Strategic Information Systems Management Exam Practice Test

Sample Questions and Answers

Which of the following best describes the strategic role of information systems in organizations?
A. Automating routine tasks
B. Enhancing communication between departments
C. Aligning technology with business goals to gain a competitive advantage
D. Training employees in IT systems
Answer: C

Which concept focuses on the use of IT to create a significant difference in the competitive position of an organization?
A. Business process reengineering
B. Strategic alignment
C. Operational efficiency
D. Enterprise resource planning
Answer: B

In the context of information systems, which framework is commonly used to evaluate an organization’s strengths, weaknesses, opportunities, and threats?
A. PESTLE analysis
B. SWOT analysis
C. Balanced Scorecard
D. Five Forces Model
Answer: B

Which of the following is NOT a key component of a strategic information system?
A. Customer relationship management (CRM)
B. Data security protocols
C. Organizational culture
D. Supply chain optimization
Answer: C

What is the main objective of aligning IT strategy with business strategy?
A. Reducing IT costs
B. Ensuring technological innovation
C. Supporting organizational goals for long-term success
D. Increasing hardware and software procurement
Answer: C

Questions 6–10

Which of the following is a strategic advantage of deploying enterprise resource planning (ERP) systems?
A. Reduces employee workloads
B. Streamlines processes and improves decision-making
C. Increases reliance on manual reporting
D. Simplifies IT infrastructure to a single platform
Answer: B

Which is a common barrier to the successful implementation of strategic information systems?
A. High costs of implementation
B. Lack of executive support
C. Employee resistance to change
D. All of the above
Answer: D

Porter’s Five Forces Model is used in strategic information systems to:
A. Develop IT project timelines
B. Understand competitive forces in the industry
C. Align IT systems with financial objectives
D. Automate decision-making processes
Answer: B

Which of the following technologies can enhance customer engagement through strategic information systems?
A. Blockchain
B. Artificial intelligence
C. Cloud computing
D. All of the above
Answer: D

What is the primary goal of business intelligence systems?
A. Automating data entry tasks
B. Enabling data-driven decision-making
C. Simplifying software development
D. Enhancing internet connectivity
Answer: B

Questions 11–15

A balanced scorecard approach to strategic IT management emphasizes:
A. Financial metrics
B. Key performance indicators across multiple perspectives
C. IT system upgrades
D. Industry benchmarking only
Answer: B

The centrality of strategic information systems is highlighted by:
A. Their impact on operational-level decisions only
B. Their ability to shape business strategy at all levels
C. The reduced reliance on human input
D. The increasing complexity of hardware systems
Answer: B

What is the main advantage of cloud computing in strategic alignment?
A. Improved collaboration and flexibility
B. Higher upfront costs
C. Reduced focus on data analytics
D. Simplification of management hierarchy
Answer: A

In strategic information systems, a “dashboard” is used to:
A. Perform data entry
B. Monitor and visualize key performance indicators in real time
C. Develop coding systems
D. Analyze competitor systems
Answer: B

An organization can achieve a sustainable competitive advantage through IT systems by:
A. Purchasing the latest hardware every year
B. Focusing on short-term cost savings
C. Continuously innovating and integrating IT with business processes
D. Delegating IT strategy to third-party consultants
Answer: C

Questions 16–20

Which of these is a primary driver for adopting strategic information systems?
A. Globalization of markets
B. Legal compliance requirements
C. Employee satisfaction
D. Reduced dependency on third-party vendors
Answer: A

What is a critical success factor for IT-enabled change initiatives?
A. Having a clear vision and leadership support
B. Reducing the IT budget
C. Automating employee tasks
D. Outsourcing all IT functions
Answer: A

Which of the following aligns closest with IT governance?
A. Outsourcing IT management
B. Ensuring IT delivers value to the organization
C. Reducing overall IT staff
D. Increasing investment in hardware solutions
Answer: B

Customer relationship management (CRM) systems are designed to:
A. Automate payroll systems
B. Foster customer loyalty and improve customer interactions
C. Improve supply chain logistics
D. Develop training modules for IT staff
Answer: B

Strategic IT planning is most effective when it:
A. Focuses on short-term IT projects
B. Involves continuous alignment with organizational goals
C. Is conducted independently of other departments
D. Prioritizes IT over other business strategies
Answer: B

Questions 21–30

Which of the following is an example of disruptive technology in strategic information systems?
A. Mainframe computing
B. Blockchain
C. Word processors
D. Fax machines
Answer: B

What does “digital transformation” primarily refer to in strategic IT management?
A. Transitioning from manual to automated workflows
B. Leveraging digital tools to fundamentally change business operations
C. Replacing outdated software systems
D. Increasing employee digital literacy
Answer: B

A strategic alignment model focuses on:
A. Ensuring consistency between business goals and IT capabilities
B. Upgrading IT infrastructure yearly
C. Prioritizing software over business strategy
D. Simplifying organizational hierarchies
Answer: A

Which is a potential risk of deploying a strategic information system?
A. Increased manual workload
B. Over-reliance on technology
C. Reduced competitiveness
D. Higher operational costs
Answer: B

Which of the following is a primary benefit of data analytics in strategic IT systems?
A. Automates all business decisions
B. Enhances decision-making with actionable insights
C. Eliminates human oversight in IT
D. Reduces the importance of strategic goals
Answer: B

The “value chain” model helps organizations:
A. Automate production processes
B. Identify areas where IT can provide strategic benefits
C. Reduce overall costs
D. Benchmark against competitors
Answer: B

Strategic use of big data enables organizations to:
A. Create predictive models for decision-making
B. Reduce employee workloads
C. Eliminate manual tasks
D. Simplify IT infrastructure
Answer: A

What is a characteristic of an effective strategic information system?
A. Low implementation cost
B. Integration with organizational goals and objectives
C. Focus only on IT operations
D. Reduced need for IT staff
Answer: B

Cybersecurity in strategic IT systems is critical to:
A. Mitigate risks to sensitive business data
B. Ensure high-speed internet access
C. Reduce reliance on hardware
D. Automate routine processes
Answer: A

The role of IT in digital ecosystems includes:
A. Creating new value chains and opportunities for collaboration
B. Automating traditional workflows
C. Developing legacy systems
D. Reducing the importance of partnerships
Answer: A

Questions 31–35

In the context of strategic information systems, what does “IT agility” refer to?
A. The ability to quickly adapt IT systems to changes in the business environment
B. The capability to reduce IT costs by outsourcing
C. The automation of all IT processes
D. The use of legacy systems for competitive advantage
Answer: A

What is the role of an IT steering committee in strategic information systems management?
A. Developing IT hardware specifications
B. Aligning IT initiatives with business goals
C. Managing day-to-day IT operations
D. Designing software applications
Answer: B