,CONTEXT
Chapter 1: The Information Systems Strategy Triangle
Chapter 2: Strategic Use of Information Resources
Chapter 3: Organizational Strategy and Information Systems
Chapter 4: Digital Systems and the Design of Work
Chapter 5: Information Systems and Digital Transformation
Chapter 6: Architecture and Infrastructure
Chapter 7: Security and Ethical Challenges
Chapter 8: The Business of Information Technology
Chapter 9: Governance of the Information Systems Organization
Chapter 10: Information Systems Sourcing
Chapter 11: Managing IT Projects
Chapter 12: Business Intelligence and Knowledge Management
Chapter 13: Artificial Intelligence and Emerging Technologies
,Chapter 1: The Information Systems Strategy Triangle.
1. Which statement best captures the central idea of the IS Strategy Triangle?
A. IS investments should always focus on reducing IT costs rather than
enabling business change.
B. Effective IS strategy must be jointly aligned with business strategy and
organizational strategy.
C. Organizational culture is irrelevant when designing IS strategy if the
technology is superior.
D. Business strategy should merely react to IS strategy rather than the
reverse.
Answer: B
Rationale: The IS Strategy Triangle posits that three domains — business
strategy, organizational strategy, and IS strategy — must be in mutual
alignment. Effective value creation from IS arises when technology choices
(IS strategy) support the firm’s competitive goals (business strategy) and
fit the organization’s structure, processes and culture (organizational
strategy). Statements A, C, and D ignore the need for joint alignment and
the two-way influence between domains.
Key words: IS Strategy Triangle, alignment, business strategy,
organizational strategy, mutual fit
2. A company pivots from selling physical products to a subscription platform
using IS capabilities. This primarily illustrates which role of IS within the
triangle?
A. IS as a cost center only.
B. IS as an enabler of new business models and strategic change.
C. IS as a passive infrastructure with no strategic value.
D. IS as a compliance function for regulation.
, Answer: B
Rationale: Moving to a subscription platform is a business model change
enabled by IS capabilities — software platforms, data analytics, and
customer interfaces. The triangle emphasizes IS can drive strategic change,
not just support operations. Options A, C, and D understate IS’s strategic
role in enabling new value propositions.
Key words: business model, platform, digital transformation, IS
enablement
3. According to the Strategy Triangle, which risk arises when a firm’s IS
strategy is technologically advanced but the organizational strategy resists
change?
A. Optimal strategic fit.
B. Organizational inertia leading to poor IS adoption.
C. Immediate profitability increase without disruption.
D. Legal sanctions for technology use.
Answer: B
Rationale: Advanced IS without organizational readiness causes
misalignment: employees, processes, and structure may not change —
producing low adoption, wasted investment, and failure to realize strategic
benefits. Options A and C are opposite outcomes; D is unrelated unless
technology violates law.
Key words: misalignment, organizational inertia, adoption, change
management
4. Which of the following best exemplifies the “dynamic capabilities”
concept in IS strategy?
A. Rigid IT processes that never change.
B. The ability to sense opportunities and reconfigure IS resources quickly
to exploit them.
C. Investing solely in legacy systems because they are paid for.
D. Outsourcing all IT and losing internal skills permanently.
Answer: B
, Rationale: Dynamic capabilities are firm abilities to adapt, learn, and
reconfigure resources (including IS) to respond to opportunities and
threats. Rapid sensing and reconfiguration are central. Choices A and C
represent inertia; D could undermine dynamic capability by eroding
internal skills.
Key words: dynamic capabilities, reconfiguration, sensing, agility
5. Which alignment pattern describes when business strategy changes
frequently but IS strategy remains slow and rigid, producing poor strategic
outcomes?
A. Co-evolutionary fit.
B. Strategic fit with mutual adaptation.
C. Misfit due to temporal alignment failure.
D. Symmetric alignment.
Answer: C
Rationale: Temporal misalignment occurs when the speed of change
differs across domains — here, business strategy is fast, IS is slow —
resulting in misfit and suboptimal outcomes. Co-evolutionary and mutual
adaptation imply matching speeds; symmetric alignment is not a standard
fit label.
Key words: temporal alignment, misfit, speed of change, co-evolution
6. From a resource-based view, which IS asset is most likely to confer
sustained competitive advantage?
A. Public-domain software that competitors also use.
B. Unique, hard-to-replicate data combined with firm-specific processes.
C. Off-the-shelf hardware available to all firms.
D. Standard cloud compute purchased on demand.
Answer: B
Rationale: RBV says sustained advantage comes from valuable, rare,
imperfectly imitable, and non-substitutable resources. Firm-specific data
plus proprietary processes meet these criteria. Commodity items (A, C, D)
are necessary but not sources of sustained advantage alone.
, Key words: resource-based view, unique data, proprietary processes,
inimitability
7. If an organization’s business strategy emphasizes product differentiation
via superior customer experience, which IS strategic focus best aligns with
this goal?
A. Minimizing all customer-facing technology investments.
B. Investing in customer analytics, CRM systems, and UX design to tailor
experiences.
C. Centralizing all IT to a single monolithic backend with no front-end
flexibility.
D. Cutting IT staff to reduce overhead.
Answer: B
Rationale: Differentiation through customer experience requires IS
capabilities for data analytics, CRM, and user experience — directly
supporting the business strategy. Options A, C, and D would impede
delivering superior, tailored customer experiences.
Key words: differentiation, customer analytics, CRM, UX, strategic
alignment
8. Which governance action most directly helps maintain alignment within
the IS Strategy Triangle?
A. Leaving IT investment decisions solely to isolated technical teams.
B. Establishing cross-functional steering committees that include business
leaders, IT, and organizational design representatives.
C. Banning business leaders from participating in IT planning.
D. Making all IS decisions without reference to organizational processes.
Answer: B
Rationale: Cross-functional governance ensures decision rights,
accountability, and shared understanding — maintaining alignment
among business, IS, and organizational strategies. Options A, C, and D
fragment decision authority and hinder alignment.
Chapter 1: The Information Systems Strategy Triangle
Chapter 2: Strategic Use of Information Resources
Chapter 3: Organizational Strategy and Information Systems
Chapter 4: Digital Systems and the Design of Work
Chapter 5: Information Systems and Digital Transformation
Chapter 6: Architecture and Infrastructure
Chapter 7: Security and Ethical Challenges
Chapter 8: The Business of Information Technology
Chapter 9: Governance of the Information Systems Organization
Chapter 10: Information Systems Sourcing
Chapter 11: Managing IT Projects
Chapter 12: Business Intelligence and Knowledge Management
Chapter 13: Artificial Intelligence and Emerging Technologies
,Chapter 1: The Information Systems Strategy Triangle.
1. Which statement best captures the central idea of the IS Strategy Triangle?
A. IS investments should always focus on reducing IT costs rather than
enabling business change.
B. Effective IS strategy must be jointly aligned with business strategy and
organizational strategy.
C. Organizational culture is irrelevant when designing IS strategy if the
technology is superior.
D. Business strategy should merely react to IS strategy rather than the
reverse.
Answer: B
Rationale: The IS Strategy Triangle posits that three domains — business
strategy, organizational strategy, and IS strategy — must be in mutual
alignment. Effective value creation from IS arises when technology choices
(IS strategy) support the firm’s competitive goals (business strategy) and
fit the organization’s structure, processes and culture (organizational
strategy). Statements A, C, and D ignore the need for joint alignment and
the two-way influence between domains.
Key words: IS Strategy Triangle, alignment, business strategy,
organizational strategy, mutual fit
2. A company pivots from selling physical products to a subscription platform
using IS capabilities. This primarily illustrates which role of IS within the
triangle?
A. IS as a cost center only.
B. IS as an enabler of new business models and strategic change.
C. IS as a passive infrastructure with no strategic value.
D. IS as a compliance function for regulation.
, Answer: B
Rationale: Moving to a subscription platform is a business model change
enabled by IS capabilities — software platforms, data analytics, and
customer interfaces. The triangle emphasizes IS can drive strategic change,
not just support operations. Options A, C, and D understate IS’s strategic
role in enabling new value propositions.
Key words: business model, platform, digital transformation, IS
enablement
3. According to the Strategy Triangle, which risk arises when a firm’s IS
strategy is technologically advanced but the organizational strategy resists
change?
A. Optimal strategic fit.
B. Organizational inertia leading to poor IS adoption.
C. Immediate profitability increase without disruption.
D. Legal sanctions for technology use.
Answer: B
Rationale: Advanced IS without organizational readiness causes
misalignment: employees, processes, and structure may not change —
producing low adoption, wasted investment, and failure to realize strategic
benefits. Options A and C are opposite outcomes; D is unrelated unless
technology violates law.
Key words: misalignment, organizational inertia, adoption, change
management
4. Which of the following best exemplifies the “dynamic capabilities”
concept in IS strategy?
A. Rigid IT processes that never change.
B. The ability to sense opportunities and reconfigure IS resources quickly
to exploit them.
C. Investing solely in legacy systems because they are paid for.
D. Outsourcing all IT and losing internal skills permanently.
Answer: B
, Rationale: Dynamic capabilities are firm abilities to adapt, learn, and
reconfigure resources (including IS) to respond to opportunities and
threats. Rapid sensing and reconfiguration are central. Choices A and C
represent inertia; D could undermine dynamic capability by eroding
internal skills.
Key words: dynamic capabilities, reconfiguration, sensing, agility
5. Which alignment pattern describes when business strategy changes
frequently but IS strategy remains slow and rigid, producing poor strategic
outcomes?
A. Co-evolutionary fit.
B. Strategic fit with mutual adaptation.
C. Misfit due to temporal alignment failure.
D. Symmetric alignment.
Answer: C
Rationale: Temporal misalignment occurs when the speed of change
differs across domains — here, business strategy is fast, IS is slow —
resulting in misfit and suboptimal outcomes. Co-evolutionary and mutual
adaptation imply matching speeds; symmetric alignment is not a standard
fit label.
Key words: temporal alignment, misfit, speed of change, co-evolution
6. From a resource-based view, which IS asset is most likely to confer
sustained competitive advantage?
A. Public-domain software that competitors also use.
B. Unique, hard-to-replicate data combined with firm-specific processes.
C. Off-the-shelf hardware available to all firms.
D. Standard cloud compute purchased on demand.
Answer: B
Rationale: RBV says sustained advantage comes from valuable, rare,
imperfectly imitable, and non-substitutable resources. Firm-specific data
plus proprietary processes meet these criteria. Commodity items (A, C, D)
are necessary but not sources of sustained advantage alone.
, Key words: resource-based view, unique data, proprietary processes,
inimitability
7. If an organization’s business strategy emphasizes product differentiation
via superior customer experience, which IS strategic focus best aligns with
this goal?
A. Minimizing all customer-facing technology investments.
B. Investing in customer analytics, CRM systems, and UX design to tailor
experiences.
C. Centralizing all IT to a single monolithic backend with no front-end
flexibility.
D. Cutting IT staff to reduce overhead.
Answer: B
Rationale: Differentiation through customer experience requires IS
capabilities for data analytics, CRM, and user experience — directly
supporting the business strategy. Options A, C, and D would impede
delivering superior, tailored customer experiences.
Key words: differentiation, customer analytics, CRM, UX, strategic
alignment
8. Which governance action most directly helps maintain alignment within
the IS Strategy Triangle?
A. Leaving IT investment decisions solely to isolated technical teams.
B. Establishing cross-functional steering committees that include business
leaders, IT, and organizational design representatives.
C. Banning business leaders from participating in IT planning.
D. Making all IS decisions without reference to organizational processes.
Answer: B
Rationale: Cross-functional governance ensures decision rights,
accountability, and shared understanding — maintaining alignment
among business, IS, and organizational strategies. Options A, C, and D
fragment decision authority and hinder alignment.
