COBIT-2019 practice question 14 of 25

Which of the following is an important component for an enterprise strategy archetype of cost leadership as defined by COBIT 2019?

Full set: 194 questions
Answer options
A: Organizational structures
B: Skills and competencies
C: Enterprise architect
D: Support for the portfolio management role with an investment office Correct answer
Correct Answer:
D. Support for the portfolio management role with an investment office
Explanation

According to the COBIT 2019 Design Guide, an enterprise pursuing a cost leadership strategy focuses on minimizing operational costs. A critical component to achieve this is rigorous control over investments and expenditures. Establishing strong support for the portfolio management role, often through a dedicated investment office, ensures that all initiatives are evaluated for cost-effectiveness and alignment with the goal of being a low-cost provider. This function provides the necessary governance and oversight to approve, manage, and monitor a portfolio of programs and projects that directly contribute to cost optimization and operational efficiency, which are the hallmarks of a cost leadership strategy.

Why Incorrect

A. Organizational structures: This is a general governance system component in COBIT, not a specific, defining component for the cost leadership archetype as outlined in the Design Guide.
B. Skills and competencies: This option is too generic. The COBIT Design Guide specifies the need for skills and competencies related to cost management and automation, not just general skills.
C. Enterprise architect: While the role of an enterprise architect is listed as an important component for this archetype, the strategic oversight provided by a portfolio management function is more foundational to controlling enterprise-wide costs and investments.

References

ISACA, COBIT® 2019 Design Guide: Designing an Information and Governance Solution (2018). Chapter 3, Design Factors for a Governance System, Section 3.2.1 Enterprise Strategy, Table 3.3 Characteristics of Enterprise Strategy Archetypes, page 23. The table explicitly lists "Support for the portfolio management role with an investment office" as an "Important Component" for the "Cost Leadership" archetype. The same table also lists "Enterprise architect" and "Skills and competencies related to cost management and automation."

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