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Mgmt340 Chapter 3, 4 Essay

615 words - 3 pages

Chapter 3: Problems 2 & 4
2. What are some sources of risk in a systems analysis and design project, and how does a project manager cope with risk during the stages of project management?

2. Some sources of risk in a systems analysis and design project are resources, current technology, and rules and regulations. Sometimes, resources are not always available whether it be manpower or materials and software. Current technology can factor in as a risk because things can be outdated and might not be able capable of carrying out the work. Rules and regulations can prohibit certain codes from working because they might not follow the rules of code and regulations can prohibit certain things from happening during the entire process. A project manager copes with the risk during the stages of project management by acknowledging and understanding the risks that can be involved in ...view middle of the document...

Doing this would better prepare me on how to approach the project. The information needed would be current software information, features that want to be improved, and problems that exist within the current software. Speaking to upper management, software provider, and employees who utilize the system would help gain an even better understanding of what needs to be done.

Chapter 4: Problems 1 & 6
1. The economic analysis carried out during project identification and selection is rather superficial. Why is this? Consequently, what factors do you think tend to be most important for a potential project to survive this first phase of the life cycle?
1. The most important factor that is needed for a potential project to survive the first phase of the life cycle is the project initiation and assessment. Knowing what needs to be done in the project will dictate what kind of information and resources will be needed to get it completed. It will also allow the project to get initiated
6. Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present abreak-even analysis. At what point does breakeven occur?

6. Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon calculate the net present value of these costa data benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. AT what point does breakeven occur?
Breakeven occurs at 1.76 years. (See attached spreadsheet)

Bibliography
Jeff A. Essentials of Systems Analysis and Design, VitalSource eBook for DeVry University. Pearson Learning Solutions, 02/2012. VitalBook file.

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