Chapter 2: Analyzing the Business Case

Biometric Devices

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

Blockchain

Distributed ledger system; technology underlying Bitcoin

Business Case

Refers to the reasons, or justification, for a proposal

Case for Action

Part of the preliminary investigation report to management that summarizes project requests & makes specific recommendations

Computer Resources Committee/System Review Committee

Group of key managers & users responsible for evaluating systems requests

Constraint

Requirement or condition that the system must satisfy or an outcome that the system must achieve

Critical Success Factors

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

CRM (Customer Relationship Management)

Many companies implement systems to integrate all customer-related events & transactions

Discretionary Projects

Where management has a choice in implementing a project

Economic Feasibility

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

EDI (Electronic Data Interchange)

Exchange of business documents between computers using a standard electronic format

EPC (Electronic Product Code)

Technology that uses RFID tags to identify & monitor movement of each individual product

EPOD (Electronic Proof of Delivery)

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

Encryption

Process where data is coded so only those with required authorization can access the data

Fishbone Diagram/Ishikawa Diagram

Analysis tool that represents the possible causes of a problem as a graphical outline

Intangible Benefits

Positive outcomes that are difficult to measure in dollars

Intangible Costs

Items that are difficult to measure in dollar terms

IOT (Internet-of-Things)

Devices connected to one another over a computer network

JIT (Just-in-Time)

Exchange or dilvery of information when & where it is needed

Mission Statement

Document or statement that describes the company for its stakeholders & briefly states the company’s overall purpose, products, services, & values

Nondiscretionary Projects

Where management has no choice in implementing a project

Operational Feasibility

System that will be used effectively after it has been developed

Pareto Chart

Vertical bar graph named for a 19th century economist; bars represent various causes of a problem arranged in descending order so the team can focus on most important causes

Preliminary Investigation/Feasibility Study

Initial analysis to clearly identify nature & scope of the business opportunity or problem

Project Creep

Process by which projects with very general scope definitions expand gradually without specific authorization

Project Scope

Specific determination of a project;s boundaries or extent

Scatter Diagram/XY chart

Tool used by system analysts to graphically show correlation between 2 variabled

Schedule Feasibility

Project can be implemented in an acceptable time frame

Strategic Planning

Process of identifying long-term organizational goals, strategies, & resource

SWOT Analysis

Examination of a company’s strengths, weaknesses, opportunities, & threats

Systems Request

Formal appeal to IT dept that describes problems or desired changes in an information system or business process

Systems Review Committee

Group of key managers & users responsible for evaluating system requests

Tangible Benefits

Positive outcomes that can be measured in dollars; decrease in expenses, increase in revenues

Tangible Costs

Expenses that have a specific dollar value

Tangible Feasibility

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

TCO (Total Cost of Ownership)

Number used in assessing costs (ongoing support, maintenance costs, acquisition costs)