CGEIT · Question #208
In an enterprise that has worldwide business units and a centralized financial control model, which of the following is a barrier to strategic alignment of business and IT?
The correct answer is B. Uniform portfolio management is in place throughout the business units. In an enterprise with worldwide business units and centralized financial control, uniform portfolio management can hinder strategic alignment by preventing local IT initiatives from addressing unique regional needs.
Question
In an enterprise that has worldwide business units and a centralized financial control model, which of the following is a barrier to strategic alignment of business and IT?
Options
- AEach business unit has its own steering committee for IT investment and prioritization.
- BUniform portfolio management is in place throughout the business units.
- CIT is the exclusive provider of IT services to the business units.
- DThe enterprise's CIO is a member of the executive committee.
How the community answered
(30 responses)- A17% (5)
- B50% (15)
- C7% (2)
- D27% (8)
Why each option
In an enterprise with worldwide business units and centralized financial control, uniform portfolio management can hinder strategic alignment by preventing local IT initiatives from addressing unique regional needs.
Each business unit having its own steering committee for IT investment and prioritization would *support* strategic alignment by allowing IT initiatives to be tailored to local business needs.
Uniform portfolio management applied throughout worldwide business units can be a barrier to strategic alignment because it may not allow for the flexibility needed to address unique local market conditions, regulatory requirements, or distinct business unit strategies. This centralized, uniform approach can stifle innovation and prevent IT from adapting quickly to specific business unit needs, thus impeding their individual strategic alignment.
IT being the exclusive provider of IT services to business units fosters a centralized approach, which, while having its own pros and cons, does not inherently create a barrier to strategic alignment; it can even enable it if managed effectively.
The enterprise's CIO being a member of the executive committee is a strong enabler of strategic alignment, ensuring IT is represented at the highest level of business decision-making.
Concept tested: IT-business strategic alignment barriers
Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/overview
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