Question 1

Partnership relationships are generally short-term and influenced by the price of the service.

Accepted Answer

Partnership relationships can be both short-term or long-term and are influenced by various factors such as mutual benefits, trust, and communication, in addition to the price of the service.

Question 2

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.

Accepted Answer

While the use of emerging technologies can support IT-business alignment, it is not considered a necessary enabler. The other choices (senior executive support for IT, IT understanding the business, and well-prioritized IT projects) are generally agreed upon as key factors in achieving IT-business alignment.

Question 3

In the multilocal form of international strategy, a primary governance mechanism utilized is centralized IT structure.

Accepted Answer

In the multilocal form of international strategy, the primary governance mechanism utilized is decentralized IT structure, allowing each local entity to have control over their own IT operations. This allows for greater flexibility and responsiveness to local market needs.

Question 4

Typically, a function that is not a core competency but is a critical success factor should be implemented using a strategic alliance.

Accepted Answer

A strategic alliance can be used to access expertise or resources that are critical to the success of a project, even if they are not a core competency of the organization. This helps to mitigate the risk of investing in developing the capability in-house and allows the organization to focus on their core competencies.

Question 5

The governance mechanisms for dealing with support or commodity-like functions are the responsibility of senior administrative levels of the organization's management structure.

Accepted Answer

The answer of The governance mechanisms for dealing with support...

Question 6

To be effective, outsourcing relationships should be treated as transactional agreements.

Accepted Answer

Outsourcing relationships should not be treated solely as transactional agreements. Instead, they require a partnership approach that focuses on mutual benefits, continuous improvement, and open communication. This approach helps build trust and enables both parties to work together more effectively.

Question 7

Career cross-over is an example of a process-based governance form.

Accepted Answer

Career cross-over involves a process where individuals shift from one career path to another. This process-based form of governance focuses on the steps involved in transitioning to a different career.

Question 8

30% of IT projects are cancelled before completion; 50-100% are over budget and 6 months late.

Accepted Answer

These statistics are commonly quoted in the IT industry and are based on various studies and surveys. They highlight the challenges and risks involved in managing IT projects effectively.

Question 9

In the global exporter form of international strategy, if IT is used at all, it is supported from the parent company.

Accepted Answer

In the global exporter form of international strategy, IT support typically centralizes at the parent company to maintain consistency and control over the technology infrastructure and applications used across the organization.

Question 10

Cross training refers to the permanent reassignment of IT staff to the business unit and business unit staff to IT.

Accepted Answer

Cross training involves training employees to perform different jobs or tasks within an organization to increase flexibility and coverage, not permanently reassigning them to different units.

Question 11

In the transnational/metanational form of international strategy, a primary governance mechanism utilized is a federated IT structure.

Accepted Answer

In the transnational/metanational form of international strategy, a federated IT structure is commonly used as a primary governance mechanism for coordinating and managing operations across different locations and business units. This structure involves a decentralized framework in which IT systems and processes are customized to the needs of each individual unit while also being interconnected and managed centrally to facilitate cross-unit collaboration and standardization.

Question 12

Typically, important strategic applications do not require traditional financial assessments.

Accepted Answer

Strategic applications often involve long-term investments and intangible benefits that may not be easily quantifiable using traditional financial assessments.

Question 13

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

Accepted Answer

The selection and use of organizational processes to make decisions about how to obtain and deploy IT resources and competencies is the definition of IT governance. Critical success factors refer to the key elements that are essential for the success of a project or organization. Strategic alignment maturity is a framework for assessing an organization's ability to align its IT with its business goals. Technology risk mitigation refers to the process of identifying and managing risks associated with the use of technology. None of these concepts fully capture the selection and use of organizational processes for obtaining and deploying IT resources and competencies, making IT governance the best choice.

Question 14

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.

Accepted Answer

High number of sick days taken is less directly related to misalignment between business and IT strategies. Misalignment typically manifests in operational inefficiencies, management issues, and decreased productivity, rather than in health-related outcomes of employees.

Question 15

A most likely function to be outsourced is project management.

Accepted Answer

Project management is a core function that involves planning, executing, and closing projects, which directly impacts an organization's success. While it can be outsourced, it is not the most likely function to be outsourced compared to others like IT services, customer support, or manufacturing.

Question 16

Steering committees best describes the IT governance alternative that is the formal assessment and review of IT's contributions to business strategies and infrastructure.

Accepted Answer

Steering committees are groups that provide strategic direction and oversight for IT projects or initiatives, rather than being primarily focused on the formal assessment and review of IT's contributions to business strategies and infrastructure. This assessment and review function is more typically part of IT governance frameworks or processes.

Question 17

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.

Accepted Answer

A thin matrix governance is characterized by a minimalist approach where the corporate IT management provides guidance and support to the business unit but does not have direct authority. This is suitable for cross-functional initiatives where collaboration between different departments is essential. In this type of governance, decision-making power is decentralized, and business units can make decisions independently while receiving support from IT management.

Question 18

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.

Accepted Answer

The selection and use of organizational processes to make decisions about IT resources and competencies includes who makes the decisions, why they make the decisions, and how they make the decisions. The location where the decisions are made is not a relevant factor in this process.

Question 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.

Accepted Answer

While an organization may have steering committees for the operational, strategic, and tactical levels, a steering committee for the knowledge level is not a common practice.

Question 20

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.

Accepted Answer

Organizational risk actually refers to risks that originate within the project's hosting organization, such as resource constraints, operational processes, and internal systems, rather than external environmental factors.

Quiz 11: IT Governance