Question 1

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

Accepted Answer

Complementary resources such as human resources, organizational structure, and business processes can greatly influence the value of IT investments, and these resources may change over time, affecting the overall value of the IT investment. Therefore, the statement is true.

Question 2

Supply chain management systems are an example of Network IT.

Accepted Answer

False

Question 3

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

Accepted Answer

All are descriptions of the balanced scorecard

Question 4

The balanced scorecard management process starts with the Formulate step.

Accepted Answer

The balanced scorecard management process starts with the Formulate step, which involves defining the strategic objectives and developing key performance indicators.

Question 5

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

Accepted Answer

Administrative processes are not typically highlighted as a general type of business process on generic strategy maps. Strategy maps usually focus on core processes that directly contribute to the strategic goals, such as innovation, operations management, and customer management, rather than on internal administrative functions.

Question 6

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

Accepted Answer

Function IT can automate certain tasks, which can streamline the work process and increase productivity without necessarily replacing skilled workers. However, this ultimately depends on the specific industry and job function.

Question 7

Which of the following is not a balanced scorecard perspective?
A. Stakeholder
B. Financial
C. Business process
D. Customer

Accepted Answer

Stakeholder is not one of the four balanced scorecard perspectives. The four perspectives are financial, customer, business process, and learning and growth.

Question 8

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

Accepted Answer

Information capital in the balanced scorecard learning and growth perspective includes IT infrastructure, employees' abilities to use technology, and applications. Intangible assets are typically included in the organizational perspective, not the learning and growth perspective.

Question 9

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

Accepted Answer

Enterprise IT investments can bring about significant changes in business processes, but the success of these investments depends on how well the company integrates the technology into existing workflows and processes. Without corresponding changes in business processes, the full benefits of IT investments may not be realized. Therefore, it is true that the success of Enterprise IT investments often depends on whether the company makes complementary changes in business processes.

Question 10

Which of the following is not a value proposition characteristic expected to influence customer value?
A. Product attributes
B. Image
C. Innovation
D. Relationship

Accepted Answer

The answer of Which of the following is not a...

Question 11

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

Accepted Answer

This is correct, a strategy map is a visual representation of the cause and effect relationship between objectives across the balanced scorecard perspectives.

Question 12

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

Accepted Answer

The impact of an IT investment can vary based on how well managers make decisions related to the investment, such as identifying the right technology to invest in and implementing it effectively. Poor decision-making can lead to wasted resources and little to no impact on the organization, while effective decision-making can result in significant benefits and competitive advantages.

Question 13

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

Accepted Answer

Research has consistently shown that the use of standardized, integrated, and networked technology can lead to improved decision making and performance management in various domains, including healthcare, finance, and business operations. These systems enable better data integration and analysis, real-time monitoring, and collaboration, which can help organizations make informed decisions and achieve their objectives more efficiently.

Question 14

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

Accepted Answer

The answer of Network IT changes the way that work...

Question 15

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

Accepted Answer

The answer of Investments in business analytics systems support the...

Question 16

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

Accepted Answer

The financial perspective can confirm the success of investments in learning and growth through measures such as return on investment (ROI) or economic value added (EVA).

Question 17

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

Accepted Answer

The answer of In the business process perspective, the firm...

Question 18

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

Accepted Answer

The balanced scorecard framework includes four perspectives: financial, customer, internal business processes, and learning and growth, all of which aim to support the firm's strategy to achieve shareholder value.

Question 19

The balanced scorecard only includes quantitative measures.

Accepted Answer

The balanced scorecard includes both quantitative and qualitative measures, such as customer satisfaction and employee engagement.

Question 20

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.

Accepted Answer

When a firm's value proposition meets or exceeds customers' requirements, it leads to customer satisfaction which results in customer retention and acquisition of new customers. This, in turn, drives sales growth for the firm.

Quiz 14: The Balanced Scorecard and Business Value of Information Technology