IT Strategy 1st Edition James McKeen – Test Bank
IT Strategy in Action (McKeen/Smith)
Chapter 3
Linking IT to Business Metrics
1)
What a company spends on IT has a direct impact on its overall performance.
Answer:
TRUE
Page Ref: 26
Skill:
Moderate
AACSB:
Use of IT
2)
The key to linking what IT does to business performance is to create an environment within which everyone thoroughly understands what measures are unimportant to the business and is not held accountable for those measurements.
Answer:
FALSE
Page Ref: 27
Skill:
Moderate
AACSB:
Use of IT
3)
The best measures are tied to business performance and are linked to the strategies and technological capabilities of the company.
Answer:
FALSE
Page Ref: 28
Skill:
Easy
AACSB:
Use of IT
4)
IT investments do not always deliver the benefits expected.
Answer:
TRUE
Page Ref: 28
Skill:
Easy
AACSB:
Use of IT
IT Strategy 1st Edition James McKeen – Test Bank
5)
Most organizations that link measures of IT input with measures of business performance find great success since the two metrics are so closely linked.
Answer:
FALSE
Page Ref: 26
Skill:
Moderate
AACSB:
Use of IT
6)
It is practically impossible to demonstrate that what a company spends on IT has a direct impact on its overall performance.
Answer:
TRUE
Page Ref: 26
Skill:
Moderate
AACSB:
Use of IT
7)
In most firms, technology is not a significant enough of an expense for it not to have influence on the corporate bottom line.
Answer:
FALSE
Page Ref: 29
Skill:
Moderate
AACSB:
Use of IT
8)
Effective business metrics programs should also include non–financial measures.
Answer:
TRUE
Page Ref: 29
Skill:
Easy
AACSB:
Use of IT
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