The Apply Your Knowledge section contains four mini-cases. Each case describes a situation, explains your role, and asks you to respond to questions by applying what you learned in the chapter. 1 Last Chance Securities The IT director opened the department staff meeting today by saying, Ive got some good news and some bad news. The good news is that management approved the payroll system project this morning. The new system will reduce clerical time and errors, improve morale in the payroll department, and avoid possible fines and penalties for noncompliance. The bad news is that the system must be installed by January 1st in order to meet new federal reporting rules, all expenses from now on must be approved in advance, the system should have a modular design if possible, and the vice president of finance would like to announce the new system in a year-end report if it is ready by mid-December. Tasks 1. Why is it important to define the project scope? How would you define the scope of the payroll project in this case? 2. Review each constraint and identify its characteristics: present versus future, internal versus exter- nal, and mandatory versus desirable. 3. What questions would you ask to determine the feasibility of this project? 4. Given the time constraints, could you shorten any of the typical steps in the preliminary investiga- tion? Which ones? Explain your answer. Way Out Bikes The owner of Way Out Bikes asked you for advice about acquiring an information system for her busi- ness. The company specializes in helping customers select exactly the right bicycle for their needs and life- styles. Way Out cannot compete on price with mass merchandisers, but it seeks to offer value and expertise for which customers are willing to pay. You ask the owner whether she has long-range plans for the company, and she replies that she has not really thought beyond a one-year time frame. Tasks 1. Develop questions to ask Way Outs owner to help her conduct a SWOT analysis. 2. How could a mission statement help Way Out? 3. What are the critical success factors for Way Out? 4. What questions would you ask the owner to help her develop a business case for an information system?