BADM 7050 Exam 2, 2.0

Nolan discussed ITs Stages of Growth. Which of the following definitions is the initiation stage?

Batch processing to automate clerical operations to achieve cost reduction, operational systems focus, lack of management interest, and centralized development

The ultimate goal for a successful IT department is:

IT-Business Alignment

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying? a) Allocation method b) Corporate budget method c) Usage method d) TCO e) Chargeback method

a) Allocation method

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 should your management style and project budget and deadlines be for this project? Select one: 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

a. Authoritative, with a fixed budget and deadlines

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

a. 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 effectively manage the project scope and urgency. What type of project management approach should you use? Select one: a. Big bang b. Improvisation c. Guided evolution d. Top-down coordination e. Championed dealmaking

a. Big bang

Which of the following plans is designed to counter a manmade or natural disaster that could cripple an enterprise? Select one: a. Business Continuity Plan b. Disaster Recovery Plan c. Business Disaster Plan d. Disaster Business Case e. Business-IT Maturity Model

a. Business Continuity Plan

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 ____. Select one: a. CFO; CEO b. CEO; CFO c. CFO; COO d. COO; CEO e. CEO; CTO

a. CFO; CEO

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

a. CFO; CEO

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? Select one: a. Defender b. Prospector c. Analyzer d. Reactor

a. Defender

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

a. Hybrid Captive

Question 4 Valuing an IT investment is difficult for of many reasons. One reason is: Select one: a. Many IT investments are necessities 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."

a. Many IT investments are necessities and payback is hard to calculate.

Valuing an IT investment is difficult for of many reasons. One reason is: Select one: a. Many IT investments are necessities 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."

a. Many IT investments are necessities and payback is hard to calculate.

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

a. Outsourcing

An innovation that improves improves a product or service for an existing customer is a... Select one: a. Sustaining innovation b. Disruptive innovation c. Continuous change innovation d. Punctuated equilibrium innovation e. Experimental innovation

a. Sustaining innovation

Which of the following plans is designed to counter a manmade or natural disaster that could cripple an enterprise? a. business continuity plan b. disaster recovery plan c. business disaster plan d. disaster business case e. business IT maturity model

a. business continuity plan

Valuing an IT investment is difficult for many reasons. One reason is: a. many IT investments are necessities 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"

a. many IT investments are necessities and payback is hard to calculate

Scope may be divided into product scope and __________ scope. Select one: a. project b. cost c. time d. time e. sequence

a. project

Which of the following is a temporary endeavor undertaken to create a unique product, service, or result? Select one: a. project b. event c. scope d. requirement e. system

a. project

Innovation that improves a product or service for an existing customer is a... a. sustaining innovation b. disruptive innovation c. continuous change innovation d. punctuated equilibrium innovation e. experimental innovation

a. sustaining innovation

an analyzer corporation:

attempts to maintain a stable limited line of products or services and is frequently "second in" with a more cost-efficient product or service

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

b. Complicated infrastructure and staffing considerations.

______________ organizations scatter IT components in different locations to address local business needs. Select one: a. Distributed Control b. Decentralized c. Federalism d. Joint-Control e. Centralized

b. Decentralized

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

b. Direct cutover

Which one of the following needs would suggest outsourcing as an option? Select one: a. Reduced capacity. b. Ease of transition to new technologies c. Increase supplier relations d. Growth of data centers e. All of the above.

b. Ease of transition to new technologies

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

b. IT architecture

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

b. IT architecture (fig 9.5)

The balanced scorecard: a. Is a tool used to communicate the organizational metrics using a traffic light approach b. Is a method used to evaluate the health of an organization by looking at all value drivers such as customers, the workforce, the financials and business processes c. Is used to communicate the TCO for an IT investment d. Is one of many metrics used to evaluate the value of an IT investment

b. Is a method used to evaluate the health of an organization by looking at all value drivers such as customers, the workforce, the financials and business processes

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

b. Mainframes

Which of the following is NOT an accurate statement about outsourcing? Select one: 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 efficiency 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 difficult to gauge the economics of IT activity

b. 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? Select one: a. Technical levers b. Political levers c. Structural levers d. Cultural levers e. Strategic levers

b. Political levers

You work for a company that is a first mover into a new market. What type of corporate strategy does this define? Select one: a. Defender b. Prospector c. Analyzer d. Reactor

b. Prospector

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? Select one: a. IRR b. ROI c. Payback d. NPV e. EVA

b. ROI

A CIO must spend part of the day performing_______tasks and the some part of the day working on operational tasks. Rarely can a CIO focus on just one task in any given day. a. Administrative b. Strategic c. Database d. Financial e. Technology

b. Strategic

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

b. costs; benefits

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

b. costs; benefits

___________ of the 1960s dictated a centralized approach to IT governance. a. servers b. mainframes c. networks d. PCs e. The WWW

b. mainframes

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. Select one: a. offshore b. multivendor c. nearshore d. centralized e. full outsourcing

b. multivendor

Which of the following is NOT an accurate statement about outsourcing? a. outsourcing is risky because there is potential of hidden costs b. outsourcing success is guaranteed because companies know how to structure contracts c. economic efficiency 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 difficult to gauge the economics of IT activity

b. outsourcing success is guaranteed because companies know how to structure contracts

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? Select one: a. Initiation b. Contagion c. Control d. Integration e. Maturity f. Red tape

c. Control

An ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environment defines: Select one: a. Resources b. Capabilities c. Dynamic capabilities d. Agility e. Flexibility

c. Dynamic capabilities

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: Select one: a. Distributed Control b. Decentralized c. Federalism d. Joint-Control e. Centralized

c. 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? Select one: a. Distributed Control b. Decentralized c. Federalism d. Joint-Control e. Centralized

c. Federalism

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

c. Federalism

All of the following are qualities of a dashboard EXCEPT: a. Highly summarized b. Key metric driven c. Raw data d. Effective Visualization e. Alerts

c. Raw data

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? Select one: a. Turnaround b. Support c. Strategic d. Factory

c. Strategic

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

c. Subprojects

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

c. System evaluation

Which of the following is NOT a consideration when you are examining the internal business environment? Select one: 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

c. The technological scope of the enterprise

Organizations choose to outsource IT activities for all of the following reasons EXCEPT: Select one: 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

c. To create a core competency

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

c. business case

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

c. business case.

An ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments defines: a. resources b. capabilities c. dynamic capabilities d. agility e. flexibility

c. dynamic capabilities

A company gains competitive advantage by: a. low price focus b. better service focus c. either a or b d. both a and b e. none of the above

c. either a or b

IT organizations implement powerful information systems like ERP and CRM 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

c. 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

c. federalism

Organizations may shy away from cloud computing because: Select one: a. it does not support multiple time zones. b. it costs more money than offshoring. c. of increased data security and privacy concerns. d. SLAs cannot be established. e. short term contracts are required.

c. of increased data security and privacy concerns.

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) ______ Select one: 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

d. (1) agility (2) cost

Which of the following development approaches is an iterative, incremental approach that allows development teams to respond to the unpredictability of building and implementing software? Select one: a. Prototyping b. SDLC c. DSDM d. Agile software development e. RAD

d. Agile software development

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

d. Business monarchy

To provide potential customers an idea of an outsourcing provider's development capabilities, the Software Engineering Institute developed this rating: a. tier b. IaaS c. ISO9001 d. CMM e. Six Sigma

d. CMM

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

d. CTO

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

d. CTO

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

d. Consultants

An IT dashboard provides: a. Summary information gathered over a period of time b. Statistics on system usage c. A distraction from where more IT attention should be focused d. Current and critical measurements for the organization in an easy to read manner

d. Current and critical measurements for the organization in an easy to read manner

Which of the following is an accurate statement about outsourcing? Select one: 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

d. Firms that view IT as a support function will always outsource their IT

The functions of an entire data center can be replaced by which one of the following cloud computing providers? Select one: a. Software as a Service (SaaS) b. Application Service Provider (ASP) c. Platform as a Service (PaaS) d. Infrastructure as a Service (IaaS) e. Outsourcing as a Service (OaaS)

d. Infrastructure as a Service (IaaS)

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

d. Offshoring

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

d. Reactor

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

d. Reduce their operational expenditure of IT

All of the following are risks associated with IS outsourcing EXCEPT: Select one: a. Loss of control b. Dependency on outsourcing providers c. Inadequate adaption of newer technologies d. Requiring more training of in-house staff e. Potential loss of competitive secrets

d. Requiring more training of in-house staff

Increasing project success requires gaining commitment from stakeholders. All of the following help to sustain that commitment for the life of the project EXCEPT: Select one: a. Continually reminding stakeholders of the project benefits b. Placing key stakeholders on the project team c. Encouraging the project sponsor to provide public support for the project d. Surprising the stakeholders by keeping the system's workings a secret e. Assigning the right leader to be the project sponsor

d. Surprising the stakeholders by keeping the system's workings a secret

Your professor enumerated some thoughts on governance. Which of the following is not one of the thoughts that he offered? Select one: 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

d. The future of IT is where IT teaches the business how to use technology themselves

Your professor enumerated some thoughts on governance. Which of the following is not one of the thoughts that he offered? 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

d. The future of IT is where IT teaches the business how to use technology themselves

Which of the following legitimized outsourcing? Select one: a. The formation of EDS b. The outsourcing of GM c. The total outsourcing of Continental d. The selective outsourcing of Kodak e. The emergence of cloud computing

d. The selective outsourcing of Kodak

Which of the following legitimized 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 emergence of cloud computing

d. The selective outsourcing of Kodak

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

d. Waterfall or Software development life cycle (SDLC)

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

d. consultants

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

d. dashboard

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

d. dashboard

Which IT governance archetype consists of C-level executives and at least one other business group? An IT executive may be an additional participant. Select one: a. Business monarchy b. IT monarchy c. Feudal d. Federal e. IT Duopoly

d. federal

A company that seeks an IT portfolio that lowers 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

d. transactional systems

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. Select one: a. strategic systems b. infrastructure c. informational systems d. transactional systems e. social media

d. transactional systems

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying? a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method

e) Chargeback method

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

e) none of the above

Building a business case for an IT investment: a. Allows management to establish priorities for investing in different projects b. Helps gain commitment for the IT investment from business managers c. Creates a basis for monitoring the investment d. Identifies the benefits of the investment e. All of the above

e. All of the above

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

e. Chargeback

The process of gathering, incorporating, and measuring stakeholder expectations for IT is known as? Select one: a. Change management b. Risk management c. Leadership d. Governance e. Expectation management

e. Expectation management

The decision about approval and justification of new technologies would fall into which one of the five major IT decision categories? Select one: a. IT principles b. IT architecture c. IT infrastructure d. Business application needs e. IT investment and prioritization

e. IT investment and prioritization

The decision about approval and justification of new technologies would fall into which one of the five major IT decision categories? a. IT principles b. IT architecture c. IT infrastructure d. business and application needs e. IT investment and prioritization

e. IT investment and prioritization

Which of the following makes counbtries attractive for offshoring? a. English language proficiency b. political stability c. economic stability d. countries with friendly relationships e. all of the above

e. all of the above

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

e. chargeback

You are the CIO of a small company and you decide to outsource your email 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

e. selective outsourcing

Which of the following is an accurate statement about how IT should be implemented in an organization? Select one: 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

f. None of the above

Which of the following is an accurate statement about the traditional approach of strategy making for IT? Select one: 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

f. None of the above

Which of the following is true about organizational inertia? Select one: 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

f. None of the above

Which of the following is NOT a strategy for successful IT experimentation? Select one: 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.

g. A, B, and C, but not D or E

a defender corporation:

locates and maintains a secure niche in a relatively stable product or service area and concentrates on doing the best job possible in a limited area

a reactor corporation:

responds in those areas where it is forced to by environmental pressures

a prospector corporation:

values "first in" in new-product and market areas and responds rapidly to early signals concerning areas of productivity