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CHAPTER 01

CONCEPTS IN ACTION

1-A An Expensive False Start

  1. Why did this system fail?

Based on the information provided, the most likely cause of failure was that the IT department attempted to create a system without clearly understanding it would fit with the organization’sgoals, current business processes, and other information systems to provide value. The following specific errors support this conclusion:

  1. The proposal was written by the IT department. In order to build a successful system, the proposal must be written by a team that is representative of the various business units involved.
  1. The IT department proceeded with the project before it even knew if the project had been accepted. The acceptance of a project signals that all stakeholders agree that the proposed system provides value for the organization.
  1. Why would a company spend money and time on a project and then cancel it?

Once money has been invested on a project, there is a tendency to try to recover that investment by keeping the project alive once it becomes evident that it is flawed or even doomed. Personalities often become problematic, as team members give overly optimistic estimates in an effort to buy time and not appear to be part of a losing effort.

  1. What could have been done to prevent this?

The IT department should not have written the proposal without the active participation of representatives from the other business units as well as management. Even if there had been no choice, then the project should have never been allowed to proceed without it being formally accepted. Lastly, once it became evident that the project was in danger, a review committee should have been put together to determine whether the risk was worth the investment.

1–B Keeping Up with Consumer Electronics

  1. What external data analysis should a consumer electronics company use to determine marketplace needs and its abilities to compete effectively in a marketplace?

Market analysis is the process of gathering and processing information about a company’s external business environment in order to determine its actions and strategies. To gather this information, many techniques exist such as surveys and ad tracking. Additionally, companies often do benchmarking against their competitors and/or their products to obtain comparative information. Based on this information, the company can determine key issues such as the maximum time-to-market for a particular product line and how to create product differentiation.

  1. Staying one step ahead of competitors requires a corporate strategy and the support of information systems. How can information systems and systems analysts contribute to an aggressive corporate strategy?

The key to maintaining the initiative in the marketplace is to stay inside of your competitors’ decision cycle. This is to say that, all other things being equal, the company with the fastest SDLC wins. Systems analysts help accomplish this by forging solid relationships with key personnel in all business units, by developing efficient, robust and repeatable processes, and by staying current on all relevant and promising information technology. The information systems on which the systems analysts and their organizations rely are the facilitators for all this.

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