Isaca CGEIT Practice Test - Questions Answers, Page 55

This is because calibrating and scaling delivery of IT services means adjusting and optimizing the IT service portfolio, processes, and resources to meet the changing and diverse needs and expectations of the business1. By following this approach, the large enterprise can:

Align IT services with business strategy, objectives, and priorities1

Enhance IT service quality, efficiency, and effectiveness1

Improve IT service agility, flexibility, and responsiveness1

Reduce IT service costs, risks, and waste1

Increase IT service value, satisfaction, and innovation1

Calibrating and scaling delivery of IT services can help the large enterprise revamp its IT services in a way that supports and enables the business success.

The other options, addressing gaps within the management of IT-related risk, focusing on business innovation through knowledge, expertise, and initiatives, and adhering to on-time and on-budget IT service delivery are not as appropriate as calibrating and scaling delivery of IT services for a large enterprise to follow when revamping its IT services. They are more related to specific aspects or outcomes of IT service management, rather than a holistic and strategic approach. They may also be too narrow or rigid for a large enterprise that needs to adapt and evolve its IT services to the dynamic and complex business environment. They may not address the full scope or potential of IT service improvement and transformation.

This is because moving all IT applications to an external SaaS cloud provider means that the organization is outsourcing the development, deployment, maintenance, and operation of its IT applications to a third-party vendor.This implies that the organization is relinquishing some control and ownership over its IT applications, and relying on the vendor to provide the required functionality, performance, quality, and security1. Therefore, the organization needs to shift its focus from delivering IT services internally to managing IT services externally.This involves the following activities2:

Establishing and maintaining a clear and comprehensive contract or service level agreement (SLA) with the SaaS vendor that defines the roles, responsibilities, expectations, and outcomes of both parties2

Monitoring and measuring the SaaS vendor's compliance with the contract or SLA, and ensuring that the vendor meets the agreed service levels, standards, and metrics2

Communicating and collaborating with the SaaS vendor regularly, and resolving any issues, conflicts, or changes that may arise during the service delivery2

Evaluating and improving the effectiveness and efficiency of the SaaS vendor's service delivery, and identifying and implementing any opportunities for innovation or optimization2

Managing the risks and challenges associated with outsourcing IT services to a SaaS vendor, such as data privacy, security, availability, compatibility, integration, dependency, cost, and performance issues2

The shift from service delivery to service management can have a significant impact on the IT governance framework, processes, policies, and practices of the organization. It can also affect the IT skills, roles, and responsibilities of the IT staff and stakeholders.Therefore, the organization needs to adapt and adjust its IT governance approach accordingly to ensure that it can effectively oversee and optimize its IT services in a SaaS environment3.

The other options, the integration of the IT department with business lines, the improvement of IT service alignment with business, and the necessity to update key risk indicators (KRIs) are not as significant as the shift from service delivery to service management for moving all IT applications to an external SaaS cloud provider from an IT governance perspective. They are more related to the outcomes or consequences of moving to a SaaS environment, rather than the impact or change itself. They may also not be unique or specific to a SaaS environment, as they may apply to other types or models of IT service delivery as well.

This is because performance metrics are measurable values that indicate how well the IT assets are performing in terms of functionality, quality, efficiency, and effectiveness1. By implementing performance metrics for key IT assets, the organization can:

Monitor and review the IT assets' progress, performance, quality, and outcomes

Highlight the IT assets' achievements, challenges, and opportunities

Demonstrate the alignment of the IT assets with the IT strategy, goals, and priorities

Provide recommendations and feedback for the IT assets' improvement and adjustment

Implementing performance metrics for key IT assets can help the organization determine the contribution of IT assets in achievement of IT goals, and ensure that they deliver value to the business.

The other options, establishing the span of control during the life cycle of IT assets, determining the average cost of controls for protection of IT assets, and comparing the performance of IT assets against industry best practices are not as beneficial as determining the contribution of IT assets in achievement of IT goals for implementing performance metrics for key IT assets. They are more related to specific aspects or outcomes of IT asset management, rather than a holistic and strategic benefit. They may also not be relevant or applicable to all types or categories of IT assets. They may not address the full scope or potential of IT asset improvement and optimization.Reference:=What Is an IT Asset Management KPI? | Filewave,Performance Measurement Metrics for IT Governance - ISACA

A cost-benefit analysis (CBA) is a process that's used to estimate the costs and benefits of projects or investments to determine their profitability for an organization.A CBA is a versatile method that's often used for business administration, project management and public policy decisions1. A CBA can help the CIO prioritize the improvement initiatives based on their expected value and feasibility, and justify the allocation of resources and funding for them.A CBA can also align the IT goals with the enterprise objectives and demonstrate the IT value delivery to the stakeholders2.Reference:=

2: CGEIT Exam Content Outline | ISACA

1: Cost-Benefit Analysis: A Quick Guide with Examples and Templates

Key performance indicators (KPIs) are metrics that measure the performance of a project, program, or investment against a set of targets, objectives, or benchmarks. KPIs can help an enterprise to determine whether a current program for IT infrastructure migration to the cloud is continuing to provide benefits by tracking the progress, efficiency, quality, and outcomes of the program.KPIs can also help to identify any gaps, issues, or risks that may affect the program's success and enable timely corrective actions12.

Total cost of ownership (TCO) is the purchase price of an asset plus the costs of operation over its life span.TCO can help an enterprise to compare the costs and benefits of different IT infrastructure options, such as cloud versus on-premise, but it does not measure the ongoing performance or benefits of a chosen option3.

Key risk indicators (KRIs) are metrics that monitor and predict potential risks that may negatively impact an enterprise's objectives or operations.KRIs can help an enterprise to identify and mitigate any risks associated with IT infrastructure migration to the cloud, such as security breaches, data loss, or service disruptions, but they do not measure the benefits or value of the program45.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used to evaluate the profitability or return on investment of a project or investment by discounting the future cash flows to their present value.NPV can help an enterprise to decide whether to undertake an IT infrastructure migration to the cloud based on its expected net value, but it does not measure the actual performance or benefits of the program16.Reference:=

3: Total Cost of Ownership: How It's Calculated With Example - Investopedia

4: Key Risk Indicators (KRIs) - National Treasury

2: How to Develop Key Risk Indicators (KRIs) to Fortify Your Business | AuditBoard

5: How to Develop Effective Key Risk Indicators - Secureframe

1: Net Present Value (NPV) - Definition, Examples, How to Do NPV Analysis

6: NPV Formula - Learn How Net Present Value Really Works, Examples

A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market.It consists of four or five stages, depending on the source: introduction, growth, maturity, decline, and sometimes development1. A product life cycle information can help the enterprise to estimate the ongoing maintenance costs of IT-enabled business investments, as well as their expected benefits, risks, and returns.By requiring business cases to have product life cycle information, the enterprise can prioritize IT-enabled business investments based on their long-term value and alignment with the enterprise's objectives2.

A balanced scorecard is a management system that clarifies the strategy and vision of an organization, translating them into action that can be tracked.It uses four perspectives: financial, customer, internal business process, and knowledge, education, and growth3. A balanced scorecard for the IT project portfolio can help the enterprise to measure the performance and value of IT projects, but it does not necessarily consider the ongoing maintenance costs of IT-enabled business investments.

A portfolio manager is a specialized project manager who focuses on IT projects.They are responsible for keeping projects within budget, optimizing time management for IT teams, and allocating resources appropriately4. Establishing a portfolio manager role to monitor and control the IT projects can help the enterprise to manage its IT project portfolio more effectively, but it does not address the issue of prioritizing IT-enabled business investments based on their ongoing maintenance costs.

An enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of an organization.It describes the current and future state of the organization in terms of its strategy, processes, information systems, and technology infrastructure5. Mandating an EA review with business stakeholders can help the enterprise to align its IT-enabled business investments with its strategic goals and ensure compliance with defined security rules, but it does not solve the problem of considering the ongoing maintenance costs of IT-enabled business investments.

To prevent an IT system from becoming obsolete before achieving its planned return on investment (ROI), it is crucial to manage the benefit realization throughout the entire lifecycle of the system. This approach involves continuously monitoring and adjusting the system to ensure it delivers the expected value and benefits from inception through decommissioning. This proactive management helps in adapting to changes in technology and business environments, thus extending the relevance and utility of the IT system. Obtaining independent assurance, defining IT and business goals, and ordering an external audit are important practices but do not directly address the ongoing management of the system's value delivery and adaptability over time.

The best way to address the issue of IT staff not keeping their skills current, despite an adequate training budget, is to establish an agreed-upon skills development plan with each employee. This personalized approach ensures that training and development activities are directly aligned with both the organization's needs and the individual's career goals, thereby increasing the likelihood of participation and the application of new skills. While providing incentives and creating centers of excellence can be supportive, a tailored development plan directly engages each staff member in their growth, ensuring relevance and commitment.

Facilitating the adoption of an IT governance program in an enterprise requires addressing the behavioral and cultural aspects of change. This approach recognizes that the success of such a program depends not only on the structural and strategic elements but also on how well the people within the organization accept and adapt to the changes. Addressing cultural aspects involves engaging stakeholders, fostering a governance mindset, and overcoming resistance to change, thereby ensuring a smoother and more effective implementation. While defining roles, building business cases, and communicating strategies are critical, they must be complemented by efforts to manage the human side of change.