Which of the following is the PRIMARY advantage of the IT portfolio management approach over the balanced scorecard approach when managing IT investments?
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A. B. C. D.D.
IT portfolio management and balanced scorecard approaches are two methods used to manage IT investments. Both approaches are designed to assist organizations in determining which IT investments to make and how to allocate resources based on the expected return on investment.
The primary advantage of the IT portfolio management approach over the balanced scorecard approach is that it allows for the incorporation of organizational strategy in investment decisions (Option C). IT portfolio management is a strategic approach that focuses on the alignment of IT investments with the goals and objectives of the organization. By using a portfolio management approach, organizations can determine which IT investments will have the greatest impact on achieving strategic objectives and allocate resources accordingly.
The balanced scorecard approach, on the other hand, focuses on measuring performance against a set of predefined metrics. While it is useful for evaluating the performance of IT investments, it does not take into account the larger strategic goals of the organization. Therefore, it may not be as effective in helping organizations make informed decisions about which IT investments to make and how to allocate resources.
Option A, "the influence of qualitative factors on investment decisions," is not the primary advantage of the IT portfolio management approach over the balanced scorecard approach. While qualitative factors such as customer satisfaction and employee engagement are important, they are not the primary focus of the IT portfolio management approach.
Option B, "agility in adjusting investment decisions," is also not the primary advantage of the IT portfolio management approach over the balanced scorecard approach. While agility is important, the primary focus of the IT portfolio management approach is on strategic alignment.
Option D, "use of the organization's risk appetite in investment decisions," is not the primary advantage of the IT portfolio management approach over the balanced scorecard approach. While risk management is an important consideration in IT investments, it is not the primary focus of the IT portfolio management approach.