When a Company Experiences a Lack of Focus, the IT

question 13

Multiple Choice

When a company experiences a lack of focus, the IT unit can become overwhelmed as it tries to deliver many projects that may have little company-wide value or can't be implemented well simultaneously. This is often the result of senior management failing to answer the question:

• A) Which IT capabilities should be companywide?
• B) How much should be spent on IT?
• C) Which business processes should receive our IT dollars?
• D) Whom should we blame if an IT initiative fails?

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Definitions:

Excess Burden

The cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium, often due to taxes or monopolies.

Social Cost

The total cost to society as a result of an action or activity, including both private costs incurred by individuals and external costs affecting others.

Monopoly Profit-maximizing

The process by which a monopoly sets its output and price levels to achieve the highest possible profit, given its unique position as the sole seller of a product or service.

Government Failure

Situations where government intervention in the economy creates inefficiency, leading to a misallocation of resources or failure to achieve intended outcomes.