Lesson 5 Flashcards

1
Q

IT governance definition

A

The way an organization controls IT (investment) decision-making.

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2
Q

Goals of IT governance

A

Achieve IT-Business alignment

Control formulation (creating) of IT strategy

Control implementation of IT strategy

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3
Q

IT governance inlcudes:

A

Responsibilities each stage of decision-making process

Allocating decision rights

Establishing accountability framework for IT

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4
Q

Who makes most IT (investment) decisions? - Centralization

A

Corporation managers or central IT

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5
Q

Who makes most IT (investment) decisions? - Decentralization

A

SBU/LOB managers or local IT

SBU = Strategic business unit
LOB = line of business
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6
Q

Who makes most IT (investment) decisions? - Federation

A

Some corporation level

Some local level

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7
Q

Centralized IT governance - advantages

A

Centralized = Corporation controls IS priorities

Economies of scale
No repetitive projects
Control of IT standards
Better support for integration

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8
Q

Decentralized IT governance - advantages

A

Decentralized = Business units control IS priorities

Responsive to business needs
Accountability of business units for cost

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9
Q

IT Governance archetypes (centralized to decentralized)

A

Business monarchy

IT monarchy

Federal

Duopoly

Feudal

Anarchy

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10
Q

IT principle

A

High-level decisions about the IT

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11
Q

Customized IT governance matrix - Three-step process:

A

Initiation (proposal)

Development

Approval

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12
Q

Customized IT governance matrix - Stakeholders

A

Top management team (TMT)

IT professionals (ITP)

Local administrators (LA)

Professional users (PU)

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13
Q

Customized IT governance matrix - Investment levels

A

High vs. Low

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14
Q

Board’s IT Governance (ITG) Cube (Matta et al. 2016) is for determining:

A

Responsibilities of the board regarding IT governance

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15
Q

Board’s IT Governance (ITG) roles

A

Monitor

Advise

Co-opt

Assimilate (supports the other 3 roles)

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16
Q

Board’s IT Governance (ITG) functions

A

IT risk mitigation

IT value creation

17
Q

Board’s IT Governance (ITG) mechanisms

A

Decision-making structures

Formal processes

Communication approaches

18
Q

IT integration strategies (after takeover or merger)

A

Transformation (renewal)

Combination (standardization)

Consolidation (takeover)

Co-existence (synchronization)

19
Q

IT integration capability means 3 things (after takeover)

A

The new organization is able to integrate both firms’:

  1. Technical infrastructure
  2. IT management processes
  3. IT personnel
20
Q

Successful IT integration requires … integration.

A

Technical
Operational
Social

21
Q

Factors influencing IT integration capability (most influencing to least)

A
  1. Business Flexibility (.57)
  2. IT Infrastructure Flexibility (.47)
  3. Prior IT integration experience (.37)
22
Q

Four dimensions of IT infrastructure flexibility

A

IT compatibility

IT connectivity

Modularity

IT personnel skills flexibility

23
Q

IT compatibility

A

The degree to which IT components running on a specific platform can run on another platform

24
Q

IT connectivity

A

The number and variety of IT components to which a firms’ IT components can connect

25
Q

Modularity

A

Loose integration between IT components.

IT components affect as few other IT components as possible

26
Q

IT personnel skills flexibility

A

The business and technical skills of IT personnel

27
Q

IT governance types

A

Centralization

Decentralization

Federation

28
Q

Centralized IT governance - disadvantages

A

Unresponsive to changes

No business unit accountability for cost

29
Q

Decentralized IT governance - disadvantages

A

Excessive overall cost

Reinvention of wheels

Variable IT standards

Weak system integration