IT Strategic Planning Overview

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Questions and Answers

What is the primary task involved in the systems investigation process?

Programming the application

Gathering user requirements

Designing the system

Conducting a feasibility study (correct)

What is the main deliverable of the systems analysis stage?

User feedback report

Completed software code

A set of system requirements (correct)

System design specifications

Which of the following best describes the programming and testing process?

Implementing new features in the existing system

The stage where high-level requirements are gathered

Translating design into code and checking for errors (correct)

Drafting technical specifications for the system

What major conversion strategy involves gradually switching from the old system to the new one?

Phased strategy Signup and view all the answers

In the context of alternative development methods, what does JAD stand for?

Joint Application Design Signup and view all the answers

Which development methodology emphasizes rapid iterations and user involvement?

Agile development Signup and view all the answers

What is a key characteristic of end-user development?

Users develop applications independently Signup and view all the answers

What does integrated computer-aided software engineering (ICASE) combine?

Upper and lower CASE tools Signup and view all the answers

What approach defines a list of user requirements and evolves through iterative feedback?

Prototyping approach Signup and view all the answers

Which aspect of object-oriented development is emphasized?

Identifying real-world entities as objects Signup and view all the answers

What does the net present value method in cost-benefit analysis evaluate?

The future values of benefits compared to their present-value equivalent Signup and view all the answers

How is Return on Investment (ROI) calculated?

Net income attributable to a project divided by average assets invested Signup and view all the answers

Which of the following options represents a fundamental aspect of break-even analysis?

The point where cumulative benefits equal the investment made Signup and view all the answers

What determines how much computer code a company decides to write?

The level of customization needed for the application Signup and view all the answers

When acquiring applications, how can companies choose to finance their decision?

By deciding to buy or lease prewritten or customized applications Signup and view all the answers

What is a critical decision regarding the platform for running a new application?

Selecting a cloud vendor or an on-premises solution Signup and view all the answers

What types of sources can applications originate from when considering prewritten options?

Open-source software or proprietary applications from vendors Signup and view all the answers

Why might a company choose to customize a prewritten application?

To better meet specific business needs without starting from scratch Signup and view all the answers

Study Notes

IT Strategic Planning Cost-Benefit Analysis

Net Present Value (NPV): Converts future benefits to present value using the organization's cost of funds. Compares present value of benefits to costs to determine if benefits exceed costs.
Return on Investment (ROI): Measures profitability of assets. Calculated as (Net Income / Average Assets Invested) * 100. Higher percentage indicates better performance.
Break-Even Analysis: Determines the point where cumulative benefits equal investment.
Business Case Approach: Developers justify funding for specific applications/projects.

Application Acquisition Decisions

Code Amount: Companies decide on pre-written, customized pre-written, or entirely custom applications.
Payment Method: Purchase or lease for pre-written/customized applications; internal funding for custom applications.
Application Location: Companies choose their own platform, or SaaS/ASP vendors.
Application Origin: Companies choose open-source or vendor applications (proprietary). Customizing, in-house development, or outsourcing options available.

Systems Development Life Cycle (SDLC)

Systems Investigation: Addresses business problem through feasibility study.
Systems Analysis: Examines the problem and existing system to determine new system requirements. Creates system requirements.
Systems Design: Describes how the system will solve the problem. Creates technical system specifications.
Programming & Testing: Translates design to code, tests for expected results and detects errors (bugs). Delivers the new application.
Implementation: Converts from old to new system using direct, pilot, phased, or parallel conversion strategies.
Operation & Maintenance: Includes debugging, updating, and adding new functions as needed.

Alternative Development Methods & Tools

Joint Application Design (JAD): Group-based method for collecting user requirements and designing systems.
Rapid Application Development (RAD): Combines JAD, prototyping, and ICASE tools for rapid, high-quality system development.
Agile Development: Delivers functionality in rapid, weekly iterations.
DevOps: Integrates IT development and user operations to keep users involved throughout development.
End-User Development: End-users develop their own applications with little or no IT assistance.
Design Thinking: Focuses on understanding user needs through empathy, defining the problem from user perspective, generating ideas/prototypes, then testing and refining based on feedback.
Prototyping: Defines user requirements, builds a system model, and iteratively improves based on feedback.
Integrated Computer-Aided Software Engineering (CASE): Combines upper (Systems investigation, analysis, design) and lower (programming, testing, operation, maintenance) CASE tools.
Component-Based Development: Uses standard, reusable components (e.g., shopping cart, authentication) to build applications.
Object-Oriented Development: Models real-world entities (objects) with properties and operations.

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Description

This quiz examines key concepts in IT strategic planning, focusing on cost-benefit analysis and application acquisition decisions. Topics include Net Present Value (NPV), Return on Investment (ROI), Break-Even Analysis, and the Business Case Approach. Test your knowledge on how organizations evaluate and implement IT projects effectively.