nerdexam
Isaca

CGEIT · Question #380

An IT steering committee is concerned that enterprise technologies have grown stagnant and are outdated. Which of the following is the BEST strategy to invest in modern technology?

The correct answer is C. Create a new investment category for innovation that becomes a new way for tracking investment. To address stagnant technology and encourage modernization, the best strategy is to create a distinct investment category specifically for innovation, allowing for dedicated funding and tracking of new technology initiatives. This dedicated allocation fosters strategic investment

Submitted by kim_seoul· Apr 18, 2026Governance of Enterprise IT

Question

An IT steering committee is concerned that enterprise technologies have grown stagnant and are outdated. Which of the following is the BEST strategy to invest in modern technology?

Options

  • ADecrease spending on steady state and increase spending on modernization and enhancements.
  • BRedefine the target architecture to define new technologies that can be incorporated into the
  • CCreate a new investment category for innovation that becomes a new way for tracking investment
  • DUpdate the IT human resource management plan to require training and development for

How the community answered

(24 responses)
  • A
    4% (1)
  • B
    8% (2)
  • C
    75% (18)
  • D
    13% (3)

Why each option

To address stagnant technology and encourage modernization, the best strategy is to create a distinct investment category specifically for innovation, allowing for dedicated funding and tracking of new technology initiatives. This dedicated allocation fosters strategic investment in future-oriented solutions.

ADecrease spending on steady state and increase spending on modernization and enhancements.

While decreasing steady-state spending is important, simply shifting funds doesn't guarantee investment in *modernization* or *innovation* without a defined strategy and category.

BRedefine the target architecture to define new technologies that can be incorporated into the

Redefining target architecture is a planning step but doesn't, by itself, provide the funding or mechanism for *investing* in those new technologies.

CCreate a new investment category for innovation that becomes a new way for tracking investmentCorrect

Creating a new, explicit investment category for innovation provides a dedicated budget and tracking mechanism for exploring and adopting modern technologies. This ensures that funds are specifically allocated for forward-looking initiatives, rather than being absorbed by existing operational costs or incremental improvements, directly addressing the concern about stagnant technology by enabling focused investment in new areas.

DUpdate the IT human resource management plan to require training and development for

Updating HR plans for training is important for adopting new tech but doesn't directly address the *investment* strategy for acquiring and implementing modern technology.

Concept tested: IT Investment Strategy for Innovation

Topics

#IT Investment Strategy#Innovation Funding#IT Governance#Technology Modernization

Community Discussion

No community discussion yet for this question.

Full CGEIT Practice