LSU BADM 7050 Exam 2 Questions With
Correct Answers
What |method |of |IT |funding |is |the |most |equitable?
Chargeback
If |you |want |to |boost |investments |in |your |infrastructure, |the |focus |of |your |firm |is |what?
Business |Effectiveness
If |you |want |to |boost |investments |in |your |transaction |systems, |the |focus |of |your |firm |is |what?
Business |Efficiency
If |you |are |trying |to |lower |your |costs, |what |type |of |technology |are |you |going |to |invest |in?
Transactional |Systems
What |are |the |2 |common |types |of |IT |monitoring |tools?
1) |Balanced |Scorecard: |Focuses |attention |on |the |organization's |value |drivers. |Companies |use |
scorecard |to |assess |the |full |impact |of |their |corporate |strategies |on |their |customers |and |
workforce |as |well |as |their |financial |performance. |Provide |summary |information |gathered |over |
a |period |of |time
2) |IT |Dashboards: |Summarizes |key |metrics |for |senior |managers |in |a |manner |that |provides |
quick |identification |of |the |status |of |the |organization; |provides |a |snapshot |of |metrics |at |any |
given |point |in |time
In |the |early |days |of |IT, |who |would |the |CIO |report |to? |And |why? |And |who |does |the |CIO |report |
to |now? |And |why?
- |Before, |the |CIO |reported |to |the |CFO- |The |role |was |predominantly |responsible |for |controlling |
IT |costs.
-Now, |CIO |reports |to |the |CEO |or |the |Board |of |Directors |due |to |the |role |being |an |official |"C-
Suite" |level |position- |Involved |with |operational |and |strategic |tasks |related |to |IT. |Responsible |
for |all |IT |responsibilities |throughout |the |organization
What |are |the |4 |asset |classes |of |IT |investments?
,1) |Transactional |Systems: |Streamline |or |cut |costs |on |the |way |business |is |done |(equivalent |to |
Level |1 |in |the |Business |Maturity |Model)
2) |Infrastructure |Systems: |Provide |the |base |foundation |of |shared |IT |services |used |for |multiple
|applications |such |as |servers, |networks, |tablets, |or |smartphones |(equivalent |to |Level |2 |in |the |
Business |Maturity |Model)
3) |Informational |Systems: |Provide |information |used |to |control, |manage, |communicate, |
analyze, |or |collaborate |(equivalent |to |Level |2 |in |the |Business |Maturity |Model)
4) |Strategic |Systems: |Gain |competitive |advantage |in |the |marketplace |(equivalent |to |Level |3 |in |
the |Business |Maturity |Model)
What |is |a |balanced |approach |to |managing |a |company's |IT |organization?
Federalism
What |type |of |organization |management |does |IT |control |most |of |its' |infrastructure |in |one |
location?
Centralized |IS |Organization
What |type |of |organizational |management |should |a |company |use |if |it |is |attempting |to |obtain |
the |advantages |derived |from |both |centralized |and |decentralized |organizational |paradigms?
Federalism: |A |structuring |approach |that |distributes |power, |hardware, |software, |data, |and |
personnel |between |a |central |IS |group |and |IS |in |business |units.
What |are |the |benefits |of |federalism?
- |Economies |of |scale
- |Control |of |standards
- |Critical |mass |of |skills
- |Users |control |IT |priorities
- |Business |units |have |ownership
- |Responsive |to |business |unit's |needs
- |IT |vision |and |leadership
- |Group-wide |IT |strategy |and |architecture
- |Strategic |control
In |the |1960's, |what |technology |dictated |a |centralized |approach |to |governance?
Mainframes- |because |the |mainframe |resided |in |one |physical |location |and |represented |a |
considerable |investment. |Centralized |decision |making, |purchasing, |maintenance, |and |staff |kept
|these |early |computing |behemoths |running.
,In |the |1980's, |what |technology |allowed |companies |to |shift |to |a |decentralized |governance?
Personal |Computer |(PC)
What |is |the |difference |between |centralized |and |decentralized |governance?
Centralized: |bring |together |all |staff, |hardware, |software, |data, |and |processing |into |a |single |
location.
Decentralized: |scatter |these |components |across |different |locations |to |address |local |business |
needs.
What |are |the |6 |different |archetypes |of |governance?
1) |Business |Monarchy: |C-exec
2) |IT |Monarchy: |IT |exec
3) |Feudal: |Business |unit |leaders
4) |Federal: |C-exec |+ |other |business |group |(unit |leaders, |maybe |IT |exec)
5) |IT |Duopoly: |IT |exec |+ |another |group |(unit |leaders)
6) |Anarchy: |Individual |users
What |are |the |5 |decision |areas |of |IT?
1) |IT |Principles- |How |to |determine |IT |assets
2) |IT |Architecture- |How |to |structure |IT |assets
3) |IT |Infrastructure |Strategies- |How |to |build |IT |assets
4) |Business |Application |Needs- |How |to |acquire, |implement, |and |maintain |IT
5) |IT |Investment |& |Prioritization- |How |much |to |invest |& |where |to |invest |in |IT |assets
What |type |of |outsourcing |does |Kodak |represent?
Selective |Outsourcing
What |was |the |original |reason |why |firms |outsourced |IT?
Reducing |costs
Why |do |firms |outsource |IT |activities?
- |Lower |costs |due |to |economies |of |scale
- |Ability |to |handle |processing |peaks
, - |The |client |company's |need |to |consolidate |data |centers
- |Concentrate |on |core |competencies
What |are |the |risks |of |outsourcing?
- |Requires |that |a |client |company |surrender |some |control |over |critical |aspects |of |the |enterprise
- |Outsourcing |client |companies |may |not |adequately |anticipate |new |technological |capabilities |
when |negotiating |outsourcing |contracts-result |in |a |loss |in |IS |flexibility.
- |By |surrendering |IS |functions, |a |client |company |risks |the |potential |loss |of |competitive |
advantage
Why |are |companies |reluctant |to |embrace |cloud |computing?
- |Technical |lock |in
- |Long‐term |business |commitments
- |Lost |IT |capabilities, |which |ultimately |could |lead |to |over-dependence |on |the |outsourcing |
provider
- |Concern |over |security, |specifically |with |external |threats |from |remote |hackers |and |security |
breaches |as |the |data |travels |to |and |from |the |cloud
- |Data |privacy
What |activities |will |IT |organizations |outsource?
1) |Strategic |Networks
2) |Platforms
3) |Business |Ecosystems
Why |are |outsourcing |decisions |difficult |and |expensive |to |reverse?
Must |reacquire |the |necessary |infrastructure |and |staff
Why |does |a |project |manager |break |up |a |project? |And |how?
To |organize |the |work |of |a |project |team, |the |PM |breaks |a |project |into |subprojects. |Then |
organizes |these |subprojects |around |distinct |activities, |such |as |quality |control |testing. |
Contracting |work |externally |to |limit |costs |or |other |drains |on |crucial |project |resources.
What |type |of |flexibility |is |needed |to |maintain |balance |in |a |project |with |a |fixed |budget |and |a |
well-defined |scope?
- |Only |two |elements |within |the |project |triangle |(scope, |cost, |time) |can |be |optimized, |and |
the |third |must |be |adjusted |to |maintain |balance.
Correct Answers
What |method |of |IT |funding |is |the |most |equitable?
Chargeback
If |you |want |to |boost |investments |in |your |infrastructure, |the |focus |of |your |firm |is |what?
Business |Effectiveness
If |you |want |to |boost |investments |in |your |transaction |systems, |the |focus |of |your |firm |is |what?
Business |Efficiency
If |you |are |trying |to |lower |your |costs, |what |type |of |technology |are |you |going |to |invest |in?
Transactional |Systems
What |are |the |2 |common |types |of |IT |monitoring |tools?
1) |Balanced |Scorecard: |Focuses |attention |on |the |organization's |value |drivers. |Companies |use |
scorecard |to |assess |the |full |impact |of |their |corporate |strategies |on |their |customers |and |
workforce |as |well |as |their |financial |performance. |Provide |summary |information |gathered |over |
a |period |of |time
2) |IT |Dashboards: |Summarizes |key |metrics |for |senior |managers |in |a |manner |that |provides |
quick |identification |of |the |status |of |the |organization; |provides |a |snapshot |of |metrics |at |any |
given |point |in |time
In |the |early |days |of |IT, |who |would |the |CIO |report |to? |And |why? |And |who |does |the |CIO |report |
to |now? |And |why?
- |Before, |the |CIO |reported |to |the |CFO- |The |role |was |predominantly |responsible |for |controlling |
IT |costs.
-Now, |CIO |reports |to |the |CEO |or |the |Board |of |Directors |due |to |the |role |being |an |official |"C-
Suite" |level |position- |Involved |with |operational |and |strategic |tasks |related |to |IT. |Responsible |
for |all |IT |responsibilities |throughout |the |organization
What |are |the |4 |asset |classes |of |IT |investments?
,1) |Transactional |Systems: |Streamline |or |cut |costs |on |the |way |business |is |done |(equivalent |to |
Level |1 |in |the |Business |Maturity |Model)
2) |Infrastructure |Systems: |Provide |the |base |foundation |of |shared |IT |services |used |for |multiple
|applications |such |as |servers, |networks, |tablets, |or |smartphones |(equivalent |to |Level |2 |in |the |
Business |Maturity |Model)
3) |Informational |Systems: |Provide |information |used |to |control, |manage, |communicate, |
analyze, |or |collaborate |(equivalent |to |Level |2 |in |the |Business |Maturity |Model)
4) |Strategic |Systems: |Gain |competitive |advantage |in |the |marketplace |(equivalent |to |Level |3 |in |
the |Business |Maturity |Model)
What |is |a |balanced |approach |to |managing |a |company's |IT |organization?
Federalism
What |type |of |organization |management |does |IT |control |most |of |its' |infrastructure |in |one |
location?
Centralized |IS |Organization
What |type |of |organizational |management |should |a |company |use |if |it |is |attempting |to |obtain |
the |advantages |derived |from |both |centralized |and |decentralized |organizational |paradigms?
Federalism: |A |structuring |approach |that |distributes |power, |hardware, |software, |data, |and |
personnel |between |a |central |IS |group |and |IS |in |business |units.
What |are |the |benefits |of |federalism?
- |Economies |of |scale
- |Control |of |standards
- |Critical |mass |of |skills
- |Users |control |IT |priorities
- |Business |units |have |ownership
- |Responsive |to |business |unit's |needs
- |IT |vision |and |leadership
- |Group-wide |IT |strategy |and |architecture
- |Strategic |control
In |the |1960's, |what |technology |dictated |a |centralized |approach |to |governance?
Mainframes- |because |the |mainframe |resided |in |one |physical |location |and |represented |a |
considerable |investment. |Centralized |decision |making, |purchasing, |maintenance, |and |staff |kept
|these |early |computing |behemoths |running.
,In |the |1980's, |what |technology |allowed |companies |to |shift |to |a |decentralized |governance?
Personal |Computer |(PC)
What |is |the |difference |between |centralized |and |decentralized |governance?
Centralized: |bring |together |all |staff, |hardware, |software, |data, |and |processing |into |a |single |
location.
Decentralized: |scatter |these |components |across |different |locations |to |address |local |business |
needs.
What |are |the |6 |different |archetypes |of |governance?
1) |Business |Monarchy: |C-exec
2) |IT |Monarchy: |IT |exec
3) |Feudal: |Business |unit |leaders
4) |Federal: |C-exec |+ |other |business |group |(unit |leaders, |maybe |IT |exec)
5) |IT |Duopoly: |IT |exec |+ |another |group |(unit |leaders)
6) |Anarchy: |Individual |users
What |are |the |5 |decision |areas |of |IT?
1) |IT |Principles- |How |to |determine |IT |assets
2) |IT |Architecture- |How |to |structure |IT |assets
3) |IT |Infrastructure |Strategies- |How |to |build |IT |assets
4) |Business |Application |Needs- |How |to |acquire, |implement, |and |maintain |IT
5) |IT |Investment |& |Prioritization- |How |much |to |invest |& |where |to |invest |in |IT |assets
What |type |of |outsourcing |does |Kodak |represent?
Selective |Outsourcing
What |was |the |original |reason |why |firms |outsourced |IT?
Reducing |costs
Why |do |firms |outsource |IT |activities?
- |Lower |costs |due |to |economies |of |scale
- |Ability |to |handle |processing |peaks
, - |The |client |company's |need |to |consolidate |data |centers
- |Concentrate |on |core |competencies
What |are |the |risks |of |outsourcing?
- |Requires |that |a |client |company |surrender |some |control |over |critical |aspects |of |the |enterprise
- |Outsourcing |client |companies |may |not |adequately |anticipate |new |technological |capabilities |
when |negotiating |outsourcing |contracts-result |in |a |loss |in |IS |flexibility.
- |By |surrendering |IS |functions, |a |client |company |risks |the |potential |loss |of |competitive |
advantage
Why |are |companies |reluctant |to |embrace |cloud |computing?
- |Technical |lock |in
- |Long‐term |business |commitments
- |Lost |IT |capabilities, |which |ultimately |could |lead |to |over-dependence |on |the |outsourcing |
provider
- |Concern |over |security, |specifically |with |external |threats |from |remote |hackers |and |security |
breaches |as |the |data |travels |to |and |from |the |cloud
- |Data |privacy
What |activities |will |IT |organizations |outsource?
1) |Strategic |Networks
2) |Platforms
3) |Business |Ecosystems
Why |are |outsourcing |decisions |difficult |and |expensive |to |reverse?
Must |reacquire |the |necessary |infrastructure |and |staff
Why |does |a |project |manager |break |up |a |project? |And |how?
To |organize |the |work |of |a |project |team, |the |PM |breaks |a |project |into |subprojects. |Then |
organizes |these |subprojects |around |distinct |activities, |such |as |quality |control |testing. |
Contracting |work |externally |to |limit |costs |or |other |drains |on |crucial |project |resources.
What |type |of |flexibility |is |needed |to |maintain |balance |in |a |project |with |a |fixed |budget |and |a |
well-defined |scope?
- |Only |two |elements |within |the |project |triangle |(scope, |cost, |time) |can |be |optimized, |and |
the |third |must |be |adjusted |to |maintain |balance.
