Lecture 2: IT Governance 2/2

Question 1

What if you have projects with multiple recurring core functionalities?

Answer 1

Place it outside of the bracket as a basic function in its own project

Question 2

How accurate should cost/benefit analysis be?

Answer 2

Not too accurate because that takes too much time

Question 3

What are the project phases?

Answer 3

Definition
Detail specification
Design
Implementation
Rollout

Question 4

On which phase of the project is most time and effort spent?

Answer 4

On the implementation part (coding, integration and testing)

Question 5

What does IT effectiveness (for what) affect?

Answer 5

indirect effect on revenue and total costs

Question 6

What does IT efficiency (how) affect?

Answer 6

direct effect on IT costs

Question 7

What is scenario development about?

Answer 7

• determination of critical constraints
• prioritization and decision preparation

Question 8

Why do you do a visual representation of resource demand?

Answer 8

to balance load and avoid shortages

Question 9

What is the portfolio approval step about in the portfolio management process?

Answer 9

• prioritization
• enactment roadmap
• trigger for project initiation

Question 10

What are the axis of the prioritization matrix in portfolio approval?

Answer 10

Y = qualitative benefit
X = quantitative benefit

Question 11

Zero-based budgeting

Answer 11

Zero-based budgeting is a budgeting method where all expenses must be justified and approved in each new budget period.

Question 12

What does value controlling do?

Answer 12

It complements portfolio planning to control IT investments.
- long-term value optimization of portfolio

Question 13

Where does most of the budget go in a typical company?

Answer 13

50% operational
50% development
–> but in development, almost nothing goes into changing the business. Almost only into running the business.

Question 14

What is SAM - Strategic Alignment model?

Answer 14

• Systematization and structuring of the alignment problem by comparing an enterprise’s business and IT domain

Question 15

What is the cross-domain-perspective in SAM?

Answer 15

You have two principal layers:
- upper part - strategy as outward-directed domain
- lower part - infrastructure as inward-directed domain

Question 16

What is the Strategic fit about in SAM?

Answer 16

Vertical alignment of business and IT strategy with the corresponding infrastructure

Question 17

What is the functional integration about in SAM?

Answer 17

Horizontal alignment (functional integration) of business and IT (with the distinction between strategic and operative integration)

Question 18

Drawbacks of SAM

Answer 18

• no concrete methods, techniques or activities to support alignment
• model disregards permanent steering aspects and continuous adjustment through (IT) governance
• lack of a process-oriented perspective

Question 19

What does COBIT stand for?

Answer 19

Control objectives for information and related technology

Question 20

What is COBIT?

Answer 20

IT governance framework for sustainable and measurable control of IT in an enterprise

Question 21

What is COBIT divided into? Sketch

Answer 21

4 core domains consisting of 34 IT processes

Question 22

What is the general mission of COBIT?

Answer 22

To research, develop, publicize and promote an authoritative, up-to-date, international set fo generally accepted IT control objectives for day-to-day use by business managers and auditors

Question 23

COBIT 5 areas of governance focus

Answer 23

• strategic alignment
• value delivery
• resource management
• risk management
• performance measurement

Question 24

4 COBIT core domains

Answer 24

• Plan and organize
• Acquire and implement
• Deliver and support
• Monitor and evaluate

–> they split up into different IT processes

Question 25

How does the COBIT cube look like?

Answer 25

Question 26

What is a RACI chart?

Answer 26

• Responsible
• Accountable
• Consulted
• Informed

Question 27

KPI are which indicators?

Answer 27

lead indicators