ISTM 320 ch 2

Strategic planning

The process of identifying long term organizational goals, strategies, and resources

Mission statement

A document or statement that describes the company for its stakeholders and briefly states its overall purpose, products, services, and values

Example of a mission statement

Google's mission statement is "to organize the world's information and make it universally accessible and useful"

Critical success factor

Vital objectives that must be completed for the enterprise to fulfill its mission

High-priority objectives

Also known as critical success factors

SWOT analysis

An examination of a company's strengths, weaknesses, opportunities, and threats

Business case

Refers to the reasons, or justification, for a proposal

Systems request

A formal appeal to the IT department that describes problems or desired changes in an information system or business process

Stronger controls

Must have adequate controls to ensure that data is secure and accurate

Encryption

A process where data is coded (converted into unreadable characters) so that only those with the required authorization can access the data

Biometric devices

Mechanisms used to uniquely identify a person by a retina scan or by mapping a facial pattern

Reduced cost

The current system could be expensive to operate or maintain due to technical problems, design weaknesses, or changing business demands

More information

The system might produce information that is insufficient, incomplete, or unable to support the company's changing information needs

Better performance

The current system might not meet the performance requirements

Improved customer service

Systems requests often aim to improve service to customers or users within the company

More support for new products and services

New products and services often require new types or levels of IT support

PESTEL framework

An analysis used in assessing external factors based on six environmental types: political, economic, social, technological, environmental, and legal

Government regulations

Federal, state, and local government regulations directly affect the design of corporate information systems

Technology impact

The rapid growth of telecommunications, increased computing power, and continuous miniaturization of electronic components has created new industries and technologies

Electronic product code (EPC)

Technology that uses RFID tags to identify and monitor the movement of each product from the factory floor to the retail checkout counter

Internet of Things (IoT)

Devices connected over a computer network that can send important information to centralized data storage and processing nodes

Electronic data interchange (EDI)

The exchange of business documents between computers using a standard electronic format

Just-in-time (JIT)

The exchange of delivery of information when and where it is needed

Blockchain

A distributed ledger system

Economic activity

Has a powerful influence on corporate information management.

Economic expansion

Firms must be ready with scalable systems that can handle additional volume and growth.

Customer relationship management (CRM)

A system implemented to integrate all customer-related events and transactions, including marketing, sales, and customer service activities.

Electronic proof of delivery (EPOD)

A supplier uses RFID tags on each crate, case, or shipping unit to create a digital shipping list to verify receipt of goods.

Strategic Plan

Sets its overall direction and impacts IT projects.

Top Managers

Usually initiates large-scale projects because significant resources are required.

User Requests

As users rely more heavily on information systems to perform their jobs, they will likely request even more IT services and support.

IT Department

IT staff members often make recommendations based on their knowledge of business operations and technology trends.

Existing Systems and Data

Errors or problems in existing systems can trigger requests for systems projects.

Company Finances

If the company is going through a difficult time, the project may be postponed until more cash is available to finance the effort.

Processing Systems Request

A systems review committee is a group of key managers and users responsible for evaluating systems requests.

Computer resources committee

A group of key managers and users responsible for evaluating systems requests; the term 'systems review committee' is also used.

Feasibility Studies

Uses 4 main yardsticks to measure a proposal.

Operational feasibility

A system that will be used effectively after it has been developed.

Economic feasibility

Achieved if the projected benefits of the proposed system outweigh the estimated costs involved in acquiring, installing, and operating it.

Total cost of ownership (TCO)

A number used in assessing costs, including ongoing support, maintenance, and acquisition costs.

Tangible costs

Expenses that have a specific dollar value, such as employee salaries and hardware purchases.

Intangible costs

Items that are difficult to measure in dollar terms, such as employee dissatisfaction.

Tangible benefits

Positive outcomes that can be measured in dollars, resulting from a decrease in expenses, an increase in revenues, or both.

Intangible benefits

Positive outcomes that are difficult to measure in dollars, such as a new website that improves a company's image.

Technical feasibility

When an organization has the resources to develop, purchase, install, or operate a system.

Schedule feasibility

A project can be implemented in an acceptable time frame.

Discretionary projects

Where management has a choice in implementing a project.

Nondiscretionary projects

Where management has no choice in implementing a project.

Nondiscretionary project

A project that management doesn't have a choice in implementing.

Preliminary investigation

Study system request and recommend specific action.

Fishbone diagram

A diagram that identifies causes of a problem.

Project scope

Defining the specific boundaries of a project.

Project creep

General scope definitions expand gradually without specific authorization.

Constraints

Factors that limit the project, such as present vs. future, internal vs. external, and mandatory vs. desirable.

Fact-finding

The process of gathering data to understand the project requirements.

Conduct interviews

A method of obtaining information from stakeholders.

Pareto chart

A chart used for visualizing elements in data analysis.

Scatter diagram

A type of XY chart used to analyze relationships between variables.

Feasibility evaluation

Assessing the operational, technical, economic, and schedule viability of a project.

Strategic planning

Identifying long-term organizational goals, strategies, and resources.

Mission statement

A statement that reflects a firm's vision, purpose, and values.

Critical success factor

Vital objectives that must be completed to fulfill a mission.

SWOT analysis

A framework for analyzing strengths, weaknesses, opportunities, and threats.

Systems request

A formal request asking IT for support.

PESTEL framework

A tool for assessing external factors: political, economic, social, technological, environmental, and legal.

Electronic product code (EPC)

RFID technology used to monitor products from factory to retail.

Internet of things (IoT)

A network of electronic devices that communicate over a computer network.

Electronic data interchange (EDI)

The exchange of business documents between computers.

Just in time (JIT)

A strategy that minimizes unnecessary inventory through computer-to-computer data exchange.

Blockchain

An efficient, secure, and transparent distributed ledger system.

Customer relationship management (CRM)

A system that integrates all customer-related events.

Total cost of ownership (TCO)

The total cost of support, maintenance, and acquisition of a system.