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Questions chapter 1

(Some of the questions are based on teaching notes supplied by Harvard University Business Press)

1.1 As Jim Barton, would you accept the CIO position ?
Why ? Yes, because i know how the IT should work. And it don´t care if i manage the IT or the loan operations department. Yes, because he realized that the tasks of a CIO are about management. He also criticized the way how the IT was working and saw a possibility of improving it. Why not ? No, as Jim Barton I would not accept this job because even as a it-manager it is necessary to not have a technical background. Without even a little bit of understanding the technical background a it-manager can not understand the implications of his decisions. There is also an difference between the theoretical part oft work and the practical implementation.

1.2 fehlt 1.3 What kind of company is IVK ?
IVK is a midsize growth company in the financial sector with a focus on loan management operations for customers.

1.4 How intensively does IVK use information technology ?
Because IVK offers more financial services they need more IT to handle They use IT but the it´s not the main part of their businesdeclieneds has a supporting function, but it doesn´t help to differentiate.

1.5 Consider the exhibits at the end of chapter 1; what do they tell us about the company’s business situation ?
What about competitors ? Implications ? The situation coudn´t be very good, because they released many employees in the last time. There are 2 major competitors, Competitor A with 36% market share, B with 15% market share and 33 % others. IVK has got 16% market share.

What is the reason for replacing the CEO ?

The rate of growth of the firm decreased and stock has fallen as investors became less optimistic about IVK. It became necessary to change the direction in which IVK moved. Investors lost a lot of money. How developed profits in the last year ? Implications ? Turnover increased. Profit stagnated.

1.6 Who is Jim Barton ? Who is Carl Williams ?
Jim Barton is the new CIO of IVK. A talented and ambitious general manager, Barton knows nothing about IT. Carl Williams is bold turnaround CEO is high on ambition and short on patience. He is reconstructing IVK.

1.7 After searching on the words „IT management“, Barton writes on his whiteboard „IT management is about management“.
What do you think Barton is trying to get at with this statement ? He tries to reduce IT management to simple management to get in touch with it. Do you agree with the statement ? Yes we agree because in IT management you should look at the hole thing and not only small parts. Disagree ? Yes, he should have “IT management is about it and management” written on his board. As a CIO he has to represent the it department (e.g. in the board of directors). Without a little technical background this is going to be difficult.

1.8 In his Google search, Barton comes across the statement: „More than any other group within a company, IT is positioned to understand the business endto-end, across departmental boundaries“
Do you agree ? Yes, we agree. Because the IT Department is involved in every department and can see the whole workflow and see the supply chain management. Disagree ?

1.9 What task of the CIO is depicted in the diagrams found by Jim Barton ?
Bring the business smarts with the tech smarts together to create value. Build a bridge between top business management and top IT management.

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1.10 How differ

IT leaders from general managers ?

maybe?sure.14 What changed after the dot..it is! Questions chapter 2 .17 What would be your best single piece of advice to Barton if he decides to take the job ? If Jim Barton wants to do a good job as CIO he has to follow our advise and read some books to get a little overview of the technical background. 1.16 What ideas had Davies about the role of IT ? Why has he never have been invited to customer meetings ? He thought he could help improve relations with customers and their needs if he were invited to come to meetings.The general manager cares about the strategic business and IT leaders follow the technical strategies and operations. 1. The idea of Davies and his wired neckties sitting down with customers..11 How does IT knowledge differ from management knowledge ? The IT is very technical and management knowledge is based on economy stuff. But his dress code wouldn’t fit well to go along.12 Do you find the framework that Barton seems to like useful ? Yes. In the late 90`s. Or is it? Is it not? No.com bubble ? Before the bubble bursted the CIO had been part of the executive table. After the bubble exploded they have been reduced in rank and had to report to the CFO again. IT has been placed under finance again. He rather made reports directly to CEO and even got a seat among chairmen. IT Management is about management.13 How changed the IT role in the late 90’s ? For a long time.com bubble made tech start-up companies glamorous. the dot. 1. 1.15 Which changes took place by 2006 ? Many CIOs had lost seats at executive tables. the IT had just a supportive role. 1. IT Management is not about management. 1. IT became decisive. The CIO didn’t have to report to the CFO anymore. 1.

Meggie’s slides shed some light on Davies assertion. Perhaps he did not recognize the importance of IT. like Davies. or good advice ? The advice is good. but there may some not be listed. 2.3 What do you think that Bill Davies predicts that Jim Barton will not last the year without getting fired as CIO ? Not everyone without a prior knowledge on a chapter gets fired. but he missed the business skills and competencies. after awhile in the job. in his opinion. This topics should be delegated to people with more expertise in this area. 2.2 There is a group of CIO‘s with technology background similar to Bill Davies. 2. The technical realisation should be up to the specialists. because Barton needs to know.2. That’s in about 12% the reason for failure of CIOs. B) Why do you think many of them get fired ? The manager is meant to delegate. who. Do Maggie’s slides (exhibit at end of IVK-2) shed any light on Davies’ assertion ? There are no relevant competencies Jim Barton misses. He maybe also had a poor collaboration with lines of business. that it requires certain knowledge of IT to manage IT and Jim being a pure manager will have big problems coping with that. Why was Davies fired ? (use Maggie’s slides) Perhaps because he had only experience in IT. because key factors for the future CIO success are managing skills and with that Jim is very gifted. depends on technical knowledge on IT. But most of them decide technical issues without considering the objectives and goals of the company.4 Davies predicts that Barton will be gone in a year. He should know his limitations in knowledge. He’s predicting. Why does he say this ? Because Jim doesn’t have any knowledge in IT and in his view the company is a mess. Bill Davies describes the company as a madhouse and nobody could succeed running IT in that place. These CIOs only see the technical side and not the management part. A) Why do you think that these CIO‘s become referred to as „benevolent dictators“ ? Because he wants to do everything for himself and doesn’t want the help from other people. that the advice (“You’ve got to know what you don’t know”) that the kid at Vinnie‘s bar offers to Barton is naive. begin to be referred to in the company as „benevolent dictators“ ? Many of them. not to solve technical issues.1 Do you think. are fired. The role as a CIO. in which topics he lacks knowledge. .

5 What kinds of questions should Barton be asking of CIOs. to ask them the questions Questions chapter 3 .6 How should he prioritize and organize these meetings ? He should first meet other CIOs to get a general overview about the business as CIO. There should be two phases: ● surface-level. After that the analysts.2. customers. He should also meet soon with the customer to get their requirements. and other IT movers and shakers ? ● ● ● ● ● ● What they are thinking about their job. investors. Where should be his priorities? Where should he focus his work? How is a “normal” day in the day of a CIO Which tasks should Barton do by himself? Which can he delegate to others? How much do other companies spend on IT? 2. to get to know that people (go out for a dinner and so on) ● discussion. analysts. At last he should meet the investors.level.

3. (That’s where the sidekicks pop in) 3.B. IT is a department that has to have knowledge about each of the operational sequences in every department. -The operation managers are only linking the management to the technical aspects. cause they don’t have the time to learn and use every new technology in IT in-depth. The operation managers can’t stay on top of the art. 3.3 Do you think that having the „sidekicks“ is necessary for having the kind of meeting that Barton wants? Jim Barton wants a strategic meeting within the IT department.4 What did Barton learn from this trip to the bookstore and subsequent night of studying? He learned that there must be another way for a CIO to get his department running than knowing about technical details.2 Why is Barton having so much trouble getting his direct reports(people who directly report to J.I agree. but by supporting other departments. That he can never learn everything about the technology. I think so.) to commit to an offsite meeting without their technical experts? Because the 5 heads of the IT department who directly report him. meaning huge numbers/ profits. -Yes. He only needs a general overview. it only does know the given possibilities. In such a meeting there are no sidekicks necessary.1 What is the “right” amount a company should invest in IT ? . don´t understand that Jim only wants to talk with them about topics in the management or policy level. Sidekick know the scope and possible issues in IT. For that it is absolutely not necessary to include the other experts. That’s also one of the reasons. Management doesn’t know about IT in detail. There’s just too much for him to learn in reasonable time. 3. IT doesn’t generate revenue by their own operations. Questions chapter 4 4. Maybe the 5 direct reports don’t know anything about the topics on which the sidekicks work. The operation manager translates these information into manager understandable language. where IT supports their operations.1 Do you agree with Ruben that IT is a „unique“ or different business function? Yes . In this particular situation and company the sidekicks are required because they have more information about their projects and departments than the leaders. his direct reports want to have their sidekicks in on meetings.

4. But IVK wants to have real time loan operations in the future.He only explains how the IT budget is spent in the company.There is no right answer for that. 4. Every company has a different usage and size of their IT systems. So they had no way so measure the actual amount of the IT costs in each business unit. The company should invest as much as possible to create new way of providing services but also have the services running in a stable way. that it´s not his purpose to play tricks with him. 4.(p. the systems are based on batch processing rather than real-time. 4. 4.3 Is Geisler giving Barton the run around in responding to Barton’s request concerning IT expenditures ? If you think so. But it´s not mandatory nor possible to always specify the costs to a certain department. what do you think of this arrangement? Should Barton try to “pull back” some of the budget that is allocated to business units.2 How can the “right” amount be determined ? There is no right amount. 68) 4.6 Are IVKs systems real time ? No. Because of that fact every company has to find the right amount on their own.7 How are workflows supported within IVK ? Is this a favourable approach ? .5 How should Jim Barton respond to the CEO’s question: “Are we spending the ‘right’ amount on IT?” By now. to create his own discretionary budget? The intention of a chargeback system is that all costs are splited in each department so it´s possible to divide the costs on the department which caused them.4 What is the purpose of a “chargeback” system for returning IT costs to business units? Why implement such a system? As we learn in IVK-4. what would you do ? We think. at IVK. Ruben said investing 40% in new services and 60% for maintaining the infrastructure are recommended values. the IT department had no own cost unit and they did not sell their products to the different business units. The IT department just got money through a formula developed by Geisler. business units control all of the IT budget. it depends how much maintaine is in usage right now.

And nobody trusts sth.13 What happens if the formula for mapping IT costs is too complex ? Nobody will understand the formula and it is non-cummunicable. because I think the amount of phones doesn’t really say much about the amount spent on communication. moving more and more of the spending on maintenance while retaining the same amount spent on application development. 4. High level business services are carved out of primitive business processes/ basic services. Thus the effort of maintaining the IT services increased rapidly. such as sales revenue by products and/or departments.15 What is a data warehouse ? A data warehouse is a database used for reporting. 4.10 How IT spending developed over time ? see 4. 4. Now it’s 8 percent. it was around 5-6 percent of spending on IT.8 How changed the spending on IT ? What is the reason ? see. 4.14 What is business intelligence ? Business intelligence refers to computer-based techniques used in identifying.11 Which percentage of sales has been spent in the past and how much is spent today ? Historically. 4. . All new services are run on modified versions of existing systems or are even implemented from scratch. The data may pass through an operational data store for additional operations before it is used in the DW for reporting.12 What do you think about the approach to chargeback based on the number of telephones ? It’s a rather primitive approach. Its important these basic services are implemented in a way to be available to any application. The data is uploaded from the operational systems for reporting. 4.16 Are IT applications an asset or an expense ? It is an asset. 4. extracting and analyzing business data.4.9 Please give a short description on Service-Oriented Architecture ! SOA describes how to build systems composed of services.8 4. that he can’t understand.10 Several new services arose complying with the needs of the customers. see page 69 4. or by associated costs and incomes.

18 What is an appropriate percentage of the IT budget to spend on maintenance ? As low as possible.(page 77/78) 5. Commodity and competes seems to be important to stay ahead the competitors. like IVK.com/presentation/rainer. how much should a company spend on IT At least so much that it could keep pace with its competitors. Strategic. Factory. Carr claims that IT is not worth to spend so much money and that it can’t held responsible for the head start.17 What is the main purpose of allocating IT costs to user departments ? The main purpose is to give the user departments an overview of the amount spend on IT and to create a separate budget for IT. Support. Questions chapter 5 http://prezi.5 % of revenues on IT. In addition it should invest enough to gain a competitive edge.19 As percentage of sales.4. but that do not . 4. Ruben told him about the Qualifieres and Competes. Turnaround Strategic dependence Factory Support Strategic Turnaround Strategic impact 5.schmidt@htw-aalen.3 How does IT create or enable the creation of value within a company? How should we value IT capabilities required to keep us in business.1 What are the key components of IT value? Qualifiers and Competes.de/rhobbqr/ 5. 4.2 What insights about IT value did you gain from Maggie’s and Ruben’s thoughts on the subject? Meggie told him about Zara that they spend 0.

7 What happens if all firms have similarly invested ? This service will become a quailifier and the value that IT provides might become fleeting. E. If IT achieves an competitive advantage the other firms are going to copy it. make things and processes more efficient than they were previously. 5. 5.12 What are qualifier and compete investments ? A qualifier investment keeps you in business. but nobody realized that. For these investments.it is important to keep your company runnig.A compete investment gives you a potential edge over other companies in your industry.5 What problem appears concerning the allocation of credits for savings from IT-enabled change ? The business units might claim these savings on their own.differentiate us from competitors (so-called ‘qualifiers’)? IT does not create value on it’s own.11 What complicates the calculation of ROI from IT-investments ? Often. 5. when the investments outnumber the likely gains of this advantage. 5.8 How IT investments become irrelevant for achieving competitive advantage ? For example. Savings often were impossible without IT.4 What has gone wrong with the justification of IT projects.g.74) insourcing. there is no real ROI. it speeds things up. you invest just to stay in business.6 How Zara used IT to achieve competitive advantage ? To see the demand on an hot item in real-time at the point of sale. 5. Internal: efficiency. 5.” (p.9 Which IT investments provide the most value ? “The most value would come from investments in IT that give you an edge that your competitors can’t copy.10 What is the core argument of Carr ? Carrs core arguments is to minimize risk and costs of commodity IT areas because a firm can’t gain profit out of these investments. 5. This enabled Zara to fullfill the orders quicker than the competitors. . quality. No one ever checked after the fact to see that benefits had been realized after an IT project was realized. time External: customer interaction 5. IT assists other departments on creating values. customizing 5.

type 3 strategic focus 5.23 How created the endeavour to server clients individually a maintenance .17 What did the consultants recommend concerning Davies ? He is just a type 2 IT leader. 5.19 What is Moore’s Law ? “The computing power of chips doubles every two years. that means Competes versus Qualifiers. 5. 5.14 Please explain McFarlain’s strategic grid ! Where competitive advantage from IT shows up ? This grid helps to specify how important IT is for your company..type 2 enterprise-orientated . 40 % the IVK spend for applications and 60 % for the infrastructure.5.18 Please describe the three eras of IT growth ! . He how understand how to achieve your strategic goals with the help of it.15 Please explain Barton’s newest drawings ! He draw a house with the allocation of the cost. (da war noch was?) Internal systems do not provide a benefit.Micro era .type 1 control-orientated .Network era 5.20 What is the legacy systems problem ? Many companies incorporated early technologies in an inflexible way and are now experiencing 5. he added also a C vs Q. 5.22 Which leadership capabilities are identified in the report ? .21 Which systems of IVK provide strategic advantage and which not ? System which are near the client mostly provide a benefit to your company.” 5.Data processing era . 5.strategic focus and do not deal with daily problems.16 Which levels of maturity of IT leadership are characterized in the report ? .13 What happens to compete investments over time ? They will become qualifiers because other companies of the industry are going to copy your compete investments. 5.

6.April -Burton read a book about Project Management -> how to plan projects not how to manage . For example that they work a long time with the system which has Huerta described and that systems doesn´t work well. because with that way you can´t really say how much one project costs.talk about death march projects 6.talk about their projects in process (with indicators) . don´t plan enough -> more planning and more discipline .Huerta: lack discipline in he project management process. and so you can´t plan effectively. closer understanding what they need -> matter of executing plan 12.Calder: Huerta´s never works.1 Which side would you take in the debate between Huerta and Calder ? Why ? I would take the side from Calder. Questions chapter 6 11.Barton meets the boy again in Vinnies . spend more desciplined time in the requirement gathering phase.25 What light does the consultant’s report shed on the matter of Davies’ firing and the subsequent choice of Barton as CIO ? Davies was.talk about why many projects are over budget . April . .April -Meeting with the people from Loan Operation Systems and Customer Support Systems . because his/her arguments sounds more realistic.new on his witheboard: Managing Problems you can/can´t anticipate 13. following the consultant’s report.2 What do you think of the approach that Davies seems to have used (Judging from documents found by Barton) to managing uncertainty in projects ? I think it´s a bad management.nightmare ? followed a rather strange customer report 5. Barton is maybe a type 3. even not a type 2-manager.24 How might we get a quantitative handle on the level of value provided by IT ? und? 5.

3 How would you implement the kid‘s advice to budget in a way that allows learning on a project ? .10 What is agile project management ? see 6. 6. Because the decision depends on the sort of the project.6 What approach would you recommend to Jim Barton ? A mix between the traditional and the agile management.Software is a very complex construct. that means that when they have time left after they finished their project they do something other in the time which has left but they don´t mention that they are ready. Barton don´t know for what exactly the colours stand for.11 What is Parkinson’s Law and how does it show up in projects. e. Believe it or not. E.8 According to Calder and Huerta. so that you can go a step back and do it better The scope of this question is about optimization. He thinks that the most projects are over 6. Work expands so as to fill the time available for its completion. then implementation with the facts from the plan.financial resources. the „agile“ approach to IT applications project management Traditional: Planning at the beginning. At iterative approach it is possible to optimize your local steps through the project. a big or a small project 6. 6.g. at the waterfall model at the beginning you must overview the whole project. is it possible to know all requirements and eventualities before implementation ? This is a point of discussion. green.5 Compare and contrast the „traditional“ vs.g. .7 What became apparent to Barton concerning the status of the projects ? The projects have different colours.15 6. you can change and customize it.4 What is the nature of IT application development in respect to effective project management ? . Changes are not intended.9 What is a contingency plan ? It´s a plan for problems you can anticipate 6. There are also many different variables which make software project management a difficult type of management.6. red and yellow. Agile: Implementation of more prototyps 6. 6.

the frontline guys to be willing to bring bad news to the boss ( boss can´t detect the bad news alone) .best project managers policies are those that promote open flow of information up and down the project hierarchy 6.use iterative. 6.17 Does it really make sense to jump directly into project coding and early prototypes in order to discover “messes” (unanticipated issues) early . 6. Not every detail exactly. collaborative teams . critical path scheduling and myriad other established project management practices. feature driven delivery .. .build competent.cultivate committed stakeholders . there could ever be an unexpected issue .collaboration management style .12 Why are there nearly no projects before schedule ? Completing a project before schedule means that you failed at optimizing your project .14 What is a core problem of project management concerning communication of bad news ? .6.12 What is a death march project ? It is a project with a bad plan that managers are determined to stick to. should understand the basic of setting up project organization.employ a leadership. but before they should plan a bit.champion technical excellent .13 What are the characteristics of the best project management policies ? . 6.15 Please describe Agile Project Management Complements traditional project management in many ways.enable team decision making .16 What are the nine principles of agile project management ? Please explain them.encourage adaptability . so the bad news just sweep under the rug 6.the managers don´t want to hear about unexpected problems..even if they have planned a .deliver some useful . “to fail fast to succeed sooner” Can this advice be implemented in a practical way ? Maybe they should sometimes jump directly into the project.that is.accelerate throughput 6. budgeting.

claiming value.4 What did Barton and his team instead ? .5 Which measure is used to classify the IT-enabled capabilities ? .2 What particular problem appeared when the IT department tried to identify its value contribution ? . 6.IT sold nothing to customers directly .fertig.18 How can you manage.long time. The teams work in short iterations.19 What do you think of the approach that Davies seems to have used (as revealed in the documents discovered by Barton) to manage uncertainty in IT projects ? Davis adds extra resrouces and extra time. which is done by other units 7. 6. It just gets your projects more expensive. therefore the monitor and adapt phases names what happens when variations are found.metric of sustainability 7.IVK had to pay a lot for this project .they have to fight for the money for new projects .the departments said the benefits is the result of their own activities 7.introduce the compete and qualify framework (benchmarking) 7.they work a long time but they don´t show any good results .6 What’s wrong with the Infrastructure Replacement Project ? . what you cannot anticipate and do not expect ? They expect from the beginning that something can get wrong.IT was not customer facing .1 Have other departments been successful in showing up the value contributed by them ? 7. Questions chapter 7 7. This is one solution but it does not tackle your problems.3 What are the politicial implications of this problem ? . or prepare to manage.

project team business people didn’t trust the IT people.9 What is the status of the Infrastructure Replacement Project ? .because they haven´t shown any progress of direct benefit .No.14 What bias is effective when NetiFects is buying packaged software ? . 114) 7.15 Why has the IR initiative faltered ? .13 What mechanism became effective as consequence of the lack of trust ? .too many connections inbetween the departments . 7. because they have spend already a lot of money to this project.I think they should discuss the problem.8 Is IVK tackling these problems in the right way ? .they buy the software package on their favored technologies and not the ones IVK is most comfortable with 7.NetiFects (p.10 What problem arose out of the composition of the leadership team of the IR project when evaluating system integrators ? .7. because NetiFects works a lot with Linux and IVK works with Windows 7.16 What makes such projects so difficult? . so the vendor could tell what wanted to 7.business people made wrong decisions 7.7 What are the root causes of the problems that lead to the Infrastructure Replacement (IR) ? NetiFects is not familiar with the systems IVK uses. they don´t fit.they try to change too much in one project 7.you can´t really control the other company .12 Whom did the project team trust more: NetiFects or the IVK IT department ? .the project influences all departments .stood out as the single largest item in the IT budget . 7.11 Do the technological competencies of NetiFects fit wit the needs of IVK ? .the project is going sideways 7.

Davies.20 Are the assumptions in the report about technical education of business staff during the project realistic ? .Yes. 8. It would require an infinite amount of expenditure to close all security holes.3 Why do you think the previous CIO.18 Can projects like the IR project be avoided.2 Is it possible to close all security holes ? No it is not possible to close all security holes.7. but you have to choose a good matching vendor. ? . You can see that when Srinivasa in the meeting agreed when Burton mentioned that the project is going sideways 7. . whose neck is in the noose if a project goes bad ? He created the slush fund slack for budgeting IT projects.1 What strange things are happening in the IVK network ? There is some unusual activity on the IDS logs. created slush fund slack for budgeting IT projects ? Under Davies. which didn’t get budgets from the standard decision process. If a project goes bad. because they don’t provide direct customer benefits.business staff would never understand complicated IT issues and the other way around Questions chapter 8 8. 7. It could be an intrusion.No.Yes.. 8.. because NetiFacts isn´t really telling the truth in the meeting with Barton. 8.19 How do you manage problems you cannot anticipate ? - 7.. I think so.4 For which kind of projects it is difficult to get budget for ? For the deeply technical kind of projects is it difficult to get budget for. they are not realistic . The technologies should fit.17 Do you agree with Barton’s decision to terminate the agreement with NetiFects ? .

which is used to decide how to allocate the IT budget.11 Should Barton try to take control of the entire IT budget ? Should he ask for a percentage of the overall budget to be placed under his control ? Or should he try to fix the committee structure put in place by Davies ? 8. because their explanations were much too technical. it could harm the hole company. he wants to review the process.7 What consequences draws Barton out of the killing of the security project ? First. 8. 8.10 What problems are caused by quickly changing project priorities ? People work one week on project A and then get switched to project G.8 What fundamental problem of responsibility exists for IT projects ? 8. without involving slush funds. 8. Second.14 What characteristics should have priority-setting processes ? .8. He made a joke on the project proposal from the IT guys.13 Do you think Barton‘s approach of providing the best information at the time is a better approach than Davies‘ approach ? Under Barton.12 How do you interpret Maggie‘s „one neck in the noose“ analogy ? How much credence would you give to her thoughts about this issue ? 8. so they can’t really get deeply into a project and can’t make big progresses. whose neck will be in the noose if a projects goes bad ? 8. But if there is later a problem. 8.6 Who killed the network security project ? How ? Barton himself killed the project the last time. he wants to find a way to fund the security project. 8.5 Why is it so difficult to decide about security projects ? Because security projects don’t provide any direct benefits.9 What’s the problem with the present IT-budget ? The IT department has no own budget.

24 Given his disagreement with Maggie and his peers.15 How works the Volkswagen of America system for managing priorities ? 3 categories: -mandatory -ROI -option-creating investment 8.17 What are mandatory projects ? 8.8.23 Who should control the IT budget ? 8.16 Which categories are used for projects in this approach ? 8. do you think Barotn is wise to ask for IT budget control ? What consequences (positive or negative) do you foresee ? .22 Is assigning control of IT budget to user departments an effective mechanism to establish IT priorities ? 8.18 Who pays for mandatory projects ? 8.19 What is application portfolio management ? 8.21 What processes need to be in place to effectively establish IT project priorities ? 8.20 What alternatives to organize IT budgeting exist for Barton ? 8.

5 How is the change implemented by Barton ? Barton had begun instituting procedures. 9.4 Why has the style of management to change at IVK ? Informal management is great for small companies. helping the company. better integrated procedures between loan origination and . so that executives would also bear the responsibility for those decision.willinges to innovate Disadv: . more management systems. Needs more controls for coordination and management. but a big company like IVK needs to have more coordination. 9. 9. so he thinks. IT.Questions chapter 9 9. Without new investments the company would face unacceptable levels of risk. could be more involved in other areas.2 What management style is used at IVK up to now ? Why ? Informal management . 4: Give IT the meaning of a strategic partnership to other departments.3 What are the advantages and disadvantages of that style ? Adv: .as a consequence of rapid growth from a small firm to a large firm.agility .more risks 9. not only the IT guys.“can do” attitudes . 2: IT infrastructure needs to receive more attention and investment. 3: Involving senior management and the board in decision making about IT matters. more controls than small companies. systems and controls that would reduce risk without sacrificing agility or innovativeness.1 What themes are adressed by Barton in his presentation ? 1: The management style is too informal.

He’d also ordered the implementation of an array of new metrics. because many of the other senior managers don’t really care about IT. 9.12 What are the board of directors responsibilities in respect to IT oversight ? define basic structures.10 What is the problem with IT risks ? You can’t easily spot the problem. which you are facing. IT has some very important projects under way. 9. And probably because they thought. because IT risks emerge from small decisions slowly forming into a bulk. I think. make fundamental decisions .6 Can IT take part in the cost-cutting initiatives started by Williamson ? No it can’t. so they all get to bear the responsibility of their decisions. each of which gave managers fresh insights into IVK operations and performance. 9. 9.9 What kind of committee shall be established ? A committee of board members to focus on IT governance. this would be another technical lecture neither of them would be able to understand properly. IT has never been very popular with the board members. 9. that can’t be stopped without wasting the investment already made into them. 9.8 What kind of role change does Barton wants for IT ? He wants a more strategic partnership role for the IT department. 9.7 What change concerning governance is intended by Barton ? Barton wants the senior management and the board to get more deeply involved in decision making about IT matters.finance.11 Why do you think the IT presentation at the board meeting was scheduled as the last agenda item and given only thirty minutes ? Mostly for historical reasons.

So. as they had different stuff to do. 9. he impressed the board members. with this knowledge he should try to not let himself be controlled too much by Williams. he managed to get an overview of the IT department and even more. ? They thought it was too late for this arrangement.14 What should Barton do about “managing Carraro” ? Managing Williams ? Barton figured.9.15 How is Barton doing after almost three months as IVKs CIO ? What is your assessment of his performance ? Barton’s performance is outstanding. he made a few dramatic decisions about how to run the IT department and with the help of his skills he acquired in LoanOps. 9.13 Why do you think they seemed eager to delay forming the IT Oversight committee until the next meeting. and also because Carrera had become way too enthusiastic about it. Without getting too deep into the technical stuff. Williams is getting uncomfortable with him becoming so successfull in his new CIO job. .