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Isaca CGEIT Exam - Topic 7 Question 110 Discussion

Actual exam question for Isaca's CGEIT exam
Question #: 110
Topic #: 7
[All CGEIT Questions]

An IT strategy committee wants to evaluate how well the IT department supports the business strategy. Which of the following is the BEST method for making this determination?

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Suggested Answer: C

The BEST method for the IT strategy committee to evaluate how well the IT department supports the business strategy is to use IT balanced scorecard reporting.An IT balanced scorecard (BSC) is a strategic management tool that translates the IT vision and mission intomeasurable objectives, indicators, targets, and initiatives across four perspectives: financial, customer, internal process, and learning and growth1.An IT balanced scorecard reporting is a process of collecting, analyzing, and communicating the performance data and results of the IT department based on the IT BSC framework2. An IT balanced scorecard reporting can help to:

Align the IT objectives and activities with the business strategy and expectations3

Monitor and evaluate the efficiency, effectiveness, and value of the IT department

Identify the strengths, weaknesses, opportunities, and threats of the IT department

Communicate and demonstrate the contribution and impact of the IT department to the business outcomes

Therefore, an IT balanced scorecard reporting is the most suitable method for the IT strategy committee to assess how well the IT department supports the business strategy.

The other options are not as good as option C. While it is useful to conduct a capability maturity assessment, a customer survey analysis, or an IT controls assurance program, these are not comprehensive enough to evaluate how well the IT department supports the business strategy. They are rather focused on specific aspects of the IT department, such as its processes, services, or controls. They do not necessarily cover all four perspectives of the IT BSC framework, which provide a holistic view of the IT performance and alignment with the business strategy.Reference:=

The IT Balanced Scorecard (BSC) Explained - BMC Software1

What Is a Balanced Scorecard (BSC), How Is it Used in Business?2

How to Align Your Business Strategy with Your Technology Strategy ...3

How to Measure Your Strategic Plan's Success - dummies

SWOT Analysis: What It Is and When to Use It - Business News Daily

How to Communicate Strategy Effectively - ClearPoint Strategy


Contribute your Thoughts:

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Keva
4 days ago
Customer survey analysis could provide some insights, but I wonder if it’s comprehensive enough to evaluate overall IT support for the business strategy.
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Solange
9 days ago
I remember practicing a question about capability maturity assessments, but I feel like they focus more on internal processes rather than direct support for business strategy.
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Mitzie
14 days ago
I think the IT balanced scorecard reporting might be the best choice since it aligns IT performance with business goals, but I'm not entirely sure.
upvoted 0 times
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