Exam 3: Linking It to Business Metrics

The key to linking what IT does to business performance is to create an environment within which everyone thoroughly understands what measures are unimportant to the business and is not held accountable for those measurements.

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(True/False)

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Question 1

Correct Answer:

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False

Describe the concept of the balanced score card.

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Question 2

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Organizations can use the balanced score card approach to measure success of organizational mission and strategy initiatives. Using the balanced score card methodology, business measure past financial performance, metrics related to customers, internal business processes, to learn how to position a firm for future performance. A firm can develop critical success factors based on these measurements and can track the progress made on each periodically, creating a score card each time progress is measured.
Companies that use a balanced scorecard tend to have a better return on investment than those that rely on traditional financial measures alone. Many companies use some sort of scorecard or "dashboard" to track a variety of different metrics of organizational health.

What a company spends on IT has a direct impact on its overall performance.

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Question 3

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True

The type of metric that measures IT employee satisfaction, operational performance and development activity is called a/an:

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Question 4

The leading non-financial indicator of customer satisfaction is:

(Multiple Choice)

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Question 5

What is the leading indicator of customer satisfaction?

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Question 6

List and describe (3) common pitfalls to avoid when implementing business metrics program for IT.

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Question 7

About half of all IT managers believe that that their ROI expectations for technology are met.

(True/False)

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Question 8

Non-financial business metrics include:

(Multiple Choice)

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Question 9

Non-financial measures are predictive of past performance and are not effective predictors for future performance.

(True/False)

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Question 10

It is practically impossible to demonstrate that what a company spends on IT has a direct impact on its overall performance.

(True/False)

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Question 11

The best measures are tied to business performance and are linked to the strategies and technological capabilities of the company.

(True/False)

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Question 12

Companies that do not understand their customers' needs will likely lose customers but not lose profitability.

(True/False)

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Question 13

What a company measures and the way it measures influence both the mindsets of managers and the way people behave.

(True/False)

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Question 14

Systems that are not reliable or available when needed, cannot provide customers with the information they need, or cannot give the customers the flexibility they require are very common in companies.

(True/False)

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Question 15

The type of metric that ties the work of IT to external customer satisfaction, and financial performance is called a/an:

(Multiple Choice)

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Question 16

The modified score card metric that accounts for the effect of taxes on operating income is called:

(Multiple Choice)

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Question 17

Most companies concentrate on determining the ________ that specific IT projects deliver.

(Multiple Choice)

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Question 18

Competing in the information age is much less about the ability of a company to mobilize its intangible assets and much more about, managing physical, tangible assets.

(True/False)

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Question 19

Most organizations that link measures of IT input with measures of business performance find great success since the two metrics are so closely linked.

(True/False)

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Question 20

Showing 1 - 20 of 50

The key to linking what IT does to business performance is to create an environment within which everyone thoroughly understands what measures are unimportant to the business and is not held accountable for those measurements.

Describe the concept of the balanced score card.

What a company spends on IT has a direct impact on its overall performance.

The type of metric that measures IT employee satisfaction, operational performance and development activity is called a/an:

The leading non-financial indicator of customer satisfaction is:

What is the leading indicator of customer satisfaction?

List and describe (3) common pitfalls to avoid when implementing business metrics program for IT.

About half of all IT managers believe that that their ROI expectations for technology are met.

Non-financial business metrics include:

Non-financial measures are predictive of past performance and are not effective predictors for future performance.

It is practically impossible to demonstrate that what a company spends on IT has a direct impact on its overall performance.

The best measures are tied to business performance and are linked to the strategies and technological capabilities of the company.

Companies that do not understand their customers' needs will likely lose customers but not lose profitability.

What a company measures and the way it measures influence both the mindsets of managers and the way people behave.

Systems that are not reliable or available when needed, cannot provide customers with the information they need, or cannot give the customers the flexibility they require are very common in companies.

The type of metric that ties the work of IT to external customer satisfaction, and financial performance is called a/an:

The modified score card metric that accounts for the effect of taxes on operating income is called:

Most companies concentrate on determining the ________ that specific IT projects deliver.

Competing in the information age is much less about the ability of a company to mobilize its intangible assets and much more about, managing physical, tangible assets.

Most organizations that link measures of IT input with measures of business performance find great success since the two metrics are so closely linked.

Developing and Delivering on the IT Value Proposition

Developing IT Strategy for Business Value

Managing Perceptions of IT

IT in the New World of Corporate Governance Reforms

Creating and Evolving a Technology Roadmap

The IT Budgeting Process

Information Management: the Nexus of Business and IT

IT in 2010

Strategic Experimentation With IT

Enhancing the Customer Experience With Technology

Information Delivery: ITS Evolving Role

Digital Dashboards

Managing Electronic Communications

Developing It Capabilities

It Sourcing

Delivering IT Functions: a Decision Framework

Building Better It Leaders From the Bottom up

Developing It Professionalism

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