Question 1

In the past, organizations met additional demands for IT functionality by simply adding more systems.

Accepted Answer

False

Question 2

The utility IT function delivery stage features functions that are interchangeable and indistinguishable.

Accepted Answer

The utility IT function delivery stage typically involves delivering specific, tailored IT services that meet the unique needs of an organization, rather than offering interchangeable and indistinguishable functions.

Question 3

While some IT functions are well defined and common to most companies, others are unique, non-standardized, and not easily shared.

Accepted Answer

While some IT functions such as network management and software development are common to most companies, others may be unique to a specific organization depending on their industry and business operations, making them non-standardized and not easily shared.

Question 4

All IT functions mature and evolve in the following order: Unique, Common, Standardized, Commoditized, and Utility.

Accepted Answer

This is known as the IT value chain and describes the stages of development for IT functions. The stages are Unique, Common, Standardized, Commoditized, and Utility.

Question 5

Insourcing involves IT personnel that are brought into an organization to supplement the existing permanent IT staff to provide the IT function.

Accepted Answer

Insourcing refers to hiring IT personnel within the organization rather than outsourcing the IT function to a third-party company. This is done to supplement the existing IT staff and improve the overall IT function within the organization.

Question 6

IT capabilities represent the specific activities that are delivered by IT in the fulfillment of its responsibilities.

Accepted Answer

The answer of IT capabilities represent the specific activities that...

Question 7

The most commoditized IT function is hardware management.

Accepted Answer

Hardware management is a highly standardized and commoditized IT function, with many service providers offering similar services and solutions. This has led to a highly competitive market with low profit margins and limited differentiation among providers.

Question 8

The utility IT function delivery stage seeks to differentiate the organization in the marketplace.

Accepted Answer

The utility IT function delivery stage focuses on providing basic IT services efficiently and reliably, rather than differentiating the organization in the marketplace.

Question 9

Network services, server farms, storage capacity and backup services are examples of the common IT function delivery stage.

Accepted Answer

The answer of Network services, server farms, storage capacity and...

Question 10

Public utilities operate in competition with other providers, whereas private utilities tend to be single providers overseen by regulatory agencies who govern supply, pricing, and size.

Accepted Answer

Public utilities are typically monopolies regulated by government agencies to ensure fair prices and adequate services, whereas private utilities may face competition depending on the market and regulatory environment.

Question 11

In-house IT staff should always be assigned tasks that are in the unique-common maturity stages of the IT function delivery model such as strategy & planning, data management, and project management.

Accepted Answer

Assigning in-house IT staff tasks that align with the unique-common maturity stages of the IT function delivery model ensures that the organization's IT capabilities are properly utilized and optimized. This approach helps in enhancing IT processes, streamlining operations, and improving overall performance.

Question 12

The Business Analysis function acts as a liaison between IT and the business to align IT planning, match technology to business needs, and forecast future business directions.

Accepted Answer

The statement accurately describes the role and purpose of the Business Analysis function.

Question 13

The Data Center Operations function manages all operations of the production data center and data storage environment including backup, DRP, security and access, and availability.

Accepted Answer

The statement is true, as the Data Center Operations function is responsible for managing all aspects of running and maintaining a production data center and its associated infrastructure. This includes ensuring that all data is properly backed up and can be recovered in the event of a disaster, implementing security measures to protect against unauthorized access or data breaches, and ensuring that the data center is always available to end-users.

Question 14

A utility function typically consists of an amalgam of suppliers operating within an integrated network capable of generating sufficient resource to fulfill continuous on-demand requests.

Accepted Answer

This statement correctly describes a utility function, which involves multiple suppliers working together to provide resources on demand.

Question 15

The Systems Analysis function acts as a liaison between IT and the business to align IT planning, match technology to business needs, and forecast future business directions.

Accepted Answer

The answer of The Systems Analysis function acts as a...

Question 16

The business analysis function remains a relatively unique IT function that differs considerably from organization to organization.

Accepted Answer

The business analysis function can vary in scope and responsibilities depending on the organization, making it a unique function in the IT industry.

Question 17

The standardized IT function delivery stage satisfies organizational needs by providing critical IT components but offers little ability to differentiate the business.

Accepted Answer

The answer of The standardized IT function delivery stage satisfies...

Question 18

Standardized IT functions can easily and effectively be transacted as commodity IT functions.

Accepted Answer

Standardized IT functions, such as email hosting or data storage, can be easily outsourced or automated, allowing them to be treated as commodity IT functions.

Question 19

With the rise of third party IT consulting, the most commoditized IT function is business analysis.

Accepted Answer

The most commoditized IT function is often considered to be basic technical support or help desk services, as these tasks can be more easily standardized and outsourced compared to the specialized and context-specific nature of business analysis.

Question 20

It can be assumed that mature IT functions would be likely candidates for external delivery, while unique functions would be likely candidates for internal delivery.

Accepted Answer

Mature IT functions, such as help desk support and infrastructure management, are often outsourced to external vendors as they are standardized and can be more efficiently delivered through economies of scale. Unique functions, such as strategic planning and innovation, would be better suited for internal delivery as they require specialized knowledge and skills specific to the organization.

Quiz 17: Delivering IT Functions: a Decision Framework