Question: Chapter 8 of your textbook, Managing and Using Information Systems: A Strategic Approach, provides an overview of the business of IT, organizational maturity, and IT funding models. Read Case Study 8-1 “KLM Airlines,” in the textbook and answer all four questions regarding KLM’s leadership decision to move to a governance structure:

  • What is likely to have led to increased trust for the IT organization?
  • What might explain an item that is seemingly quite unrelated to IT (costs per kilometer flown) decreased as a result of the new CIO structure?
  • What maturity level did KLM appear to exhibit (a) in 2000 and (b) in 2011? Why?
  • Why do you think that KLM requires its employees to use a standard business case template when they want to make an investment?

Answer: The shared structure ensured that all procedures were aligned with the company objectives and improved the relationship between the business units and the IT firm…….