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Business of IT Assignment Discussion Questions

1. Using an organization with which you are familiar, describe the role of the most senior IS
professional. Is that person a strategist or an operational manager?
2. What advantages does a CIO bring to a business? What might be the disadvantages of having a CIO?
3. Under what conditions would you recommend using each of these funding methods to pay for information systems expenses: allocation, chargeback, and corporate budget?
4. Describe the conditions under which ROI, payback period, NPV, and EVA are most
appropriately applied to information systems investments.
5. A new inventory management system for ABC Company could be developed at a cost of
$260,000. The estimated net operating costs and estimated net benefits over six years of operation would be: Business of IT Assignment Help
Year Estimated Net
Operating Costs
Estimated Net
0 $260,000 $0
1 7,000 42,000
2 9,400 78,000
3 11,000 82,000
4 14,000 115,000
5 15,000 120,000
6 25,000 140,000
a. What would the payback period be for this investment? Would it be a good or bad
investment? Why?

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Business of IT Assignment Part 2

1 The make-versus-buy decision is important every time a new application is requested of the IS group. What, in your opinion, are the key reasons an IS organization should make its own systems? What are the key reasons it should buy an application?
2. Is offshoring a problem to your country? To the global economy? Please explain.
3. When does cloud computing make sense for a large corporation that already has an IS
organization? Give an example of when cloud computing might make sense for a start-up company?
4. Does a captive center resolve the concerns managers have about outsourcing to a third party vendor? Why or why not?

APA Style

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