Chpt 2 Flashcards
(19 cards)
Why is strategic alignment important for IT projects?
IT projects must align with the organization’s mission and strategy, as well as its culture and practices.
What is the definition of strategic management?
The process of assessing ‘what we are’ and deciding and implementing ‘what we intend to be and how we are going to get there.’
What are the two major dimensions of strategic management?
- Respond to changes in the external environment and allocate resources to improve competitive position.
- Internal responses to new action programs aimed at enhancing the firm’s competitive position.
What are the four activities of the strategic management process?
- Review and define the organizational mission.
- Analyze and formulate strategies.
- Set objectives to achieve strategies.
- Implement strategies through projects.
What are the components of a mission statement?
- Major products and services.
- Target customers and markets.
- Geographical domain.
- Organizational philosophy.
- Key technologies.
- Public image.
- Contribution to society.
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, Threats.
What does the acronym SMART stand for in setting objectives?
- Specific.
- Measurable.
- Assignable.
- Realistic.
- Time-related.
What is the purpose of a project priority system?
To address behavioral biases, the implementation gap, organization politics, and resource conflicts.
What is project portfolio management?
A means for monitoring and controlling the organization’s strategic projects, linking projects directly to the organization’s goals and strategy.
What are seven common characteristics of highly successful strategic projects?
- Creates a unique competitive advantage.
- Requires a long period of project definition.
- Creates a revolutionary project culture.
- Needs a highly qualified project leader.
- Maximizes the use of existing knowledge.
- Uses integrated development teams.
- Project team has a strong sense of partnership.
What is the Phase Gate Model?
A series of gates that a project must pass through to ensure worthwhile investments that contribute to the organization’s mission and strategy.
What is the Payback Model?
Measures the time the project will take to recover the project investment; emphasizes cash flows.
What are the limitations of the Payback Method?
- Ignores the time value of money.
- Assumes cash inflows for the investment period only.
- Does not consider profitability.
What is Net Present Value (NPV)?
Uses management’s minimum desired rate of return to compute the present value of all net cash inflows.
What are examples of non-financial criteria for project selection?
- Capture a larger market share.
- Make it difficult for competitors to enter the market.
- Develop an enabler product.
- Develop core technology for next-generation products.
- Reduce dependency on unreliable suppliers.
What are Checklist Models in project selection?
Use a list of questions to review potential projects for acceptance or rejection but lack the ability to compare projects.
What are Multi-Weighted Scoring Models?
Use several weighted selection criteria to evaluate project proposals.
What is the role of senior management in managing the portfolio system?
Provides guidance in establishing selection criteria and balances available resources among different types of projects.
What are the risk considerations in project selection?
Both costs and benefits are uncertain; benefits are more uncertain, with uncertainties about timing and what will be accomplished.
