Chapter 5 System Development and Program Change Activities

Review Questions

21. Who should be included in the group of independent evaluators performing the detailed
feasibility study?
Response: This is a thought provoking question and answers will vary. The following
individuals may be involved: The project manager, a member of the internal audit staff, a user
representative, and systems professionals who are not part of the project but have expertise in the
specific areas covered by the feasibility study.
22. What makes the cost-benefit analysis more difficult for information systems than for
most other investments an organization may make?
Response: The benefits of information systems are often very difficult to assess. Many
times the benefits are intangible, such as improved decision-making capabilities. Also,
maintenance costs may be difficult to predict. Most other investments that organizations make,
for example, the purchase of a new piece of equipment, tend to have more tangible and estimable
costs and benefits.
23. Classify each of the following as either one-time or recurring costs:
a. training personnel one-time
b. initial programming and testing one-time
c. systems design one-time
d. hardware costs one-time
e. software maintenance costs recurring
f. site preparation one-time
g. rent for facilities recurring
h. data conversion from old system to new system one-time
i. insurance costs recurring
j. installation of original equipment one-time
k. hardware upgrades recurring
24. Distinguish between turnkey and backbone systems. Which is more flexible?
Response: Turnkey systems are completely finished and tested systems that are ready for
implementation. Backbone systems provide a basic system structure on which to build, and. come
with the primary processing modules programmed. They are much more flexible than turnkey
systems, but are also more expensive and time consuming.
25. Discuss the relative merits of in-house programs versus commercially developed
software.
Response: Although in-house programs are very time consuming and expensive to
develop, and require a lot of skilled systems personnel, their many advantages lead firms to
develop in-house systems. In-house systems are not dependent upon an outside vendor for
updates and maintenance; these aspects are controlled locally. The in-house programs are
completely customized, whereas commercially developed software is not.