LIBBY DELAY CIS 62 CHAPTER 1

Review Question 1. What is information technology, and why is it important to a business? ANSWER Information technology is the combination of hardware, software, and equipment that supports business operations, and improves productivity and protability.

Discussion Topic 1. Some experts believe that the growth in e-commerce will cause states and local governments to lose a signicant amount of sales tax revenue, unless Internet transactions are subject to sales tax. Do you agree? Why or why not? ANSWER Growth in e-commerce has caused, is causing, and will continue to cause osses l of sales tax for the state and local governments. There is a strong case to be made that legislative adjustments must be made to account for the fact that economists are predicting e-commerce sales to be $1.4 trillion by 2015.1 E-commerce sales are growing in the USA alone by 10% a year.2

1 2

http://www.invesp.com/blog/ecommerce/how-big-is-ecommerce-industry.html http://www.invesp.com/blog/ecommerce/how-big-is-ecommerce-industry.html

LIBBY DELAY CIS 62 CHAPTER 1

Project 3. Do a search on the Web to learn more about agile system development approaches and spiral models. Prepare a summary of the results and a list of the sites you visited. ANSWER The Spiral SDM was created by Barry Boehm in 1986 to combat the issue of forward momentum that comes alongside the Waterfall Model. The Spiral Model is systematic in nature and follows a specic process. The Spiral Model is also adept at performing risk analysis. The pros of the Spiral Model are that it is highly efficient and the process involves xing errors in the prototype during development, when a product is nished, it really is nished. It is versatile and will work for most projects. The cons are that the process is time consuming, sometimes at too high a cost.

The Agile SDM is a relatively newer model and is a much needed combination of structure and exibility. It is a faster model, which these days translates to being more lucrative for business that are trying to be the rst to sell new technologies. The Agile method is representative of its name- it IS agile. It adapts to new technologies and requirements and is a method best used by professionals who are hoping to perfect a process and dont mind the tiring trek through trial-and-error.

Sources: http://www2.accaglobal.com/pdfs/ studentaccountant/bakehouse0506.pdf http://en.wikipedia.org/wiki/ Spiral_model http://en.wikipedia.org/wiki/ Agile_software_development

LIBBY DELAY CIS 62 CHAPTER 1

Case Study New Century Health Clinic Assignments 1. Create an organization chart of the office staff using Microsoft Word or a similar program, or you can draw it by hand. In Word 2010 and Word 2007, click the Insert tab on the Ribbon, then Smart Art, then Hierarchy. ANSWER
Anita Davenport Office Manager

Fred Brown Payroll, Tax Reporting, Prot Distribution

Susan Gifford Patient Record Maintenance

Tom Capaletti Insurance Reporting and Accounting

Lisa Sung Appointment Book Maintenance

Carla Herrera Supplies

2. Identify at least three business processes that New Century performs, and explain who is responsible for the specic tasks. ANSWER: Insurance Reporting: Tom Capaletti Patient Record Maintenance: Susan Gifford Appointment Book Maintenance: Lisa Sung

3. Explain how New Century might use a transaction processing system, a business support system, and a user productivity system. For each type of system, provide a specic example, and explain how the system would benet the clinic. ANSWER: New Century could utilize a transaction processing system to process and track charges and insurance claims. That would greatly increase efficiency through error elimination and labor minimization. New Century could utilize a business support system to make necessary hirings when staff was running low and to see when payments would be issued and claims would be processed. New Century could utilize a user productivity system to increase overall efficiency throughout the office and support employees concerning their various projects and responsibilities.

LIBBY DELAY CIS 62 CHAPTER 1

4. During the systems development process, should New Century consider any of the following: B2B, vertical and horizontal system packages, or Internet-based solutions? Explain your answers. ANSWER: New Century will absolutely have to integrate a variety of solutions in order to remain competitive in the modern workplace. New Century has a business structure similar to several companies that I have worked for in the past. Emails and the New Century website will obviously use the Internet, as will Purchasing to price and order supplies. New Century will surely use EDI on the Internet, and also order prescriptions and manage shipping. Actions that would take place on a specically Horizontal System are the company Intranet, Database Management, and any Word Processing or Spreadsheets.