IT Strategic Planning and Systems Development Life Cycle, Exams of Accounting

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AF302 FINAL EXAM SOLUTIONS SEMESTER 1 - 2017

Question 1 – multiple choice

**1. B

2. C
3. B
4. C
5. C
6. C
7. C
8. C
9. B
10. A
11. C
12. A
13. C
14. C
15. A
16. A
17. B
18. A
19. A
20. D
21. C
22. C
23. C
24. A
25. B

Question 2 Short Answer Questions [25 marks]________**

1. Customer relationships management systems are very complex systems to develop. Many failures happen when firms try to create a cross-functional enterprise system that will integrate and data from a wide array of departments into one system. For example, integrating data from sales, marketing, manufacturing, customer service etc. is a daunting task. e enterprise. Organizations view cross-functional enterprise systems as a strategic way to use IT to share information resources and improve the efficiency and effectiveness of business processes, thus helping an e-business attain its strategic objectives. Building such seamless CRM systems to enable employees to see a “total picture” of a customer is difficult. Research shows that the major reason for high failure rates is lack of understanding and preparation. For example, many CRM projects are implemented without the proper participation of the business stakeholders involved – both employees

and customers are not prepared for the new processes or challenges that are part of a new CRM implementation.

Figure 12.2 shows the IT strategic planning process. The entire planning process begins with the creation of a strategic business plan. The long-range IT plan , sometimes referred to as the strategic IT plan , is then based on the strategic business plan. The IT strategic plan starts with the IT vision and strategy, which defines the future concept of what IT should do to achieve the goals, objectives, and strategic position of the firm and how this will be achieved. The overall direction, requirements, and sourcing—either outsourcing or insourcing—of resources, such as infrastructure, application services, data services, security services, IT governance, and management architecture; budget; activities; and timeframes are set for three to five years into the future. The planning process continues by addressing lower-level activities with a shorter time frame. The next level down is a medium-term IT plan , which identifies general project plans in terms of the specific requirements and sourcing of resources as well as the project portfolio. The project portfolio lists major resource projects, including infrastructure, application services, data services, and security services that are consistent with the long- range plan. Some companies may define their portfolio in terms of applications. The applications portfolio is a list of major, approved information system projects that are also consistent with the long-range plan. Expectations for sourcing of resources in the project or applications portfolio should be driven by the business strategy. Since some of these projects will take more than a year to complete, and others will not start in the current year, this plan extends over several years. The third level is a tactical plan , which details budgets and schedules for current-year projects and activities. In reality, because of the rapid pace of change in technology and the environment, short-term plans may include major items not anticipated in the other plans. The planning process just described is currently practiced by many organizations. Specifics of the IT planning process, of course, vary among organizations. For example, not all organizations have a high-level IT steering committee. Project priorities may be determined by the IT director, by his or her superior, by company politics, or even on a first-come, first-served basis. The deliverables from the IT planning process should include the following: an evaluation of the strategic goals and directions of the organization and how IT is aligned; a new or revised IT vision and assessment of the state of the IT division; a statement of the strategies, objectives, and policies for the IT division; and the overall direction, requirements, and sourcing of resources.

Figure12.2 IT strategic planning process BSC can be used to translate strategic plans and mission statements into a set of objectives and performance metrics that can be quantified and measured. BSC is used to clarify and update the strategy, align the IT strategy with the business strategy, and link strategic objectives to long-term goals and annual budgets. The astute student may realize that the balanced scorecard can be applied to link KPIs of IT to business goals to determine the impact on the business. The focus for the assessment could be, for example, the project portfolio or the applications portfolio. The balanced scorecard can be used to assess the IT project portfolio by listing projects along the vertical dimension, and specific measures, critical to what the organization needs to track, horizontally.

The systems development life cycle (SDLC) is the traditional systems development method for large IT projects, such as IT infrastructure or an enterprise system. The SDLC is a structured framework that consists of a sequential set of processes. Starting with an initial idea, the SDLC processes are requirements analysis, systems analysis and design, development and testing, implementation, and maintenance. Four conversion strategies are parallel, direct cut over, pilot, and phased.

In a parallel conversion , the old system and the new system operate simultaneously for a period of time. That is, both systems process the same data at the same time, and the outputs are compared. This type of conversion is the most expensive but least risky. In a direct conversion , the old system is cut off and the new system is turned on at a certain point in time. This type of conversion is the least expensive, but it is the most risky if the new system does not work as planned. A pilot conversion introduces the new system in one location to test it out. After the new system works properly, it is rolled out. A phased conversion introduces components of the new system, such as individual modules, in stages. Each module is assessed, and, when it works properly, other modules are introduced until the entire new system is operational.

5. It certainly would not be very appropriate or even productive to expect a new employee to work on a business software package that they have absolutely no experience with. User training could be in the form of very formal training where the employee is actually enrolled in a course where they are taught the specific functions of the software in question. Other times, organizations will train new employees by putting them with a knowledgeable employee who is very familiar with the software. The new employees could have a scheduled training time allocated over a number of days or weeks, or they may actually sit with the senior person and do hands-on job training where they are working on the software program while under supervision. Your company should provide you with full training on this software before you even begin to work on it. Without the proper training, mistakes will be made, frustration will mount, and both the organization and individual will suffer because of this. Proper end user training is crucial for the success of all parties.