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IST 301 test 3

systems development life cycle (SDLC)

also known as the "waterfall model." It's a series of well-defined phases performed in sequence that serves as a framework for developing a system or project.

planning phase

which is one of the most crucial phases of the SDLC model, the systems designer must understand and define the problem the organization faces, taking care not to define symptoms rather than the The problem can be identified internally or externally.


is the measure of how beneficial or practical an information system will be to an organization and should be measured continuously throughout the SDLC process.

Internal users

are employees who will use the system regularly, and they can offer important feedback on the system's strengths and weaknesses.

External users

aren't employees but do use the system; they include customers, contractors, suppliers, and other business partners. Although they aren't normally part of the task force, their input is essential.

Joint application design (JAD)

is a collective activity involving users, top management, and IT professionals. It centers on a structured workshop (called a __ session) where users and system professionals come together to develop an application. It involves a detailed agenda, visual aids, a leader who moderates the session, and a scribe who records the specifications. It results in a final document containing definitions for data elements, workflows, screens, reports, and general system specifications. An advantage of the __ approach is that it incorporates varying viewpoints from different functional areas of an organization to help ensure that collected requirements for the application aren't too narrow and one-dimensional in focus.

feasibility study

analysts investigate a proposed solution's feasibility and determine how best to present the solution to management to get funding.It usually has five major dimensions, discussed in the following sections: economic, technical, operational, scheduling, and legal.

Economic feasibility

assesses a system's costs and benefits.

Development costs

Hardware and software, Software leases or licenses, Computer time for programming, testing, and prototyping, Maintenance costs for monitoring equipment and software, Personnel costs—salaries for consultants, systems analysts, network specialists, programmers, data entry clerks, computer operators, secretaries, and technicians, Supplies and other equipment, Training employees who will be using the system.

Tangible benefits

can be quantified in terms of monthly or annual savings, such as the new system allowing an organization to operate with three employees rather than five or the new system resulting in increased profits.

Intangible benefits

are difficult to quantify in terms of dollar amounts, but if they aren't at least identified, many information system projects can't be justified. Some examples of intangible benefits include improved employee morale, better customer satisfaction, more efficient use of human resources, increased flexibility in business operations, and improved communication

Technical feasibility

is concerned with the technology that will be used in the system.

Operational feasibility

is the measure of how well the proposed solution will work in the organization and how internal and external customers will react to it.

Scheduling feasibility

is concerned with whether the new system can be completed on time.

Legal feasibility

is concerned with legal issues.

requirements-gathering and analysis phase

analysts define the problem and generate alternatives for solving it. During this phase, the team attempts to understand the requirements for the system, analyzes these requirements to determine the main problem with the current system or processes, and looks for ways to solve problems by designing the new system.

object-oriented approach

combines process and data analysis, and the line between analysis and design is so thin that analysis and design seem to be a single phase instead of the two distinct phases

SSAD approach

treats process and data independently and is a sequential approach that requires completing the analysis before beginning the design.

Data flow diagram (DFD)

Analyzes process analysis and design, Helps break down a complex process into simpler, more manageable, and more understandable subprocesses; shows how data needed by each process flows between processes and what data is stored in the system; it also helps define the system's scope


Analyzes process analysis, Illustrates the logical steps in a process but doesn't show data elements and associations; it can supplement a DFD and help analysts understand and document how a process works

Context diagram

Analyzes process analysis and design, Shows a process at a more general level and is helpful for showing top management and the task force how a process works

Conceptual data model Data analysis (such as an entity relationship model)

Analyzes data analysis, Helps analysts understand the data requirements a system must meet by defining data elements and showing the associations between them

design phase

analysts choose the solution that's the most realistic and offers the highest payoff for the organization. Details of the proposed solution are outlined, and the output of this phase is a document with exact specifications for implementing the system, including files and databases, forms and reports, documentation, procedures, hardware and software, networking components, and general system specifications. For large projects in particular, CASE tools (discussed in the next section) are helpful in the analysis and _ phase.

conceptual design

is an overview of the system and doesn't include hardware or software choices.

logical design

makes the conceptual design more specific by indicating hardware and software, such as specifying Linux servers, Windows clients, an object-oriented programming language, and a relational DBMS

physical design

is created for a specific platform, such as choosing Dell servers running Ubuntu Linux, Dell laptops running Windows 7 and Internet Explorer, Java for the programming language, and SQL Server 2008 for the relational DBMS.

computer-aided systems engineering (CASE) tools

tools to automate parts of the application development process. These tools are particularly helpful for investigation and analysis in large-scale projects because they automate parts of the design phase. Analysts can use them to modify and update several design versions in an effort to choose the best version

CASE Tools

__ usually include the following output: Specifications documents, Documentation of the analysis, including models and explanations, Design specifications with related documentation, Logical and physical design documents based on the conceptual design, Code modules that can be incorporated into the system


has been around for many years in physical science because building a small working model first is easier and less expensive than building the entire system.

proof-of-concept prototype

If a system isn't technically feasible or appears to be unfeasible, a prototype can be used to show users that a particular task can be done

selling prototype

Prototypes are sometimes used to sell a proposed system to users and management by showing some of its features and demonstrating how beneficial it could be to the organization.

Prototyping is usually done in four steps

# Define the initial requirements.
# Develop the prototype.
# Review and evaluate the prototype.
# Revise the prototype.

Prototyping Advantages

# They provide a method for investigating an environment in which the problem is poorly defined and information is difficult to gather.
# They reduce the need for training information system users because the users are involved in developing the system.
# They reduce costs because building a model is less expensive than building the complete system. If users and top management decide the system shouldn't be developed, the organization hasn't lost all the money that would have been spent on building a complete system.
# They increase the chance of the system's success by encouraging users' involvement.
# They are easier to modify than a complete system.
# They improve documentation because users and designers can walk through several versions of the system.
# They improve communication among users, top management, and information systems personnel because seeing a concrete model often prompts potential users of the system to ask questions, express opinions, point out shortcomings and strengths, and so forth.

Prototyping Disadvantages

# Developing them might require more support and assistance from users and top management than they're willing to offer.
# They might not reflect the final system's actual operation and, therefore, be misleading.
# Developing them might lead analysts and designers to forego comprehensive testing and documentation. If the prototype works, the team might be convinced that the final system will work, too, and this assumption can be misleading.

implementation phase

the solution is transferred from paper to action, and the team configures the system and procures components for it

Tasks of implementation phase

# Acquiring new equipment
# Hiring new employees
# Training employees
# Planning and designing the system's physical layout
# Coding
# Testing
# Designing security measures and safeguards
# Creating a disaster recovery plan


an organization hires an external vendor or consultant who specializes in providing development services. This approach can save the cost of hiring additional staff and meet the demands for more timely development of information systems projects.


the process of outsourcing tasks that are traditionally performed by employees or contractors to a large group of people (a crowd) through an open call

Onshore outsourcing

The organization chooses an outsourcing company in the same country.

Nearshore outsourcing

The organization chooses an outsourcing company in a neighboring country, such as Canada or Mexico for an organization in the United States.

Offshore outsourcing

The organization chooses an outsourcing company in any part of the world (usually in a country farther away than a neighboring country), as long as it can provide the needed services.

Loss of control

Relying on the outsourcing company to control information system functions could result in the system not fully meeting the organization's information requirements.


If the organization becomes too dependent on the outsourcing company, changes in the outsourcing company's financial status or managerial structure could have a major impact on the organization's information system.

Vulnerability of strategic information

Because third parties are involved in outsourcing, the risk of leaking confidential information to competitors increases.

maintenance phase

the information system is operating, enhancements and modifications to the system have been developed and tested, and hardware and software components have been added or replaced.

SDLC is not approiate when

Lack of specifications—that is, the problem under investigation isn't well defined. • The input-output process can't be identified completely.
The problem is "ad hoc," meaning it's a one-time problem that's not likely to reoccur.
Users' needs change constantly, meaning the system has to undergo several changes until it satisfies their needs. The SDLC model might work in the short term, but in the long term, it's not suitable in this situation.

Service-oriented architecture (SOA)

is a philosophy and a software and system development methodology that focuses on the development, use, and reuse of small, self-contained blocks of codes (called services) to meet the software needs of an organization.

Rapid application development (RAD)

concentrates on user involvement and continuous interaction between users and designers. It combines the planning and analysis phases into one phase and develops a prototype of the system. RAD uses an iterative process (also called "incremental development") that repeats the design, development, and testing steps as needed, based on feedback from users.

Extreme programming (XP)

is a recent method for developing software applications and information system projects. Each function in the overall process is developed in a step by step fashion.

pair programming

where two programmers participate in one development effort at one workstation. Each programmer performs the action the other is not currently doing.

XP key features

# Customer and user satisfaction
# Simplicity
# Incremental process
# Responsiveness to changing requirements and changing technology
# Teamwork
# Continuous communication among key players
# Immediate feedback from users

Agile methodology

is similar to XP in focusing on an incremental development process and timely delivery of working software. However, there's less emphasis on team coding and more emphasis on limiting the project's scope.

The Agile Alliance

organization has developed guidelines for this method, which emphasizes collaboration between programmers and business experts, preferably with face-to-face communication, and working in teams.

Agile Alliance Manifesto

# Satisfy the customer through early and continuous delivery of valuable software.
# Welcome changing requirements, even late in development.
# Have business people and developers work together daily throughout the project.
# Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.
# Always attend to technical excellence. Good design enhances agility.
# At regular intervals, the team should reflect on how to become more effective, then tune and adjust its behavior accordingly.

Enterprise System

is an application used in all of the functions of a business that supports decision making throughout the organization.

Supply Chain

is an integrated network consisting of an organization, its suppliers, transportation company, and brokers used to deliver goods and services to customers.

Supply Chain Management (SCM)

is the process of working with suppliers and other partners in the supply chain to improve procedures for delivering products and services.

Product flow

Managing the movement of goods all the way from suppliers to customers; customer service and support are included in this flow.

Information flow

Overseeing order transmissions and delivery status updates throughout the order-processing cycle

Finances flow

Handling credit terms, payment schedules, and consignment and title ownership arrangements

Four key decisions of SCM

Location, Inventory, Production, Transportation

Electronic data interchange (EDI)

enables business partners to send and receive information on business transactions.

Internet enabled SCM improves

Purchasing, Transportation, Inventory Management, Order Processing, Customer Service, Production Scheduling


is a third-party exchange (a B2B business model) that provides a platform for buyers and sellers to interact with each other and trade more efficiently online.

E-marketplaces help give a competitive edge by

# Providing opportunities for sellers and buyers to establish new trading partnerships
# Providing a single platform for prices, availability, and stock levels that's accessible to all participants
# Solving time-constraint problems for international trade, and making it possible to conduct business around the clock
# Making it easy to compare prices and products from a single source instead of spending time contacting each seller
# Reducing marketing costs more than traditional sales channels can


is a marketplace owned and operated by a third party that provides an electronic catalog of products.

online auction

is a straightforward yet revolutionary business concept. By using the Internet, it brings traditional auctions to customers around the globe and makes it possible to sell far more goods and services than at a traditional auction.

reverse auctions

which invite sellers to submit bids for products and services. In other words, there's one buyer and many sellers: a one-to-many relationship. The buyer can choose the seller that offers the service or product at the lowest price.

Collaborative planning, forecasting, and replenishment (CPFR)

is used to coordinate supply chain members through point-of-sale (POS) data sharing and joint planning

Customer relationship management (CRM)

consists of the processes a company uses to track and organize its contacts with customers. The main goal of a __ system is to improve services offered to customers and use customer contact information for targeted marketing.

Salesforce Automation

Assists with such tasks as controlling inventory, processing orders, tracking customer interactions, and analyzing sales forecasts and performance. It also assists with collecting, storing, and managing sales contacts and leads

eCRM or web-based CRM

Allows Web-based customer interaction and is used to automate e-mail, call logs, Web site analytics, and campaign management. Companies use campaign management to customize marketing campaigns, such as designing a marketing campaign tailored to customers in southern California or customers in the 18-35 age bracket.

Survey Management

Automates electronic surveys, polls, and questionnaires, which is useful for gathering information on customers' preferences.

Automated Customer Service

Used to manage call centers and help desks and can sometimes answer customers' queries automatically.


is the process of satisfying customers' needs, building customer relationships, and increasing profits by designing goods and services that meet customers' preferences better. It involves not only customers' requests, but also the interaction between customers and the company.


which is somewhat different from personalization, allows customers to modify the standard offering, such as selecting a different home page to be displayed each time you open your Web browser.

Collaborative filtering (CF)

is a search for specific information or patterns using input from multiple business partners and data sources. It identifies groups of people based on common interests and recommends products or services based on what members of the group purchased or didn't purchase.

knowledge management system (KMS)

draws on concepts of organizational learning, organizational culture, and the best practices to convert tacit knowledge into explicit knowledge, create a knowledge-sharing culture in an organization and eliminate obstacles to sharing knowledge.


is an asset that should be shared throughout an organization to generate business intelligence and maintain a competitive advantage in the marketplace.

KMS help organizations

# Promote innovation by encouraging the free exchange of ideas.
# Improve customer service by reducing response time.
# Increase revenue by reducing the delivery time for products and services.
# Improve employee retention rates by rewarding employees for their knowledge.

Enterprise resource planning (ERP)

is an integrated system that collects and processes data and manages and coordinates resources, information, and functions throughout an organization.

ERPs offer these benefits

# Increased availability and timeliness of integrated information
# Increased data accuracy and improved response time
# Improved customer satisfaction
# Improved employee satisfaction
# Improved planning and scheduling
# Improved supplier relationship
# Improved reliability of information
# Reduction in inventory costs
# Reduction in labor costs
# Reduction in order-to-fulfillment time

ERPs has drawbacks of

high cost
difficulties in installation
extensive training
compatibility problems with legacy systems

CRM applications

Products such as Cloud Platform for CRM and Cloud Infrastructure for CRM are used for salesforce automation, sales management, and contact management.


A social networking and collaborative application that works with Sales Cloud. All users of Salesforce can access __ for no additional cost. Similar to Facebook Pages, __ enables groups to collaborate on projects, share information and documents, and control the privacy so that information is only shown to appropriate team members.

Sales Analytics

Sales Cloud enables management to discover which salespeople are closing the most deals and how long tasks take. Customizable dashboards offer instant access to real-time information, allow monitoring of critical factors on sales, marketing, service, and other departments, as well as produce consolidated analyses from a variety of data sources.

Service and Support

Service Cloud offers a customer portal, call center, and knowledge base. With information from these features, users can analyze who's asking for support and how long responses take, examine employee performance, and determine which reps handle most of the customer inquiries.

Marketing Automation

Includes Google Adwords, campaign management, marketing analytics, and marketing dashboards. Users can track multichannel campaigns, from generating sales leads to closing sales. Builder

Allows developers to create add-on applications that can be integrated into
applications and hosted by

Sales (ERP component)

Supplies information on sales and marketing

E-commerce (ERP component)

Provides B2C information related to order status and B2B information related to suppliers and business partners

CRM (ERP component)

Supplies information on customers and their needs and preferences

Accounting (ERP component)

Tracks financial information, such as budget allocations and debits and credits

Purchasing (ERP component)

Provides information related to the purchasing function, including e-procurement

Vendor integration (ERP component)

Integrates information for vendors, such as offering automated downloads of data on product pricing, specifications, and availability

Human resources (ERP component)

Provides information on assessing job candidates, scheduling and assigning employees, and predicting future personnel needs

Manufacturing (ERP component)

Supplies information on production costs and pricing

Supply Chain (ERP component)

Provides information on supply chain members, including suppliers, manufacturing, distribution, and customers

Inventory Management (ERP component)

Provides inventory status and inventory forecasts

Unified database (ERP component)

Collects and analyzes relevant internal and external data and information needed by other functions

Structured decisions

programmable tasks, can be automated because a well-defined standard operating procedure exists for these types of decisions.

Semistructured decisions

includes a structured aspect that benefits from information retrieval, analytical models, and information systems technology.

Unstructured decisions

are typically one-time decisions, with no standard operating procedure pertaining to them.

Management Support Systems (MSS)

Different types of information systems have been developed to support certain aspects and types of decisions. Each type is designed with its own goals and objectives.

Herbert Simon's Three phases of decision making

intelligence, design and choice

Intelligence phase

a decision maker (a marketing manager, for example) examines the organization's environment for conditions that need decisions. Data is collected from a variety of sources (internal and external) and processed. From this information, the decision maker can discover ways to approach the problem

Design phase

the objective is to define criteria for the decision, generate alternatives for meeting the criteria, and define associations between the criteria and the alternatives.

Alternatives come up with during the Design phase

# Assign more salespeople to the target market.
# Retrain and motivate current salespeople.
# Reassign current salespeople.
# Revamp the product to adjust to consumers' changing tastes and needs.
# Develop a new advertising campaign.
# Reallocate existing advertising to other media.

Choice Phase

During this phase, the best and most effective choice is made.

Implementation phase

the organization devises a plan for carrying out the alternative selected in the choice phase and obtains the resources to implement the plan.

Decision Support System (DSS)

s an interactive information system consisting of hardware, software, data, and models (mathematical and statistical) designed to assist decision makers in an organization.

Components of a DSS

database, model base, and an user interface.

DSS requirements

# Be interactive.
# Incorporate the human element as well as hardware and software.
# Use both internal and external data.
# Include mathematical and statistical models.
# Support decision makers at all organizational levels.
# Emphasize semistructured and unstructured tasks.

DSS engine

maintains and controls the DSS components

Model base

component includes mathematical and statistical models that, along with the database, enable a DSS to analyze information.

Model Base Management System (MBMS)

performs tasks similar to a DBMS in accessing, maintaining, and updating models in the model base.

Exception reporting analysis

This monitors the performance of variables that are outside a defined range, such as pinpointing the region that generated the highest total sales or the production center that went over budget.

Sensitivity analysis

This enables you to apply different variables, such as determining the maximum price you could pay for raw materials and still make a profit or determining how much the interest rate has to go down for you to be able to afford a $100,000 house with a monthly payment of $700.

Goal Seeking analysis

This is the reverse of what-if analysis. It asks what has to be done to achieve a particular goal—for example, how much to charge for a product in order to generate $200,000 profit, or how much to advertise a product to increase total sales to $50,000,000.

What-if analysis

This shows the effect of a change in one variable, answering questions such as "If labor costs increase by 4 percent, how is the final cost of a product affected?" and "If the advertising budget increases by 2 percent, what's the effect on total sales?"

Managerial designer

defines the management issues in designing and using a DSS. These issues don't involve the technological aspects of the system; they're related to management's goals and needs.

Technical designer

focuses on how the DSS is implemented, and usually addresses questions about data storage, file structure, user access, response time and security measures

Model Builder

is the liaison between users and designers. He or she is responsible for supplying information on what the model does, what data inputs it accepts, how the model's output should be interpreted, and what assumptions go into creating and using the model.

Benefits of a DSS

* Increase in the number of alternatives examined
* Fast response to unexpected situations
* Ability to make one-of-a-kind decisions
* New insights and learning
* Improved communication
* Improved control over operations, such as controlling the cost of production
* Cost savings from being able to make better decisions and analyze several scenarios (what-ifs) in a short period
* Better decisions
* More effective teamwork
* Time savings
* Better use of data resources

Executive Information Systems (EIS)

a branch of DSSs, are interactive information systems that give executives easy access to internal and external data and typically include "drill-down" features and a digital dashboard for examining and analyzing information.

Digital dashboard

which integrates information from multiple sources and presents it in a unified, understandable format, often charts and graphs. Digital dashboards and scorecards offer up-to-the minute snapshots of information and assist decision makers in identifying trends and potential problems.

Characteristics of a EIS

# Tailored to meet management's information needs
# Can extract, compress, filter, and track critical data
# Provides online status access, trend analysis, and exception reporting
# Offers information in graphical, tabular, and text formats
# Includes statistical analysis techniques for summarizing and structuring data
# Retrieves data in a wide range of platforms and data formats
# Contains customized application-development tools
# Supports electronic communication, such as e-mail and video conferencing

Reasons for using EIS

# Increase managers' productivity by providing fast and easy access to relevant information.
# Convert information into other formats, such as bar charts or graphs, to help managers analyze different business scenarios and see the effect of certain decisions on the organization.
# Spot trends and report exceptions. For example, a manager might use an EIS to gather data on profitability and production costs at a manufacturing plant and determine whether closing the plant is more beneficial than keeping it open.

Factors that lead to a failed EIS

# The corporate culture isn't ready, there's organizational resistance to the project, or the project is viewed as unimportant.
# Management loses interest or isn't committed to the project.
# Objectives and information requirements can't be defined clearly, or the system doesn't meet its objectives.
# The system's objectives aren't linked to factors critical to the organization's success.
# The project's costs can't be justified.
# Developing applications takes too much time, or the system is too complicated.
# Vendor support has been discontinued.
# Some of today's senior executives missed the computer revolution and might feel uncomfortable using computers. Ongoing education and increasing computer awareness should solve this problem.
# Executives' busy schedules and frequent travel make long training sessions difficult, don't allow much uninterrupted time for system use, and often prevent daily use of an EIS. The result is that senior executives are unlikely to use systems that need considerable training

Components of an EIS

adminstrative module for managing data access, a builder module for developers to configure data mapping and screen sequencing, and a runtime module for using the system.

Tasks that EIS is useful for

tracking performance, flagging exceptions, ranking, comparing, spotting trends, and investigating/exploring.

Group Support Systems (GSS)

which are intended to assist decision makers working in groups. These systems use computer and communication technologies to formulate, process, and implement a decision-making task and can be considered a kind of intervention technology that helps overcome the limitations of group interactions.


is to assist groups in communicating, collaborating, and coordinating their activities. It's intended more for teamwork than for decision support. Its a collection of applications that supports decision makers by providing access to a shared environment and information

Groupware Capabilities

# Audio and video conferencing
# Automated appointment books
# Brainstorming
# Database access
# E-mail
# Online chat
# Scheduling
# To-do lists
# Workflow automation

Electronic Meeting Systems (EMS)

enables decision makers in different locations to take part in the decision making process.

Advantages of a GSS

# Because decision makers don't have to travel as much and pay for planes, hotels, and meals, costs as well as stress levels are reduced.
# Because decision makers aren't traveling long distances, they have more time to talk with one another and solve problems.
# Shyness isn't as much of an issue in GSS sessions as it is in face-to-face meetings.
# Increasing collaboration improves the effectiveness of decision makers

Disadvantages of a GSS

# Lack of the human touch—Gestures, handshakes, eye contact, and other nonverbal cues can be lost, which can hinder the effectiveness of meetings. New developments in virtual reality technologies (discussed in Chapter 14) could solve this problem, however.
# Unnecessary meetings—Because arranging a GSS session is easy, there's a tendency to schedule more meetings than are necessary, which wastes time and energy.

Clinical groupware benefits

* Inexpensive to acquire and use
* Offers evidence-based guidance
* Routinely collects quality and performance measures
* Provides a collaborative workflow platform

Geographic Information System (GIS)

This system captures, stores, processes, and displays geographic information or information in a geographic context, such as showing the location of all city streetlights on a map.


Usually a section of a map, such as a particular zip code or a large tourist attraction


The intersections of lines on a map, such as the location of an airport or a restaurant


Usually a series of points on a map (a street or a river, for example)

Education Planning (GIS application)

Analyzing demographic data toward changing school district boundaries or deciding where to build new schools

Urban Planning (GIS application)

Tracking changes in ridership on mass-transit systems and analyzing demographic data to determine new voting districts, among many other uses.

Government (GIS application)

Making the best use of personnel and equipment while dealing with tight budgets, dispatching personnel and equipment to crime and fire locations, maintaining crime statistics.

Insurance (GIS application)

Combining data on community boundaries, street addresses, and zip codes with search capabilities to find information on potential hazards, such as natural disasters, auto-rating variables, and crime rate indexes.

Marketing (GIS application)

Pinpointing areas with the greatest concentration of potential customers, displaying sales statistics in a geographic context, evaluating demographic and lifestyle data to identify new markets, targeting new products to specific populations, analyzing market share and population growth in relation to new store locations, and evaluating a company's market position based on geographic location

Real Estate (GIS application)

Finding properties that meet buyers' preferences and price ranges, using a combination of census data, multi, ple listing files, mortgage information, and buyer profiles. GISs also help establish selling prices for homes by surveying an entire city to identify comparable neighborhoods and average sales prices. GISs can be used for appraisal purposes to determine relationships between national, regional, and local economic trends and the demand for local real estate

Transportation and Logistics (GIS application)

Managing vehicle fleets, coding delivery addresses, creating street networks for predicting driving times, and developing maps for scheduling routing and deliveries

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