Exam 9: The Business of Information Technology

The ____________costing technique looks beyond the initial capital investment of an IT solution and includes costs associated with technical support, administration, training, and system retirement.

IT leaders must be part of the business strategy discussion.

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Match the component of the business plan with its objective. Financial discussion and analysis Details the costs, revenue and benefits as well as the TCO calculations. Benefits and business impacts Presents nonfinancial outcomes such as new business, innovations, competitive response, and the impact on the organization and the supply chain. Schedule and milestones Details expected metrics along the project's time line. Risk and contingency analysis Includes sensitive analysis on the proposed investment and the ability to manage anticipated consequences.

It is determined that a mobile application needed to support the Sales, Marketing, and Finance departments will cost $60,000. The Sales department has 20 employees and all employees will need the application. Likewise, all 10 of the Marketing department employees will need the application. Only one-third of the Finance department is interested in the mobile application. The Finance department has 30 employees. The CIO has decided to fund the mobile application using either the allocation method or chargeback method. Which funding method does each department wish the CIO will choose to use and why?

Besides financial metrics, what metrics help an IT organization manage its IT investments?

An airport is in the process of implementing a new baggage claim system that tags each passenger's baggage with RFID. Readers are installed around the airport to track bags and see that the baggage is delivered to the right plane or the right carrousel. The airport is considering different funding models to see if the airlines, the airport or the passengers will be charged. Use the three funding models to explain how this new IT could be funded.

Match the activity an IT organization provides with its description. Pronoting enterprise security Maintain the integrity of the enterprise infrastructure including the infornation assets. Operating the data center Maintain and nin large mainfrane computers, rows of servers or other platforns on which conpary data and applications reside Manage data, infornation and knowledge Database adrinistration Integrating the use of social IT Provide custorner-, supplier-, and enployee-facing applications for engagement, collaboration, and innovate

A balanced scorecard is a method used by IT departments to measure overall health and success of an IT investment. Match a type of measurement an IT organization may report with the appropriate balanced scorecard category it supports. Customer Perspective The percentage of repeat client business. Intemal Perspective The percentage of projects completed on time. Intemal Perspective Uptime versus downtime of a critical infonnation system. Learning Perspective The number of employees trained on the use of collaborative techrologies. Custoner Perspective Client satisfaction surveys. Financial Perspective Percentage of projects completed on or below budget.

An IT dashboard provides:

Why would an organization use the balanced scorecard and focus its metrics on more than just financials?