Deck 12: IT Strategic Planning

Question 1

All of the following are tools or methodologies that managers use for IT strategic planning except:

A)business service management
B)business systems planning model
C)balanced scorecard
D)dashboards

Answer 1

D

Question 2

Why did British-Swedish company AstraZeneca undergo a major restructure from a traditional model to a loosely-coupled business model?

A)Management forecasted a significant loss in its sales revenues.
B)Management wanted to implement the latest IT and social networks.
C)Competition in the pharmaceutical industry was decreasing.
D)All of the above

Answer 2

A

Question 3

Making IT investments on the basis of an immediate need or threat are sometimes necessary.What can managers expect from making investments in this way?

A)These are proactive approaches that will maximize ROI.
B)These just-in-time approaches to investments minimize long-term costs.
C)These are reactive approaches that can result in incompatible,redundant,or failed systems.
D)These quick responses provide the best defenses.

Answer 3

C

Question 4

Optimally,the __________ guides investment decisions and decisions on how ISs will be developed,acquired,and/or implemented.

A)network infrastructure
B)SWOT
C)level of IT expertise
D)IT strategy

Question 5

It is the duty of the __________ to insure that information systems,technology,and other critical activities are effectively governed.

A)IT function
B)Board of Directors (BOD)
C)end users
D)HR function

Question 6

Typically,ITs that provide competitive advantages,or that contain proprietary or confidential data are developed and maintained by __________.

A)consulting companies
B)the in-house IT function
C)a single vendor
D)multiple vendors

Question 7

IT governance covers each of the following areas except:

A)inventory management
B)resource management
C)risk management
D)strategy support

Question 8

An organization's __________ are action-oriented statements that define the continuous improvement activities that must be done to be successful.

A)strategies
B)objectives
C)targets
D)mission statements

Question 9

An organization's __________ define(s)why it exists.

A)strategy
B)objectives
C)targets
D)mission statement

Question 10

Which is not one of the reasons why an IT project is discontinued or abandoned?

A)The project was under-budget
B)The business strategy changed
C)Technology changed
D)The project sponsors did not work well together

Question 11

The alignment of IT with the business strategy is dynamic and a(n)__________.

A)ongoing process
B)annual event
C)challenge for operations managers
D)decreasing in importance

Question 12

Cloud computing and software-as-a-service (SaaS)are forms of __________.

A)in-house development
B)offshoring
C)outsourcing
D)sourcing

Question 13

The __________ is a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the IS department is meeting the needs of the enterprise.

A)corporate steering committee
B)board of directors
C)executive suite
D)audit team

Question 14

__________ are the desired levels of performance.

A)Strategy
B)Objectives
C)Targets
D)Visions

Question 15

Why is it insufficient to develop a long-term IT strategy and not reexamine the strategy on a regular basis?

A)Systems need to be maintained
B)To keep the CIO part of the executive team
C)Organizational goals change over time
D)To automate business processes

Question 16

IT governance is concerned with insuring that organizational investments in IT __________.

A)support operations
B)provide sustainable competitive advantage
C)deliver full value
D)are audited quarterly

Question 17

For best results,an organization's strategic IT plan is based on __________.

A)IT governance
B)cloud computing
C)the latest mobile technologies
D)the strategic business plan

Question 18

Characteristics of resources that can help firms create a competitive advantage are all of the following except:

A)appropriability
B)governance
C)rarity
D)value

Question 19

According to a survey of business leaders by Diamond Management & Technology Consultants,87 percent believe that IT is critical to their companies' strategic success.In addition,the survey reported that __________.

A)most business leaders work with IT to achieve success
B)most IT staff are very involved in the process of developing business strategy
C)only about one-third of business executives responsible for strategy work closely with the IT department
D)IT projects are rarely abandoned

Question 20

Based on case studies,the types of work that are not readily offshored include the following:

A)Work that has been routinized
B)Business activities that rely on an common combination of specific application-domain knowledge
C)Situations that would expose the client company to too much data security or privacy risks
D)All of the above

Question 21

__________ is used in planning situations that involve much uncertainty,like that of IT in general and e-commerce in particular.

A)Key performance indicators (KPIs)
B)Scenario planning
C)Critical success factors (CSFs)
D)Balanced scorecard

Question 22

Which of the following statements about outsourcing is false?

A)Increasingly,organizations are leveraging existing global cloud infrastructures from companies such as Amazon and Google.
B)Established companies are less willing to outsource company-critical functions in an effort to reduce costs.
C)New start-up companies typically outsource and rely on SaaS to avoid upfront IT costs.
D)Outsourcing companies have started to offer interesting new business models and services around cloud computing.

Question 23

The __________ of organizations are the things they do best and that represent their competitive strengths.

A)competitive advantages
B)customer-facing activities
C)core competencies
D)back office functions

Question 24

Since the late 1980s,many organizations have outsourced __________.

A)supply chain functions
B)the majority of their IT functions
C)only incidental parts of their IT function
D)marketing functions

Question 25

What do managers use KPIs for?

A)To measure real-time performance
B)To predict future results
C)To measure results of past activity
D)All of the above

Question 26

Which is not one of the characteristics of critical success factors (CSFs)?

A)Organizations in the same industry have the same CSFs.
B)The CSF approach was developed to help identify the information needs of managers.
C)The fundamental assumption is that in every organization there are three to six key factors that,if done well,will result in the organization's success.
D)The failure of these factors will result in some degree of failure at the organization.

Question 27

IT is difficult to manage for organizations __________..

A)of all types
B)in retail
C)in manufacturing
D)in finance

Question 28

The trend in outsourcing has been toward the __________.

A)single vendor
B)use of short term contracts
C)mega-deal
D)multi-vendor approach

Question 29

Outsourcing deals are typically __________.

A)multi-year contracts
B)short-term service level agreements
C)temporary arrangements
D)one-year projects

Question 30

Outsourcing can be done __________.

A)domestically or offshore
B)via cloud computing or SaaS
C)via business processing
D)a and b

Question 31

Which is not one of the lessons that eBay learned from its BPO implementation?

A)Challenges can be avoided by partnering with a global leader in business process and technology management.
B)Build a project-management infrastructure
C)Create a governance mechanism
D)Properly define how success will be measured

Question 32

The major reasons why organizations are increasingly outsourcing include each of the following except:

A)to focus on core competency
B)it's a faster way to gain or enhance IT capabilities
C)to support supply chain transactions
D)cloud computing and SaaS have proven to be effective IT strategies

Question 33

Cloud computing is for outsourcing of __________.

A)routine tasks
B)routine tasks and the delivery of real business services
C)proprietary systems
D)nonproprietary applications

Question 34

Resource allocation is a contentious process in most organizations because opportunities and requests for spending far exceed the available funds.This can lead to __________ among organizational units,which makes it __________ to objectively identify the best investments.

A)highly political competition;difficult
B)highly political competition;easier
C)cooperation;simple
D)cooperation;difficult

Question 35

__________ includes many functions that are considered non-core to the primary business strategy,such as financial and administration processes,human resource functions,call center and customer service activities,and accounting.

A)Cloud computing
B)Business processing outsourcing (BPO)
C)SaaS
D)IT outsourcing

Question 36

Business service management is an approach for linking __________ or metrics of IT to business goals to determine the impact on the business.

A)key performance indicators (KPIs)
B)critical success factors (CSFs)
C)scorecards
D)financials

Question 37

__________ are the most essential things that must go right,or be closely tracked,to ensure the organization's survival and success.

A)Key performance indicators (KPIs)
B)Critical success factors (CSFs)
C)Scorecards
D)Financials

Question 38

Lessons that eBay and Genpact learned from the BPO implementation include each of the following except:

A)Manage change by securing the commitment of senior leaders
B)Set realistic expectations and manage them actively
C)Focus on minimizing costs
D)Anticipate risks and formulate a plan for mitigating them

Question 39

__________ is the process of hiring another company to handle business activities for you.

A)Cloud computing
B)Business processing outsourcing (BPO)
C)SaaS
D)IT outsourcing

Question 40

Which is not one of the risks associated with outsourcing?

A)flexibility
B)shirking
C)poaching
D)opportunistic repricing

Question 41

Both IT and organizational strategies are static and can be harmed when people resist change because IS success depends on the skills and cooperation of people.

Question 42

A prerequisite for effective IT-business alignment for the CIO to understand the latest technologies and for the CEO and business planners to understand competitors.

Question 43

In reality,because of the rapid pace of change in IT and the environment,short-term IT tactical plans may include major items not anticipated in the longer term IT plans.

Question 44

The long-range IT plan,sometimes referred to as the strategic IT plan,is based on the strategic outsourcing plan.

Question 45

To reduce costs,biopharmaceutical AstraZeneca shifted from a vertically integrated company to a loosely-coupled organizational model connected by outsourced arrangements and relationships.

Question 46

The IT planning process results in a formal IT strategy or a re-assessment each year or each quarter of the existing portfolio of IT resources.

Question 47

Risks associated with outsourcing are minimal because of service level agreements.

Question 48

IT strategic plans should be made within the context of the business strategy that it needs to support,which is how most IT planning is done.

Question 49

An advantage of business service management software tools is that they provide real-time dashboard views for tracking KPIs at the executive,functional,and operations levels.

Question 50

Business strategy sets the overall direction for the business;while the IT strategy defines what information,ISs,and architecture are needed to support the business and how infrastructure and services are to be delivered.

Question 51

Making IT investments on the basis of an immediate need or threat is not a smart strategy because it can result in incompatible,redundant,or failed systems.

Question 52

For more productive service level agreements,companies may hire an outsource relationship management company to monitor and manage the outsourcing relationships.

Question 53

IT is an enabler of core competencies or competitive strengths;and it is complex,expensive,and constantly changing.

Question 54

AstraZeneca had signed a seven-year global outsourcing agreement with IBM.Under the deal,IBM provides a single global technical infrastructure for AstraZeneca covering 60 countries.

Question 55

AstraZeneca was able to quickly set up outsourcing relationships despite complex regulatory hurdles.

Question 56

Since the late 1980s,many organizations have outsourced the majority of their IT functions,rather than just incidental parts to cut costs or manage the complexity of IT.

Question 57

According to a survey of business leaders by Diamond Management & Technology Consultants,87 percent believe that IT is critical to their companies' strategic success,but few business leaders work with IT to achieve that success.

Question 58

Ultimately,it is the CIO's duty to insure that IT and other critical activities are effectively governed.

Question 59

IT plays a pivotal role in improving corporate governance practices because most critical business processes are automated;and managers rely on information provided by these processes for their decision making.

Question 60

The two basic types of IT strategies are offshoring often with help from a consulting firm and/or vendor;and outsourcing to a third-party that resides either in the same country or is offshore.

Question 61

List four types of individuals concerned about IT governance.

Question 62

__________ of software development has become a common practice due to global markets,lower costs,and increased access to skilled labor.

Question 63

The CIO must understand and buy into the corporate _________ so that IS planning does not occur in isolation.

Question 64

Cloud computing and software as a service (SaaS)have expanded __________ options.

Question 65

The risk of __________ occurs when a vendor deliberately underperforms while claiming full payment.

Question 66

IT __________ is concerned with insuring that organizational investments in IT deliver full value.

Question 67

What are three issues driving the need for IT governance?

Question 68

IT governance,like security,is an __________ and cannot be achieved by a mandate or set of rules.

Question 69

What are the major reasons why organizations are increasingly outsourcing?

Question 70

Business service management is an approach for linking __________ of IT to business goals to determine the impact on the business.

Question 71

__________ refers to the degree to which another resource can be used instead of the original resource to achieve the same value,

Question 72

The risk of __________ occurs when a client enters into a long-term contract with a vendor,but the vendor changes financial terms at some point or over-charges for unanticipated enhancements.

Question 73

What are the four main points of IT strategic plans?

Question 74

__________ is how an organization intends to accomplish its vision.It's the overall game plan.