IT Strategy in Action (McKeen/Smith)

Chapter 13

Digital Dashboards
1)
Strategic plans articulate a comprehensive framework for corporate goals that could be cascaded down the hierarchy
via sub-goals as well as aggregated and rolled back up into corporate goals.
Answer:

FALSE

Page Ref: 174

Skill:

Moderate
AACSB:

Use of IT

2)
Executive information systems allow information to be tailored to managers needs and pulled from discrete systems,
providing "drill down" capability into details as needed.
Answer:

FALSE
Page Ref: 174
Skill:

Moderate

AACSB:

Use of IT

3)
The concept of executive information systems is that there are a limited number of factors that must be monitored by
managers on a continuous basis in order to stay in control.
Answer:

FALSE

Page Ref: 174

Skill:

1
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Moderate
AACSB:

Use of IT

4)
The promise of balanced scorecards is no less than the delivery of a robust, integrated system of accountability and
performance.
Answer:

FALSE
Page Ref: 174
Skill:

Moderate

AACSB:

Use of IT

5)
Digital dashboard usage is definitely increasing, and is primarily focused on operational
and/or financial data.
Answer:

TRUE

Page Ref: 176

Skill:

Easy
AACSB:

Use of IT

6)
The most popular category of dashboard usage is strategy based.
Answer:

FALSE
Page Ref: 177
Skill:

2
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Easy

AACSB:

Use of IT

7)
Everything displayed in a digital dashboard relates to outcomes.
Answer:

TRUE

Page Ref: 177

Skill:

Easy
AACSB:

Use of IT

8)
Score keeping is not an example of the management information use of an executive support systems.
Answer:

FALSE
Page Ref: 177
Skill:

Hard

AACSB:

Use of IT

9)
Problem solving is typically a standardized process that evolves over long periods of time in an organization.
Answer:

FALSE

Page Ref: 177

Skill:

Hard
AACSB:

3
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

10)
Score keeping represents information-collecting activity to justify past decision making, rather than to guide future
decision making.
Answer:

FALSE

Page Ref: 178

Skill:

Hard
AACSB:

Use of IT

11)
Opportunity-based and project-based dashboards predominantly represent score keeping and problem-identification
applications and offer little capability for problem solving and analysis.
Answer:

FALSE
Page Ref: 178
Skill:

Moderate

AACSB:

Use of IT

12)
The strategy-based dashboard works to focus organizational attention and facilitate learning and offering problemsolving activity.
Answer:

FALSE

Page Ref: 178

Skill:

Hard
AACSB:

4
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

13)
The decision as to what is most important to monitor via a digital dashboard is a decision about where organizational
attention will be focused.
Answer:

TRUE

Page Ref: 178

Skill:

Hard
AACSB:

Use of IT

14)
Designing and developing digital dashboards is solely the responsibility of IT.
Answer:

FALSE
Page Ref: 178
Skill:

Moderate

AACSB:

Use of IT

15)
While dashboards are most effective when managers are allowed to personalize them, it is not very important to set
limits on how much personalization to allow.
Answer:

FALSE

Page Ref: 179

Skill:

Hard
AACSB:

5
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

16)
A digital dashboard as an electronic interface that provides employees with timely, personalized information to enable
them to monitor and analyze the performance of the organization.
Answer:

TRUE

Page Ref: 175

Skill:

Easy
AACSB:

Use of IT

17)
Data mining systems are much more focused on the provision of information and less focused on supporting the
analysis of the information provided.
Answer:

FALSE
Page Ref: 175
Skill:

Hard

AACSB:

Use of IT

18)
Digital dashboards have much broader application within organizations than executive information systems.
Answer:

TRUE

Page Ref: 175

Skill:

Moderate
AACSB:

6
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

19)
Digital dashboards offer real-time or near-real-time access to data and are automated to the point of requiring little or
no manual intervention to process and summarize information.
Answer:

TRUE

Page Ref: 176

Skill:

Easy
AACSB:

Use of IT

20)
A company begins to become a performance-accountable organization when management commits to increasing each
person's knowledge and understanding of what drives organizational performance.
Answer:

TRUE
Page Ref: 176
Skill:

Easy

AACSB:

Reflective Thinking

21)
________ articulate a comprehensive framework for corporate goals that could be cascaded down the hierarchy via subgoals as well as aggregated and rolled back up into corporate goals.
A)

Strategic plans
B)
Balanced scorecards
C)

7
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Executive information systems

D)

Data mining systems

Answer:

B
Page Ref: 174
Skill:

Moderate

AACSB:

Use of IT

22)
________ allow information to be tailored to managers needs and pulled from discrete systems, providing "drill down"
capability into details as needed.
A)

Strategic plans
B)
Balanced scorecards
C)

Executive information systems

D)

Data mining systems

Answer:

Page Ref: 174

Skill:

Moderate
AACSB:

Use of IT

8
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

9
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

23)
The concept of ________ is that there are a limited number of factors that must be monitored by managers on a
continuous basis in order to stay in control.
A)

Strategic plans
B)
Balanced scorecards
C)

Executive information systems

D)

Data mining systems

E)
Critical success factors
Answer:

E
Page Ref: 174
Skill:

Moderate

AACSB:

Use of IT

24)
The promise of ________ is no less than the delivery of a robust, integrated system of accountability and performance.
A)

Strategic plans
B)
Balanced scorecards
C)

Executive information systems

D)
10
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Digital dashboards
Answer:

D
Page Ref: 174
Skill:

Moderate

AACSB:

Use of IT

25)
A ________ as an electronic interface that provides employees with timely, personalized information to enable them to
monitor and analyze the performance of the organization.
A)

digital dashboard
B)
executive information system
C)

data mining system

D)

a web portal
Answer:

Page Ref: 175

Skill:

Moderate
AACSB:

Use of IT

26)
________ are much more focused on the provision of information and less focused on supporting the analysis of the
11
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

information provided.
A)

Digital dashboards
B)
Executive information systems
C)

Data mining systems

D)

Web portals
Answer:

A
Page Ref: 175
Skill:

Moderate

AACSB:

Use of IT

12
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

27)
The most popular category of dashboard usage is:
A)

performance based.
B)
project based.
C)

opportunity based.
D)

strategy based.
E)
None of the above
Answer:

A
Page Ref: 177
Skill:

Moderate

AACSB:

Use of IT

28)
The type of dashboard that displays a basic mix of financial and non-financial results is called:
A)

performance based.
B)
project based.
C)

opportunity based.
D)
13
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

strategy based.
E)
None of the above
Answer:

A
Page Ref: 177
Skill:

Moderate

AACSB:

Use of IT

29)
The type of dashboard that displays information related to status reporting where the only comparative data is actual
to budget on specific projects or activities is called:
A)

performance based.
B)
project based.
C)

opportunity based.
D)

strategy based.
E)
None of the above
Answer:

Page Ref: 177

Skill:

Easy
AACSB:

14
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

30)
Which of the following IS NOT an example of the management information uses of executive support systems?
A)

Score keeping
B)
Problem solving
C)

Focusing organizational attention and learning

D)

Legitimizing decisions
E)
None of the above
Answer:

Page Ref: 177

Skill:

Hard
AACSB:

Use of IT

15
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

31)
Which type of digital dashboard predominantly represents problem-identification applications and offers little
capability for problem solving and analysis?
A)

performance based.
B)
project based.
C)

opportunity based.
D)

strategy based.
E)
Both A and B
Answer:

E
Page Ref: 178
Skill:

Moderate

AACSB:

Use of IT

32)
The issues with respect to digital dashboard design and development primarily relate to:
A)

content and delivery.

B)
project and content.
C)

delivery and strategy.

D)
16
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

strategy and delivery.

E)
project and strategy.
Answer:

A
Page Ref: 178
Skill:

Hard

AACSB:

Use of IT

33)
Which of the following are some ways that that executive support systems can create business value?
A)

Enhancing the way executives think about the business.

B)
Providing executives with better planning and control capabilities.
C)

Leveraging executives' time.

D)

Educating executives about the use and potential of IT.

E)
All of the above.
Answer:

Page Ref: 180

Skill:

Easy
AACSB:

17
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

34)
Requiring all digital dashboard analytic reporting to operate from the same set of facts is referred to as:
A)

data mining.
B)
database management.
C)

data definitions.
D)

single view of the truth.

E)
None of the above
Answer:

Page Ref: 180

Skill:

Moderate
AACSB:

Use of IT

18
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

35)
The type of thinking a manager engages in to think back in time to review and interpret past events and experiences
while making a decision is called:
A)

Strategic

B)

Retrospective
C)

Introspective
D)

Prospective

E)

None of the above

Answer:

B
Page Ref: 181
Skill:

Hard

AACSB:

Reflective Thinking

36)
The type of thinking a manager engages in to think out into the future and envisioning the future state of the
organizational environments while making a decision is called:
A)

Strategic

B)

Retrospective
C)

Introspective
19
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

D)

Prospective

E)

None of the above

Answer:

D
Page Ref: 181
Skill:

Hard

AACSB:

Reflective Thinking

37)
The type of thinking a manager engages in to reflect and examining one's own thoughts, beliefs, and assumptions
while making a decision is called:
A)

Strategic

B)

Retrospective
C)

Introspective
D)

Prospective

E)

None of the above

Answer:

Page Ref: 181

Skill:

Hard

20
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AACSB:

Reflective Thinking

38)
Digital dashboards provide managerial benefits to the extent that they can support:
A)

strategic thinking.
B)
one type of management thinking.
C)

two types of management thinking.

D)

three types of management thinking.

E)
all four types of management thinking.
Answer:

D
Page Ref: 181
Skill:

Hard

AACSB:

Reflective Thinking

21
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

39)
Organizations use a blend of leading indicators instead of lagging indicators to extract trends in support of more
________ management thinking.
A)

Strategic

B)

Retrospective
C)

Introspective
D)

Prospective

E)

None of the above

Answer:

D
Page Ref: 181
Skill:

Hard

AACSB:

Reflective Thinking

40)
Which of the following will doom a digital dashboard implementation to failure?
A)

Inappropriate metrics
B)
Unaligned goals
C)

Nonstandard data definitions

D)
22
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Absence of senior management support

E)
All of the above
Answer:

E
Page Ref: 185
Skill:

Moderate

AACSB:

Use of IT

41)
What is a digital dashboard?
Answer:

A digital dashboard as an electronic interface (typically a portal) that provides employees with timely, personalized
information to enable them to monitor and analyze the performance of the organization. There is an information
component inherent within this definition, as well as a delivery component. Digital dashboards are not limited to
executives and they are not necessarily interactive. Digital dashboards have much broader application within
organizations than executive information systems. Digital dashboards are much more focused on the provision of
information and less focused on supporting the analysis of the information provided.
Page Ref: 175
Skill:

Moderate
AACSB:

Use of IT

42)
What are the (4) benefits to an organization to develop digital dashboards?
Answer:

Alignment with strategy and accountabilities.

Enhanced decision-making support and analysis.
Improved integrity and timeliness of data.
Operational efficiencies.
Page Ref: 182

23
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Skill:

Moderate
AACSB:

Use of IT

24
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

43)
List and describe (3) strategies for successful deployment of digital dashboards.
Answer:

Any combination of the following:

Make a good first impression. The power of dashboards relies significantly on the success of user adoption. It comes
down to how rapidly a critical mass of users will adopt the dashboard interface to perform their daily activities which
can depend heavily on the initial dashboard
launch.
Metrics first . . . dashboards second. Organization need to be careful what is measured. Staff will make every effort to
perform well against established measures, and sometimes this unexpectedly produces dysfunctional behavior.
Dashboards are a means to an end.
Use "decision-impelling" designs for dashboards. The majority of the information provided by a dashboard is
essential for monitoring it's a firm's operation. Dashboards provide a tool for management to react to situations that
present themselves, sometimes with very little warning.
Align dashboards with prevailing organizational culture. Dashboard deployment should adhere to whatever culture
is in place or risk dysfunctional behavior. It is easy to underestimate the impact of resident norms and values.
Design dashboards for action, not analysis. Dashboards allow management to "get everyone on the same page" when
making important management decisions. Dashboards should not be used on problem solving. Dashboards also need to
be action oriented if they are to be effective.
Page Ref: 185
Skill:

Moderate

AACSB:

Use of IT

44)
Is there a difference between digital dashboards and electronic reporting? If so, what are the differences?
Answer:

Dashboards offer real-time or near-real-time access to data and are automated to the point of requiring little or no
manual intervention to process and summarize information. Electronic reporting systems reports tend to be more
standardized and institutionalized within the organization, offering much less capability for customization. Dashboards
should offer all of the critical information required for the task at hand. Thus, reports tend to be more specific, without
the expectation of being comprehensive.
Page Ref: 176
Skill:

Moderate

25
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AACSB:

Use of IT

26
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

45)
List and describe (3) categories of digital dashboards.
Answer:

Performance based. These dashboards display a basic mix of financial and non-financial results broken out by year,
actual versus target, sometimes earmarking performance against competition. Content might be product sales, cash
flow, inventory management, sales growth, market trends, or repeat versus new business. Most offer drilldown
capability and near-real-time if not real-time information. The implicit intent of this category of dashboard is to alert
employees to either an impending or an existing problem requiring action.
Project based. Information presented by these dashboards relates primarily to status reporting where the only
comparative data is actual to budget on specific projects or activities. These reports might reflect completion of key
tasks and/or milestone events, assignment and availability of resources, modifications to plan, revision of estimates and
progress tracking, and implementation forecasts.
Opportunity-based. The dashboards guide employees toward new opportunities for enhancing the business.
Page Ref: 177
Skill:

Moderate

AACSB:

Use of IT

46)
List and describe (4) management information uses of executive support systems.
Answer:

Score keeping. Score keeping is typically a standardized process that evolves over long periods of time in an
organization. It provides consistency among time periods so comparisons are easy to make.
Problem solving. This consists of a sequence of steps, including recognizing the existence and nature of a problem,
outlining alternative possible corrective actions, and deciding on the best action then implementing it.
Focusing organizational attention and learning. This first aims to obtain agreement on what the targets of attention
should be then provides a feedback loop to link attention, action, and outcome.
Legitimizing decisions. Legitimizing decisions represents information-collecting activity to justify past decision making,
rather than to guide future decision making
Page Ref: 178
Skill:

Moderate

AACSB:

27
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Use of IT

47)
What are critical success factors?
Answer:

The concept of critical success factors is that there are a limited number of factors that must be monitored by managers
on a continuous basis in order to stay in control. By extension, information systems focused on CSFs would guarantee
the provision of mission-critical information. One can think of CSFs as an early warning system; when signals appear,
managers need to act. The CSF methodology does not identify what action to take; it is simply a minimalist approach
to information overload.
Page Ref: 174
Skill:

Easy
AACSB:

Analytic Skills

28
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

48)
What are (2) issues associated with digital dashboard design and development?
Answer:

The issues with respect to dashboard design and development primarily relate to
content and delivery. While content issues focus on the information that is included
within the dashboard, delivery issues focus on how that information is presented.
Logically, the two are separate; in practice, they are closely related.
Page Ref: 178
Skill:

Hard

AACSB:

Use of IT

49)
What are some of ways that executive support systems can create business value?
Answer:

Enhancing the way executives think about the business.

Providing executives with better planning and control capabilities.
Leveraging executives' time.
Educating executives about the use and potential of IT.
Page Ref: 180
Skill:

Moderate
AACSB:

Use of IT

50)
List and describe the (3) types of thinking that managers engage in while making a decision.
Answer:

A manager must engage in three types of thinking:

Retrospective. Thinking back in time to review and interpret past events and experiences.
Introspective. Reflecting and examining one's own thoughts, beliefs, and assumptions; looking into one's own mental
models.

29
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Prospective. Thinking out into the future and envisioning the future state of the organizational environments.
Page Ref: 181
Skill:

Moderate

AACSB:

Reflective Thinking

30
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall