What is a major financial risk of choosing a software package for an enterprise system?

Correct answer: Extensive customization can negate the cost and time advantages of the package.

Explanation

While application software packages can save time and money, a significant risk arises when an organization's unique requirements necessitate extensive customization. This can lead to soaring costs and long implementation times, undermining the very reason for choosing a package in the first place.

Other questions

Question 1

Which of the following represents the most radical form of organizational change enabled by information technology?

Question 2

According to Chapter 13, what is the first step in the Business Process Management (BPM) lifecycle?

Question 3

What is the primary tool used in structured methodologies for representing a system's component processes and the flow of data between them?

Question 4

Which conversion strategy involves running the old system and its potential replacement together for a time until everyone is assured that the new one functions correctly?

Question 5

What is the primary drawback of rapid prototyping mentioned in the text?

Question 6

In object-oriented development, the concept that allows new classes to be created by choosing an existing class and specifying how the new class differs is known as:

Question 7

What does the acronym RAD stand for in the context of systems development?

Question 8

What is the primary reason General Motors (GM) decided to bring 90 percent of its IT infrastructure back in-house after previously outsourcing it?

Question 9

Which stage of systems development involves creating a detailed test plan, performing unit and system testing, and conducting acceptance testing?

Question 10

What is the primary purpose of a feasibility study during systems analysis?

Question 11

What is a major cause of system failure that is addressed by ensuring high levels of user involvement in the design effort?

Question 12

According to the text, what percentage of maintenance work typically consists of making user enhancements, improving documentation, and recoding for efficiency?

Question 13

What is the term for a detailed list of questions submitted to packaged-software vendors to determine how well the package meets the organization's needs?

Question 14

What is the estimated increase in the total cost of an offshore outsourcing project due to hidden costs, according to the 'worst-case' scenario presented in Figure 13.11?

Question 15

Which new approach for system building focuses on rapid delivery of working software by breaking a large project into a series of small subprojects completed in short periods?

Question 16

What is Responsive Web Design intended to solve?

Question 17

What is the primary characteristic of a 'paradigm shift' in organizational change?

Question 18

Which of the following is NOT a core activity in the systems development process described in the chapter?

Question 19

In the context of the systems development lifecycle, what is a 'pilot study' strategy?

Question 20

What is a significant risk associated with end-user development?

Question 21

What is the primary difference between structured methodologies and object-oriented development?

Question 22

Which of the following would NOT be considered a fourth-generation language tool for end-user development?

Question 23

What is the primary goal of joint application design (JAD)?

Question 25

What type of organizational change did Ford Motor Company achieve with its 'invoiceless processing' system?

Question 26

In the 'as-is' business process for purchasing a book from a physical bookstore described in Figure 13.2, what happens immediately after the clerk searches for a book and it is not found?

Question 27

Which phase of systems development consumes the most time and resources, according to the chapter?

Question 28

What type of testing is performed to determine whether discrete software modules will function together as planned?

Question 29

Which technology is NOT typically associated with Rapid Application Development (RAD)?

Question 30

What is a key benefit of component-based development?

Question 31

The systems development activity that translates design specifications into software program code is called:

Question 32

A six sigma quality standard represents a goal of no more than how many defects per million opportunities?

Question 33

What is a primary advantage of the prototyping systems development method?

Question 34

According to the 'as-is' process diagram for purchasing a book (Figure 13.2), what is the customer's first action?

Question 35

What does a data dictionary define in the context of structured analysis?

Question 36

The most common form of IT-enabled organizational change, which involves assisting employees with performing their tasks more efficiently and effectively, is called:

Question 37

What type of testing provides the final certification that a system is ready to be used in a production setting?

Question 38

In the context of MoneyGram's new process orientation, what were managers called who were responsible for the performance of an individual process like cash management?

Question 39

Which systems development approach is characterized by a formal, sequential, 'waterfall' model?

Question 40

What is the primary function of CASE (Computer-Aided Software Engineering) tools?

Question 41

What is the primary function of a structure chart in structured methodology?

Question 42

Which of the following is an example of a direct cutover conversion strategy?

Question 43

What is a primary advantage of using a commercial software package?

Question 44

In the Burton Snowboards case study, what process, which formerly took hours to complete, was reduced to 20 minutes?

Question 45

What is the primary focus of agile development methodologies?

Question 46

The process of changing from an old information system to a new one is called:

Question 47

What type of IT-enabled organizational change is characterized by the streamlining of standard operating procedures?

Question 48

In the Honam Petrochemical case study, what was a primary challenge with their existing reporting systems before the new BI solution was implemented?

Question 49

What is the end-user interface?

Question 50

In the MoneyGram case study, what was the primary technology selected to support their new global processes?