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Which of the following is not a potential benefit of an IT investment?

Multiple Choice
Revenue enhancement
Revenue savings
Cost avoidance
Revenue protection

1 Answer

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Final answer:

Revenue protection is not typically seen as a direct benefit of IT investments, although IT can indirectly contribute to revenue protection. Revenue enhancement, revenue savings, and cost avoidance are direct benefits associated with IT investments.

Step-by-step explanation:

The question relates to the potential benefits of an IT investment. Among the options given, revenue protection is not typically considered a direct benefit of IT investments. While IT can help to safeguard assets, revenue protection is more about retaining existing revenue rather than enhancing, saving, or avoiding costs through new IT capabilities. Nevertheless, strong IT systems can indirectly contribute to revenue protection by ensuring business processes and services are reliable and continuously available, which maintains customer satisfaction and protects against revenue losses due to downtime or data breaches.

Revenue enhancement, revenue savings, and cost avoidance are all potential direct benefits of IT investments. They correspond respectively to increasing income through new IT-enabled services or products, reducing ongoing costs via more efficient technology, and preventing future expenses by implementing technology that avoids the need for further spending.The correct answer is Revenue protection.An IT investment refers to the allocation of resources in technology-related assets, systems, or projects. It is typically undertaken by businesses to improve their operations and achieve certain goals. While IT investments can provide various benefits, such as revenue enhancement, revenue savings, and cost avoidance, revenue protection is not typically considered a direct benefit.

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