Balanced Scorecard and IT

Question 1

What are the common problems with IT investments?

Answer 1

prove little or no ROI

Question 2

What is a balanced scorecard?

Answer 2

widely used tool that can help companies link their IT investments to strategic performance

Question 3

What is a Balanced Scorecard use for?

Answer 3

1) strategic planning and management system
2) Used extensively in business and industry, government, and nonprofit organization world wide
3) Aligns business activities to the vision and strategy of the organization
5) Improves internal and external communications
6) Monitors organization performance against strategic goals

Question 4

What are the four perspective of Balanced Scorecard?

Answer 4

1) Financial perspective
2) Business Process Perspective
3) Customer Perspective
4) Learning and Growth Perspective

Question 5

What does Business process perspective do for financial perspective/

Answer 5

lower costs

Question 6

What does Learning and Growth Perspective do for Business process Perspective?

Answer 6

Improve Processes

Question 7

What doe Customer perspective do for financial perspectives]?

Answer 7

Grow revenue

Question 8

What does Business process perspective do for customer perspective?

Answer 8

Enhance customer value

Question 9

What is Strategic positioning

Answer 9

helps companies to obtain a relative advantage over it competition

Question 10

What are the components of Strategic positioning?

Answer 10

1) Differentiation
a) Customer intimacy
b) Product/Technology leadership
2) Cost Leadership
a) Operational excellence

Question 11

What is learning and growth Perspective?

Answer 11

describes a firm’s objectives of improvements in tangible and intangible infrastructure.

Question 12

What are the types of Capital in Learning and growth perspectives?

Answer 12

1) Human capital
2) information capital
3) organization capital

Question 13

What are the four types of Process perspectives?

Answer 13

1) Operations Management
2) Customer Management
3) Innovation process
4) Regulatory and social processes

Question 14

What is a common customer perspective?

Answer 14

1) Value Proposition
   A)Product attributes
   B) service Attributes
   C) Brand image
2) Creates customer satisfaction, retention, and new customer acquisition

Question 15

What are the four types of Product attributes?

Answer 15

1) Price
2) Quality
3) Availability
4) Function

Question 16

What is Financial Perspective?

Answer 16

confirms the success of the firm’s investments and its ability to deliver value to customers

Question 17

What is Financial Perspective’s overall objective?

Answer 17

Shareholder value

Question 18

What is Financial Perspective’s other objectives ( other than shareholder value)?

Answer 18

1) Long term growth

2) Productivity

Question 19

What is a strategy map?

Answer 19

one page representation of the firm’s priorities that shows the cause and effect linkages among strategic priorities.

It also allows organization to assess and prioritize gaps between current and desired performance levels

Question 20

What is the nature of information technology investments?

Answer 20

Function IT ( Performs a single function)

Network IT ( allows people to communicate with one another)

Enterprise IT ( restructures interactions within the organization as well as with external partners)

Question 21

What is information capital examples?

Answer 21

1) Computing hardware
2) Infrastructure
3) Applications
4) Employees’ abilities to use the technology effectively