Chapter 2 – Analyzing the Business Case – Flashcards
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Many organizations assign responsibility for evaluating systems requests to a group called a. technical support group b. systems review committee c. systems analysts d. top managers
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b. systems review committee
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The final task in the preliminary investigation is to prepare a report to management that includes an evaluation of the systems request, an estimate of costs and benefits, and a ________ , which is a summary of the project request and a specific recommendation. a. project scope b. case for action c. business case d. total cost of ownership
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b. case for action
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Projects where management has a choice in implementing them are called voluntary projects. a. True b. False
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b. False
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The IT director usually serves as a technical consultant to ensure that members of the ________ are aware of crucial issues, problems, and opportunities. a. discretionary project b. preliminary investigation c. systems review committee d. business case
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c. systems review committee
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The ________ refers to the reasons, or justification, for a proposal. a. fishbone diagram b. project scope c. business case d. case for action
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c. business case
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A ________ looks beyond day-to-day activities and focuses on a horizon that is three, five, ten, or more years in the future. a. business case b. strategic plan c. SWOT analysis d. critical success factor
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b. strategic plan
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The term ________ refers to the reasons, or justification, for a proposal. a. business case b. strategic planning c. SWOT analysis d. critical success factor
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a. business case
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A(n) ________ is a hardware-based security control that can identify a person by a retina scan or by mapping a facial pattern. a. RFID b. encryption c. biometric device d. EPC
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c. biometric device
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________ inventory systems rely on computer-to-computer data exchange to minimize unnecessary inventory. a. EPC b. CRM c. RFID d. JIT
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d. JIT
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________ feasibility means that a proposed system will be used effectively after it has been developed. a. Technical b. Schedule c. Economic d. Operational
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d. Operational
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A system's ________ includes ongoing system support and maintenance costs, as well as acquisition costs. a. intangible cost b. total cost of ownership c. tangible cost d. constraint
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b. total cost of ownership
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A popular technique for investigating causes and effects is called a ________ . a. SWOT analysis b. Pareto chart c. fishbone diagram d. scatter diagram
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c. fishbone diagram
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The ________ is the primary method of obtaining information during the preliminary investigation. a. survey b. documentation review c. interview d. data analysis
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c. interview
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The ________ refers to the reasons, or justification, for a proposal. a. case for action b. fishbone diagram c. project scope d. business case
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d. business case
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The process of identifying long-term organizational goals, strategies, and resources is referred to as ________ . a. strategic planning b. SWOT analysis c. economic feasibility d. preliminary investigation
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a. strategic planning
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Strategic planning starts with a ________ that reflects the firm's vision, purpose, and values. a. case for action b. project scope c. mission statement d. business case
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c. mission statement
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________ are high-priority objectives that must be achieved to fulfill the company's mission. a. Cases for action b. Critical success factors c. Values d. Business cases
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b. Critical success factors
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The letters SWOT stand for strengths, weaknesses, ________ , and threats. a. offerings b. options c. opportunities d. objectives
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c. opportunities
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As a planning tool, some systems developers prefer to use a ________ because it is easy to display priorities and the relative importance of planning assumptions. a. Microsoft Word table b. text-based method c. CASE tool d. Microsoft Excel spreadsheet
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d. Microsoft Excel spreadsheet
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The most effective approach to IT project planning is to use a ________ to define and document the overall environment. a. Microsoft Word table b. text-based method c. CASE tool d. Microsoft Excel spreadsheet
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c. CASE tool
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Some companies still see the role of the ________ as a gatekeeper, responsible for screening and evaluating systems requests. a. consulting group b. IT department c. middle management team d. senior management team
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b. IT department
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________ are often aimed at improving service to customers or users within a company. a. Systems requests b. Constraints c. Findings d. Values
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a. Systems requests
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Some common security controls include various levels of user access, ________ , and passwords. a. XY charts b. CASE tools c. Pareto charts d. encryption
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d. encryption
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________ can identify a person by retina scan or by mapping a facial pattern. a. CASE tools b. Ishikawa diagrams c. Biometric devices d. Encryption
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c. Biometric devices
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________ include the strategic plan, top managers, user requests, information technology department, and existing systems and data. a. Nondiscretionary projects b. Internal factors c. External factors d. Discretionary projects
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b. Internal factors
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________ usually initiates large-scale projects because significant resources are required. a. IT management b. Middle management c. Top management d. Operations management
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c. Top management
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An example of an external factor that affects corporate IT choices is the ________ . a. strategic plan b. existing system and data c. IT department d. economy
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d. economy
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Some industry experts predict that bar code technology will be overshadowed in the future by ________ technology. a. just-in-time b. electronic product code c. electronic data interchange d. supply chain management
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b. electronic product code
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The purpose of a(n) ________ system is to provide the right products at the right place at the right time. a. RFID b. electronic product code c. electronic data interchange d. just-in-time
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d. just-in-time
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________ components can provide automated responses to sales inquiries, Web-based order processing, and online inventory tracking. a. CRM b. CASE c. EDI d. JIT
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a. CRM
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Using ________ , a supplier uses RFID tags on each crate, case, or shipping unit to create a digital shipping list. a. EPOD b. EPC c. EDI d. JIT
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a. EPOD
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Many organizations assign responsibility for evaluating systems requests to a group called the ________ . a. top managers b. technical support group c. systems review committee d. systems analysts
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c. systems review committee
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On a systems review committee, the ________ usually serves as a technical consultant to ensure that committee members are aware of crucial issues, problems, and opportunities. a. IT director b. business analyst c. database administrator d. systems analyst
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a. IT director
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A(n) ________ is a potential advantage of a committee approach to systems request evaluation. a. action on request delay b. member's bias c. internal political difference d. broad viewpoint
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d. broad viewpoint
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A ________ examines operational, technical, economic, and schedule factors. a. feasibility study b. constraint c. business case d. mission statement
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a. feasibility study
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________ feasibility means that a proposed system will be used effectively after it has been developed. a. Technical b. Schedule c. Economic d. Operational
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d. Operational
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An evaluation of whether or not the new system will result in a workforce reduction is part of ________ feasibility. a. economic b. schedule c. operational d. technical
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c. operational
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An assessment of whether or not a proposed platform has sufficient capacity for future needs is part of ________ feasibility. a. economic b. schedule c. operational d. technical
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d. technical
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The estimated costs for a new system are referred to as the ________ , which includes ongoing support and maintenance costs, as well as acquisition costs. a. JIT b. EPOD c. CRM d. TCO
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d. TCO
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________ can be measured in dollars and result from a decrease in expenses, an increase in revenues, or both. a. Tangible benefits b. Intangible costs c. Intangible benefits d. Tangible costs
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a. Tangible benefits
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A new scheduling system that reduces overtime is an example of a(n) ________ benefit. a. tangible b. nondiscretionary c. discretionary d. intangible
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a. tangible
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A user-friendly system that improves employee job satisfaction is an example of a(n) ________ benefit. a. tangible b. nondiscretionary c. discretionary d. intangible
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d. intangible
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The decision to appoint a project manager is a choice that relates to ________ feasibility. a. economic b. technical c. operational d. schedule
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d. schedule
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The first step in evaluating feasibility is ________ . a. to set priorities b. to identify nondiscretionary projects c. to identify discretionary projects d. to identify and weed out systems requests that are not feasible
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d. to identify and weed out systems requests that are not feasible
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Projects where management has a choice in implementing them are called ________ projects. a. nondiscretionary b. intangible c. tangible d. discretionary
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d. discretionary
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An example of a(n) ________ project is a system for the annual updates to payroll. a. tangible b. discretionary c. nondiscretionary d. intangible
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c. nondiscretionary
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The systems analyst conducts a ________ to study the systems request and recommend specific action. a. discretionary project b. preliminary investigation c. business case d. nondiscretionary project
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b. preliminary investigation
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When interacting with users, systems analysts should be careful in their use of the word ________ because it has a negative meaning. a. opportunity b. problem c. investigation d. dilemma
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b. problem
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A popular technique for investigating causes and effects is called a ________ . a. fishbone diagram b. XY chart c. Pareto chart d. scatter diagram
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a. fishbone diagram
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Defining the specific boundaries, or extent, of the project is referred to as determining the ________ . a. critical success factors b. project scope c. project creep d. constraints
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b. project scope
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In order to avoid ________ , the project scope should be defined as clearly as possible. a. intangible costs b. constraints c. project creep d. intangible benefits
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c. project creep
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A ________ , which is a requirement or condition that the system must satisfy or an outcome it must achieve, can involve hardware, software, time, policy, law or cost. a. critical success factor b. tangible cost c. business case d. constraint
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d. constraint
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The third step a systems analyst performs during a typical preliminary investigation is ________ . a. fact-finding b. technical feasibility c. strategic planning d. SWOT analysis
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a. fact-finding
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During the third step of the preliminary investigation, a systems analyst should obtain ________ to understand the functions and identify the people to interview. a. surveys b. fishbone diagrams c. systems documentation d. organization charts
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d. organization charts
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The ________ is the primary method of obtaining information during a preliminary investigation. a. survey b. operations observation c. documentation review d. interview
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d. interview
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A(n) ________ is not as flexible as a series of interviews, but it is less expensive, generally takes less time, and can involve a broad cross-section of people. a. operations observation b. data analysis c. documentation review d. survey
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d. survey
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A widely used tool for visualizing issues that need attention is the ________ , which is drawn as a vertical bar graph. a. fishbone diagram b. scatter diagram c. Pareto chart d. XY chart
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c. Pareto chart
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The XY chart, sometimes called a(n) ________ , is a problem-solving tool. a. Ishikawa diagram b. fishbone diagram c. scatter diagram d. Pareto chart
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c. scatter diagram
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If a systems analyst ________ during fact-finding, the results should be reviewed and key facts that will be useful in the feasibility analysis should be highlighted. a. conducted surveys b. conducted interviews c. observed current operations d. gathered cost and benefit data
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c. observed current operations
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If a systems analyst ________ during fact-finding, financial statements and impact statements should be prepared. a. conducted surveys b. conducted interviews c. observed current operations d. gathered cost and benefit data
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d. gathered cost and benefit data
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During the sixth step of the preliminary investigation, a systems analyst may recommend that the project proceed to the ________ phase. a. SWOT analysis b. systems implementation c. systems testing d. systems analysis
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d. systems analysis
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The final task in a preliminary investigation is to ________ . a. complete a survey for management b. select a data sample for management c. prepare a report to management d. complete interviews with management
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c. prepare a report to management
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The ________ is a section of the preliminary investigation report that includes a summary of the project results and a specific recommendation. a. case for action b. systems request summary c. mission statement d. business case
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a. case for action
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Can identify a person by retina scan or by mapping a facial pattern
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biometric device
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The reasons, or justification, for a proposal
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business case
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Summary of a project request and a specific recommendation
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case for action
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Group that is also known as a systems review committee
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computer resources committee
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Requirement or condition a system must satisfy or an outcome it must achieve
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constraint
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Must be achieved to fulfill a company's mission
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critical success factor
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Systems that integrate all customer-related events and transactions
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customer relationship management
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Projects where management has a choice in implementing them
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discretionary projects
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Means the projected benefits of a proposed system outweighs the estimated costs
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economic feasibility
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Technology that uses RFID tags to identify and monitor the movement of products
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electronic product code
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Security control that codes data to keep it safe from unauthorized users
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encryption
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Examines operational, technical, economic, and schedule factors
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feasibility study
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Analysis tool that represents possible causes of a problem as a graphical outline
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fishbone diagram
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Advantages that are difficult to measure in dollars but are important to a company
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intangible benefits
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Costs that are difficult to measure in dollars but are important to a company
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intangible costs
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Primary method of obtaining information during the preliminary investigation
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interview
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Analysis tool that is also referred to as a fishbone diagram
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Ishikawa diagram
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Reflects a firm's vision, purpose, and values
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mission statement
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Projects where management has no choice in implementing them
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nondiscretionary projects
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Means that a proposed system will be used effectively after it has been developed
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operational feasibility
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Widely used tool for visualizing issues that need attention
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Pareto chart
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Conducted to study a systems request and recommend a specific action
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preliminary investigation
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Process of projects expanding gradually without specific authorization
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project creep
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Defines the specific boundaries, or extent, of a project
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project scope
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Problem-solving tool that is sometimes referred to as a XY chart
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scatter diagram
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Means that a project can be implemented in an acceptable time frame
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schedule feasibility
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Process of identifying long-term organizational goals
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strategic planning
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Examines a firm's technical, human, and financial resources
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SWOT analysis
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Typically starts with a systems request
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systems development
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Formal way of asking for IT support and starting point for most projects
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systems request
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Group of key managers and users responsible for evaluating systems requests
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systems review committee
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Benefits that can be measured in dollars
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tangible benefits
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Costs that can usually be measured in dollars
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tangible costs
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Technical resources needed to develop, purchase, install, or operate a system
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technical feasibility
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Fact-finding form that users complete and return for tabulation
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user survey
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Important problem-solving tool that shows a correlation between variables
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xy chart
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The letters SWOT stand for strengths, weaknesses, options, and threats. a. True b. False
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b. False
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Stronger controls and reduced cost are two of the main reasons for systems requests. a. True b. False
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a. True
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Some industry experts predict that bar code technology will be overshadowed in the future by electronic product code (EPC) technology that uses RFID tags to identify and monitor the movement of each individual product, from the factory floor to the retail checkout counter. a. True b. False
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a. True
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Customer relationship management systems integrate all customer-related events and transactions, including marketing, sales, and customer service activities. a. True b. False
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a. True
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Many organizations assign responsibility for evaluating systems requests to a computer resources committee. a. True b. False
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a. True
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Economic feasibility means that the projected benefits of a proposed system outweigh the estimated costs. a. True b. False
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a. True
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Projects where management has a choice in implementing them are called voluntary projects. a. True b. False
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b. False
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Gathering data about project usability, cost, benefits, and schedules is the objective of fact-finding. a. True b. False
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a. True
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The XY chart, which is a problem-solving tool, is sometimes called a scatter diagram. a. True b. False
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a. True
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The first section of a typical preliminary investigation report is the case for action. a. True b. False
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b. False
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High-priority objectives that must be achieved to fulfill the company's mission are called _______.
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critical success factors
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The starting point for most projects is called a(n) _______ , which is a formal way of asking for IT support.
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systems request
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Some common security controls include passwords, various levels of user access, and _______, or coding data to keep it safe from unauthorized users.
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encryption
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A(n) _______ evaluates systems requests at most large companies.
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systems review committee
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When assessing _______ feasibility, a systems analyst must consider the interaction between time and costs.
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schedule
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The first step in evaluating _______ is to identify and weed out systems requests that are not achievable.
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feasibility
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A type of project where management has no choice in implementing it is referred to as a(n) _______ project.
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nondiscretionary
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An Ishikawa diagram, which is a popular technique for investigating causes and effects, is also called a(n) _______.
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fishbone diagram
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Systems analysts may use a(n) _______, which is a widely used tool for visualizing issues that need attention.
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Pareto chart
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The ______ section of a typical preliminary investigation report contains the results of the investigation, including a description of the project's scope, constraints, and feasibility.
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findings