Case Study

Week 2 Homework

Chapter 2

2) An organization that remotely hosts and runs computer applications for other companies, typically on a per-use or license basis: Application service provider (ASP)

3) The practice of turning over responsibility of some or all of an organization’s information systems applications and operations to an outside firm: Outsourcing

Chapter 3

2) An end product in a phase of the SDLC: Deliverable

a. How were Pine Valley Furniture’s projects initiated? What is the focus for each of the new systems? The project was first initiated at a meeting. The purpose of the customer tracking system is so it can track customer purchase activity and sales trends better. The purpose of the Webstore project is that it will help move the company into the twenty-first century by facilitating online furniture purchases, with an initial focus on corporate furniture buying.

b. Modify the Customer Tracking System’s economic feasibility analysis to reflect the modifications mentioned in this case problem. Use a discount rate of 10 percent. After the changes are made, what are the new overall NPV, ROI, and BEP?

Year 1 (50k-32k)/1.10= 16,363

Year 2 (50k-32k)/ 1.10^2= 39,859

Year 3 (50k-32k)/ 1.10^3= 13,523

Year 4 (50k-32k)/ 1.10^4= 12,294

Year 5 (50k-32k)/ 1.10^5= 11,176

1) What qualities have led to BEC’s success so far? They started with one store in South Carolina and they now are a $1.79 billion international chain with 2,000 locations through astute management of expansion. To be able to get so big like this, they must have a great manager and owners.

2) Is the IS organization at BEC poised to undertake significant systems development in the near future? I think that BEC is in a position to undertake significant systems development in their future if they stay successful. BEC has grown and currently has 2,000 locations and they are still growing. They already have divided their staff into different groups for both domestic and international...