1. Describe the productivity paradox.
The productivity is a figure that explains the difficulty of measuring the productivity of technological investments. Measuring the productivity is difficult because there are so many variables to measure and nearly impossible to directly relate one variable to another. A time lag from when the investment is made and when the improvements take place is another part of the paradox. Redistribution is another part of the paradox. It explains how some technologies can take away production in one area and increase production in another with no overall increase. Finally, mismanagement of the technologies as just a temporary fix of a bigger problem in the firm is the last part of the paradox.
Review Questions
2. Describe how to make a successful business case, contrasting faith-, fear-, and fact-based arguments.
The best business case for information systems uses faith, fear, and fact based arguments. Faith based arguments are about the beliefs of the organizational strategy, competitive advantage, industry forces, customer perceptions, and market share. Fear based arguments are based on the notion that if the system is not implemented, the firm will lose out to the competition or go out of business. Fact based arguments are based on data, quantitative analysis, and indisputable facts.
3. Compare and contrast tangible and intangible benefits and costs.
A tangible cost or benefit is quantifiable and easily measured. And intangible cost or benefit is difficult to quantify. Lower cost would be tangible while better perception of the firm would be intangible.
4. Contrast the perspectives of different stakeholders involved in making information systems investment decisions.
Management is looking at big strategic focus and large projects. Steering committee is looking at organizational cross functions and riskier projects. User department is looking at a narrow, nonstrategic faster development. IS executive is looking at existing systems and isn’t concerned with the cost/benefit.
5. Define a proxy variable and give an example.
A proxy variable is an alternative measurement of outcomes, used when it is difficult to determine and measure direct effects. You can show how a new system will create more direct customer contact in a business where this is important while reducing administrative workloads as well in a business where administration is of low value.
6. What are the five phases of the systems development life cycle (SDLC)?
Systems planning and selection, systems analysis, systems design, systems implementation and operation, and systems maintenance.
7. List and describe five techniques used in requirements collection.
Interviews are used for to ask qualified people about the proposed system. Questionnaires are used to gather opinions from people informed about the operation. Observations are used to see what people are doing with the data during the job. Document Analysis is used to study business documents to discover issues and new policies. Joint Application Design is a group meeting based process for requirements collection.