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Core Concepts of AIS 11th ed.

IT governance

process of ensuring that IT is used effectively, efficiently, and strategically

systems study

begins with a formal investigation of an existing information system

4 stages in the systems development life cycle

1) Planning and Investigation
2) Analysis
3) Design
4) Implementation, Follow up, and Maintenance

applications portfolio

may include an enterprise system, along with other specialized information systems, or it may consist of many separate systems for functional areas such as acct, mkt, and human resources

systems approach

broad point of view

steering committee

to provide a continuous interface, company's top management appoints a steering committee to work with each study team as it performs its tasks

preliminary investigation

when any systems appear to have problems, the study team performs a preliminary investigation of the system in question and advises on its finding

systems analysis

examination of a system in depth

general system goals

principles contribution to these are:
1) awareness that the benefits of the new system should exceed the costs
2) concern that the output of the system helps managers make better decisions
3) commitment to designing a system that allows optimal access to info
4) flexibility so that the system can accommodate changing info needs

top management systems goals

-AISs usually provide top managers with long-range budget planning data so they can make effective strategic decisions regarding future product-line sales or comparable business activities

operating management systems goals

much of the information required for operating managers' decisions is generated internally as a by-product of processing a company's accounting data

systems study

enable the study team to obtain a more complete understanding of the company's current operational information system and its environment
-identifying systems strengths and weaknesses
-retain strengths while minimizing weaknesses

feasibility evaluation

design team determines the practicality of alternative proposals
-only after this step is completed can the design team tackle the other steps
areas: technical, operational, schedule, legal, economic

technical feasibility

attempts to answer the question "What technical resources are required by a particular system?"

operational feasibility

examines its compatibility with the current operating environment

schedule feasibility

requires the design team to estimate how long it will take a new or revised system to become operational and to communicate this information to the steering committee

legal feasibility

are there any conflicts between a newly proposed system and the organization's legal obligations?

economic feasibility

attempts to assess whether the anticipated benefits of the system exceed its projected costs

detailed systems design

once the steering committee approves the feasibility of a general system plan the design team can begin work on a detailed systems design
-involves specifying the outputs, processing procedures, and inputs for the new system


developing a simplified model of a proposed information system

systems specifications report

after design team completes its work of specifying the inputs, outputs, and processing requirements of the new system, the members will summarize their findings in a systems specifications report

canned software

**very expensive to modify
-prewritten software

turnkey system

complete "ready to go system" with hardware and software

request for proposal

-send to vendors
-bid on parts/whole of project
-outlines specific requirements of the desired system

selection criteria

-performance capability of each proposed system
-costs and benefits of each system
-maintainability of each proposed system
-compatibility with existing system
-vendor support

performance capability

-have new system process old data - use stats
same data with each system
-benchmark test - systems performs a data processing teak that the new system must perform and then examine the outputs

costs and benefits

cost is hard to fact in**
benefits should outweigh costs


it costs 5 - 10 more times maintaining that acquiring

point scoring analysis

technical approach for evaluation hardware or software that meets most of a company's major requirements
-narrows down choices


-pay someone else to do something you can do yourself

advantages of outsourcing

-organization can focus on its core competencies while experts do the other work
-cost savings ***primary motivator

disadvantages of outsourcing

-inflexibility (contracts are almost all long term, 5-10 years) and (it staff is gone)
-loss of control
-losing competitive advantage

system implementation

"action phase"

implementation activities

1) prepare physical site
2) determine functional changes
3) select and assign personnel
4) train personnel
5) acquire and install computer equipment
6) establish internal controls
7) convert data files
8) acquire computer software
9) test computer software
10) convert to the new system

direct conversion

immediately discontinuing use of the old system and letting the new system sink or swim
-high risk
1) new system very simple and it should work
2) old system is so unreliable you have no faith in it

parallel conversion

operating new and old system for some peroid of time
-long enough to make sure new system works (3 cycles with same results)(6 months to 1 year)

modular conversion

new system is implemented in stages, one process or module at a time (can do each direct or parallel)

pilot conversion

one location at a time (each direct or parallel)

change management

most difficult issue in implementing a new system

program evaluation and review technique and gantt charts

can be and mostly are used together

program evaluation and review technique


critical path

shortest completion time of the entire project

slack time

amount of delay time that can occur in each non critical activity and still not delay the project

gantt charts

-no interrelationships or critical path

project management software

runs on desktop or notebook computers can perform these tasks easily and quickly, enable a project leader to plan and control implementation tasks and help a team install new system on time and within budget

post implementation review report

-learn from mistakes
-summarizes implementation team's findings

system maintenance

continues the tasks created by the initial follow up study, except that experts from the company's IT subsystem now perform the modifications exclusively

costs of new system

-20 - 30 percent of costs developing and implementing it
-70 - 80 percent maintaining it, typically on further modification or software updates

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