Chapter 1
Introduction
True-False Questions
1. The Strategic Alignment Maturity Assessment Model is primarily concerned with
determining how well the business and IT functions are integrated.
Answer: True Reference: p. 1
2. Customer satisfaction is one of Porter’s three primary strategies for organizations to
achieve competitive advantage.
Answer: False Reference: p. 2
3. A responsibility of the Chief Information Officer is to participate in the development of
corporate strategies.
Answer: True Reference: p. 3
4. Strategic planning is primarily concerned with short-term goals.
Answer: False Reference: p. 3
5. Operational activities are primarily concerned with day-to-day processes and actions.
, Answer: True Reference: p. 3
6. Internet links, video, and sounds are forms of rich communication.
Answer: True Reference: p. 6
7. Generally, the CIO is the most senior IT executive and always reports to an executive
within the financial function.
Answer: False Reference: p. 7
8. Information technology is often seen as a cost center that must have a return on
investment (ROI).
Answer: True Reference: p. 7
9. In the departmental, or business unit view of computing, information technology has a
task-based focus.
Answer: False Reference: p. 8
10. Hypermediation is used to describe the change in a business model where the
middleman is essentially eliminated.
Answer: False Reference: p. 9
,11. The fundamental roles and responsibilities of the IT function are the same regardless of
whether you are involved in e-IT or legacy systems.
Answer: True Reference: p. 9
12. Reintermediation involves bringing together the various partners in a traditional
supply chain in new ways utilizing the Internet.
Answer: True Reference: p. 10
13. An example of infomediation is using a search engine that aggregates information into
categories.
Answer: True Reference: p. 12
14. Information technology impacts both support activities and primary activities in
Porter’s Value Chain.
Answer: True Reference: p. 17
15. The IT-productivity paradox is defined as the disjoint between application
programmers’ salaries and the lines of code produced by them.
Answer: False Reference: p. 19
, Multiple Choice Questions
16. A method to evaluate the current state of alignment between the business functions and
IT best describes:
a. Porter Competitive Forces Model.
b. Strategic Alignment Maturity Assessment Model.
c. SWOT analysis.
d. net worth evaluation.
Answer: b Reference: p. 1
17. Each of the following is true about the management of IT except:
a. it requires a broad view of technology and business.
b. the formal title of Chief Information Officer may not exist in the organization.
c. it involves strategic, tactical, and operational concerns of the organization.
d. the roles and tasks of a CIO differ depending on size and complexity of the
organization.
Answer: d Reference: p. 2-3
18. The one demand that can have the greatest impact on the reputation of the CIO is:
a. managing day-to-day operational activities.
Introduction
True-False Questions
1. The Strategic Alignment Maturity Assessment Model is primarily concerned with
determining how well the business and IT functions are integrated.
Answer: True Reference: p. 1
2. Customer satisfaction is one of Porter’s three primary strategies for organizations to
achieve competitive advantage.
Answer: False Reference: p. 2
3. A responsibility of the Chief Information Officer is to participate in the development of
corporate strategies.
Answer: True Reference: p. 3
4. Strategic planning is primarily concerned with short-term goals.
Answer: False Reference: p. 3
5. Operational activities are primarily concerned with day-to-day processes and actions.
, Answer: True Reference: p. 3
6. Internet links, video, and sounds are forms of rich communication.
Answer: True Reference: p. 6
7. Generally, the CIO is the most senior IT executive and always reports to an executive
within the financial function.
Answer: False Reference: p. 7
8. Information technology is often seen as a cost center that must have a return on
investment (ROI).
Answer: True Reference: p. 7
9. In the departmental, or business unit view of computing, information technology has a
task-based focus.
Answer: False Reference: p. 8
10. Hypermediation is used to describe the change in a business model where the
middleman is essentially eliminated.
Answer: False Reference: p. 9
,11. The fundamental roles and responsibilities of the IT function are the same regardless of
whether you are involved in e-IT or legacy systems.
Answer: True Reference: p. 9
12. Reintermediation involves bringing together the various partners in a traditional
supply chain in new ways utilizing the Internet.
Answer: True Reference: p. 10
13. An example of infomediation is using a search engine that aggregates information into
categories.
Answer: True Reference: p. 12
14. Information technology impacts both support activities and primary activities in
Porter’s Value Chain.
Answer: True Reference: p. 17
15. The IT-productivity paradox is defined as the disjoint between application
programmers’ salaries and the lines of code produced by them.
Answer: False Reference: p. 19
, Multiple Choice Questions
16. A method to evaluate the current state of alignment between the business functions and
IT best describes:
a. Porter Competitive Forces Model.
b. Strategic Alignment Maturity Assessment Model.
c. SWOT analysis.
d. net worth evaluation.
Answer: b Reference: p. 1
17. Each of the following is true about the management of IT except:
a. it requires a broad view of technology and business.
b. the formal title of Chief Information Officer may not exist in the organization.
c. it involves strategic, tactical, and operational concerns of the organization.
d. the roles and tasks of a CIO differ depending on size and complexity of the
organization.
Answer: d Reference: p. 2-3
18. The one demand that can have the greatest impact on the reputation of the CIO is:
a. managing day-to-day operational activities.
