Week 1

Question 1

Name the four components of the Strategic Alignment model

Answer 1

1. Business strategy
2. IT strategy
3. Business operation
4. IT operation

Question 2

Name the three strategic alignment types that a CIO needs to accomplish

Answer 2

1. Intelectual alignment (business strategy - IT strategy alignment)
2. IT alignment (IT strategy - IT operation alignment)
3. Operational alignment (Business operation - IT operation alignment)

Question 3

What are the two generic business strategies according to Porter?

Answer 3

1. Differentiation (unique products) (CIO reports to CEO)

2. Cost Leadership (lowest unit costs) (CIO reports to CFO)

Question 4

What are the three generic business types according to Miles & Snow?

Answer 4

1. Defender
2. Prospector
3. Analyzer

Question 5

Define the strategy type: Defender

Answer 5

Eschew changes, High-quality but standard products or services at low price, operational efficiency and economies of scale
IS for efficiency

Question 6

Define the strategy type: Prospector

Answer 6

Create changes in its market, new products/markets, innovativeness and flexibility
IS for flexibility

Question 7

Define the strategy type: Analyzer

Answer 7

Follow changes, a stable domain of core products but very quickly introduce better products, a dual technological core with stable and flexible components
IS for comprehensiveness

Question 8

What is IS strategy?

Answer 8

IS strategy focusses on systems or business applications of IT, being concerned primarily with aligning them with business needs and using them to derive strategic benefits.

Question 9

What is IT strategy?

Answer 9

IT strategy is concerned mainly with technology policies, including aspects as architecture, technical standards, security levels and risk attitudes.

Question 10

What is IM strategy?

Answer 10

IM strategy is concerned with the structures and roles for the management of IS and IT. focusing on issues such as the relationship between the specialists and the users

Question 11

What are the three IS strategy types of Sabherwal & Chan?

Answer 11

1. IS for efficiency (internal and inter-organizational efficiencies and long-term decision making)
2. IS for flexibility (Market flexibility and quick strategic decisions)
3. IS for comprehensiveness (Making comprehensive decisions and quick responses through using knowledge of other organizations)

Question 12

What are the six misfits in operational alignment?

Answer 12

1. Functionality (when processes lead to reduced efficiency of effectiveness)
2. Data (inaccuracy, inconsistent representations, inaccessibility)
3. Usability (requiring extra steps that add no value)
4. Role (mismatches between responsibility and authority)
5. Control (too much or too little control)
6. Organizational culture (ways of operating that contravene organizational norms)

Question 13

What do the board of directors do?

Answer 13

• Monitor company (illegal activities, value creation, threaths)
• Advise CEO
• Make decisions about major issues (hiring/firing senior executives, budget ratifying, merging)
• Create general policies

Question 14

What is a process?

Answer 14

A series of actions taken in order to achieve a particular end

Question 15

What is IT operation?

Answer 15

Developing, maintaining and enforcing the use of:

• IT assets (applications, processes, data, staff, infrastructure etc.)
• IT management capabilities (IT management processes and organization)

Question 16

What are the four types of IT infrastructure components?

Answer 16

1. Hardware (computers, servers)
2. Network (routers, switches)
3. System software (operating systems like Windows)
4. Security software (firewall, IDS)

Question 17

What is a IT management process?

Answer 17

A process that deals with adding, maintaining, removing and using IT assets

Question 18

Name the four business applications

Answer 18

1. Operational support systems
2. Market information systems
3. Strategic decision support systems
4. Inter- organizational systems

Question 19

What does an operational system support and what does it facilitate?

Answer 19

Support: monitoring and controlling day-to-day operations
Facilitate: Operational efficiency

Question 20

What does a market information system support and what does it facilitate?

Answer 20

Support: monitoring product sales and trends
Facilitate: Flexibility in responding to the market

Question 21

What does a strategic decision support systems support and what does it facilitate?

Answer 21

Support: long term planning, market strategic decisions, high level of internal/external analysis
Facilitate: Futurity, proactiveness, analysis

Question 22

What does an inter-organizational system support and what does it facilitate?

Answer 22

Support: Exchange of data between an organization and its suppliers etc.
Facilitate: Coordination of companies

Question 23

What is an information system?

Answer 23

A system that facilitates gathering, processing, storing, using, and disseminating information

Question 24

What is information technology?

Answer 24

The use of hardware to implement information systems

Question 25

What are the six business strategy attributes?

Answer 25

1. Defensiveness: strong customer relationship, improve operating efficiency
2. Risk aversion: following known paths
3. Aggressiveness: sacrafice profit for market share
4. Proactiveness: first to introduce new products
5. Analysis: comprehensive analysis
6. Futurity: Budgetting for long-term