IT Business Strategy Flashcards
1
Q
What is governance?
A
What will we do? What is important? How will we determine what is important?
Key elements:
- Determining LT goals, managing/monitoring operations to internal controls and management risks
Processes and structure, to oversee the activities of the organization
2
Q
Why do IT investments go bad?
A
- Project is feasible, too ambitious
- Lack of strategic focus- “bottom up”
- Lack of strategic investment- over-investing in existing businesses and inadequate in transformative tech.
- Inadequate scope and agility
3
Q
Why is IT investments increasing?
A
- Digitization- moving from paper to electronic
- Globalization- Integration of cultures
- Reduce cost
- Improve product quality
4
Q
What are the basic approaches to strategies?
A
- Product differentiation
- Cost leadership- Low cost option through operating efficiencies (use advanced tech to reduce costs and improve production and delivery systems). Internet can increase price competition because the price is everywhere.
