Chapter 8

Question 1

Which three types of M&A strategies are there?

Answer 1

Absorption
Symbiosis
Preservation

Question 2

What is the M&A strategy absorption?

Answer 2

No or little organizational remnants fo the acquired firm.

Question 3

What is the M&A strategy symbiosis?

Answer 3

The strengths of each company are combined.

Question 4

What is the M&A strategy preservation?

Answer 4

The acquired company remains fully intact within the merged entity.

Question 5

Which four IT integration strategy are there?

Answer 5

Transformation,
Consolidation
Combination
Co-existence

Question 6

What is the IT integration strategy transformation?

Answer 6

abolishing all IT of both and replacing them with new IT.

Question 7

What is the IT integration strategy consolidation?

Answer 7

Closing all IT in one partner and using the IT of the oter.

Question 8

What is the IT integration strategy combination?

Answer 8

Combining the best of both.

Question 9

What is the IT integration strategy co-existence?

Answer 9

Leaving both intact with synchronization of redundant parts.

Question 10

What is IT Governance?

Answer 10

How organizations control IT (investments) decision making.

Question 11

What is the goal of IT Governance?

Answer 11

IT-business alignment.

Question 12

What does IT governance do?

Answer 12

Specifying responsibillities
Allocating decision rights
Establishing accountability

Question 13

Which three types makes IT investment decisions?

Answer 13

Centralization
Decentralization
Federation

Question 14

What is federation?

Answer 14

Some decisions are made at corpation level some at local level.

Question 15

What is decentralization?

Answer 15

Business units control IS priorities.

SBU/LOB managers make decisions.

Question 16

What is centralization?

Answer 16

Corporation controls IS priorities.

Mostly corporation managers or central IT make deceisions.

Question 17

Why use centarlized?

Answer 17

Economies of scale,

Control of IT standards.

Question 18

Why use decentralized?

Answer 18

Responsive to business needs.

Question 19

Why don’t use centralized?

Answer 19

Unresponsive,

No business accounability for cost.

Question 20

Why don’t use decentralized?

Answer 20

Exessive overall cost

Variable IT standards.

Question 21

Which six arechetypes are there?

Answer 21

Business monarchy,
IT monarchy,
Federal system,
IT duopoly,
Feudal system,
Anarachy.

Question 22

What is business monarchy?

Answer 22

Senior executives sometimes including the CIO.

Question 23

What is IT monarchy?

Answer 23

Individual IT executives.

Question 24

What is a Federal system?

Answer 24

All operating groups collaborate with IT department.

Question 25

What is IT duopoly?

Answer 25

Two party decision making approach combing IT and business.

Question 26

What is Feudal system?

Answer 26

BU or process leaders make seperate decisions on the basis of the unit or process needs.

Question 27

What is an anarchy?

Answer 27

Each individual or small group pursues her own IT agenda.

Question 28

What are IT principles?

Answer 28

comprise high-level decisoins about strategic role of IT.

Question 29

What is IT architecture?

Answer 29

Including technical choices to guide organization to good business needs.

Question 30

What is IT infrastructure?

Answer 30

Consists of shared IT services that provide the foundation for the enerprise IT capability.

Question 31

What is business application needs?

Answer 31

Business requirements.

Question 32

What is prioritization and investment decisions?

Answer 32

How much and where to invest in IT.

Question 33

Name 5 major IT decisions to control?

Answer 33

IT Principles
IT Architecture
IT Infrastructure Strategies
Business Application Needs
IT Investment and Prioritization