Deck 13: The Balanced Scorecard and Business Value of Information Technology

Question 1

Which of the following is not a general type of business process found on generic strategy maps?

A) Innovation processes
B) Administrative processes
C) Operations management processes
D) Customer management processes

Answer 1

B

Question 2

Which of the following is not a balanced scorecard perspective?

A) Stakeholder
B) Financial
C) Business process
D) Customer

Answer 2

A

Question 3

Which of the following is not a value proposition characteristic expected to influence customer value?

A) Product attributes
B) Image
C) Innovation
D) Relationship

Answer 3

C

Question 4

When the firm's value proposition meets or exceeds customers' requirements,customer satisfaction results in customer retention and new customer acquisition,which drives sales growth.

Question 5

The impact of an IT investment can depend on managers' decision-making abilities.

Question 6

Besides presenting financial performance information to shareholders,the financial perspective provides information that can confirm the success of investments in learning and growth.

Question 7

The balanced scorecard only includes quantitative measures.

Question 8

Function IT can be used without affecting more than one skilled worker.

Question 9

The balanced scorecard framework describes performance from four different perspectives based on the firm's strategy to achieve shareholder value.

Question 10

Research shows that standardized,integrated,and networked technology enhances decision making and performance management.

Question 11

A strategy map depicts the cause and effect relationship between objectives across the balanced scorecard perspectives.

Question 12

Which of the following is not included in Information Capital as described in the balanced scorecard learning and growth perspective?

A) IT Infrastructure
B) Employees' abilities to use technology
C) Intangible assets
D) Applications

Question 13

The balanced scorecard management process starts with the Formulate step.

Question 14

Network IT changes the way that work if performed and decisions are made.

Question 15

The success of Enterprise IT investments often depends on whether the company makes complementary changes in business processes.

Question 16

In the business process perspective,the firm describes its objectives for improvements in tangible and intangible infrastructure.

Question 17

Which of the following is the best description of the balanced scorecard?

A) A strategic planning and management system
B) A performance measurement framework
C) A formal, structured approach to link IT investment to business performance
D) All are descriptions of the balanced scorecard

Question 18

The value of IT investments often depend on the level of complementary resources,which can change over time.

Question 19

Supply chain management systems are an example of Network IT.

Question 20

Investments in business analytics systems support the balanced scorecard management process during the Link to Operations step.

Question 21

Which of the following is the best reason that companies find it hard to assess the benefit of IT investments?

A) Difficult to assess costs
B) Difficult to tie IT investments to company strategy
C) IT investments become embedded in business processes
D) None of the above

Question 22

Which of the following is not an example of Enterprise IT?

A) Spreadsheet financial applications
B) Business intelligence systems
C) CRM systems
D) ERP systems

Question 23

Which of the following is the best description of the Link to Operations step in the balanced scorecard management process?

A) The company establishes objectives, measures, targets, and initiatives.
B) The company prepares operating budgets and prioritizes business process improvements.
C) The company evaluates the effectiveness of its strategy.
D) The company examines the competitive environment.

Question 24

Your company has elected to implement a balanced scorecard management process following the steps outlined by Kaplan and Norton.After examining the process closely,your company's senior management team (CEO,CFO,CIO,etc.)decides to modify the process to make the steps more specific.First of all,they identified three different organizational levels involved in the process: senior management,middle management,and the rest of the workforce.
After a brainstorming session,they decide to break the five steps into pieces as follows: the formulate step would include a)assessing the company's value proposition relative to the competition,and b)determining the appropriate elements of the value proposition to emphasize in order to achieve competitive advantage.The translate step would include a)setting long-term strategic objectives for customer and shareholder value,and b)set priorities for long-term capital improvements necessary to achieve the long-term strategic objectives.The Link step would then include a)establishing necessary IT initiatives,b)setting departmental budgets,c)implementing new IT systems,and d)operating business processes.The monitor step would include a)produce reports to track performance,and b)review reports to evaluate performance.
Then,they decided to insert a new step,titled Adjust.This step would include making adjustments necessary to improve business processes,basically revisiting the Link to Operations step but making minor changes.If the adjustments failed to achieve objectives,then they would continue to the Adapt step to a)reconsider their assumptions about the competitive environment,and b)reconsider alternatives for those parts of the value proposition to emphasize to achieve competitive success.
Required: Draw a BPMN activity diagram that outlines your company's approach to the balanced scorecard management process.Then,describe in writing whether you agree with your senior management team's breakdown of the steps and the approach they propose.What would you do differently? Why?

Question 25

Which of the following is not a step in the balanced scorecard management process?

A) Invest
B) Translate
C) Monitor
D) Adapt

Question 26

Review the following list of company objectives.Prepare a strategy map that places each objective in the correct balanced scorecard perspective.

Question 27

Which of the following is not an organizational capability directly supported by Enterprise IT?

A) Process definition
B) Process integration
C) Customer service
D) Transaction automation