ITC4212

Model Answer:

IT Governance focuses on WHAT decisions need to be made and WHO makes them. It is a Board-level responsibility concerned with:

• Strategic focus and direction setting
• Decision rights and accountability
• Ensuring IT sustains organizational objectives
• "Doing the RIGHT things"

IT Management focuses on HOW to implement decisions. It is an operational responsibility concerned with:

• Day-to-day operations and execution
• Project management and service delivery
• Network maintenance and support
• "Doing things RIGHT"

Model Answer:

The 5 Focus Areas work together in a continuous cycle:

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Universities differ from commercial organizations in three key ways:

1. Unique Processes: Teaching, research, administration - not just profit-making activities
2. Complex Stakeholders: Students, faculty, government, public - not just shareholders
3. Difficult to Measure Value: Educational quality and research impact vs. simple financial ROI

JISC's 5 Perspectives:

1. Governance - Strategic direction, policies
2. Management - Day-to-day operations
3. Resources - People, Technology, Finance
4. Structures - Centralized vs. decentralized IT
5. Services - Email, LMS, library systems

Model Answer:

1. Situational Analysis: Where are we NOW? (SWOT, maturity audit, gap analysis)
2. Strategy Formulation: Where do we WANT to be? (Vision, mission, objectives)
3. Framework Design: WHAT framework fits? (Select and customize domains)
4. Implementation: HOW do we get there? (Allocate resources, execute, train)
5. Monitoring: Are we on TRACK? (KPIs, KGIs, continuous improvement)

Model Answer:

Key Concept: Business Strategy DRIVES both Organizational and IS Strategy. All three must be aligned.

Model Answer:

1. High IT costs but low business value - Spending millions on servers but sales don't increase
2. Lack of coordination - IT builds features nobody asked for
3. Redundant projects/systems - Three departments each buy their own CRM
4. "Fire-fighting" mode - Constantly fixing crises instead of preventing them

Model Answer:

1. Communication: How well IT and business understand each other
2. Competence/Value: Does business perceive IT as delivering value?
3. Governance: Are decision rights clear?
4. Partnership: Do IT and business share risks and rewards?
5. Scope/Architecture: Is IT infrastructure flexible and integrated?
6. Skills: Do IT staff have both technical AND business skills?

Model Answer:

Model Answer:

Hypercompetition: Markets where competitive advantages are TEMPORARY and rapidly eroded. Winners must constantly disrupt themselves.

Key Characteristics:

• Short product lifecycles (months, not years)
• Rapid technological change
• "Winner-take-all" dynamics
• Constant "moves and countermoves"

Destroy Your Business (DYB): Strategic approach where companies disrupt their OWN products before competitors do.

Model Answer:

Complementary Assets: Resources needed to derive value from primary IT investment. Technology alone NEVER delivers value!

• Organizational: Business processes, culture, structure
• Managerial: Training, incentive systems, teamwork
• Social: Internet infrastructure, standards, regulations

Managerial Levers Framework: Three types of variables to execute strategy:

1. Organizational Variables: Decision rights, reporting structure, processes
2. Control Variables: Data availability, KPIs, incentives/rewards
3. Cultural Variables: Values, risk tolerance, innovation mindset

Model Answer:

The SAM Model has four domains:

1. Business Strategy (External) - Competitive positioning
2. IT Strategy (External) - Technology scope and competencies
3. Organizational Infrastructure (Internal) - Skills, processes, structure
4. IS Infrastructure (Internal) - Architecture, systems, platforms

Key Concept: Alignment requires fitting these four domains together - both Strategic Fit (external vs internal) and Functional Integration (business vs IT).

Model Answer:

Luftman's 6 Criteria:

1. Communication
2. Competence/Value
3. Governance
4. Partnership
5. Scope/Architecture
6. Skills

Model Answer:

(i) Level 3 (Defined) - Processes are documented and standardized.

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Alignment is a moving target because external factors constantly change:

• Technology Changes: New platforms, AI, cloud require strategy updates
• Market Regulations: GDPR, data privacy laws force IS changes
• Competition: Competitor moves require rapid strategic responses
• Customer Expectations: Digital experience demands evolve

Model Answer:

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Why Universities Need Special Frameworks:

• Commercial frameworks focus on PROFIT; universities focus on teaching/research/public good
• Diverse stakeholders (students, faculty, government) unlike corporate shareholders
• Difficult to measure "ROI" in educational outcomes

JISC's 5 Perspectives:

1. Governance - Strategic direction, policies
2. Management - Day-to-day operations
3. Resources - People, Technology, Finance
4. Structures - Centralized vs. decentralized IT
5. Services - Email, LMS, library systems

Model Answer:

Relationship:

• Strategic Alignment = WHAT we're trying to achieve
• Value Delivery = The OUTCOME of good alignment
• Risk Management = Protecting the value from threats

Model Answer:

Situational Analysis: Documents the "As-Is" (current) state vs. the "To-Be" (future) state.

• Involves SWOT analysis of internal/external environment
• Assesses current maturity level
• Documents existing systems and capabilities

Why Gap Analysis is Critical:

• Identifies EXACTLY what is missing (technology, skills, processes)
• Prioritizes investments based on gaps
• Creates roadmap from current to desired state

Model Answer:

1. % of projects completed on time/budget - Measures execution efficiency
2. Customer/User satisfaction scores - Measures service quality perception
3. System availability/uptime % - Measures operational reliability

Other valid examples: IT spend as % of revenue, incident resolution time, security breach frequency

Model Answer:

1. Operational Excellence - Efficiency, productivity improvements
2. New Products/Services - Digital innovation, new business models
3. Customer/Supplier Intimacy - Better relationships, personalization
4. Improved Decision Making - Business intelligence, analytics
5. Competitive Advantage - Outperform rivals
6. Survival - Companies must adopt technology to stay relevant

Model Answer:

Result = FAILURE:

• IS Strategy (e.g., CRM system) gets implemented...
• ...but employees aren't empowered to use customer data
• ...no incentives to build customer relationships
• ...culture doesn't support personalized service

Model Answer:

Decision Rights (Organizational Variable):

• Defines WHO has authority to approve/reject IT projects
• Clear decision rights prevent bottlenecks and delays
• Empowers right people to make quick decisions

Incentives/Rewards (Control Variable):

• Motivates employees to USE new systems
• Aligns individual goals with IS strategy goals
• Without incentives, even the best system fails due to resistance

Model Answer:

Why Hardware Alone Fails:

• Organizational: No new business processes to leverage technology
• Managerial: No training, no incentives, no teamwork culture
• Social: No supporting infrastructure or standards

Model Answer:

Smartphone Industry Examples:

Automotive Industry:

• Cost Leadership: Toyota, Hyundai - Efficiency, reliability at low price
• Differentiation: Mercedes, BMW - Luxury, unique features, prestige

Model Answer:

Destroy Your Business (DYB): A strategy where firms disrupt their OWN business model before competitors do.

Why Companies Self-Cannibalize:

• Better to lose sales to yourself than to a competitor
• Essential for survival in fast-moving markets
• Creates next-generation revenue streams

Model Answer:

Characteristics of Hypercompetition:

1. Rapid erosion of competitive advantage - What works today fails tomorrow
2. Short product life cycles - Months, not years (e.g., smartphone models)

How IS Helps Survival:

• Agility: Cloud-based systems allow rapid scaling and pivoting
• Business Intelligence: Real-time analytics spot trends instantly
• Speed to Market: DevOps, automation reduce launch times
• Customer Insights: Data analytics anticipate needs before competitors

Model Answer:

Direction Phase Output = IS Strategic Plan containing:

1. IS Vision: Future-oriented statement of what IS will achieve
2. IS Mission: Current purpose of IS function
3. Strategic Goals: High-level objectives aligned with business strategy
4. Strategic Initiatives: Major programs to achieve goals

Key Question Answered: "Where do we want to be?"

This sets the high-level direction BEFORE detailed project planning begins in the Implementation phase.

Model Answer:

• IT Governance: Focuses on decision rights, setting strategic direction, ensuring IT aligns with business goals. Board/Executive responsibility. Answers "WHAT decisions" and "WHO makes them." "Doing the RIGHT things."
• IT Management: Focuses on implementation, day-to-day operations, service delivery. Answers "HOW do we execute." "Doing things RIGHT."

Reading: Introduction to IT Governance slides

Model Answer:

• Technology Provider: IT = cost center, focus on infrastructure efficiency
• Service Provider: IT delivers services to business (ITIL implementation)
• Strategic Partner: IT fully integrated, enables new business models, investment not expense

Reading: Evolution of IT within organisations slide

Model Answer:

• Strategic Alignment: Links IT/business plans
• Value Delivery: Ensures benefits/ROI throughout delivery
• Risk Management: Manages compliance and security
• Resource Management: Optimizes apps, infrastructure, people
• Performance Measurement: Tracks strategy using BSC

Reading: Focus areas of IT governance slide

Model Answer:

Definition: Measure of how well processes and strategic alignment are defined, managed, and controlled.

Levels: 0-Non-existent, 1-Initial/Ad Hoc, 2-Repeatable, 3-Defined, 4-Managed, 5-Optimized

Optimized Characteristic: Best practices are followed AND automated; continuous improvement based on quantitative feedback.

Reading: IT Maturity Levels slides

Model Answer:

1. Unique processes (teaching, research) unlike standard commerce
2. Difficulty measuring "profit" - academic success metrics differ
3. Diverse stakeholders (students, government, academics) vs. shareholders

Reading: ITG frameworks for universities slides

Model Answer:

(i) Perspectives: Governance, Management, Resources, Structures, Services

(ii) Examples:

• Resources: Covers People (skills), Technology (infrastructure), Finance (budgeting/VFM)
• Structures: Organizational setup - centralized vs. decentralized IT, roles/responsibilities

Reading: JISC Framework slides

Model Answer:

Stakeholders: Students, Academics/Faculty, Government/Ministry/UGC, IT Vendors/Administrators

Steering Committee Role: Oversees IT strategy implementation, ensures alignment with institutional goals, approves significant investments, represents all stakeholders in decision-making.

Reading: ITG frameworks for specific organizational requirements

Model Answer:

Situational Analysis: Documents "Where are we today?" Includes:

• Internal IS situation analysis (strengths/weaknesses)
• External environment (opportunities/threats)
• Current maturity level assessment

Why Critical:

• Cannot plan future without understanding current capabilities
• Gap Analysis identifies what's missing (tech, skills)
• Determines if current systems meet business requirements
• Identifies redundant/obsolete systems

Reading: IS Strategy Planning slides, Situation Analysis

Model Answer:

1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival

Reading: Role of IS in today's business slides

Model Answer:

Business Strategy DRIVES both others. A change (e.g., going global) requires:

• Org Strategy change: new structure, skills, culture
• IS Strategy change: new networks, cloud infrastructure

Reading: Linking systems to strategy, IS Strategy Triangle

Model Answer:

Reading: Vision/Mission slides

Model Answer:

Definition: Assets required to derive value from primary investment. Categories:

• Organizational: Appropriate business models, efficient processes
• Managerial: Incentives for innovation, teamwork, training
• Social: Internet infrastructure, technology standards

Why Technology Alone Fails: Without training staff or redesigning processes, new hardware will not increase productivity. Technology is just one piece of the puzzle.

Reading: Complementary assets slides

Model Answer:

Model: Framework for sustainable competitive advantage through strategic positioning.

• Cost Leadership: Lowest-cost producer in industry (e.g., Toyota, Hyundai)
• Differentiation: Unique product perceived as valuable, premium price (e.g., Mercedes)

Reading: Generic Strategies Framework slides

Model Answer:

(i) Model: Applies to turbulent environments where advantages are short-lived. Agility and speed are key, not static positioning.

(ii) Moves/Countermoves:

• Companies launch "strategic moves" (Apple FaceID) for temporary advantage
• Competitors respond with "countermoves" (Samsung facial recognition)
• Cycle of disruption creates "Winner-take-all" environment
• Firms must be willing to cannibalize own products (DYB) to survive

Reading: Hypercompetition Model slides

Model Answer:

Framework: Used to execute organizational strategy effectively.

• Organizational Variables: Decision rights, business processes, reporting structure
• Control Variables: Data availability, planning quality, KPIs, incentives
• Cultural Variables: Values, beliefs, risk-taking culture, innovation mindset

Reading: The Managerial Levers slides

Model Answer:

Reading: Phases of the planning process slides

Model Answer:

1. High IT costs with low perceived value - Spending millions but sales don't increase
2. Lack of coordination between business and IS department
3. Redundant projects or cancelled projects that fail to deliver value
4. Reactive "fire-fighting" mode - constantly fixing crises instead of proactive planning

Model Answer:

IT maturity refers to the degree to which an organization has defined, managed, and optimized its processes, particularly regarding the strategic alignment of IT with business goals. It involves measuring current performance and identifying what must be done to improve, using metrics to determine the level of governance and alignment.

Model Answer:

Model Answer:

1. Technology Provider (IT Infrastructure): IT is a cost center, focus on infrastructure efficiency
2. Service Provider (ITSM): IT delivers services, ensures customer access to relevant services
3. Strategic Partner (IT Governance): IT fully integrated with business, viewed as investment for growth not expense to control

Model Answer:

External environment heavily influences IT governance:

• Dynamic Environments: In hypercompetition, static strategies insufficient. Organizations must value agility as competitive advantage
• External Domains: SAM includes Business Strategy and IT Strategy covering business scope, competencies, technology scope
• Market Pressure: Globalization, price wars, rapid technological disruption force continuous reinvention and R&D investment

ITG must ensure systems are flexible enough to support rapid "moves and countermoves"

Model Answer:

1. COBIT (Control Objectives for Information and Related Technologies)
2. ITIL (Information Technology Infrastructure Library)
3. ISO 17799/ISO 27001 (Information Security Management)

Model Answer:

1. Inability to Measure Value: Difficult to ascertain if IT spending contributes to objectives or achieves "value for money"
2. Unmanaged Risks: Poor risk management leads to legal compliance issues, security breaches, and business continuity problems

Model Answer:

1. Industry/Sector: Universities need specialized frameworks (JISC, ITG4U) because teaching/research differs from standard commerce
2. Organizational Structure: Centralized vs. decentralized IT affects framework choice - must align with decision-making hierarchy
3. Stakeholder Composition: Universities have diverse stakeholders (students, government, academics) requiring steering committees representing all groups

Model Answer:

Stakeholder involvement is critical because IT governance is a shared responsibility aimed at maximizing business value for all parties.

• Justification: Steering Committees must represent all stakeholders to ensure decisions align with broader strategy, not just technical needs
• University Example: Stakeholders include students, academics, government. Missing "Student" input means service delivery may fail learning expectations
• Resource Example: Business managers must be involved in budget allocation or IT remains viewed as cost center only

Model Answer:

1. Visioning & Assessment: Determine current status using self-assessment, establish baseline maturity level
2. Strategy Formulation: Define IT vision aligned with business strategy, set up Steering Committee
3. Framework Design: Select relevant domains (e.g., COBIT's Planning, Acquisition, Delivery, Monitoring OR JISC's 5 perspectives)
4. Implementation: Establish policies, define decision rights, allocate resources (Finance, People, Technology)
5. Monitoring & Improvement: Use KGIs/KPIs to measure progress, continuous audits for evolution

Model Answer:

1. Mission: Core purpose ("What do we do?")
2. Vision: Aspirational future goal ("Where are we going?")
3. Values: Ethics and principles the company stands for
4. Strategic Objectives: High-level goals and sequencing
5. Actions & KPIs: Specific steps and metrics to measure success

Model Answer:

IS has moved from support role to central strategic enabler:

1. Strategic Interdependence: Growing link between IS capabilities and corporate strategy implementation
2. Operational Excellence: Major tool for efficiency, productivity, profitability
3. Decision Making: Real-time data enables informed decisions vs. guessing
4. Competitive Advantage: Enables new business models (Uber, Apple ecosystem)
5. Globalization: Reduces costs of global operations, enables distributed decision-making

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Model Answer:

Key Relationships:

• Business Strategy DRIVES Organizational and IS Strategies
• IS Strategy SUPPORTS and impacts Organizational Strategy
• Changes in any corner require adjustments in others to maintain balance

Model Answer:

Porter's model: Firms achieve sustainable competitive advantage through strategic positioning:

1. Cost Leadership: Lowest-cost producer (e.g., Hyundai, Toyota)
2. Differentiation: Unique product justifying premium price (e.g., Mercedes, Porsche)
3. Focus: Narrow market segment with Cost or Differentiation focus (e.g., Porsche - high-performance niche)

Model Answer:

Social IT aligned with organizational strategy offers:

• Collaboration: Extends stakeholder reach, enables finding/connecting with experts through social networks, breaks down silos
• Engagement: Deeper stakeholder involvement through communities and blogs, creating connection to brand
• Innovation: Acts as "super idea box" - stakeholders suggest, comment, vote on ideas for new innovation sources

Model Answer:

Yes, IS strategies are critical in dynamic environments.

Hypercompetition Model Justification:

• In turbulent markets, speed and aggressiveness of moves/countermoves determine success
• Agility itself becomes competitive advantage

Role of IS:

• Sensing & Responding: Business Intelligence predicts opportunities, dynamically adjusts resources
• Moves & Countermoves: In smartphone wars (Apple vs Samsung), IS enables rapid product launches and strategic pivots
• Disruption: IS enables "Destroy Your Business" (DYB) - disrupting own practices before competitors do

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