Chapter 8 Flashcards
Which three types of M&A strategies are there?
Absorption
Symbiosis
Preservation
What is the M&A strategy absorption?
No or little organizational remnants fo the acquired firm.
What is the M&A strategy symbiosis?
The strengths of each company are combined.
What is the M&A strategy preservation?
The acquired company remains fully intact within the merged entity.
Which four IT integration strategy are there?
Transformation,
Consolidation
Combination
Co-existence
What is the IT integration strategy transformation?
abolishing all IT of both and replacing them with new IT.
What is the IT integration strategy consolidation?
Closing all IT in one partner and using the IT of the oter.
What is the IT integration strategy combination?
Combining the best of both.
What is the IT integration strategy co-existence?
Leaving both intact with synchronization of redundant parts.
What is IT Governance?
How organizations control IT (investments) decision making.
What is the goal of IT Governance?
IT-business alignment.
What does IT governance do?
Specifying responsibillities
Allocating decision rights
Establishing accountability
Which three types makes IT investment decisions?
Centralization
Decentralization
Federation
What is federation?
Some decisions are made at corpation level some at local level.
What is decentralization?
Business units control IS priorities.
SBU/LOB managers make decisions.
What is centralization?
Corporation controls IS priorities.
Mostly corporation managers or central IT make deceisions.
Why use centarlized?
Economies of scale,
Control of IT standards.
Why use decentralized?
Responsive to business needs.
Why don’t use centralized?
Unresponsive,
No business accounability for cost.
Why don’t use decentralized?
Exessive overall cost
Variable IT standards.
Which six arechetypes are there?
Business monarchy, IT monarchy, Federal system, IT duopoly, Feudal system, Anarachy.
What is business monarchy?
Senior executives sometimes including the CIO.
What is IT monarchy?
Individual IT executives.
What is a Federal system?
All operating groups collaborate with IT department.
What is IT duopoly?
Two party decision making approach combing IT and business.
What is Feudal system?
BU or process leaders make seperate decisions on the basis of the unit or process needs.
What is an anarchy?
Each individual or small group pursues her own IT agenda.
What are IT principles?
comprise high-level decisoins about strategic role of IT.
What is IT architecture?
Including technical choices to guide organization to good business needs.
What is IT infrastructure?
Consists of shared IT services that provide the foundation for the enerprise IT capability.
What is business application needs?
Business requirements.
What is prioritization and investment decisions?
How much and where to invest in IT.
Name 5 major IT decisions to control?
IT Principles IT Architecture IT Infrastructure Strategies Business Application Needs IT Investment and Prioritization
