Chapter 1 Exercises

1. What is information technology and why is it important?

Information technology (IT) is the use of any computers, storage, networking and
other physical devices, infrastructure and processes to create, process, store, secure and
exchange all forms of electronic data.Companies use information as a weapon in the battle
to increase productivity, deliver quality products and services, maintain customer loyalty,
and make sound decisions. In a global economy with intense competition, information
technology can mean the difference between success.
2. Why would a systems analyst have to act as a translator? What groups might be involved?
A systems analyst should act as a translator because they are involved in planning,
recommendation of systems and software, as well as, co-ordination of developments vital
in meeting business needs.
3. Write a business profile for a large business in your town. You can use your imagination to
supplydetails you might not know.
A business profile defines a companys overall functions, processes, organization,
products, services,customers, suppliers, competitors, constraints, and future direction.
Applebee's makes sure that even far-flung suburbs can have a neighborhood bar.
The company operates the largest casual-dining chain with about 2,000 of its
signature Applebee's Neighborhood Grill & Bar locations across the US (with a
few outposts in 15 other countries). Its eateries are primarily freestanding units
and sport interiors festooned with local memorabilia to give each location an
indigenous feel. The menu features beef, chicken, and pork items, as well as burgers,
pasta, and seafood. The chain is known for its selection of appetizers.
About 99% of Applebee's locations are franchised. Applebee's is owned by
casual and family dining operator.
4. What strategies are Wal-Mart and Lowes using to gain more online customers?
Walmart and lowes have expanded their Web-based marketing channels to increase
sales and serve customers better. This strategy combines the convenience of online
shopping and the alternative of hands-on purchasing for those who prefer that option. WalMart offers many shopping and pickup options, so customers can choose the method they
prefer.
5. Identify the main components of an information system. What is a mission-critical system?
The five key components of an information system are hardware, software, data,
processes, and people. Mission-critical system is an information system that is vital to a
companys operations.
6. Compare enterprise computing systems to transaction processing systems. Provide three
examples of each type of system.
Enterprise Computing Systems are companywide systems that take into account all data
from each location while transaction processing systems are operations that receive data
day-to-day based on how its generated. TP systems are normally single entities and do not
finish the entire process if a single task has been missed.

Chapter 1 Exercises
Enterprise Computing System - Wal-Marts inventory control system, Boeings
production control system, and Hilton Hotels reservation system
Transaction Computing System - Wal-Mart sells a candy bar, it marks one off the
inventory list. Boeing sells 1000 pieces of product, they update the workload.
Hilton Hotel has a guest stay a night in a suite, they verify all information and charge
them when they leave.
7. What are the four organizational levels common to many businesses? Which level typically
requiresdata that supports long-term strategic planning and the overall business enterprise?
What level ofworker might rely heavily on transaction processing systems?
Operational Employees, Supervisors & Team Leaders, Middle Managers and Knowledge
Workers, Top Managers.Top Managers typically need data that supports long-term strategic
planning. Operational Employees are the workers that most likely deal with TP systems.
8. Describe three systems development tools and three development methods.
The three Systems Development Tools are :
Modeling - produces a graphical representation of a concept or process that systems
developers can analyze, test, and modify.
Prototyping - tests system concepts and provides an opportunity to examine input, output,
and user interfaces before final decisions are made.
Computer-Aided systems engineering (CASE) tools - provide an overall framework for
systems development and support a wide variety of design methodologies, including
structured analysis and object-oriented analysis.
The three system development methods are
Structured analysis Structured analysis uses a series of phases to plan, analyze,
design, implement and support an information system.
Object- Oriented Analysis - combines data and the processes that act on the data
into things called objects.
Agile Methods - attempt to develop a system incrementally, by building a
series of prototypes and constantly adjusting them to user requirements.
9. What are the phases of the SDLC waterfall model? Who was Barry Boehm, and what did
he have to say about spiral models?
The waterfall model is a sequential design process, used in software development
processes in which progress is seen as flowing steadily downwards (like a waterfall)
through the phases of conception, initiation, analysis, design, construction, testing,
production/implementation and maintenance.
Spiral models initially were suggested in the 1990s by Barry Boehm, a noted software
engineering professor. He stated that each iteration, or phase, of the model must have a
specific goal that is accepted, rejected, or changed by the user, or client. Thus, each

Chapter 1 Exercises
iteration produces feedback and enhancements, which enable the team to reach the overall
project goal. Typically, each iteration in a spiral model includes planning, risk analysis,
engineering, and evaluation. The repeated iterations produce a series of prototypes, which
evolve into the finished system. Notice that these phases resemble SDLC tasks, which also
can be iterative.
10. Review the IBM history on page 4, and then consider the powerful statement shown in
Figure 1-33on page 33. Is there a connection between the two? Why or why not?
There is a connection between the two. It is referring to how Herman Hollerith
changed the business world with his punch card technology. He did that all by himself but
now his company offers the brains of many other intelligent workers to all collaborate with
one another so that any employee may flourish.