THEORIES OF
DIGITAL BUSINESS
EXAM 23 OCTOBER 2020
Consisting of 40 multiple choice questions
and the answer key (page 12)
Part of Master Program
'Business Administration Digital Business'
, THEORIES OF DIGITAL BUSINESS
EXAM 23 OCTOBER 2020
1. Consider the following statements:
I. Transaction Processing Systems are subject-oriented.
II. Data warehouses are time variant and grow over time (no data is deleted).
a. Statement I is correct, statement II is NOT correct.
b. Both statements are NOT correct.
c. Statement I is NOT correct, statement II is correct.
2. Consider Henderson, J. C., & Venkatraman, H. (1993). Strategic alignment:
Leveraging information technology for transforming organizations. IBM systems
journal, 38(2.3), 472-484, as discussed in class (not a required article, just listing the
reference here to be complete).
About which of the four dominant alignment perspectives in the Henderson and
Venkatraman's Strategic Alignment Model are we talking, when the IT Strategy is
leading, IT is aimed at customer satisfaction, the IT infrastructure and processes are
derived from the IT strategy and only after that, the Business acts as prioritizer:
a. The 'Service level' perspective.
b. Neither the 'Service level' nor the 'Technology transformation' perspective.
c. The 'Technology transformation' perspective.
3. The 'Factory' stage in MacFarlan's Strategic Grid is characterized by current high
dependence on IT and low potential strategic impact of IT. Knowing this, what is
management's behavior?
a. Level of senior management involvement is low, as there are not any major IT
developments on the horizon that will fundamentally alter the nature of the
business.
b. IT could still be a key feature of future strategic planning, therefore significant
top management involvement in IT (planning) must be established.
c. Firms or systems will place the least amount or emphasis on IT (planning) in
terms of senior management concern and involvement, as IT has little
relevance and simply supports some processes.
4. One of the frameworks discussed in our class on IT governance was Luftman's
'Business IT Alignment Maturity' framework. Which of the following statements about
this framework is CORRECT?
a. Luftman's 'partnership' dimension in this model
b. Luftman's 'IT value' dimension in this model is used to assess how
organizations measure the value of their IT investments: a focus on technical
measures is considered a low level of maturity.
c. This framework helps organizations identify their strengths and weaknesses
with regard to the efficient and effective management of the IT resources.
1
DIGITAL BUSINESS
EXAM 23 OCTOBER 2020
Consisting of 40 multiple choice questions
and the answer key (page 12)
Part of Master Program
'Business Administration Digital Business'
, THEORIES OF DIGITAL BUSINESS
EXAM 23 OCTOBER 2020
1. Consider the following statements:
I. Transaction Processing Systems are subject-oriented.
II. Data warehouses are time variant and grow over time (no data is deleted).
a. Statement I is correct, statement II is NOT correct.
b. Both statements are NOT correct.
c. Statement I is NOT correct, statement II is correct.
2. Consider Henderson, J. C., & Venkatraman, H. (1993). Strategic alignment:
Leveraging information technology for transforming organizations. IBM systems
journal, 38(2.3), 472-484, as discussed in class (not a required article, just listing the
reference here to be complete).
About which of the four dominant alignment perspectives in the Henderson and
Venkatraman's Strategic Alignment Model are we talking, when the IT Strategy is
leading, IT is aimed at customer satisfaction, the IT infrastructure and processes are
derived from the IT strategy and only after that, the Business acts as prioritizer:
a. The 'Service level' perspective.
b. Neither the 'Service level' nor the 'Technology transformation' perspective.
c. The 'Technology transformation' perspective.
3. The 'Factory' stage in MacFarlan's Strategic Grid is characterized by current high
dependence on IT and low potential strategic impact of IT. Knowing this, what is
management's behavior?
a. Level of senior management involvement is low, as there are not any major IT
developments on the horizon that will fundamentally alter the nature of the
business.
b. IT could still be a key feature of future strategic planning, therefore significant
top management involvement in IT (planning) must be established.
c. Firms or systems will place the least amount or emphasis on IT (planning) in
terms of senior management concern and involvement, as IT has little
relevance and simply supports some processes.
4. One of the frameworks discussed in our class on IT governance was Luftman's
'Business IT Alignment Maturity' framework. Which of the following statements about
this framework is CORRECT?
a. Luftman's 'partnership' dimension in this model
b. Luftman's 'IT value' dimension in this model is used to assess how
organizations measure the value of their IT investments: a focus on technical
measures is considered a low level of maturity.
c. This framework helps organizations identify their strengths and weaknesses
with regard to the efficient and effective management of the IT resources.
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