MIS 3534-001 – Prof. Min-Seok Pang

Day 05 – Cost of IT (I)

Day 5 – in-class discussion questions

We will discuss these questions in-class next week.

  • Why does an IT system need maintenance? It does not become rusty! Or does it?
  • On IT Adventures Page 58, it reads “we’ve run closer to 5 to 6 percent of sales on IT spending. Which, by the way, Davies thought wasn’t enough to keep IT assets from degrading over time..” Why does Mr. Davies mean by degrading?
  • If it needs to spend money in maintaining IT systems, how much does a company need to spend on it? What happens with too little spending in maintenance? What happens with too much?

Reading Brief Guidelines for Day 5

Read IT Adventures Chapter 4 and 5 and write ONE reading brief (NOT two) up to 200 words that includes both chapters.

  1. What is the funding mechanism for IT at IVK? What is a chargeback? (Ch. 4)
  2. How have IT portfolio and spending at IVK evolved? (Ch. 4)
  3. Describe the concepts of “Competes vs. Qualifiers” and IT Strategic Grid (Ch. 5)