Test Bank for IT Strategy &
Innovation, 5th Edition by James D.
McKeen
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StepsSol
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Test Bank IT Strategy & Innovation 5th Edition McKeen
Chapter 1, From Technology to Value
QUESTIONS:
EASY
1) Choose the phrase that best completes this sentence:
_____ is the single largest category of U.S. capital investment
A. Business Analytics
B. IT
C. Marketing
D. Software
2) Is this idea true or false:
Plug-in technology and value will be delivered is called Silver Bullet Thinking.
A. True
B. False
3) Choose the phrase that best completes this sentence:
Business implementing technology without input from IT is called ____.
A. Business Design
B. Cloud Technology
C. Problem Solving
D. Shadow IT
4) Is this idea true or false:
Traditional IT metrics are an effective tool to tell the IT value story?
A. True
B. False
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5) Is this idea true or false:
Metrics help tell the full value story to justify investments and demonstrate value delivery.
A. True
B. False
6) Is this idea true or false:
When a business has a vague, unclear strategy, it will always have a low perception of the value of IT.
A. True
B. False
7) Choose the phrase that best completes this sentence:
It is best to tell the IT story using business _____.
A. metrics
B. language
C. objectives
D. strategy
E. All the above
F. None of the above
8) Is this idea true or false:
A business case and measuring success by on-time and on-budget delivery are the best practices for
managing value.
A. True
B. False
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MEDIUM
9) Choose the phrase that best completes this sentence:
_____ is responsible for ensuring that value is realized from IT investments.
A. Executive Leaders
B. Managers
C. IT Leaders
D. IT Staff
E. All the above
F. None of the above
Type: MR
10) Select all the items below from which IT value is realized.
A. A bottleneck created by accelerating a part of a process.
B. Technology itself.
C. Technology tested against customer needs, practices, or preferences.
D. Unused technology.
E. None of the above
11) Type: MR
Select the items below that should not be used in a convincing IT value business narrative
A. Explain the why, what, and how of the work.
B. The story should always be built from the technology (bottom-up).
C. The story should be tailored for each stakeholder group.
D. The story should be about the technology.
E. The story should be framed around business terms and language.
F. None of the above
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12) Type: MT
Match the reasons below with telling a story from the bottom-up or the top-down.
a. bottom-up = Keep asking, "so What?"
b. bottom-up = Justifying foundational technologies
c. top-down = Justifying new functionality
d. top-down = Fitting technology to business objectives
13) Type: MR
Select all the items below that are examples of high-level value.
A. Differentiating existing business capabilities related to products.
B. Improving essential business functions.
C. Matching industry-standard technology.
D. Potential to transform a business through new markets.
E. Reducing Risk.
F. Upgrading staff computers.
G. None of the above
14) Select all the statements that are not true about the appropriate use of metrics to tell the IT value
story.
A. A good metric has a clear link to a business outcome.
B. A good metric is difficult because IT work is several steps removed from the business objective.
C. A good metric is straightforward when outcomes are clearly defined at the outset of an initiative.
D. A good metric is understandable by a non-IT audience.
E. A good metric should be a leading indicator of change.
F. None of the above
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15) Type: MR
Select all the items below through which IT adds value.
A. Defining technology-related business objectives.
B. Delivering cost-effective ongoing services.
C. Determining solutions.
D. Executing initiatives on time and budget.
E. Identifying opportunities.
F. None of the above
16) Type: MR
Select all the items below that the focus group did not identify as a best practice to improve how the
business views IT value.
A. Articulate business strategy.
B. Ensure business engagement at all levels.
C. Improve user technology training.
D. Manage for value.
E. Provide transparency into the IT budget.
F. None of the above
Type: MR
17) Select all the items below that are not included in the value of IT.
A. Compliance
B. Infrastructure
C. Operations
D. Product Development
E. None of the above
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HARD
18) Type: MR
Select all the reasons below that have made it difficult to understand the IT value proposition.
A. The dollar value has been difficult to compute.
B. The business articulates technology's value.
C. There is different views of IT in different parts of an organization.
D. Perceptions of IT value is difficult to capture.
E. Technology changes too quickly and depreciates before its value can be computed.
F. All the above
19) Type: MT
Match the following aspects of IT Value with its definition.
a. Layers of Value = What value to deliver; where to find value; who is responsible for value; and time.
b. Perceptions of Value = Stakeholder and Corporate understanding of IT's capacity and potential.
c. Types of Value = Contingent on meeting the organization's hierarchy of needs.
d. Context = Dependent on an organization's industry, size, and rate of growth.
e. IT Budget = Not an aspect of IT Value.
20) Type: MR
Select all the items below that the focus group identified as challenges to delivering IT value.
A. Budget
B. Financial Processes
C. Inability to Articulate Value
D. Procurement Processes
E. Resource Availability
F. Unrealistic Expectations
G. None of the above
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21) Type: MT
Match the word below with the lettered blank in the following sentence:
A good value story should address (A) the audience should care, (B) the benefit is to them, (C) they will be
expected to engage in this work.
a. why = A
b. what = B
c. how = C
d. when = None
22) Type: MT
Match each word below with a lettered blank in the following sentence:
(A) the business means that IT must have a (B) understanding of their work and speak in terms of (C) value
and benefits, even for (D) initiatives.
a. engaging = A
b. deep = B
c. business = C
d. technology = D
d. assisting = None
CRITICAL THINKING
23) Type: E
As businesses become more dependent on technology, describe where the responsibility should reside to
ensure that IT delivers the expected business value?
NOTES:
The essay should discuss the ideas below from the chapter.
A - The third layer of identifying value is who is responsible. The chapter states that it is a shared
responsibility between IT and business.
B - The chapter describes business strategy makes it easier to understand IT value; therefore,
leadership has an important responsibility.
C - Students could also discuss IT's responsibility to engage with business and using business metrics.
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24) Type: E
IT leaders are continually challenged to prove to the business's leaders that the IT budget delivers value.
Describe three principles that an IT leader should use to convince the business leaders.
NOTES:
The essay should discuss the ideas below from the chapter.
A - The chapter describes the two methods to tell the IT value story below.
a - Use a convincing business narrative: Because value is in the eye of the beholder, IT leaders
must first understand the value the business is trying to create. Address why the audience
should care, what the benefit is to them, how they will be expected to engage in this work,
and what is the desired outcome.
b - Incorporate metrics appropriately: Metrics help support a value story. Good metrics have
a clear link to a business outcome and are understandable by a non-IT audience. Metrics
should be leading indicators of change and show status changes.
B - The chapter describes the five best practices to enhance technology below.
a - Articulate business strategy: When there is a clear business strategy, it is considerably
easier to identify which IT initiatives fit with strategic objectives and which metrics are
appropriate to measure them; it focuses everyone on the kind of value the organization
wants to create.
b - Ensure business engagement at all levels: When business is fully engaged, IT projects
create significant value. Engaging the business means that IT must have a deep
understanding of its work and speak in terms of business value and benefits.
c - Use business metrics: The story of what the IT organization is delivering is told so that the
business will understand. The strategy should be broken down into specific business
outcomes.
d - Manage for value: Traditionally, IT projects have been justified with a business case,
which is never looked at again, and 'success' is measured by delivering on time and
budget; this is changing, and several practices are emerging to ensure value, e.g., agile
development, breaking-up large projects into chunks of value, value realization phase.
e - Little things make a difference: Since everyone is dependent on productivity tools, simple
problems can cause massive irritations.
ANSWERS:
1. B
2. A
3. D
4. B
5. B
6. A
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7. A
8. B
9. E
10. C
11. B, D
13. A, B, D, E
14. F
15. B, C, E
16. C, E
17. D
18. A, C, D
20. B, C, F, G
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Chapter 2, Developing IT Strategy for Business
Value
QUESTIONS:
EASY
1) Choose the phrase that best completes this sentence:
______________ can ensure that business and IT strategies work well together.
A. Strategic goals
B. Strategic alignment
C. Strategy seminars
D. Strategic principles
E. None of the above
2) Choose the phrase that best completes this sentence:
Strategy is _________ to doing business.
A. a guideline
B. a method
C. a necessity
D. an approach
E. None of the above
3) Is this idea true or false:
Achieving a sustainable competitive advantage with technology alone is an easy strategy?
A. True
B. False
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4) Is this idea true or false:
The variety of uses of technology makes implementing an effective IT strategy challenging.
A. True
B. False
5) Choose the phrase that best completes this sentence:
IT strategy is mainly about getting the balance right between ___________ strategic imperatives.
A. business
B. complementary
C. conflicting
D. emerging
E. None of the above
MEDIUM
Type: MR
6) Select all the perennial problems of strategy for organizations.
A. Lack of frameworks
B. Expanding scope
C. Poor alignment between business and IT strategies
D. Setting strategic goals
E. None of the above
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7) Type: MR
Select all the best ways to develop new capabilities.
A. Business lead IT strategy
B. IT lead business strategy
C. Simultaneous Business and IT lead strategies
D. Co-evolve business and IT strategies
E. None of the above
8) Choose the phrase that best completes this sentence:
Most formal IT plans could not support enterprise strategy because it was too focused on
______________ issues.
A. tactical
B. strategic
C. logistic
D. business
E. None of the above
9) Choose the phrase that best completes this sentence:
______________ is an example of the use of information-processing capabilities to drive down
transaction costs to near zero, threatening traditional value propositions, and shaving profit margins.
A. Strategic use of IT
B. Competing on efficiencies
C. Business value
D. Tactical goals
E. None of the above
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10) Choose the phrase that best completes this sentence:
______________ need to take responsibility and leadership in technology investment and
implementation.
A. IT executives
B. CIO
C. CEO
D. Business executives
E. All the above
F. None of the above
11) Type: MR
Select all the items below that a business model explains.
A. Business rules
B. How different pieces of the business fit together
C. IT systems
D. Business processes
E. None of the above
12) Type: MR
Select all the statements below that are a sign of effective strategizing.
A. Designing effective business plans
B. Leading business with IT capabilities
C. Continuous and dynamic synchronization of capabilities
D. Aligning business and strategy only once
E. None of the above
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13) Type: MR
Select all the elements below that work together to create new organizational capabilities.
A. Behaviors
B. Location
C. Materials
D. Strategy
E. Structures
F. Technology
G. None of the above
14) Type: MR
Select all the pitfalls that the focus group identified to develop a strategy.
A. Adopting Competitors' Technology
B. Focus on the Short-Term
C. IT-owned IT Projects
D. Lack of Shared Knowledge
E. Lack of the Big Picture
F. Poor Alignment
G. None of the above
15) Type: MR
Select all the items below that are not part of an IT Strategy.
A. Building tomorrow's product
B. Doing more with less
B. Furthering the business's strategy
C. Keeping technology current
D. None of above
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16) Type: MR
Select all the items below that are not a factor for effective strategy development.
A. Get the right people involved
B. Have a technology roadmap
C. Have strategic themes
D. Revisit your business model
E. Work in partnership with the business
F. None of the above
17) Type: MR
Select all the items below that are barriers to an effective IT Strategy.
A. Inadequate business technology knowledge
B. Inadequate enterprise-wide funding models
C. Lack of a governance structure
D. Leadership
E. Rapidly changing technology
F. Traditional budget cycles
G. None of the above
HARD
18) Type: MT
Match each word below with a lettered blank in the following sentence:
High-performing companies that have (A) managers that (B) in IT (C) is a factor in getting high (D) value
from IT investments.
a. business = D
b. decisions = C
c. lead = B
d. senior = A
e. technical = None
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19) Type: MT
Match each IT initiative with its description.
a. Business enabling = extending or transforming how a company does business
b. Business improvement = helping organizations to streamline its processes and save money
c. Business opportunities = using a small, experimental initiative to test the viability of new concepts or
technologies
d. Infrastructure = ensuring the IT is available to build new capabilities and respond to change
e. Opportunity leverage = leveraging, operationalizing, or scaling up successful strategic experiments or
prototypes
20) Type: MT
Match the strategy implementation practice with its description
a. Rolling planning and budget cycles = more than annual attention to IT plans and budgets
b. Enterprise architecture = an integrated blueprint for both the business and IT
c. Funding buckets = predetermined budget percentage to project types
d. Account managers = gain a deep and rich understanding of the business
e. Prioritization matrix = approach to justifying IT projects
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CRITICAL THINKING
21) Type: E
You recently became the CIO of your organization and have been asked to create the IT budget. 75% of
the current budget is used to "run-the-engine." The remainder is spent on projects for the organization's
largest department. Describe your approach to next year's IT budget.
NOTES:
The essay should discuss the ideas below from the chapter.
A - The remaining portion of the budget should be based on an IT strategy.
B - The four pitfalls in developing an IT strategy are below.
a - Poor alignment: Ideally, business and IT strategies should complement and support each
other relative to the business environment. Strategy development should be a two-way
process between the business and IT.
b - Lack of shared knowledge: Until recently, the job of the IT organization was to
understand the business's strategy and create a plan to support it. As a result, IT's
strategic contribution was circumscribed by IT managers' limited understanding of
business strategy and by business managers' poor understanding of IT's potential.
c - Lack of big picture: Instead of looking for ways to be different, many organizations look
for ways to compete on efficiencies with IT as the primary means of doing so. With such
a short-term, bottom-line focus is the risk of missing the big picture of changes afoot
across the industry or even enterprise-level initiatives.
d - IT-owned IT projects: It is a mistake to consider technology projects to be solely the
responsibility of IT. Business executives must take leadership in making technology
investments in ways that will shape or complement business strategy.
C - Students can discuss the four approaches to developing an IT strategy:
a - Revisit your business model: A complete, clear business model enables strategies that
articulate the unique value that a company delivers that others cannot easily duplicate.
b - Have strategic themes: IT strategy used to be about individual projects. Now it is about
carefully crafted programs that focus on developing specific business capabilities.
Themes give business and IT leaders a broad yet focused topic of interest that
challenges them to move beyond current operations.
c - Get the right people involved: Senior business managers must take a leadership role in IT
decision-making. Many companies have established 'account manager' positions in IT to
work with and learn about the business and identify opportunities for using technology.
Ensure grassroots innovations are nurtured and not filtered out by different layers of
management.
d - Work in partnership with the business: Strategy decisions are best made with input from
business and IT executives. Effective strategizing is about continuous and dynamic
synchronization of capabilities.
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22) Type: E
Understanding that strategy development is an art, describe the essential practices helpful in creating a
flexible, responsive IT strategy.
NOTES:
The essay should discuss the ideas below from the chapter.
The five practices to develop a flexible, fluid strategy are below.
A - Use rolling planning and budget cycles: IT plans, and budgets need attention more frequently
than once a year.
B - Use an enterprise architecture: View the enterprise holistically by using an integrated blueprint
for the organization's development.
C - Use different funding buckets: Balancing short-term returns with a company's longer-term
interests is a continual challenge. Many companies allocate predetermined percentages of the
IT budget to varying types of projects to ensure appropriate funding.
D - Use account or relationship managers: There is no substitute for a deep and rich understanding
of the business.
E - Use a prioritization rubric: The business case method of prioritization makes It challenging to
justify certain IT project types. Therefore, adopt multiple approaches to justifying IT projects.
ANSWERS:
1. B
2. D
3. B
4. A
5. C
6. C
7. D
8. A
9. B
10. D
11. B
12. C
13. A, D, E, F
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14. C, D, E, F
15. A, C
16. B
17. B, C, F
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Chapter 3, Advancing a Data Strategy
QUESTIONS:
EASY
1) Choose the phrase that best completes this sentence:
_____________ strategy is a plan of what an organization wants to accomplish with data and how it
proposes to derive business value from it.
A. Business
B. IT
C. Alignment
D. Data
E. None of the above
2) Choose the phrase that best completes this sentence:
_______________ can provide the necessary direction to both IT and business regarding data strategy
and its implementation.
A. Decision support systems
B. Knowledge management systems
C. Data governance councils
D. Administrative support
E. None of the above
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3) Choose the phrase that best completes this sentence:
Improving communication between the creators and users of the data and developing data quality
metrics to monitor improvements is an example of improving data _________________.
A. Governance
B. Ownership
C. Quality
D. Stewardship
E. None of the above
4) Choose the phrase that best completes this sentence:
A company that wants to improve its data ___________ works on ensuring that data consistently means
the same thing everywhere in the organization.
A. Availability
B. Governance
C. Integrity
D. Reports
E. None of the above
5) Choose the phrase that best completes this sentence:
Email, reports, documents, social media posts are examples of _______________ data.
A. Analyzed
B. Organized
C. Structured
D. Unstructured
E. None of the above
6) Is this idea true or false:
Developing an effective data strategy is a journey, not a one-time activity.
A. True
B. False
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7) Is this idea true or false:
Since many organizations place its senior data role in IT, IT should drive the data strategy.
A. True
B. False
MEDIUM
Type: MR
8) Select the data examples below that are not Structured Data.
A. Database Record
B. Driver’s License
C. Photo
D. Spreadsheet
E. Video
F. Web page table
G. None of the above
Type: MR
9) Select the ways from below in which an organization can create a competitive advantage.
A. Create a long-term strategy.
B. Create a unique competitive position.
C. Develop a plan for the future.
D. Develop new capabilities.
E. None of the above
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Type: MR
10) Select all the items below that are challenges of managing new types of data.
A. Variety
B. Velocity
C. Volatility
D. Volume
E. None of the above
11) Choose the phrase that best completes this sentence:
____________ provides the basis for developing the processes, standards, and guidelines needed to
manage data assets throughout the organization.
A. Data Policy
B. Operations
C. Standards
D. Stewardship
E. None of the above
12) Choose the phrase that best completes this sentence:
_________________ is specific practices needed for a strategy to be successful.
A. Data Policy
B. Operations
C. Standards
D. Stewardship
E. None of the above
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13) Choose the phrase that best completes this sentence:
____________ specifically describes the roles and responsibilities associated with data management and
distinguishes between business and technical responsibilities.
A. Data Policy
B. Operations
C. Standards
D. Stewardship
E. None of the above
14) Choose the phrase that best completes this sentence:
____________ enable the organization to develop enterprise-wide solutions, better integrate evolving
new technologies, implement partnerships, and create innovative solutions.
A. Data Policy
B. Operations
C. Standards
D. Stewardship
E. None of the above
Type: MR
15) Identify all the challenges below to fitting a data strategy in an organization.
A. Business function
B. Data analytics
C. Data ecosystem
D. Organizational structure
E. None of the above
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Type: MR
16) Select all the elements below that are part of a company’s data ecosystem.
A. Data
B. Activities utilizing data
C. Information systems
D. Operations management
E. None of the above
Type: MR
17) Select all the reasons by which deriving information from data does not create a challenge for an
organization.
A. Business wants data to stay stable, and IT wants data to be standardized.
B. Data is both an asset and a vulnerability.
C. Data is integral to the work of business and IT
D. Managing data affects capabilities, products, and services.
E. None of the above
Type: MR
18) Select the items below that do not directly contribute to Data Strategy Development and
Governance.
A. Budget
B. Business Strategy
C. Community Standards
D. Data Custody
E. Data Delivery
F. Technology Strategy
G. None of the above
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HARD
Type: MT
19) Match the data strategy philosophy with its meaning.
a. Pragmatic = “being flexible and iterative.”
b. Action-oriented = “understanding what critical business needs we should be addressing with data.”
c. Risk-oriented = “managing legal exposure, appropriate uses of data, and operational exposures.”
d. Post-industrial = “supporting a ‘pick what you need’ model.”
Type: MT
20) Match the type of data issue with its definition.
a. Policy = the basis for developing the processes, standards, and guidelines to manage data assets
b. Operations = the specific practices put in place for a strategy to be successful
c. Stewardship = the roles and responsibilities associated with data management
d. standards = an enabler of enterprise-wide solutions
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CRITICAL THINKING
21) Type: E
Implementing a data strategy can be daunting. Explain where the responsibility for the data strategy
should be placed in an organization and the essential practices that should be used to implement the
data strategy.
NOTES:
The essay should discuss the ideas below from the chapter.
A - Questions to consider to determine where a data strategy fits in an organization include:
a - Is it a business or IT function?
b - To what level in the organization should it report?
c - Where does the data strategy fit with the rest of the data ecosystem?
B - Technology should not be the sole driver of the data strategy.
C - Best practices for implementing a data strategy include:
a - Put someone in charge: It is more likely that progress will be made if someone is paying
attention to developing a data strategy and making it a priority.
b - Have a vision and set priorities: Having a big picture vision enables IT to undertake
smaller projects of more practical value to business that contribute to achieving a
broader data strategy.
c - Keep it pragmatic: Continually show real business value from data; no organization
should attempt to implement a data strategy in a ‘big bang.’
d - Educate the business: Small proof of concept initiatives can help the business see the
opportunities for using data more effectively and highlight the value of how a clear data
strategy can support and enhance a business strategy.
e - Measure progress: People pay attention to what is measured.
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22) Type: E
Data quality problems are endemic in every organization. How can implementing a Data Strategy and
Data Governance contribute to improving data quality?
NOTES:
The essay should discuss the ideas below from the chapter.
A - Governance is essential to providing sponsorship and guidance to make data strategy effective.
B - Data strategy is a data-oriented plan for the organization to succeed, which is needed due to:
a - New analytical technologies
b - New types of data
c - New risk and compliance concerns
d - New competition
e - New value
C - The synergy between data quality and data strategy
a - High-quality data enhances trust and is a key factor in improving the organization’s
information orientation
ANSWERS:
1. D
2. C
3. C
4. C
5. D
6. A
7. B
8. B, C, E
9. B, D
10. A, B, D
11. A
12. B
13. D
14. C
15. C, D
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16. A, B
17. E
18. A, C
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Chapter 4, Creating and Evolving a Digital Strategy
QUESTIONS:
EASY
1) Is this idea true or false:
Digital strategy is a well-understood concept.
A. True
B. False
2) Is this idea true or false:
Digital strategy is more long-term than traditional strategies.
A. True
B. False
3) When creating a digital strategy, the most significant risk a multichannel business faces is:
A. Cannibalization
B. Obsolescence
C. Organizational silos
D. Value proposition
E. None of the above
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4) Choose the phrase that best completes this sentence:
The ___ is vital for development and implementing a digital strategy because they can challenge
business leaders - "Have you thought about this?"
A. CDO
B. CEO
C. CIO
D. CTO
E. None of the above
5) Choose the phrase that best completes this sentence:
________ change is done in some organizations by creating separate business entities to break away
from traditional cultures and work practices.
A. Organizational
B. Long-term
C. Functional
D. Digital
E. None of the above
6) Choose the phrase that best completes this sentence:
_________ is usually the function in IT that is charged with assessing emerging technologies and
providing the infrastructure that will support experiments.
A. Architecture
B. Development
C. Quality Control
D. Operations
E. None of the above
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7) Is this idea true or false:
A digital strategy can cause assets to be better leveraged because it can ensure that pieces of a process
or an experience work holistically.
A. True
B. False
MEDIUM
Type: MR
8) Select all factors below that are changing the competitive landscape, undermining established
business models, and putting pressure on business and IT alike to change rapidly.
A. lower barriers to entry
B. increasing technical capability
C. faster delivery
D. agile project implementation
E. None of the above
9) Choose the phrase that best completes this sentence:
Digital strategy is more ________ than traditional strategy because it can involve every part of the
organization.
A. Achievable
B. Complex
C. Robust
D. Sustainable
E. None of the above
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Type: MR
10) Select all the items below that Digital Strategy stresses.
A. Certainty
B. Experimentation
C. Exploration
D. Innovation
E. Value
F. None of the above
11) Choose the phrase that best completes this sentence:
The best strategy for a consumer-oriented business is to have a _______ shopping model.
A. bricks-and-mortar
B locality-centric
C. online
D. shared
E. None of the above
Type: MR
12) Select all the items below that are unanticipated side-effects of implementing a successful digital
strategy.
A. Access to customer data
B. Less paper
C. More email
D. Positive cultural shift for employees
E. None of the above
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Type: MR
13) Select all the practices below that assist in focusing on the development and implementation of a
digital strategy.
A. Communicate constantly
B. Consider the CIO's role
C. Establish a business-first structure
D. Nurture new ideas
E. Seek broad community engagement
F. None of the above
Type: MR
14) Select all the areas below in which traditional business and IT strategies are the same.
A. Complexity
B. Exploration
C. Holistic
D. Scope
E. None of the above
Type: MR
15) Select all the strategic questions below which a Digital Strategy communicates.
A. How will we deploy our infrastructure?
B. What existing concepts will we emphasize?
C. What experiences do we want to create?
D. Where will we choose to play?
E. None of the above
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Type: MR
16) Select all the items below that are the benefits of a digital strategy.
A. Clarifies digital's business impact.
B. Makes it easier to track and adapt changes.
C. Prioritizes purchasing choices.
D. Provides a roadmap for change.
E. None of the above
HARD
Type: MT
17) Match each word below with a lettered blank in the following sentence:
A digital strategy is a means of (A) new and different technologies in ways that (B) operational and value
assumptions and which integrate them with existing (C) to deliver new products, (D), business models,
revenue streams, and customer/stakeholder experiences.
a. challenge = B
b. embracing = A
c. planning = None
d. services = D
e. technologies = C
Type: MT
18) Match each element of a mature digital strategy below with its description.
a. Digital Experience Design = A long-term vision for the customer experience
b. Digital Operating Model = The options, criteria, and path for the selection of technology
c. Digital Platform Assessment = The timing, effort, and costs to deliver multiple releases
d. Delivery Plans = The creative concepts and designs, developer-ready requirements, prototypes,
business value measurements for a specific solution
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Type: MT
19) Match each capability and component below with a reason that it contributes to a successful digital
strategy.
a. Data and Analytics Strategy = Enabling new opportunities
b. Supportive Culture = Supporting new ways of thinking, working, and leading
c. New capabilities = Bridging the gap between business and technology
d. Support for Experimentation = Establishing a mechanism to cultivate, evaluate, and integrate
innovation
e. Flexible Architecture = Anticipating and planning for new technologies
f. Rapid Development and Implementation = Working more productively and flexibly
Type: MT
20) Match each ecosystem with the means it can be used to increase interconnections between people,
organizations, and devices.
a. Platform Ecosystems = Enabling members to develop complementary products and services
b. Innovation Ecosystems = Assessing capabilities and talents from outside the organization
c. Interest Ecosystems = Creating awareness of the organization's products and services
d. Commercial Ecosystems = Engaging with complementary organizations to deliver products and
services
e. Device Ecosystems = Connecting consumers and organizations
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CRITICAL THINKING
Type: E
21) The Board of Directors has raised concerns about the organization falling behind its competitors' use
of technology. While the CEO has defended the business strategy, he is considering three options:
a- asking his executive team to revise the business strategy to address technology,
b- asking the CIO to revise the IT strategy, or
c- hiring a CDO to create a digital strategy.
Briefly, describe the strengths and weaknesses of these approaches. Which would you recommend?
NOTES:
The essay should discuss the ideas below from the chapter.
A digital strategy is the best approach. A digital strategy differs from business and IT strategy in the five
key areas below.
A - The Unknown: Rather than having a longer-term focus and being based on well-established
business models and competitive landscapes, digital strategy is dynamic.
B - Complexity: It can involve every part of the organization, partners, customers, the value chain,
and competitors.
C - Holistic: It requires a coherent and integrated approach to connecting people, processes, and
things.
D - Exploration: Rather than seeking certainty, digital strategy stresses innovation, experimentation,
and exploration.
E - Scope: Rather than bringing about change relying on a traditional business model, a digital
strategy seeks new designs that connect or integrate business assets through big data and
analytics, the internet of things, and artificial intelligence.
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Type: E
22) You have been assigned to draft your organization's new digital strategy. You know that a digital
strategy needs to communicate the value of the strategy and address essential strategic questions.
Describe the value of using a digital strategy. Provide the strategic questions the digital strategy should
answer and explain how these questions are crucial and support the digital strategy's value.
NOTES:
The essay should discuss the ideas below from the chapter.
The nine benefits of a digital strategy are below.
A - A mechanism for thinking about new directions for business: The hype about and pressure to
become more digital would be a catalyst for IT and business leaders to re-evaluate all aspects of
their business model.
B - An overarching view of multichannel business: New channels such as mobile and sensors
supplement existing channels. However, if channel strategies are developed and implemented
separately by different organizational silos, this opportunity will be lost.
C - The ability to mutually reinforce the physical and digital experience: Although online is very
important, bricks and mortar are not going away; there is much power in the combination of
digital and physical.
D - An organizing metaphor for change: Whereas IT work was grouped into projects in the past, a
digital strategy provides a more comprehensive roadmap for change with technology.
E - Improved connection with internal and external audiences: A digital strategy ensures that a
customer's overall experience with a company and all forms of customer engagement is
considered.
F - The power of integration is often underestimated: When all the pieces in a process or an
experience work together holistically, companies can accomplish amazing things.
G - Improved innovation: With a clear vision in place, innovation can be more focused and guided by
digital strategy and ongoing feedback.
H - Improved business decision-making: Real-time feedback from customers, suppliers, and
employees, as well as from the big data collected by various types of digital technologies,
enables leaders to make improved decisions and reduce operational risk.
I - Improved employee engagement: One unanticipated side-effect of implementing a successful
digital strategy is a positive cultural shift in which employees feel more connected to the
company, engaged with its brand, and aware of its strategy.
ANSWERS:
1. B
2. B
3. C
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4. C
5. D
6. A
7. A
8. A, B, C, D
9. B
10. B, C, D
11. C
12. D
13. A, B, D, E
14. E
15. C, D
16. A, B, D
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Chapter 5, IT in the Cloud: Delivering Value
Differently
QUESTIONS:
EASY
1) Choose the term below that best completes this sentence:
Through _________-as-a-service, companies can access the servers, storage, and networking
functionality they need on an as-needed basis.
A. Business
B. Software
C. Platform
D. Infrastructure
E. None of the above
2) Choose the phrase below that best completes this sentence:
Organizations concerned about the risks of _______ cloud sharing can create a private cloud that
enables IT capabilities to be delivered internally “as a service” over an intranet and behind their firewall.
A. External
B. Shared
C. Public
D. Internal
E. None of the above
3) Is this idea true or false:
Cloud computing solutions are a panacea for an organization’s IT woes.
A. TRUE
B. FALSE
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4) Is this idea true or false:
Cloud computing will have an evolutionary impact on IT architecture and a revolutionary effect on
business strategy.
A. TRUE
B. FALSE
5) Is this idea true or false:
Designing a clear Service-Level-Agreement is a challenge in cloud computing contracts.
A. TRUE
B. FALSE
MEDIUM
Type: MR
6) Select all the items below that are expected benefits of adopting cloud computing.
A. improved strategic alignment
B. increased flexibility
C. industry integration
D. radically reduced prices
E. None of the above
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Type: MR
7) Choose all the cloud computing services below that allow customers to develop, run, and manage
web-based applications without the complexity of building and maintaining the infrastructure typically
associated with such applications.
A. BaaS
B. SaaS
C. PaaS
D. IaaS
E. None of the above
8) Choose the phrase below that best completes this sentence:
_________ is browser-based and runs in a logical and virtual environment that is automatically
upgraded and maintained.
A. BaaS
B. SaaS
C. PaaS
D. IaaS
E. None of the above
9) Choose the phrase below that best completes this sentence:
Running employee benefits management, procurement, business travel, and industry-specific processes
in the cloud is an example of _______.
A. BaaS
B. SaaS
C. PaaS
D. IaaS
E. None of the above
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10) Choose the phrase below that best completes this sentence:
To _____ cloud is an example of the worst way to implement any type of cloud computing.
A. migrate an existing process or service that is an internal mess to the
B. move the existing content to a public-private hybrid
C. outsource all systems to the
D. avoid the use of the
E. None of the above
11) Choose the phrase below that best completes this sentence:
IaaS can be leveraged for flexibility and load balancing of computing capabilities because infrastructure
is becoming highly ____________.
A. Expensive
B. Commoditized
C. Available
D. Scarce
E. None of the above
Type: MR
12) Select all the risks below that are not external risks of cloud computing.
A. Compliance
B. Data
C. Lack of readiness
D. Suppliers
E. None of the above
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Type: MR
13) Select all the risks below that are not internal risks of cloud computing.
A. Increased Cost
B. Integration challenges
C. IT Governance
D. Loss of Control
E. None of the above
Type: MR
14) Select all the parameters below that are not a basis to compare cloud computing vendors.
A. Vendor’s market size
B. Technology stack
C. Service availability
D. Service testimonials
E. Related experience
F. Alignment with requirements
G. None of the above
Type: MT
15) Match each acronym below with the description of its cloud strategy.
a. Iaas = Provides the computing power needed on a virtual and dynamic basis.
b. PaaS = Provides the infrastructure to develop, run, and manage web-based applications.
c. Saas = Provides browser-based shared functionality.
d. BaaS = Provides specific browser-based processes.
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Type: MR
16) Select all the items below that are key issues to clarify in a Cloud SLA.
A. Disaster recovery services
B. Integration services
C. Migration services
D. Outages and uptime
E. Performance
F. Price caps
G. Start of service date
HARD
Type: MT
17) Match the word below with the lettered blank in the sentence:
The key to the (A) use of cloud computing is to carefully select (B) to use the cloud, which involves
adopting internal (C) practices to (D) as potential options and using a rigorous (E) process to determine
the (F) and its potential benefits.
a. F = appropriateness of a cloud services
b. E = assessment
c. C = decision-making
d. A = effective
e. D = incorporate cloud services
f. B = where and how
Type: MT
18) Match each phase of the cloud vendor selection process with its description
a. Maintain a competitive environment = Prototyping various cloud-based solutions.
b. Prepare = Develop skill levels, a decision-making process, and determining needs.
c. Negotiation = Selecting vendors, obtaining proposals, and awarding a contract.
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Type: MT
19) Match the source below with the pressure it is bringing on IT to move to the cloud more quickly.
a. Business = Gotten cloud services on its own.
a. Cost = Perception of in-house solutions versus cloud-based solutions.
b. Mobility = Apps are easier to implement.
c. Value = Providing access to considerable functionality.
d. Vendors = Strongly promoting cloud-based software.
Type: MT
20) Match each cloud strategy below with its goal or objective.
a. Cloud for business innovation = To quickly support exploring new business opportunities
b. Cloud for expertise = To gain access to new technologies and applications and the necessary
resources and expertise
c. Cloud for infrastructure = To provide flexibility and load balancing of our computing capabilities.
d. Cloud for usage management = To better manage spikes or bursts of usage.
CRITICAL THINKING
Type: E
21) The pressure on IT to use cloud-based solutions is increasing from many sources. Identify four
sources of this pressure and explain how each source is influencing IT to adopt cloud-based solutions.
NOTES:
The essay should discuss the ideas below from the chapter.
The chapter identifies the five sources of pressure below.
A- Business: Business has gone and gotten cloud services on its own
B- Vendors: Vendors are eliminating on-premise versions of software and vigorously promoting
cloud-based versions.
C- Mobility: Mobile apps are easier to implement with cloud services and run faster with the cloud.
D- Value: Cloud computing is perceived by many business leaders as being more flexible and easier
to implement.
E- Cost: Cloud solutions are perceived to cost much less than in-house solutions.
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Type: E
22) Most organizations are at the beginning of adopting cloud-based solutions. Explain the difference
between external and internal cloud implementation risks. Describe the three external risks and four
internal risks that you think are the most significant.
NOTES:
The essay should discuss the ideas below from the chapter.
A- External Risks are almost entirely related to the vendor selection and management process.
They are linked to the reduced control IT leaders have when turning data and functionality to
another company.
a. Data Risk: Many companies must ensure that data is physically resident in a particular
geographic region or country. Some companies do not want some types of data or
intellectual property to reside in the cloud.
b. Compliance and Regulatory Risk: Cloud vendor contracts must accommodate the same
restrictions as those that apply to the organization and enforce them with any subcontracted third party.
c. Lack of Agility: Every vendor needs to be assessed on its ability to deliver the features,
functions, and service levels required to meet business needs.
d. Supplier Risk: Cloud computing is still maturing as an industry, and many service
providers are financially fragile.
e. Security Breaches: Every year, more software vulnerabilities are discovered, and more
data breaches occur.
B- Internal Risks are the significant risks that arise within the organization from using cloud-based
solutions.
a. Increased cost: Although perceived to be cost-efficient due to a lower entry cost, cloud
services may be more expensive from a total cost of ownership perspective.
b. Lack of cloud readiness: Some workflows and processes are more cloud-ready than
others.
c. IT governance: To incorporate adopting cloud computing platforms and services,
organizations will need to redefine the existing processes and standards and add
different types of expertise to these processes.
d. Loss of control: Cloud service providers are dictating the pace of technical innovation.
Under-investment in new technology denies client flexibility, while over-investment
leaves an organization dealing with more upgrades than the organization would like,
and often at a time it would not like.
e. Third-party applications: As cloud ‘ecosystems’ grow, other related services are added;
however, these can be native applications certified by the ecosystem vendor or
composite applications that are integrated into the ecosystem but not guaranteed by
the vendor.
f. Integration challenges: Integration with equipment hosted in other data centers is still
challenging to achieve.
g. Adjustments in IT practices: IT organizations will need to adjust architecture and design
principles and practices for new and current systems to incorporate the advantages of
cloud technology.
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h. Changes in IT knowledge and skills: New IT skills and knowledge will be needed to use
cloud computing effectively, such as implementing and managing cloud service
contracts.
ANSWERS:
1. D
2. C
3. B
4. A
5. A
6. A, D
7. C
8. B
9. A
10. A
11. B
12. C
13. E
14. B, C, E
16. A, D, E, F
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Chapter 6, Effective Governance for IT Value
QUESTIONS:
EASY
1) Is this idea true or false:
IT leaders have moved aggressively to redefine IT functions, services, and governance practices.
A. TRUE
B. FALSE
2) Is this idea true or false:
Generally, it is not easy to design governance without adding significant extra work for the staff.
A. TRUE
B. FALSE
3) Is this idea true or false:
Data governance is responsible for managing data as a strategic asset.
A. TRUE
B. FALSE
4) Is this idea true or false:
Governance is equally challenging to all organizations around the world.
A. TRUE
B. FALSE
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MEDIUM
Type: MR
5) Select all the activities below that are a component of IT work.
A. Measuring the work, i.e., evaluation.
B. Managing deliverables, i.e., project management.
C. Making decisions about what work to do, i.e., strategy.
D. Delivering the work, i.e., execution.
E. None of the above
6) Choose the term below that best completes this sentence:
_________ is the system of structures, processes, and roles that collectively oversee the two major
components of IT work.
A. Project Management
B. IT Risk Management
C. IT Operations Management
D. IT Governance
E. IT Assurance
F. None of the above
Type: MR
7) Select all the items below that are not drivers for senior leaders to focus on IT Governance.
A. Aligning strategy and execution
B. Compliance with laws and regulations
C. Delivering customer value
D. Ensuring privacy and security
E. Improving IT execution
F. None of the above
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8) Choose the word below that best completes this sentence:
IT governance helps ________ an organization's governance structure for innovation and strategic
projects with its structure for execution and operations governance.
A. Unify
B. Market
C. Integrate
D. Align
E. None of the above
9) Choose the term below that best completes this sentence:
In large organizations, IT governance is achieved through an integrated __________ of organizational
groups that provide oversight in different areas.
A. Framework
B. Leaders
C. Teams
D. Units
E. None of the above
Type: MR
10) Select all the organization levels below where Governance operates.
A. Board
B. Enterprise IT
C. Leadership
D. Local
E. Product
F. None of the above
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11) Choose the word below that best completes this sentence:
____________ governance consists of architecture, security & privacy, data, operations, and it
capabilities are part of:
A. Project
B. Enterprise IT
C. Business Unit
D. Application
E. None of the above
12) Choose the word below that best completes this sentence:
____________ governance enables limited, discretionary IT decision-making.
A. Board
B. Enterprise IT
C. Leadership
D. Local
E. Product
F. None of the above
Type: MR
13) Select all the levels of governance below in which senior leadership should be involved.
A. Board governance
B. Business Unit governance
C. Enterprise IT governance
D. IT governance
E. Local governance
F. None of the above
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Type: MR
14) Select all the circumstances below under which governance should be completely re-evaluated.
A. Changes in the economy.
B. Changes in strategy.
C. Changes in customers.
D. A Merger or acquisitions.
E. None of the above
15) Choose the word below that best completes this sentence:
Presently, ____________ is the most challenging area of governance for many organizations.
A. Architecture
B. Cloud
C. Data
D. Project
E. Security
F. None of the above
Type: MR
16) Select all the reasons below by which governance significantly influences the benefits realized from
IT investments.
A. Providing a framework for the successful execution of IT projects.
B. Linking effective governance to an organization's performance goals.
C. Ensuring the right groups are making the key IT decisions to ensure the desired enterprise goals and
behaviors are achieved.
D. Ensuring that senior leadership has insights into IT acquisitions and implementations.
E. None of the above
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Type: MR
17) Select all the responsibilities below for the architecture area of Enterprise IT governance.
A. Ensure application designs follow the organization's standards.
B. Identify best practices and industry standards for use in IT.
C. Provide consultation to business negotiations with cloud vendors.
D. Provide oversight and approvals for technology initiatives.
E. Set current and future technology strategy.
F. None of the above
Type: MR
18) Select all the best practices below recommended by the focus group for improving IT governance.
A. Balance centralization and decentralization
B. Clarify strategies and principles for staff augmentation
C. Continuous communication from the IT governance leadership
D. Include release valves
E. Plan then implement IT governance practices
F. Use industry or other organization's proven IT governance
G. None of the above
HARD
Type: MT
19) Match each governance mechanism below with its description.
a. Rules = Enforceable things such as policies, compliance, technical standards, mandates.
b. Principles = Widely-held and time-tested tenets that apply to an area such as architecture.
c. Guideline = A generally accepted and proven procedure.
d. Best Practice = An industry-recognized approach that is promoted as an ideal activity
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Type: MT
20) Match each governance area below with its governance challenge.
a. Cloud service providers = Can require extra vigilance to ensure all corporate, regulatory, and
government criteria are met.
b. Data = Can be politically difficult to set standards without clarity about who owns, produces, and uses
the asset.
c. Mobility = May contain new vulnerabilities, encourage short-circuiting tried and true practices, and
have immature or rapidly changing standards.
d. Third-party vendors = Can have gaps in governance resulting in legal, audit, compliance, or security
and privacy issues.
CRITICAL THINKING
Type: E
21) As the CIO of your organization, your peer leaders have pushed the IT organization for faster delivery
of projects and services. Your leadership team has begun planning to transform the IT organization to
Agile delivery. However, you are concerned that the team also needs to address its governance. Create
an IT Governance re-design plan. Based on your opinion, the plan shall include your rationale for
inclusion and a description of the three factors for effective governance and the three best practices for
re-designing IT Governance practices.
NOTES:
The essay should discuss the following ideas from the chapter:
The five drivers for effective governance are below.
A - Ensuring privacy and security: Board of Directors recognize that a security breach could at
minimum embarrass its company and potentially cause significant losses.
B - Compliance with laws and regulations: There is a growing amount of legislation affecting
governance. Regulators in specific industries are becoming more demanding. Internal and
external auditors are becoming more intrusive and prescriptive in their reports.
C - Improving risk management: Vulnerabilities are increased because IT service offerings include
third-party software and rely on a rapidly evolving ecosystem of service providers.
D - Improving alignment between strategy and execution: Often, organizations have misaligned
governance structures. When actions in one ignore governance requirements in the other, then
governance is undermined to the detriment of the entire organization.
E - Increasing customer involvement: As technology touches the lives of end customers more and is
more visible, corporate reputations are increasingly at risk.
The seven best practices for re-designing governance practices are below.
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A- Make fact-based decisions: The more facts brought to bear on a decision, the better that
decision will be. Facts improve clarity and consistency and create trust in the decisions that are
made.
B- One size does not fit all: Governance in any company should be as simple as possible with a
limited number of goals; however, governance will vary according to the industry, size of the
company, and geographical make-up of the organization.
C- Balancing centralization and decentralization: Centralized governance favors the needs of the
enterprise. Decentralized governance favors responsiveness to the business. Balancing these is
the challenge: the need to act faster and in closer alignment with the business while still
protecting the organization's overarching interests.
D- Monitor and Iterate: Although governance models should be carefully designed to reinforce an
organization's goals, they are not easy to get correct the first time. Therefore, monitor how a
model works in practice and adjust to ensure all processes integrate smoothly and efficiently.
E- Communicate from the top: The CIO and senior leadership team must communicate strategy
clearly throughout the organization and educate all personnel about the rationale for key
governance mechanisms. Ideally, governance should be communicated on a single page, and
education used to align the culture with organizational objectives better.
F- Clarify strategies and principles for staff augmentation: Organizations need to ensure vendors
comply with their governance practices and that staff is fully trained in what is expected.
G- Include release valves: Even the best-designed governance model needs an exception process to
handle justifiable deviations from best practices.
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Type: E
22) As the technology deployed in IT services rapidly evolves, so too governance practices evolve.
Describe how governance practices need to evolve for three of these areas: cloud providers, data,
mobility, third-party vendors.
NOTES:
The essay should discuss the following ideas from the chapter:
A- Cloud services provider: Companies must be extra vigilant to ensure cloud vendors meet all
corporate, regulatory, and government criteria, such as where data is located.
B- Data: Data governance requires consistent standards for each piece of data, but without clarity
about who owns what, who produces it, and who uses it, the information produced can be
inaccurate or conflicting.
C- Mobility and other new technologies:
a - The technologies themselves may contain new vulnerabilities.
b - The rush to implement new technology and innovative applications may create pressure
to short circuit tried and true practices.
c - Typically have immature and rapidly changing standards, which make it challenging to
integrate into a technical architecture.
D- Third-party vendors/outsourcers: Gaps in governance and assumptions about decision-making
occur when work is subcontracted out to third parties, who may, in turn, subcontract out some
work.
ANSWERS:
1. B
2. A
3. A
4. B
5. C, D
6. D
7. A, B, D
8. D
9. A
10. A, B, D
11. B
12. D
13. A
14. B, D
15. C
16. B, C
17. B, D, E
18. A, B, D
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Chapter 7, The IT Budgeting Process
QUESTIONS:
EASY
1) Choose the term below that best completes this sentence:
_______ costs consist of what it costs to ‘keep the lights on’ in IT.
A. Technology
B. Strategic
C. Operations
D. HR
E. None of the above
2) Is this idea true or false:
The IT budgeting processes are multilevel, complex, and frequently occur in parallel.
A. TRUE
B. FALSE
3) Is this idea true or false:
IT plans and budgets need attention more frequently than once a year.
A. True
B. False
4) Is this idea true or false:
The concepts and practices of the corporate fiscal world align with how IT works.
A. True
B. False
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MEDIUM
Type: MR
5) Select all the expenses below in which Fiscal IT budgets (i.e., those prepared for the CFO) are broken
down.
A. capital expenditures
B. HR expenses
C. operating expenses
D. technology expenses
E. None of the above
Type: MR
6) Select all the categories below in which IT managers plan their spending.
A. technology costs
B. operations costs
C. strategic investments
D. HR costs
E. None of the above
7) Spending on initiatives and technology designed to deliver new business value and achieve the
enterprise’s strategic objectives is known as:
A. Technology
B. Strategic investments
C. Operations
D. HR
E. None of the above
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8) Choose the term below that best completes this sentence:
________ is the process of allocating the cost of the services IT provides to others’ budgets.
A. Budgeting
B. Cost allocation
C. Cost management
D. IT Governance
E. None of the above
Type: MR
9) Select all the areas below that are assisted by effective IT budgeting.
A. Alignment
B. Fiscal discipline
C. Governance
D. Strategy implementation
E. None of the above
Type: MR
10) Select all the activities below that are not part of the corporate context within which IT plans and
budgets are created.
A. Set IT spending levels
B. Establish strategic goals
C. Establish the fiscal strategy
D. Establish IT governance
E. None of the above
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Type: MR
11) Select all the items below that are part of the IT budgeting processes.
A. Assess actual spending
B. Estimate business opportunity costs
C. Set the functional budget
D. Set the strategic budget
R. None of the above
12) Choose the phrase below that best completes this sentence:
_________ is a solution to the budgeting problems created by the conflict between the need for
genuinely integrated initiatives and traditionally siloed budgets.
A. Adoption of enterprise funding models
B. Business-based budgeting
C. Decentralized budgeting
D. Federated budgeting
E. None of the above
Type: MR
13) Select all the reasons below that are not a current IT budgeting process problem.
A. It discourages taking responsibility for the performance
B. It is disconnected from business objectives
C. It is slow and expensive
D. It stifles innovation
E. It takes too long
F. None of the above
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Type: MR
14) Select all the activities below that are not within the corporate budgeting process.
A. Align business and IT strategy
B. Establish corporate fiscal policy
C. Establish strategic goals
D. Prioritize IT initiatives
E. Set IT spending levels
F. None of the above
Type: MR
15) Select all the external factors below that can influence the IT budget
A. Affordability
B. Diversification of products and services
C. Growth
D. Number of competitors
E. Product availability
F. None of the above
Type: MR
16) Select all the internal factors below that can influence the IT budget
A. Affordability
B. Diversification of products and services
C. Growth
D. Number of competitors
E. Product availability
F. None of the above
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Type: MR
17) Select all the items below that are best practices for making budgeting easier and effective.
A. Adopt enterprise funding models
B. Adopt rolling budget cycles
C. Appoint an IT finance specialist
D. IT and business department manager collaboration
E. Segmentation: IT creates the innovation budget, the CFO develops the operating budget
F. None of the above
HARD
18) Choose the phrase below that best completes this sentence:
When creating the IT budget, IT managers will separate operations from innovation; they must also
___________ new project development.
A. align maintenance and support with
B. allocate maintenance and support from
C. prioritize maintenance, support, and
D. separate maintenance and support from
E. None of the above
Type: MT
19) Match each word below with a lettered blank in the following sentence:
An IT budget is both an (A) tool for (B) how money will be spent and a (C) tool for helping (D) leaders
understand how IT expenses (E) to business value
a. Management = C
b. Governance = None
c. controlling = B
d. contribute = E
e. business = D
f. accounting = A
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20) Type: MT
Match each budgeting concept below with its definition
a. Capital Expenditure = A large expense that is spread over several years
b. Cost Allocation = The process of distributing IT costs to others’ budgets
c. Fiscal IT Budget = The CFO’s spending plan
d. Functional IT Budget = The IT manager’s spending plan
e. Operating Expense = An annual cost of running the business
f. Strategic Investment = The annual cost of initiatives to deliver new business value
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CRITICAL THINKING
Type: E
21) You joined your organization two months ago as its CIO, and you need to provide next year’s IT
budget in 90-days. You have two goals: support your IT strategy and have the budget reflect a net
expense that is as low as possible. Describe how the budget can achieve the first goal and the budgeting
approach that you will use to accomplish the second goal.
NOTES:
The essay should discuss the ideas below from the chapter.
A- Supporting the IT strategy:
a - Connects the business strategy and plans with the enabling IT plans
b - Forces a conversation between IT and the business
c - Provides the business context and link between IT expenses and business performance
d - Provides signals about how IT supports the overall strategy and delivers business value
e - Change the business’s focus from IT as a cost center to IT as a resource to help achieve
strategic goals
B- Low net expense
a - Capitalization:
i. Limited by tax policies and organization policies
ii. Corporate Financial Strategy determines what can be capitalized (set by CFO)
b - Cost Allocation: the process of allocating the cost of the services IT provides to others’
budgets.
i. IT can be viewed as a corporate expense, business unit expense, or a
combination
ii. Operating expenses are usually allocated to business units’ operating budget
iii. Strategic expenses are usually allocated based on which business unit will
benefit from the investment.
iv. Multi-business unit participation can result in artificial budget allocations and
dysfunctional behavior.
v. Can lead to operational inefficiencies
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Type: E
22) Last year, the IT leadership team struggled to create the annual budget. The CIO has tasked you with
working with the IT leaders to recommend improvements to the IT budgeting process. Provide three
improvements. Explain the issue each improvement addresses and the rationale for the suggested
improvement.
NOTES:
The essay should discuss the ideas below from the chapter.
The six practices to improve the budgeting process are below.
A- Appoint an IT finance specialist: Financial specialists can help IT managers understand their costs
and drivers in new ways. Within operations, they can assist with cost and value analysis of
services and infrastructure and manage the translation process between the functional IT
budget and the fiscal IT budget.
B- Use budgeting tools and methodologies: Budgeting tools and methods enable analyzing budget
data for many different stakeholders. There are gaps in the budgeting process when these tools
and techniques are not used.
C- Separate operations from innovation: Most IT managers mentally separate operations from
innovation. However, maintenance and support are often mixed up with new project
development, especially when IT organizations are aligned with and funded by the business
units.
D- Adopt enterprise funding models: It is unusual to find organizations that provide corporate
funding for enterprisewide strategic IT initiatives; however, this is needed. The conflict between
the need for genuinely integrated initiatives and traditionally siloed budgets frequently stymies
innovation, frustrates behavior designed for the common good, and discourages accountability
for results.
E- Adopt rolling budget cycles: IT plans and budgets need attention more frequently than once a
year. A quarterly review and update of an eighteen-month rolling plan appears to be a more
effective way of budgeting, especially for new project development.
F- Make budgeting Agile: Transition the existing budgeting process to one that is more iterativebased and Agile-based. The budgeting process uses rolling budget cycles and budget
conditionality (i.e., attaching resources to success criteria).
ANSWERS:
1. C
2. A
3. A
4. B
5. A, C
6. B, C
7. B
8. B
9. B, D
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10. D
11. A, C
12. A
13. F
14. A, D
15. B, D
16. A, C
17. A, B, C
18. D
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Chapter 8, Cyber Risk and the Enterprise
QUESTIONS:
EASY
1) Is this idea true or false:
Today, IT risk management is a low-key activity focused on delivering projects and keeping applications
up and running.
A. True
B. False
2) Choose the word below that best completes this sentence:
Hazards such as disasters, pandemics, and geopolitical upheavals are examples of the source for
__________ risks.
A. Acceptable
B. Avoided
C. External
D. Internal
E. Sustainable
F. None of the above
3) Is this idea true or false:
It is sufficient to focus on cyber-security to cover an organization's overall cyber risk.
A. True
B. False
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4) Is this idea true or false:
Information security and cyber risk are IT issues.
A. True
B. False
5) Choose the phrase below that best completes this sentence:
Risk ________ is the level of risk acceptable in certain areas.
A. Analysis
B. Appetite
C. Impact
D. Likelihood
E. Rubric
F. None of the above
6) Is this idea true or false:
Generally, risk managers believe that cyber risk is not their responsibility.
A. True
B. False
7) Is this idea true or false:
As a business's boundaries expand to include third parties, cyber risk must also include the third parties.
A. TRUE
B. FALSE
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MEDIUM
Type: MR
8) Select all the areas below that complete this sentence:
Cyber risk is an issue that exists at the intersection of ___________.
A. Business risk
B. Competitive environment
C. Globalization
D. Regulation
E. Technology
F. None of the above
Type: MR
9) Select all the areas below that are not sources of technology risk.
A. Accessibility
B. Change Management
C. Human Resources
D. Information Security
E. Privacy
F. None of the above
Type: MR
10) Select all the areas below that are not involved in cyber risk management
A. Dealing with an attack resulting in a loss of a service
B. Prevention in losses from business-technology interactions
C. Recovery from losses from business-technology interactions
D. Responding to cascading loss consequences beyond the organization
E. None of the above
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11) Choose the phrase below that best completes this sentence:
_________ is responsible for establishing risk management policies and standards.
A. The Insurance Risk Analyst
B. The CEO
C. The Board of Directors
E. IT Risk Management
E. Enterprise Risk Management
F. None of the above
Type: MR
12) Select all the risk categories below that overlap with cyber risk
A. Competitive
B. Enterprise
C. Implementation
D. Information security
E. Insurance
F. None of the above
Type: MR
13) Select all the reasons below that are not a benefit of developing an integrated risk framework.
A. Addresses the changing nature of risk
B. Enables business cyber risk decision-making
C. Ensures budgeting considerations for risk
D. Prepares the organization for security risk audits
E. Provides a common language to subject matter experts
F. None of the above
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Type: MR
14) Select all the practices below that are not key principles of a cyber risk management framework.
A. Business risk focus
B. Cross-functional representation
C. Establishing risk tolerance
D. Governance
E. Standardized risk assessment categories
F. None of the above
Type: MR
15) Select all the cyber risk management challenges below that the focus group did not identify.
A. Complicated framework development
B. Data Governance
C. Investment in risk management
D. New tools and approaches
E. Risk management transparency
F. None of the above
Type: MR
16) Select all the goals below for a cyber risk management framework.
A. Build trust and resiliency within the organization
B. Create clear accountabilities
C. Ensure operational safety
D. Ensure risk-awareness is incorporated in third-party relationships
E. Identify risk experts for decision-making
F. None of the above
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Type: MR
17) Select all the practices below that the focus group did not recommend to improve cyber risk
management.
A. Align enterprise and IT risk management
B. Change the conversation about cyber risk
C. Communicate about cyber risk management investments
D. Include cyber risk avoidance in vendor contracts
E. Prioritize data governance and management
F. None of the above
Type: MR
18) Select all the factors below that are causing organizations to have a greater awareness of cyber risk.
A. Centrality of technology
B. Changing vendor expectations
C. Growing customer technology knowledge
D. Nature of risk
E. Reach of technology
F. None of the above
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HARD
Type: MT
19) Match each word below with a lettered blank in the following sentence:
(A) risks are (B) difficult to (C) and prevent than (D) risks; while an organization can (E), manage, and
recover from these incidents, it cannot (F) these risks.
a. cyber = A
b. eliminate = F
c. information security = D
d. less = None
e. manage = C
f. mitigate = E
g. more = B
Type: MT
20) Match each cyber risk management problem below with the appropriate description of the cyber
risk problem.
Investment in risk management = It is challenging to show the absence of a cyber-event on a balance
sheet.
a. A policing mentality = Cyber risks are framed as the opposite of growth opportunities rather than
enabling organizations to take the right risks.
b. Data Governance = Cyber risk practices do not include integrated information classification nor
governance.
c. Education and awareness = Business leaders have a limited understanding of cyber risks' strategic
nature and scope.
d. Gaps, rapid change, and blind spots = There is duplication of effort, unnecessarily restrictive controls,
and blind spots due to the rapidly evolving nature of cyber risk.
e. New risk management tools and approaches = Instead of expecting technology to eliminate cyber risk,
use a layered approach.
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CRITICAL THINKING
Type: E
21) Your organization's CISO has established a rigorous security risk program. However, senior
leadership is growing concerned that the organization's growing technology dependency is creating
unseen risks. You have been asked to propose a cyber risk management framework. Select three guiding
principles for the framework. Explain each principle and why you selected it.
NOTES:
The essay should discuss the ideas below from the chapter.
The eight key principles to include in a cyber risk management framework are below.
A- A business risk focus: Wherever possible, business leaders should understand the nature and
magnitude of cyber risks to make informed decisions.
B- A data focus: We need to move from protecting infrastructure to protecting our data.
C- Prioritization: There are many cyber risk sources and limited funding sources, so prioritization is
essential.
D- Cross-functional representation: includes those responsible for physical and cyber-physical
systems to evaluate cyber risk and create a management plan.
E- Incorporating external and internal risks: All sources of risks – external systems, endpoints,
connected physical objects, relationships, and interactions – must be considered.
F- Cyber risk education: All business decision-makers must be educated to address current
confusion and support an effective cyber risk management program.
G- Incorporation of third parties: Addressing cyber risk with third parties is about 25% of the job.
The framework must integrate these risks with the organization's goals.
H- Governance: The incorporation of business leaders, particularly shadow IT leaders, and IT in
decision-making related to cyber risk.
Type: E
22) While your organization has not experienced a significant cyber risk incident, its leadership wants to
ensure that its current enterprise risk management is sufficient. You have been asked to review the
enterprise risk management. Identify three vital problem areas and describe three steps to improve
cyber risk management.
NOTES:
The essay should discuss the ideas below from the chapter.
A - The six cyber risk problems are below.
a - Investment in risk management:
i. Not investing for effective cyber risk management
ii. The absence of a cyber-event or a lesser impact of an event that might occur is
difficult to show on a balance sheet
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iii. Cyber risk management should be viewed not as a cost but as an investment
that enables the success of strategic growth and performance initiatives
b - A policing mentality:
i. IT and other areas charged with cyber risk management can sometimes find
themselves telling the business what it can and cannot do
ii. Cyber risk issues tend to clash with strategies promoting innovation or
productivity
iii. The problem is framing cyber risks as the opposite of growth opportunities
instead of approaching them as a means of enabling organizations to take the
right risks
c - Education and Awareness:
i. Because cyber risk management is complex, many business leaders tend to
delegate it to their CISOs
ii. CISOs tend to address just technical and compliance risk
iii. Change the conversations about cyber risk to ensure that business leaders
understand the strategic nature and scope of cyber risks
iv. Ensure senior management is accountable for its cyber risk decisions
d - Data Governance:
i. An agreement that an organization's data must be protected
ii. Little integration of information classification and data governance effectively
into the cyber risk management practices
iii. Implementing effective data governance practices increases confidence about
sharing information
e - New risk management tools and approaches:
i. Many in IT believe that cyber risk management challenges will soon be
eliminated or managed through technical tools
ii. Need for a layered approach to cyber risk management that incorporates
multiple, coordinated technology, control, planning, and human layers
f - Gaps, rapid change, and blind spots:
i. A significant challenge is the rapidly evolving nature of cyber risk
ii. Duplication of effort, unnecessarily restrictive controls in some areas, and some
major organizational blind spots
iii. Shadow IT is a particular problem
iv. Rationalize controls around business needs and eliminate a piecemeal approach
to cyber risk management
v. Assessing third party relationships are also critical
B - The steps to improve cyber risk management are below.
a - Align enterprise and IT risk management: Helps to prevent gaps and overlaps in
practices and promote the development of a common risk framework and language.
b - Change the conversation about cyber risk: Realistic and open communication is essential
to creating greater cyber risk awareness in organizations, which should be in the context
of value, business outcomes, and risk appetite, and associated with a particular strategic
business objective.
c - Communicate about cyber risk management investments: Boards need assurances that
investments in cyber risk management are effective. Therefore, in addition to linking
these investments to business outcomes, managers should assess cyber risk in financial
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terms and develop an investment strategy that reflects an organization's risk profile and
balances investments across prevention, detection, and response practices.
d - Prioritize data governance and management: A significant component of cyber risk
management involves addressing the loss or misuse of data; however, data governance
is limited. Record retention criteria and integration with structured and unstructured
data should also be important data governance issues. Finally, important information
flows should be modeled and maintained.
e - Develop holistic interdependency models: develop more holistic models that incorporate
interdependencies, partners, customers and suppliers, and information flows so that all
stakeholders understand the potential scope, scenarios, and triggers for cyber-events
and facilitate a common approach to their mitigation.
f - Include people as part of the solution: People can become part of the cyber risk solution.
They can help risk managers better understand vulnerabilities and the possible
consequences in different business activities. It can also shape behavior and motivate
staff to do the right thing.
g - Technical Mitigation: Important ways technology can be used to mitigate cyber risk
include 1) increase the retirement of legacy systems and 2) develop libraries of whitesourced apps.
h - Reserve the right to audit vendors: Audits can be very effective ways to assess and
mitigate cyber risk.
ANSWERS:
1. A
2. C
3. B
4. B
5. B
6. A
7. A
8. A, D, E
9. F
10. A
11. E
12. B, D
13. C, D
14. C, E
15. A, E
16. A, B
17. D
18. B, C
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Chapter 9, Building IT-Business Partnerships
QUESTIONS:
EASY
1) Is this idea true or false:
A lack of trust is a consequence of a lack of clarity around expectations and accountabilities.
A. TRUE
B. FALSE
2) Is this idea true or false:
An IT-business partnership can flourish without senior management participation.
A. TRUE
B. FALSE
3) Is this idea true or false:
By operating IT like-a-business, the business’s expectations of IT are met.
A. TRUE
B. FALSE
4) Is this idea true or false:
Being technically competent is sufficient to have credibility with the business.
A. TRUE
B. FALSE
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5) Is this idea true or false:
The most effective way to build trust is through effective governance
A. TRUE
B. FALSE
MEDIUM
Type: MR
6) Select all the statements below that do not describe the traditional business-IT partnership.
A. Ill will
B. Misunderstanding
C. Supportive
D. Symbiotic
E. None of the above
Type: MR
7) Select all the generic roles below that are not assumed by IT.
A. Architecture builder
B. Customer support
C. Project coordinator
D. Strategy builder
D. Technological leader
F. None of the above
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Type: MR
8) Select all the outcomes below of a complex relationship.
A. Deferred decision-making
B. Difficult communicating
C. Excessive meetings
D. Unclear accountabilities
E. Unclear expectations
F. None of the above
Type: MR
9) Select all the assumptions below that business does not make about IT.
A. Business and IT are equal partners
B. Business can do IT better
C. IT is a necessary evil
D. IT is a support, not a partner
E. IT rules
F. None of the above
10) Choose the term below that best completes this sentence:
Problems arise when the ___________ espoused by IT conflict with those of the organization or a part of
the organization.
A. Assumptions and values
B. Expectations and estimates
C. Governance
D. Priorities and preferences
E. Strategy and vision
F. None of the above
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Type: MR
11) Select all the characteristics below that are not part of an Ideal IT-Business partnership.
A. A blurred line between business and IT
B. Business assumptions of IT tend to cluster into patterns
C. Mutual recognition of IT value
D. The business is often disengaged from IT work
E. The partnership varies by individual, process, and function at multiple levels
F. Trust between the two groups
G. None of the above
Type: MR
12) Select all the characteristics below that are not part of the real IT-Business partnership.
A. A blurred line between business and IT
B. Business assumptions of IT tend to cluster into patterns
C. Mutual recognition of IT value
D. The business is often disengaged from IT work
E. The partnership varies by individual, process, and function at multiple levels
F. Trust between the two groups
G. None of the above
Type: MR
13) Select all the methods below in which senior management enables a successful IT-business
partnership.
A. Authorizing managers to engage in the IT-business partnership
B. Incentivizing participation in the IT-business partnership
C. Modeling the expected behavior
D. Outlining the process to produce results
E. Setting the tone and direction
F. None of the above
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Type: MR
14) Select all the items below that are not part of the hierarchy of business needs of IT to deliver real
business value.
A. Competence
B. Credibility
C. Openness
D. Relationship
E. Technical capability
F. None of the above
15) Choose the phrase below that best completes this sentence:
Keeping agreements and acting with integrity, honesty, and openness are essential for maintaining
_____________.
A. relationships
B. partnerships
C. credibility
D. contracts
E. None of the above
16) Choose the phrase below that best completes this sentence:
_____________ is essential for both superior performance and for developing the collaborative
relationships that lead to success.
A. Collaboration
B. Competence
C. Partnering
D. Professionalism
E. Trust
F. None of the above
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HARD
Type: MT
17) Match each term below with its definition.
a. Business-IT partnership = A multifaceted interaction of people and processes
b. Inter-personal relationship = Internally within and across organizational units; externally with
vendors, suppliers, customers
c. Partnership = A long-term commitment towards shared goals
d. Relationship = Primarily between individuals in the fulfillment of immediate needs
Type: MT
18) Match each word below with a lettered blank in the following sentence:
A (A) IT-business (B) is one where realistic expectations are clearly articulated and communicated
through both (C) and procedural interactions and where both (D) recognize that all facets of this (E) are
important to the (F) delivery of IT (G).
a. groups = D
b. individual = C
c. partnership = B
d. projects = None
e. relationship = E
f. strong = A
g. successful = F
h. value =G
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Type: MT
19) Match the feature of a strong IT-business partnership below with its description.
a. Collaborative mindset = People with knowledge of the business and people with knowledge of the
technology
b. Governance framework = None
c. Individual relationships = The foundation of an IT-business partnership
d. Senior management = Set the tone and direction for the IT-business partnership
e. Serendipity = The juxtaposition of a business need with a technological capability
Type: MT
20) Match each competency below with its description.
a. Business knowledge = Understanding the business’ goals, context, language, and processes
b. Execution = Operationalizing the business understanding and developing a vision
c. Expertise = Applying knowledge to a particular business situation
d. Financial Awareness = Acting in accordance with how value is delivered
e. Timeliness = None
Type: MT
21) Match each dimension of interpersonal interactions below with its description.
a. Facilitation = None
b. Management of Politics and Conflict = Devekoping ways to effectively address conflict and to deliver
creative solutions
c. Non-Technical Communication = The ability to use business language
d. Professionalism = The unarticulated set of working behaviors, attitudes, and expectation that keeps
teams of diverse individuals working towards the same goal
e. Social Skills = The bonds that build trust and mutual understanding between diverse groups
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CRITICAL THINKING
Type: E
22) The leadership team of your organization has decided to ensure that IT delivers business value.
Rather than focusing on project delivery, the leadership team wants to improve the working relationship
between business and IT. You have been asked to identify the characteristics of the current IT-business
partnership, the ideal characteristics of the partnership, and what is necessary to realize the ideal ITbusiness partnership. Describe and justify the three characteristics of the IT-business Partnership in
reality that you think are the most important to address, three ideal characteristics that you think are
important to achieve, and the two most vital features of a strong IT-business partnership.
NOTES:
The essay should discuss the ideas below from the chapter.
A- The eight characteristics of the IT-Business Partnership, in Reality, are below.
a - IT has to keep proving itself
b - The business is often disengaged from IT work
c - Business expectations of IT change continually
d - The partnership varies by individual, process, and function at multiple levels
e - Clarity is often lacking around expectations and accountabilities
f - Business assumptions of IT tend to cluster into patterns
g - There are many ‘disconnects’ between the two groups
h - Input from IT is not actively solicited for strategic decisions
B- The seven characteristics of the Ideal IT-Business Partnership are below.
a - Clearly defined expectations, governance models, and accountabilities
b - Trust between the two groups
c - Articulation and incorporation of corporate and client values and priorities in all IT work
d - A blurred line between business and IT (i.e., no ‘us vs. them’)
e - It is dedicated to business success
f - IT is a trusted advisor to the business
g - Mutual recognition of IT value
C- The four features of strong partnerships are below.
a - Senior management: These managers, whether IT or business, set the tone and
direction for the IT-business partnership, outline the process to produce results, and
model the expected behavior. Without this level of partnership, it is highly unlikely that
successful IT-business partnerships will flourish elsewhere within the organization.
b - Individual relationships: Good individual relationships are positive personal experiences,
but they can produce significant benefits for the organization over time. A single
relationship is likely to shape a businessperson’s perception of IT.
c - Serendipity: Sharing your ideas with the right person at the right time can spark creative
juices. It is often a matter of the juxtaposition of a business need with a technological
capability; separately, they amount to little, but together a business solution is born.
The lesson here is to encourage personal interactions between IT and the business at
many levels.
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d - A collaborative mindset: As good as it is, technology by itself does not produce results.
People with knowledge of the business collaborate with people with knowledge of the
technology who bring about beneficial change, whether serendipitous or planned.
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Type: E
23) The organization’s senior leadership spent the past year focusing on improving the IT-business
partnership. However, this is the start of the organization’s journey, and to ensure a strong partnership,
there are business needs that must be nurtured. Choose two such business needs that you think are
vital to making the partnership strong. Provide your justification for selecting each business need,
explain how the need contributes to a strong partnership, and, where appropriate, provide the
characteristics of the need.
NOTES:
The essay should discuss the ideas below from the chapter.
A - Competence: The competencies required from all It professionals are below.
a - Business knowledge: understand the business’ goals, context, language, and processes
and are working to create synergies between IT and business activities.
b - Expertise: having up-to-date knowledge, supporting a technical recommendation,
applying expertise to a particular business situation, and offering wise advice on risks,
options, and trade-offs, as well as the ability to bring useful new ideas to the business.
c - Financial Awareness: how IT delivers value, and the ability to act in accordance with this
value is a rare and prized skill.
d - Execution: It is not enough to understand the business and develop a vision; IT must also
operationalize it.
B - Credibility: the belief that others can be counted on to do what they say they will do.
C - Interaction: the development of mutual understanding, interests, and expectations, which are
formed and shaped during a wide variety of interpersonal interactions/
a - Professionalism: the unarticulated set of working behaviors, attitudes, and expectations
that serves as the glue which keeps teams of diverse individuals working together
towards the same goal.
b - Non-Technical Communication: the inability to communicate clearly with the business
on its terms can undermine the business-IT relationship.
c - Social Skills: Social bonds help diverse groups build trust and develop a common
language; both are essential to a strong partnership. Socialization also helps build
mutual understanding, enabling all parties to get comfortable and uncover hidden
assumptions, which may become obstacles to success. It also develops empathy and
facilitates problem-solving.
d - Management of Politics and Conflict: The IT-business partnership can be turbulent, and
IT personnel must be skilled in dealing with the conflicts and challenges involved. IT
functions, and personnel needs ways to address conflict and use it to deliver creative
solutions effectively.
D - Trust: Effective interpersonal interactions, a belief that the job at hand will get done and done
right, and demonstrated business and technical competence are required to facilitate trust that
IT can be a successful partnership with the business. However, even if these are in place,
proactive measures are still needed to build trust between the two groups.
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ANSWERS:
1. A
2. B
3. B
4. B
5. A
6. C
7. B, D
8. A, C
9. F
10. A
11. A, C, F
12. B, D, E
13. C, D, E
14. C, E
15. C
16. E
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Chapter 10, What to Do about Shadow-IT?
QUESTIONS:
EASY
1) Is this idea true or false:
Shadow-IT is a growing gap between the organization-sanctioned IT and what employees are using.
A. TRUE
B. FALSE
Type: MR
2) Select all the definitions below that do not describe shadow-IT.
A. IT is used for work tasks outside of IT policies, rules, guidelines, standards, and procedures.
B. IT-related expenses in organizations for anything other than the IT provided by the enterprise.
C. Solutions that grew out of End User Computing tools and applications adapted for other purposes and
had drifted out of IT’s control.
D. The autonomous development, purchase, implementation, and use of various technology by
departments other than IT.
E. The business’ use of hardware, software, systems, solutions, or services for work without the explicit
approval or knowledge of IT.
F. None of the above
3) Is this idea true or false:
Much of Shadow-IT is for the rapid development of front-end software.
A. TRUE
B. FALSE
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4) Is this idea true or false:
It is estimated that one-third of successful attacks on enterprises will be on data located in shadow-IT
resources.
A. TRUE
B. FALSE
5) Is this idea true or false:
Technology osmosing outwards from IT is an evolutionary phase in organizational change.
A. TRUE
B. FALSE
6) Is this idea true or false:
Shadow-IT is a phenomenon from the early adoption of cloud-based solutions, and IT will evolve to
regain control over all IT in an organization.
A. TRUE
B. FALSE
7) Is this idea true or false:
Shadow-IT can result in the loss of an enterprise strategic IT roadmap.
A. TRUE
B. FALSE
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MEDIUM
Type: MR
8) Select all the reasons below for the growth of shadow-IT.
A. Due to pressures of digital transformation
B. Increasing small-scale development using sanctioned tools
C. Lower perceived cost
D. The consumerization of business applications
E. None of the above
9) Choose the phrase below that best completes this sentence:
Democratization of IT is a natural evolution; therefore, Shadow-IT should be called ____________.
A. Agile development
B. Citizen development
C. Localized development
D. Staff development
E. None of the above
Type: MR
10) Select all the items below that are the risks of shadow-IT.
A. Brings customer requirements front and center
B. Hidden costs
C. Inefficiencies in technology procurement
D. Single point of knowledge
E. Solves the little stuff
F. Unlocks opportunities for a longer-term strategy
G. None of the above
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Type: MR
11) Select all the items below that the benefits of shadow-IT.
A. Brings customer requirements front and center
B. Hidden costs
C. Inefficiencies in technology procurement
D. Single point of knowledge
E. Solves the little stuff
F. Unlocks opportunities for a longer-term strategy
G. None of the above
Type: MR
12) Select all the reasons below that IT argues shadow-IT reduces business value.
A. Data Availability
B. Data timeliness
C. Duplicate data
D. Information silos
E. None of the above
Type: MR
13) Select all the overarching principles below for governing shadow-IT.
A. All shadow-IT is subject to oversight
B. All shadow-IT must be identified
C. All shadow-IT must fit with the IT roadmap
D. All shadow-IT must provide unique capabilities
E. None of the above
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14) Choose the phrase below that best completes this sentence:
Shadow-IT becomes Business Technology (BT) when rouge IT becomes __________.
A. deployed
B. documented
C. operational
D. supported
E. visible
F. None of the above
Type: MR
15) Select all the specialized skills below that IT will not need to facilitate business technology.
A. Data stewardship
B. DevOps
C. Experimentation
D. Managing vendors
E. Solution architecture
F. None of the above
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HARD
Type: MT
16) Match each of the types of Shadow-IT below with its definition.
a. Bricolage = Constructing larger-scale solutions that bypass formal systems using whatever technology
is available.
b. End-user Computing = Using enterprise-approved tools and systems to develop localized solutions
that may go well beyond their originally intended purpose.
c. Personal IT = Using personal technology developed for consumers for business purposes.
d. Software-as-a-Service = Purchasing standard software from the cloud that promises them flexibility
and productivity and the ability to facilitate user-driven innovation
e. Third Party Access = Authorizing access to a third party to connect to an organization’s network to use
a sanctioned service.
f. Undisclosed = None
g. Unintended Use = Succumbing to social pressure to use unapproved tools that others are using for
communication or to share knowledge.
h. Workarounds = Adapting an existing work system to circumvent constraints imposed by the original
system design.
Type: MT
17) Match each of the reasons for using Shadow-IT below with its explanation.
a. Competitive pressure = None
b. Ease of Use = Downloading and configuring powerful systems without the assistance of IT.
c. IT processes and Constraints = Perceiving IT as not responsive enough and lacking necessary tools and
capabilities.
d. IT’s inability to relate to the business = Growing demand for IT services results in a greater decisionmaking gap.
e. Lower perceived cost and turnaround = Trusting an external provider because of perceiving IT as
inefficient and ineffective.
f. Necessity = Being under pressure to transform and innovate quicker than IT responds.
g. Rising Expectations = Technically capable, digitally adept younger workers joining the business.
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Type: MT
18) Match each word below with a lettered blank in the following sentence:
Shadow-IT is (A) as an (B) source of (C) that can create prototypes for future, (D) IT (E).
a. approved = D
b. important = B
c. innovation = C
d. proposed = None
e. recognized = A
f. solutions = E
Type: MT
19) Match each governance practice below with its explanation.
a. Assign IT resources = Ensure shadow-IT project work within IT guidelines, standards, and policies.
b. Decompose IT service offerings = Enable business users to leverage valuable IT services.
c. Define clear accountabilities = Enable value and reduce risk.
d. Educate all employees = Set expectations and understand the implications of using shadow-IT
e. Establish review boards = None
f. Provide choice within guidelines = Create an approved list of vendors and suppliers.
g. Transform shadow-IT = Create citizen development programs that are fostered and managed by IT.
h. Update policies and guidelines = Establish guide rails and touchpoints to manage and direct shadowIT.
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Type: MT
20) Match each of the ways below for IT to integrate and leverage shadow-IT with the focus group’s
explanation
a. IT needs a new mandate = closely link IT and BT together, treating them as one comprehensive set of
capabilities.
b. IT needs new skills = hybrid career paths that combine business and IT capabilities.
c. IT needs to devote resources to BT = requires the thoughtful and intentional transformation of both IT
and BT functions.
d. IT needs to lead business initiatives = None
e. Partner more effectively BT initiatives = Take advantage of the business’s skills and specialized
knowledge to create more innovative and relevant technology.
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CRITICAL THINKING
Type: E
21) The CIO has embarked on reducing the organization’s risk due to shadow-IT by introducing shadowIT governance. You have been asked to create a plan for developing the shadow-IT framework. Explain
the two overarching principles that should guide shadow-IT governance. Provide three practices that
you think are important to include in the framework. Give your justification for including each practice
and describe how the practice will reduce the organization’s risk from shadow-IT.
NOTES:
The essay should discuss the ideas below from the chapter.
A- Below are the overarching principles for shadow-IT governance.
a - All shadow IT must be identified: Many organizations take a carrot-and-stick approach to
governing shadow-IT. The carrot supports business technology, a greater partnership
with business, and simplified review processes. The stick is formal detection of what is
being done through tools to identify undeclared technology, encrypt data, prohibit
expensing of BT, internal audits, and locking down systems.
b - All shadow-IT is subject to oversight: Providing shadow IT with oversight does not mean
banning it altogether, which would drive it further into the shadows, but embracing it as
the right way to protect the organization and facilitate innovation.
B- The shadow-IT practices are below.
a - Tightly control data access and what can be done with it
b - Provide choice within guidelines
c - Define clear accountabilities
d - Update policies and guidelines for shadow IT
e - Educate all employees
f - Maintain ongoing communication
g - Transform shadow IT into citizen development programs
h - Assign IT resources to help shadow IT projects
i - Decompose IT service offerings
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Type: E
22) The CIO has asked you for suggestions on how the IT organization can change to integrate and
leverage the organization’s shadow-IT appropriately. Describe two ways that IT can change. Explain why
you think these are the best approaches.
NOTES:
The essay should discuss the ideas below from the chapter.
The four ways for IT to change to integrate and leverage shadow-IT are below.
A - IT must partner more effectively with the business-on-business technology initiatives: This is a
way for IT to take advantage of the business’s skills and specialized knowledge to create more
innovative and relevant technology.
B - IT needs a new mandate: This new role as a consultant, advisor, and partner to the business
should come within the context of an environment which IT must develop to support, facilitate,
measure, govern, and guide shadow IT work. In this environment, IT will more closely link IT and
BT (business technology) together, treating them as one comprehensive set of capabilities that
provides a full range of value and better facilitates easier transitions of applications between
business and traditional IT.
C - IT needs new skills: Many of the new skills will need to be mirrored in the business. To achieve
this, IT must support formal training programs for its own and business staff to develop
advanced digital skills and create hybrid career paths that combine business and IT skills. IT
needs to improve its consulting skills to enable it to undertake its new partnering roles. It will
need to develop specialized skills in IT services to facilitate BT, particularly those for managing
vendors, data stewardship and protection, agile development and DevOps, and supporting
prototype development and experimentation. Also, IT will likely cede expertise in user
experience, data analytics, analytics tools, and the use of highly specialized hardware and
software to the business community.
D - IT needs to devote resources to BT: Embracing and leveraging shadow IT requires the thoughtful
and intentional transformation of both IT and BT functions, but it will not get far without
resources and senior management support. The CIO will likely take the first steps.
ANSWERS:
1. A
2. F
3. B
4. A
5. B
6. B
7. A
8. A, C, D
9. B
10. B, C, D
11. A, E, F
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12. C, D
13. A, B
14. E
15. E
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Chapter 11, Developing Thought Leaders in IT
QUESTIONS:
EASY
1) Choose the term below that best completes this sentence:
A ____________ is an authority in a specialized field whose expertise is sought and often rewarded.
A. Expert
B. Commentator
C. Thought Leader
D. CIO
E. None of the above
2) Is this idea true or false:
In the context of business and IT, management of emerging technologies and thought leadership are
essentially the same thing.
A. True
B. False
3) Is this idea true or false:
Improving thought leadership in IT involves only accessing and utilizing people's ideas.
A. True
B. False
4) Is this idea true or false:
Thought leadership can be fostered both at an individual and a group level.
A. True
B. False
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5) Is this idea true or false:
Rather than speaking about new or emerging technologies, organizations want insights into how best to
apply technology in the marketplace.
A. True
B. False
6) Is this idea true or false:
Effective thought leaders can be from anywhere inside or outside the organization.
A. True
B. False
7) Is this idea true or false:
Creating a positive environment where thoughts and leadership can flourish is the biggest challenge for
IT management.
A. True
B. False
MEDIUM
Type: MR
8) Select all the features below that distinguish a thought leader.
A. Delivers business impact
B. Identifies applications of technology
C. Sparks innovation with new ideas
D. Speaks about new possibilities
E. None of the above
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Type: MR
9) Select all the key reasons below for why organizations must not rely on external providers for thought
leadership.
A. They know the market and competitors
B. They are too expensive
C. They could lead the organization to a self-affirming solution
D. They are oblivious to the internal context of the organization
E. None of the above
10) Choose the term below that best completes this sentence:
People follow thought leaders because they believe in what they are selling because of their ______.
A. Competence
B. Expertise
C. Credibility
D. Knowledge
E. None of the above
11) Choose the term below that best completes this sentence:
An example of _____________ is when a thought leader connects the dots between their idea and other
people's ideas.
A. Integration
B. Alignment
C. Fit
D. Synthesis
E. None of the above
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Type: MR
12) Select all the statements below that are not aspects of thought leadership in IT.
A. A central part of the innovation process
B. Challenging current ways of thinking and working
C. Leading groups to see value
D. Seeking new ideas, technologies, and ways of putting processes and products together
E. None of the above
Type: MR
13) Select all the items below that are NOT a type of thought leader.
A. Functional thought leaders
B. Natural thought leaders
C. One-hit wonders
D. Learning thought leaders
E. None of the above
14) Choose the term below that best completes this sentence:
The first step to develop thought leadership is to harvest ___________.
A. People
B. Ideas
C. Innovations
D. Emerging Technologies
E. None of the above
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15) Choose the term below that best completes this sentence:
Use of __________ teams create opportunities to build relationships and stimulate ideas
A. functional
B. small
C. virtual
D. multidisciplinary
E. None of the above
Type: MR
16) Select all the reasons below that cause people to not participate in idea-generating activities.
A. Membership in an elite innovation group
B. Not seeing ideas being used
C. Peer pressure
D. Time commitment
E. None of the above
Type: MR
17) Select all the IT roles where thought leaders might be working within IT.
A. Database Administrators
B. Enterprise Architects
C. Helpdesk Specialist
D. Relationship Managers
E. None of the above
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Type: MR
18) Select all the practices below that foster thought leadership.
A. Assign to long-time successful teams with prominent leaders
B. Create a positive environment
C. Ensure sufficient time
D. Focus on potential individual leaders
E. Harvest ideas
F. None of the above
HARD
Type: MT
19) Match each word below with its description
a. Ideation = the generation of innovative ideas
b. Innovation = the process whereby a company creates new things that deliver value
c. Managing emerging technology = Trying to make use of technology
d. Thought leadership = Looking for inflection points
Type: MT
20) Match each thought leader characteristic below with its description.
a. Communicator = Package ideas effectively and simplify complex situations.
b. Consultant = Helps others think through ideas and looks for ways to add value.
c. Courageous = Believes in his idea and challenges others or disrupts established ways if necessary.
d. Idea-Generator = Forward-thinking and adaptive, offering intellectually attractive ideas.
e. Persistent = Understands that unconventional ideas are rarely if ever, accepted immediately.
f. Self-Motivated = Works for intrinsic value and the opportunity to make a bigger difference.
g. Technology Expertise = None
h. Visionary = A natural curiosity and insight into a situation and takes an idea to the next level.
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CRITICAL THINKING
Type: E
21) The CIO is considering a program to foster thought leaders within the IT organization. She asks you
to 1) define what is meant by a thought leader and 2) outline three distinguishing features of an IT
thought leader.
NOTES:
The essay should discuss the ideas below from the chapter.
A- The definitions of a thought leader are below.
a - A thought leader, or influencer, is someone who, based on their expertise and
perspective in an industry, offers unique guidance, inspires innovation, and influences
others.
b - A thought leader is an authority in a specialized field whose expertise is sought and
often rewarded.
c - Thought leaders look for ways to make the organization better.
d - Today's thought leaders are broader; they can read complex business situations and
bring out the best in other people.
e - Executives are increasingly defined by the degree to which they engage internal and
external audiences with actions and ideas that are inspiring and selfless and extend well
beyond the scope of their core mandate.
f - Thought leaders can be anywhere in the organization. Being in a position of power does
not make one a thought leader.
g - Thought leaders are strategic thinkers. They nurture relationships and social networks,
ask others good questions, and synthesize that information into actionable intelligence.
h - Thought leaders look for inflection points; they educate and create awareness and give
away their ideas to be operationalized.
i - Thought leaders change the way people think and what they do. The best ones are
trying to address the problem at hand and not just talk about it.
j - Genuine thought leadership tends to be disruptive and uncomfortable.
k - Thought leaders must be willing to buck the status quo.
l - Thought leadership can come from group dynamics and discussion.
m - Thought leadership stems from passion.
B- The distinguishing features of an IT thought leader are below.
a - sparks innovation with new ideas
b - energizes others around new possibilities
c - applies technology for value
d - leads in context
e - delivers business impact.
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Type: E
22) The CIO has decided to implement the program to develop thought leaders within the IT
organization. He has asked you to provide a plan that 1) describes what you think are the four most
important characteristics of a thought leader, 2) describes what you think are the three most essential
skills that a thought leader will need, and 3) identify the roles within IT from which potential thought
leaders might exist. Include your justification for selecting the characteristics and skills.
NOTES:
The essay should discuss the ideas below from the chapter.
A - The characteristics of a thought leader are below.
a - Idea-Generator: Is forward-thinking and adaptive, offering intellectually attractive ideas.
They think outside the box and sees things in ways that others do not.
b - Visionary: Has a natural curiosity and insight into a situation, takes an idea to the next
level, works it through, and sees patterns. Because of this, a thought leader sees a path
forward when others cannot.
c - Consultant: Helps others think through ideas and looks for ways to add value. They
recognize that the importance of selling the idea to others, not pulling control levers.
d - Synthesizer: Connects the dots between their idea and other people's ideas to provide a
more compelling vision.
e - Collaborator: Listens to others and adjusts their ideas based on others' input, rather
than clinging to an original idea. They recognize that thought leadership is a process of
leading the refinement of an idea and that teamwork can make good ideas better.
f - Courageous: Believes in their idea and challenges others or disrupts established ways if
necessary.
g - Persistent: Understands that unconventional ideas are rarely if ever, accepted
immediately. They recognize that influencing others to follow a new path is invariably a
communication process with many people over an extended time.
h - Communicator: Selling their ideas is a must. They package ideas effectively and simplify
complex situations, articulating ideas in ways that resonate with others, making them
want to move ahead.
i - Credible: Has credibility with the subject area involved – either in the business or in the
technical function. As a result of this credibility, people follow thought leaders because
they believe in what the thought leader is selling.
j - Action-oriented: Drives action related to an idea and leads others to deliver a useful
outcome. As a result, thought leaders need some implementation skills to understand
and assist the delivery process.
k - Self-Motivated: works for intrinsic value and the opportunity to make a bigger
difference.
B - The skills beyond the characteristics above of a thought leader are below.
a - intellectual curiosity
b - empathy
c - broad experience with deep skills in one or more areas
d - the ability to synthesize and apply different perspectives in a variety of business
contexts
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C - The IT roles where thought leaders may be currently working or aspire to are below. These are
roles that naturally cross internal and external boundaries.
a - Enterprise Architects
b - Relationship Managers
ANSWERS:
1. C
2. B
3. B
4. A
5. A
6. B
7. A
8. A, C
9. D
10. C
11. D
12. E
13. A
14. B
15. A
16. B
17. B, D
18. B, C, E
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Chapter 12, Managing Disruption in IT
QUESTIONS:
EASY
1) Choose the term below that best completes this sentence:
Often _________ is the result of a combination of the new capabilities offered by a technology,
complementary products and services that build on that technology, and changes in the expectations of
and behaviors in a culture, market, or process as a result.
A. Interruption
B. Change
C. Innovation
D. Disruption
E. None of the above
2) Is this idea true or false:
It is often difficult for an existing organization to catch up because of its embedded culture, processes,
and systems designed for its current structure and activities.
A. True
B. False
3) Is this idea true or false:
While it is supporting the business in dealing with disruptive forces, IT is also undergoing disruption
itself.
A. True
B. False
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4) Is this idea true or false:
IT's traditional risk-taking approach to technology works well in a disruptive environment.
A. True
B. False
5) Is this idea true or false:
The telephone is an example of an initially non-disruptive technology that became disruptive after many
years of evolving.
A. True
B. False
Type: MR
6) Select all the items below that the focus group did not predict for the future of IT.
A. IT will become a business-managed concern
B. IT will become a planning and integration function
C. IT will become a portfolio of services provided by arm's length providers
D. IT will seek to achieve speed through developing partnerships
E. Tight central control and delivery will diminish
F. None of the above
MEDIUM
7) Choose the term below that best completes this sentence:
__________ is central to dealing with disruption and can spell the difference between planned change
and survival.
A. Innovation
B. Speed of response
C. Merger
D. Technological change
E. None of the above
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Type: MR
8) Select all the items below that are not a source of organizational disruption.
A. New delivery methods
B. New governance framework
C. New management
D. New Risks
E. New structural changes
F. None of the above
Type: MR
9) Select all the items below that are a source of organizational disruption.
A. New delivery methods
B. New governance framework
C. New management
D. New Risks
E. New structural changes
F. None of the above
10) Choose the pair of terms below that best completes this sentence:
Moving to new modes of ___________and ____________ is likely to have dramatic impacts on the
structure and function of the IT organization of the future.
A. innovation; operations
B. infrastructure; service delivery
C. governance; management
D. competition; measurement
E. None of the above
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11) Choose the term below that best completes this sentence:
IT _______ are such a significant obstacle to change that some organizations may just give up the effort.
A. policies
B. resources
C. processes
D. issues
E. None of the above
Type: MR
12) Select all the options below that are roadblocks to achieving an ideal future state in the face of
disruption.
A. Competitors
B. Environment
C. People, Processes and Structure
D. Technology
E. None of the above
13) Choose the phrase below that best completes this sentence:
The first goal of managing disruption is to _________.
A. remain calm
B. stay relevant
C. survive
D. respond quickly
E. None of the above
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14) Choose the phrase below that best completes this sentence:
_________ is like experiments and proofs of concept that explore how to make sense of new
technologies and ways of working.
A. Scanning the environment
B. Responding to rivals
C. Creating an innovative culture
D. Creating learning options
E. None of the above
Type: MR
15) Select all the reasons below that are not reasons that make it difficult for an organization to catch up
after a technology disruption.
A. Embedded culture
B. Governance
C. IT's knowledge
D. Processes
E. System designs
F. None of the above
Type: MR
16) Select all the activities below that the focus group did not identify as IT's role in disruption.
A. Advise changes to the organization goals to incorporate a disruption
B. Bring new technology opportunities to the business
C. Help business leaders distinguish between hype and true disruption
D. Protect the organization from information security risks
E. Select disruptive technologies to implement
F. None of the above
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17) Is this idea true or false:
The disruptor is best positioned to take advantage of the technological disruption; therefore, innovation
must be a priority.
A. True
B. False
Type: MR
18) Select all the reasons below that cloud computing disruption has benefitted the IT group within an
organization.
A. Changes from computing from scarcity to computing of abundance
B. Easier to deploy standardized applications
C. Enables rapid experimentation at a relatively low cost
D. Improves controls and standardization across the organization
E. Simplifies application governance
F. None of the above
HARD
Type: MT
19) Match each phrase below with a lettered blank in the following sentence:
According to Christensen, a business can (A) in the face of (B) because it will ignore (C) and continue to
(D) that made it (E) for too long.
a. fail = A
b. follow the paths = D
c. innovations = C
d. stumble = None
e. successful = E
f. technological change = B
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Type: MT
20) Match each roadblock to IT responding to disruption below with its explanation.
a. Governance = None
b. People = A new type of IT function will call for new IT capabilities and skills.
c. Process and Structures = Can inhibit what is possible to do and how people think about these
possibilities.
d. Technology = Existing legacy systems are often based on brittle infrastructure
Type: MT
21) Match each of the focus group's recommendations for IT managers below with its explanation.
a. Adjust Governance = None
b. Develop New Capabilities = Need to understand better the end-customers and how to build and
leverage ecosystems.
c. Embrace Disruption = The worst thing an IT leader can do is ignore disruption.
d. Insist on Business Participation = Helps IT think more broadly about the future.
e. Make Innovation a Priority = Requires working at the intersection of what is possible with technology,
desirable for customers, and viable in the marketplace.
f. Redesign Enterprise Architecture = The right function to drive efforts to identify and manage
disruption.
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CRITICAL THINKING
Type: E
22) The CIO is working on adapting the IT organization to the disruption created by the cloud. She has
asked you to describe the roadblocks that could hinder the transformation. Select the two roadblocks
that you think are the most important. Write a paper that justifies your selection and explains the
reasons each roadblock poses a challenge.
NOTES:
The essay should discuss the ideas below from the chapter.
The three categories of roadblocks are below.
A- Processes and Structures: IT's existing processes can inhibit what is possible to do and how
people think about these possibilities. Funding processes and governance are significant
potential roadblocks, as well as line-of-business thinking.
B- People: A new type of IT function will call for new IT capabilities and skills. Efforts need to be
made to retrain existing staff while also bringing in new people to catalyze change.
C- Technology: Almost all existing companies are encumbered with existing legacy systems. These
are often based on brittle infrastructure and inhibit changes in how information is processed,
stored, and used. It is a reality that these systems cannot always be replaced by software-as-aservice yet and so must be supported and operated.
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Type: E
23) While the CIO has identified that the IT organization needs to be transformed because of the
disruption created by the cloud, she has asked you to create a plan for the general principles that should
be followed to make the transformation successful. Select the three principles that you believe are
important. Write a plan that justifies your selections and explains each principle.
NOTES:
The essay should discuss the ideas below from the chapter.
The five general principles for managing disruption are below.
A - Embrace Disruption: The worst thing an IT leader can do is ignore disruption. Planning for
disruption is essential. Having a big vision is essential, they noted, but it is equally essential to
pay attention to the little things. Looking outside the organization for new ideas and challenging
assumptions is valuable.
B - Make Innovation a Priority: Because innovation is the proactive response to disruption, IT
leaders should carefully consider how to enable it in their organizations. Facilitating innovation
requires working at the intersection of what is possible with technology, desirable for
customers, and viable in the marketplace. Thus, successful innovation involves several
components both inside and outside the organization and close collaboration between them.
C - Redesign Enterprise Architecture: The Enterprise Architecture group in IT is the right function to
drive efforts to identify and manage disruption. However, this also means changing its role and
looking at architecture's job differently. A redesigned architecture function must scan and
prioritize new technologies and work with business and IT leaders to explore new modes of
delivery, new applications, and new ways to working, combining both business and technical
knowledge.
D - Insist on Business Participation: It is wrong to leave managing disruption to the CIO alone.
Insisting on active business participation results in much better outcomes, which is not a new
concept, but it gains further urgency when it comes to disruption.
E - Develop New Capabilities: The IT organizations will need new capabilities to manage disruption
successfully. IT needs new external competencies that will help them better understand their
end customers and how to build and leverage ecosystems.
ANSWERS:
1. A
2. A
3. A
4. B
5. A
6. F
7. B
8. B, C, E
9. A, D
10. B
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11. C
12. C, D
13. B
14. D
15. B, C
16. A, E
17. B
18. D, E
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Chapter 13, Enabling Personalization with IT
QUESTIONS:
EASY
1) Choose the term below that best completes this sentence:
_____________ is tailoring a service or a product to accommodate specific individuals.
A. Customization
B. Individualization
C. Personalization
D. Specialization
E. None of the above
2) Is this idea true or false:
Individualization is a key strategy to accompany customers for the full duration of their journey.
A. TRUE
B. FALSE
3) Is this idea true or false:
The aggregation of shared data enables the association of patterns and behaviors.
A. TRUE
B. FALSE
4) Is this idea true or false:
Allowing an individual to opt in or out is sufficient to protect data as granular control changes over time.
A. TRUE
B. FALSE
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5) Developing a personalization strategy can be confusing because of the different dimensions of
personalization.
A. TRUE
B. FALSE
6) Customers tend to accept personalization strategies derived from information collected or observed
during interactions with the organization, such as page views and items purchased.
A. TRUE
B. FALSE
7) Choose the term below that best completes this sentence:
First and foremost, a personalization strategy is _____________.
A. channel-specific
B. individualized
C. personal
D. product-driven
E. None of the above
MEDIUM
Type: MR
8) Select all the characteristics below that are not part of a personalization strategy.
A. Attractive
B. Consistently applied
C. Informative
D. Mutually beneficial
E. Respectful
F. None of the above
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Type: MR
9) Select all the results below of an effective personalization strategy.
A. Customer Loyalty
B. Increased site visits
C. Longer site visits
D. Repeat purchases
E. Up-selling
F. None of the above
10) Choose the term below that best completes this sentence:
The difference between customization and personalization rests in who does the ___________.
A. altering
B. publishing
C. selecting
D. tailoring
E. updating
F. None of the above
Type: MR
11) Select all the items below that an organization uses to take steps for a customer using a
personalization strategy.
A. Knowledge of a relationship’s permissions
B. Knowledge of customer preferences
C. Knowledge of intentions
D. Knowledge of opt-in choice
E. Knowledge of past behaviors
F. None of the above
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Type: MR
12) Select all the items below that are not a concern to customers about how an organization acquires
their information.
A. The use of acquired information
B. The origin of acquired information
C. The nature of acquired information
D. How the acquired information is shared
E. How the acquired information is obtained
F. None of the above
Type: MR
13) Select all the items below that are not an organization’s custodial responsibility for its customers’
personal data.
A. Ensuring timely updates of the data
B. Limiting it usage
C. Protecting the data
D. Providing access to the data
E. Sharing the data only with trusted partners
F. Verifying the data’s accuracy
G. None of the above
14) Choose the term below that best completes this sentence:
The aspect of personalization that is the reason for the action is _______________.
A. Appropriateness
B. Causation
C. Control
D. Expectation
E. Transparency
F. None of the above
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15) Choose the term below that best completes this sentence:
The aspect of personalization that provides the ability to discern the reason for the action is
_______________.
A. Appropriateness
B. Causation
C. Control
D. Expectation
E. Transparency
F. None of the above
16) Choose the term below that best completes this sentence:
A _____________ is the strong sense of unease that some technologies instill.
A. Big brother syndrome
B. Browser queasiness
C. Technology uncertainty
D. Uncanny valley
E. None of the above
17) Select the combination of words and phrases below that best completes this sentence:
More ____________ vendors could increase both the _____________ of their ads without invoking
increased customer _____________ concerns.
A. global; frequency and depth; data
B. localized; frequency and depth; reactance or privacy
C. trusted; breadth and depth; data
D. trusted; breadth and depth; reactance or privacy
E. None of the above
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18) Select the phrases below that best complete this sentence:
The ends of the trust behavior continuum are __________ and _________.
A. cautious; freewheeling
B. tentative; confident
C. total control; sharing
D. transparency; free exchange
E. None of the above
HARD
Type: MT
19) Match each phrase below with its definition.
Adaptive Personalization = Automatically adjusting offerings based on the observed behavior of
customers.
Customization = A user manually making changes to achieve their preferred experience.
Information Sharing = None
Permission-based Marketing = Offering product-related information via an opt-in email.
Personalization = The set of actions taken by an organization to tailor its offerings based on the
uniqueness of an individual customer
Type: MT
20) Match each word below with a lettered blank in the following sentence:
(A) is achieved through (B) data and (C) while (D) is achieved when a (E) to achieve their preferred (F).
a. aggregated = None
b. customer = B
c. customization = D
d. experience = F
e. personalization = A
f. predictive technology = C
g. user made changes = E
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Type: MT
21) Match each key step with improving personalization below with its description.
a. Build on Existing Relationships = A personalization strategy should be built from already forged
relations.
b. Cast IT as the Enabler of Personalization = Has knowledge of consequences and is good at eliminating
unintended consequences.
c. Enable Personal Data Oversight = None
d. Outline a Roadmap that Starts with Quick Wins = Match the over-arching vision with the existing
successful personalization initiatives to highlight opportunities.
e. Start with an Overarching Vision = Define what is meant by personalization.
f. Take the Customers’ Point-of-View = Personalization is a relationship built on interactions and
exchanges with the organization over time.
CRITICAL THINKING
Type: E
22) You have been assigned the leadership of your organization’s website modernization effort.
Currently, there is a controversy in the design team: should the website prioritize customization or
personalization? Prepare a paper that differentiates customization from personalization. Include a
discussion of three essential custodial responsibilities that your organization assumes for customers’
personal data; justify why these responsibilities are essential.
NOTES:
The essay should discuss the ideas below from the chapter.
A - Personalization: The set of actions taken by an organization to tailor its offerings based on the
uniqueness of an individual customer (or particular customer group).
B - Customization: is achieved when a user manually makes changes to achieve their preferred
experience.
C - An organization assumes the custodial responsibilities for customers’ personal data below.
a - Protecting the data
b - Providing access to the data
c - Verifying the data’s accuracy
d - Limiting the data’s usage to the original purpose for which it was collected
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Type: E
23) Your organization introduced personalization to its marketing and website over six months ago.
While there have been few customer concerns raised with the personalization activities, the Chief
Marketing Officer is concerned that the personalization could jeopardize the organization’s customers’
trust. You have been asked to develop a plan to improve the quality of the organization’s
personalization. Prepare a plan with three essential steps to improve the organization’s personalization.
Include the justification for including each step.
NOTES:
The essay should discuss the ideas below from the chapter.
The five steps to improve the quality of personalization are below.
A - Start with an Overarching Vision: Define what is meant by personalization. Personalization is a
concept; it is neither technology nor technique. Therefore, marketing and IT must work closely
to outline specific goals of personalization and principles of engagement to serve as a general
guide to establish where, when, and why individual initiatives will be undertaken.
B - Take the Customer’s Point of View: Look at personalization from an outside-in perspective.
Because, from an organization’s point of view, personalization can mistakenly morph into just
another strategy to drive business. Whereas, from a customer’s point of view, personalization is
a relationship built on (and shaped by) interactions and exchanges with the organization over
time.
C - Cast IT as the Enabler of Personalization: Marketing leads the personalization charge in many
organizations, so IT must work closely with it to enable a personalization strategy. Because IT
has different training, a different point of view, and a different insight into personalization. IT
contributes implementation know-how; IT knows consequences and is good at eliminating
unintended consequences.
D - Build on Existing Relationships: There is no need to start a personalization strategy from a blank
piece of paper. Organizations have already forged successful relationships with their customers;
otherwise, they would not be in business. A personalization strategy should be built on this
foundation.
E - Outline a Roadmap that Starts with Quick Wins: A roadmap starts with assessing your existing
skills, tools, technology, and successful personalization initiatives. Then, match the assessment
against your over-arching vision highlighting gaps and opportunities and separating the items
you could start immediately from those that need to wait. Also, identify and acquire the
requisite capabilities implied by this roadmap to ensure success.
ANSWERS:
1. C
2. B
3. A
4. B
5. A
6. A
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7. C
8. A, C
9. B, C
10. D
11. B, C, E
12. A, D
13. A, E
14. B
15. E
16. D
17. D
18. C
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Chapter 14, Enhancing the Employee Experience
with IT
QUESTIONS:
EASY
1) Is this idea true or false:
An unreproducible sustainable competitive advantage is created by employees' experience with any
organization-provided technology.
A. TRUE
B. FALSE
2) Is this idea true or false:
At present, organization-provided technology contributes to a positive EX.
A. TRUE
B. FALSE
3) Is this idea true or false:
Organizations invest in new technology primarily to optimize their operational goals rather than to
enhance EX.
A. TRUE
B. FALSE
4) Is this idea true or false:
While the EX-planning process identifies employee needs and creates a needs map to communicate the
EX-plan, it is IT's responsibility to develop the overarching plan for what could be done.
A. TRUE
B. FALSE
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MEDIUM
Type: MR
5) Select all the reasons below that employees feel that an organization's technology impedes their
work.
A. Awkward technology
B. Security safeguards
C. Slow computers
D. Unavailable information
E. None of the above
Type: MR
6) Select all the attitudes below that are not prevalent with today's workers.
A. About half of employees are open to changing jobs.
B. They expect much more from their employer than in the past
C. They expect to work with the latest technology.
D. They want the technical resources they need to do their jobs effectively.
E. None of the above
7) Choose the term below that best completes this sentence:
EX interacts with ____________ to affect job outcomes such as productivity, job satisfaction, and
performance
A. User Experience
B. Employee Experience
C. Employee Engagement
D. User Engagement
E. None of the above
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8) Choose the terms below that best completes this sentence:
The combination of positive EE and EX produce ____________ and ________, which are valuable
outcomes for an organization.
A. job performance; talent engagement
B. job satisfaction; top-talent recruitment
C. productivity and job satisfaction; talent brand
D. retention; productivity
E. None of the above
Type: MR
9) Select all the factors below that can influence EX and EE.
A. Job Satisfaction
B. Management Support
C. New Technologies
D. Organizational Support and Resources
E. None of the above
10) Choose the terms below that best completes this sentence:
Currently, ___________ are the most disengaged segment of the workforce and the one most likely to
access a supportive work environment for a positive experience.
A. baby boomers
B. generation X
C. iGen
D. millennials
E. None of the above
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Type: MR
11) Select all the items below that the focus group did not identify as drivers for improving EX with
technology.
A. Creating an attractive workplace
B. Enabling work from home
C. Improving an employee's journey
D. Increasing a company's agility
E. Reducing stress
F. None of the above
Type: MR
12) Select all the items below that are not an issue that IT must address to improve EX with technology.
A. Creating a holistic plan
B. Designing the technology work environment
C. Incorporating EX in the IT strategy
D. Recognizing the business value of EX for work
E. None of the above
Type: MR
13) Select all the items below that are not encompassed within the EX.
A. Digital workplace
B. Employee-facing technologies
C. IT strategy
D. Processes that support the employee journey
E. Work-home balance
F. None of the above
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Type: MR
14) Select all the issues below that are challenges to gaining executive attention for EX.
A. Aligning EX with the enterprise goals
B. Executives' knowledge of technology
C. Financing the work
D. Lack of a single owner of EX
E. Understanding the broad nature of EX
G. None of the above
15) Choose the terms below that best completes this sentence:
________________ blends traditional enterprise telephony, messaging, presentations, and conferencing
with new capabilities for workstream management, collaboration, video, and virtual assistants.
A. Cloud-based work management
B. Communication hubs
C. Unified communications
D. Virtual communications
E. None of the above
Type: MR
16) Select all the technology layers for EX below that make employees more productive.
A. Contextual
B. Enablement
C. Foundational
D. Platform
E. Service
F. None of the above
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Type: MR
17) Select all the features below of a good UX.
A. Accessible
B. Easy to learn and use
C. Likable
D. Mobile-friendly
E. Usefulness
F. None of the above
HARD
Type: MT
18) Match each phrase below with its description.
Employee Engagement = The emotional and psychological connection an employee has with an
organization.
User Experience = A person's experience with an individual piece of technology, its efficacy, and ease of
use.
Employee Experience = The actions and behavior of employees in response to workplace processes,
tools, technologies, resources, management, or other initiatives.
Talent Brand = An expression of the culture, values, beliefs, the lifestyle that go with employment, and
the nature of the work.
User Engagement = None
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Type: MT
19) Match each word below with a lettered blank in the following sentence:
While (A) is the (B), (C) is a means to this (D), and it can more easily be proactively designed to produce
better (E).
a. employee engagement = A
b. employee experience = C
c. end = D
d. engagement = E
e. goal = B
f. job outcomes = None
Type: MT
20) Match each step for improving EX with IT below with its description.
Make EX Someone's Job = Someone who can plan, educate, and influence within and outside IT.
Include Employees = Employee advisors can lead to the development of a map of employee technology
needs.
Assess and Plan = Qualitative and quantitative assessment of offending technologies' problems and an
improvement EX vision.
Develop the Value Proposition and Business Cases = Document the multiple layers of value.
Address Executive Indifference = Understand the technology challenges and frustration employees face.
Design Governance and Create a Cross-functional Coalition = Ensure that EX initiative cut across
traditional organizational silos and are broadly supported.
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CRITICAL THINKING
Type: E
21) Senior management has requested IT to propose solutions to improve the organization's
productivity. Rather than exclusively focusing on technology improvement, the CIO is considering other
approaches. You have been asked to investigate the relationship between employee engagement and
improved productivity. Prepare a paper that
a - explains the relationship between employee's feelings and motivation and improved business
results, i.e., how is EE related to Maslow's Hierarchy of Needs,
b - describes the expected organization outcomes from providing a positive EE and EX, and
c - provide three examples of why the organization should improve EX with IT.
NOTES:
The essay should discuss the ideas below from the chapter.
A- Employee engagement is the oldest concept, and it describes the emotional and psychological
connection an employee has with an organization. EE is the discretionary effort made by
employees in their daily work lives; it is a feeling of being passionate, energetic, and committed
to their work and a willingness to invest their best selves in it.
B- The combination of positive EE and EX has the two outcomes below.
A - Productivity and Job Satisfaction: Employees who have a positive experience at work are
more engaged, productive, and satisfied with their work. In turn, this positively affects
corporate performance.
B - Talent Brand: Talent Brand is an expression of the culture, values, beliefs, the lifestyle that
goes with employment, and the nature of the work; it is somewhat different from an
organization's overall brand.
C - The drivers for improving EX with technology are below.
a - Attracting and retaining millennials and highly-skilled technology staff
b - Making all employees more effective on the job and improving productivity
c - Creating an attractive workplace that promotes collaboration and flexibility and reduces
stress
d - Enabling mobile work and work from home
e - Increasing a company's agility
f - Improving the customer experience
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g - Improving the employee journey from recruitment to onboarding to ongoing
administrative processes to exit
h - Innovating more – when employees perceive a technology can help them succeed in
their work, they are more likely to leverage it to accomplish tasks in new ways
Type: E
22) The CIO has decided to demonstrate the benefit of a positive EX by improving the IT organization.
You have been asked to create a plan to improve EX for the IT staff. Create a plan that describes the five
essential steps to improving EX with IT.
NOTES:
The essay should discuss the ideas below from the chapter.
The nine steps for improving EX with IT are below.
A - Make EX Someone's Job: Getting started requires EX to someone's responsibility to plan,
educate, and influence their colleagues so that much EX-work can be done within existing
budgets.
B - Include Employees: An outside-in approach to designing technology recognizes that employees
know what they need to be productive. EX is a broad topic; therefore, identify some employee
advisors. Working with these advisors, develop a map of employee technology needs from the
employees' perceptions of their interactions with technology.
C - Assess and Plan: Once IT has a clearer understanding of employees' pain points, it is helpful to
visit other organizations to see how they are addressing EX, which may yield ideas in many areas
such as design principles, building a business case or a funding model, and incorporating
metrics. This is also a chance to identify opportunities for improving and simplifying processes.
The outcome should be a qualitative and quantitative assessment, a vision for improving EX
(including fundamental, enablement, and platform technologies), and a blueprint for executing
the vision.
D - Develop the Value Proposition and Business Cases: A significant obstacle to improving EX is the
lack of a strong business case. EX affects many strategy layers – job satisfaction, customer
experience, productivity, staff attraction and retention, and business performance. Therefore, it
is essential to document these multiple layers of value and incorporate them into any particular
business case.
E - Address Executive Indifference: One of the most critical factors for getting traction for an EX
program is getting executives to understand the technology challenges and frustrations their
employees face – particularly at the front line. Leaders tend to underestimate or overlook the
issues involved in using technology. The best way to address this is to ensure that they clearly
understand what they ask their staff to experience.
F - Fund Foundational Technology: Finding this funding is a perennial problem.
G - Design Governance and Create a Cross-functional Coalition: With EX affecting almost every part
of organizational life, it is essential to ensure that EX initiatives cut across traditional
organizational silos and are broadly supported.
H - Establish Standards: Standardization supports simplicity and an improved EX while complexity
undermines it. EX must also be an evaluation criterion for all new employee-facing technology.
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I - Measurement and Feedback: Establish better EX metrics. Most organizations do not have a clear
strategy for employee engagement and EX measurement. In addition to quantitative metrics, it
is vital to mine employee sentiments and comments and actively listen to employee concerns.
ANSWERS:
1. B
2. B
3. A
4. A
5. A, D
6. A
7. C
8. C
9. B, D
10. D
11. F
12. C
13. C, E
14. C, D, E
15. D
16. B, C, D
17. B, C, E
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Chapter 15, Moving to an API Economy
QUESTIONS:
EASY
1) Is this idea true or false:
APIs only allow organizations access to data and chunks of external functionality.
A. True
B. False
2) Is this idea true or false:
APIs are easy to consume by others.
A. True
B. False
3) Is this idea true or false:
The API economy can be viewed as a set of business models and channels.
A. True
B. False
4) Is this idea true or false:
Most companies have established their API strategy.
A. True
B. False
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5) Is this idea true or false:
In the API economy, it is not sufficient for a business to only serve its customers and make money.
A. True
B. False
MEDIUM
6) Choose the term below that best completes this sentence:
The basic idea of a/an ____ is that the owner of one application creates a set of access methods that
another application can call.
A. function
B. program
C. method
D. API
E. None of the above
7) Choose the term below that best completes this sentence:
APIs have gained new attention in recent years because technology start-ups are ___________.
A. building apps for IOS and Android
B. not burdened by legacy systems
C. using open communication standards
D. using open source
E. None of the above
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Type: MR
8) Select all the items below that are not a definition of an API.
A. A multi-purpose tool that provides simple external interfaces for a variety of purposes.
B. A standardized software component acting independently of its host application and enabling bridges
to be built between applications to bring together disparate functionality to create new forms of value.
C. An arm's length, shareable interface acting as a common communication channel providing access to
data and capabilities.
D. The interface to microservices.
E. The owner of one application creates a set of access methods that another application can call.
F. None of the above
Type: MR
9) Select all the items below that are not the benefits of using APIs.
A. Achieve faster time-to-market and creating new functionality by accessing data and chunks of
functionality.
B. Changes can be made to applications without affecting the way they interact.
C. Eliminate extensive negotiations and customization to participate in organizations' ecosystems.
D. Reduce documentation of organization processes and algorithms.
E. Use specialized services that are too difficult, expensive, or time-consuming to reproduce in-house.
F. None of the above
Type: MR
10) Select all the issues and risks below associated with the use of APIs.
A. Adding new layers of complexity to IT services.
B. Changing an API causes a disruption.
C. Controlling access to protected data.
D. Introducing risk from the myriad online connections.
E. Managing access methods to APIs.
F. None of the above
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Type: MR
11) Select all the reasons below that APIs are not a business model driver.
A. Creating new revenue streams
B. Enable the monetization of core assets
C. Enable the reuse and sharing of core assets
D. Providing consistent access to core assets
E. Providing quicker development of IT solutions
F. None of the above
12) Choose the term below that best completes this sentence:
The API ___________ is the commercial exchange of business functions and capabilities using APIs.
A. Economy
B. Exchange
C. Marketplace
D. Portal
E. None of the above
Type: MR
13) Select all the items below that are not the result of moving into the API Economy.
A. Businesses become platforms.
B. Competition is about the best platform strategy and ecosystem to back it up.
C. Differentiation is from the partners in an ecosystem.
D. Platforms are mediating entities that facilitate interactions that create value.
E. Products are APIs in a global market.
F. None of the above
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Type: MR
14) Select all the questions below that an organization needs to address when beginning to work with
APIs.
A. How can we attract and build partnerships to enhance our API strategy?
B. How will our APIs be discovered?
C. How will we authorize access to our API methods?
D. What monetization strategy should we use?
E. What technology will we use for our APIs?
F. Which of our platforms need APIs?
G. None of the above
Type: MR
15) Select the best practices the focus group provided for an organization to start using APIs.
A. Build APIs first
B. Connect APIs to business metrics
C. Focus on data quality
D. Identify potential sources of API value
E. Include business rule governance
F. None of the above
HARD
Type: MT
16) Match each API's name below with its functionality.
a. Algorithm = An API that provides access to a particular piece of computational logic.
b. Business = An API that provides a hybrid or combination of composable services that includes
business logic.
c. Data = None
d. Experience = An API that shapes data to a user interface and speed of response.
e. System = An API that communicates and interacts with a legacy system.
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Type: MT
17) Match each API-related term below with its description.
a. API Mediation = Managing the authorization and security between the calling and responding
functions of APIs.
b. API Portal = Provides developers the ability to discover APIs and experiment with them.
c. API Portfolio = Lifecycle management of APIs.
d. API Registry = None
e. Microservice = A way of building fine-grain composable functionality.
Type: MT
18) Match each API value method below with its description.
a. Continuous Platform Innovation = Opening company data and services to a much broader and more
open ecosystem of developers and organizations to create radically new products, services, and
business models.
b. Improvement = Reducing the time-to-market dramatically for an organization's new products due to a
streamlined development process.
c. Inter-organizational Innovation = Providing 'frictionless' transactions with trusted partners to leverage
each other's data and services to reduce costs and time.
d. Intra-organizational Agility = None
e. Leveraged Products and Services = Differentiating a product or service by enhancing it with data, new
forms of presentation, or new functionality.
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Type: MT
19) Match each word below with a lettered blank in the following sentence:
In the future, (A) will evolve from enabling simple (B), to (C) remote interactions across a network, to (D)
where APIs are facilitating and (E) the development of new (F), to ultimately becoming the actual (G) or
services a company delivers.
a. accelerating = E
b. APIs = A
c. connectedness = B
d. IT = None
e. platforms = D
f. products = G
g. services = F
h. supporting = C
Type: MT
20) Match each API strategy below with the description of the use of that strategy.
a. Closed API Market – Broad API Use = Inter-organizational innovation
b. Closed API Market – Limited API Use = Improvements in cost or speed to market
c. Open API Market – Broad API Use = Continuous platform innovation
d. Open API Market – Nascent API Use = None
e. Open API Market – Limited API Use = Leveraged products and services
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CRITICAL THINKING
Type: E
21) The CIO has embarked on API development. You have been asked to update the IT strategy with an
API strategy. Describe three API functions and two methods by which the APIs will provide value. Select
an API strategy. Describe the strategy and how the strategy relates to the selected API functions.
NOTES:
The essay should discuss the ideas below from the chapter.
A- The four API functions are below.
a - System APIs: provide a means of communicating and interacting with legacy systems.
b - Business APIs: are composable services that include business logic and are offered as
hybrids or combinations of services.
c - Experience APIs: shape services for a user interface (U), such as a mobile app; rather
than business logic, the API shapes data to a UI and speed of response.
d - Algorithm APIs: provide access to a particular piece of computational logic.
B- The four methods that value can be derived from APIs are below.
a - APIs for Improvement: Due to their enhanced ability to integrate applications, APIs can
streamline development processes, dramatically reducing an organization's time-tomarket with new products.
b - APIs for leveraged products and services: Differentiate a product or service by enhancing
it with data, new forms of presentation, or new functionality by providing access to
some of an organization's APIs to carefully vetted external developers.
c - APIs for inter-organizational Innovation: Organizations may also seek "frictionless"
transactions with trusted partners to leverage each other's data and services to reduce
costs and time.
d - APIs for Continuous Platform Innovation: The most visionary form of API value derives
from opening up company data and services to a much broader and more open
ecosystem of developers and organizations to create radically new products, services,
and business models.
C- The four API Strategies are below.
a - Closed API Market; Limited API Use: This stage uses APIs to help organizations improve
internally. Improving APIs internally requires improving data quality and standards and
decomposing legacy systems into pieces of functionality for ease of access.
b - Open API Market; Limited API Use: As companies gain experience and confidence with
APIs, they could become modular producers of plug-and-play products or services.
Providing access to a limited set of APIs enables external developers to add value to an
organization's products and services.
c - Closed API Market; Broad API Use: This stage uses APIs to enable a limited number of
partners to share data and functionality more broadly.
d - Open API Market; Broad API Use: This stage supports continuous innovation in an
ecosystem. It provides a branded platform and uses APIs to generate sales both through
partners and third parties
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Type: E
22) Planning is underway to implement APIs. The CIO has asked you to create a plan that provides the
best practices for the organization to use to conceive, develop, manage, and govern APIs. Select five of
the best practices that the focus group provided that you believe are most important. Justify your
choices and describe each practice.
NOTES:
The essay should discuss the ideas below from the chapter.
The eight best practices for starting with APIs are below.
A - Identify Potential Sources of API Value: organizations should seek to solve their customers'
problems. This step transitions an organization:
a. from knowing your customer to knowing how your customer needs to change,
b. from making products easy to use to understanding customers' behavioral needs,
c. from monitoring usage to monitoring value created,
d. from identifying unrecognized needs to converting unrecognized needs to must-haves.
B - Develop API Governance: As a new element of an organization's business and technology
strategy, APIs have mostly been adopted on an as-needed basis by whoever wishes. API
governance serves many functions.
a. ensures that new APIs are aligned with business strategy
b. establishes management, coordination, and control over API use
c. makes common investments in the organization's platform to balance the tensions
involved
C - Change how you Think: This mindset shift must extend to both strategists and developers. With
APIs and microservices, software becomes the creative composition of functionality and data
that can be pulled together quickly rather than a monolithic application.
D - Adopt New Tools and Capabilities: Although not every project will require APIs, those aimed at
delivering value or new capabilities or for innovation and exploration will need to use new
development methods such as agile techniques and DevOps new API-oriented standards and
methods. Initially, at least, IT will need to become bimodal.
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E - Build APIs First: It is best practice to build the API before coding. APIs must be rock solid in
design and connect to the common needs of the organization.
F - Ensure Control: Secure access to APIs is the foundation of the API economy. Without
authentication and authorization, organizations are vulnerable in many ways.
G - Connect APIs to Business Metrics: One of the most appealing features of APIs is the ability to
track their usage. Once usage patterns are clear, it is then possible to develop meaningful
business measures of an API's value, such as the number of users signing up for additional
services or capabilities accessed in new ways.
H - Expose and Address Risks: APIs create new levels and types of risk, and business leaders are
highly sensitive to these. Some risks relate to bad data or poor decisions about data. Others
relate to poor choices made by partners or about partners. Furthermore, most important is
reputational damage to core company products.
ANSWERS:
1. B
2. B
3. A
4. B
5. A
6. D
7. B
8. F
9. D
10. A, D
11. D, E
12. A
13. C
14. A, D, F
15. A, B, D
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Chapter 16, Engaging with Artificial Intelligence
QUESTIONS:
EASY
1) Is this idea true or false:
AI makes machines smarter and is used in a broad range of applications.
A. True
B. False
2) Is this idea true or false:
People and organizations must be able to trust what AI technology can do.
A. True
B. False
3) Is this idea true or false:
The difference between AI and other technologies is well defined.
A. True
B. False
4) Is this idea true or false:
Rather than an IT project, AI is a fundamental change in how work is done.
A. True
B. False
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5) Is this idea true or false:
One of AI's essential values is helping us deal with the massive volume of structured and unstructured
data being created.
A. True
B. False
MEDIUM
Type: MR
6) Select all the reasons below for Artificial Intelligence (AI) suddenly gaining businesses' attention.
A. AI solutions are supporting businesses' goals
B. Availability of vast amounts of data that drive AI
C. Powerful hardware is accessible through cloud computing
D. Regulations are providing protections for consumers' data
E. Software, powerful algorithms, and natural language processing have evolved to human levels
F. None of the above
7) Choose the term below that best completes this sentence:
AI is different from traditional programs because it does not require __________ nor function in a
_______ fashion.
A. algorithms; persistent
B. data; serial
C. fixed commands; binary
D. programmers; binary
E. None of the above
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8) Choose the term below that best completes this sentence:
___________ is the lifeblood of AI.
A. Value
B. Processes
C. People
D. Data
E. None of the above
Type: MR
9) Select all the current limitations of AI from the list below.
A. AI incorporates human biases into actions
B. AI lacks general executive functions
C. AI is limited to structured data
D. AI requires training
E. None of the above
10) Choose the term below that best completes this sentence:
______ is a non-profit AI research company, which aims to carefully promote and develop friendly AI to
benefit, rather than harm, humanity as a whole.
A. AI.net
B. Free AI
C. Git AI
D. Open AI
E. None of the above
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Type: MR
11) Select all the challenges below that are not reasons for organizations slow adoption of AI.
A. Learning to manage AI, which flips between being a technology and a solution
B. Needing lower cost, lower risk, faster deployment, easier solution management, a common
infrastructure
C. Seeking the right role for AI
D. Waiting for clarity on how AI will be applied in the future
E. None of the above
12) Choose the phrase below that best completes this sentence:
Currently, AI abides by ______________, so improving data and monitoring outcomes are paramount.
A. Data Stewardship
B. Garbage-in, Garbage-out Rule
C. Murphy's law
D. Six Sigma improvements
E. None of the above
Type: MR
13) Select all the drivers below for business adoption of AI.
A. Business cost reduction
B. Digitalization
C. Speed of decision-making
D. Strategic advantage
E. None of the above
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Type: MR
14) Select all the roles below that are forecasted to be replaced by AI.
A. Data scientist
B. Delivery workers
C. Factory workers
D. Knowledge Workers
E. None of the above
Type: MR
15) Select all the items below that are not methods for AI to deliver value.
A. Creating new products and services
B. Enforcing current business practices
C. Replacing or augmenting human labor
D. Supporting human decision-making
E. None of the above
Type: MR
16) Select the disruptions below that are widely agreed will result from AI adoption.
A. Address legal and ethical privacy issues due to AI decision-making.
B. Replacement of numerous components of knowledge-workers jobs.
C. Transform business from a structured approach to a natural interaction that adapts to context and
conditions.
D. Transform IT management from managing programming to controlling, managing, and monitoring AI.
E. Transform organization data and privacy governance to inter-organizational governance.
F. None of the above
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HARD
Type: MT
17) Match each type of AI below with its description.
a. Machine Learning = An algorithm that is used for processing and decision-making that improves
automatically through experience.
b. Natural Language Processing = A variety of technologies that facilitate conversational interfaces
between humans and a machine.
c. Neural Networks = Machines that mimic brain connections that have developed strong pattern
identification skills.
d. Quantum Computation = None
e. Robotics = A machine that does physical work ranging from manufacturing to supply delivery in a
building to complex laboratory processing.
Type: MT
18) Match each AI planning challenge below with its description.
a. AI Strategy = None
b. Cognitive Ergonomics = Adapting an AI implementation into an organization's social fabric.
c. Data Management = Addressing the perennial problems of data ownership, privacy, security, and data
classification.
d. Digital Transformation = Embracing new and different technologies in ways that challenge operational
and value assumptions.
e. IT's Role = Responsibility for AI will be split between different parts of the enterprise.
f. Skills Development = Learning what will be required of the staff to work with AI.
g. Testing and Audit = Learning that once deployed, smart machines will need further attention.
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Type: MT
19) Match each word below with a lettered blank in the following sentence:
Digital is not the (A). Instead, it is laying the (B) for a much more (C) transformation to come; soon, all
significant business (D) will be (E) by cognitive (F).
a. decisions = D
b. destination = A
c. enhanced = E
d. foundation = B
e. profound = C
f. strategy = None
g. technologies = F
Type: MT
20) Match each big issue with adopting AI below that the focus group identified with its description.
a. Address Data Quality = None
b. Ask the Bigger Question = The potential societal dangers involved in a massive economic
displacement and the fact that our institutions are ill-equipped to deal with these changes.
c. Beware of Anthropomorphism = The inappropriate use of human metaphors creates false beliefs
about the behavior of computers.
d. Build Multiple Work Models = The changes in work practices because of AI will need to be integrated
with legacy systems and practices.
e. Work to Develop Trust = The expectation that vendors will oversell AI capabilities, leaving people
skeptical of what AI can really do.
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CRITICAL THINKING
Type: E
21) As the marketing Account Manager, the Chief Marketing Officer has begun to ask you about
adopting AI, although she is unsure how it should be used. You have discussed the request with the CIO,
who has requested a briefing for them both.
Prepare a briefing that discusses:
a)
b)
c)
d)
what is AI,
what are the different types of AI,
what are the strengths and uses of the types of AI, and
a description of four challenges that the organization will likely encounter when planning for AI.
NOTES:
The essay should discuss the ideas below from the chapter.
A- Artificial Intelligence (AI) definition: A broad term for many types of smart machines that enable
organizations to tackle more complex problems than traditional, structured systems currently
allow.
B- The sub-types of AI are below.
a - Robotics: where machines do physical work, ranging from manufacturing to supply
delivery in a building to complex laboratory processing such as blood tests.
b - Machine learning: where algorithms that improve automatically through experience are
used for processing and decision-making.
c - Neural networks: These are inspired by biological neural networks and aim to mimic
brain connections. Machine-based neural networks have developed strong pattern
identification skills. They can also be a type of machine learning – discovering rules,
developing new rules, and tolerating noise and variability in data.
d - Natural language processing includes various technologies that facilitate conversational
interfaces between humans and a machine. Natural language processing is being
introduced to the public through digital assistants, like Siri and Alexa, and various
chatbots.
C- The challenges in planning for AI are below.
a - Digital Transformation: Embracing new and different technologies in ways that
challenge operational and value assumptions and integrate them with existing
technologies to deliver new products, services, business models, revenue streams, and
customer/stakeholder experiences. What many may not have grasped yet is that "digital
is not the destination. Instead, it is laying the foundations for a much more profound
transformation to come.
b - Data Management: AI requires more and better data to make it effective. Companies
need to build robust data functions and address the perennial problems of data
ownership, privacy, security, data classification, and the newer areas of big data and its
management.
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c - Business Value: Organizations want to understand how to use AI to deliver value.
Examples include creating new products and services, replacing or augmenting human
labor, and supporting human decision-making.
d - Skills Development: There is general agreement that we do not know much about the
specific skills required to work with AI. Data, analytics, data mapping, quality control,
and quantitative measurement will be essential emergent skills.
e - IT's Role: IT's role in the organization will change because it is likely that responsibility
for AI will be split between different parts of the enterprise; it will be primarily that of
creating the right conditions for enabling AI and integrating it with existing systems. IT
will play a part in many dimensions of AI work, including helping to identify
opportunities; clarifying the purpose of an AI implementation; cleansing and identifying
data; managing and maintaining the AI environment; helping to select and implement
appropriate algorithms and maintaining them; ensuring quality outcomes; building
bridges between applications; and coordinating with privacy, legal, and security groups.
f - Testing and Audit: Testing is especially critical when working with AI because AI can
detect unique and unanticipated patterns in data; therefore, traditional methods of
testing all code paths are not sufficient. It is the responsibility of testing to ensure that
no wayward results occur. For all its strengths, AI will need to be retrained and retested
as new data is collected.
g - Cognitive Ergonomics: Any AI implementation must fit into an organization's social fabric
and address specific business opportunities. One of the most significant emerging AI
issues is how this technology will interact with humans. In a world where machines and
humans will collaborate on problem-solving, decision-making, and customer services,
organizations need to find the right way to blend humans and machines successfully.
Type: E
22) There is growing recognition among the executive leadership team that AI can transform the
organization. However, there is uncertainty about the challenges of adopting the technology, which they
believe to be significant. You have been asked to identify and describe the four most challenging broad
impacts of adopting AI. Also, explain why your selections are the most challenging.
NOTES:
The essay should discuss the ideas below from the chapter.
The most challenging aspects of AI adoption are below.
A - Ask the Bigger Question: There are many questions to be resolved, including:
a - Should a bot self-identify as a robot?
b - Should AI be transparent about how it makes decisions? Is informed consent needed to
use AI?
c - Who accepts decision responsibility and accountability? The organization? The
algorithm supplier? The data scientist?
d - Should waivers be required in some cases? Are they ethical?
e - What are some of the "back door" implications of AI
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More significantly, AI and robotics are beginning to affect labor markets. There are potential
societal dangers involved in such massive economic displacement, and the fact that our
institutions are ill-equipped to deal with these changes
B - Beware of Anthropomorphism: Anthropomorphism is the attribution of human traits, emotions,
and intentions to non-human entities and is considered an innate tendency of human
psychology. As computers become more and more human-like in their ability to interact
conversationally, it is natural to ascribe human characteristics to them. AI developers try to
leverage anthropomorphism to make computers easier to use. While not necessarily unwise,
experts warn that the inappropriate use of anthropomorphic metaphors creates false beliefs
about the behavior of computers.
C - Work to Develop Trust: People and organizations must be able to trust what technology can do.
At these initial stages of AI, this trust must be constantly tested. Organizations can expect
vendors to oversell their capabilities, leaving people skeptical of what AI can do.
D - Build Multiple Work Models: As the world changes in response to new work practices resulting
from AI, organizations will integrate their legacy systems and practices into this fast-paced,
rapidly changing environment. No one knows what models will be effective in this new world, so
the best advice is to experiment with multiple models. Experience with different work models
will help develop flexibility and agility and start to modify organizational cultures.
E - Consider Open AI: Open AI is a non-profit artificial intelligence research company, supported by
Tesla's Elon Musk, which aims to carefully promote and develop friendly AI to benefit, rather
than harm, humanity as a whole. It is also an open-source project aimed at creating
specifications for AI and associated programs and tools. Its short-term goals are to build tools
and algorithms that will be shared publicly and longer-term, to develop better hardware that
can perform more like humans. An open-source model is a cheaper way to address AI problems
and, if it works, could help advance AI for everyone.
ANSWERS:
1. B
2. A
3. B
4. A
5. A
6. B, C, E
7. C
8. D
9. A, B
10. D
11. E
12. B
13. A, C
14. C, D
15. B
16. E
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Chapter 17, The New World of IT Work
QUESTIONS:
EASY
1) Is this idea true or false:
Because technology is transforming the meaning and value of work, it is predicted that today's workers
will not recognize tomorrow's workplace.
A. TRUE
B. FALSE
2) Is this idea true or false:
Many IT functions are on the leading edge of relying on a larger contingent and partner-staffed
workforce.
A. TRUE
B. FALSE
3) Is this idea true or false:
The focus group members believe that contract workers cost less.
A. TRUE
B. FALSE
4) Is this idea true or false:
A common approach to hiring staff is to have them work on a contract first.
A. TRUE
B. FALSE
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Type: MR
5) Select all the benefits below not associated with an integrated approach to talent management.
A. Action plans to remediate identified problem areas.
B. Ensuring an appropriate mix of vendors.
C. Managing labor costs and geographic footprint.
D. Ongoing assessment of workforce strategies.
E. Tracking and administering contingent workers.
F. None of the above
6) Is this idea true or false:
Researchers have been surprised by the variety of engagement contracts an organization uses for nonfull-time staff.
A. TRUE
B. FALSE
MEDIUM
7) Choose the term below that best completes this sentence:
Independent contractors, freelancers, and consultants are examples of _____________ labor.
A. project
B. millennial
C. hybrid
D. flexible
E. contingent
F. None of the above
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Type: MR
8) Select all the claims below for IT workers to be a mash-up of various employment contracts.
A. The approach enables the workforce to better align with the rapid pace of technology change.
B. The approach is cheaper and more flexible.
C. The approach simplifies resource planning.
D. Workers bring significantly more experiences to the organization.
E. Workers with in-demand skills reject the old paradigm.
F. None of the above
Type: MR
9) Select all the reasons below that are not drivers for the evolving composition of the IT workforce.
A. Compartmentalization of IT work enables the use of non-traditional workers.
B. Executive misunderstanding of staffing needs.
C. Executives are ensuring that hiring metrics match industry norms.
D. Improved communications support geographically, mobile workers.
E. Workers are disinterested in a corporate career.
F. Workers' ownership of cutting-edge technology resources.
G. None of the above
10) Choose the pair of terms below that best completes this sentence:
The cost of a contingent and partner worker is lower because they do not receive __________ and
__________ is shorter.
A. training; oversight
B. reviews; oversight
C. benefits; onboarding
D. benefits; administration time
E. None of the above
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11) Choose the pair of terms below that best completes this sentence:
A ________ reason for newer types of IT work is ___________.
A. common; flexibility
B. critical; digitalization
C. critical; flexibility
D. managerial; projectization
E. new; specialization
F. None of the above
Type: MR
12) Select all the items below that are not advantages for using contingent staff to access specialized
skills.
A. Fast-track employee skill training
B. Focus on competency gaps
C. Focus on strategic projects
D. Reduce business continuity risk
E. Release employees to add the most value
F. None of the above
Type: MR
13) Select all the types of IT work below that is appropriate for full-time workers.
A. Architecture
B. Integration Services
C. Quality Assurance
D. Specialized Skills
E. Strategic Visioning
F. None of the above
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Type: MR
14) Select all the types of IT work below that is appropriate for contingent workers.
A. Architecture
B. Integration Services
C. Quality Assurance
D. Specialized Skills
E. Strategic Visioning
F. None of the above
Type: MR
15) Select all the consequences below that are not the result of effectively managing IT workers.
A. Fragmentation
B. Knowledge Gap
C. Lack of Compliance
D. Legal Challenges
E. Poor Performance
F. Scheduling Gaps
G. None of the above
Type: MR
16) Select all the items below that are not an example of a dehumanizing element for treating nonfulltime staff.
A. Different ID badges
B. Excluded from team meetings
C. Excluded from volunteer opportunities
D. Expected workhours
E. Expecting weekly time reports
F. None of the above
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HARD
Type: MT
17) Match each type of IT worker below with its definition.
a. Freelancer = A highly skilled worker who does a specific technical job.
b. Full-time = A traditional worker with tenured employment and benefits.
c. Implementation Partner = A worker who is an employee of a vendor and skilled in a particular
application or type of software.
d. Managed Services = A worker who reports to a service provider to manage specific types of
infrastructure services.
e. Outsourced = A local worker who is an employee of a vendor and dedicated to a particular project.
f. Permanent Contingent = A long-term worker hired through an agency with benefits from the agency.
g. Project Specialist = None
h. Retiree = A known worker who is valued for their subject matter expertise.
Type: MT
18) Match each risk of using contingent IT workers below with its description.
a. Accountability = The risk from not owning the work.
b. Authority = None
c. Fragmentation = The risk of inconsistent policies and practices for different types of workers.
d. Increased Likelihood of Failure = The risk increases with the increasing types of IT workers in an
ecosystem.
e. Loss of Knowledge = The risk to collaboration and decision-making from relying on contingent workers
who are subject matter experts.
f. Regulation = The risk of change related to the fiction of contingent workers not being long-term
employees.
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Type: MT
19) Match each word and phrase below with a lettered blank in the following sentence:
One of the (A) steps to finding the (B) staffing balance is to better identify the critical (C) required and
the (D) needed in each (E) determining the (F) source for this work.
a. before = E
b. best = F
c. critical = None
d. first = A
e. right = B
f. segments of work = C
g. skills = D
Type: MT
20) Match each management best practice for contingent IT workers below with its associated
description or rationale.
a. Develop Face-to-Face Relationships = When considering a partnership, it is wise to agree on a
'discovery statement of work' so that both parties understand the complexity involved.
b. Ensure Provisioning = Address essential contingent provisioning tasks.
c. Establish Performance Goals = None
d. Provide Leadership for Staffing Issues = Coordinate and involve relevant stakeholders in all talent
management practices.
e. Treat Everyone as Part of the Team = Find ways to ensure everyone feels appreciated.
f. Unified Management = Ensuring that all staff are well treated and effectively coordinated to create the
optimal workforce.
CRITICAL THINKING
Type: E
21) The CIO is working on a plan to implement several strategic initiatives rapidly; however, each
requires technical skills that do not exist within the IT staff or are possessed by too few staff members.
The CIO has asked you to research staff augmentation options.
Prepare a report that includes:
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a) describes and differentiates the three generic groupings of workers,
b) describes each type of worker in each group (include four types for any group with more than
three),
c) describe the three most essential benefits for using non-full-time IT workers and your
justification for selecting each benefit, and
d) describe the three most potentially significant risks for using non-full-time IT workers and your
justification for selecting each risk.
NOTES:
The essay should discuss the ideas below from the chapter.
A- The types of IT workers can be grouped as shown in the table below.
a - Employee: Workers who are employed and receive benefits from the organization.
b - Contingent Worker: Workers with various contractual relationships with a company, but
each reports principally to a leader within the company, even if technically 'employed'
by a vendor.
c - Partner Staff: Workers from partner entities that provide specialized services to an
organization's IT function. While these staff members interact with other IT staff, their
primary allegiance is outside the contracting organization.
Employees
Types of IT Workers
Full-time workers
Part-time workers
Contract
executives or
managers
Contingent Workers
Consultants
Permanent
contingents
Outsourced
workers
Offshore workers
These workers are traditional employees with tenured employment and benefits.
These are regular employees who work a reduced workweek. This appears to be a
very rare type of IT work. "Part-time doesn't really work for us," said a manager.
"There's always too much to do. Only a few kinds of IT work, like quality assurance,
can be done part-time. The rest requires a more intense commitment."
These are individuals with specialized leadership skills hired for a specific term or
project with an individualized contract of varying duration. Often these individuals
are self-incorporated, protecting the hiring organization from having the worker
deemed an employee. Many project managers fall into this category.
These are highly skilled individuals who could be hired individually or through an
agency to fill gaps in an organization's resource pool. Typically, they are brought in
for a specific need or project, such as developing an enterprise architecture or
creating a data strategy.
These are generally long-term administrative staff, hired through an agency with
benefits from the agency, or seasonal staff, who join the organization at peak times
and who receive benefits accordingly.
These local IT workers are employees of an outsourcing vendor and are dedicated
either on or offsite to a particular project for development or maintenance. Many IT
developers fall into this category these days.
These are remote IT workers, often working in more than one country, who assist in
developing or maintaining a particular project or application or providing some sort
of support function, such as the Help Desk. Some companies use offshore vendors
who provide staff as specified in a contract; others have set up "captive" offshore
entities and hired full-time employees at that location for a fraction of the cost that
would be paid in North America. Typically, this work is more clearly delineated than
other in-house types of contingent work.
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Types of IT Workers
Freelancers
Interns
Retirees
Partner Staff
Entrepreneurial
student services
Implementation
partners
Cloud solution
vendors
Managed services
These are usually highly skilled individuals hired either directly or through a
freelancer platform to do a specific technical job. The focus group stressed that it is
rare for their companies to hire individuals and only do so if they knew an individual
well. Freelancer platforms aim to connect companies with skilled individuals around
the world to do very focused work, often on a competitive basis
These are students who work for a company during school breaks to gain
experience. Often, they have "hot" skills but lack business knowledge. This is an
opportunity for both companies and students to learn if they are a good fit for fulltime employment after graduation.
These are known individuals who can be brought back to work as needed and are
particularly valued for their subject matter expertise of the business and specific
applications.
These offer innovation services or the incubation of new offerings and are provided
by groups of students working under the aegis of a particular university and funded
by an organization or group of organizations.
These are companies with staff skilled in a particular application or type of software
(e.g., an ERP or a CRM system) and hired to provide these staff to help a company
set up this software and integrate it with other corporate software.
Similarly, cloud solution vendors will also provide skilled staff to help organizations
migrate or set up solutions in the cloud.
These are organizations hired to manage specific infrastructure services for an
organization, e.g., networks, telephony. Their staff may work at an organization, but
they report to the service provider.
B- The benefits for using non-full-time staff are below.
a - Lower Cost: Contingent and partner workers do not receive benefits such as health care,
vacations, pension contributions, and payroll taxes are avoided based on full-time
headcounts. There is also a general belief that administration time is shorter as
companies can bypass onboarding and performance reviews.
b - Flexibility: A more critical reason for newer types of IT work is flexibility. Organizations
do not always have enough work to retain specific skills. A quick response is often
required when such skills are needed, making the traditional hiring process less ideal.
c - Access to Specialized Skills: Contingent and partner staff enables companies to focus
more fully on crucial organizational objectives, competency gaps, or strategic projects.
This occurs because they can bring in specialized skills when needed or because nonemployee staff can be used for non-strategic work, releasing employees to work where
they can add the most value.
d - Try Before Buy: Contingent workers provide an opportunity for an extended job
interview, which helps managers better determine those to whom they would like to
make offers of permanent employment.
e - Easy to Fire: One of the most important reasons for using contingent staff is that it is
easier to release them if they are not needed or if they do not work out.
C- The risks for using non-full-time staff are below.
a - Increased Likelihood of Failure: The theory of joint probabilities (i.e., the more partners
involved in a solution, the greater the likelihood of its failure) describes one of the most
significant risks for companies. Building an ecosystem with numerous different types of
workers and partners magnifies this problem. The risk is somewhat mitigated by
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modularization and the use of APIs to facilitate integration through pre-agreed
standards.
b - Regulation: With the growing use of contingent workers, governments around the world
are looking at regulations to provide more security for them, and this type of
employment is coming under the increased scrutiny of taxation agencies who take a dim
view of companies avoiding tax by utilizing 'contingent' workers who are, in fact, longterm employees.
c - Fragmentation: With so many different types of workers and contractual arrangements,
there are considerable risks to a company stemming from fragmented policies,
practices, and governance. Lack of consolidated resourcing practices can lead to poor
regulatory compliance, inadequate planning, poor quality control, over-spending or
disjointed spending on staff, and problems with business continuity.
d - Loss of Knowledge: Over-dependence on contingent or partner staff can result in the
loss of knowledge, trade secrets, and intellectual property in the longer term. In areas
where non-employees are widely used, knowledge gaps or silos can develop that can
hamper collaboration and decision-making.
e - Accountability: Non-employees have no strong connection to a company and, therefore,
no vision for it. This can be a severe risk for ensuring staff does its best for the
organization.
Type: E
22) The CIO is seeking methods to improve the business value from the IT budget. Her strategy includes
improving the productivity of the IT staff and has asked you to develop a staffing plan.
Prepare a plan that includes:
a) a description of the two gaps in using non-full-time staff,
b) a guideline for the type of worker that should be assigned to a type of IT work (include three
work types for each type of worker), and
c) describe the three most essential practices for getting the most out of any IT worker and your
justification for selecting each practice.
NOTES:
The essay should discuss the ideas below from the chapter.
A - The gaps in using non-full-time staff are below.
a - Lack of Strategic Approach to Talent Acquisition: The general unwillingness of leaders to
address full-time talent acquisition strategically also applies to acquiring contingent.
Determining what workforce capabilities are needed now and in the future is one of the
most challenging problems for leaders. Most organizations do not have an inventory of
skills nor identified the emerging or hot skills that are likely to be needed soon;
therefore, they resort to headcount planning.
b - Lack of Integrated Talent Management Processes: An even more significant challenge
for organizations is the lack of integrated processes, practices, and oversight for all
talent within IT. In general, few organizations have holistic processes to provide the
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integrated data and cross-functional leadership needed to manage the multiple
relationships involved in today's IT workplace. This can lead to confusion between
procurement and HR practices, multiple redundant vendor relationships, nontransparent workforce spending information, lack of guidance for managers regarding
when to hire what type of person, and poor management of the risks involved.
B - A Framework for IT activities to assign to workers is below.
Segments of Work Appropriate for Different Types of IT Workers
Fulltime
Contingent
Partners
• Developing processes
• Project management
• Managed
and frameworks, e.g.,
services for
• Quality assurance
architecture, network, • Support
telephone,
hardware, and
infrastructure,
• Development
software, security, APIs • Testing
and networks
• Strategic visioning
• Integration
• Operational needs requiring flexibility
services
• Core activities requiring • Specialized skills, e.g., video, graphics, writing
• Cloud services
hard to replace
• Hot skills needed immediately
enterprise knowledge
• Small, relatively modular assignments
• Commodity work
C - The practices for getting the most out of any IT worker are below.
a - Provide Leadership for Staffing Issues: Simply putting a senior leader in charge of all
talent management practices coordinating them and involve the relevant stakeholders
would be a huge step forward. This leader should identify gaps in processes, ways in
which current practices are not working well, provide some guidance for others about
when and how to use contingent workers and partners, how best to manage them, and
explicitly identify and mitigate the risks involved.
b - Unified Management: One of the leader's primary goals will be to understand how
different types of staff are currently managed and develop ways of ensuring that all staff
are well treated and effectively coordinated to create the optimal workforce. With
multiple stakeholders involved with different IT workers, each with their own goals,
problems inevitably arise. As a result, IT staff of all types can feel unfairly treated.
c - Treat Everyone as Part of the Team: Making all staff part of the team is essential to
creating a productive and engaged workforce.
d - Develop Face-to-Face Relationships: It is essential to develop face-to-face relationships
with offshore and third-party partners.
e - Ensure Provisioning: Many organizations neglect essential contingent provisioning tasks,
such as security badges and systems IDs, and this gap needs to be addressed.
ANSWERS:
1. A
2. A
3. B
4. A
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5. F
6. A
7. E
8. B, E
9. C, F
10. D
11. C
12. A, D
13. A, E
14. C, D
15. F
16. E
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Chapter 18, Managing Emerging Technologies
QUESTIONS:
EASY
1) Is this idea true or false:
When evaluating emerging technology, a high level of economic rigor will mitigate uncertainty.
A. TRUE
B. FALSE
2) Is this idea true or false:
The exploration of emerging technologies can or should be outsourced.
A. True
B. False
3) Is this idea true or false:
If a new technology does not attract a business sponsor, it should generally be shelved.
A. True
B. False
4) Is this idea true or false:
The traditional Systems Development Lifecycle (SDLC) approach to IT work is appropriate for ETs.
A. True
B. False
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5) Is this idea true or false:
Before determining how to manage ETs, it is essential to answer the question, “where do we want to be
in the marketplace?”
A. True
B. False
MEDIUM
Type: MR
6) Select all the items below that are not a component of managing emerging technologies.
A. Identification
B. Assessment for business and technical potential
C. Rapid implementation across the organization
D. Connection with real business needs and opportunities
E. None of the above
7) Choose the term below that best completes this sentence:
___________ are technologies that vendors are selling to create demand.
A. Push technologies
B. Pull technologies
C. Decentralized technologies
D. Federated technologies
E. None of the above
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8) Choose the term below that best completes this sentence:
_________ are technologies that are acquired by the business for their specific purposes without
reference to formal IT processes.
A. Push technologies
B. Pull technologies
C. Decentralized technologies
D. Federated technologies
E. None of the above
9) Choose the term below that best completes this sentence:
____________ are technologies that business functions or application development request to meet
their specific needs.
A. Push technologies
B. Pull technologies
C. Decentralized technologies
D. Federated technologies
E. None of the above
Type: MR
10) Choose the pair of terms below that best completes this sentence:
Assessment is important because ___________ technologies are characterized by a low ________ ratio.
A. emerging; noise
B. emerging; signal-noise
C. federated; noise
D. push; signal-noise
E. None of the above
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Type: MR
11) Select all the types of uncertainty below that need to be addressed before moving forward with an
emerging technology.
A. Consumer Uncertainty
B. Economic Uncertainty
C. Governance Uncertainty
D. Market Uncertainty
E. Technological Uncertainty
F. None of the above
12) Choose the pair of terms below that best completes this sentence:
An approach to reducing __________ uncertainty is __________ (e.g., moving from assessment to pilot
to a decision about adoption).
A. economic; failing fast
B. economic; piloting
C. market; piloting
D. technological; failing fast
E. technological; piloting
F. None of the above
Type: MR
13) Select all the items below that are not components of effectively managing emerging technologies.
A. Assessing business and technical potential
B. Connecting to business needs and opportunities
C. Ensuring necessary practices and skills exist
D. Governing
E. Identifying ET
F. Provisioning practices exist
G. None of the above
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Type: MR
14) Select all the factors below that can help determine the pace of change for an organization.
A. Competitors’ products
B. Corporate philosophy
C. Industry
D. Market aggressiveness
E. Technology maturity
F. None of the above
Type: MR
15) Select all the non-traditional IT capabilities below that are not needed for dealing with emerging
technologies.
A. Comfort with uncertainty
B. Flexibility of approach
C. Partnering with business
D. Relationship management skills
E. Research skills
F. None of the above
Type: MR
16) Select all the practices below that should be adopted for emerging technology work.
A. Outsource the work to an established technology firm.
B. Partner with vendors to support the technology transfer process.
C. Reduce risk by involving multiple organizations with the work.
D. Work with vendors to identify new technologies and opportunities.
E. None of the above
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Type: MR
17) Select all the practices below that are not recommended for managing emerging technologies.
A. Adopt the new technology based on its hype
B. Be brutal and quick
C. Educate others
D. Go with the energy
E. Make someone responsible for all ET work
F. None of the above
Type: MR
18) Select all the skills below that are needed for effective ET management.
A. Agility
B. Budget Forecasting
C. Open-mindedness
D. Project Planning
E. Requirements Management
F. None of the above
HARD
Type: MT
19) Match each term below with its definition.
a. Amplifying = Working with business to understand where and how value could be delivered by a new
technology
b. Assessment = None
c. Early ET = The stage of the lifecycle characterized by faint signals and overwhelming noise
d. Low Signal-Noise Ratio = Difficult to interpret information and discern meaningful insights
e. Noise = Factoids, assertions, and beliefs about a technology that are not meaningful signals
f. Signal = An indicator of value to a firm’s core business
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Type: MT
20) Match each word below with a lettered blank in the following sentence:
Assessing any (A) technology involves determining its (B) for the (C) and its (D) readiness through a (E) of
the business and a (F) of technology.
a. broad appreciation = F
b. business = C
c. decentralized = None
d. deep knowledge = E
e. emerging = A
f. relevance = B
g. technical = D
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CRITICAL THINKING
Type: E
21) The CIO and Chief Marketing Officer just completed a briefing with a trusted technology vendor.
After the meeting, they called you and other senior members of their departments to discuss the
newest technology trends and how the competition is rapidly adopting these technologies. Historically,
your organization has not been successful with the early adoption of such technologies. You have been
asked to prepare a report for the CIO and CMO.
The report is to contain the information below.
A - A definition of emerging technologies.
B - How can the organization identify an emerging technology?
C - How can we decide if we should be adopting an emergent technology?
NOTES:
The essay should discuss the ideas below from the chapter.
A- Definition of emerging technologies (there is no consensus)
a - A technology that is not yet mature in the market.
b - Any technology that the organization is not using yet.
c - It can be differentiated between consumer and infrastructure technologies.
B- Identifying an emerging technology
a - Consulting various sources:
i. Vendor and industry conferences, events, and forums
ii. White papers
iii. Research and analysis boards (e.g., Forrester, Accenture, Deloitte, Gartner)
iv. Vendor and consultants’ reports on future trends
v. Business partners
vi. Research by central architecture groups
b - Observing Push Technologies: These are technologies that vendors are pushing to create
demand.
i. Watching what is being used in the market
ii. Talking with peers in their industry or different industries
iii. Addressing technology currency
c - Responding to Pull Technologies: These are technologies that business functions or
application development requests to meet their specific needs.
d - Screening for Decentralized Technologies: These are technologies acquired by the
business for its specific purposes without reference to formal IT processes.
C- Assessing Emerging Technologies
a - Characterized by a low signal-noise ratio
i. Signal: An indicator of value to a firm’s core business
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ii. Noise: factoids, assertions, and beliefs about a technology that are not
meaningful signals.
b - Amplifying signals involves working closely with the business to understand better
where and how value could be delivered with new technology.
c - Assessment of any ET involves determining both relevance for the business and
technical readiness.
d - Addressing the critical question of: Should we be doing this?
i. Market Uncertainty: This is ambiguity about how the market will respond to
innovative new technology or application. One of the essential aspects of
determining this is assessing what complementary technologies are available to
make a particular innovation an attractive proposition.
ii. Technological Uncertainty: This is ambiguity about the maturity, complexity, or
interoperability of any new technology.
iii. Economic Uncertainty: Many organizations require a business case before
proceeding with an ET but setting too high a hurdle rate for these innovations
will not mitigate uncertainty and only result in a loss of innovation. The key is to
fail fast. From assessment to pilot to a decision about broader adoption should
only take about three months.
Type: E
22) During the IT leadership monthly review, the CIO announced that the organization was making a
strategic change from a mid-pack to a leading-edge technology adopter. After much discussion, the
team agreed that the IT division had a poor track record for adopting new technologies. The CIO asked
you to lead a team to explore how the IT division needed to transform to implement the strategy.
Prepare a paper that contains the information below.
A - Describe four new skills staff need for dealing with emerging technologies.
B - Describe the appropriate use of vendors and partners in working with emerging technologies.
C - Describe four recommended practices for effective emerging technology management; justify
the selection of these practices.
NOTES:
The essay should discuss the ideas below from the chapter.
A - Skills needed to deal with emerging technologies are below.
a - Strong business knowledge and ability to speak business language
b - Research skills
c - Visioning skills
d - Ability to partner with the business
e - An open mind, a flexibility of approach, and a comfort with uncertainty
f - Ability to explore alternatives and take advantage of serendipity
g - Relationship management skills
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B - Use of Vendors
a - Most effective when helping companies identify new technologies and opportunities
b - Most effective in supporting the technology transfer process
c - Not an activity that can or should be outsourced (requires significant business
knowledge)
d - Partitioning ET work across more than one organization has been shown to decrease the
likelihood of a successful outcome and increase the risk involved
C - Recommendations for getting started in ET Management
a - Make ET Management Someone’s Job: Companies that are innovative with ETs have
made it a priority and assigned resources to it. These may be in IT but may also be in a
different organization that works closely with IT. it is essential to note that the job is to
coordinate, facilitate, and leverage ET knowledge, not do all this work themselves.
b - Always tie ET Adoption to Business Value: All too often, business or IT staff can fall prey
to the hype of spiffy new technology. ET management activities should be designed to
help change mindsets in the organization about the possibilities that new technology
enables while never losing sight of the fact that it is the value that the technology could
provide that is the goal of any initiative.
c - Educate Others: Many people need education to see the possibilities of new technology.
Prototypes, vendor visits, special events with thought leaders, and multi-disciplinary
innovation sessions are helpful ways to encourage others to keep open and thoughtful
minds.
d - Go with the Energy: If a new technology does not attract a business sponsor, it should
generally be shelved.
e - Be Brutal and Quick: With the market moving so quickly, an ET evaluation process must
be designed to make rapid decisions. The goal of ET management should be to identify a
wide range of potential technologies and then rapidly filter them for business relevance,
technical readiness, and economic viability to focus on the very few that are going to
deliver the most value to the organization.
f - Do Not Downplay Uncertainty: Many companies downplay uncertainty either by setting
a high hurdle rate for a new technology to be approved or assuming that rigorous
execution will mitigate it. The first approach can prevent promising new technologies
from being adopted, while the second can lead to the implementation of technologies
that will not deliver the desired value.
ANSWERS:
1. A
2. B
3. A
4. B
5. A
6. C
7. A
8. C
9. B
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10. B
11. B, D, E
12. A
13. D, F
14. B, C, D
15. F
16. B, D
17. A, E
18. A, C
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Chapter 19, Information Security and Enablement
QUESTIONS:
EASY
1) Is this idea true or false:
Traditional security practices can inhibit an IT organization's transformation to agile solution delivery.
A) TRUE
B) FALSE
2) Is this idea true or false:
Data losses are the most significant security concern to most organizations.
A) TRUE
B) FALSE
3) Is this idea true or false:
Since the majority of security threats are external, employees should be trusted and monitored lightly.
A) TRUE
B) FALSE
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MEDIUM
4) Choose the pair of terms below that best completes this sentence:
Information security management is a set of _________ for managing the processes, tools/technology,
and policies necessary to respond to a rapidly changing _________ threat environment.
A. procedures; business
B. procedures; cyber
C. strategies; business
D. strategies; cyber
E. techniques; cyber
F. none of the above
5) Choose the term below that best completes this sentence:
CIOs are challenged with balancing information ____________ needs with the timely technology
delivery to the business.
A. availability
B. governance
C. management
D. security
E. strategy
F. None of the above
6) Choose the pair of terms below that best completes this sentence:
The primary goal of information security is to mitigate _________ and prevent _________ loss
A. attacks; asset
B. hacking; data
C. risk; revenue
D. spam; information
E. spoofing; market
F. None of the above
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Type: MR
7) Select all the organizational activities below that are not closely related to information security.
A. Advertising
B. HR
C. Internal audit
D. Legal
E. Shipping
F. None of the above
8) Choose the pair of terms below that best completes this sentence:
Information security typically reports to the _________ through its _________ Committee.
A. Board of Directors; Enterprise Oversight
B. Board of Directors; Enterprise Risk
C. Chief Executive Officer; Technology Oversight
D. Chief Information Officer; Information Security
E. Chief Information Security Officer; Security Oversight
F. None of the above
Type: MR
9) Select all the IT functions that security does not need to be involved.
A. Development of processes and projects
B. IT development
C. IT planning
D. Technology acquisitions
E. Vendor reviews
F. None of the above
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Type: MR
10) Select all the examples below of the challenges information security has coordinating with other IT
groups.
A. Aligning security functions with internal risk and audit.
B. Aligning security functions with privacy.
C. Aligning security functions with purchasing.
D. Aligning security with marketing campaigns.
E. Consistently including security in IT development.
F. None of the above
Type: MR
11) Select all the steps below that are not part of the Risk Management Framework.
A. Assess Security Controls
B. Authorize Information System
C. Categorize Security Controls
D. Implement Information System
E. Monitor Security Controls
F. Select Security Controls
G. None of the above
12) Choose the pair of terms below that best completes this sentence:
IT should be _________ not _________.
A. security enforcers; passive partners
B. gatekeepers; security guards
C. enablers; risk mitigators
D. enablement; police enforcers
E. None of the above
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Type: MR
13) Select all the agile practices below that help to clarify security issues earlier in development.
A. Embed security advisors into the team
B. Iterative development enables earlier assessment of events
C. Prototypes aid in understanding security issues
D. Retrospectives enable adjustments in the development process
E. None of the above
14) Choose the term below that best completes this sentence:
When conflicts between security and enablement arise, the best way to resolve them is to _________
the conversations.
A. adjudicate
B. escalate
C. resume
D. table
E. None of the above
15) Choose the term below that best completes this sentence:
How to ______________ users remains a perpetual problem that has become worse with the
introduction of mobility, multiple access devices, and the increasing number of external partners in
organizations.
A. authenticate
B. authorize
C. log
D. monitor
E. validate
F. None of the above
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HARD
Type: MT
16) Match each word below with a lettered blank in the following sentence:
As organizations' (A) have (B), particularly since (C) technologies were introduced, (D) (E) has (F) and
progressed.
a. grown = B
b. information = D
c. IT expenses = None
d. matured = F
e. mobile = C
f. security = E
g. vulnerabilities = A
Type: MT
17) Match each information security function below with its description
a. Access Management = Manage who can access systems, data, and networks and at what levels.
b. Security Administrator = None
c. Security Advice = Assess technologies and proposed data uses to determine if they are dangerous or
risky.
d. Security Architecture = Address identity management tools and practices and product selection and
setting standards and policies for IT practitioners.
e. Security Governance = Establish and maintain security processes and practices and identify who is
responsible for signoffs and security-related decisions.
f. Security Operations = Verify that an organization's people, systems, and buildings are secure.
g. Threat Monitoring = A real-time function that continually watches for security breaches.
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Type: MT
18) Match each word below with a lettered blank in the following sentence:
Security (A) are often applied (B) and without a clear view of their (C) on (D) because organizations take
a risk approach (E) a security one in assessing a (F).
a. controls = A
b. impact = C
c. inconsistently = B
d. IT enablement = D
e. new technology = F
f. rather than = E
g. with = None
Type: MT
19) Match each information security improvement practice below with its description.
a. Adopt NSA Framework = None
b. Beginning with a Dialogue = Getting comfortable with the shifting risk paradigm.
c. Building in Layers = Simplify security by taking access and authentication management out of systems.
d. Collaborative Planning = Co-evolve security and development.
e. Partnering = Adopt a multi-disciplinary, multi-stakeholder approach for all security issues.
f. Protecting Data = The number one security priority; however, years-old issues must be addressed.
g. Understanding Trade-offs = Contextual analysis of the nature and severity of risk from various
perspectives.
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Type: MT
20) Match each best practice below for improving information security practices with its description.
a. Develop Metrics = Provide a mechanism to monitor and improve safety and review safety with
internal audit.
b. Focus on Education = Create a clear common understanding of security expectations and behaviors.
c. Get Ready for Ecosystems = Dong business with third parties who do business with others is
challenging to manage.
d. Monitor Industry Practices = None
e. Support Innovation = Balance short and long-term cultures and allow some leeway in security
controls.
f. Work at a Higher Level = Work with regulators and participate in forums to change overly complex or
ineffective regulations.
CRITICAL THINKING
Type: E
21) Presently, your organization has a single Chief Information Security Officer (CISO) who reports to the
Chief Information Officer (CIO) and is responsible for managing the information security program. The
CIO believes that the growing complexity of organization security requires that the CISO's duties be
separated into sub-functions. You have been asked to create a plan for the organization's information
security management program.
Write a plan that describes the topics below.
a - Identify and describe four security challenges.
b - Identify and describe five sub-functions for the information security management program.
c - Explain how these sub-functions can address the identified challenges.
d - Justify your choice of each challenge and sub-function.
NOTES:
The essay should discuss the ideas below from the chapter.
A - General Security Challenges include:
a - lack of coordination between security and other IT groups,
b - emphasis organizations place on different aspects of security,
c - the tension between sources of threat,
d - appropriateness of using risk to assess security needs, and
e - security requirements are not static, and context matters.
B - Specific Security Challenges are below.
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a - Authentication: How to authenticate users remains a perpetual problem that has worsened
with the introduction of mobility, multiple access devices, and the increasing number of
external partners in organizations.
b - Access Control: Access controls are currently embedded in different systems, inhibiting
consistency and preventing ease of use.
c - Data Access and Use: Now that many companies are doing IT work with external partners
and vendors, they need to figure out how to assess the security of other organizations so
they can share data. At present, the common security position is loss prevention. Newer
views of privacy are pushing toward allowing customers to control their data and how it is
shared rather than having the company do it. Finally, there is a need to distinguish between
viewing and using data.
d - Physical Access: Surprisingly, the group had many complaints about how physical office
space security is handled.
e - Security Tools: Although these have come a long way, more tools are always needed as
security issues arise. Some security tools, like virus checkers, are now straightforward but
are needed as deterrents. Others, such as encryption, are still problematic because they
continue to cause performance issues. Furthermore, more tools for monitoring information
security in the cloud are also needed.
The sub-functions of the information security function are below.
A- Security Governance: This establishes and maintains security processes and practices and
identifies who is responsible for signoffs and security-related decisions.
B- Access Management: This manages who can access systems, data, and networks and at what
levels (e.g., use, update, administration).
C- Threat Monitoring: This is a real-time function that is continually watching for security breaches.
D- Security Operations: This function is responsible for verifying that an organization's people,
systems, and buildings are secure. It covers both physical access and testing (both in-house and
by third parties) to ensure that employees follow security procedures and that no unauthorized
access is allowed.
E- Security Advice: These specialists assess technologies and proposed data uses to determine if
they are dangerous or risky, often providing a formal vulnerability assessment.
F- Security Architecture: This addresses identity management tools, practices, and product
selection and setting standards and policies for IT practitioners.
Type: E
22) The Board of Directors is concerned that the security threats are changing and the organization is
unprepared. The CISO has asked you to create an approach to improve the organization's security
practices.
Prepare a report that addresses the topics below.
a - Identify and describe four practices that organizations in your industry are using to improve
information security practices.
b - Identify and describe four practices that management should research and prepare to address
to improve information security practices.
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c - Justify your choice of each challenge and sub-function.
NOTES:
The essay should discuss the ideas below from the chapter.
The current practices to improve information security are below.
A - Authentication Management Out of Systems: This allows organizations to layer on new security
capabilities in context.
B - Protecting Data: Data protection is the number one security priority but addressing it requires
addressing issues that have been problematic for years. There are also second-order issues
related to data ownership and who can sign off on access. Both these require a more rigorous
information classification scheme than is currently used in most organizations. Since data has
been replicated in different systems over time, organizations need to know where their data
resides.
C - Beginning with a Dialogue: Organizations need to get comfortable with the shifting risk
paradigm. Doing this requires having more thoughtful conversations with all the parties involved
and developing a widespread understanding of the real risks involved.
D - Understanding Trade-offs: Simply identifying risks is no longer good enough when almost
everything an organization does with technology bears many different types of risks. The goal of
a dialogue is to promote "smart risk," i.e., understanding the trade-offs. Trade-offs involve
analyzing the nature and severity of a risk in context, looking at it from different perspectives
(e.g., privacy, security, contractual), and understanding the involved functionality. Such analysis
enables decisions about a risk to be moved to the proper level and adjusting risk practices as
needed.
E - Fixing Processes: Although security processes are essential, dialogue should come first. Such a
framework establishes accountability, and accountability will change the conversations. All too
often, those developing a process do not feel the pain of its constraints. Accountability leads to
better decisions and better architecture. Processes should also ensure that security functions
are involved early, and policies are applied consistently.
F - Partnering: Effective security and effective enablement should not be opposed to each other.
Security issues should not be simply a check box but a partnership where all stakeholders are
involved early in the process. In short, organizations should adopt a multi-disciplinary, multistakeholder approach for all security issues.
G - Collaborative Planning: The best way to ensure that security and development co-evolve is to
plan for them collaboratively. One crucial way to identify if a security policy is ineffective is to
review the requested security waivers. An excellent start to the planning process is
understanding how an organization's systems are connected at an enterprise level. Then,
security requirements can be built into a roadmap that is reviewed regularly and used to
develop a shared understanding of security needs. Similarly, a set of security requirements for
cloud providers should also be developed collaboratively.
H - Using Prototypes or Agile Development: New agile development methods also help clarify
security issues earlier in development. Their emphasis on iterative development means that
everyone can assess events in earlier iterations and make modifications as a project evolves into
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an enterprise-class initiative. Agile methods also embed security advisors into the development
team, and their emphasis on peer review builds consistency.
The practices for managers to research and prepare for improving information security practices are
below.
A - Focus on Education: Becoming smarter about information security and its risks is a big learning
curve for everyone. Ideally, all levels of employees, including senior leaders, should participate
so there is a clear shared understanding of security expectations and behavior.
B - Work at a Higher Level: There is still much information security work to do outside the
organization. Companies need to work with regulators and participate in forums to change
ineffective or overly complex regulations.
C - Support Innovation: Innovation is a fact of life in organizations; therefore, it is necessary to
balance short- and long-term cultures and allow leeway in security controls during the
innovation process.
D - Develop Mechanisms of Trust: The more we trust each other, the more security problems go
away, which is valid at the individual, functional, and corporate levels. Working together and
establishing shared goals and understanding generates trust.
E - When in Doubt, Escalate: When conflicts between security and enablement arise, the best way
to resolve them is to escalate the conversations. If a security problem occurs, one of the best
ways to modify behavior is a requirement to report it to the Board or a Board committee.
F - Develop Metrics: You cannot manage what you cannot measure, and security metrics are still
inferior. Ideally, metrics provide feedback to monitor and improve safety and a mechanism to
review safety with internal audits. Metrics also provide a basis for continually monitoring how
well security practices are doing and determining if the organization needs to invest more.
G - Get Ready for Ecosystems: Increasingly, companies are doing business with third parties, and
they are then doing business with others. The security implications of these newer business
models are challenging to manage but will only worsen. One approach some companies are
looking at is establishing a consortium of trusted providers were, once admitted, the entire
group can share data.
ANSWERS:
1. A
2. A
3. B
4. D
5. D
6. C
7. A, E
8. B
9. F
10. A, B, E
11. C, D
12. D
13. A, B, C
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14. B
15. A
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Chapter 20, Developing New IT Talent
Management Capabilities
QUESTIONS:
EASY
1) Is this idea true or false:
Since managers dislike personnel and workforce issues, there is a lack of attention to developing a
strategic and integrated people plan.
A) TRUE
B) FALSE
2) Is this idea true or false:
An organization's acquisition and development strategies contribute to diversity in IT.
A) TRUE
B) FALSE
3) Is this idea true or false:
In the new IT world, technical skills are more important than soft skills due to the rapidly increasing
complexity of technology.
A) TRUE
B) FALSE
4) Is this idea true or false:
Job analysis is one of the most neglected aspects of hiring, as it ensures candidates are well-aligned with
a position.
A) TRUE
B) FALSE
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MEDIUM
Type: MR
5) Select all the reasons below that studies have identified are barriers to IT success.
A. Lack of access to resources
B. Lack of access to the right skills
C. Lack of alignment between IT and the Business Strategy
D. Lack of an IT Roadmap
E. Lack of an IT Strategy
F. All the above
Type: MR
6) Select all the reasons below that are not reasons for organizations resolving the IT talent
management crisis.
A. Capabilities to attract and acquire qualified people
B. IT Leadership's lack of diversity
C. Lack of talent management innovation
D. Limited pool of qualified people
E. Retention problems
F. None of the above
7) Choose the tuple of terms below that best completes this sentence:
Although most organizations aim to address the well-known 'hygiene factors' that prevent employee
________, few have active programs to promote the 'motivator factors' that create ________ and
_________ to their work.
A. absences; productivity; long tenure
B. dissatisfaction; high satisfaction; strong commitment
C. dissatisfaction; long tenure; strong commitment
D. separation; retention; dedication
E. None of the above
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Type: MR
8) Choose the items below that the focus group did not identify as important to IT professionals.
A. Feeling valued
B. Having challenging work
C. Having meaningful work
D. Having rewarding work
E. Providing state-of-the-art tools
F. None of the above
Type: MR
9) Select all the items below that are not a Hygiene Factor in employee satisfaction and motivation.
A. Growth
B. Quality of supervision
C. Status
D. Working conditions
E. Work-life balance
F. None of the above
Type: MR
10) Select all the items below that are not a Motivator Factor in employee satisfaction and motivation.
A. Opportunity for advancement
B. Positive interpersonal relationships
C. Recognition
D. Salaries and other benefits
E. Sense of personal achievement
F. None of the above
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11) Choose the pair of phrases below that best completes this sentence:
An organization's ability to execute on its business _________ and respond rapidly to changes is directly
related to its workforce's set of _________.
A. portfolio; projects, expertise, and tools
B. priorities; skills, behaviors, and competencies
C. priorities; skills, projects, and tools
D. strategy; expertise, tools, and IT processes
E. strategy; skills, behaviors, and competencies
F. None of the above
Type: MR
12) Select all the capabilities that IT staff do not need due to the migration of technology skills
throughout organizations.
A. Be forward thinkers
B. Offer collaborative skills
C. Provide a transformative vision
D. Support change
E. None of the above
Type: MR
13) Select all the items below that are not a factor in creating new organizational capabilities.
A. Behavior and Structure
B. Competition
C. Laws and Regulations
D. Strategy
E. Technology
F. None of the above
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Type: MR
14) Select all items below that are not a primary objective of a talent management strategy.
A. Branding and Talent Acquisition
B. IT Employee Development and Retention
C. Strategic Vision Alignment
D. Strategic Workforce Planning
E. None of the above
15) Choose the term below that best completes this sentence:
An organization's __________ is an expression of its culture, values and beliefs, the lifestyle that goes
with employment, and the nature of the work.
A. Acquisition pitch
B. IT workforce approach
C. Talent brand
D. Talent management strategy
E. None of the above
Type: MR
16) Select all the items below that are not a recommended part of an acquisition strategy.
A. Should be holistic and consider a variety of approaches for attracting talent
B. Should focus on corporate culture and unique and exciting work
C. Should ignore internal candidates
D. Should include referrals
E. Should use the same language to attract women and men
F. None of the above
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Type: MR
17) Select all the items below that are not a characteristic of an employee-centric organization.
A. Assists with achieving a good work-life balance
B. Empowers employees to make decisions
C. Encourages a management open-door policy
D. Offers regular training
E. Provides career advancement opportunities
F. None of the above
Type: MR
18) Select all the items below that are not ways that technology can help with talent management.
A. Collecting Metrics
B. Enhancing advertising effectiveness
C. Providing specialized tools
D. Reducing compliance risk
E. Supporting processes
F. None of the above
Type: MR
19) Select all the items below that are not a focus group recommendation for improving talent
management.
A. Build versatilists
B. Consider the bigger picture
C. Develop internal staff with specific technical skills
D. Increase use of social media
E. Pay more attention to job fit
F. None of the above
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HARD
Type: MT
20) Match each word below with a lettered blank in the following sentence:
Developing a (A) management (B) forces business (C) to understand how to (D) their (E) and access (F)
pools to drive business (G).
a. effectively leverage = D
b. external talent = F
c. leaders = C
d. plan = none
e. strategy = B
f. talent = A
g. value= G
h. workforce = E
Type: MT
21) Match each organizational area below that talent management strategies will change with its
explanation.
a. Continual Revaluation = Understand every process involved in talent management from acquisition,
development, retention, and termination.
b. Culture and Structural Changes = Unlike the traditional risk aversion, hierarchical leadership, and work
silos, leaders must foster experimentation, aim for speed, embrace risk, create distributed leadership
structures, and encourage collaboration.
c. Internal Development = The number one retention vehicle for IT professionals.
d. Meaningful Work = IT professionals expect their employers to offer work that is not routine, that
makes a difference in people's lives, and that is challenging.
e. Non-financial Factors = Factors that attract and retain talent include innovation, workspace, lifestyle
perks, availability of technology.
f. Recruitment and Onboarding Processes = Once hired, a person needs to be integrated into a fully
functioning team member.
g. Understand the Talent Marketplace = None
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CRITICAL THINKING
Type: E
22) During the weekly staff meeting, the CIO discussed the challenges of staffing the recently approved
high-priority projects. The CIO explained that he had been trying to hire the staff needed for the
projects; however, HR was not finding appropriate candidates. As the meeting ended, the CIO asked you
to remain. You discussed the challenges of working with IT and the current IT talent management
strategy. At the end of the discussion, the CIO asked you to prepare a report for HR that explains the
skills needed by IT staff.
Prepare a report that covers the topics below.
a - Describe three challenges with IT talent management.
b - Describe three New Skills needed by IT staff; provide at least two examples of each skill.
c - Describe the three factors from which these new capabilities arise
NOTES:
The essay should discuss the ideas below from the chapter.
The challenges with IT management are below.
A- IT's biggest complaint is that HR does not understand IT's needs.
B- HR is highly bureaucratic and fails to recognize the specific needs of IT.
C- Once hired, people often get pigeon-holed in a specific role.
D- We need more cross-training, but it is an uphill battle.
E- Retention is rarely actively managed.
F- No one in the organization owns talent management.
G- There is a lack of meaningful attention to developing a strategic and integrated people plan
because personnel and workforce are the issues that managers dislike most about their job.
There is also a lack of clear understanding of the value of formal workforce planning and of the
expertise to develop and execute a people strategy.
The Categories and New Skills for IT Staff are below.
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The factors from which new capabilities arise are below.
A - New Strategies: Organizations need to think more strategically about talent management in
many ways. IT workforce transformation must be elevated to the level of business impact and
risk with a broader recognition of its impact on an organization's overall competitive status,
growth, and profits. Key stakeholders must also be engaged to think differently and more
creatively about it. Furthermore, leaders will need a much deeper understanding of their
existing skills and competencies and their company's future course.
B - New Behaviors and Structures: IT structure and culture must be redesigned or influenced to
more fully reinforce the needs of a digital workforce. IT organizations are often structured into
silos reflecting the needs of a workforce with more traditional IT skills. Developing digital
capabilities means that activities, people, culture, and structure must all be in sync across
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internal and external organizational boundaries and more closely aligned with company
strategy. Moreover, these must be more agile and responsive to changing demands.
C - New Technologies: These must be used to support this alignment and strategy and speed up
processes. Improved solutions are needed to provide essential information and insights to
leaders about talent management issues, better integrate the work of IT leaders and HR, and
enable more holistic management of talent.
Type: E
23) The CIO found your report for HR helpful in addressing the project staffing shortfall. After holding
discussions with HR, the CIO that the IT Talent Management Strategy should be updated and asked you
to create a framework for revising the strategy.
Create a report that discusses the topics below.
A - Identify and describe the three primary objectives of a Talent Management Strategy.
B - Identify and describe four behaviors and structures that the new strategy will cause to be
changed.
C - Provide four practices that management should adopt to improve the talent management
capability needed for the new strategy.
NOTES:
The essay should discuss the ideas below from the chapter.
The objectives of a talent management strategy are below.
A - Strategic Workforce Planning: Any strategy must start with a clear vision of its future and its
competencies to achieve its goals. Thus, digital business strategic planning is closely linked with
IT strategic workforce planning. It is essential to understand which types of expertise will help
the organization build a competitive advantage.
B - Branding and Talent Acquisition: Organizations and IT functions have a talent brand, which
expresses the organization's culture, values, beliefs, the lifestyle that goes with employment,
and the nature of the work and is somewhat different from a company's overall brand. The
Talent Brand aids potential employees in deciding, "Do I want to work here?" It is a factor in
talent retention because it affects the fit between the company and its employees.
C - IT Employee Development and Retention: These strategies establish a career path development
framework aligned with the future workforce's IT competencies. Overcoming today's talent gap
means companies must develop their talent and revamp talent acquisition strategies.
'Employee-centric' organizations offer regular training, career advancement opportunities,
assistance with achieving a good work-life balance, and empower employees to make decisions.
The areas where behaviors and structures will likely need to change are below.
A - Recruitment and onboarding processes: Process fairness, including transparency,
communication, and timeliness, is a critical factor in why candidates accept or reject a job offer.
Transparency about what the job entails is essential, which is key to talent acquisition efforts
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and retention. Most candidates who leave a job within the first year do so because of poor job
or cultural fit. Complexity is also an issue.
B - Internal Development: IT career development is the number one retention vehicle for IT
professionals. Companies, therefore, need formal career development programs with defined
career paths and competency levels, funding for training, managers who can coach and mentor,
and informal development opportunities. The essential on-the-job development practices
include the opportunity to work on high-stakes, high-visibility jobs or innovative projects. Formal
classroom training is also valued.
C - Culture and Structural Changes: Companies typically realize only 63 percent of the potential
value of their business strategies, and inadequate human capital practices play a significant role
in this lost value. Traditionally, companies have had a low appetite for risk, functioned with a
hierarchical leadership structure, and performed work in silos. With digital business, leaders
must foster experimentation, aim for speed, embrace risk, create distributed leadership
structures, and encourage collaboration. Making such changes means that leaders must be
intentional with culture, rethink traditional working models, invest in talent at all levels, bolster
risk-taking and collaboration, and provide employees with the resources and opportunities
needed to improve their digital skills.
D - Non-financial Factors: Although compensation is significant, research shows that other more
important factors will attract and retain talent, such as:
a - innovation;
b - workspace;
c - a chance to work on interesting projects;
d - employee experience;
e - availability of technology;
f - lifestyle perks, e.g., remote work, flextime, and benefits;
g - a creative, inspiring, fun corporate culture; and
h - opportunities for personal growth and to contribute to the success of the organization.
E - Meaningful Work: One of the essential areas of talent management is the creation of
meaningful work. Meaningful work is at the top of Maslow's hierarchy of needs and addresses
an individual's self-actualization opportunity. IT professionals expect their employers to offer
work that is not routine, makes a difference in people's lives, and which they find challenging.
When available, this highly motivational type of work leads to improved performance,
commitment, and satisfaction.
F - Continual Revaluation: Although measurement is the best way to identify problems and
improve, many organizations do not know their turnover rates, how long positions remain
unfilled, or how many jobs are filled internally. Similarly, none deeply analyze the results of exit
interviews that can, if appropriately designed, uncover HR issues, employees' perceptions of
work, working conditions, organizational culture, and leadership styles.
The recommendations for improving talent management capabilities are below.
A - Take leadership of the issue: Start by identifying the key stakeholders involved, including senior
business and HR managers, educating them about the value of having a human capital
management plan to accomplish the overall business strategy, and aiming to build support for a
collaborative effort to improve the organization's talent management capabilities.
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B - Consider the bigger picture: Understand your talent brand. Identify the channels through which
you currently recruit and consider ways to incorporate internal skills better, encourage referrals,
and address non-traditional recruitment. Evaluate your employee development and retention
strategies from an employee point of view and consider how these could be improved.
C - Look outside the box: Seek different channels for hiring, e.g., hiring students for work terms,
hiring disabled people, hiring the winners of international case competitions and hackathons. In
addition, evaluate your job postings to eliminate unconscious bias, e.g., using masculine words
that discourage female candidates.
D - Build versatilists: The IT world has long-debated whether it is best to hire and develop technical
specialists or encourage more generalist skills. With many IT skills moving to business areas, this
is a grey area getting bigger. With IT skills changing rapidly, leaders seek to acquire and develop
more agile capabilities with broad applications in various roles, which can be recombined to
increase business value.
E - Pay more attention to job fit: Poor job fit can be responsible for up to 80 percent of employee
turnover and a large proportion of the costs involved in recruiting. Articulating your
organizational values clearly to candidates and expressly considering fit when hiring are thus
two ways of improving your retention rate.
F - Outsource for specific technical skills: Clarify whether or not your organization will need specific
technical skills in the longer term and how closely these need to be integrated. Outsourcing is
the best solution if skills are not deemed necessary in the long term or there is no critical
immediate need.
G - Start Measuring: the maxims "If you do not measure it, you cannot improve it," and "If
something is not being measured, no one is paying attention to it" apply to talent management.
Therefore, measurement is an integral part of taking leadership in talent management.
ANSWERS:
1. A
2. A
3. B
4. A
5. A, B
6. D
7. B
8. E
9. A, C
10. B, D
11. E
12. E
13. B, C
14. C
15. C
16. C, E
17. C
18. B, D
19. C, D
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Chapter 21, Coping with Technical debt
QUESTIONS:
EASY
1) Choose the phrase below that best completes this sentence:
The cost of deferring work to mitigate (e.g., streamline, replace, or make easier to work with) older
systems and technologies is known as ___________.
A. Legacy debt
B. Obsolesce
C. Operating maintenance
D. Technical debt
E. None of the above
2) Is this idea true or false:
Limiting the concept of technical debt to software quality is inappropriate today because the scope of
the technology landscape is much broader and more complex than in the past.
A) TRUE
B) FALSE
3) Is this idea true or false:
Non-IT choices can increase technical debt, e.g., inherited technology from an acquisition, the
technology required by the organization.
A) TRUE
B) FALSE
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4) Is this idea true or false:
An organization's culture cannot contribute to technical debt.
A) TRUE
B) FALSE
5) Is this idea true or false:
The risk to an organization from technical debt can be described by the cost to identify, manage,
mitigate, and work around it.
A) TRUE
B) FALSE
MEDIUM
Type: MR
6) Choose all the definitions below for technical debt.
A. The cost of supporting imperfect or aging technology.
B. The cost to remediate software in which development did not follow best practices or standards to
deliver a system more quickly.
C. The financial burden accepted by an organization to acquire needed systems and technology.
D. The imperfect choices that are made now to achieve a goal that will later need to be remediated at a
higher cost.
E. None of the above
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7) Choose the term below that best completes this sentence:
_________ is the factor that influences the nature and amount of technical debt due to the velocity of
change for the various types of hardware and software an organization manages.
A. Competitive Environment
B. IT Strategy
C. Organizational Culture
D. Technology Evolution
E. The Current Technical Environment
F. None of the above
8) Choose the term below that best completes this sentence:
_________ is the factor that influences the nature and amount of technical debt due to the diversity and
degree of standardization of the technical environment.
A. Competitive Environment
B. IT Strategy
C. Organizational Culture
D. Technology Evolution
E. The Current Technical Environment
F. None of the above
9) Choose the term below that best completes this sentence:
Professionals refer to the slow, incremental changes that increase complexity and decrease
performance as _________.
A. Atrophy
B. Bit rot
C. Iron decay
D. Legacy drag
E. Obsolescence
F. None of the above
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Type: MR
10) Select all the items below that are not a cause of technical debt.
A. Business and technical leadership
B. Business evolution
C. Competitor's technology
D. Emerging Technology
E. Pressure to work faster
F. None of the above
Type: MR
11) Select all the questions below that cannot measure technical debt due to a diversity of technology.
A. How many applications are we running that are no longer supported or updated regularly?
B. How many BYOD-related help requests do we receive?
C. How many different standard desktops do we have?
D. How many different versions of the same software do we use?
E. How many vendors supply hardware?
F. None of the above
12) Choose the pair of terms below that best completes this sentence:
If not proactively _________, technical debt will get _________ over time
A. addressed; worse
B. mitigated; out of control
C. recognized; escalated
D. reduced; inflated
E. None of the above
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13) Choose the tuple below that best completes this sentence:
The rate of _________ of technical debt is _________ to the rate of _________ in an area.
A. acquisition; equal; spending
B. acquisition; inversely related; spending
C. acquisition; proportional; change
D. satisfaction; inversely related; disruption
E. satisfaction; proportional; spending
F. None of the above
Type: MR
14) Select all the benefits below for effectively dealing with technical debt.
A. According to the GAAP or IFRS standards, reducing technical debt may provide a tax deduction.
B. An audit may have fewer unpleasant surprises due to greater adherence to regulatory and
compliance rules.
C. Increase project velocity due to budget not allocated to technical debt.
D. It will be much easier to take advantage of new opportunities in a timely fashion.
E. There can be significant savings in cost and efficiency.
F. None of the above
15) Choose the term below that best completes this sentence:
Much of the burden of managing many types of technical debt falls to the _________.
A. Chief Security Officer
B. Enterprise Architecture group
C. IT Operations group
D. IT Risk group
E. Project Management Office
F. None of the above
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Type: MR
16) Select each of the items below that are not the responsibility of architects.
A. Ensuring there is no duplication of technology.
B. Establishing standards for new development.
C. Managing or reducing interdependencies in the technical environment.
D. Overseeing developers ensuring adherence to development practices and standards.
E. None of the above
Type: MR
17) Select all the items below that the focus group did not recommend as a strategy for managers to
cope with technical debt.
A. Develop a funding model
B. Establish an Operational Level Agreement to ensure update management
C. Implement a legacy retirement standard
D. Manage technical debt explicitly
E. Partner with Risk and Security
F. Take a business point of view
G. None of the above
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HARD
Type: MT
18) Match each source of technical debt below with its description.
a. Architecture = A highly complex environment resulting from the duplication of technology, selection
of non-standard technology, and deviations from the accepted roadmap.
b. Infrastructure = An impaired ability to recover from a range of difficulties due, in part, to a limited
depth of knowledge or single points of knowledge due to a reduced operations staff.
c. Integration = An increasingly challenging heterogeneous technical environment resulting from
multiple technologies, failure to upgrade software, and non-adherence to standards.
d. Technology Burden Rate = None
e. Testing = The necessity to manually test after every release due to inadequate testing tools or scripts.
f. The Development Process = The change over time of practices, standards, and tools that create
friction for future developers.
g. User Experience = Poor design, availability, service quality, and system response affect how users
perceive their experience with technology.
Type: MT
19) Match each risk below that arise from technical debt with its description.
a. Customer/User Satisfaction = Problems with usability, errors, or slow response time can lead to a
drop-off of up to 50 percent in satisfaction rates.
b. Difficulty Innovating = The challenge involved in updating and connecting diverse technologies inhibits
migration to new technologies.
c. Inhibits Agility = None
d. Morale = Fixing problems is one of the least fun parts of IT work and can directly affect employee
retention.
e. Productivity = While cutting corners does initially deliver faster, a plateau is soon reached, and
delivery is impeded.
f. Reliability, Performance, and Security = Vulnerabilities and system failures are created when standards
are not followed.
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Type: MT
20) Match each word below with a lettered blank in the following sentence:
(A) want the (B) of having (C) and recognize the limitations (D) places on their ability to (E), but they also
want to keep their (F) running.
a. benefits = B
b. innovate and grow = E
c. IT standards = None
d. leaders = A
e. legacy systems = F
f. new technology = C
g. technical debt = D
CRITICAL THINKING
Type: E
21) During the annual IT planning retreat, the CIO was bemoaning the limited budget for working on
new technology initiatives. It seems that most of the budget is consumed with the legacy systems:
maintenance, retrofitting the systems to integrate with the new technologies, and correcting hastily
completed applications to address audit findings. The IT team agreed and added that the budget is only
one aspect of the problem. Nevertheless, no one knew how to describe the issue to the business. After
the retreat, the CIO called you and asked that you prepare a report for the business to explain the
problem of old, legacy systems and technology and the choices being made now that contribute to the
problem going forward.
Prepare a report that discusses the topics below.
a - Define technical debt.
b - Identify and describe five essential sources of technical debt.
c - Identify and explain two factors that influence the nature and amount of technical debt.
NOTES:
The essay should discuss the ideas below from the chapter.
Definitions of technical debt are below.
A- Technical debt is the cost of deferring work to streamline older systems and technologies, make
them easier to work with, or replace them.
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B- Technical debt is a metaphor used to describe the cost to an organization supporting imperfect
or aging technology.
C- Technical debt initially focused on software and how developers sometimes knowingly or
unknowingly decide not to follow best practices or standards to deliver a system quickly. Since
then, however, the term has been more broadly and loosely used to encompass many
technology challenges related to aging hardware, software, tools, and practices that do not
meet current needs or standards or are not supported.
The sources of technical debt are below.
A - User experience: This is one area where technical debt is most visible because poor design,
availability, service quality, and system response all impact how users perceive the quality of
their experience with technology.
B - Data: Difficulties accessing data, low-quality data, duplicate data, and data that no one owns
are all indictors of technical debt that can cause severe problems for an organization.
C - Integration: Multiple technologies, failure to upgrade to newer software versions, and lack of
adherence to current standards create a heterogeneous technical environment that can grow
increasingly challenging to integrate and require more and more time to maintain.
D - Architecture: Both insufficient and over-designed architecture can limit an organization's ability
to change in a timely way. Decisions (or lack of decisions) that create duplication, choices of
non-standard technology, and deviations from the accepted roadmap for the future can create
a highly complex environment containing multiple versions of software or has problems
synchronizing data and accommodating upgrades.
E - The Development Process: Development practices, standards, and tools have changed over
time, so many companies still have various artifacts that do not conform to what is expected
from developers today. Almost every aspect of the development process, from requirements,
design, documentation, and the tools used, can create gaps in expectations, understanding,
and knowledge and, in turn, can create technical debt that will cause friction for future
developers.
F - Software: In their haste to develop products quickly, developers can create software that
meets all functional requirements but that can have usability, reliability, maintainability,
reusability, portability, security, and performance challenges which are costly to repair
retroactively.
G - Testing: Inadequate testing tools or scripts can create a need to retest each software release
manually or result in insufficient test coverage, unexpected downtime, and challenging
recovery activities.
H - Operations: As with software, not adopting infrastructure and operations standards or
deferring upgrades can create a highly complex environment that can put a company at real
risk of reliability, security, and performance issues.
I - Infrastructure: As infrastructure ages and without upgrades and maintenance, many things can
happen. Performance can drop off, unavailability of components, or users may experience
'busy' signals. These issues all impair a company's ability to recover from a range of difficulties.
Furthermore, with companies now moving parts of their operations to the cloud, new layers of
infrastructure complexity are being added over which a company has no control. Moreover,
with the resultant reduced operations staff, firms can now lack the depth of knowledge or have
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single points of knowledge that can leave them vulnerable in managing their in-house
infrastructure.
The factors that influence the nature and about of technical debt are below.
A - Technology Evolution: The more different types of hardware and software an organization has
to manage and the faster it changes, the more likely it will incur technical debt.
B - The Current Technical Environment: The less standard and more diverse an organization's
technology environment, the greater the likelihood it will incur technical debt. Many factors
that increase technical debt are not of IT's choosing. A technology inherited from an acquisition
can be challenging to integrate, does not conform to organization standards, and is expensive
to manage or required by the geographic locations in which an organization operates.
Therefore, an organization's current technical environment forms a baseline from which IT
must tackle technical debt. This environment can change fairly quickly as a company itself
evolves and takes on new challenges.
C - Organizational Culture: Focus group members stressed that culture is a significant factor in how
an organization accumulates and deals with technical debt.
Type: E
22) During a meeting with the IT leadership team to prepare for the upcoming Executive Leadership
technology briefing, the CIO asked the leaders for ideas about the organization's technical debt that
could be included in the briefing. After much discussion, the CIO asked you to put together talking points
that can be used with the Executive Leaders.
Prepare a report that covers the following topics.
a - Identify and describe the three most significant risks that arise from technical debt.
b - Identify and describe two significant benefits that arise from dealing with technical debt.
c - Identify and describe three strategies that the organization should adopt to cope with technical
debt.
d - Include a justification for the selected risks and strategies.
NOTES:
The essay should discuss the ideas below from the chapter.
The risks that arise from technical debt are below.
A - Difficulty Innovating: The challenge involved in updating and connecting the diverse
technologies present in most organizations make it extremely difficult to scale innovation and
migrate to new technologies, thereby making digital transformation more difficult.
B - Productivity: Cutting corners and taking shortcuts speed up the functionality delivery by up to
three times - in the short term. However, in the long term accumulating this technical debt will
slow delivery down, make technology more difficult to modify and update, and increase the
time IT staff spend managing and working around it. Thus while 'high debt' projects initially
deliver faster, they soon reach a plateau and are less able to deliver; in contrast, 'low debt'
projects develop more slowly but ultimately deliver more functionality to an organization.
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C - Reliability, Performance, and Security: As weaknesses accumulate, technology can crash, go
offline, or break down. Such vulnerabilities can lead an organization open to financial losses.
Studies have found that technical debt tends to increase the risk of system failures by 62
percent and lead to higher maintenance and operations.
D - Morale: Technical debt also affects IT staff, making them work longer hours and lowering their
morale. Fixing problems is one of the least fun parts of IT work and can directly affect employee
retention, said the focus group.
E - Customer/User Satisfaction: Ultimately, if a product has technical debt in some or all areas, it
will affect customer satisfaction. Problems with usability, errors, or slow response time can lead
to a drop-off of up to 50 percent in satisfaction rates.
The benefits from dealing with technical debt are below.
A - According to the GAAP or IFRS standards, reducing technical debt may provide a tax deduction.
B - An audit may have fewer unpleasant surprises due to greater adherence to regulatory and
compliance rules.
C - There can be significant savings in cost and efficiency.
The strategies for coping with technical debt are below.
A - Measure Your Technical Debt: Measurement creates awareness of the nature and extent of the
problem and will make all other next steps easier. There are some tools available to assess the
structural quality of applications (e.g., the Consortium for Software Quality's Automated
technical debt Measure). However, these do not address many crucial aspects of technical debt.
Because of its complexity and scope, developing and collecting technical debt metrics should be
the responsibility of someone in IT who can do the necessary work to ensure that the measures
used capture all its dimensions and at the right level. However, gathering metrics is only the first
step, as these will need to be analyzed as to their root causes and interpreted, prioritized, and
necessary actions are taken.
B - Partner with Risk and Security: Metrics do not explain the 'so what' question that business and
the Board of Directors need to be answered. Company risk and security functions can help
connect these metrics to real risks and vulnerabilities that can help answer this question.
Working together to connect technical debt directly to these can quantify the value of technical
debt and guide leaders in prioritizing which debts should be tackled or funded first. Building an
aggregate risk framework can also provide a good idea of the critical areas where technical debt
contributes to risk.
C - Take a Business Point of View: Ideally, managing technical debt should be a joint responsibility
with the business. Any efforts to develop a plan to remediate technical debt must be based on
the business context and the technical environment in which the Debt occurs. First, the business
must be educated on the nature of technical debt through conversations that connect it to their
needs in the business. Unless technical debt is linked to business needs, discussion can quickly
slide into technical considerations like design and code and miss its business. One way to do this
is to adopt a 'partner through to value creation model' rather than simply focusing on delivering
new functionality.
D - Manage Technical debt Explicitly: Once technical debt is more visible, it needs to be managed
and monitored. A systematic approach is needed that works at multiple levels, from
organizational advocacy to business leadership, architecture, and project teams, which involves
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creating an architectural roadmap, governance, and standards to prevent future debt. Metrics,
business priorities, and risk and security vulnerabilities should guide plans to remediate existing
technical debt. Some remediation should always be 'part of the deal' when new development
requires changes to existing technology. Finally, IT leaders must ensure that sprints and other
phases of development have reasonable timelines since time pressure is a leading cause of
technical debt.
E - Adopt Tools Wherever Possible: Although only a few tools explicitly identify technical debt, many
other tools and practices can be very helpful in managing it effectively. For example, IT Asset
Management disciplines can ensure that the organization is aware of and actively managing the
entire life cycle risks and costs for all its technologies. Network discovery tools can be used to
locate and identify all technical. Common management tools and processes to manage IT work
can minimize the risk of any project not following a roadmap or standards. Finally, automated
testing tools are a must because they speed up the complex types of testing that are continually
required in today's constantly changing technology environment.
F - Develop a Funding Model: Clearly, effectively managing technical debt requires resources, which
means allocating a reasonable budget.
ANSWERS:
1. D
2. A
3. A
4. B
5. B
6. A, D
7. D
8. E
9. B
10. C
11. B, E
12. A
13. C
14. A, B, D, E
15. B
16. D
17. B, C
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