Question 1

Custom applications require excellent project management and a proven methodology, and the project team should choose to develop a custom application only if it is certain that the underlying coordination and control mechanisms will be in place.

Accepted Answer

Custom application development involves a complex process and requires effective project management and a proven methodology to ensure the success of the project. It is essential to have well-coordinated and controlled mechanisms in place to ensure the delivery of a quality product on time and within budget. Therefore, it is important to evaluate whether the project team has the necessary skills and resources to handle the development of custom applications before making a decision.

Question 2

Enterprise resource planning (ERP) applications are small single-function software packages that are inexpensive and easy to install and have only minor problems and fast, easily recognizable benefits.

Accepted Answer

ERP applications are not small single-function software packages. They are complex and integrated software systems that cover all aspects of a business, including finance, human resources, inventory management, and supply chain management. ERP implementation can be expensive and time-consuming, and may face significant challenges and risks. The benefits of ERP may also take time to realize and may not be immediately recognizable.

Question 3

As many as 70% of companies with IT budgets over $5 million are currently outsourcing development of systems.

Accepted Answer

The answer of As many as 70% of companies with...

Question 4

When using the packaged software design strategy, substantial time can be saved because the project team no longer has to spend time defining the requirements of the new system.

Accepted Answer

The statement is false. Even if using packaged software, the project team still needs to define the requirements of the new system in order to ensure that the chosen software meets the needs of the organization. The team may also need to modify the software to fit specific requirements or integrate it with other systems.

Question 5

The design strategy that would be most logical to a firm with a very limited amount of in-house IS expertise is allow end-users to create the system.

Accepted Answer

Allowing end-users to create the system may result in a poorly designed and functioning system, as they may not have the necessary expertise and knowledge to understand the complex technical requirements and constraints involved in system design. It is better for the firm to outsource the design and development of the system to a professional IS vendor or consultant with the necessary expertise and experience to create a quality system that meets the firm's specific needs and goals.

Question 6

Object-oriented systems can send messages to a legacy system through the use of a package wrapper.

Accepted Answer

The answer of Object-oriented systems can send messages to a...

Question 7

A value added contract provides for flexibility, but may result in a larger than expected bill.

Accepted Answer

The answer of A value added contract provides for flexibility,...

Question 8

A disadvantage of outsourcing the application development process is that the organization may lose control over confidential information.

Accepted Answer

Outsourcing the application development process involves sharing sensitive information with external parties, which increases the risk of confidentiality breaches. The organization must ensure that proper security measures and contractual agreements are in place to mitigate this risk.

Question 9

Outsourcing eliminates all risks from the project.

Accepted Answer

Outsourcing carries its own set of risks such as communication barriers, time zone differences, cultural differences, lack of quality control, and dependency on a third-party.

Question 10

If in-house experience exists for all the functional and technical needs of the new system, it will be easier to outsource the building of the system, because the company employees with those skills will be able to quickly learn the new system with very little training.

Accepted Answer

Having in-house experience for all functional and technical needs does not necessarily make it easier to outsource the building of a new system. In-house expertise can indeed help with understanding and integrating the new system, but the decision to outsource depends on factors like cost, time, and the specific capabilities of the external vendor, not just on the ability of in-house staff to learn the new system.

Question 11

A company adopting an enterprise resource planning (ERP) application, has adopted the strategy of outsourcing.

Accepted Answer

Adopting an enterprise resource planning (ERP) application is a strategy for integrating and managing core business processes, not necessarily a strategy of outsourcing. Outsourcing involves hiring third-party vendors to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's core competencies.

Question 12

The three primary types of contracts that can be drawn to control the outsourcing deal are (1) a time and arrangements contract, (2) a fixed-price contract, and (3) a value-added contract.

Accepted Answer

This statement is true. The three primary types of contracts for outsourcing are time and arrangements, fixed-price, and value-added.

Question 13

When the business need is unique and the process is critical to the business, the most appropriate development strategy is packaged software.

Accepted Answer

When the business need is unique and the process is critical to the business, a custom software development strategy is more appropriate than packaged software. Packaged software is a pre-built software solution that may not fully meet the unique needs of a business, and may not offer the necessary flexibility for critical processes.

Question 14

Time and arrangements types of outsourcing contracts would be preferred when the client and the outsourcer have difficulty specifying the work required to complete the project.

Accepted Answer

Time and arrangements types of outsourcing contracts are preferred when the scope of work is not well-defined, and the client is not sure about the exact amount of work required to complete the project. The terms of the contract are based on the time and resources required to complete the project, rather than a fixed scope of work. This provides flexibility to the client and the outsourcer to adjust the scope of work as required during the project lifecycle.

Question 15

An advantage of outsourcing the application development process is that the organization may acquire technical skills and functional knowledge from the vendor.

Accepted Answer

When an organization outsources its application development process to a vendor, the vendor brings in its technical skills and functional knowledge to the organization, which can be a significant advantage for the organization. This can lead to the development of better quality applications and help the organization stay up-to-date with the latest technology trends.

Question 16

A(n) fixed price contract provides for a stable customer price, but requirements will be well defined by the outsourcer at the beginning of the contract period.

Accepted Answer

The statement is true. A fixed price contract means that the customer pays a set price for the outsourced services or products, regardless of any unforeseen circumstances that may affect the actual cost of providing them. This type of contract is appropriate when the requirements are well defined, as any changes or additions to the scope of work may incur extra costs for the outsourcer. Therefore, the outsourcer will typically work closely with the customer to ensure that the requirements are clearly specified and agreed upon before the contract is signed.

Question 17

A(n) value added contract, that is gaining in popularity, provides for the outsourcer to gain a percentage of the completed systems benefits.

Accepted Answer

A value added contract is a type of outsourcing contract where the outsourcer gains a percentage of the benefits achieved by the completed system. This type of contract is gaining in popularity as it aligns the interests of the outsourcer with that of the client, encouraging them to create a high-quality and efficient system.

Question 18

Many project teams believe that packaged software is the best way to create a system because they have complete control over the way the system looks and functions, and they can be flexible and creative in the way they solve business problems.

Accepted Answer

This statement is false. Packaged software limits the control and customization that project teams have over the system. While it may offer some flexibility and creative solutions, it is not a one-size-fits-all solution and may not meet the specific needs of a business. Custom software development offers more control and customization options for creating a system that meets specific business requirements.

Question 19

A workaround is a custom-built add-on program that interfaces with the packaged application to handle special needs.

Accepted Answer

A workaround is indeed a custom-built add-on program that interfaces with the packaged application to handle special needs.

Question 20

Custom development of software is usually the best strategy for common business needs, particularly when the business need is not unique and does not have special requirements.

Accepted Answer

Custom development of software may not always be the best strategy for common business needs, as there are often off-the-shelf solutions available that can meet those needs more efficiently and cost-effectively. Custom development may be necessary when there are unique or complex requirements that cannot be met by existing software solutions.

Quiz 7: Moving on to Design