IT Governance and Business Value

Play an AI-generated podcast conversation about this lesson

What is the main concern of shareholders regarding IT investments in an organization?

The hiring of unnecessary personnel

The large capital investments required

The lack of measurable value to the business (correct)

The technical vocabulary used in IT

Why is IT governance critical in an organization?

To ensure IT is a strategic partner

To mitigate the risks associated with IT investments (correct)

To prioritize IT personnel over other departments

To manage the HR department's budget

What is the difference between IT and other departments like HR and Finance?

IT requires more personnel

IT has a larger budget

IT is not a core business function

IT has a constantly changing technical vocabulary (correct)

What is the primary focus of IT governance?

Deciding how to allocate IT resources (D) Signup and view all the answers

What could happen if an IT director orders unnecessary resources?

The extra resources will become apparent soon (D) Signup and view all the answers

Why do board members struggle with IT decisions?

They lack IT technical expertise (B) Signup and view all the answers

What is one of the primary concerns of suppliers of finance in corporate governance?

Ensuring managers return some of the profits to them (D) Signup and view all the answers

What is the main difference between corporate governance and IT governance?

Corporate governance deals with general business questions, IT governance with specific technical issues (C) Signup and view all the answers

Who typically makes up a company's board of directors?

A mix of members representing shareholders, independent members, and executive directors (A) Signup and view all the answers

What is considered a good governance practice in corporate governance?

Segregation between the board and executive management (B) Signup and view all the answers

What is a difference in expectations for corporate governance between countries?

Expectations vary in emphasis and in practice between countries (D) Signup and view all the answers

What did Shleifer and Vishny (1997) define corporate governance as?

Dealing with the ways in which suppliers of finance assure themselves of getting a return on investment (B) Signup and view all the answers

What is the primary focus of operational integration in an organization?

Aligning organizational infrastructure and processes with IT infrastructure and processes (D) Signup and view all the answers

According to Henderson and Venkatraman, what is the limitation of a bivariate approach to business/IT alignment?

It ignores the importance of internal issues in the organization (B) Signup and view all the answers

What is the purpose of 'business/IT principles' in an organization?

To establish a clear link between business and IT (C) Signup and view all the answers

What is the key difference between strategic integration and operational integration?

Strategic integration focuses on external domains, while operational integration focuses on internal domains (B) Signup and view all the answers

What is the main advantage of adopting a multivariate approach to business/IT alignment?

It considers at least three out of the four defined domains (B) Signup and view all the answers

What is the primary goal of business/IT alignment in an organization?

To create a competitive advantage (B) Signup and view all the answers

What is the main difference between governance and management according to Sohal and Fitzpatrick?

Governance has a wider time dimension and looks beyond the organization (A) Signup and view all the answers

What is the primary goal of Enterprise Governance of IT?

To ensure business and IT alignment and create business value from IT-enabled business investments (B) Signup and view all the answers

What is the purpose of the six principles outlined in ISO/IEC 38500:2015?

To guide IT-related decision-making and express preferred behavior (D) Signup and view all the answers

What is the primary responsibility of individuals and groups within an organization according to Principle 1 of ISO/IEC 38500:2015?

To understand and accept their responsibilities in respect of both supply of, and demand for IT (B) Signup and view all the answers

What is the relationship between authority and responsibility in ISO/IEC 38500:2015?

Individuals with responsibility have the authority to perform those actions (D) Signup and view all the answers

What is the year of the latest release of the ISO/IEC standard for Corporate Governance of IT?

2015 (A) Signup and view all the answers

What type of IT capabilities focus on the delivery of IT solutions?

Technical IT capabilities (A) Signup and view all the answers

What is essential for achieving higher levels of IT maturity?

Both Process and Technology Solutions (B) Signup and view all the answers

What determines the success of IT governance?

Leadership, People skills and managing cultural transformation (B) Signup and view all the answers

What is Enterprise Governance of IT concerned with?

The definition and implementation of processes, structures and relational mechanisms (A) Signup and view all the answers

What type of IT capabilities enable the business to create value out of IT investments?

IT-related business capabilities (C) Signup and view all the answers

What is a key aspect of IT governance?

Business process redesign (A) Signup and view all the answers