Lecture 2: IT Governance 1/2 Flashcards

1
Q

What are the 3 symptom categories of traditional IT under-management?

A

Management
Projects
Systems

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2
Q

Management Symptom

A

Management
- IT strategies non-existent
- Top management has unclear objectives
- energy spent on debates on organization and responsibilities

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3
Q

Projects Symptom

A

Projects
- reactive adaptation
- pet projects with unchallenged promises
- gaps in the application landscape

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4
Q

Systems Symptom

A

Systems
- data and applications are inconsistent and incompatible

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5
Q

4 key topics of IT governance

A
  • Establishment of objectives: rights and responsibilities
  • Decision making
  • Compliance
  • Culture
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6
Q

Why is there cost reduction through standards?

A

Because instead of having many variants of the same system you want to have one version.

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7
Q

3 objectives of IT governance

A
  • will formation/decision making
  • implementation incentives
  • controlling/ monitoring
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8
Q

How to resolve inherent goal conflicts?

A
  • incentivizing corporate objectives
  • transparency etc
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9
Q

Which 3 committees in IT governance meet most frequently?

A

Architecture/Infrastructure/Outsourcing Boards (every 6 weeks)
Project Steering Board (6 weeks)
Program Office (regular)

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10
Q

Which 3 committees in IT governance meet least frequently?

A

Managing Board (annual)
Investment Committee (on demand)
Portfolio Prioritization (2 per year)

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11
Q

Why were internal IT service providers often low-performing until way into the 90s?

A
  • Low state-of-the-art
  • Poor leadership
  • Low performance incentives
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12
Q

Advantages and cons of divisionalized large corporations

A
  • continuous responsibility
  • reduced interfaces
  • more transparent allocation of profit and loss

con:
- separation of capacity and know-how

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13
Q

Which types of IT organizations are there?

A

Central, decentral, federal

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14
Q

What are the characteristics, pros & cons of the central IT org. ?

A

characteristic: IT as a cross-section to all business units
pros: standards, economies of scale
cons: inflexible, not business oriented

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15
Q

What are the characteristics, pros & cons of the decentral IT org. ?

A

characteristics: each business unit has its own IT
pros: individual responsibilities, controllability
cons: application jungle

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16
Q

What are the characteristics, pros & cons of the federal l IT org. ?

A

characteristics: decentral, but with an org. anchored governance
pros: best of both worlds
cons: difficult balance, high demand for management capacities

17
Q

What is the risk of too high decentralization of IT? Like IT in each of the parts (Marketing, Sales etc.) of each division.

A

High cross-functional integration requirements, lower IT competence of functional managers

18
Q

Is there a silver bullet for organization structuring?

A

No. You have to take into account history, available people, etc.

19
Q

Which type of IT organization was there first, what was the development?

A
  1. Central as a staff department
  2. Central with corporate CIO
  3. Federal (most modern)
20
Q

How to make critical processes more effective?

A
  • change in meaning (IT as enabler)
  • trend towards divisionalized structure
21
Q

How to make critical processes more efficient?

A
  • economies of scale
22
Q

Can demand or supply be outsourced?

A

Supply. e.g. Application Operation and Support; Infrastructure Management can be outsourced

23
Q

Do early mistakes cost more? And why do they happen?

A

Yes. Most often because of wrong requirement specification and project management

24
Q

What does Business IT bridge?

A

Business IT as a service management that bridges demand and supply

25
Q

5 objectives of Project Portfolio Management

A
  • Management
  • Dependencies
  • Value Optimization
  • Resource Optimization
  • Progress Monitoring
26
Q

4 Phases of the portfolio management process

A
  1. Idea generation
  2. Project proposal evaluation
  3. Scenario development
  4. Portfolio approval
27
Q

Where can project ideas come from?

A

Business or IT, Top or bottom up

28
Q

What to do with a project that is already in the definition phase?

A

Include in current portfolio analysis

29
Q

What to do with a project that is more frequently mentioned (6-8 months)

A

Speed up decision making

30
Q

What to do with projects that are occasionally mentioned? (8-36months)

A

Initiation of an explicit discourse

31
Q

Why re-cut project scopes?

A

–> To eliminate redundancies

32
Q

What if two projects have little overlap concerning profitability or consistency?

A

does not matter

33
Q

What if two projects have overlap with significant impact on profitability or consistency?

A

Create two separate services with dependencies.
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