Deck 2: Developing IT Strategy for Business Value

Question 1

Most organizations have become very effective at developing strategy or at effectively integrating business and IT strategies.

Answer 1

False

Question 2

Most formal IT plans are focused on supporting enterprise strategy rather than the more tactical and tangible line of business needs or opportunities for operational integration.

Answer 2

True

Question 3

It is not often that mangers confuse a business model with a strategy because business models and strategies are interchangeable.

Answer 3

False

Question 4

Poor alignment between IT and the business remains a perennial problem.

Question 5

If IT is to deliver business value, IT strategy doe not necessarily need to be closely linked with sound business strategy.

Question 6

It can be considered a management mistake to consider technology projects to be solely the responsibility of IT.

Question 7

Most CIOs sit on the executive team and take part in all business strategy discussions.

Question 8

The biggest challenge to developing effective IT strategy is the fact that technology
can be used in so many different ways.

Question 9

Business and IT Strategies do not necessarily need to co-evolve to create new organizational capabilities.

Question 10

The development of integrated, cross-functional systems has increased the importance of technology strategy but not corporate strategy.

Question 11

Only when the value model is clear can strategies be developed to articulate how a company will deliver that value in a unique way that others cannot easily duplicate.

Question 12

IT strategy development must become more dynamic and focused on developing strategic capabilities that will support a variety of changing business objectives.

Question 13

The capabilities of new technologies should always shape the strategic direction of a firm.

Question 14

Only recently, has IT been expected to play a leading role in delivering top-line value and business transformation.

Question 15

The most important element of IT strategy is determining which technology to implement.

Question 16

Utility and basic IT support costs eat up 20 percent of most organizational technology budgets.

Question 17

CIOs are valued for their insights into the application of technology and not necessarily business opportunities.

Question 18

It can be assumed that IT strategy will naturally drive business strategy.

Question 19

The contribution to business strategy by IT is rarely inhibited by an IT managers' limited understanding of business strategy.

Question 20

The function of IT is to understand the business's strategy and devise a plan or strategy to support it.

Question 21

Typically IT strategy stresses only those initiatives with strong:

A) return on investment.
B) technology application.
C) business cases.
D) business opportunity.

Question 22

A ________ explains how the different pieces of a business fit together.

A) business strategy
B) value model
C) business plan
D) business model

Question 23

The IT strategy development process the allows the creation of an overall approach to IT in the company is known as:

A) a "rolling" planning/budget cycle.
B) an enterprise architecture.
C) prioritization.
D) funding different "buckets".

Question 24

The IT strategy development process that can inhibit strategic investments in general capabilities and business opportunities is:

A) a "rolling" planning/budget cycle.
B) an enterprise architecture.
C) prioritization.
D) funding different "buckets".

Question 25

The type of IT Strategy initiative which addresses hardware, software and communications issues is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 26

The type of IT Strategy initiative that allows a company to use their ability to leverage others' ideas to their strategic advantage is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 27

While it is unlikely that strategy development will ever become a completely formalized process, in most organizations, there is a clear need to add more:

A) structure.
B) budgeting.
C) prioritization.
D) planning.

Question 28

The type of IT Strategy initiative that typically does not receive funding by traditional methods because of the high-risk nature of the project is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 29

The type of IT Strategy initiative that stresses relatively low-risk investments with a tangible short-to-medium term payback is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 30

Deciding how to make the trade-offs between the different types of IT work is the essence of effective:

A) planning.
B) budgeting.
C) strategy.
D) prioritization.

Question 31

The type of IT Strategy initiative that features small-scale, experimental initiatives designed to test the viability of new concepts or technologies is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 32

Effective ________ is vital for organizations.

A) planning
B) prioritization
C) strategy development
D) budgeting

Question 33

The biggest challenges for CIOs are:

A) organizational barriers.
B) planning and budgets.
C) supportive governance structures.
D) managerial control systems.

Question 34

Strategy development should be:

A) a two-way process between the business and IT.
B) a two-way process between the business and its customers.
C) a two-way process between the business and its partners.
D) a two way process between the business and finance.
E) Both B and C.

Question 35

The type of IT Strategy initiative that features projects designed to extend or transform how a company does business is called a/an:

A) Infrastructure initiative.
B) Opportunity leverage initiative.
C) Business opportunities initiative.
D) Business enabling initiative.
E) Business improvement initiative.

Question 36

The development of integrated, cross-functional systems has:

A) increased the importance of technology strategy but not corporate strategy.
B) increased the importance of corporate strategy but not technology strategy.
C) increased the importance of corporate and technology strategy that cross traditional lines of business.
D) increased the importance of value models.

Question 37

________ give both business and IT leaders a broad yet focused topic of interest that challenges them to move beyond current operations.

A) Business plans
B) Themes
C) Value Models
D) Strategies

Question 38

IT leaders are now making significant strides in articulating IT strategy
And linking it more effectively with:

A) business opportunity.
B) business enabling.
C) business improvement.
D) business strategy.

Question 39

The IT strategy development process that can lead to an overrepresentation of business improvement projects in the IT portfolio is called:

A) a "rolling" planning/budget cycle.
B) an enterprise architecture.
C) prioritization.
D) funding different "buckets".

Question 40

A strategy is an approach to:

A) doing business.
B) finding new markets.
C) evaluating existing markets and competitors.
D) exploring opportunities.
E) All of the above

Question 41

Should business and IT strategies complement and support each other relative to the business environment? Why?

Question 42

List and describe three processes companies use to develop IT strategy.

Question 43

How has the impact of IT grown in companies?

Question 44

What are the organizational challenges to effective strategic alignment?

Question 45

How has business strategy changed in the last decade with regard to IT strategy? What are the effects?

Question 46

What are some challenges for Chief Information Officers?

Question 47

List and describe the four critical success factors for effective IT strategy development.

Question 48

What are some of the problems facing IT managers when they develop IT strategy?

Question 49

List and describe the five types of initiatives involved with implementing a strategic IT program.

Question 50

How has globalization affected the development of both business and IT strategy?