Deck 13: Choices in Systems Acquisition

Question 1

Innovative ISs,especially those intended to give their owners a competitive advantage,should not be outsourced.

Answer 1

True

Question 2

In recent years,enterprise applications have constituted a far larger part of IT expenditures on packaged software.

Answer 2

True

Question 3

The pace of developments in IT might require less expertise within many organizations.

Answer 3

False

Question 4

Customization of large applications is inexpensive and nearly risk-free.

Question 5

In-house development teams can usually complete a new application project in less time than an IT vendor can.

Question 6

Vendor selection criteria include functionality,architectural fit,price,services,and support.

Question 7

If the cost-accounting procedures of a particular company are so specific that no commercially available software can perform them,the company must develop ____,or tailored,software.

A) own-interface
B) similar
C) custom-designed
D) adapted

Question 8

There is a peculiar-and paradoxical-aspect to IT outsourcing: while contracts are signed for long periods of time,they typically involve rapidly changing technologies.

Question 9

Offshoring has caused layoffs of programmers in Western countries and created much bitterness among those professionals and supporters of local labor.

Question 10

In the IT arena,outsourcing has three meanings.

Question 11

The greatest advantage of tailored applications is their low cost.

Question 12

An ASP installs software on a client's computers.

Question 13

There are generally four alternatives to in-house development: ____,licensing,using software as a service (SaaS),and having users develop the system.

A) outsourcing
B) resourcing
C) tracking
D) supplying

Question 14

Outsourcing is a concept that might encompass more than just commissioning the development of an application.

Question 15

If ____ do not offer the desired IS and it can be developed by non-IT employees,then this would usually be the chosen alternative.

A) ISPs
B) ASPs
C) WISPs
D) programmers

Question 16

Companies that are growing fast and rely on software for deployment of their operations often hire the services of ASPs.

Question 17

Authorities usually deal with unauthorized use of computers as theft.

Question 18

There are conditions under which organizations should avoid outsourcing.

Question 19

Since no provider can guarantee 100 percent uptime,ASPs routinely promise 90 percent uptime.

Question 20

Interfacing user-developed applications with other organizational systems should be discouraged.

Question 21

In-house IS salaries and benefits and expensive capital expenditures for items such as ____ tools are paid whether or not the IS staff is productive.

A) programming
B) CASE (computer-aided software engineering)
C) LCD monitors
D) 2GL

Question 22

Contracts for ____ software development might also be incompatible with some development methods,such as agile methods.

A) licensed
B) open source
C) rented
D) outsourced

Question 23

The "____" approach seems to be attracting a growing clientele of mainly small and medium corporations,but some large ones also prefer this option.

A) software on demand
B) software part-time
C) software full-time
D) office on demand

Question 24

Professional IS firms often pay discounted prices for ____ tools and other resources,based on volume purchases; they can pass these savings on to their clients.

A) CASE (computer-aided software engineering)
B) CAD (computer-aided design)
C) CAM (computer-aided manufacturing)
D) 2GL

Question 25

The project management team prepares a ____,a document specifying all the system requirements and soliciting a proposal from each vendor contacted.

A) request for comments (RFC)
B) request for quotation (RFQ)
C) request for proposal (RFP)
D) request for information (RFI)

Question 26

An important downside is that ____ software is less likely to be compatible with other organizations' systems.

A) licensed
B) open-source
C) purchased
D) custom-designed

Question 27

Risks of outsourcing are higher at ____ of decision making.

A) lower levels
B) the accounting level
C) higher levels
D) the network management level

Question 28

Many companies find that they must have packaged software such as ERP and ____ applications modified to meet their specific needs.

A) spreadsheet
B) word processing
C) SCM
D) DBMS

Question 29

Clients should not expect vendors to list the service level and ____; the clients must do it.

A) measurements
B) metrics
C) degrees
D) quality

Question 30

The project manager sends a ____ to the vendors identified,requesting general,somewhat informal information about a product.

A) request for proposal (RFP)
B) request for quotation (RFQ)
C) request for comments (RFC)
D) request for information (RFI)

Question 31

____ allows clients to tap into one of the greatest assets of an IT vendor: experience gained through work with many clients in different environments.

A) Licensing
B) In-house development
C) Outsourcing
D) Open source

Question 32

____ software is developed for the widest common denominator of potential user organizations.

A) Commissioned
B) Outsourced
C) In-house developed
D) Ready-made

Question 33

Outsourcing ____ or core business ISs incurs more risk than outsourcing the routine tasks of operational ISs.

A) financial
B) customer
C) databases
D) strategic

Question 34

Among the largest IT service providers are ____,EDS,Accenture,Computer Sciences Corp.(CSC),Unisys,First Data,AT&T,Capgemini,Perot Systems,and Hewlett-Packard.

A) Microsoft
B) IBM
C) Dell
D) Compaq

Question 35

Experts recommend that organizations look for ASPs that can guarantee ____ uptime-for critical applications.

A) three nines- 99.9 percent
B) four nines- 99.99 percent
C) five nines- 99.999 percent
D) six nines- 99.9999 percent

Question 36

____ software applications include ERP,SCM,and CRM applications and typically cost millions of dollars.

A) Large
B) Basic
C) Inventory
D) Project

Question 37

When ____ a software package,the buyer gains several benefits: immediate system availability,high quality,low price (license fee),and available support.

A) outsourcing
B) licensing
C) commissioning
D) developing

Question 38

IT companies that made their reputation by providing hardware and software,such as ____ and Unisys,have seen the revenue from the outsourcing service portion of their business grow faster than the revenue from hardware and software sales.

A) Microsoft
B) Adobe
C) IBM
D) Dell

Question 39

Any service that is not included in a(n)____,or is mentioned only in general terms,leaves the door open for the vendor not to render it,or not to render it to a level expected by the client.

A) contract
B) roster
C) agenda
D) mission statement

Question 40

____ allows a client to know exactly what the cost of its IS functions will be over the period of the contract,which is usually several years.

A) Outsourcing
B) In-house development
C) Customization
D) Adaptation

Question 41

Before finalizing the purchasing decision,the system should be tested using ____________________,which is comparing actual performance against specific quantifiable criteria.

Question 42

____ software closely conforms to an individual unit's subculture,which makes the transition to a new system easier for employees.

A) User-developed
B) Commissioned
C) Licensed
D) In-house

Question 43

If non-IT employees cannot develop an IS,the choice might then be to ____________________ the development of the IS.

Question 44

Some clients prefer to use a leased line rather than the ____________________ to connect to an ASP.

Question 45

To ensure compatibility with other applications within an organization,the organization's IT professionals should adopt and supply ____ tools to interested users.

A) in-house development
B) licensed development
C) commissioned development
D) standard development

Question 46

____________________ in general means hiring the services of another organization or individual to perform some of the work that otherwise would be performed by you or your employees.

Question 47

Outsourcing allows a client to know exactly what the cost of its IS functions will be over the period of the contract,which is usually several years.This allows for better ____________________ planning.

Question 48

The most important element of an outsourcing agreement for both parties,but mostly for the client,is what professionals call the ____________________.

Question 49

When a business outsources only routine business processes,such as customer order entry or human resource transactions,the practice is sometimes called ____________________.

Question 50

Lack of ____________________ makes system maintenance difficult at best and impossible at worst.

Question 51

Studies show that saving ____________________ is not the most common reason for outsourcing.

Question 52

An organization that offers the use of software through communication lines is called a(n)____________________.

Question 53

____ free IS staff to develop and maintain an organization's more complex and sophisticated systems.

A) In-house-developers
B) Commissioned software
C) User-developers
D) Licensed software

Question 54

Typically,____ is fairly simple and limited in scope.

A) in-house-developed software
B) user-developed software
C) licensed software
D) commissioned software

Question 55

The proliferation of desktop computers and easier-to-use development tools in the workplace has been a major stimulus in application development by ____________________.

Question 56

Many North American and European countries have outsourced development of well-defined applications to professionals in other countries,an act often referred to as ____________________.

Question 57

____________________ is the proportion of time that the ASP's systems and communication links are up and running.

Question 58

Large developers often distribute prerelease versions,called ____________________ of software to be tested by companies that agree to use the application with actual data for several months.

Question 59

Companies must take extra care to ensure that ____________________ software truly complies with company needs,including organizational culture.

Question 60

It is in the ____________________'s interest to have as specific a contract as possible.

Question 61

Provide examples of typical outsourced IT services.

Question 62

Name at least five important factors to be considered in selecting a software vendor.

Question 63

What is a request for proposal (RFP)?

Question 64

____________________ law states that an employee might use an employer's computer services for his or her own purpose without permission if no damage is caused and if the value of supplies and computer services does not exceed $100.

Question 65

List the advantages and disadvantages of custom-designed applications.

Question 66

List the benefits and risks to renting and using software through the Web.