BADM 7050 Exam 2, Part 2

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _______ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2) a. (1) transactions (2) connections b. (1) savings (2) expansion c. (1) cost (2) ability d. (1) agility (2) cost e. (1) ability (2) agility

The correct answer is: (1) agility (2) cost

IT can play a role... a. At the product level of innovation b. At the process level of innovation c. At the strategic level of innovation d. At the tactical level of organizations e. A, B, C, and D f. A, B, and C, but not D

The correct answer is: A, B, and C, but not D

Which of the following is NOT a strategy for successful IT experimentation? a. Motivate b. Support c. Direct d. Manage e. Creation f. A, B, C and D, but not E g. A, B, and C, but not D or E h. A, B, C, D, and E.

The correct answer is: A, B, and C, but not D or E

Which of the following is NOT a strategy for successful IT experimentation? a.Motivate b.Support c.Direct d.Manage e.Creation f.A, B, C and D, but not E g.A, B, and C, but not D or E h.A, B, C, D, and E.

The correct answer is: A, B, and C, but not D or E

If someone wants a system cheaply, quickly, and with a large scope, we can conclude: a.That desire represents the three sides of the Project Triangle b.This is normally not possible: you can usually only achieve two of those three objectives at a time. c.Management might be providing an impossible goal. d.All of the above e.None of the above

The correct answer is: All of the above

IT organizations will outsource which one of the following IT activities? a. Programming b. IT transactions c. Knowledge-based business processes d. Data storage e. All of the above.

The correct answer is: All of the above.

You work for a company that is a second mover into a new market that offers a more cost efficient product or service. What type of corporate strategy does this define? a.Defender b.Prospector c.Analyzer d.Reactor

The correct answer is: Analyzer

Which of the following is true about organizational inertia? a.Any change process for an individual will ask the individual to simultaneously unlearn and relearn something b.Organizational change can occur even if everyone in the organization does not change c.The toughest aspect to organizational change is managing the change process d.Most users will respond to change in a positive way e.A, B, and C, but not D f.None of the above

The correct answer is: Any change process for an individual will ask the individual to simultaneously unlearn and relearn something

You are running a project for a company and find that the leadership is on board to the project, the employees are on board to the project, and you can e!ectively manage the project scope and urgency. What should your management style and project budget and deadlines be for this project? a. Authoritative, with a fixed budget and deadlines b. Participative, with a fixed budget and deadlines c. Authoritative, with adjustable budget and deadlines d. Participative, with adjustable budget and deadlines

The correct answer is: Authoritative, with a fixed budget and deadlines

What is it called when a company brings IS capabilities that were previously outsourced back inhouse? a.Backsourcing b.Insourcing c.Software as a Service d.Nearshoring e.Cloud computing

The correct answer is: Backsourcing

You are running a project for a company and find that the leadership is on board to the project, the employees are on board to the project, and you can e!ectively manage the project scope and urgency. What type of project management approach should you use? a. Big bang b. Improvisation c. Guided evolution d. Top-down coordination e. Championed dealmaking

The correct answer is: Big bang

You are running a project for a company and find that the leadership is on board to the project, the employees are on board to the project, and you can effectively manage the project scope and urgency. What type of project management approach should you use? a.Big bang b.Improvisation c.Guided evolution d.Top-down coordination e.Championed dealmaking

The correct answer is: Big bang

Which of the following plans is deisnged to counter a manmade or natural disaster that could cripple an enterprise? a. Business Continutiy Plan b. Disaster Recovery Plan c. Business Disaster Plan d. Disaster Business Model e. Business IT Maturity Model

The correct answer is: Business Continuity Plan

The archetype that is represented by a group of business executives that might or might not include their CIO is: a. IT monarchy b. Feudal c. Federal d. Business Monarchy e. IT duopoly

The correct answer is: Business monarchy

In the early days of IT, the CIO would report to the ____ as IT was seen as a way to control costs. As technology has become more strategic and able to deliver a competitive advantage, CIOs now report directly to the ____. a. CFO; CEO b. CEO; CFO c. CFO; COO d. COO; CEO e. CEO; CTO

The correct answer is: CFO; CEO

All of the following are methods used to value an IT investment EXCEPT: a. Payback analysis b. ROI c. NPV d. CTO e. IRR

The correct answer is: CTO

In which type of organization management does IT control most of its IT infrastructure in one location? a. Distributed IS organization b. Decentralized IS organization c. Federalism d. Joint-Control IS organization e. Centralized IS organization

The correct answer is: Centralized IS organization

Which method of IT funding is the most equitable, as the costs associated with IT are based on use? a. Allocation b. Corporate budgeting c. Usage d. Distributed e. Chargeback

The correct answer is: Chargeback

Outsourcing decisions can be di!icult and expensive to reverse because of: a. Cultural di!erences. b. Complicated infrastructure and sta!ing considerations. c. Data security. d. Data loss. e. CMM.

The correct answer is: Complicated infrastructure and sta!ing considerations.

Outsourcing decisions can be difficult and expensive to reverse because of: a.Cultural differences. b.Complicated infrastructure and staffing considerations. c.Data security d.Data loss. e.CMM.

The correct answer is: Complicated infrastructure and staffing considerations.

All of the following are mechanisms that can be created to ensure good IT governance EXCEPT: a. Policies b. Review boards c. Steering Committees d. Consultants e. IT Governance Council

The correct answer is: Consultants

You work for a company that is focusing upon the cost versus benefit of IT systems. What stage of growth, according to Nolan, is your IT company in? a.Initiation b.Contagion c.Control d.Integration e.Maturity f.Red tape

The correct answer is: Control

The inital reason organizations outsourced IT was: a. Downsizing b. Innovation c. Cost reduction d. Standardization e. Capacity

The correct answer is: Cost Reduction

You work for a company that o!ers a limited range of products or services and attempts to maintain a secure niche in a stable set of products or service area. What type of corporate strategy does this define? a. Defender b. Prospector c. Analyzer d. Reactor

The correct answer is: Defender

You work for a company that offers a limited range of products or services and attempts to maintain a secure niche in a stable set of products or service area. What type of corporate strategy does this define? a.Defender b.Prospector c.Analyzer d.Reactor

The correct answer is: Defender

Your company decides to have everyone come in on Monday and instead of using an old system, they are to use a new system. What type of distribution approach is your company using? a. Parallel strategy d. Direct cutover c. Pilot testing d. Phased

The correct answer is: Direct Cutover

IT organizations implement powerful information systems like ERP and SCM that provide centralized data repositories. In addition, business units have tools for their particular units that individuals can use to report on and analyze collected data. This IT governance approach is best described as: a.Distributed Control b.Decentralized c.Federalism d.Joint-Control e.Centralized

The correct answer is: Federalism

Most companies would like to obtain the advantages derived from both centralized and decentralized organizational paradigms. What type of IT governance model would best help them to achieve this goal? a. Distributed Control b. Decentralized c. Federalism d. Joint-Control e. Centralized

The correct answer is: Federalism

Which of the following is a balanced approach to managing a company's IT organization? a. Centralization b. Decentralization c. Federalism d. Joint-Control e. Business Centricity

The correct answer is: Federalism

Which of the following is an accurate statement about outsourcing? a. Firms that view IT strategically will always outsource their IT b. Firms that view IT as a turnaround will always outsource their IT c. Firms that view IT as a factory will always outsource their IT, all else being equal d. Firms that view IT as a support function will always outsource their IT

The correct answer is: Firms that view IT as a support function will always outsource their IT

To reduce risk, a project should have which one of the following qualities? a.High complexity b.High clarity c.Big in size d.Large in budget e.Lots of programmers.

The correct answer is: High clarity

Which type of captive center performs core business processes for a parent company and outsources noncore work o!shore? a. Hybrid Captive b. Shared Captive c. Divest Captive d. Terminated Captive e. Core Captive

The correct answer is: Hybrid Captive

The deicions that determine how IT assets are structured fall into which one of the five major IT decisiosn categories? a. IT principles b. IT architecture c. IT infrastructure d. Business application needs e. IT investment and prioritization

The correct answer is: IT architecture

The archetype that is represented by IT executives and one other group is: a. IT monarchy b. Feudal c. Federal d. Business monarchy e. IT duopoly

The correct answer is: IT duopoly

How does IT impact the cost structure of an organization? a. IT increases the transaction costs of a firm b. IT increases the agency costs of a firm c. IT increases the cost of information acquisition, but decreases the cost of information acquisition d. IT makes it incrementally cheaper for an agent to make a decision

The correct answer is: IT makes it incrementally cheaper for an agent to make a decision

Which IT governance archetype consists of IT individuals or groups of IT executives? a. Business monarchy b. IT monarchy c. Feudal d. Federal e. IT Duopoly

The correct answer is: IT monarchy

The first step of the innovation process is: a.Idea b.Proof of concept c.Trial or pilot d.Transition

The correct answer is: Idea

A system development life cycle: a. Assures us that as some systems die others are born in a sort of "circle of life." b. Is a chain of events that count down to the demise of a system. c. Illustrates the steps needed to go from one stage to another: for example, analysis to design to construction to implementation to operation to maintenance. d. Specifies how to build a prototype quickly then improve on it. e. Is a self-propelled ride at the "Technology Amusement Park" at Dixie Landing in Baton Rouge

The correct answer is: Illustrates the steps needed to go from one stage to another: for example, analysis to design to construction to implementation to operation to maintenance.

If a company decides to make and develop IS, they are using which type of sourcing? a. Outsourcing b. Cloud computing c. Inshoring d. O!shoring e. Insourcing

The correct answer is: Insourcing

The most common driver for insourcing is to: a.Keep employees loyal to the company. b.Make a system that cannot be bought. c.Develop internal skill sets. d.Maintain control over the development of the system e.Keep core competencies in-house.

The correct answer is: Keep core competencies in-house.

________ of the 1960s dictated a centralized approach to IT governance a.Servers b.Mainframes c.Networks d.PCs e.The WWW.

The correct answer is: Mainframes

Valuing an IT investment is difficult for many reasons. One reason is: a. any It investments are necessties and payback is hard to calculate. b. Increased customer satisfaction is not valued enough to justify costs. c. It investments often add no real business value. d. It managers do not see the need to value an investment whose payback period is relatively short. e. IT is seen as a necessary evil

The correct answer is: Many IT investments are necessties and payback is hard to calculate

Outsourcing to a company located in the same time zone is referred to as which type of sourcing? a. Farshoring b. Nearshoring c. Zoneshoring d. Insourcing e. Cloud computing

The correct answer is: Nearshoring

Which of the following is an accurate statement about how IT should be implemented in an organization? a. Use user profiling to assess which individuals are most likely to be resistant to the introduction of new IT b. Ground level support for a new system is more important then top management support c. Agile methodology is the best way to overcome user resistence to technology d. A and B, but not C e. A, B, and C f. None of the above

The correct answer is: None of the above

Which of the following is an accurate statement about the traditional approach of strategy making for IT? a. Traditionally, IT created an implementation plan for technology as the business was making their strategic plan b. The traditional methodology for creating IT strategy was parallel between the business and IT c. The traditional approach for creating a strategy for IT included all aspects of the organization d. The traditional approach for creating a strategic plan took into consideration the technology infrastructure as the strategic plan was being created e. A, B, C, and D are all acccurate f. None of the above

The correct answer is: None of the above

Which of the following is when an IS organization uses contractor services, or even builds its own data center, in a distant land. a.Cloud computing b.Insourcing c.Inshoring d.Offshoring e.Nearsourcing

The correct answer is: Offshoring

The purchase of a good or service that was previously provided internally, or that could be provided internally, is called: a.Outsourcing b.Insourcing c.Inshoring d.Offshoring e.Nearsourcing

The correct answer is: Outsourcing

Which of the following is NOT an accurate statement about outsourcing? a. Outsourcing is risky because there is the potential of hidden costs b. Outsourcing success is guaranteed because companies know how to structure contracts c. Economic e!iciency of outsourcing has more to do with IT practices than economies of scale d. There are large switching costs associated with IT decisions e. It is di!icult to gauge the economics of IT activity

The correct answer is: Outsourcing success is guaranteed because companies know how to structure contracts

You are in charge of a change initiative inside of your company. You decide that you are going to use the power and resources of the company to enact the change. Which of Tichy's levers are you using? a. Technical levers b. Political levers c. Structural levers d. Cultural levers e. Strategic levers

The correct answer is: Political levers

What does PMO stand for? a.Project Maintenance Office b.Project Mission and Objectives c.Product Maintenance Office d.Project Mission Office e.Project Management Office

The correct answer is: Project Management Office

You work for a company that is a first mover into a new market. Waht type of corporate strategy does this deinfe? a. Defender b. Prospector c. Analyzer d. Reactor

The correct answer is: Prospector

What is the center of the project triangle? a. Agility b. Quality c. Speed d.Cost e. Focus

The correct answer is: Quality

Which financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested? a. IRR b. ROI c. Payback d. NPV e. EVA

The correct answer is: ROI

You work for a company that responds to environmental pressure with their corporate strategy. What type of corporate strategy does this define? a. Defender b. Prospector c. Analyzer d. Reactor

The correct answer is: Reactor

Which of the following is NOT a reason why firms outsouce? a. To reduce IT costs b. downsizing c. Access to knowledge d. Reduce their operational expenditure of IT e. To focus on their business

The correct answer is: Reduce their operational expenditure of IT

You are the CIO of a small company and you decide to outsource your e-mail to a third party. What form of outsourcing is this? a.Business Process Outsourcing b.Total outsourcing c.Transitional outsourcing d.Offshore outsourcing e.Selective outsourcing

The correct answer is: Selective outsourcing

You work for a company that views IT as critical now and also believes that IT will be critical in the future. What is the role of IT in this company? a. Turnaround b. Support c. Strategic d. Factory

The correct answer is: Strategic

To help with organization and complexity, a project manager will break a project up into: a. Variables b. Business processes c. Subprojects d. Infrastructure e. Work

The correct answer is: Subprojects

Which one of the following is NOT one of the four essential elements of any project? a. Common project vocabulary b. Project team c. System evaluation d. Project cycle plan e. Project management

The correct answer is: System evaluation

Your professor enumerated some thoughts on governance. Which of the following is not one of the thoughts that he o!ered? a. IT decision making is the responsibility of IT b. The future of IT governance is a service orientation c. IT leadership is a technical challenge more than a business challenge d. The future of IT is where IT teaches the business how to use technology themselves e. The future role of a CIO is likely to be more technically oriented

The correct answer is: The future of IT is where IT teaches the business how to use technology themselves

All of the following are indications that the project is successful EXCEPT: a. Customers recieve a significant benefit from the project b. The project meets its return on investment goal. c. The project meets the established time and budget criteria. d. The project prepares the organization for future success and growth. e. The project profits are high and last for a very short time period.

The correct answer is: The project profits are high and last for a very short time period.

Which of the following legitmized outsourcing? a. The formation of EDS b. The outsourcing of GM c. The total outsourcing of Continental d. The selective outsourcing of Kodak e. The mergence of cloud computing

The correct answer is: The selective outsourcing of Kodak

Which of the following is NOT a consideration when you are examining the internal business environment? a. The diversification mode of the enterprise b. The diversification breadth of the enterprise c. The technological scope of the enterprise d. The exploitation strategy of the enterprise e. The strategic type of the enterprise

The correct answer is: The technological scope of the enterprise

Organizations choose to outsource IT activities for all of the following reasons EXCEPT: a.To realize cost savings b.To have access to specialists they do not have in-house c.To create a core competency d.To infuse cash into the company e.To support capacity on demand

The correct answer is: To create a core competency

Which development methodology is more traditional and more structured than other approaches? a. Agile programming b. Prototyping c. Open source deployment d. Waterfall or So"ware development life cycle (SDLC) e. Critical path method (CPM

The correct answer is: Waterfall or So"ware development life cycle (SDLC)

A successful project begins with a ____________ that articulates the purpose and details of the project, benefits and costs, stakeholders, and required resources. a. project plan b. Gantt chart c. business case d. dashboard e. strategy

The correct answer is: business case

To justify an IT investment and receive necessary support and approval, a manager must often create a: a.IT portfolio. b.community plan. c.business case. d.workflow diagram. e.business technology plan.

The correct answer is: business case.

The project triangle includes 3 sides: time, scope and: a.cost b.product c.event d.quality e.requirements

The correct answer is: cost

Critical to the business case is the identification of both _________ and ________. a. costs; risks b. costs; benefits c. advantages; disadvantages d. assumptions; risks e. benefits; detriments

The correct answer is: costs; benefits

Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the: a. baseline b. metrics c. portfolio d. dashboard e. monitor

The correct answer is: dashboard

In 1989, Kodak chose a _____ approach to outsourcing IS activities and chose to work with suppliers like IBM, DEC, and Businessland. This approach was soon dominated by other firms a. o!shore b. multivendor c. nearshore d. centralized e. full outsourcing

The correct answer is: multivendor

Four asset classes of IT investments include: a. Financial Systems b. Marketing systems c. Control systems d. all the above e. none of the above

The correct answer is: none of the above

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes. a.strategic systems b.infrastructure c.informational systems d.transactional systems e.social media

The correct answer is: transactional systems

To maintain balance in a project with a fixed budget and a well-defined scope, a project team will require flexibility: a. with the deadline. b. in spending. c. with project quality. d. with assumed risks. e. in achieving the goals of the business case.

The correct answer is: with the deadline