Course review

Question 1

What are the 5 archetyes of the IT governance arrangement matrix

Answer 1

Business Monarchy

IT monarchy

Feudal

Federal

Duopoly

Anarchy

Question 2

What are the 5 decisions in the Governance Arrangement Matrix?

Answer 2

IT principles

IT architecture

IT infrastructure strategies

Business Application needs

IT investment

Question 3

Explain IT principles

Answer 3

IT principles: Clarifying the business role of IT

Question 4

IT architecture

Answer 4

IT architecture: Defining integration and standardization

Question 5

IT infrastructure strategies

Answer 5

IT infrastructure strategies: Determining shared and enabling services (by hardware, software, networks, facilities)

Question 6

Business application needs

Answer 6

Business application needs: Specifying the business need for purchased or internally developed IT applications

Question 7

IT investment and prioritization

Answer 7

IT investment and prioritization: Choosing which initiatives to fund and how much to spend

Question 8

Business Monarchy

Answer 8

A group of business executives or individual executives (CxOs).

Includes committees of senior business executives (may include CIO).

Excludes IT executives acting independently.

Question 9

IT monarchy

Answer 9

Individuals or groups of IT executives

Question 10

Feudal

Answer 10

Business unit leaders, key process owners or their delegates

Question 11

Federal

Answer 11

C-level executives and business groups (e.g., business units or processes)

May also include IT executives as additional participants.

Question 12

IT duopoly

Answer 12

IT executives and one other group (e.g., CxO, business unit or process leaders)

Question 13

Anarchy

Answer 13

Each individual user

Question 14

How do leaders on Asset Utilization govern IT?

Answer 14

IT duopoly governance for all five IT decisions

Question 15

How do leaders on profit govern IT?

Answer 15

Centralized IT governance approach with IT-savvy business leaders (e.g. business monarchies) making the IT decisions on principles, architecture and investments.

Question 16

How do leaders on growth govern IT?

Answer 16

• A business monarchy typically defines the IT principles, attempting to balance operational unit and firm-wide goals.
• IT investments are typically governed by either feudal or a business monarchy

Question 17

What are dynamic capabilities

Answer 17

• Dynamic capabilities (Teece, 2007) enable companies to create, deploy and protect the intangible assets that support the superior long-term business performance.
• The foundations of these capabilities consist in skills, processes, procedures, organizational structures, decision rules and distinct disciplines that motivate and promote the detection (sensing) and capture (seizing) opportunities in order to reconfigure (transforming) their capabilities.
• Dynamic capabilities consist of creating resource combinations that create value and are difficult to imitate, including an effective coordination of interorganizational relationships on a global basis that is able to provide competitive advantages to the company.
• Dynamic capabilities are conceived as a source of sustainable advantage in Schumpeterian regimes of rapid change (Griffith and Harvey 2001).

Question 18

From linear to platform business model

Answer 18

Question 19

What are the 3 TCT dimensions?

Answer 19

Asset specificity: Degree to which the assets used to conduct an activity can be redeployed to alternative uses and by alternative users without sacrifice of productive value

Uncertainty:Environmental uncertainty: uncertainty with respect to technology, demand, local factor supply conditions, inflation, and the like. Behavioral uncertainty: strategic non-disclosure, disguise or distortion of information.

Frequency: The level of recurrence of the activities needed by the firm for the transaction

Question 20

RACI

Answer 20

R (Responsible, NL: Verantwoordelijk): Degene die verantwoordelijk is voor de uitvoering. Verantwoording wordt afgelegd aan de persoon die accountable is.

A (Accountable, NL: Eindverantwoordelijk): Degene die (eind)verantwoordelijk, bevoegd is en goedkeuring geeft aan het resultaat. Als het erom gaat, moet hij/zij het eindoordeel kunnen vellen, vetorecht hebben. Er is slechts één persoon Accountable.

C (Consulted, NL: Geraadpleegd): Deze persoon geeft (mede) richting aan het resultaat, hij/zij wordt voorafgaand aan beslissingen of acties (verplicht) geraadpleegd. Dit is tweerichtingscommunicatie. Als RACI gebruikt wordt, is C gelijk aan S

I (Informed, NL: Geïnformeerd): Iemand die geïnformeerd wordt over de beslissingen, over de voortgang, bereikte resultaten enz. Dit is eenrichtingscommunicatie.

Question 21

Typical Contract Structures for ITO Partnerships

Answer 21

• Strategic level

• Define the overall issues: such as objectives; IT services; contract periods; exclusiveness; price and change (payment term and rate structure); liabilities, damages, and jurisdiction; (Framework Agreement)
• Transfer including IT Dept staff, assets, service contracts (Transfer Agreement)

Tactic level

• Project and service elements: milestones, conditions, resources allocated • Secondment: rate per hours

Operational level

• The levels at which these services are to be delivered and the variations allowed, specifications

Question 22

Draw the balanced scorecard

Answer 22