Question 1

Which dimension of the balanced scorecard answers the question "How do customers see us?"

Accepted Answer

A)  Customer perspective 
B)  Innovating and learning perspective 
C)  Internal business perspective 
D)  Financial perspective 
E)  Supplier perspective 
A)  Customer perspective 
B)  Innovating and learning perspective 
C)  Internal business perspective 
D)  Financial perspective 
E)  Supplier perspective

Question 2

All of the following are qualities of a dashboard EXCEPT:

Accepted Answer

A)  Highly summarized 
B)  Key metric driven 
C)  Raw data 
D)  Effective Visualization 
E)  Alerts 
A)  Highly summarized 
B)  Key metric driven 
C)  Raw data 
D)  Effective Visualization 
E)  Alerts

Question 3

The process called "true up" is used to balance true expenses against payments made for this particular funding method.

Accepted Answer

The answer of The process called "true up" is used...

Question 4

What can a manager expect from the IT organization?
Matching

Accepted Answer

The answer of What can a manager expect from the...

Question 5

This is the senior-most executive in the enterprise responsible for IT vision and leadership for IT initiatives.

Accepted Answer

CIO or Chi

Question 6

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

Accepted Answer

A)  Business Continuity Plan 
B)  Disaster Recovery Plan 
C)  Business Disaster Plan 
D)  Disaster Business Case 
E)  Business-IT Maturity Model 
A)  Business Continuity Plan 
B)  Disaster Recovery Plan 
C)  Business Disaster Plan 
D)  Disaster Business Case 
E)  Business-IT Maturity Model

Question 7

All of the following are methods used to value an IT investment EXCEPT:

Accepted Answer

A)  Payback analysis 
B)  ROI 
C)  NPV 
D)  CTO 
E)  IRR 
A)  Payback analysis 
B)  ROI 
C)  NPV 
D)  CTO 
E)  IRR

Question 8

Corporate budgeting is a wise choice for funding newer technologies and innovation.

Accepted Answer

A) True 
 B)False

Question 9

Labor costs associated with an IT infrastructure far outweigh the actual capital investment cost.

Accepted Answer

A) True 
 B)False

Question 10

This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.

Accepted Answer

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

Question 11

The responsibility of the IT organization is to:

Accepted Answer

A)  Manage core business functions like selling, accounting and manufacturing. 
B)  Partner with business managers to ensure the right IS exists to support the business strategy. 
C)  Set the business strategy. 
D)  Have sole responsibility for building information systems for the organization. 
E)  Design business processes. 
A)  Manage core business functions like selling, accounting and manufacturing. 
B)  Partner with business managers to ensure the right IS exists to support the business strategy. 
C)  Set the business strategy. 
D)  Have sole responsibility for building information systems for the organization. 
E)  Design business processes.

Question 12

Building a business case for an IT investment:

Accepted Answer

A)  Allows management to establish priorities for investing in different projects. 
B)  Helps gain commitment for the IT investment from business managers. 
C)  Creates a basis for monitoring the investment. 
D)  Identifies the benefits of the investment. 
E)  All of the above. 
A)  Allows management to establish priorities for investing in different projects. 
B)  Helps gain commitment for the IT investment from business managers. 
C)  Creates a basis for monitoring the investment. 
D)  Identifies the benefits of the investment. 
E)  All of the above.

Question 13

It is determined that a mobile application needed to support the Sales, Marketing and Finance departments will cost $60,000. The Sales department has 20 employees and all employees will need the application. Likewise, all 10 of the Marketing department employees will need the application. Only 1/3 of the Finance department is interested in the mobile application. The Finance department has 30 employees. The CIO has decided to fund the mobile application using either the allocation method or chargeback method.
Which funding method does each department wish the CIO will choose to use and why?

Accepted Answer

Sales department - (allocation method)

Question 14

Which dimension of the balanced scorecard answers the question "How do we look to shareholders?"

Accepted Answer

A)  Customer perspective 
B)  Innovating and learning perspective 
C)  Internal business perspective 
D)  Financial perspective 
E)  Supplier perspective 
A)  Customer perspective 
B)  Innovating and learning perspective 
C)  Internal business perspective 
D)  Financial perspective 
E)  Supplier perspective

Question 15

Managing a global IT organization has challenges that extend beyond managing a global team. What are the specific issues a global IT organization has to consider?

Accepted Answer

Managing a global IT organization comes

Question 16

Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?

Accepted Answer

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

Question 17

The balanced scorecard:

Accepted Answer

A)  Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green). 
B)  Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials and business processes. 
C)  Focuses its attention on an organization's financials. 
D)  Is used to communicate the TCO for an IT investment. 
E)  Is one of many metrics used to evaluate the value of an IT investment. 
A)  Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green). 
B)  Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials and business processes. 
C)  Focuses its attention on an organization's financials. 
D)  Is used to communicate the TCO for an IT investment. 
E)  Is one of many metrics used to evaluate the value of an IT investment.

Question 18

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying?

Accepted Answer

A)  Allocation method 
B)  Corporate budget method 
C)  Usage method 
D)  Distributed method 
E)  Chargeback method 
A)  Allocation method 
B)  Corporate budget method 
C)  Usage method 
D)  Distributed method 
E)  Chargeback method

Question 19

This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs.

Accepted Answer

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

Question 20

While a relatively simple method for funding, corporate budgeting ______________

Accepted Answer

A)  helps control the costs of IT. 
B)  may result in an IT organization that is less end-user oriented. 
C)  encourages sharing of funding resources between IT and business units. 
D)  levies charges on specific users or business units. 
E)  gives business managers sole control over IT decisions. 
A)  helps control the costs of IT. 
B)  may result in an IT organization that is less end-user oriented. 
C)  encourages sharing of funding resources between IT and business units. 
D)  levies charges on specific users or business units. 
E)  gives business managers sole control over IT decisions.

Which dimension of the balanced scorecard answers the question "How do customers see us?"

All of the following are qualities of a dashboard EXCEPT:

The process called "true up" is used to balance true expenses against payments made for this particular funding method.

What can a manager expect from the IT organization? Matching

This is the senior-most executive in the enterprise responsible for IT vision and leadership for IT initiatives.

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

All of the following are methods used to value an IT investment EXCEPT:

Corporate budgeting is a wise choice for funding newer technologies and innovation.

Labor costs associated with an IT infrastructure far outweigh the actual capital investment cost.

This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.

The responsibility of the IT organization is to:

Building a business case for an IT investment:

Which dimension of the balanced scorecard answers the question "How do we look to shareholders?"

Managing a global IT organization has challenges that extend beyond managing a global team. What are the specific issues a global IT organization has to consider?

Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?

The balanced scorecard:

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying?

This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs.

While a relatively simple method for funding, corporate budgeting ______________

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

Which dimension of the balanced scorecard answers the question "How do customers see us?"

All of the following are qualities of a dashboard EXCEPT:

The process called "true up" is used to balance true expenses against payments made for this particular funding method.

What can a manager expect from the IT organization? Matching

This is the senior-most executive in the enterprise responsible for IT vision and leadership for IT initiatives.

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

All of the following are methods used to value an IT investment EXCEPT:

Corporate budgeting is a wise choice for funding newer technologies and innovation.

Labor costs associated with an IT infrastructure far outweigh the actual capital investment cost.

This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.

The responsibility of the IT organization is to:

Building a business case for an IT investment:

Which dimension of the balanced scorecard answers the question "How do we look to shareholders?"

Managing a global IT organization has challenges that extend beyond managing a global team. What are the specific issues a global IT organization has to consider?

Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?

The balanced scorecard:

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying?

This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs.

While a relatively simple method for funding, corporate budgeting ______________

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