Chapter 16 AIS

Val IT requires managers to focus on major questions including:

-are we doing the right things -are we doing them the right way -are we doing them well -are we getting the benefits

In the adapt step of the balanced scorecard management processes organizations perform which of the following

-conduct profitability analytics -evaluate effectiveness of strategy -test strategy map assumptions

Which of the following are examples of enterprise IT

-customer relationship management software -supply chain management software

The balanced scorecard management process allows companies to: (Check all that apply). Multiple select question. describe their implementation strategy describe business benefits monitor their performance monitor complementary resources

-describe their implementation strategy -monitor their performance

Process performance is measured in terms of which of the following? Multiple select question. Price Cost Quality Time

Cost Quality Time

True or false: The business model canvas is completely different from a strategy map.

False

________ IT are those that perform a single function, such as enhancing productivity for standalone tasks

Function

Which of the following are potential impacts of IT on the elements of a business model canvas (select all that apply)? Multiple select question. Gather data about customer segments Coordination with key partners Support key activities Track key resources Be sold to various customer segments

Gather data about customer segments Coordination with key partners Support key activities Track key resources

Which of the following are intangible information technology investments? Multiple select question. IT help desk staff Communication networks IT training Individual desktop computers

IT help desk staff IT training

Which of the following would NOT be listed as a key activity on a business model canvas? Multiple choice question. Important suppliers Sourcing processes Manufacturing processes Delivery processes

Important suppliers

_______________ IT are those that allow people to communicate with one another

Network

Which of the following is NOT usually listed under the revenue streams element of a business model canvas? Multiple choice question. Personnel expense Ad revenue Subscription revenue Brokerage fees

Personnel expense

The four steps to implementing Val IT include all of the following: Multiple select question. Recognize problems with prior IT investments. Define characteristics of the ideal future state. Take action. Assess the organizations' readiness to review IT business value management.

Recognize problems with prior IT investments. Define characteristics of the ideal future state. Take action.

Which of the following is not a product characteristic that affects customers' willingness to buy? Multiple choice question. The product quality The product price The product supplier The product functionality

The product supplier

True or false: A Balanced Scorecard framework allows companies to asses the value of IT investments in terms of contribution to strategic objectives.

True

T/F organizations can employ strategy maps to evaluate IT investments without implementing a balanced scorecard performance management system

True Reason: Organizations do not need to use a balanced scorecard to benefit from developing strategy maps.

True or false: Businesses with segmented customers offer variations of their products to different segments.

True Reason: The purpose of segmenting customers is to define the variations of products that could serve that segment.

Management of IT benefits over an investments life cycle is called ____________ IT framework

VAL

Management of IT benefits over an investment's life cycle is called the _____ IT framework.

Val

A framework intended to help managers create business value from IT investments is called: Multiple choice question. AIS IT Investment IT Val IT Balanced Scorecard

Val IT

Which of the following would not be part of the customer relationship element in the business model canvas? Multiple choice question. Personal assistance Web-based support Wholesalers Self-service

Wholesalers

Intangible IT investments can be summarized as the employees' ___________ to use the technology effectively

abilities

Niche market models focus on a subset of customers with distinct ____.

characteristics, features, or needs

Compared to other types of IT, enterprise IT provides more capabilities but also requires more _____ resources to achieve potential benefits.

complementary

The value of IT can depend on the existence of ______ organizational capabilities.

complementary

Process performance is measured in terms of which of the following

cost, time, quality, and throughput

The process perspective describes that firm's objectives for its business processes so that firm operates _______ while also delivering products and services that meet its customers' requirements. a. effectively b. efficiently c. in a cost efficient manner

efficiently

Which of the following can help companies achieve a positive return on investment for their IT investments according to industry week magazine

employ a formal structured approach

The balance scorecard framework uses accounting based measures of performance in the ___________ perspective

financial

The balanced scorecard is a ___ management system that allows managers to measure the firm's performance from multiple perspectives that follow from the firm's mission, strategy, and objectives.

performance

Executives should analyze each proposed IT investment as part of a _______________ of potential investments

portfolio

In a Balanced Scorecard framework, IT value is assessed at the _____ level instead of at the _____ level. individual; portfolio portfolio; individual

portfolio; individual

Which of the following are attributes of a firm product relevant to the firm's value proposition. transportation price quality advertising

price quality

The ____________ perspective describes that firm's objectives for its business processes so that firm operates efficiently while also delivering products and services that meet its customers requirements

process

The balanced scorecard describes performance from four perspectives, including financial, learning and growth, customer, and _______________

process

After implementing enterprise IT organizations have difficulty assessing its benefits because it becomes embedded in one or more organizational _____________

processes

Key activities are the essential business ______ to make the business model work.

processes

Distribution channels are the means by which _____ and services get to customers.

products or goods

The value proposition defines what the organization does to attract and ______ customers.

retain or keep

In the __________ step of the balance scorecard management process the company establishes specific objectives, measures, targets, and initiatives

translate

The firm's________ proposition includes attributes of its products such as price quality and selection as well as attributes of its relationship with its customers and its brand image

value

Which of the following is an example of function IT? Word processing software Email applications Map applications Spreadsheet software

- Word processing software - Spreadsheet software

Enterprise IT can deliver which of the following organizational capabilities? Multiple select question. Transaction automation Process management automation Instant message Process integration

-transaction automation -process management automation -process integration -customer service

The three categories of information technology are function, _______, and enterprise.

network

Information technology can affect all ______ elements of the business model canvas.

nine or 9

A strategy map allows firms to assess and prioritize gaps between their current and desired ___________ levels

performance

Accounting-based _____ measures the success of the firm's investments in learning and growth, process performance, and ability to deliver value to customers.

performance

Each of the following are implementation steps for Val IT except: Multiple choice question. taking action. providing oversight of all organization's IT investments programs. recognizing problems with prior IT investments. defining characteristics of the ideal future state.

providing oversight of all organization's IT investments programs

Which of the following are examples of complementary resources that can determine the potential benefit of IT investments? Skilled workers Teamwork Product development Creativity

-skilled workers -teamwork -the way the work is performed -the ability to make decisions

Rank the steps in the balanced scorecard management process in the sequence that they should occur. formulate translate link monitor adapt

1. formulate 2. translate 3. link 4. monitor 5. adapt

Which of the following are types of business processes described by kaplan and norton in their book strategy maps

1. operations management processes 2. customer management processes 3. innovation processes 4. regulatory and social processes

Select all of the following that are elements of the business model canvas. (Check all that apply). Multiple select question. Cost structure Function IT Channels Value proposition Customer segments Learning & Growth Revenue streams Customer value Key resources Enterprise IT Customer relationships Key activities Key partners

Cost structure Channels Value proposition Customer segments Revenue streams Key resources Customer relationships Key activities Key partners

Which of the following are examples of enterprise IT? Multiple select question. Spreadsheet software Word processing software Customer relationship management software Supply chain management software

Customer relationship management software Supply chain management software

_____ IT are those that restructure interactions within the organization as well as with external partners.

Enterprise

True or false: cost structure includes only fixed costs.

False Reason: It includes both fixed and variable (and mixed)

Match the actions that take place with the name of the balanced scorecard management process step. Formulate Translate Link Monitor Adapt -Establish long-term budgets -Identify ways the company can compete -Reconsider assumptions and develop alternatives -Prepare operating budgets and operate processes -Track performance and provide feedback to managers

Formulate - Identify ways the company can compete Translate - Establish long-term budgets Link - Prepare operating budgets and operate processes Monitor - Track performance and provide feedback to managers Adapt - Reconsider assumptions and develop alternatives

Which of the following are examples of network IT? Multiple select question. Instant messaging Supply chain management applications Computer-aided design software Email software

Instant messaging Email software

Which of the following is NOT a feature of the business model canvas? Multiple choice question. It helps focus discussion It does not show the impact of IT It is easy to understand It shows connections between investments and outcomes

It does not show the impact of IT

Which of the following is NOT an element of the business model canvas? Multiple choice question. Key partners Key technologies Key activities Key resources

Key technologies

Which of the following correctly describe relationships among the four balanced scorecard perspectives? Process affects Financial Customer affects Learning and Growth Process affects Customer Learning and Growth affects Process Financial affects Process

Learning and Growth affects Process Process affects Customer Process affects Financial

Which of the following is NOT a distribution channel? Multiple choice question. Websites Mass market Partner retailers Wholesalers

Mass market

The balanced scorecard framework uses accounting-based measures of performance in the ______ perspective.

financial

In the balanced scorecard management process, the step in which the company examines its competitive environment and identifies potential competitive advantages is called the __________ step. Multiple choice question. link to operations formulate monitor translate adapt

formulate

match

formulate: identify ways the company can compete translate: establish long-term budgets link: prepare operating budgets and operate processes monitor: track performance and provide feedback to managers adapt: reconsider assumptions and develop alternatives

The balance scorecard framework described firm performance from ___________ different perspectives based on the firm's strategy to achieve shareholder value

four

The balanced scorecard framework describes firm performance from --______ different perspectives based on the firm's strategy to achieve shareholder value.

four

In the learning and growth perspective, the organization sets goals to ensure that it is strategically ready to continuously ____________ its process performance

improve

In the learning and growth perspective, the firm addresses goals for investments in human capital, organizational capital, and ___ capital.

information

In a recent survey, more than 40% of executives reported that their company's investments in IT are providing little or no return on _____.

investment

Individual IT investments are ___________ important than the overall portfolio of IT investments

less

In the _____ to operations step of the balanced scorecard management process, companies establish operating budgets and prioritize business process improvements.

link

After developing a strategy map, companies then plan, implement, and monitor performance using the balanced scorecard ______ process.

management

Operational dashboard systems allow senior managers to evaluate in the _________ step of the balanced scorecard management process

monitor

In the _____ step in the balanced scorecard management process, the company monitors performance to ensure processes are meeting objectives.

monitoring, monitor, or monitors

Companies generally strive to lower process costs, lower cycle times, improve process ___________ and increase process throughput

quality

Cost structure identifies key costs of the business model, and those costs can be affected by economies of _____.

scale or scope

A revenue stream is the result of selling products and services to each customer ______.

segment

The customer relationship element specifies the relationship to be established with each customer _____.

segment

The balanced scorecard aligns business activities with the vision and _____________ of the organization

strategy