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Test Bank IT Strategy & Innovation 5th Edition McKeen

Chapter 1, From Technology to Value

QUESTIONS:

EASY

1) Choose the phrase that best completes this sentence:

_____ is the single largest category of U.S. capital investment

A. Business Analytics
B. IT
C. Marketing

D. Software

2) Is this idea true or false:

Plug-in technology and value will be delivered is called Silver Bullet Thinking.
A. True
B. False

3) Choose the phrase that best completes this sentence:

Business implementing technology without input from IT is called ____.
A. Business Design

B. Cloud Technology
C. Problem Solving
D. Shadow IT

4) Is this idea true or false:

Traditional IT metrics are an effective tool to tell the IT value story?

A. True

B. False

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5) Is this idea true or false:

Metrics help tell the full value story to justify investments and demonstrate value delivery.
A. True

B. False

6) Is this idea true or false:

When a business has a vague, unclear strategy, it will always have a low perception of the value of IT.

A. True
B. False

7) Choose the phrase that best completes this sentence:

It is best to tell the IT story using business _____.

A. metrics
B. language
C. objectives

D. strategy
E. All the above
F. None of the above

8) Is this idea true or false:

A business case and measuring success by on-time and on-budget delivery are the best practices for
managing value.

A. True

B. False

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MEDIUM

9) Choose the phrase that best completes this sentence:

_____ is responsible for ensuring that value is realized from IT investments.

A. Executive Leaders
B. Managers

C. IT Leaders

D. IT Staff

E. All the above

F. None of the above

Type: MR
10) Select all the items below from which IT value is realized.

A. A bottleneck created by accelerating a part of a process.

B. Technology itself.
C. Technology tested against customer needs, practices, or preferences.

D. Unused technology.
E. None of the above

11) Type: MR
Select the items below that should not be used in a convincing IT value business narrative

A. Explain the why, what, and how of the work.

B. The story should always be built from the technology (bottom-up).

C. The story should be tailored for each stakeholder group.

D. The story should be about the technology.

E. The story should be framed around business terms and language.

F. None of the above

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12) Type: MT
Match the reasons below with telling a story from the bottom-up or the top-down.
a. bottom-up = Keep asking, "so What?"
b. bottom-up = Justifying foundational technologies

c. top-down = Justifying new functionality

d. top-down = Fitting technology to business objectives

13) Type: MR

Select all the items below that are examples of high-level value.
A. Differentiating existing business capabilities related to products.

B. Improving essential business functions.

C. Matching industry-standard technology.
D. Potential to transform a business through new markets.

E. Reducing Risk.
F. Upgrading staff computers.
G. None of the above

14) Select all the statements that are not true about the appropriate use of metrics to tell the IT value
story.

A. A good metric has a clear link to a business outcome.

B. A good metric is difficult because IT work is several steps removed from the business objective.

C. A good metric is straightforward when outcomes are clearly defined at the outset of an initiative.
D. A good metric is understandable by a non-IT audience.

E. A good metric should be a leading indicator of change.

F. None of the above

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15) Type: MR
Select all the items below through which IT adds value.
A. Defining technology-related business objectives.
B. Delivering cost-effective ongoing services.

C. Determining solutions.
D. Executing initiatives on time and budget.

E. Identifying opportunities.

F. None of the above

16) Type: MR

Select all the items below that the focus group did not identify as a best practice to improve how the
business views IT value.

A. Articulate business strategy.

B. Ensure business engagement at all levels.
C. Improve user technology training.

D. Manage for value.

E. Provide transparency into the IT budget.

F. None of the above

Type: MR
17) Select all the items below that are not included in the value of IT.

A. Compliance
B. Infrastructure

C. Operations

D. Product Development
E. None of the above

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HARD

18) Type: MR
Select all the reasons below that have made it difficult to understand the IT value proposition.

A. The dollar value has been difficult to compute.

B. The business articulates technology's value.

C. There is different views of IT in different parts of an organization.

D. Perceptions of IT value is difficult to capture.

E. Technology changes too quickly and depreciates before its value can be computed.
F. All the above

19) Type: MT
Match the following aspects of IT Value with its definition.

a. Layers of Value = What value to deliver; where to find value; who is responsible for value; and time.
b. Perceptions of Value = Stakeholder and Corporate understanding of IT's capacity and potential.
c. Types of Value = Contingent on meeting the organization's hierarchy of needs.

d. Context = Dependent on an organization's industry, size, and rate of growth.

e. IT Budget = Not an aspect of IT Value.

20) Type: MR
Select all the items below that the focus group identified as challenges to delivering IT value.

A. Budget

B. Financial Processes
C. Inability to Articulate Value

D. Procurement Processes

E. Resource Availability
F. Unrealistic Expectations

G. None of the above

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21) Type: MT
Match the word below with the lettered blank in the following sentence:
A good value story should address (A) the audience should care, (B) the benefit is to them, (C) they will be
expected to engage in this work.
a. why = A

b. what = B

c. how = C
d. when = None

22) Type: MT
Match each word below with a lettered blank in the following sentence:

(A) the business means that IT must have a (B) understanding of their work and speak in terms of (C) value
and benefits, even for (D) initiatives.
a. engaging = A

b. deep = B

c. business = C

d. technology = D

d. assisting = None

CRITICAL THINKING

23) Type: E

As businesses become more dependent on technology, describe where the responsibility should reside to
ensure that IT delivers the expected business value?

NOTES:

The essay should discuss the ideas below from the chapter.
A - The third layer of identifying value is who is responsible. The chapter states that it is a shared
responsibility between IT and business.
B - The chapter describes business strategy makes it easier to understand IT value; therefore,
leadership has an important responsibility.
C - Students could also discuss IT's responsibility to engage with business and using business metrics.

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24) Type: E
IT leaders are continually challenged to prove to the business's leaders that the IT budget delivers value.
Describe three principles that an IT leader should use to convince the business leaders.

NOTES:
The essay should discuss the ideas below from the chapter.

A - The chapter describes the two methods to tell the IT value story below.
a - Use a convincing business narrative: Because value is in the eye of the beholder, IT leaders
must first understand the value the business is trying to create. Address why the audience
should care, what the benefit is to them, how they will be expected to engage in this work,
and what is the desired outcome.
b - Incorporate metrics appropriately: Metrics help support a value story. Good metrics have
a clear link to a business outcome and are understandable by a non-IT audience. Metrics
should be leading indicators of change and show status changes.
B - The chapter describes the five best practices to enhance technology below.
a - Articulate business strategy: When there is a clear business strategy, it is considerably
easier to identify which IT initiatives fit with strategic objectives and which metrics are
appropriate to measure them; it focuses everyone on the kind of value the organization
wants to create.
b - Ensure business engagement at all levels: When business is fully engaged, IT projects
create significant value. Engaging the business means that IT must have a deep
understanding of its work and speak in terms of business value and benefits.
c - Use business metrics: The story of what the IT organization is delivering is told so that the
business will understand. The strategy should be broken down into specific business
outcomes.
d - Manage for value: Traditionally, IT projects have been justified with a business case,
which is never looked at again, and 'success' is measured by delivering on time and
budget; this is changing, and several practices are emerging to ensure value, e.g., agile
development, breaking-up large projects into chunks of value, value realization phase.
e - Little things make a difference: Since everyone is dependent on productivity tools, simple
problems can cause massive irritations.

ANSWERS:
1. B
2. A
3. D

4. B

5. B
6. A

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7. A
8. B
9. E
10. C

11. B, D
13. A, B, D, E

14. F

15. B, C, E

16. C, E
17. D

18. A, C, D
20. B, C, F, G

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