EBK ESSENTIALS OF MIS
12th Edition
ISBN: 8220101459305
Author: LAUDON
Publisher: PEARSON
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Expert Solution & Answer
Chapter 12, Problem 4RQ
Explanation of Solution
Determining the project information system being good for the investment, it is required to calculate the benefits and costs.
Difference between tangible and intangible benefits:
The below is difference between the tangible and intangible benefits:
| Tangible benefits | Intangible benefits |
| Tangible benefits can be measured. | Intangible benefits cannot be measured. |
| The benefit that is obtained can be estimated in an accurate way. | The benefit that is obtained cannot be estimated in an accurate way. |
| They can be assigned with the monetary value. | They cannot be assigned with the monetary value. |
Six tangible benefits:
The below are the six tangible benefits:
- Productivity gets increased.
- Operational cost is lowered.
- Expenses of the computer get lowered.
- Outside vendor cost is being lowered.
- Professional and clerical costs get lowered.
- Increase in sales.
- Expenses get reduced.
- Cost of the facility gets reduced.
Six intangible benefits:
The below are the six intangible benefits:
- Utilization of the asset gets improved.
- Control over resources gets improved.
- Organization planning gets increased.
- Flexibility of the organization is improved.
- It is capable of getting timely information.
- Ability of learning the organization gets increased.
- Legal requirements are easily achievable.
- Employee’s good will is enhanced.
- Job satisfaction gets increased.
- Decision making and operation are improved.\
- Can obtain higher client satisfaction.
Major components of the information system plan:
- Information system plan is used to depict how the company’s business strategy and plan can be fit to match the overall business requirements of the company.
- The below are the major components of the information system plan and they are:
- Purpose of the plan:
- The overall plan structure based on the future needs with a strategic plan is being defined.
- Strategic business plan rationale:
- Based on the business needs of the current situation a plan is being designed.
- Current systems:
- The requirements that required for supporting the business process and functions are gathered.
- New development:
- Any new project that is required for the business and they infrastructure requirement capabilities are being satisfied.
- Management strategy:
- The strategies that are required to process the business is being developed.
- Plan Implementation:
- The difficulty that is faced in the implementation and how the process is done is being made.
- Budget requirement:
- The requirements, savings, financing and the acquisition cycle are being gathered.
- Purpose of the plan:
Usage of portfolio analysis and scoring model for establishing a worth system:
- Portfolio analysis and scoring models are utilized for evaluating the alternative information system projects.
- Alternative system projects are being evaluated with the help of portfolio analysis.
- It is used to account all the firm’s information system projects, assets that include infrastructures, contracts that get outsourced along with the licenses.
- The companies will be trying to improve information system portfolios by balancing the risk and return from their system investments.
- Using the analysis the management can determine the optimal mix of the investment risk and rewards obtained for their firm, risk gets balances, project that are high-reward are dealt safer and along with the lower reward projects...
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Chapter 12 Solutions
EBK ESSENTIALS OF MIS
Ch. 12.2 - Prob. 1CQ1Ch. 12.2 - Prob. 2CQ1Ch. 12.2 - Prob. 3CQ1Ch. 12.4 - Prob. 1CQ2Ch. 12.4 - Prob. 2CQ2Ch. 12.4 - Prob. 3CQ2Ch. 12.4 - Prob. 4CQ2Ch. 12 - What are the core problem-solving steps for...Ch. 12 - Prob. 2RQCh. 12 - Prob. 3RQ
Ch. 12 - 12-4 How should information systems projects be...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - The Warm and Toasty Heating Oil Company used to...Ch. 12 - Prob. 9HMPCh. 12 - Prob. 11HMPCh. 12 - Prob. 13CSQCh. 12 - Prob. 14CSQCh. 12 - Prob. 15CSQCh. 12 - Prob. 16CSQCh. 12 - Prob. 17CSQCh. 12 - Prob. 18MLMCh. 12 - Prob. 19MLM
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