Chapter 11 Managing the Information Technology Resource 1
Chapter 11
IT Governance
True-False Questions
1.
The governance mechanisms for dealing with support or commodity-like functions are the
responsibility of senior administrative levels of the organization’s management structure.
2.
Typically, important strategic applications do not require traditional financial assessments.
3.
30% of IT projects are cancelled before completion; 50-100% are over budget and 6 months
late.
4.
Cross training refers to the permanent reassignment of IT staff to the business unit and
business unit staff to IT.
5.
Steering committees best describes the IT governance alternative that is the formal
assessment and review of IT’s contributions to business strategies and infrastructure.
6.
Career cross-over is an example of a process-based governance form.
7.
A thin matrix best describes the form of governance to manage cross-functional initiatives
whereby corporate IT management acts in a role of providing guidance and assistance to the
business unit for adopting global infrastructure changes.
8.
Organizational risk is the source of project risk that is related to the external environment
such as the size and scope of the markets being addressed.
2 Managing the Information Technology Resource
9.
In the global exporter form of international strategy, if IT is used at all, it is supported from
the parent company.
10.
In the transnational/metanational form of international strategy, a primary governance
mechanism utilized is a federated IT structure.
11.
In the multilocal form of international strategy, a primary governance mechanism utilized is
centralized IT structure.
12.
A most likely function to be outsourced is project management.
13.
Typically, a function that is not a core competency but is a critical success factor should be
implemented using a strategic alliance.
14.
Partnership relationships are generally short-term and influenced by the price of the service.
15.
To be effective, outsourcing relationships should be treated as transactional agreements.
Multiple Choice Questions
16.
Each of the following is part of the selection and use of organizational processes to make
decisions about how to obtain and deploy IT resources and competencies except:
a. who makes the decisions.
b. where they make the decisions.
c. why they make the decisions.
d. how they make the decisions.
Chapter 11 Managing the Information Technology Resource 3
17.
Each of the following is most likely to be a symptom of misalignment between business and
IT except:
a. high turnover of IT professionals.
b. frequently fired IT manager(s).
c. productivity decrease.
d. high number of sick days taken.
18.
Which of the following best describes the selection and use of organizational processes to
make decisions about how to obtain and deploy IT resources and competencies?
a. Critical success factors
b. Strategic alignment maturity
c. IT governance
d. Technology risk mitigation
19.
Typically, an organization has separate steering committees that address each of the
following levels except:
a. operational level.
b. knowledge level.
c. strategic level.
d. tactical level.
20.
Each of the following is generally considered an enabler of IT-business alignment except:
a. senior executive support for IT.
b. use of emerging technologies.
c. IT understands the business.
d. well-prioritized IT projects.
21.
Each of the following is generally considered a symptom of poor IT governance except:
a. late adoption of technology.
b. business units aren’t accountable to corporate IT for any technologies they deploy.
c. lack of enterprise architecture because of disagreement.
d. lack of common sourcing policy.
4 Managing the Information Technology Resource
22.
Which of the following IT governance alternatives best describes the “how” and “why” of
financial resources which are allocated to projects?
a. Value measurement
b. Budget
c. Cost center
d. Partnership/alliance management
23.
Which of the following IT governance alternatives best describes when IT staff work in the
business unit and business unit staff work in IT?
a. Liaison
b. Process
c. Career crossover
d. Cross training
24.
Which of the following IT governance alternatives best describes the team structure and
approaches that are defined and applied to define strategies, plans, priorities, and make IT
decisions?
a. Value measurement
b. Communicate/market/negotiate
c. Partnership/alliance management
d. Process
25.
Which of the following IT governance alternatives best describes the formal assessment and
review of IT’s contributions to business strategies and infrastructure?
a. Value measurement
b. Communicate/market/negotiate
c. Partnership/alliance management
d. Shared risks, responsibilities, rewards/penalties
Chapter 11 Managing the Information Technology Resource 5
26.
Which of the following best describes the form of governance to manage cross-functional
initiatives whereby corporate IT management acts in a role of providing guidance and
assistance to the business unit for adopting global infrastructure changes?
a. Thick matrix
b. Thin matrix
c. Strategic community
d. Matrixed project team
27.
Which of the following best describes the form of governance to manage cross-functional
initiatives in a collaborative fashion that emphasizes knowledge sharing and providing
feedback to corporate headquarters?
a. Thick matrix
b. Thin matrix
c. Strategic community
d. Matrixed project team
28.
Which of the following best describes the sources of project risk that are related to the
external environment?
a. Market risk
b. Technology risk
c. Organizational risk
d. Developmental risk
29.
Which of the following best describes the sources or project risk that are related to internal
issues such as project cost, the scope of change required, and project’s fit with the firm’s
capabilities?
a. Market risk
b. Technology risk
c. Organizational risk
d. Development risk
6 Managing the Information Technology Resource
30.
Which of the following best describes the process of examining the financial underpinnings
of a corporation as one of the first steps in a large scale IT purchase, with the goal of
understanding risks associated with the relationship?
a. Third-party arbitration
b. Request for proposal review
c. Risk profiling
d. Due diligence
Fill In the Blanks
31.
The selection and use of organizational processes to make decisions about how to obtain and
Reference: p. 293
32.
A best practice for strategic alignment is to have a steering committee comprised of a group
levels.
Reference: p. 295
33.
A person who is the primary point of contact for facilitating IT business relationships best
Reference: p. 301
34.
The governance alternative in which accountability for IT investment results is shared by the
Reference: p. 302
35.
The form of governance that requires corporate management to evaluate effectiveness of the
business unit representatives with respect to their ability to implement the corporate
Reference: p. 305
36.
A governance mechanism that uses teams for making decisions regarding organizational
Reference: p. 306
Chapter 11 Managing the Information Technology Resource 7
probability of occurrence within categories of organization impact, development effort,
technology, and organizational capability.
Reference: p. 310
39.
Reference: p. 312
search of new markets, usually by employing agents or trading partners to market and
distribute their products in different geographic markets.
Reference: p. 314
40.
The multilocal international strategy type is best served by IT governance mechanisms of
decentralized structure, local office CTO or CIO, and application investment decisions made
by local offices to meet local market requirements.
Reference: p. 316
41.
Reference: p. 319
A group comprised of senior vendor representatives that convene periodically at the request
of senior IT management to address an issue of interest to the organization best describes
bandwidth, computer and storage capacity, and administrative management to organizations
in order to run applications.
Reference: p. 321
The thing(s) an organization must do to be successful best describes critical success factors.
Reference: p. 323
44.
relationship best describes due diligence..
The process of examining the financial underpinnings of a corporation as one of the first
steps in a large-scale IT purchase, with the goal of understanding risks associated with the
Reference: p. 324
predetermined future date best describes evergreen clause.
45.
The automatic extension of a contract agreement if the vendor is not notified by a
Reference: p. 325
37.
The scenario planning grid is a technique for classifying and grouping projects according to
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Essay Questions
46.
List five symptoms of misalignment.
47.
Define IT governance.
48.
List and describe three factors that are critical to the success of an IT steering committee.
Chapter 11 Managing the Information Technology Resource 9
49.
Give one example each of a technique that can help mitigate the risks of technology,
development, organizational, and market risk.
50.
List five best practices IT management should consider in developing a contract to license
software from a vendor.