Chapter 5

Question 1

How can you measure IT value?

Answer 1

Find capabilities that are VRAINN,
Compare competitors,
Measure how capability would be there without IT.

Question 2

What is a qualifier?

Answer 2

Investements that keep you in business.

Buy you ap lace at the starting line.

Question 3

What is a compete?

Answer 3

Investements that give you a potential edge over other companies.

Question 4

Which two factors are in MCFarlan’s strategic Grid?

Answer 4

Strategic dependence (how long can the business continue without the system),
Strategic impact (how important is the system for value creation and competitive advantage).

Question 5

What is IT Value?

Answer 5

IT Value refers to the organizational performance impacts of IT.

Question 6

Which two formulations does IT value have?

Answer 6

Efficiency,

Effectiveness.

Question 7

What is efficieny?

Answer 7

Doing things right.

Question 8

What is effectiveness?

Answer 8

Doing the right things.

Question 9

Name three pitfalls of measuring IT Value?

Answer 9

Measure only based on Competetive Advantage
Calculate ROI to early
Attributing benefit to BU instead of IT

Question 10

How is IT Value created?

Answer 10

Combining IT Resources with Organizational Resources in Business Processes.

Question 11

What is operational excellence?

Answer 11

Offering customers low-cost products.

Question 12

What is customer intimacy?

Answer 12

Focus on the needs of the customer.

Question 13

What is product leadership?

Answer 13

Firms who create value through groundbreaking innovation.