic Commerce: Identifying and Selecting Projects

    • Figure illustrating three possible electronic commerce modes: Business-to-Consumer (B2C), Business-to-Business (B2B), Business-to-Employee (B2E)

    Electronic Commerce Applications and Internet Basics (Cont.)

    • Business-to-consumer (B2C): electronic commerce between businesses and consumers
    • Business-to-business (B2B): electronic commerce between business partners (e.g., suppliers, intermediaries)
    • Business-to-employee (B2E): electronic commerce between businesses and their employees

    Electronic Commerce Applications and Internet Basics

    • Internet: large worldwide network of networks communicating using common protocols
    • Electronic Commerce (EC): Internet-based communication supporting daily business activities
    • Electronic Data Interchange (EDI): use of communication technologies to transfer business documents between organizations

    Electronic Commerce Applications and Internet Basics (Cont.)

    • Factors to consider when designing and building Internet applications (Table)
      • Users: who is the user, expertise, expectations
      • Connection speed: speed, display capability
      • Access methods: method of accessing network, such as web browsers, mobile devices

    Summary

    • Chapter summary describing the learned topic of project identification and selection, corporate strategic and information systems planning, and electronic commerce classification

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    Description

    Test your knowledge on the key concepts related to the planning phase in information systems development. This quiz covers various aspects including project initiation, planning strategies, and the importance of improved planning in IS development. Perfect for students and professionals looking to enhance their understanding of project selection and management.

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