

IT Strategy and Management
Test Questions
Course Introduction
IT Strategy and Management explores the essential role that information technology plays in achieving organizational objectives and sustaining competitive advantage. The course examines frameworks and tools for aligning IT initiatives with business strategy, managing IT resources, and overseeing technology investments. Key topics include IT governance, digital transformation, risk management, innovation management, and the evaluation of emerging technologies. Students will analyze real-world case studies to understand challenges and best practices in leading IT-enabled change, developing enterprise architecture, and ensuring that IT contributes measurable business value.
Recommended Textbook Business Driven Information Systems 2nd Edition by Paige Baltzan
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Page 2

Chapter 1: Competing in the Information Age
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Sample Questions
Q1) Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales.Which of the following is not one of the potential pressures that can hurt sales?
A) Suppliers can drive down profits by charging more for supplies.
B) New market entrants can steal potential investment capital.
C) Substitute products can steal customers.
D) Competition can steal customers.
Answer: A
Q2) Companies update business strategies continuously as internal and external environments change.
A)True
B)False
Answer: True
Q3) According to Porter's three generic strategies,Hyundai is following a business strategy that focuses on 'broad market and low cost'.
A)True
B)False
Answer: True
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Chapter 2: Connectivity
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Sample Questions
Q1) Identify the benefits of a connected world.
Answer: Not Answer
Q2) VPNs are often used to connect to a corporate server.VPN stands for a valued partner network.
A)True
B)False
Answer: False
Q3) An ___________ is an extension of an intranet that is available only to authorised outsiders,such as customers,partners and suppliers.
Answer: Extranet
Q4) The main challenges facing networks include security,social,ethical and political issues.
A)True
B)False
Answer: True
Q5) Identify the challenges of a connected world.
Answer: Not Answer
Q6) Describe the three Business 2.0 tools for collaborating. Answer: Not Answer
Page 4
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Chapter 3: E-Business Mobile Business
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Sample Questions
Q1) GPS utilises location-based services (LBS)applications that use location information to provide a service; whereas,a GIS does not use LBS applications.
A)True
B)False
Answer: False
Q2) Amazon creates a unique recommendation listing for each customer that revisits its website.How would you classify Amazon's e-business strategy?
A) Information richness
B) Mass customisation
C) Personalisation
D) Interactivity
Answer: C
Q3) ________ is a security protocol that protects Wi-Fi networks.
A) Wireless prevention policy
B) Wi-Fi protected access
C) Wireless security regulations
D) Wi-Fi technology port
Answer: B
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Chapter 4: Decisions-Processes
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Sample Questions
Q1) Demonstrate the value of business process modeling,and compare As-Is and To-Be models.
Q2) An optimisation analysis finds the optimum value for a target variable by repeatedly changing other variables,subject to specified constraints.What can a manager determine by changing revenue and cost variables in an optimisation analysis?
A) Calculate the highest potential profits
B) Calculate employee benefit payments
C) Use this as an extension for a digital dashboard
D) Create production schedules
Q3) Which of the following explains why a company would implement a BPR strategy?
A) To encourage competition
B) To decrease customers
C) To create value for the customer
D) All the answers are correct
Q4) Describe artificial intelligence,and identify its five main types.
Q5) Product delivery is a customer-facing business process.
A)True
B)False
Q6) Describe business process management and its value to an organisation.
Page 6
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Chapter 5: Technical Fundamentals
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Sample Questions
Q1) What is network topology?
A) Occurs when the sending computer divides a message into a number of efficiently sized units called packets,each of which contains the address of the destination computer
B) An intelligent connecting device that examines each packet of data it receives and then decides which way to send it onwards towards its destination
C) Refers to the geometric arrangement of the actual physical organisation of the computers and other network devices in a network
D) A model for applications in which the bulk of the back-end processing,such as performing a physical search of a database,takes place on a server,while the front-end processing,which involves communicating with the users,is handled by the clients
Q2) ____________ is the capability of two or more computer systems to share data and resources,even though they are made by different manufacturers.
Q3) ____________ device is the equipment used to see,hear or otherwise accept the results of information processing requests.
Q4) Explain topology and the different types found in networks.
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Chapter 6: Systems Development Project Management
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Sample Questions
Q1) What is the systems development life cycle (SDLC)?
A) Involves establishing a high-level plan of the intended project and determining project goals
B) Involves analysing end-user business requirements and refining project goals into defined functions and operations of the intended system
C) Involves describing the desired features and operations of the system
D) The overall process for developing information systems from planning and analysis through implementation and maintenance
Q2) Summarise the different software development methodologies.
Q3) Which gate in the RUP methodology expands on the agreed-upon details of the system,including the ability to provide an architecture to support and build it?
A) Inception
B) Elaboration
C) Construction
D) Transition
Q4) Explain the three different types of outsourcing along with their benefits and challenges.
Q5) Describe the two primary diagrams most frequently used in project planning.
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Chapter 7: Managing Enterprise Architecture
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Sample Questions
Q1) Which of the following describes the difference between a backup plan and a recovery plan?
A) Recovery is an exact copy of a system's information,where backup is the ability to get a system up and running in the event of a system crash or failure
B) Backup is mandatory,where recovery is optional
C) Backup is an exact copy of a system's information,where recovery is the ability to get a system up and running in the event of a system crash or failure
D) Recovery is mandatory,where backup is optional
Q2) A specific type of fault tolerance,________,occurs when a redundant storage server offers an exact replica of the real-time data,and if the primary server crashes,the users are automatically directed to the secondary server or backup server.
Q3) One of the effects of a ___________ on a company's business operations is the halting of transportation where there is a disruption to major highways,bridges and railroads that can slow supply deliveries and stop the shipment of products.
Q4) One way a business can minimise the damage of a system crash is to have a _________ and recovery strategy in place.
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Page 9

Chapter 8: Databases-Business Intelligence
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Sample Questions
Q1) Which of the following fall in the category of external databases in the data warehouse model?
A) Marketing,sales,inventory and billing
B) Data mart 1,data mart 2 and data mart 3
C) Competitor and industry information,mailing lists and stock market analysis
D) Marketing information,sales information and stock market analysis
Q2) Data mining is the process of analysing data to extract information not offered by the raw _______ alone.
Q3) Data __________ issues occur when a system produces incorrect,inconsistent or duplicate data.
Q4) Which of the following is not an example of an advantage to using the web to access organisational databases?
A) Web browsers are much easier to use than a computer-based database
B) The web interface requires few or no changes to the database model
C) It is cleaner and virus-free
D) It costs less
Q5) Explain the business benefits of a data-driven website.
Q6) Relational ____________ constraints are rules that enforce basic and fundamental information-based constraints.
Page 10
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Chapter 9: Supply Chain Management and Customer Relationship Management
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Sample Questions
Q1) A _________ integration takes information entered into a given system and sends it automatically to all upstream systems and processes.
Q2) Which of the following is an organisational result from an effective and efficient supply chain management system?
A) Decrease the power of its buyers
B) Create entry barriers thereby reducing the threat of new entrants
C) Increase efficiencies while seeking a competitive advantage through cost leadership
D) All of the answers are correct
Q3) Which of the following is a common service CRM metric?
A) Number of prospective customers
B) Number of marketing campaigns
C) Average time to resolution
D) Revenue generated by marketing campaigns
Q4) Which question below represents a CRM reporting example?
A) Why did sales not meet forecasts?
B) Which customers are at risk of leaving?
C) What is the total revenue by customer?
D) All of the answers are correct

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Chapter 10: Enterprise Resource Planning Collaboration Systems
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Sample Questions
Q1) Most organisations today have no choice but to piece their _____,_____ and ERP applications together,since no one vendor can respond to every organisational need.
A) CRM,SCM
B) CRM,middleware
C) CRM,EAI
D) CRM,sales forecast software
Q2) Which of the following statements is correct?
A) Groupware is software that supports team interaction and dynamics including calendaring,scheduling and video conferencing
B) Database-based workflow systems store documents in multiple locations and automatically ask the team members to access the document and work on it simultaneously
C) A workflow defines the inputs,outputs and resources required for a business process
D) Workflow software helps automate a range of business tasks and it facilitates the manual routing of the right information to the right people at the right time
Q3) _________ and materials management is one of the three most common core ERP components.
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Page 12

Chapter 11: Ethics, Privacy-Information Security
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Sample Questions
Q1) Which of the following refers to a period of time when a system is unavailable?
A) Downtime
B) MIS down
C) Direct data loss
D) Downtown
Q2) What is it called when a hacker looks through your rubbish to find personal information?
A) Striker bunny
B) Dumpster diving
C) Rubbish retrieval
D) Approved consent
Q3) The best and most effective way to manage authentication is through __________.
A) Smart technology card
B) Tokens
C) Biometrics
D) Passwords
Q4) Companies vary in how they expect employees to use computers; however,the overriding principle that needs to be included with these policies should include informed _________.
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Q5) Explain the ethical issues in the use of information technology.
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Chapter 12: Future Trends
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Sample Questions
Q1) Angola is one of the countries that is expected to have one of the largest increases in population between 2000 and __________.
Q2) Which of the following is not a potential business impact from the world's population doubling in the next 40 years?
A) Developed nations are likely to begin to increase immigration limits.
B) Developed nations are likely to find that retirees will have to remain on the job to remain competitive.
C) Global agriculture is going to be required to supply as much food as has been produced during all of human history.
D) The time to get products and services to market is being shortened by technology.
Q3) Explain why understanding trends and new technologies can help an organisation prepare for the future.
Q4) Identify the seven trends that are going to have the greatest impact on future business.
Q5) List and define the five different scientific methods organisations use to anticipate,forecast and assess future events.
Q6) Medical knowledge is _________ every eight years.
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