An organization is evaluating two business cases: one for upgrading its ERP system and one for developing a new mobile app. The ERP upgrade has a higher net present value (NPV), but the mobile app aligns more closely with the company's new strategic direction. According to best practices in business case evaluation, what should the organization do?

Select the mobile app because strategic alignment outweighs financial metrics

Evaluate both cases using a weighted scoring model that includes financial and strategic criteria

Postpone both projects until the strategic plan is revised

Select the ERP upgrade because NPV is the primary financial criterion

A financial services firm is developing a business case for a new AI-based fraud detection system. The system is expected to reduce fraud losses but also requires significant investment in data infrastructure. The firm's IT governance board requires that the business case demonstrate a clear link between the investment and the firm's strategic objective of becoming a digital leader. Which approach best satisfies this requirement?

Emphasize the technical sophistication of the AI system

Include a benefits map that shows how the system contributes to digital leadership

List the risks of not implementing the system

Focus the business case on the ROI of the fraud detection system

A project sponsor asks for a report on the benefits realized from a recently completed IT project. The report should include both the financial savings achieved and the improvement in customer satisfaction. Which type of metrics should the report include?

Both financial and non-financial metrics

Operational metrics such as system uptime

In a business case, what is the primary purpose of including the alignment with strategic objectives?

To compare the initiative with competitors' strategies

To provide a detailed technical blueprint for the solution

To demonstrate that the initiative supports the organization's overall direction and priorities

To satisfy regulatory compliance requirements for all IT projects

A company's IT investment portfolio includes several projects that are underperforming. The portfolio manager must decide whether to continue, modify, or terminate these projects. The company has a limited budget and a strategic shift towards cloud computing. Which decision-making approach is most appropriate?

Evaluate each project against the new strategic direction and performance criteria

Continue all projects to avoid sunk costs

Reallocate all budget to new cloud projects

Terminate all underperforming projects immediately

Certified in the Governance of Enterprise IT

Domain 3Objective 1

Benefits Identification and Planning CGEIT Practice Questions (Page 1)

Part of the Benefits Realization domain, which accounts for 26% of the CGEIT exam.

25questions here

5free pages

4concepts

26%of the exam

Questions 1–5

1application · medium
An organization is evaluating two business cases: one for upgrading its ERP system and one for developing a new mobile app. The ERP upgrade has a higher net present value (NPV), but the mobile app aligns more closely with the company's new strategic direction. According to best practices in business case evaluation, what should the organization do?
Select an answer first
2expert · hard
A financial services firm is developing a business case for a new AI-based fraud detection system. The system is expected to reduce fraud losses but also requires significant investment in data infrastructure. The firm's IT governance board requires that the business case demonstrate a clear link between the investment and the firm's strategic objective of becoming a digital leader. Which approach best satisfies this requirement?
Select an answer first
3application · medium
A project sponsor asks for a report on the benefits realized from a recently completed IT project. The report should include both the financial savings achieved and the improvement in customer satisfaction. Which type of metrics should the report include?
Select an answer first
4foundation · easy
In a business case, what is the primary purpose of including the alignment with strategic objectives?
Select an answer first
5expert · hard
A company's IT investment portfolio includes several projects that are underperforming. The portfolio manager must decide whether to continue, modify, or terminate these projects. The company has a limited budget and a strategic shift towards cloud computing. Which decision-making approach is most appropriate?
Select an answer first

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Benefits Identification and Planning CGEIT Practice Questions (Page 1)

Questions 1–5

A project sponsor asks for a report on the benefits realized from a recently completed IT project. The report should include both the financial savings achieved and the improvement in customer satisfaction. Which type of metrics should the report include?

In a business case, what is the primary purpose of including the alignment with strategic objectives?

Keep studying — Benefits Realization