Chapter 07 Development Strategies Answer Key

True/False 1. Typically, customers purchase licenses that give them the right to use software under the terms of the license agreement. a. True b. False ANSWER: True 2. In a traditional systems development environment, security issues usually are less complex than with web-based systems, because the system operates on a private company network, rather than the Internet. a. True b. False ANSWER: True 3. Mission-critical IT systems should be outsourced only if the result is a cost-attractive, reliable business solution that fits the company's long-term business strategy. a. True b. False ANSWER: True 4. A subscription model charges a variable fee based on the volume of transactions or operations performed by the application. a. True b. False ANSWER: False 5. A company considering outsourcing must realize that the solution can be only as good as the outsourcing firm that provides the service. a. True 22. Due to complexity, IT generally takes longer to move offshore than manufacturing. a. True b. False ANSWER: False 23. SaaS increases the customer's need for software maintenance, operation, and support. a. Truc b. False ANSWER: False 24. Cost-benefit analysis determines how long it takes an information system to pay for itself through reduced costs and increased benefits. a. True b. False ANSWER: False 25. An evaluation model is a technique that uses a common yardstick to measure and compare vendor ratings. a. True b. False ANSWER: True 26. RFPs and RFQs have the same objective: to obtain vendor replies that are clear, comparable, and responsive, so that a well-informed selection decision can be made. a. True b. False ANSWER: True 27. There is a standard method for assigning the weight factors in an evaluation model. a. True b. False ANSWER: False 28. For horizontal applications or small systems, using a demo copy to enter a few sample transactions could be an acceptable application test. a. True b. False ANSWER: True 29. Benchmarking can be used to predict project-specific results. a. True b. False ANSWER: False 30. The system requirements document is the basis for presentations to management. a. True b. False ANSWER: True b. False ANSWER: True 6. Mergers and acquisitions typically have no impact on clients and customers of large, financially healthy firms. a. True b. False ANSWER: False 7. By designing a system in-house, companies can develop and train an IT staff that understands the organization's business functions and information support needs. a. Truc b. False ANSWER: True 8. Many firms feel that in-house IT resources and capabilities provide a competitive advantage because an in-house team can respond quickly when business problems or opportunities arise. a. True b. False ANSWER: True 9. Empowerment makes an IT department less productive because it must spend more time responding to the daily concerns of users and less time on high-impact systems development projects that support strategic business goals. a. True b. False ANSWER: False 10. A request for quotation (RFQ) is less specific than a request for proposal (RFP). a. True b. False ANSWER: False 11. Benchmark tests must precisely match the day-to-day situation at your company. a. True b. False ANSWER: False 12. An ASP provides more than a license to use a software application; it rents an operational package to the customer. a. True b. False ANSWER: True 13. A software package that can be used by many different types of organizations is called a vertical application. a. True b. False ANSWER: False 14. Although the traditional model of software acquisition still accounts for more software acquisition, a new model, called Hardware as a Help, is changing the picture dramatically. a. True b. False ANSWER: False 15. There is a major trend toward web-based architecture; it is rare to find firms that still rely on traditional systems. a. True b. False ANSWER: False 16. Cloud computing can be viewed as an online SaaS and data environment. a. True b. False ANSWER: True 17. Today's mobile devices have enough computing power to provide processing "at the edge," which means at the end of a network, in the user's hands. a. True b. False ANSWER: True 18. Compared with software developed in-house, a software package is almost always more expensive. a. True b. False ANSWER: False 19. A user application utilizes standard business software, such as Microsoft Word or Microsoft Excel, which has been configured in a specific manner to enhance user productivity. a. True b. False ANSWER: True 20. Onshoring is the transfer of information systems development, operation, or maintenance to an outside firm that provides these services, for a fee, on a temporary or long-term basis. a. True b. False ANSWER: False 21. Another term for Internet business services (IBSs) is managed hosting, because the outside firm (host) manages system operations. a. True b. False ANSWER: True