IT Strategy and Management
Textbook Exam Questions
Course Introduction
IT Strategy and Management explores the critical role of information technology in achieving organizational goals, fostering innovation, and maintaining competitive advantage. The course covers the development of IT strategies aligned with business objectives, the principles of IT governance, and the evaluation of technological investments. Students learn to develop and implement IT management plans, assess emerging technologies, manage IT resources and risks, and understand the impact of digital transformation on various industries. Through case studies and real-world examples, the course equips students with the tools and frameworks needed to lead IT initiatives and make informed decisions in dynamic business environments.
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Managing and Using Information Systems A Strategic Approach 6th Edition by Keri E. Pearlson
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Chapter 1: Introduction
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Sample Questions
Q1) Roles that managers fill, according to Mintzberg, include all of the following except:
A) Figurehead
B) Disseminator
C) Disciplinarian
D) Entrepreneur
E) Resource Allocator
Answer: C
Q2) If a manager exhibits creativity, curiosity, and confidence, we would say that he or she supports the role of ______ very well.
Answer: visionary
Q3) Which of the following is not a Decisional role?
A) Entrepreneur
B) Disturbance handler
C) Negotiator
D) Resource allocator
E) Spokesperson
Answer: E
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Chapter 2: The Information Systems Strategy Triangle
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Q1) Social business opportunities fall into one of three categories: collaboration, engagement or ______.
Answer: innovation
Q2) A social business strategy is designed to use social IT tools for all of the following EXCEPT:
A) Collaborating with stakeholders
B) Building deeper connections with stakeholders
C) Innovating with stakeholders
D) Excluding stakeholders
E) Networking with employees, customer and/or suppliers
Answer: D
Q3) CRM stands for ________________.
Answer: Customer Relationship Management
Q4) A social business strategy needs to align itself with the organization's IT strategy but not the business strategy.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Strategic Use of Information Resources
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Sample Questions
Q1) IT resources consist of IT assets and IT _______.
Answer: Capabilities
Q2) Which one of the following is not considered to be a primary activity of the value chain of a firm?
A) Inbound Logistics
B) Service
C) Sales & Marketing
D) Technology
E) Operations
Answer: D
Q3) Porter's five "Forces," used so often in the text for analysis of IT applications, include all of the following except:
A) Threat of substitute products
B) Bargaining power of suppliers
C) Bargaining power of customers
D) New entrants
E) Switching costs
Answer: E
Q4) List the three IS tools used to optimize the operations of a firm's value chain.
Answer: ERP, SCM, CRM
Page 5
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Chapter 4: Organizational Strategy and Information Systems
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Sample Questions
Q1) All statements below are true about a matrix organization structure EXCEPT:
A) The design supports both function and purpose.
B) Operating complexities can be reduced by sharing information among management.
C) Workers are assigned to two or more managers.
D) One weakness is that multiple dimensions of a business are not integrated well with a matrix organization
E) Confusion must be dealt with through frequent meetings and conflict resolution sessions.
Q2) In which type of organizational design do middle managers do the primary information processing and communication function, telling subordinates what to do and then reporting the outcome to senior management?
A) Flat
B) Networked
C) Hierarchical
D) Matrix
E) Hybrid
Q3) This IT-enabled network links individuals together, regardless of location, so that they may get to know people and find useful information.
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Chapter 5: Information Systems and the Design of Work
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Sample Questions
Q1) Steve works for a pharmaceutical company and he specializes in marketing and sales. He generally works from home. According to the text, what type of worker is Steve?
A) Telecommuter
B) Mobile device
C) Global worker
D) Vagabond worker
E) Contract worker
Q2) Which one of the following is NOT a factor driving the use of telecommuting?
A) Geographic flexibility
B) Higher productivity
C) Higher job satisfaction
D) Lower employee turnover
E) Stronger sense of company culture
Q3) How have hiring practices been impacted by IT?
Q4) The factors driving the emergence of telecommuting include: changing demographics and lifestyle preferences, more powerful technologies, increasing reliance on web-based technologies, and _____________________.
Q5) Explain how IS radically changed the paper maker's work at a paper mill.
Q6) List the challenges that a global, virtual team must overcome to be successful.
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Chapter 6: Information Systems and Business Transformation
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Q1) If an organization was going to make substantial changes to its customer service department, it would use this type of transformation tool.
A) Business Process Reengineering (BPR)
B) Reengineering Process Control (RPC)
C) Engineering Control System (ECS)
D) Total Process Improvement (TPI)
E) System Process Control (SPC)
Q2) Computer systems in the 1960s and early 1970s were typically designed around a specific departmental need and did not interface very well. These systems were designed to support:
A) The functional perspective.
B) The entire enterprise.
C) The silo perspective.
D) Incremental change.
E) Social IT and mobile needs.
Ans; c
Q3) Explain issues companies have with one another when linking systems in order to participate in an integrated supply chain.
Matching
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Chapter 7: Architecture and Infrastructure
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Q1) Rigid architectures and organizational models are known to hamper the agility needed to grow a business it today's hypercompetitive environment. Which one of the traditional IT architectures do you consider to be "rigid"?
Q2) For Barclay's Bank, the enterprise architecture ensures the appropriate linkage between IT investment and business needs.
A)True
B)False
Q3) All of the following are reasons why a company may choose to use cloud computing for its IT infrastructure EXCEPT:
A) Cost savings
B) Speed to provision additional capacity
C) Reduce dependency on third-party suppliers
D) Consolidation of servers and even the elimination of a data center
E) Reduce server maintenance costs
Q4) A platform refers to the hardware and ______________ on which application software run.
Q5) It is predicted that cloud computing utilization will decrease over time.
A)True
B)False
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Chapter 8: Security
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Sample Questions
Q1) The deep web is a part of the internet that includes unindexed websites offering both legal and illegal items, such as passports, citizenship, and even murders for hire.
A)True
B)False
Q2) Who is responsible for decisions about security strategy?
A) IT people
B) Shared: IT leaders and business leaders
C) Business leaders
D) Consultants
E) Team of consultants and IT people
Q3) Who is responsible for developing security education, awareness, and training programs?
A) IT people
B) Shared: IT leaders and business leaders
C) Business leaders
D) Consultants
E) Team of consultants and IT people
Q4) What is a challenge question?
Q5) What are the shortcomings of passwords?
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Chapter 9: The Business of Information Technology
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Q1) Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?
A) ROI
B) NPV
C) EVA
D) IRR
E) FV
Q2) A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks. Rarely can a CIO focus on just one task in any given day.
A) Administrative
B) Strategic
C) Database
D) Financial
E) Technology
Q3) List some soft costs one would anticipate when implementing an IT solution.
Q4) Why is TCO so difficult to define? What are some of the challenges of determining TCO?
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Chapter 10: Governance of the Information Systems Organization
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Q1) A steering committee is geared only towards the highest level of the organization and reports directly to the board of directors or the CEO.
A)True
B)False
Q2) There were pressures for centralizing IT back when mainframes ruled, but today's use of "consumerized" technologies have provided strong pressure, by IT people, for decentralization.
A)True
B)False
Q3) Define federalism as it pertains to organizational structures. How does it improve on the centralized model?
Q4) This IT governance archetype consists of C-level executives and at least one other business group. An IT executive may be an additional participant.
A) Business monarchy
B) IT monarchy
C) Feudal
D) Federal
E) IT Duopoly
Page 12
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Chapter 11: Information Systems Sourcing
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Q1) Make the argument for why an outsourcing provider may actually provide better data security than an organization's IT organization can.
Q2) Outsourcing providers have more experience dealing with a large number of IS staff and as a result, are often good at doing all of the following EXCEPT:
A) Marketing IS talent
B) Providing relevant technical training
C) Retaining IT workers for short-term employment
D) Hiring good IT professionals
E) Developing and sharing best practices
Q3) In 1989, Kodak chose a(n) _____ approach to outsourcing IS activities and chose to work with suppliers like IBM, DEC and Businessland. This approach was soon dominated by other firms.
A) offshore
B) multivendor
C) nearshore
D) centralized
E) full outsourcing
Q4) An outsourcing organization may not recommend the use of newer technologies. Why not?
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Chapter 12: Managing IT Projects
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Q1) To maintain balance in a project with a fixed budget and a well-defined scope, a project team will require flexibility ________.
A) with the deadline.
B) in spending.
C) with project quality.
D) with assumed risks.
E) in achieving the goals of the business case.
Q2) Why does the addition of more people to a project not speed up the project efforts?
Q3) List one example of open source software.
Q4) In calling something a "project," the issues of uniqueness and temporariness are very important.
A)True
B)False
Q5) List some strategies a manager should consider when trying to manage a project's technical complexity.
Q6) To transform resources into profits, organizations combine two types of workoperations and ________.
Q7) Agile development tends to be _______-oriented rather than process-oriented.
Page 14
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Chapter 13: Business Intelligence Knowledge Management and Analytics
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Q1) Business analytics tools are used with data in the _____________ to gain insight and support decision making.
Q2) _______________ includes the movement from tacit knowledge to explicit knowledge.
A) Externalization
B) Socialization
C) Internalization
D) Combination
E) Appropriation
Q3) This tool displays key metrics in a graphical form and has drill down capabilities that get to the next level of detail.
Q4) Tacit knowledge is easy to formalize.
A)True
B)False
Q5) The four main types of intellectual property are all of the following EXCEPT:
A) Patent
B) Trademarks
C) Designs
D) Data warehouse
E) Copyrights
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Chapter 14: Privacy and Ethical Considerations in Information Management
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Q1) Unlike the European Union, the U.S. has no general legislature ensuring Internet privacy rights. Instead, the U.S. encourages self-regulation and has introduced industry-specific regulations as needed.
A)True
B)False
Q2) Over time it becomes easier to maintain the accuracy of information.
A)True
B)False
Q3) Green computing is a passing phase and will likely be less strategic to companies in the very near future.
A)True
B)False
Q4) Today's managers must ensure that information about their employees and customers is only available to those who have a right to see it and use it, an issue referred to as:
A) Screening
B) Accuracy
C) Accessibility
D) Perfection
E) Property
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