Self-Study Guide

Self-Study Quiz: Multiple Choice

Chapter 15: Understanding the Business Value of Systems and Managing Change

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This activity contains 15 questions.

Many companies do not necessarily realize that some or all of the benefits of system projects accrue:

	directly to the consumer.
	to the middle managers.
	to shareholders.
	to society at large.

Information systems are considered:

	short-term capital investment projects.
	as a measure of cash flow.
	long-term capital investment projects.
	a means for lowering enterprise costs.

Transaction and clerical systems that displace labor and save space always produce more measurable, tangible benefits than management information systems, decision-support systems, or computer-supported collaborative work systems, which:

	allow a broader context of business analysis.
	give financial models an application bias.
	require a lower rate of technological change.
	mean that intangibles can be given monetary value.

Current savings in today's dollars are:

	not based on inflation.
	worth more than savings in future dollars.
	lower in risk.
	lower in potential benefits.

The formula: Payment * (1-(1 + Interest)^-n)/Interest) gives the:

	internal rate of return.
	present value.
	profitability index.
	net future value.

A weakness of the net present value is that it:

	provides no measure of profitability.
	cannot be used to rank several projects for comparison.
	ignores the disposal value of the computer systems.
	cannot calculate a profitability index.

The scoring model requires:

	real options pricing models.
	that the profitability index be low.
	the ability of managers to be flexible enough to make a small capital investment to create future opportunity.
	experts who understand the issues and the technology.

ROPM places a value on:

	information systems planning.
	budgetary reserves.
	management learning.
	return on investment.

For many organizations, it is easier to deal with visualizing and designing breakthrough changes to business processes than with:

	dealing with fear and anxiety in the organization.
	combining two information systems.
	systems designers.
	research requirements.

A new system can be made more user-friendly by:

	using formal planning tools.
	improving the end-user interface.
	an organizational impact analysis.
	allowing flexible changeover.

Historically, information systems design puts technical issues over:

	organizational concerns.
	operations.
	costs.
	goals.

Recent work on the implementation process stresses the need for:

	flexibility and improvisation.
	definition of prescribed roles.
	cooperation and training.
	defined responsibilities and training.

Communications problems between end users and designers are one reason why:

	users are driven out of the implementation process.
	so much user training is required.
	the implementation process requires written procedures.
	cost overruns are so large.

The level of project risk is influenced by:

	management cooperation, project size, and project costs.
	project structure, level of technical expertise of the project team, and project size.
	project timeline, project size, and end-user cooperation.
	project costs, level of technical expertise of the project team, and management cooperation.

The implementation process always involves:

	another project team.
	downsizing.
	organizational change.
	internal integration manipulation.

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