Chapter 1 Managing the Information Technology Resource 1
Chapter 1
Introduction
True-False Questions
1.
The Strategic Alignment Maturity Assessment Model is primarily concerned with
determining how well the business and IT functions are integrated.
2.
Customer satisfaction is one of Porter’s three primary strategies for organizations to achieve
competitive advantage.
3.
A responsibility of the Chief Information Officer is to participate in the development of
corporate strategies.
4.
Strategic planning is primarily concerned with short-term goals.
5.
Operational activities are primarily concerned with day-to-day processes and actions.
6.
Internet links, video, and sounds are forms of rich communication.
7.
Generally, the CIO is the most senior IT executive and always reports to an executive within
the financial function.
8.
Information technology is often seen as a cost center that must have a return on investment
(ROI).
9.
In the departmental, or business unit view of computing, information technology has a task–
based focus.
2 Managing the Information Technology Resource
10.
Hypermediation is used to describe the change in a business model where the middleman is
essentially eliminated.
11.
The fundamental roles and responsibilities of the IT function are the same regardless of
whether you are involved in e-IT or legacy systems.
12.
Reintermediation involves bringing together the various partners in a traditional supply chain
in new ways utilizing the Internet.
13.
An example of infomediation is using a search engine that aggregates information into
categories.
14.
Information technology impacts both support activities and primary activities in Porter’s
Value Chain.
15.
The IT-productivity paradox is defined as the disjoint between application programmers’
salaries and the lines of code produced by them.
Multiple Choice Questions
16.
A method to evaluate the current state of alignment between the business functions and IT
best describes:
a. Porter Competitive Forces Model.
b. Strategic Alignment Maturity Assessment Model.
c. SWOT analysis.
d. net worth evaluation.
Chapter 1 Managing the Information Technology Resource 3
17.
Each of the following is true about the management of IT except:
a. it requires a broad view of technology and business.
b. the formal title of Chief Information Officer may not exist in the organization.
c. it involves strategic, tactical, and operational concerns of the organization.
d. the roles and tasks of a CIO differ depending on size and complexity of the organization.
18.
The one demand that can have the greatest impact on the reputation of the CIO is:
a. managing day-to-day operational activities.
b. project management.
d. legal contract management.
e. negotiating with external entities.
19.
Key areas of activity that should receive constant and careful attention from management
best describe:
a. critical success factors.
b. mission statements.
c. business processes.
d. business standards.
20.
All of the following are generally considered primary eras of computing except:
a. mainframe computer era.
b. Wintel computer era.
c. pervasive computing era.
d. personal computer era.
21.
Each of the following represents a concern of individual-level computing except:
a. inter-relationship concerns.
b. task-based concerns.
c. potential loss of standards.
d. potential loss of control over data.
4 Managing the Information Technology Resource
22.
The perception that information technology must have a return on investment that meets the
same criteria as purchasing any piece of equipment is best classified as viewing IT as a(n):
a. investment center.
b. cost center.
c. profit center.
d. data center.
23.
Departmental information systems that provide a narrow view of the information used by a
workgroup can sometimes result in:
a. infomediation.
b. information overload.
c. information silos.
d. information exchange.
24.
Which of the following best describes an example of IT driving a successful business
strategy?:
a. Amazon.com’s use of an intranet system to provide computer based training for
employees.
b. Dell Computer Corporation implementing an internal e-mail system.
c. Levi Strauss’ decision to sell online exclusively through two of its channel partners.
d. USAA’s use of document imaging to provide one-stop-shopping for its clients.
25.
Each of the following is considered a key role of information technology in relation to an
organization’s goals except:
a. enabler of e-business.
b. change agent.
c. inhibitor of business transformation.
d. enabler of globalization.
26.
Using the Internet to reassemble buyers, sellers and other partners in a traditional supply
chain in new ways best describes:
a. infomediation.
b. disintermediation.
c. hypermediation.
d. reintermediation.
Chapter 1 Managing the Information Technology Resource 5
27.
The eBay e-business model provides a mechanism for bringing together buyers and sellers
who would otherwise be unlikely to buy and sell goods in a very large marketplace.not meet.
This is an example of which of the following:
a. infomediation.
b. disintermediation.
c. hypermediation.
d. reintermediation.
28.
The application of IT in an appropriate and timely manner, in harmony with business goals,
strategies, and needs best defines:
a. alignment.
b. enablers.
c. management.
d. controls.
29.
Which of the following is considered a primary activity in Porter’s Value Chain model?:
a. fFirm infrastructure
b. oOperations
c. hHuman resource management
d. tTechnology management
30.
The following are all criteria of the Strategic Alignment Maturity ssessment except:
a. ommunications.
b. cope & rchitecture.
c. overnance.
d. eadership.
Fill In the Blanks
Reference: p. 2
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by restricting their market.
Reference: p. 2
33.
developed to support individual needs is referred to as the era.
The computing era in which computing power was distributed and applications were
Reference: p. 4
34.
business activities including external activities is referred to as the pervasive computing era.
35.
The computing era in which computing power was distributed to support the entire range of
Reference: p. 5
view of the information used and generated by a workgroup.
Reference: p. 89
36.
The intermediation concept which in some ways is the opposite of disintermediation is called
Reference: p. 10
borders of their “home” country.
Reference: p. 13
information or aggregate information in categories as an effort to narrow the scope of a
search for information.
Reference: p. 13
39.
dynamic changes in products or services can be made with no change to business processes.
Reference: p. 124
Reference: p. 14
harmony with business goals, strategies, and needs.
Reference: p. 14
32.
Chapter 1 Managing the Information Technology Resource 7
42.
When an individual is no longer able to effectively process the amount of information he or
Reference: p. 14
all business functions and extend outside the business boundaries.
Reference: p. 16-17
45.
organization, all of which information technology has been shown to impact.
Reference: p. 17
the measurable evidence of this transformation is limited.
Reference: p. 19
Essay Questions
46.
List and briefly describe five general business skills that today’s IT managers should have.
she is exposed to, they can be considered to be experiencing information overload.
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47.
Describe the time horizons of an organization’s operational, tactical, and strategic activities.
48.
The evolution of information technology can be described as encompassing three primary
eras of computing. List and briefly describe the three eras.
Chapter 1 Managing the Information Technology Resource 9
49.
List and briefly discuss the four roles or levels of information technology within an
organization and discuss the different issues the IT function faces in dealing with them.
50.
Define IT-business strategic alignment.