Which decision-making structure is best for a company focused on IT-enabled innovation?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

In the context of a company focused on IT-enabled innovation, it's essential to understand the various decision-making structures and how they influence the capacity for innovation. Each of the listed structures has unique advantages that can support IT-enabled innovation in different ways.

A business monarchy allows decision-making to reside primarily with a small number of senior business leaders. This can lead to quicker decisions regarding IT initiatives because fewer people are involved in the approval process. If those leaders have a strong commitment to innovation, they can effectively drive the adoption of new IT solutions.

An IT monarchy, on the other hand, places decision-making authority primarily within the IT department. This structure can be effective in ensuring that technical considerations are prioritized in innovation efforts, allowing IT specialists to make decisions that support the best technological advancements and infrastructure.

The feudal structure, where various departments or business units have significant autonomy, can also encourage innovation. Each unit can pursue its own initiatives, leading to a diversity of ideas and solutions. This decentralized approach can be particularly effective in dynamic and rapidly changing sectors where responsiveness and adaptability are crucial.

Given that each of these structures can contribute positively to IT-enabled innovation in its own way, they can be considered collectively beneficial. A company may utilize elements from all three structures to optimize its

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