MISY5330 Final questions with 100% correct answers graded A+

MISY5330 FinalDefinition of IT-enabled value - correct answer Tangible and intangible Can be significant Can be variable across organizations Can be diverse across IT proposals A single IT Investment can have a diverse value proposition Different IT Investments have different objectives and hence different value propositions and value assessment techniques Tangible IT Value Measures - correct answer Can be measured in terms of dollars (i.e. revenue increase, reduction in labor costs), process improvement(fewer errors, faster results), and strategically important operational and market outcomes (reduction in turnover, increase in patient satisfaction). Intangible IT value measures - correct answer Improved decision making, communication, compliance, collaboration, agility, becoming more "state of the art" and customer friendly 4 types (classes) of investment - correct answer Transformation (effect a significant improvement in overall performance or change the organization's nature) Renewal (intended to upgrade core IR infrastructure and applications or reduce the costs or improve IT quality) Process Improvement (sought to improve the operations of an organization) Experiments (designed to evaluate nenw information technologies and test new types of applications) IT project proposal - correct answer Cornerstone in examining value. To achieve value, alignment with organizational strategies must occur, factors for sustained IT excellence must be managed, budget processes for making choices between investments must exist, projects must be well managed. Simply, the proposal describes the value that will result Two common financial measures - correct answer Net present value (NPV) and Internal rate of return (IRR) Net Present Value (NPV) - correct answer calculates the total discounted net cash flows minus the initial cost of an investment project. If the NPV is positive, then the project is viable on financial grounds. Internal Rate of Return (IRR) - correct answer the discount rate that results in an NPV of zero for a project, aka the present value of an investment's future cash flow equals the cost of the investment Common Proposal Problems - correct answer Fractions of effort Reliance on Complex Behavior Unwarranted optimism Shaky extrapolations Underestimating the effort Fairy Tale Savings Failure to account for post-implementation costs Fractions of Effort - correct answer (saving fractions of staff effort does not always lead to salary savings because there may be no practical way to realize the savings) Reliance on Complex Behavior - correct answer (People do not always behave as we want and may not readily adopt systems) Unwarranted optimism - correct answer (4 mistake make up: Assumption nothing will go wrong, Assumption of full control of all variables, belief that its known exactly what changes in work processes and features will be present, belief everyone can be dedicated to the project) Shaky extrapolations - correct answer Unfounded belief that benefit seen in first year or time point will consistently continue when it may actually just decline Underestimating the effort - correct answer No consideration of time and effort of non IT staff. I.e user trainings and troubleshooting