Question 1

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.

Accepted Answer

The description given in the question matches that of a Steering Committee, which 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. Board of directors are individuals elected by shareholders to oversee the management of a company, Executive suite refers to top-level executives in a company, and Audit team is responsible for reviewing and evaluating an organization's financial records to ensure compliance with regulations and internal policies.

Question 2

__________ occurs when the vendor develops a strategic application for a client and then uses it for other clients.

Accepted Answer

Poaching occurs when a vendor develops a strategic application for a client and then uses it for other clients without the permission of the original client, essentially stealing their intellectual property.

Question 3

Which is not one of the risks associated with outsourcing?

Accepted Answer

Flexibility is actually one of the potential benefits of outsourcing. The other choices (B, C, D) are all risks associated with outsourcing. Shirking occurs when the outsourcing company fails to live up to its contractual obligations, while poaching refers to the risk of losing key personnel to the outsourcing provider. Opportunistic repricing happens when the outsourcing provider attempts to renegotiate the contract terms in their favor after establishing the relationship with the company.

Question 4

__________ occurs when the vendor deliberately underperforms while claiming full payment,for example,billing for more hours than were worked and/or providing excellent staff at first and later replacing them with less qualified ones.

Accepted Answer

Shirking is the act of deliberately underperforming while claiming full payment. This can include billing for more hours than were worked, providing lower-quality staff, or any other actions that result in the vendor not fulfilling their obligations as agreed upon in the contract. Flexibility refers to the ability to adapt to changing circumstances, while poaching and opportunistic repricing are different issues altogether.

Question 5

Before entering into any service contract with an IT vendor,get __________.

Accepted Answer

Having everything in writing ensures that all terms, conditions, and expectations are clearly documented and legally binding, reducing the risk of misunderstandings or disputes.

Question 6

Which type of work is not readily offshored?

Accepted Answer

Offshoring work that involves sensitive data or privacy risks can be risky for companies, as it may expose them to data breaches, legal issues, and reputational damage. As a result, such work is not readily offshored.

Question 7

Enterprises choose outsourcing for several reasons.Which of the following is not one of the reasons?

Accepted Answer

Outsourcing is typically pursued to increase efficiency, focus on core competencies, and because offshoring has become a more accepted strategy. Moving IT investment from a recurring operational expense to a capital expenditure is not a reason for outsourcing; it's more related to accounting and financial management strategies rather than the strategic objectives of outsourcing.

Question 8

Based on case studies,which type of work is not readily offshored?

Accepted Answer

Work that puts the company at great data security, data privacy, or intellectual property risks is not readily offshored because of the high level of security and confidentiality required. Offshoring such work may compromise critical company information and may expose the company to legal and financial risks.

Question 9

Long-term business planning starts with a clear understanding of the factors that create significant value and that work together with other factors to drive future revenue and profit at or above their current rates.

Accepted Answer

Long-term business planning does indeed start with a clear understanding of the factors that create significant value and work together to drive future revenue and profit.

Question 10

Which of the following is not one of the five steps to Technology Scanning for an organization?

Accepted Answer

Technology Implementation is not one of the five steps to Technology Scanning, as Technology Scanning typically involves identifying and analyzing emerging technologies rather than implementing them.

Question 11

__________ occurs when a client enters into a long-term contract with a vendor,the vendor changes financial terms at some point or overcharges for unanticipated enhancements and contract extensions.

Accepted Answer

Opportunistic repricing occurs when a vendor takes advantage of a long-term contract by changing financial terms without the client's knowledge or overcharging for enhancements or extensions. This can result in a loss of trust and a damaged relationship between the client and vendor.

Question 12

What would be connected using a digital mesh?

Accepted Answer

Digital mesh connects smart devices and wearables, enabling them to interact and work together.

Question 13

Failed IT vendor relationships usually ___________.

Accepted Answer

Failed IT vendor relationships usually start with inexperienced vendors.

Question 14

An expanded set of endpoints used to access applications,gather information or interact with people,social communities,government and businesses to ensure instant connection and response to build experience is a(n)____________.

Accepted Answer

A digital mesh is a network of interconnected digital devices, users, and services that work together to enable the exchange of information and allow for real-time interactions. The expanded set of endpoints mentioned in the question aligns with the concept of a digital mesh.

Question 15

________ is the ability to get data into and out of the cloud service.

Accepted Answer

The answer of ________ is the ability to get data...

Question 16

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.

Accepted Answer

Investing in IT based only on immediate needs or threats may lead to hasty solutions without proper analysis and planning, and may result in systems that are not compatible with existing infrastructure, duplicate functionalities, or fail to meet long-term objectives. A more strategic approach is required that aligns IT investments with business goals, considers the full lifecycle costs, and prioritizes enterprise-wide benefits over short-term gains.

Question 17

Which of the following statements about outsourcing is false?

Accepted Answer

The answer of Which of the following statements about outsourcing...

Question 18

Outsourcing can be done __________.

Accepted Answer

Outsourcing can be done domestically or offshore, which refers to the country where the outsourcing partner is located. It can also be done via cloud computing, which refers to the use of remote servers to store, manage, and process data. Software as a Service (SaaS) is another form of outsourcing where the service provider hosts and manages software applications for customers. Therefore, the best choice(s) is D because outsourcing can be done domestically, offshore, via cloud computing or SaaS.

Question 19

When selecting a vendor,two criteria to assess first are _____________.

Accepted Answer

Experience and stability are important criteria to consider when selecting a vendor because they indicate the vendor's ability to deliver quality products or services consistently over time. This can help ensure that your business needs are met reliably and without interruption. Cost, delivery time, location, product mix, reputation, and trial runs are also important factors, but they may be secondary considerations depending on the specific needs of your business.

Question 20

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

Accepted Answer

The given options provide reasons for why organizations are increasingly outsourcing, but option C is the odd one out. It is not a reason for outsourcing IT functions, rather it refers to outsourcing of supply chain activities such as purchasing, logistics, and production. Options A, B, and D are commonly cited reasons for IT outsourcing.

Quiz 12: IT Strategy, Sourcing, and Strategic Technology Trends