Chapter 2 Key Terms

Biometric Devices – A mechanism used to uniquely identify a person through retina scans or facial pattern mapping.

Blockchain – A distributed ledger system, the technology underlying Bitcoin.

Business Case – The reasons or justification for a proposal.

Call for Action – A section in the preliminary investigation report that summarizes project requests and makes specific recommendations.

Computer Resources Committee – A group of key managers and users responsible for evaluating system requests (also called the "systems review committee").

Constraint – A requirement or condition that the system must satisfy or an outcome it must achieve.

Critical Success Factors – Vital objectives that must be achieved for the enterprise to fulfill its mission.

Customer Relationship Management (CRM) – Systems that integrate all customer-related events and transactions, including marketing, sales, and customer service activities.

Discretionary Projects – Projects where management has a choice in implementing them.

Economic Feasibility – Achieved if the projected benefits of the proposed system outweigh the estimated costs.

Electronic Data Interchange (EDI) – The exchange of business documents between computers using a standard electronic format.

Electronic Product Code (EPC) – Technology that uses RFID tags to identify and monitor the movement of each individual product.

Electronic Proof of Delivery (EPOD) – A supplier uses RFID tags to create a digital shipping list to verify receipt of goods.

Encryption – A process where data is coded so that only those with authorization can access it.

Fishbone Diagram – An analysis tool that represents the possible causes of a problem graphically, also called an Ishikawa diagram.

Intangible Benefit – Positive outcomes that are difficult to measure in dollars but are important.

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

Internet of Things (IoT) – Devices connected to one another over a computer network.

Just-in-Time (JIT) – The exchange or delivery of information when and where it is needed.

Mission Statement – A document that describes a company for its stakeholders and states its purpose, products, services, and values.

Nondiscretionary Projects – Projects where management has no choice in implementing them.

Operational Feasibility – The effectiveness of a system after development.

Pareto Chart – A vertical bar graph used to identify the most important causes of a problem.

Preliminary Investigation – An initial analysis to identify the nature and scope of a business opportunity or problem.

Project Creep – The process by which projects expand gradually without specific authorization.

Project Scope – A specific determination of a project’s boundaries or extent.

Scatter Diagram – A tool used to graphically show the correlation between two variables, also called an XY chart.

Schedule Feasibility – The ability to implement a project within an acceptable timeframe.

Strategic Planning – The process of identifying long-term organizational goals, strategies, and resources.

SWOT Analysis – An examination of a company’s strengths, weaknesses, opportunities, and threats.

Systems Request – A formal appeal to the IT department for changes or enhancements in an information system.

Systems Review Committee – A group responsible for evaluating system requests. Also called the computer resources committee.

Tangible Benefits – Positive outcomes that can be measured in dollars.

Tangible Costs – Expenses that have a specific dollar value.

Technical Feasibility – When an organization has the resources to develop, install, and operate a system.

Total Cost of Ownership (TCO) – A number used in assessing costs, including ongoing support and maintenance.

XY Chart – A tool used to show the correlation between two variables, also called a scatter diagram.