Exam 7: Cost Recovery of Information Systems

Building a business case for an IT investment:

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

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

Mary is recommending IT investments in the neighborhood of $250 million for her company. However,the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?

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?

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 model is helpful in differentiating the capabilities of IT and the demands of the business for IT relative to the value IT has in the organization's strategy.

Match the three levels of Business-IT maturity to the business organization's approach to IT.Remember that Level 3 is more mature than Level 1.

The process called "true up" is used to balance true expenses against payments made for this particular funding method.

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

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?

Which dimension of the balanced scorecard answers the question "How do we look to shareholders?"

WalMart,the world's largest retailer,uses RFID tags to track movement of goods across its intense supply chain.One identifiable benefit is that pallets of goods no longer need to be manually logged by a worker when received.Instead,an information system automatically logs the goods as they arrive.This benefit is identified as which type of business change:

Activity based costing _____________

The responsibility of the IT organization is to:

All of the following are methods used to value an IT investment EXCEPT:

Peter Weill's produced a study that identified the 4 main categories that make up a company's IT portfolio: the IT infrastructure,transactional systems,informational systems,and strategic systems.Weill's research shows that most companies spend a majority of their IT portfolio on the 1.______ and the least amount of money is spent on the 2.__________.A company that is seeking to be highly agile should spend more money on the 3.__________ to provide a nimble platform and less money on the 4._________ which tends to lock in current business processes.

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

Match the title with its responsibility.

Match the component of the business plan with its objective.