Optimizing Value: IT Strategy Committee's Action | CGEIT Exam Prep

Addressing the Board's Concern: Optimizing Value

Question

The board of directors of an enterprise has questioned whether the business is focused on optimizing value.

The IT strategy committee's BEST action to address the board's concern is to:

Answers

Explanations

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A. B. C. D.

A.

The board of directors of an enterprise is concerned about whether the business is focused on optimizing value. In response, the IT strategy committee should take action to address this concern.

Option A, initiating reporting and review of key IT performance metrics, is not the BEST action to address the board's concern because while it provides useful information, it does not address the core issue of whether the business is focused on optimizing value.

Option B, forming a technology council to monitor the efficiency of project implementation, is not the BEST action to address the board's concern because it only focuses on project implementation, which is a tactical concern, rather than the strategic concern of optimizing value.

Option D, conducting a benchmark to assess IT value relative to competitors, is not the BEST action to address the board's concern because it only provides information on how the enterprise compares to its competitors, which may not necessarily reflect whether the enterprise is focused on optimizing value.

Therefore, the BEST action to address the board's concern is Option C, conducting a portfolio review to assess the benefits realization of IT investments. This option addresses the core concern of whether the enterprise is focused on optimizing value by assessing whether IT investments are delivering the expected benefits. By conducting a portfolio review, the IT strategy committee can identify areas where the enterprise is not realizing the expected benefits and take corrective action to optimize value.