Exam 7: Cost Recovery of Information Systems

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Avon uses this to monitor the status of its IT projects,knowing that a red-coded item indicates a serious problem.

What does TCO stand for?

Valuing an IT investment is difficult because:

A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks.Rarely can a CIO focus on just one task in any given day.

Match the dashboard with its appropriate description.

Financial measures are the sole means for making management decisions.

Labor costs associated with an IT infrastructure far outweigh the actual capital investment cost.

Why is TCO so difficult to define? What are some of the challenges of determining TCO?

IT leaders must be part of the business strategy discussion.

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 1/3 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?

List some soft costs one would anticipate when implementing an IT solution.

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server,determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying?

Which of the following should a manager expect from the IS organization?

A CIO must have a strong understanding of technology and a limited understanding of the business.

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.

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the time value of money?

Match the three levels of Business-IT maturity to the term that best describes the level of maturity.Remember that Level 3 is more mature than Level 1.

This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.

Often the customer of an IT organization is not an external customer but rather an internal customer.