Question 1

Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________.

Accepted Answer

A)  baseline 
B)  metrics 
C)  portfolio 
D)  dashboard 
E)  monitor 
A)  baseline 
B)  metrics 
C)  portfolio 
D)  dashboard 
E)  monitor

Question 2

Financial measures are the sole means for making management decisions.

Accepted Answer

A) True 
 B)False

Question 3

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money?

Accepted Answer

A)  ROI 
B)  NPV 
C)  EVA 
D)  IRR 
E)  TCO 
A)  ROI 
B)  NPV 
C)  EVA 
D)  IRR 
E)  TCO

Question 4

Traditional valuation methods such as ROI, NPV, and IRR cannot be applied to information technology because it is technical, not business-oriented.

Accepted Answer

A) True 
 B)False

Question 5

There are three main ways to handle funding for IT, including chargeback to users, allocation of costs to users, and providing IT services from a corporate budget.

Accepted Answer

A) True 
 B)False

Question 6

List some soft costs one would anticipate when implementing an IT solution.

Accepted Answer

When implementing an IT solution, soft c

Question 7

IT leaders must be part of the business strategy discussion.

Accepted Answer

A) True 
 B)False

Question 8

Besides financial metrics, what metrics help an IT organization manage its IT investments?

Accepted Answer

Besides financial metrics, an IT organiz

Question 9

Match each IT organizational activity with its related level of maturity (based on the Business-IT maturity model). Remember that Level 3 is more mature than Level 1.

Accepted Answer

The answer of Match each IT organizational activity with its...

Question 10

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _______ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2) ______

Accepted Answer

A)  (1) transactions (2) connections 
B)  (1) savings (2) expansion 
C)  (1) cost (2) ability 
D)  (1) agility (2) cost 
E)  (1) ability (2) agility 
A)  (1) transactions (2) connections 
B)  (1) savings (2) expansion 
C)  (1) cost (2) ability 
D)  (1) agility (2) cost 
E)  (1) ability (2) agility

Question 11

Why is it particularly difficult to determine the value of an IT investment?

Accepted Answer

Some say life's a bet. Notwithstanding,

Question 12

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Accepted Answer

A)  Allocation 
B)  Corporate budgeting 
C)  Usage 
D)  TCO 
E)  Chargeback 
A)  Allocation 
B)  Corporate budgeting 
C)  Usage 
D)  TCO 
E)  Chargeback

Question 13

Why would an organization use the balanced scorecard and focus its metrics on more than just financials?

Accepted Answer

Financial analysis helps the company to

Question 14

Critical to the business case is the identification of both _________ and ________.

Accepted Answer

A)  costs, risks 
B)  costs, benefits 
C)  advantages, disadvantages 
D)  assumptions, risks 
E)  benefits, detriments 
A)  costs, risks 
B)  costs, benefits 
C)  advantages, disadvantages 
D)  assumptions, risks 
E)  benefits, detriments

Question 15

A balanced scorecard is a method used by IT departments to measure overall health and success of an IT investment. Match a type of measurement an IT organization may report with the appropriate balanced scorecard category it supports.

Accepted Answer

The answer of A balanced scorecard is a method used...

Question 16

Two methods for communicating metrics are dashboards and _______.

Accepted Answer

The answer of Two methods for communicating metrics are dashboards...

Question 17

A CIO must have a strong understanding of technology and a limited understanding of the business.

Accepted Answer

A) True 
 B)False

Question 18

Why is TCO so difficult to define? What are some of the challenges of determining TCO?

Accepted Answer

Total Cost of Ownership (TCO) is difficu

Question 19

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Accepted Answer

A)  strategic systems 
B)  infrastructure 
C)  informational systems 
D)  transactional systems 
E)  social media 
A)  strategic systems 
B)  infrastructure 
C)  informational systems 
D)  transactional systems 
E)  social media

Question 20

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value:

Accepted Answer

A)  RCO 
B)  TCO 
C)  ROI 
D)  NPV 
E)  EVM 
A)  RCO 
B)  TCO 
C)  ROI 
D)  NPV 
E)  EVM

Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________.

Financial measures are the sole means for making management decisions.

Traditional valuation methods such as ROI, NPV, and IRR cannot be applied to information technology because it is technical, not business-oriented.

There are three main ways to handle funding for IT, including chargeback to users, allocation of costs to users, and providing IT services from a corporate budget.

List some soft costs one would anticipate when implementing an IT solution.

IT leaders must be part of the business strategy discussion.

Besides financial metrics, what metrics help an IT organization manage its IT investments?

Match each IT organizational activity with its related level of maturity (based on the Business-IT maturity model). Remember that Level 3 is more mature than Level 1.

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2)

Why is it particularly difficult to determine the value of an IT investment?

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Why would an organization use the balanced scorecard and focus its metrics on more than just financials?

Critical to the business case is the identification of both _ and .

A balanced scorecard is a method used by IT departments to measure overall health and success of an IT investment. Match a type of measurement an IT organization may report with the appropriate balanced scorecard category it supports.

Two methods for communicating metrics are dashboards and _______.

A CIO must have a strong understanding of technology and a limited understanding of the business.

Why is TCO so difficult to define? What are some of the challenges of determining TCO?

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value:

Introduction

The Information Systems Strategy Triangle

Strategic Use of Information Resources

Organizational Strategy and Information Systems

Information Systems and the Design of Work

Information Systems and Business Transformation

Architecture and Infrastructure

Security

Governance of the Information Systems Organization

Information Systems Sourcing

Managing IT Projects

Business Intelligence Knowledge Management and Analytics

Privacy and Ethical Considerations in Information Management

Filters

Exam 9: The Business of Information Technology

Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________.

Financial measures are the sole means for making management decisions.

Traditional valuation methods such as ROI, NPV, and IRR cannot be applied to information technology because it is technical, not business-oriented.

There are three main ways to handle funding for IT, including chargeback to users, allocation of costs to users, and providing IT services from a corporate budget.

List some soft costs one would anticipate when implementing an IT solution.

IT leaders must be part of the business strategy discussion.

Besides financial metrics, what metrics help an IT organization manage its IT investments?

Match each IT organizational activity with its related level of maturity (based on the Business-IT maturity model). Remember that Level 3 is more mature than Level 1.

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _______ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2) ______

Why is it particularly difficult to determine the value of an IT investment?

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Why would an organization use the balanced scorecard and focus its metrics on more than just financials?

Critical to the business case is the identification of both _________ and ________.

A balanced scorecard is a method used by IT departments to measure overall health and success of an IT investment. Match a type of measurement an IT organization may report with the appropriate balanced scorecard category it supports.

Two methods for communicating metrics are dashboards and _______.

A CIO must have a strong understanding of technology and a limited understanding of the business.

Why is TCO so difficult to define? What are some of the challenges of determining TCO?

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value:

Introduction

The Information Systems Strategy Triangle

Strategic Use of Information Resources

Organizational Strategy and Information Systems

Information Systems and the Design of Work

Information Systems and Business Transformation

Architecture and Infrastructure

Security

Governance of the Information Systems Organization

Information Systems Sourcing

Managing IT Projects

Business Intelligence Knowledge Management and Analytics

Privacy and Ethical Considerations in Information Management

Filters

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2)

Critical to the business case is the identification of both _ and .