Deck 10: Methodologies for Purchased Software Packages

Question 1

When considering the purchase of a major software application,managers need to also consider the following potential downside:

A) It is typically more expensive than custom development.
B) The package seldom totally fits the company's needs.
C) It takes much longer to implement because of the software's complexity.
D) There is no documentation.

Answer 1

B

Question 2

The requirements definition for a purchased system is ________ detailed than the requirements used to build a prototype,and ________ detailed than the requirements needed to design a custom system.

A) more, less
B) less, more
C) more, more
D) less, less

Answer 2

A

Question 3

In addition to evaluating the vendors' responses from the formal RFP process,what other type of data collection for a leading candidate package is recommended?

A) software demonstration of the package
B) references from users of the software package in other companies
C) in-house user acceptance test results
D) both A and B

Answer 3

D

Question 4

With a fixed-price contract,the greatest risk is typically assumed by:

A) the purchasing company.
B) the vendor.
C) both the purchasing company and the vendor.
D) neither the purchasing company nor the vendor.

Question 5

With a cost-reimbursement type of contract,the greatest risk is assumed by:

A) the purchasing company.
B) the vendor.
C) both the purchasing company and the vendor.
D) neither the purchasing company nor the vendor.

Question 6

If an organization purchases a software package and does not modify or add to the package in-house,the construction phase then is often limited to which step?

A) system design
B) system building
C) system testing
D) feasibility analysis

Question 7

Being a Beta site usually means that the company:

A) does not need to create a requirements definition.
B) plays a significant role in user acceptance testing for the vendor.
C) performs all necessary maintenance on the package.
D) plays a significant role in determining the functionality of the package.

Question 8

A contract with a vendor usually does not include:

A) number of licenses.
B) payment schedule.
C) feasibility analysis.
D) software specifications.

Question 9

Which of the following statements about choosing alternative packages is false?

A) It is likely that there will be discrepancies between the organization's needs and the package's capabilities.
B) If modifications are made to a package, it will not impact what modifications may need to be made when the vendor releases an upgraded version of the package.
C) Procedural assumptions incorporated into a package may be better ways of doing things than the company's current procedures.
D) none of the above

Question 10

Which of the following is a factor that can affect the success of the installation plan for a purchased package?

A) vendor support before the installation
B) vendor support after Go Live
C) the number of different business units implementing the software and their locations
D) all of the above

Question 11

Options for modifying the code of a purchased package include:

A) a contract with the vendor.
B) a contract with a third party.
C) obtaining the source code from the vendor.
D) all of the above

Question 12

A change management program as part of an IT project is used to:

A) convert data to useable form.
B) avoid resistance by business users to a new system being implemented.
C) help with personnel shifts in a company.
D) negotiate a contract.

Question 13

Which of the following activities is not part of the installation step of the SDLC for a purchased package?

A) installation planning
B) data cleanup
C) acceptance testing
D) user Training

Question 14

Being an Alpha site usually means that the client company:

A) does not need to create a requirements definition.
B) plays a significant role in user acceptance testing for the vendor.
C) performs all necessary maintenance on the package.
D) plays a significant role in determining the functionality of the package.

Question 15

When matching a company's needs with the capabilities of a software package,an alternative to address a mismatch is:

A) modify the software package.
B) change business procedures to match the software.
C) both A and B
D) none of the above

Question 16

Which statement is not true about using an ASP purchasing option?

A) The purchasing organization does not purchase software licenses or install the software on its own equipment.
B) A 3rd-party organization delivers the software functionality via the Internet.
C) The purchasing organization typically pays to the ASP the up-front costs for the software licenses for all potential users.
D) Because the software is typically already installed on the ASP's host computer, the implementation is typically faster.

Question 17

Which criterion should a firm consider when evaluating candidate software packages?

A) functional capabilities of the packaged system
B) technical requirements the software must satisfy
C) business characteristics of the vendor firm
D) all of the above

Question 18

When comparing a traditional SDLC and a purchasing life cycle methodology,which step is found in a modified SDLC approach but not in a traditional SDLC?

A) feasibility analysis
B) requirements definition
C) establish evaluation criteria
D) system testing

Question 19

When purchasing a software package,a successful definition phase ends with a(n):

A) system testing plan.
B) vendor contract.
C) system design.
D) RFP.

Question 20

The acronym RFP stands for:

A) request for proposal.
B) requirement for program.
C) review of product.
D) request for product.

Question 21

For large enterprise system packages,it is common for companies to contract with a consulting firm,called a third-party implementation partner,to provide installation and maintenance support.

Question 22

Employee training is part of the installation step of the SDLC.

Question 23

Choosing between building a custom application and purchasing a software package is called a make-or-buy decision.

Question 24

What types of employees outside of an organization's IS department may be involved in a purchased software project?

A) business unit representatives who will use the system
B) attorneys
C) purchasing specialists
D) all of the above

Question 25

Successful implementation of a purchased software package typically depends upon:

A) how much the package costs.
B) being a Beta site for the vendor.
C) how well the Definition phase was conducted.
D) all of the above

Question 26

Which of the following is a long-term advantage of purchasing packaged systems?

A) infusion of external expertise
B) IS resources freed up for other projects
C) higher application quality
D) both A and C

Question 27

A primary advantage of purchasing an existing software package rather than developing a custom application is:

A) being the first to test the system.
B) less time needed for the implementation phase.
C) an application that takes into account unique organizational needs.
D) IS people resources can be dedicated to projects for systems that can't be purchased.

Question 28

Which is not a potential disadvantage of purchasing packaged systems?

A) costs more than if custom developed (in-house or contractor)
B) IS and business personnel's lack of detailed knowledge about how the package works
C) dependence on an external vendor
D) the potential for greater user resistance due to process changes to match the package

Question 29

Which of the following statements about purchasing enterprise system packages is false?

A) ERP systems require training on how to write interfaces and queries.
B) A risk of purchasing ERP systems is the dependence on a single vendor for all core business processes.
C) ERP systems typically involve a lot of custom interfaces to legacy systems.
D) ERP systems are very expensive to purchase.

Question 30

A company that elects to use a "hosted" application rather than to purchase the software application and host it on its own equipment,is making use of a(n)application service provider (or ASP).

Question 31

Which of the following statements about having a vendor perform package maintenance is false?

A) The vendor may go out of business before the clinet wishes to stop using the system.
B) Vendors continue to support all prior versions of a package.
C) New versions of a system may include undesired changes.
D) A well-designed contract with a vendor can result in considerable cost avoidance over the life of the system.

Question 32

An RFP should be sent to as many vendors as possible.

Question 33

Open source software is well-suited for very specialized applications and business processes.

Question 34

If extensive changes in business processes and procedures are needed to effectively implement the purchased software,business managers are typically asked to take the role of:

A) attorney.
B) project manager.
C) purchasing specialist.
D) all of the above

Question 35

When there are discrepancies between a package's capabilities and a company's needs,the only way to deal with the discrepancies is by modifying the package.

Question 36

Which is not an advantage of open source software?

A) Complete documentation for the software is freely available.
B) The acquisition cost is the same for one copy or thousands of copies.
C) The source code can be modified to add new features.
D) The organization is not dependent on one vendor or proprietary code.

Question 37

Which of the following is not a critical success factor for ERP project success?

A) Project leaders should have prior experience with large scale systems.
B) Third party consultants should transfer their knowledge, not just implement.
C) Top management should be engaged in the project to ensure managerial buy-in.
D) The ERP system should be customized to match current business processes.