Chapter Exercises s
Questions
1. What is information technology and why is it important? Suggest three fictitious headlines
that might be added to Figure 1-1 on page 2.
Information technology (IT) is a combination of
...
Chapter Exercises s
Questions
1. What is information technology and why is it important? Suggest three fictitious headlines
that might be added to Figure 1-1 on page 2.
Information technology (IT) is a combination of hardware and software products and
services that companies use to manage, access, communicate, and share information. Your
students should be able to suggest many interesting headlines. You might want to hold a
class contest and reward the most creative headline writers. (Pages 2, 4)
2. Why would a systems analyst have to act as a translator? What groups might be involved?
To succeed, analysts often must act as translators. For example, when they describe
business processes to programmers, they must speak a language that programmers will
understand clearly. Typically, the analyst builds a series of models, diagrams, decision
tables, and uses other descriptive tools and techniques. Similarly, when communicating
with managers, the analyst often must translate complex technical issues into words and
images that nontechnical people can grasp. To do this, the analyst uses various
presentation skills, models, and communication methods. (Page 29)
3. Write a business profile for a large business in your town. You can use your imagination to
supply details you might not know.
A business profile is an overview that defines a company’s overall functions, processes,
organization, products, services, customers, suppliers, competitors, constraints, and future
direction. Students should be able to identify a large local firm, supply the basic
information, and fill in the details. (Page 13)
4. What strategies are Wal-Mart and Lowes using to gain more online customers?
Most successful brick-and-mortar firms, such as Lowe’s, Costco, Target, and Wal-Mart,
have expanded their Web-based marketing channels to increase sales and serve customers
better. This strategy combines the convenience of online shopping and the alternative of
hands-on purchasing for those who prefer that option. Figure 1-11 shows several shoppingSystems Analysis and Design, Tenth Edition Page 2 of 27
and pickup options that Wal-Mart offers, so customers can choose the method they prefer.
(Page 11)
5. Identify the main components of an information system. What is a mission-critical system?
An information system has five main components: hardware, software, data, processes, and
people. A mission-critical system is one that is vital to a company’s operations. An order
processing system, for example, is mission-critical because the company cannot do
business without it. (Page 6)
6. Compare enterprise computing systems to transaction processing systems. Provide three
examples of each type of system.
Enterprise computing systems support company-wide data management requirements.
Airline reservations, asset management, and credit card billing systems are examples of
enterprise computing systems. Transaction processing (TP) systems process data generated
by day-to-day business operations. Examples of TP systems include customer billing,
accounts receivable, and warranty claim processing. (Page 15)
7. What are the four organizational levels common to many businesses? Which level typically
requires data that supports long-term strategic planning and the overall business enterprise?
What level of worker might rely heavily on transaction processing systems?
Four organizational levels are operational personnel, lower management, middle
management, and top management. Top managers need summary-level information; onetime, what-if information; and external information to support the strategic planning
process. Operational personnel are the main users of transaction processing systems.
(Page 15)
8. Describe three systems development tools and three development methods.
Systems analysts use modeling, prototyping, and computer-aided systems engineering
(CASE) tools. Modeling produces a graphical representation of a concept or process,
whereas prototyping involves the creation of an early working model of the information or
its components. A systems analyst uses CASE tools to perform various systems development
tasks.
Three popular system development methods are structured analysis, which is a
traditional method that still is widely used, object-oriented analysis (O-O), which is a more
recent approach that many analysts prefer, and agile methods, also called adaptive
methods, which include the latest trends in software development. (Page 21)
9. What are the phases of the SDLC waterfall model? Who was Barry Boehm, and what did
he have to say about spiral models?
The SDLC waterfall model consists of five phases: systems planning, systems analysis,
systems design, systems implementation, and systems operation and support. During the
systems planning phase, you identify the nature and scope of the problems discovered in
the systems request and conduct a preliminary investigation. The purpose of the systems
analysis phase is to learn exactly what takes place in the current system, determine and
fully document in detail what should take place, and make recommendations to
management on the alternative solutions and their costs. The purpose of the systems designSystems Analysis and Design, Tenth Edition Page 3 of 27
phase is to determine how to construct the information system to best satisfy the
documented requirements. Systems implementation is the phase during which the
information system actually is constructed.
Spiral models initially were suggested in the 1990s by Barry Boehm, a noted software
engineering professor. He stated that each iteration, or phase, of the model must have a
specific goal that is accepted, rejected, or changed by the user, or client. The spiral model
produces feedback and enhancements, which enable the team to reach the overall project
goal. Spiral model activities include planning, risk analysis, engineering, and evaluation.
The repeated iterations produce a series of prototypes, which evolve into the finished
system. Notice that these phases resemble SDLC tasks, which also can be iterative. (Pages
22-26)
10. Review the IBM history on page 4, and then consider the powerful statement shown in
Figure 1-33 on page 33. Is there a connection between the two? Why or why not?
IBM’s history truly is remarkable. IBM is a 100-year old global giant with a half-million
employees, numerous patents, and more Nobel Prize winners than any other IT firm ever.
How did this come to be? The answer might the equally remarkable statement by IBM’s
leaders, which is shown in Figure 1-33. It begins with the thought that “At this institution,
an individual can actually change the world.” The statement describes a culture that is the
foundation of IBM’s success. The bottom line is that a corporate culture like IBM’s will
attract, retain, and motivate the very best and brightest people. Game over. (Pages 4, 33)
Discussion Topics
1. Some experts believe that the growth in e-commerce will cause states and local
governments to lose tax revenue, unless Internet transactions are subject to sales tax. What
is one argument that supports this view, and one that opposes it?
This issue has sparked strong differences of opinion among national and state leaders,
consumer advocacy groups, and trade associations whose members offer online sales and
services. Those who believe that Internet transactions should not be taxed often point to
other sales channels, such as mail order firms that conduct no physical operations within a
state or locality, and therefore do not collect sales tax. Should the Internet be treated
differently? Opponents of a tax-free Internet often cite the impact on local and state
government, and suggest that all channels should operate on a level playing field. You
might ask your students to research and debate this issue. Also, you might follow this topic
as news occurs during the course.
2. Are top managers likely to be more effective if they have IT experience? Why or why not?
Some possible arguments for a “Yes” answer:
a. Information technology (IT) management has a broad understanding of the information
processing of the company instead of the narrower view held by managers from other
areas of the company.
b. IT management deals with all functional company areas so members of IT management
know and interrelate with the people who lead and who work in these areas. Because
they provide needed services to these areas, IT management personnel have the support
of the key personnel from these areas.Systems Analysis and Design, Tenth Edition Page 4 of 27
c. Information systems development and maintenance is complex and requires
extraordinary management skills to operate successfully. These same skills are
necessary in top-level management positions.
d. Computer technology dominates many companies today. Today's technology leaders
should be tomorrow's business leaders.
Some possible arguments for a “No” answer:
a. IT management is more comfortable dealing with computers and with procedures, and
less comfortable dealing with people. Top-level management positions require a strong
interest in people and strong skills in dealing with people.
b. Whether a firm is product-oriented or service-oriented, it must make a profit to survive.
Future company leaders should, therefore, come from the production, service, or
financial areas, because these areas are the most important to a company. Possibly, in
Internet-dependent firms, the best choice would be an IT manager — but only if he or
she had extraordinary business skills apart from technical ability.
c. It is unwise to restrict prospects for top-level management positions to one specific
area of the company. Competent leaders are apt to rise from many different
departments.
d. People who have worked in several different functional areas are better rounded than
those restricted to just one area. So, unless the IT manager has worked outside the IT
department, he or she essentially is a specialist and is at a disadvantage compared to
someone with more general knowledge and skills.
3. Should the IT director report to the company president, or somewhere else? Does it matter?
No clear organizational pattern exists. Perhaps the strongest case for having the IT
department report to the president is that information technology is a vital corporate asset,
and should not be “owned” by a particular department or function. IT can have a huge
impact on profitability, and deserves equal attention from the top executive.
However, not everyone agrees with this view, and many would argue that IT should
report to the chief financial officer, because financial functions require the most IT support.
Also, the operation of the IT department represents a large expense for most companies,
and the chief financial officer probably is in the best position to monitor and control this
expense.
4. Will online transactions eventually replace person-to-person contact? Why or why not?
IT professionals agree that computer technology is changing the way companies do
business. Many brick-and-mortar firms are launching large-scale B2B and B2C ventures
that profoundly will affect traditional business practices and operations. Few observers
think that IT will replace person-to-person contact totally, although many clerical and
administrative functions will become automated. The real question is how these changes
will affect people in an information-oriented society. Many observers feel that the
implications of huge quantities of information and 24/7 access can cut in both directions.
Reasonable people differ on these issues, and you might want to propose a debate among
your students. For additional background and viewpoints about the impact of computer
technology on traditional person-to-person interaction, students can perform research on
the Internet and compare the views of technology-based publications such as InfoWorld, toSystems Analysis and Design, Tenth Edition Page 5 of 27
mainstream business publications such as Fortune, Forbes, and the Harvard Business
Review, among others.
Projects
1. Contact four people at your school who use information systems. List their positions, the
systems they use, and the business functions they perform.
Students can perform this task as individuals or work in teams. It might be interesting to
compare and discuss the various ways in which the departments manage information.
2. Research newspaper, business magazine articles, or the Web to find IT companies whose
stock is traded publicly. Choose a company and pretend to buy $5,000 of its stock. Why did
you choose that company? What is the current price per share? Report each week to your
class.
To perform the task, students will need a basic understanding of the stock market. Sites
such as Yahoo! offer financial information and analysis links and resources. If students
need fundamental information about investing in stocks, you might direct them to the
material at www.free-financial-advice.net/stock-market.html. Industry leader Vanguard
also offers free online information about investing at www.vanguard.com. Also, many
school and community libraries can assist students in learning about financial terms and
concepts, including stock market investments.
3. Visit at least three Web sites to learn more about agile system development and spiral
models. Prepare a list of the sites you visited and a summary of the results.
Many sites describe and discuss agile methods. Students should have no trouble finding
material on agile methods and spiral models and preparing a summary of the results.
Several sites are shown in the text, and a simple search will produce a list of many more.
4. Explore the Critical Thinking Community Web site at criticalthinking.org. Identify three
important topics currently being discussed, and describe your findings.
You might encourage students to explore beyond the suggested link, and challenge them to
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