Information Technology For Managers
3-1
Chapter 3 Project Management Solutions to End of Chapter Material Answers to What Would You Do Questions 1.
You are the Optum project leader taking over responsibility for implementing the Vermont Health Connect state health exchange. Your manager has just sent you a text asking you if you think it necessary to debrief Vermont state officials on what caused the project with CGI to spiral out of control. How do you reply? Students’ answers will vary. Some students may be in favor of debriefing Vermont state officials on what caused the project with CGI to spiral out of control. They may feel that this would help them in buying time for the team to deliver the project as per specifications.
2.
The new warehouse inventory control system will use the recently installed wireless network and RFID scanning equipment mounted on forklift trucks to track inventory in the warehouse. You have been holding off meeting with the project team to develop a schedule and cost estimate because three key members of the five-person project team are not available to meet until late next week. The CFO is on the phone with you. She needs dates, effort estimates, and dollar estimates to complete the capital and staffing forecast for next year and ensure there will be a budget for this project. What do you say? Students’ answers will vary. Some students may suggest arriving at an estimate based on the other two members’ schedule and cost estimates. Students may also suggest including contingency cost to the estimate to take care of all unforeseen costs that may arise during the course of the project.
Answers to Discussion Questions 1.
Do research online to find the success rate of IT projects compared to all types of organizational projects. Which has the higher success rate? Why do you think that this is so? Students’ answers will vary. Some students may mention that organizational projects are more successful than IT projects. There are many reasons why the success rate of IT projects is so low. IT projects are inherently complex activities that involve numerous
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-2
people playing many different roles—end users, sponsor, champion, project manager, project team member, etc. There are many opportunities for miscommunication, especially around defining the system scope and requirements. In addition, system requirements change and there is often a desire to change the project scope. Students may cite the example of the Standish Group that has found that 61 percent of all IT projects failed or faced major challenges such as lateness, budget overruns, and lack of required features. The Project Management Institute also found a gap between what organizations should be doing—aligning projects to the organization’s strategy—and what they are able to accomplish. The result is that 44 percent of strategic initiatives are unsuccessful. 2.
What is meant by the scope of a project? How can the scope of a project be defined? Project scope is a definition of which tasks are and which tasks are not included in a project. Project scope is a key determinant of the other project factors and must carefully be defined to ensure that a project meets its essential objectives. In general, the larger the scope of the project, the more difficult it is to meet cost, schedule, quality, and stakeholder expectations.
3.
Distinguish between the role of the project champion and the role of the project sponsor. Is one more important to the success of a project than the other? A project champion is a well-respected manager with a passion to see the project succeed and who removes barriers to the project success, whereas a project sponsor who is a senior manager from the business unit most affected by the project and who ensures the project will indeed meet the needs of his or her organization. Some students may find the roles of all key members equally important to the success of a project.
4.
Present an argument of why organizations should not include internal cross-charges in evaluating the economic desirability of projects. Now present an argument of why they should. What is your final position on the use of cross-charges? Students’ arguments will vary. However, students may mention that the effort of the employees involved in the development and implementation of an IT project represents a cost of the project. This cost, if a significant portion of the total project costs, should be included in determining the economic feasibility of the project.
5.
What is the difference between quality assurance and quality control? Quality assurance involves evaluating the progress of a project on an ongoing basis to ensure that it meets the identified quality standards. Quality control involves checking project results to ensure that they meet identified quality standards.
6.
Describe three specific actions that the ideal project sponsor should take to ensure the
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-3
success of a project. The ideal project sponsor is a senior manager of a business unit most affected by the project. The sponsor should ensure that the business unit’s expectations and needs are clearly communicated and understood. The sponsor should ensure that the project solution is truly workable and consistent with business and end-user requirements. The sponsor should work to overcome resistance to change and prepare the organization to embrace the new system and way of doing things. The sponsor should identify workers from business unit to be assigned on a full- or part-time basis to the project. 7.
Is there a difference between project time management and personal time management? Can someone be “good” at one but not the other? Explain your answer. Project time management includes defining an achievable completion date that is acceptable to the project stakeholders, developing a workable project schedule, and ensuring the timely completion of the project. It requires identifying specific tasks that project team members and/or other resources must complete; sequencing these tasks, taking into account any task dependencies or firm deadlines; estimating the amount of resources required to complete each task; estimating the elapsed time to complete each task; analyzing all this data to create a project schedule; and controlling and managing changes to the project schedule. Personal time management is essential if an individual wants to be effective and work well even under extreme pressure. The key to personal time management is to concentrate on getting results on the things that matter most and to assign lower priority to less important things. It is possible for someone to be good at personal time management but not be able to coordinate the activities of many people as required by project time management. If someone is not good at personal time management, it is unlikely that he/she will be good at project time management.
8.
Discuss the team dynamics for a highly effective (or ineffective) team of which you were a member. Can you explain why the team performed so well (or poorly) using the formingstorming-norming-performing model? Students’ answers will vary. However, students may mention that typically, a highly effective team successfully goes through a process that emulates the forming-stormingnorming-performing model. During the forming stage, the team meets to learn about the project, agrees on basic goals, and begins to work on project tasks. Team members are on their best behavior and try to be pleasant to one another while avoiding any conflict or disagreement. The team’s project manager in the formation stage tends to be highly
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-4
directive and tells members what needs to be done.. The team has moved into the storming stage when it recognizes that differences of opinion exist among team members and allows these ideas to compete for consideration. The team might argue and struggle, so it can be an unpleasant time for everyone. The project manager and team members must be tolerant of one another as they explore their differences. The project manager may need to continue to be highly directive. If the team survives the storming stage, it may enter the norming stage. During this stage, individual team members give up their preconceived judgments and opinions. Team members adjust their behavior toward one another and begin to trust one another. Teamwork actually begins. The project manager can be less directive and can expect team members to take more responsibility for decision making. Some teams advance beyond the norming stage into the performing stage. At this point, the team is performing at a high level. Team members are competent, highly motivated, and knowledgeable about all aspects of the project. They have become interdependent on one another and have developed an effective decision-making process that does not require the project manager. The team’s effectiveness is much more than the sum of the individual members’ contributions. The project manager encourages participative decision making, with the team members making most of the decisions. 9.
What sort of behaviors would indicate that the business organization is not fully engaged in a project and instead is looking to the project team to make the project a success? What is the danger with this attitude? Students’ answers will vary. Some behaviors that indicate that the business organization is not fully engaged in a project include: failure to work to clearly understand how the project will impact the organization, failure to take the lead in communicating the upcoming changes to the organization, and failure to lead the effort to identify and work through any organizational issues that arise. Such lack of leadership on the part of the business organization is likely to lead to many serious problems, such as failure to make the necessary changes in its work processes and behavior that would allow the project to succeed.
10. Identify some of the challenges of performing project integration management on a project in which team members are distributed globally and cannot physically meet in one location. How might these challenges be overcome? Students’ answers will vary. Some students may mention that project integration management requires the coordination of all appropriate people, resources, plans, and efforts to complete a project successfully. Frequent, clear, and timely communications among all participants are necessary to do this. Such communications are extremely This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-5
difficult to ensure when people are distributed globally in different time zones and are unable to meet in one location at the same time. As a result, global teams rely on audio or audio/video conferences at a pre-scheduled time, email, and shared workplaces to enable effective communications. 11. Imagine that you are hiring a firm to complete a large but undetermined amount of project work for your firm. Which form of contract would you prefer and why? Students’ answers will vary. Some students may mention that a fixed-price contract will not work because the amount of service is not known. A cost-reimbursable contract requires paying a provider an amount that covers the provider’s actual costs plus an additional amount or percentage for profit. This type of contract does not predefine the provider’s costs and so does not control the total project cost very well. A time and materials contract pays the provider for both the time and materials required to do the job. The contract includes an agreed-upon hourly rate and unit price for the various materials to be used. However, the provider may extend the project to earn more revenue. Either costreimbursable or time and materials contract could be used coupled with tight cost management by a project manager. 12. How would you respond to a project team member who feels that risk management is a waste of time because the future cannot be predicted? Instead, this person prefers to react to problems as they occur. Students’ answers will vary. One should be patient with this team member and try to get him/her to accept the concept of risk management as a way of minimizing the impact of potential problems. With risk management, some potential problems can be eliminated. Backup plans can be developed for potential problems that cannot be eliminated.
Action Needed 1.
You are on the phone with the project sponsor of a project you are managing. He informs you that he accepted the role reluctantly and now, two months into this eight-month project, he is considering withdrawing as project sponsor. He does not see the need for this role and is extremely busy with his other responsibilities. How do you respond? Students’ answers will vary. An ideal sponsor works to overcome resistance to change and prepare the organization to embrace the new system and way of doing things. So, a project manager must try to make the sponsor realize his responsibilities toward the project. The manager could suggest the sponsor to use communication tools such as weekly e-mail newsletters and biweekly face-to-face meetings so that his or her other responsibilities are not compromised.
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
2.
3-6
You and a small group of managers from the sponsoring organization have just completed defining the scope, schedule, and cost for an important project in your firm. You estimate that the project will take 12 people about 10 months and cost just over $2.5 million. You just received an email from your manager insisting that the project schedule be shortened by three months because senior management is impatient for the improvements this project is expected to deliver. He promises to “free up” four additional resources within the next month or so to be assigned to your project. How do you respond? Students’ answers will vary. The individual can tell the manager that he/she and the small group of managers need to meet again to evaluate the options for cutting the schedule by three months. One option to be considered is the addition of four resources offered by the manager. The individual may raise questions such as—what sort of skills and experience would these resources need? Can they reduce the elapsed time by three months? What will be the additional cost? Another option to be considered is to reduce the scope of the initial release of the project so that it meets only the critical requirements and is complete three months earlier. The individual should ask the manager to identify other options he/she would like to have evaluated.
3.
You are surprised when your project team “pushes back” on your request for them to schedule a full-day offsite to work with you to develop a risk management plan. They state that they are simply too busy to afford time for this activity. And besides, they feel that if something unforeseen occurs, it is your responsibility to react to it. How do you respond to your team? Students’ answers will vary. Students may mention that one should be patient with the team members and try to get them to accept the concept of risk management as a way of minimizing the impact of potential problems. With risk management, some potential problems can be eliminated altogether. Back-up plans can be developed for potential problems that cannot be eliminated. The project team then needs to consider which risks need to be addressed with some sort of risk management plan. Generally, the team can ignore risks with a low probability of occurrence and low potential impact. Risks with a high probability of occurrence and a high potential impact need to have a risk owner assigned.
Web-Based Case BBC Digital Media Initiative Revisited 1.
Do research online to identify the capabilities of digital asset management software. What are the top rated digital asset management software products? Who uses this software? Students’ answers will vary. One approach that students could use is to perform a search
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-7
engine query on the term “digital asset management software” which will yield a halfdozen or more links to sites that list the top rated digital asset management software products and its users. 2.
Given the NAO’s findings and what you discover about available off-the-shelf products, would it have been wiser for the BBC to adopt a collection of these existing products? What actions would be necessary to gain the cooperation of the business units to incorporate this collection of products into their work processes? Students’ answers will vary. Some students will agree that it would have been wiser for the BBC to adopt a collection of off-the-shelf products because they provide a general set of features that can be used by many users. Students might perform a Web search to identify the actions that would be necessary to gain the cooperation of the business units to incorporate this collection of products into their work processes. Their search results will vary.
Case Study Webcor: Building Buy-In in the Brick-and-Mortar Business Discussion Questions 1.
How has Webcor used technology to support project management in the construction field? Students’ answers will vary. Students may mention that in 1984, Webcor integrated the Apple desktop into its work process. In 2011, Webcor made a significant commitment to virtual design and construction in its public sector building projects. Adopting Vico Software’s 5D Virtual Construction application allowed Webcor to estimate costs, schedule projects, and manage projects with increased efficiency. With this software, Webcor can take its customers through a series of what-if scenarios that allow them to make key design decisions from the start. Using the software, Webcor can also predict the scheduling and cost impact of changes that occur throughout building design and construction.
2.
List the main lessons IT managers can learn from Webcor Builders about the successful adoption of new technologies. Students’ answers will vary. Students may mention that the decision to adopt new technologies involved fairly high risks, given the potential resistance of its end users. With the firm backing of the top management team, Sarrubi (Webcor CIO) has used two tactics to persuade his blue-collar workforce to adopt technological innovation. First, Sarrubi searches for and hires what he calls technology “cheerleaders,” young
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/
Information Technology For Managers
3-8
college graduates who are more collaborative and who have embraced technology from their early years as a means of producing higher quality work in less time. This strategy successfully persuaded older employees to adopt Box, a cloud-based storage platform for the company’s architectural drawings and financial documents. The organization’s adoption of the Box software grew out of a trial at one job site and just took off, caught fire, adoption-wise... And soon, what had started as a small group test grew into almost one hundred Box users within a few weeks. The reason for this growth was wordof-mouth testimonials that employees gave after using the software within the company. In addition to his cheerleader approach, Sarrubi also makes sure that working with the new technology is “as easy as using Amazon.” Cost, scalability, and return-on-investment are important factors the company considers when making IT decisions, but end-user preference is also a big factor in what technologies the company adopts. 3.
Webcor bought an application called PlanGrid to mark up construction blueprints on iPads. PlanGrid can be used when the workers are offline and later syncs up with files on the Box platform. Webcor frequently follows this approach of buying applications and then building application programming interfaces (APIs) to connect these programs to its main enterprise systems. What are the advantages and disadvantages of this IT development process? Students’ answers will vary. Some advantages of this process are its cost, scalability, return-on-investment, and user-friendliness. A primary disadvantage could be regarding the reliability of the service, which syncs up with files on the Box platform. Users should also be aware of the fact that the service can shut down or limit how an individual uses its API at any time.
4.
How might developing whole IT systems themselves, rather than adopting already developed solutions and integrating them using APIs, change Webcor’s ability to encourage IT adoption? Students’ answers will vary. Students may mention that developing whole IT systems themselves might help Webcor design solutions specific to its requirements. It might also help Webcor persuade its blue-collar workforce to adopt new technologies.
5.
What obstacles do companies face when developing customized IT systems themselves? Under what circumstances does it make sense? Students’ answers will vary. Students may mention that cost is a major obstacle in developing an IT system. Additionally, companies need to have a sufficient number of employees with the skills and experience required to deliver the product or service at an acceptable level of quality and within the required deadline.
This study source was downloaded by 100000849927608 from CourseHero.com on 09-05-2022 16:36:03 GMT -05:00
https://www.coursehero.com/file/23272701/Reynolds-2e-SM-Ch03/ Powered by TCPDF (www.tcpdf.org)
CHAPTER 1 – MANAGERS: KEY TO INFORMATION TECHNOLOGY RESULTS MULTIPLE CHOICE 1. The scope of the project, the data captured, and the usability of new information technology systems are some of the decisions taken by: a. software developers. b. managers. c. software testers. d. network administrators. ANS: B RATIONALE: Managers, working in conjunction with information technology (IT) specialists, must make many decisions when implementing a new IT solution, including how broad the project will be in scope, what data to capture, how databases and applications should be tailored, what information will flow from the systems and to whom, and, most importantly, how people will use the system to make a difference. 2. What approach should be followed by managers to ensure that information technology innovations pay off? a. Linguistic b. Holistic c. Relativistic d. Imperialistic ANS: B RATIONALE: Managers are the key to ensuring that information technology innovations pay off; they must lead a holistic approach that includes encouraging the acceptance of change, addressing changes in business processes and organizational structure, establishing new employee roles and expectations, and creating new measurement and reward systems. 3. _____ includes all tools that capture, store, process, exchange, and use information. a. Information technology b. Information hierarchy c. Information board d. Information broadcast ANS: A RATIONALE: Information technology includes all tools that capture, store, process, exchange, and use information. The field of information technology includes computer hardware, such as mainframe computers, servers, desktops, laptops, tablets, and smartphones; software, such as operating systems and applications for performing various functions; networks and related equipment, such as modems, routers, and switches; and databases for storing important data. 4. The set of information technology (IT) hardware, software, and networks in an organization is called its _____. a. IT organization b. IT hierarchy
c. IT infrastructure d. IT board ANS: C RATIONALE: An organization’s defined set of information technology (IT) hardware, software, and networks is called its IT infrastructure. An organization’s IT infrastructure must be integrated with employees and procedures to build, operate, and support information systems that enable a firm to meet its fundamental objectives. 5. Which of the following information technologies (IT) include information systems that improve the productivity of individual users in performing stand-alone tasks? a. Enterprise IT b. Personal IT c. Group IT d. Prototype IT ANS: B RATIONALE: Personal information technology (IT) includes information systems that improve the productivity of individual users in performing stand-alone tasks. Examples include personal productivity software such as word processing, presentation, and spreadsheet software; decision support systems, and online learning systems. 6. Rapidstudy, an online platform, is used to enhance the learning capabilities of students. This is an example of: a. personal information technology. b. enterprise information technology. c. group information technology. d. prototype information technology. ANS: A RATIONALE: Personal information technology includes information systems that improve the productivity of individual users in performing stand-alone tasks. Examples include personal productivity software such as word processing, presentation, and spreadsheet software; decision support systems, and online learning systems. 7. Which of the following information systems employ an analytic model to help users gain insights into a problem situation, examine alternate solutions, and recommend an appropriate course of action? a. A word processing software b. A decision support system c. A spreadsheet software d. A web conferencing system ANS: B RATIONALE: A decision support system (DSS) employs analytic models to help users gain insights into a problem situation, examine alternative solutions, and recommend an appropriate course of action. For example, VisualDx is a clinical decision support system that provides instant access to concise disease information and high-quality medical images.
8. VisualDX provides instant access to concise disease information and high-quality medical images. This is an example of: a. word processing system. b. interorganizational information system. c. decision support system. d. online learning system. ANS: C RATIONALE: A decision support system (DSS) employs analytic models to help users gain insights into a problem situation, examine alternative solutions, and recommend an appropriate course of action. For example, VisualDx is a clinical decision support system that provides instant access to concise disease information and high-quality medical images. 9. Hypermedia, podcasts, and Webcasts are the techniques used in: a. decision enabled systems. b. product lifecycle systems. c. transaction processing systems. d. online learning systems. ANS: D RATIONALE: Online learning systems encompass a number of computer-enhanced learning techniques, including computer-based simulations, multimedia disks, Web-based learning materials, hypermedia, podcasts, and Webcasts. 10. Which of the following best describes a group information technology information system? a. It includes information systems that improve the productivity of individual users in performing standalone tasks. b. It includes information systems that organizations use to define structured interactions with external customers. c. It includes information systems that improve communications and support collaboration among members of a project. d. It includes information systems that organizations use to define structured interactions among their employees and suppliers. ANS: C RATIONALE: Group information technology includes information systems that improve communications and support collaboration among the members of a workgroup. Examples include the use of Web conferencing, wikis, and electronic corporate directories. 11. Web conferencing and electronic corporate directories are examples of: a. personal information technologies. b. group information technologies. c. process information technology. d. prototype information technology. ANS: B
RATIONALE: Group information technology (IT) includes information systems that improve communications and support collaboration among members of a workgroup. Examples include the use of Web conferencing, wikis, and electronic corporate directories. 12. Which of the following is an example of a personal information technology system? a. Project management software b. Instant messaging service c. Transaction processing system d. Decision support system ANS: D RATIONALE: Personal information technology includes information systems that improve the productivity of individual users in performing stand-alone tasks. Examples include personal productivity software such as word processing, presentation, and spreadsheet software; decision support systems, and online learning systems. 13. Which of the following uses information technology to conduct meetings or presentations via the Internet? a. Web conferencing b. Really simple syndication feed c. Podcast d. Electronic bulletin board ANS: A RATIONALE: Web conferencing uses information technology to conduct meetings or presentations in which participants are connected via the Internet. Screen sharing is the most basic form of Web conference—each participant sees whatever is on the presenter’s screen, be it a spreadsheet, legal document, artwork, or blueprint. 14. Which of the following is the most basic form of Web conferencing? a. Podcasting b. Network sharing c. Webinar d. Screen sharing ANS: D RATIONALE: Web conferencing uses information technology to conduct meetings or presentations in which participants are connected via the Internet. Screen sharing is the most basic form of Web conference—each participant sees whatever is on the presenter’s screen, be it a spreadsheet, legal document, artwork, or blueprint. 15. In _____, the audio and video information is shown from the presenter to participants. a. screen sharing b. network sharing c. Webcasting d. podcasting ANS: C
RATIONALE: Web conferencing uses information technology to conduct meetings or presentations in which participants are connected via the Internet. Another form of Web conferencing is Webcasting, in which audio and video information is broadcast from the presenter to participants. 16. Which of the following is true of a Webinar? a. It automatically delivers to subscribers the updated posts from their favorite blogs with limited one-way communication. b. It is a live Internet presentation that supports interactive communications between the presenter and the audience. c. It provides a set of tools to report project status. d. It determines the resource availability and schedule rooms for meetings over the internet. ANS: B RATIONALE: Web conferencing uses information technology to conduct meetings or presentations in which participants are connected via the Internet. Another type of Web conference, a Webinar, is a live Internet presentation that supports interactive communications between the presenter and the audience. 17. A _____ is a Web site that allows users to edit and change its content easily and rapidly. a. wiki b. forum c. podcast d. blog ANS: A RATIONALE: A wiki (Hawaiian for fast) is a Web site that allows users to edit and change its content easily and rapidly. The wiki may be either a hosted Internet site or a site on a company’s intranet. 18. _____ is a free software project that produces libraries and programs for handling multimedia data. a. FLmpeg b. FFmpeg c. LLmpeg d. PLmpeg ANS: B RATIONALE: FFmpeg is a free software project that produces libraries and programs for handling multimedia data. FFmpeg adopted the use of Trac, an enhanced wiki and issue tracking system, in June 2014 to provide support for software developers. 19. Which of the following is used in large organizations to find the right person to collaborate on an issue or on an opportunity? a. Electronic bulletin boards b. Electronic yellow pages c. Electronic enterprise systems d. Electronic corporate directories ANS: D RATIONALE: Electronic corporate directories are used in large organizations to find the right person with whom to collaborate on an issue or opportunity. Increasingly, organizations are creating online
electronic corporate directories to solve this problem. IBM created an application called Bluepages— IBM’s Facebook for the enterprise. 20. Which of the following is true of Bluepages? a. It enables an employee to contact other employees and their backups. b. It captures data from company transactions and other key events. c. It supports sales, marketing, and customer service processes. d. It supports the flow of data among different organizations to achieve shared goals. ANS: A RATIONALE: IBM created an application called Bluepages—IBM’s Facebook for the enterprise. This group IT application enables an employee to contact other employees and their backups, in case of an absence or vacation. 21. Which of the following information technologies (IT) is used by organizations to define structured interactions among their own employees and with external customers? a. Private IT b. Group IT c. Enterprise IT c. Prototype IT ANS: C RATIONALE: Enterprise information technology (IT) includes information systems that organizations use to define structured interactions among their own employees and/or with external customers, suppliers, government agencies, and other business partners. 22. Successful implementation of enterprise information technology system requires: a. a set of tools for project managers and members to report project plans and status. b. the radical redesign of fundamental work processes and the automation of new processes. c. information systems that improve communications and support collaboration among members of a workgroup. d. integrated data, text, voice, and video in a single solution that encompasses instant messaging, presence information, and video conferencing. ANS: B RATIONALE: Enterprise information technology (IT) includes information systems that organizations use to define structured interactions among their own employees and/or with external customers, suppliers, government agencies, and other business partners. Successful implementation of these systems often requires the radical redesign of fundamental work processes and the automation of new processes. 23. In an enterprise information technology, payroll is a part of the: a. target process. b. requirement process. c. design process. d. planning process. ANS: A
RATIONALE: Enterprise information technology includes information systems that organizations use to define structured interactions among their own employees and/or with external customers, suppliers, government agencies, and other business partners. Target processes may include purely internal activities within the organization (such as payroll) and those that support activities with external customers and suppliers. 24. Interorganizational systems are examples of _____. a. group information technologies b. private information technologies c. marketing information technologies d. enterprise information technologies ANS: D RATIONALE: Enterprise information technology includes information systems that organizations use to define structured interactions among their own employees and/or with external customers, suppliers, government agencies, and other business partners. Three examples of enterprise information technology are transaction processing, enterprise, and interorganizational systems. 25. A _____ captures data from company transactions and other key events, and then updates the firm’s records, which are maintained in electronic files or databases. a. transaction processing system (TPS) b. transaction migration system (TMS) c. transaction secured system (TSS) d. transaction broadcast system (TBS) ANS: A RATIONALE: A transaction processing system (TPS) captures data from company transactions and other key events, and then updates the firm’s records, which are maintained in electronic files or databases. Each TPS supports a specific activity of the firm, and several may work together to support an entire business process. 26. Shipment planning and shipment execution are the stages involved in: a. inventory control. b. structured interaction. c. order processing. d. target process. ANS: C RATIONALE: Each transaction processing system (TPS) supports a specific activity of the firm, and several may work together to support an entire business process. For example, some organizations use many TPSs to support their order processing, which includes order entry, shipment planning, shipment execution, inventory control, and accounts receivable. 27. Data captured using the order entry transaction processing system is used to: a. replicate a set of orders. b. process the refund for returned orders. c. create new orders. d. update a file of open orders.
ANS: D RATIONALE: Data captured using the order entry transaction processing system is used to update a file of open orders—orders received but not yet shipped. 28. Which of the following acts as an input to the shipment planning transaction processing system that determines the orders to be filled, the shipping date, and the location from which each order will be shipped? a. The open order file b. The planned order file c. The exchange order file d. The local order file ANS: A RATIONALE: Data captured using the order entry transaction processing system (TPS) is used to update a file of open orders—orders received but not yet shipped. The open order file, in turn, is used as input to the shipment planning TPS, which determines the orders to be filled, the shipping date, and the location from which each order will be shipped. The result is the planned order file, which is passed downstream to the shipment execution TPS, and so on. 29. Which of the following best describes an enterprise system? a. It captures data from company transactions and other key events, and then updates the firm’s records, which are maintained in electronic files or databases. b. It enables the sharing of information across all business functions and all levels of management. c. It includes information systems that improve communications and support collaboration among the members of a workgroup. d. It encompasses a number of computer-enhanced learning techniques, including computer-based simulations, multimedia DVDs, Web-based learning materials, hypermedia, podcasts, and Webcasts. ANS: B RATIONALE: Many organizations employ enterprise systems to support their operation and planning functions and to enable the sharing of information across all business functions and all levels of management. These systems employ a database of key operational and planning data that can be shared by all employees and, in some situations, customers and suppliers. 30. Customer relationship management (CRM) and product life cycle management (PLM) are common types of: a. personal systems. b. group systems. c. resource planning systems. d. enterprise systems. ANS: D RATIONALE: Enterprise systems employ a database of key operational and planning data that can be shared by all employees and, in some situations, customers and suppliers. The three most common types of enterprise systems are enterprise resource planning systems, customer relationship management systems, and product life cycle management systems.
31. Which of the following systems support the supply chain processes such as order processing, inventory management, and purchasing? a. Customer relationship management (CRM) b. Product life cycle management (PLM) c. Enterprise resource planning (ERP) d. Organizational information system (OIS) ANS: C RATIONALE: An enterprise resource planning (ERP) system is a set of integrated programs that manage a company’s vital business operations. They support the supply chain processes, such as order processing, demand planning, inventory management, and purchasing. 32. _____ systems support the sales and marketing processes. a. Customer relationship management (CRM) b. Product life cycle management (PLM) c. Enterprise resource planning (ERP) d. Organizational information system (OIS) ANS: A RATIONALE: A customer relationship management (CRM) system helps a company manage all aspects of customer encounters. This includes sales, marketing, and customer service processes. 33. Which of the following supports the flow of data among different organizations to achieve shared goals? a. Customer relationship management b. Product life cycle management c. Enterprise resource planning system d. Interorganizational information system ANS: D RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. For example, some organizations need to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions. 34. Fillkart, an online shopping Web site, needs to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions. Which of the following will support these needs of Fillkart? a. Customer relationship management. b. Product life cycle management. c. Interorganizational information system. d. Enterprise resource planning. ANS: C RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. For example, some organizations need to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions. 35. Which of the following is true of interorganizational information systems?
a. It speeds up the flow of material and information. b. It increases the effort of processing a transaction. c. It increases the cost of processing a transaction. d. It reduces the flow of payments while concentrating on the flow of material and information. ANS: A RATIONALE: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. They speed up the flow of material, payments, and information, while allowing companies to reduce the effort and costs of processing such transactions. 36. Which of the following is a step taken by organizations to ensure efficient and effective sharing of information? a. Discussing the gist of the information b. Duplicating the information c. Increasing the cost of processing the information d. Using compatible technologies ANS: D RATIONALE: To ensure efficient and effective sharing of information, organizations must agree in advance on the nature and format of information to be exchanged, and they must use compatible technologies. The companies must work together to resolve technical issues relating to data definitions and formats, database designs, standards to ensure high data quality, and compatible technology infrastructures. 37. Organizations are concerned about the profits they receive for their investments in information technology (IT) than the amount spent on the investment. This is to done to: a. ensure smooth introduction and adoption of IT. b. identify appropriate IT opportunities. c. ensure that IT risks are mitigated. d. adopt the section 404 of the Sarbanes-Oxley Act. ANS: B RATIONALE: The most important consideration is what organizations are getting out of their investments in information technology (IT), not how much they are investing in IT. This helps to identify the appropriate IT opportunities. 38. Identify the industry that has the highest information technology spending. a. Agriculture b. Food c. Finance d. Automobile ANS: C RATIONALE: Organizations typically spend 1 to 6 percent of their total revenues on information technology (IT); this spending is generally higher for industries in which IT is more critical to success, such as health care and financial services.
39. The Change Management Continuum Model, the Unified Theory of Acceptance and Use of Technology, and the Diffusion of Innovation Theory are the theories that can help: a. in smooth introduction and adoption of information technology. b. to identify appropriate information technology opportunities. c. in ensuring that information technology risks are mitigated. d. to implement the section 404 of the Sarbanes-Oxley Act. ANS: A RATIONALE: Several theories on organizational change management can help smooth the introduction and adoption of information technology. Three such theories are: the Change Management Continuum Model, the Unified Theory of Acceptance and Use of Technology, and the Diffusion of Innovation Theory. 40. Which of the following models describe the key activities that are needed to build commitment for change? a. The Unified Acceptance Model b. The Change Management Technology Model c. The Change Management Continuum Model d. The Diffusion of Innovation Model ANS: C RATIONALE: D.R. Conner developed the Change Management Continuum Model, which describes the key activities that are needed to build commitment for change. This model provides a roadmap to guide management actions at each stage of the introduction of a new system. 41. The _____ provides a roadmap to guide the management actions at each stage of the introduction of a new system. a. Unified Acceptance Model b. Change Management Continuum Model c. Change Management Technology Model d. Diffusion of Innovation Model ANS: B RATIONALE: D.R. Conner developed the Change Management Continuum Model, which describes key activities that are needed to build commitment for change. This model provides a roadmap to guide the management actions at each stage of the introduction of a new system. 42. Which of the following is a phase of the Change Management Continuum Model? a. Inform b. Adopt c. Perception d. Internalization ANS: A RATIONALE: Inform, educate, and commit are the phases of the Change Management Continuum Model. Its goal is to make people aware of the change and why it is occurring.
43. Positive perception, adoption, and institutionalization are the stages of the _____ phase of the Change Management Continuum Model. a. inform b. educate c. contact d. commit ANS: B RATIONALE: The educate phase makes people recognize the impact of change on them and their way of working. Positive perception, adoption, and institutionalization are the stages of the educate phase of the Change Management Continuum Model. 44. The _____ stage of the Change Management Continuum Model demonstrates a positive impact on the organization. a. internalization b. institutionalization c. adoption d. perception ANS: C RATIONALE: The adoption stage comes under the educate phase of the Change Management Continuum Model. It describes the change that has demonstrated a positive impact on the organization. 45. Identify the stage in the Change Management Continuum Model that incorporates the changes in the routine operating procedures of an organization. a. Internalization b. Perception c. Adoption d. Institutionalization ANS: D RATIONALE: Institutionalization stage in the Change Management Continuum Model incorporates the changes in the routine operating procedures of an organization. It comes under the educate phase. 46. Which of the following best describes the awareness stage of the Change Management Continuum Model? a. A person becoming aware that a change is to take place b. A person gaining basic knowledge of the change c. A person incorporating the change in routine operating procedures d. A person committed to a change due to personal interest ANS: B RATIONALE: In the awareness stage of the Change Management Continuum Model, a person has a basic knowledge of the change. This stage comes under the inform phase. 47. Which of the following is true of the Internalization phase of the Change Management Continuum Model? a. Employees are highly committed to the change because it suits their interests.
b. Employees formally incorporate the change into routine operating procedures of the organization. c. Employees comprehend the nature and intent of the change and how he or she will be affected. d. Employees gain a basic knowledge of the change. ANS: A RATIONALE: In the internalization stage of the Change Management Continuum Model, people are highly committed to the change because it matches their interests, goals, and values. This phase comes under the commit phase. 48. Usefulness, ease of use, management expectations, and facilitating conditions are the key factors of: a. the Change Management Continuum Model. b. the Diffusion of Innovation Theory. c. the Change Management Consistent Model. d. the Unified Theory of Acceptance and Use of Technology. ANS: D RATIONALE: The Unified Theory of Acceptance and Use of Technology identifies four key factors that directly determine a user’s acceptance and usage of information technology. They are usefulness, ease of use, management expectations, and facilitating conditions. 49. In the Unified Theory of Acceptance and Use of Technology, who provides the technical infrastructure help in learning and using the new technology? a. End user b. Client c. Super user d. Tester ANS: C RATIONALE: In the Unified Theory of Acceptance and Use of Technology, the end users want to know that they will be provided with sufficient time to be trained in a quality manner and that there will be others (help desk or “super users”) available to help when necessary. The necessary organizational and technical infrastructures must be in place to support end users in learning and using the new technology. 50. The _____ explains how a new idea or product gains acceptance and spreads through a specific population or subset of an organization. a. Change Management Continuum Model b. Diffusion of Innovation Theory c. Change Management Consistent Model d. Unified Theory of Acceptance and Use of Technology ANS: B RATIONALE: The Diffusion of Innovation Theory was developed by E.M. Rogers to explain how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization. A key point of this theory is that adoption of any innovation does not happen all at once for all members of the targeted population; rather, it is a drawn-out process, with some people quicker to adopt the innovation than others. 51. Which of the following adopter categories is very conservative and highly skeptical of change? a. Laggard b. Early majority
c. Early adopter d. Innovator ANS: A RATIONALE: Laggards are very conservative and highly skeptical of change. Their peers need to demonstrate on the benefits of change to convince them. 52. Which of the following adopter categories is considered as risk takers? a. Laggard b. Early majority c. Late majority d. Innovator ANS: D RATIONALE: Innovators are always the first to try new products and ideas. They are considered as risk takers. 53. Which of the following best describes late majority? a. They are the first to try new products and ideas. b. They listen to and follow the opinion of leaders. c. They are skeptical to changes and new ideas. d. They are the leaders whom others listen to and understand the need for change. ANS: C RATIONALE: Late majorities are people who are skeptical to changes and new ideas. They need to be provided with details of successful implementation of changes. 54. John, a product manager, decides to adopt to a new strategy to improve the quality of products served by his company. He also has the additional responsibility of convincing his team members to use the new strategy. In the context of innovation adopters, John is an example of a(n): a. laggard. b. early adopter. c. early majority. d. late majority. ANS: B RATIONALE: John is an example of an early adopter. Early adopters are opinion leaders whom others listen to and follow; they are aware of the need for change. 55. What is the strategy required by successful enterprise information technology system? a. Top-down imposition of standards and procedures b. Bottom-up imposition of standards and procedures c. Refactoring the standards and procedures d. Reengineering the standards and procedures ANS: A RATIONALE: A successful enterprise information technology (IT) system requires the top-down imposition of standards and procedures that spell out exactly how transactions must be conducted and how the supporting information must be captured, stored, and shared. As a result, senior management sometimes encourages adoption of enterprise IT by threatening penalties for nonconformance.
56. Data assets must be secured from unwanted intrusion, loss, and alteration. This is to: a. ensure the smooth adoption of the systems information technology. b. ensure the smooth transfer of information technology. c. ensure the smooth mitigation of risks in information technology. d. ensure the smooth induction of information technology. ANS: C RATIONALE: Information technology (IT) resources are used to capture, store, process, update, and exchange information that controls valuable organizational assets. As a result, special measures are needed to ensure that the information and its control mechanisms can stand up to intense scrutiny. Data assets must be secure from unwanted intrusion, loss, and alteration, and personal data must be secured to protect individual privacy rights. If information technology assets including data, software, hardware, and networks are rendered inoperable due to a disaster of any type, business continuity plans must be in place to ensure the ongoing operation of critical business functions that depend on those assets. Failure to ensure that IT risks are mitigated can lead to serious problems, such as business disruptions, data breaches exposing employee and/or customer personal data, and legal penalties. 57. Exposing employee and customer personal data to an untrusted environment is an example of: a. data spam. b. data phishing. c. data adware. d. data breach. ANS: D RATIONALE: A data breach is the unintended release of sensitive data or the access of sensitive data by unauthorized individuals. Data breaches expose the employee and/or customer personal data. 58. Data breaches lead to: a. the physical damage of a personal computer. b. the loss of business opportunity. c. the decreased customer support cost for information hotlines. d. the decreased customer support cost for credit monitoring services. ANS: B RATIONALE: Data breaches involving large databases of personal information are all too common. The cost to an organization that suffers a data breach can be quite high, including lost business opportunity associated with customers whose patronage has been lost due to the incident, public relations–related costs to manage the firm’s reputation, and increased customer support costs for information hotlines and credit monitoring services for victims. 59. Which of the following requires that all reports filed with the Securities and Exchange Commission (SEC) include a statement signed by the chief executive officer and the chief financial officer attesting the accuracy of the information provided in the reports? a. Smooth adoption of information technology b. Smooth introduction of information technology c. Diffusion of innovation Act d. Section 404 of the Sarbanes-Oxley Act ANS: D RATIONALE: Section 404 of the Sarbanes-Oxley Act requires that all reports filed with the Securities and Exchange Commission (SEC) include a statement signed by the chief executive officer and the chief
financial officer attesting that the information contained in the reports is accurate. The company also must submit to an audit to prove that it has controls in place to ensure accurate information. 60. An organization has to submit an audit to prove that it has accurate information on their assets. This is done to be in accordance to the: a. Section 906 of the Sarbanes-Oxley Act. b. Section 404 of the Sarbanes-Oxley Act. c. Section 802 of the Sarbanes-Oxley Act. d. Section 301 of the Sarbanes-Oxley Act. ANS: B RATIONALE: Section 404 of the Sarbanes-Oxley Act requires that all reports filed with the Securities and Exchange Commission (SEC) include a statement signed by the CEO and CFO attesting that the information contained in the reports is accurate. The company also must submit to an audit to prove that it has controls in place to ensure accurate information. 61. Hackers carry out a denial-of-service attack on an organization’s Web site. This leads to the: a. violation of legally mandated procedures for controlling information technology assets. b. violation of generally accepted accounting principles. c. inability to continue operations due to a deliberate attack on the information technology assets. d. theft of computers from a corporate training facility. ANS: C RATIONALE: Hackers carry out a denial-of-service attack on an organization’s Web site. This leads to the inability to continue the information technology (IT) operations due to a deliberate attack on the IT assets. 62. Which of the following scenarios best describes the violation of legally mandated procedures for controlling the information technology (IT) assets? a. IT system controls are inadequate to meet specific federal Sarbanes-Oxley guidelines that require companies to maintain the integrity of financial data. b. IT system controls are violated so that the same person can both initiate a purchase order and approve the invoice for that purchase order. c. Employees waste time at work visiting Web sites unrelated to their work. d. Hackers access and download customer data, including account numbers, and carry out a denial-ofservice attack on an organization’s Web site. ANS: A RATIONALE: Information technology (IT) system controls are inadequate to meet specific federal Sarbanes-Oxley guidelines that require companies to maintain the integrity of financial data. This is an example of violating legally mandated procedures for controlling IT assets. 63. Employees of Jackshay Corp. misuse their time by viewing online shopping Web sites that is unrelated to their job. This leads to: a. violation of generally accepted accounting principles. b. violation of the organization’s defined procedures and/or accounting practices. c. compromise of confidential data regarding organizational plans, products, or services. d. inappropriate use of information technology resources that reduces worker productivity. ANS: D
RATIONALE: Employees waste time at work visiting Web sites unrelated to their work. This is an example of inappropriate use of information technology resources that reduces worker productivity. 64. Which of the following scenarios best describes the compromise of confidential data regarding organizational plans, products, or services? a. Fire destroys all the physical assets in an organization. b. Employees use corporate email to disseminate sexually explicit material. c. Senior executive loses laptop containing critical data. d. Employees waste time at work visiting Web sites unrelated to their work. ANS: C RATIONALE: A senior executive has lost his laptop that contains critical data. This is an example that describes compromise of confidential data regarding organizational plans, products, or services. 65. Increased costs and wasted effort are consequences of: a. failed information technology projects. b. missed information technology projects. c. complicated information technology projects. d. overlooked information technology projects. ANS: A RATIONALE: Managers cannot afford to ignore information technology (IT) projects, because failed IT projects lead to increased costs, missed opportunities, and wasted time and effort. Far too much money and time has been wasted on failed, ineffective, or wasted information systems in both the private industry and public service arenas. TRUE/FALSE: 1. Companies capture significant benefits by just implementing information technology into their operations. ANS: False RATIONALE: Companies that merely insert information technology (IT) into their operations without making changes that exploit the new IT capabilities will not capture significant benefits. 2. A decision support system (DSS) employs theoretical models to help users gain insights into a real time situation. ANS: False RATIONALE: A decision support system (DSS) employs analytic models to help users gain insights into a problem situation, examine alternative solutions, and recommend an appropriate course of action. 3. Webinar is the most basic form of Web conference. ANS: False RATIONALE: Screen sharing is the most basic form of Web conference—each participant sees whatever is on the presenter’s screen, be it a spreadsheet, legal document, artwork, blueprint, or a medical scan image.
4. Product life cycle management supports only the research and development phase of a product. ANS: False RATIONALE: Product life cycle management (PLM) systems support the processes associated with the various phases of the life cycle of a product, including sales and marketing, research and development, concept development, product design, prototyping and testing, manufacturing process design, production and assembly, delivery and product installation, service and support, and product retirement and replacement. 5. Interorganizational information systems help to reduce the effort and cost of processing a company’s transaction. ANS: True RATIONALE: Interorganizational information systems speed up the flow of material, payments, and information, while allowing companies to reduce the effort and costs of processing such transactions. 6. When a new information technology is introduced, managers are highly encouraged to adopt the technology first and then try to figure out its implications. ANS: False RATIONALE: All too often when new information technology is introduced, managers adopt the technology first and then try to figure out what to do with it and how to cope with its implications. Such an approach is strongly discouraged as it can cause an increase in costs, lost worker productivity, wasted effort, and missed business opportunities. 7. The goal of commit phase in the Change Management Continuum Model is to make people aware of the change. ANS: False RATIONALE: The goal of commit phase in the Change Management Continuum Model is to make people accept the change since it has become a part of their everyday life. 8. Introducing an enterprise information technology system represents a major organizational change. ANS: True RATIONALE: Introducing an enterprise information system requires large amounts of resources and significant changes in procedures, roles and responsibilities, reward systems, and decision making. In other words, it represents a major organizational change. 9. Laggards are risk takers who attempts to try new products and ideas. ANS: False RATIONALE: Laggards are very conservative and highly skeptical of change. 10. Fire destroys resources at the corporate headquarters of an organization. This is an example of violation of generally accepted accounting principles.
ANS: False RATIONALE: Fire destroying the resources of an organization is an example of inability to continue operations due to a natural disaster or accident. ESSAY: 1. George, a physician, searches a database by symptoms, visual clues, and other patient factors to diagnose diseases and develop treatment plans. Discuss the support system used by the physician. ANS: The physician uses a decision support system (DSS). It employs analytic models to help users gain insights into a problem situation, examine alternative solutions, and recommend an appropriate course of action. For example, VisualDx is a clinical decision support system that provides instant access to concise disease information and high-quality medical images. Its database encompasses more than 1300 medical conditions and nearly 30,000 images. Physicians can search this database by symptoms, visual clues, and other patient factors to diagnose diseases and develop treatment plans. 2. What are the benefits of interorganizational information systems? ANS: Interorganizational information systems support the flow of data among different organizations to achieve shared goals. For example, some organizations need to share data for purchase orders, invoices, and payments along with information about common suppliers and financial institutions. Interorganizational information systems speed up the flow of material, payments, and information, while allowing companies to reduce the effort and costs of processing such transactions. 3. Discuss the Diffusion of Innovation theory. What is the difference between an innovator and a laggard? ANS: The Diffusion of Innovation Theory was developed by E.M. Rogers to explain how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization. A key point of this theory is that adoption of any innovation does not happen all at once for all members of the targeted population; rather, it is a drawn-out process, with some people quicker to adopt the innovation than others. An innovator is a risk taker who is always the first to try new products and ideas, whereas a laggard is a person who is very conservative and skeptical of change. 4. Explain Section 404 of the Sarbanes-Oxley Act with an example. ANS: Section 404 of the Sarbanes-Oxley Act requires that all reports filed with the Securities and Exchange Commission (SEC) include a statement signed by the chief executive officer (CEO) and chief financial officer (CFO) attesting that the information contained in the reports is accurate. The company also must submit to an audit to prove that it has controls in place to ensure accurate information. For example, the SEC brought charges against the CEO and CFO of a Florida-based computer equipment company for misrepresenting to external auditors and the investing public the state of its internal controls over financial reporting. The CFO agreed to pay a $23,000 penalty and to be barred from serving as an officer and director of a publicly traded company for five years. The SEC is continuing to litigate its case against the company’s CEO.
CHAPTER 3— PROJECT MANAGEMENT MULTIPLE CHOICE: 1. Which of the following provides customer benefits and gives a tough competition for competitors to imitate? a. Core analysis b. Core scheduling c. Core competency d. Core distribution ANS: C RATIONALE: Researchers Gary Hamel and C.K. Prahalad defined the term core competency to mean something that a firm can do well and that provides customer benefits, is hard for competitors to imitate, and can be leveraged widely to many products and markets. Today, many organizations recognize project management as one of their core competencies and see their ability to manage projects better as a way to achieve an edge over competitors and deliver greater value to shareholders and customers. 2. Which of the following is true of core competency? a. It makes it easy for competitors to know the strategy of their rivals. b. It makes it difficult for competitors to imitate others products. c. It cannot be leveraged widely to many products. d. It cannot penetrate into markets. ANS: B RATIONALE: Researchers Gary Hamel and C.K. Prahalad defined the term core competency to mean something that a firm can do well and that provides customer benefits, is hard for competitors to imitate, and can be leveraged widely to many products and markets. Today, many organizations recognize project management as one of their core competencies and see their ability to manage projects better as a way to achieve an edge over competitors and deliver greater value to shareholders and customers. 3. A(n) _____ is a temporary endeavor undertaken to create a unique product. a. project b. object c. entity d. portfolio ANS: A RATIONALE: A project is a temporary endeavor undertaken to create a unique product, service, or result. Each project attempts to achieve specific business objectives and is subject to certain constraints, such as total cost and completion date. 4. The total cost of a project and its completion date are examples of project _____. a. tables b. variables c. templates d. constraints
ANS: D RATIONALE: A project is a temporary endeavor undertaken to create a unique product, service, or result. Each project attempts to achieve specific business objectives and is subject to certain constraints, such as total cost and completion date. 5. The scope of a project, quality, and user expectations are the _____ of a project. a. inerts b. variables c. constraints d. templates ANS: B RATIONALE: Five highly interrelated parameters define a project—scope, cost, time, quality, and user expectations. If a project team has decided to allow scope changes during the project, then time and effort must be allowed to assess how the scope change will affect the interrelated project variables of cost, schedule, quality, and expectations. 6. Project _____ is a key determinant of other project factors and must be carefully defined. a. cost b. scope c. quality d. milestone ANS: B RATIONALE: Project scope is a definition of which tasks are and which tasks are not included in a project. Project scope is a key determinant of the other project factors and must carefully be defined to ensure that a project meets its essential objectives. 7. Which of the following best describes project scope? a. It enables sound economic decisions about whether employees should be assigned to project work or to operational activities. b. It is the degree to which a project meets the needs of its users. c. It ensures that a project meets its essential objectives. d. It includes all the capital, expenses, and internal cross-charges associated with a project’s buildings, operation, maintenance, and support. ANS: C RATIONALE: Project scope is a definition of which tasks are and which tasks are not included in a project. Project scope is a key determinant of the other project factors and must carefully be defined to ensure that a project meets its essential objectives. 8. Which of the following variables includes the internal cross-charges associated with a project’s buildings, operation, maintenance, and support? a. Cost b. Time c. Quality d. Scope
ANS: A RATIONALE: The cost of a project includes all the capital, expenses, and internal cross-charges associated with a project’s buildings, operation, maintenance, and support. Capital is money spent to purchase assets that appear on the organization’s balance sheet and are depreciated over the life of the asset. 9. _____ is the money spent to purchase assets that appear on an organization’s balance sheet and are depreciated over the life of the asset. a. Proceeds b. Capital c. Liability d. Cross-charge ANS: B RATIONALE: Capital is money spent to purchase assets that appear on an organization’s balance sheet and are depreciated over the life of the asset. Capital items typically have a useful life of at least several years. A building, office equipment, computer hardware, and network equipment are examples of capital assets. 10. _____ items are nondepreciable items that are consumed shortly after they are purchased. a. Capital b. Principal c. Liable d. Expense ANS: D RATIONALE: Expense items are nondepreciable items that are consumed shortly after they are purchased. Typical expenses associated with an information technology-related project include the use of outside labor or consultants, travel, and training. 11. Travel-related costs in an information technology-related project can be classified as _____. a. capital b. an expense c. a cross-charge d. revenue ANS: B RATIONALE: Expense items are nondepreciable items that are consumed shortly after they are purchased. Typical expenses associated with an information technology-related project include the use of outside labor or consultants, travel, and training. 12. Which of the following is true of cross-charging? a. It ensures that a project meets its essential objectives. b. It determines the degree to which a project meets the needs of its users. c. It decides whether employees should be assigned to project work or to operational activities. d. It determines whether a project can be completed in the stipulated time or not.
ANS: C RATIONALE: The rationale behind cross-charging is to enable sound economic decisions about whether employees should be assigned to project work or to operational activities. If employees are assigned to a project, cross-charging helps organizations determine which project makes the most economic sense. 13. The _____ business unit is the business unit most affected by the project and the one whose budget will cover the project costs. a. inheritor b. express c. sponsoring d. receiving ANS: C RATIONALE: Many organizations use a system of internal cross-charges to account for the cost of employees assigned to a project. For example, the fully loaded cost (salary, benefits, and overhead) of a manager might be set at $120,000 per year. The sponsoring organization’s budget is cross-charged this amount for each manager who works full time on the project. The sponsoring business unit is the business unit most affected by the project and the one whose budget will cover the project costs. 14. _____ is defined as the degree to which a project meets the needs of its users. a. Cost b. Quality c. Time d. Scope ANS: B RATIONALE: The quality of a project can be defined as the degree to which the project meets the needs of its users. The quality of a project that delivers an information technology (IT)-related system may be defined in terms of the system’s functionality, features, system outputs, performance, reliability, and maintainability. 15. The _____ of a project that delivers an information technology-related system may be defined in terms of the system’s functionality, features, system outputs, performance, reliability, and maintainability. a. time b. scope c. cost d. quality ANS: D RATIONALE: The quality of a project can be defined as the degree to which the project meets the needs of its users. The quality of a project that delivers an information technology (IT)-related system may be defined in terms of the system’s functionality, features, system outputs, performance, reliability, and maintainability. 16. _____ is the application of knowledge, skills, and techniques to project activities to meet project requirements. a. Project management
b. Project pyramid c. Project literacy d. Project analysis ANS: A RATIONALE: Project management is the application of knowledge, skills, and techniques to project activities to meet project requirements. Project managers must deliver a solution that meets specific scope, cost, time, and quality goals while managing the expectations of the project stakeholders. 17. Identify the activity that involves high levels of creativity and freedom. a. Analytic b. Scientific c. Annalistic d. Artistic ANS: D RATIONALE: The essence of artistic activity is that it involves high levels of creativity and freedom to do whatever the artist feels. The “art” of project management involves salesmanship and psychology in convincing others of the need to change and that this project is right to do. 18. Phil, an engineer, creates use case diagrams for his company. His work involves following defined routines and exacting adherence to laws. Which of the following activities corresponds to his work? a. Annalistic b. Scientific c. Probabilistic d. Artistic ANS: B RATIONALE: The essence of artistic activity is that it involves high levels of creativity and freedom to do whatever the artist feels. Scientific activity, on the other hand, involves following defined routines and exacting adherence to laws. 19. Initiation, scope planning, scope definition, scope verification, and scope change control are the key activities of: a. scope engineering. b. scope networking. c. scope management. d. scope resolution. ANS: C RATIONALE: Scope management includes defining the work that must be done as part of the project and then controlling the work to stay within the agreed-upon scope. Key activities include initiation, scope planning, scope definition, scope verification, and scope change control. 20. Identify the technique that defines the scope of an information system by identifying the business processes it will affect. a. Functional decomposition b. Functional accretion
c. Functional aggregation d. Functional management ANS: A RATIONALE: Functional decomposition is a frequently used technique to define the scope of an information system by identifying the business processes it will affect. It breaks a complex task into several simpler tasks. 21. A(n) _____ is a set of logically related tasks performed to achieve a defined outcome. a. milestone b. incident c. objective d. process ANS: D RATIONALE: A process is a set of logically related tasks performed to achieve a defined outcome. A process is usually initiated in response to a specific event and requires input, which it processes to create output. 22. Identify the naming convention used to define each process in a functional decomposition chart. a. Subject-object b. Verb-subject c. Noun-adjective d. Adverb-adjective ANS: B RATIONALE: To create the functional decomposition chart, begin with the name of the system and then identify the highest-level processes to be performed. Each process should be given a two-word “verbsubject” name that clearly defines the process. 23. _____ includes defining an achievable completion date that is acceptable to the project stakeholders, developing a workable project schedule, and ensuring the timely completion of the project. a. Slack time b. Critical time c. Project completion d. Time management ANS: D RATIONALE: Time management includes defining an achievable completion date that is acceptable to the project stakeholders, developing a workable project schedule, and ensuring the timely completion of the project. Successful project time management requires identifying specific tasks that project team members and/or other resources must complete. 24. Which of the following identifies the project activities that must be completed, the expected start and end dates, and what resources are assigned to each task? a. Project schedule b. Project milestone c. Project deadline
RATIONALE: The First Amendment to the U.S. Constitution was adopted to guarantee Americans’ rights to freedom of religion, freedom of expression, and freedom to assemble. It reads as follows: Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances. 8. Which of the following amendments to the U.S. Constitution comes into play in privacy issues if it appears that data is being gathered to track the movement of groups of people, as this could threaten their right to assemble or gather peacefully? a. The First Amendment b. The Second Amendment c. The Third Amendment d. The Fourth Amendment ANS: A RATIONALE: The First Amendment to the U.S. Constitution was adopted to guarantee Americans’ rights to freedom of religion, freedom of expression, and freedom to assemble. The First Amendment comes into play in privacy issues if it appears that data is being gathered to track the movement of groups of people, as this could threaten their right to assemble or gather peacefully. 9. The Fourth Amendment to the U.S. Constitution was adopted to _____. a. guarantee fair trial and other rights of an accused b. prohibit excessive bail as well as cruel and unusual punishment c. protect people from unreasonable searches and seizures of properties d. guarantee the rights to freedom of religion, freedom of expression, and freedom to assemble ANS: C RATIONALE: The Fourth Amendment was adopted to protect people from unreasonable searches and seizures of properties and reads as follows: The amendment states that the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. 10. The Supreme Court has ruled that American citizens are protected by the _____ when there is a “reasonable expectation of privacy.” a. First Amendment b. Second Amendment c. Third Amendment d. Fourth Amendment ANS: D RATIONALE: The Fourth Amendment was adopted to protect people from unreasonable searches and seizures of properties. The Supreme Court has ruled that American citizens are protected by the Fourth Amendment when there is a “reasonable expectation of privacy.”
11. Identify the system implemented by organizations to collect and store key data from every interaction they have with a customer. a. Customer relationship management b. Business intelligence management c. Access information management d. Enterprise resource management ANS: A RATIONALE: Organizations need basic information about existing customers to serve them better. It is hard to imagine an organization having a relationship with its customers without having data about them. Thus, many organizations implement customer relationship management (CRM) systems that collect and store key data from every interaction they have with a customer. 12. Which of the following systems is used by law enforcement agencies to snap photos and document the location of vehicles? a. Dashboard recognizer b. Stingray c. Automatic license plate reader d. Secure flight program ANS: C RATIONALE: Automatic license plate readers (ALPRs) snap photos and document the location of vehicles; some systems can also photograph drivers and passengers. ALPRs are used to snag red-light runners and to identify motorists with outstanding arrest warrants, overdue parking tickets, and delinquent tax bills. 13. _____ identify and reference people in photos and videos posted on Facebook. a. Facebook shares b. Facebook notifications c. Facebook messages d. Facebook tags ANS: D RATIONALE: Facebook tags identify and reference people in photos and videos posted on Facebook by its more than 1 billion users. Whenever such tags are created, the concerned people are notified about this. 14. Which of the following is true of a cookie? a. It saves shortcuts to Web sites and navigates to them within a few seconds. b. It helps users to browse incognito by hiding their browsing data. c. It passes the session identification number to a web server every time a browser makes a hypertext transfer protocol request. d. It captures browsing history for Web site customization and personalization purposes. ANS: D RATIONALE: Cookies capture browsing history for Web site customization and personalization purposes and for targeted marketing purposes. Many organizations that operate a Web site place a cookie—a
small file containing a string of characters that uniquely identifies a customer’s browser—on the computer hard drive of visitors to the organization’s site. 15. Which of the following is a national security agency surveillance program that collects Internet data including search histories? a. Stingray b. PRISM c. Secure flight program d. Backscatter imaging scanners ANS: B RATIONALE: PRISM is an NSA surveillance program that collects Internet data including search histories; photos; the contents of email, file transfers, and voice and video chats; and other Internet communication data. PRISM also gathers data related to telephone calls, including the numbers of both parties on a call and the location, date, time, and duration of the call. 16. Which of the following is true of stingray? a. It supports operations that require aerial surveillance. b. It is a national security agency surveillance program that collects Internet data including search histories. c. It impersonates a cell tower and forces all mobile phones within range to connect to it. d. It is an airline passenger prescreening program that checks travelers’ personal information. ANS: C RATIONALE: Stingray is a type of hardware device used to impersonate a cell tower, forcing all mobile phones within range to connect to it. The device can then capture information that can be used to identify and locate users and the phone numbers they call or text. 17. _____ create profiles on people based on aggregated data from public records such as business directories and social media networks. a. Data brokers b. Yellow pagers c. Data miners d. Drill-down analysts ANS: A RATIONALE: Data brokers are companies that create profiles on people based on aggregated data from arrest records, business directories, phone directories, social media networks, Web sites (including browsing histories), online product registration forms, credit card purchases, and other public records. Some data brokers have detailed profiles on tens of millions of consumers, which they then sell to each other, to advertisers, to the government, and even to individuals—typically without our direct knowledge.
18. ZoomMe is a company that accumulates data on people from various sources such as online product registration forms, credit card purchases, and other public records. It then uses these data to create profiles on people and sell them to advertisers. ZoomMe comes under the category of _____. a. data brokers b. data miners c. privacy analysts d. privacy brokers ANS: A RATIONALE: Data brokers are companies that create profiles on people based on aggregated data from arrest records, business directories, phone directories, social media networks, Web sites, online product registration forms, credit card purchases, and other public records. Some data brokers have detailed profiles on tens of millions of consumers, which they then sell to each other, to advertisers, to the government, and even to individuals. 19. David collects pieces of information about individuals garnered from data brokers. He then uses this information to threaten the individuals to publicly uncover their personal details until a monetary ransom is paid to him. Identify the tactic used by David to gather the information. a. Doxing b. Spamming c. Hacking d. Cracking ANS: A RATIONALE: Some bad characters use a tactic called doxing where they gather tidbits of information about an individual using information gleaned from data brokers and threaten to publicly expose their victims’ personal details unless some form of ransom (monetary or other) is paid. In other cases, doxing is used to publicize personal details about someone purely for the purpose of encouraging others to engage in harassment (online and in the real world) of the victim. 20. Identify the tactic through which an individual obtains information about an individual from data brokers and threatens to expose the victim’s personal details unless a ransom is paid. a. Hacking b. Spamming c. Doxing d. Cracking ANS: C RATIONALE: Bad characters use a tactic called doxing where they gather tidbits of information about an individual using information gleaned from data brokers and threaten to publicly expose their victims’ personal details unless some form of ransom (monetary or other) is paid. In other cases, doxing is used to publicize personal details about someone purely for the purpose of encouraging others to engage in harassment (online and in the real world) of the victim.
21. _____ is used to publicize personal details about someone purely for the purpose of encouraging others to engage in harassment of the victim. a. Hacking b. Doxing c. Phishing d. Distributed denial-of-service ANS: B RATIONALE: Bad characters use a tactic called doxing where they gather tidbits of information about an individual using information gleaned from data brokers and threaten to publicly expose their victims’ personal details unless some form of ransom (monetary or other) is paid. In other cases, doxing is used to publicize personal details about someone purely for the purpose of encouraging others to engage in harassment (online and in the real world) of the victim. 22. Which of the following must be adopted by a company to treat its customers’ data responsibly? a. The Code of Fair Information Practices b. The European Union Data Protection Directives c. The 1965 Organization for Data Brokering and Doxing (ODBD) privacy guidelines d. The 1957 Organization for Economic Cooperation and Development (OECD) privacy guidelines ANS: A RATIONALE: When dealing with customer data, strong measures are required to avoid customer relationship problems. One widely accepted approach to treating customer data responsibly is for a company to adopt the Code of Fair Information Practices and the 1980 Organization for Economic Cooperation and Development (OECD) privacy guidelines. 23. The _____ represent the international consensus regarding the collection and management of personal information. a. Code of Fair Information Practices b. 1980 Organization for Economic Cooperation and Development (OECD) privacy guidelines c. European Union Data Protection Directives d. 1965 Organization for Data Brokering and Doxing (ODBD) privacy guidelines ANS: B RATIONALE: When dealing with customer data, strong measures are required to avoid customer relationship problems. One widely accepted approach to treating customer data responsibly is for a company to adopt the Code of Fair Information Practices and the 1980 Organization for Economic Cooperation and Development (OECD) privacy guidelines. The 1980 Organization for Economic Cooperation and Development (OECD) privacy guidelines continue to represent the international consensus regarding the collection and management of personal information. 24. The _____ prohibits the transfer of personal data to non–European Union nations that do not meet the European adequacy standard for privacy protection. a. Code of Fair Information Practices b. European Data Transfer Act
c. Organization for Economic Cooperation and Development privacy guideline d. European Union Data Protection Directive ANS: D RATIONALE: The European Union Data Protection Directive prohibits the transfer of personal data to non–European Union nations that do not meet the European adequacy standard for privacy protection. Some of these standards require the creation of government data protection agencies, registration of databases with those agencies, and in certain cases, approval before personal data processing can begin. 25. Mapua Corp., a multinational corporation based in Germany, has decided to relocate its business to Japan. It faces difficulties in transferring the personal data of its employees from Germany to Japan. Which of the following is causing this difficulty? a. The 1980 Organization for Economic Cooperation and Development (OECD) privacy guidelines b. The European Union Data Protection Directive c. The Code of Fair Information Practices d. The Code of Fair Transportation Security ANS: B RATIONALE: The European Union Data Protection Directive prohibits the transfer of personal data to non–European Union nations that do not meet the European adequacy standard for privacy protection. Some of these standards require the creation of government data protection agencies, registration of databases with those agencies, and in certain cases, approval before personal data processing can begin. 26. A company based in Houston wants to expand its business to Rome. The human resources department will run background checks from Houston. Identify the condition that must be satisfied to make this possible. a. A “safe harbor” framework must be developed. b. The US Patriot Act must be implemented. c. A doxing framework must be developed. d. The Digital Millennium Copyright Act must be implemented. ANS: A RATIONALE: The U.S. Department of Commerce together with the European Commission developed a “safe harbor” framework to ensure that U.S. companies don’t experience interruptions in their dealings with countries in the European Union. U.S. organizations that can verify their policies and practices are compliant with the safe harbor’s requirements will be recognized as meeting the European adequate standard privacy for privacy protection. 27. Who is appointed by an organization to define, implement, and oversee a set of data privacy policies? a. A Chief Privacy Officer (CPO) b. A Chief Operations Officer (COO) c. A Database Privacy Officer (DPO) d. A Data warehouse Officer (DWO)