Chapter 10 - Week 12

Chapter 10 Questions

Section 10.1 - Before You Go On… 1. What are some problems associated with assessing the costs of IT?

Some of the problems include allocating fixed costs to different IT projects. Also once a system is complete, more costs are brought forward with the repair and maintenance, and upgrading of the systems and software.

2. What difficulties accompany the intangible benefits from IT?

The inability to put a dollar value on it. To be successful a company must implement the new technology successfully, yet this is rarely the case and it also but be cutting edge technology.

3. Define NPV and ROI, and business case approaches.

NPV is Net present value which convents the future value of benefits to their present-value equivalent by "discounting" them fat organisations cost of funds.
ROI is Return on investment which is managements effectiveness in generating profits with their available assets.
Business Case Approach, a written document which is used to justify funding one or more specific applications for projects.

Section 10.5 - Before You Go On… 1. What type of companies provide outsourcing service?

Outsourcing services are provided mainly by large software companies for developing, operating and maintaining IT applications.

2. Define ASPs and list their advantages to companies using them.

ASP is Application service provider which is an agent/vendor which assembles software needed by enterprise and packages the software with services such as development, operations and maintenance.
Advantages include:
Save Costs.
Reduce software maintenance and upgrades
Reduce user training
Increase competitiveness

3. List some disadvantages of ASPs.

Disadvantages include:

-ASP might not offer adequate security protection
-Software not perfect fit for all desired applications
-Must make sure existing software and communications can work well with new ASP.

Section 10.6 - Before You Go On… 1. List the major steps of selection of a vendor and a software package.

-Step 1 Identify possible vendors
-Step 2 Determine the evaluation criteria
-Step 3 Evaluate Vendors and Packages
-Step 4 Choose the Vendor and Package
-Step 5 Negotiate Contract
-Step 6 Establish a service level agreement.

2. Describe a request for proposal (RFP).

RFP is a document that is sent to potential vendors inviting them to submit a proposal that describes their software package and explains how it would meet their company needs.

3. Describe SLAs

SLAs are formal agreements that specify how work is to be divided between the company and its vendors. Based on a set of agreed upon milestones, quality checks and what is situations.