Lec 5

Question 1

3 project types in It budgeting

Answer 1

IT budgeting 3 project types

1. Mandatory - upgrading infrastructure
2. ROI - high ROI project
3. Option- creating inv - poss for future

Question 2

IT Budget allocation - prioritisation process

Answer 2

Prioritisation process is to clearly articulate the strategic goals and objectives

Categories projects under:
Breakthrough (long term capability)
Platform (future impact)
Derivative (ROI)

Question 3

Merge and acquisition strategy

Answer 3

Merge and acquisition strategy:

Absorption: the acquired company ceases to exist

Symbiosis: the strengths of each company are combined

Preservation: acquired company remains fully intact within the merged entity

Then going:
Transformation: abolish both It platforms and get new one
Consolidation: only use one of them
Combination: use best parts of both
Co existence: leave both intact with synchronisation

Question 4

IT Governace - what is it

Answer 4

It governance is how organisations control It (investment) decision making
It governance = decision makers x IT decisions

Which specifies: responsibility for each stage of the entire IT decision process
Allocating decision rights
Establishing accountability framework for IT

And goal of IT governance is business alignment

Question 5

It governance types 2

Answer 5

It governance types:

1. Centralisation - mostly coorperation managers or the central IT
2. Decentralisation - mostly small business units or line of business managers or local it
3. Federation: some decisions are made at the corporal level, some are made at the local level

Question 6

Centralised v decentralised

Answer 6

Centralised: ads = coorperation control IS priorities
Economics of scale
Control of IT standards

Dis = unresponsiveness to changes
No bus accountability for cost

Decentralised ads:
Responsiveness to changes
Accountability for cost

Dis:
Bu controls IS priorities
Excess cost
Variable IT standards

Question 7

5 major it decisions to Control:

Answer 7

5 major it decision to control:

1. it principles - strat role of It
2. It architecture - choices to satisfy business needs
3. It infrastructure- shares it service providers foundation for it capability
4. Business application needs - business requirements for purchased or internally developed it applications
5. Prioritisation and inv: determine how much and where to invest it

The It governance matrix used to compare the 5