WGU C724 Information Systems Management OA Actual
Exam 2026/2027 | Questions with Verified Answers | 100%
Correct | Pass Guaranteed
SECTION 1: Information Systems Foundations
Competency Focus: C724 Competencies 1.1-1.4: Define IS components; Distinguish IT
vs IS; Analyze business-IT alignment; Evaluate competitive advantage
Q1: A regional healthcare network is implementing a new patient portal that allows
appointment scheduling, test results access, and telemedicine consultations. Which
component of an information system is represented by the training provided to clinical
staff on how to use the portal?
A. Hardware
B. Software
C. Data
D. People and Procedures
Correct Answer: D
Rationale: Competency: C724 Competency 1.1: Identify the five-component framework
of information systems.
Concept: The five-component model includes hardware, software, data, procedures, and
people. Training programs and operational procedures are the "people and procedures"
component that enables effective system use.
Distractor Analysis: Hardware (A) refers to physical devices. Software (B) is the code
and applications. Data (C) is the information processed. The training element
specifically addresses human capital and processes.
,Q2 (Select all that apply): Which of the following scenarios represent sustainable
competitive advantage through information systems? (Select all that apply.)
A. A logistics company develops proprietary routing algorithms that reduce delivery
costs by 23%
B. Purchasing the same SaaS CRM platform that competitors use
C. A retailer builds a supplier ecosystem with integrated blockchain traceability
D. Implementing office productivity software from a major vendor
E. A bank creates patented fraud detection AI models
Correct Answer: A, C, E
Rationale: Competency: C724 Competency 1.4: Evaluate how information systems
create sustainable competitive advantage.
Concept: Sustainable advantage requires unique, valuable, difficult-to-imitate resources
(proprietary tech, patents, exclusive partnerships).
Distractor Analysis: Off-the-shelf solutions (B, D) are available to all competitors and
create parity, not advantage. Proprietary systems, patented innovations, and unique
ecosystems (A, C, E) create barriers to imitation.
Q3: Which statement accurately distinguishes between Information Technology (IT) and
Information Systems (IS)?
A. IT includes the business processes; IS is limited to hardware and software
B. IT refers to hardware, software, and networking components; IS integrates IT with
people and procedures to achieve business goals
C. IT and IS are interchangeable terms in modern business contexts
D. IT focuses on data analysis; IS focuses on infrastructure management
Correct Answer: B
Rationale: Competency: C724 Competency 1.2: Differentiate between information
technology and information systems.
Concept: IT is the technical substrate (hardware, software, data components). IS is the
socio-technical system that includes IT PLUS people and procedures working toward
organizational objectives.
,Distractor Analysis: A reverses the definitions. C ignores critical distinctions taught in
WGU course materials. D misattributes functional areas.
Q4: Using Porter's Five Forces framework, which competitive force is being addressed
when a streaming service invests heavily in exclusive original content production?
A. Threat of new entrants
B. Bargaining power of substitutes
C. Bargaining power of buyers
D. Rivalry among existing competitors
Correct Answer: B
Rationale: Competency: C724 Competency 1.3: Apply Porter's Five Forces model to IT
strategy.
Concept: Exclusive content makes the service less substitutable with alternatives,
directly reducing the threat of substitutes. Original content creates differentiation that
customers cannot find elsewhere.
Distractor Analysis: While it may indirectly affect other forces, the primary strategic
intent is reducing substitutability. New entrants (A) relates to barriers to entry. Buyer
power (C) concerns customer price sensitivity. Rivalry (D) is about direct competition.
Q5: A manufacturing firm experiences a 15% efficiency gain after implementing IoT
sensors on production equipment. However, the maintenance team resists using the
new system because "the old clipboard method worked fine." Which critical success
factor for IS implementation is lacking?
A. Technical feasibility
B. Economic feasibility
C. Organizational feasibility
D. Schedule feasibility
Correct Answer: C
Rationale: Competency: C724 Competency 1.5: Analyze organizational change
management factors in IS adoption.
, Concept: Organizational feasibility assesses user readiness, change resistance, training
adequacy, and cultural alignment. Technical success without user adoption guarantees
failure.
Distractor Analysis: Technical feasibility (A) was proven by the 15% gain. Economic
feasibility (B) is positive. Schedule (D) is unrelated to user resistance.
SECTION 2: Computer Hardware, Software & Networking
Competency Focus: C724 Competencies 2.1-2.4: Evaluate hardware/software
components; Analyze network architectures; Assess infrastructure decisions
Q6: A fast-growing e-commerce startup needs server infrastructure that can
automatically scale from 1,000 to 100,000 concurrent users during holiday sales. Which
architecture best meets this requirement?
A. On-premises blade servers
B. Elastic cloud computing instances with load balancing
C. Mainframe computer system
D. Peer-to-peer network topology
Correct Answer: B
Rationale: Competency: C724 Competency 2.3: Evaluate cloud computing and
infrastructure-as-a-service solutions.
Concept: Elastic cloud infrastructure provides automatic, rapid scalability (horizontal
scaling) matched to demand fluctuations without overprovisioning capital expenses.
Distractor Analysis: On-premises (A) requires massive upfront CAPEX and cannot scale
rapidly. Mainframes (C) handle volume but lack elasticity for unpredictable spikes.
Peer-to-peer (D) is not a server architecture for e-commerce.
Exam 2026/2027 | Questions with Verified Answers | 100%
Correct | Pass Guaranteed
SECTION 1: Information Systems Foundations
Competency Focus: C724 Competencies 1.1-1.4: Define IS components; Distinguish IT
vs IS; Analyze business-IT alignment; Evaluate competitive advantage
Q1: A regional healthcare network is implementing a new patient portal that allows
appointment scheduling, test results access, and telemedicine consultations. Which
component of an information system is represented by the training provided to clinical
staff on how to use the portal?
A. Hardware
B. Software
C. Data
D. People and Procedures
Correct Answer: D
Rationale: Competency: C724 Competency 1.1: Identify the five-component framework
of information systems.
Concept: The five-component model includes hardware, software, data, procedures, and
people. Training programs and operational procedures are the "people and procedures"
component that enables effective system use.
Distractor Analysis: Hardware (A) refers to physical devices. Software (B) is the code
and applications. Data (C) is the information processed. The training element
specifically addresses human capital and processes.
,Q2 (Select all that apply): Which of the following scenarios represent sustainable
competitive advantage through information systems? (Select all that apply.)
A. A logistics company develops proprietary routing algorithms that reduce delivery
costs by 23%
B. Purchasing the same SaaS CRM platform that competitors use
C. A retailer builds a supplier ecosystem with integrated blockchain traceability
D. Implementing office productivity software from a major vendor
E. A bank creates patented fraud detection AI models
Correct Answer: A, C, E
Rationale: Competency: C724 Competency 1.4: Evaluate how information systems
create sustainable competitive advantage.
Concept: Sustainable advantage requires unique, valuable, difficult-to-imitate resources
(proprietary tech, patents, exclusive partnerships).
Distractor Analysis: Off-the-shelf solutions (B, D) are available to all competitors and
create parity, not advantage. Proprietary systems, patented innovations, and unique
ecosystems (A, C, E) create barriers to imitation.
Q3: Which statement accurately distinguishes between Information Technology (IT) and
Information Systems (IS)?
A. IT includes the business processes; IS is limited to hardware and software
B. IT refers to hardware, software, and networking components; IS integrates IT with
people and procedures to achieve business goals
C. IT and IS are interchangeable terms in modern business contexts
D. IT focuses on data analysis; IS focuses on infrastructure management
Correct Answer: B
Rationale: Competency: C724 Competency 1.2: Differentiate between information
technology and information systems.
Concept: IT is the technical substrate (hardware, software, data components). IS is the
socio-technical system that includes IT PLUS people and procedures working toward
organizational objectives.
,Distractor Analysis: A reverses the definitions. C ignores critical distinctions taught in
WGU course materials. D misattributes functional areas.
Q4: Using Porter's Five Forces framework, which competitive force is being addressed
when a streaming service invests heavily in exclusive original content production?
A. Threat of new entrants
B. Bargaining power of substitutes
C. Bargaining power of buyers
D. Rivalry among existing competitors
Correct Answer: B
Rationale: Competency: C724 Competency 1.3: Apply Porter's Five Forces model to IT
strategy.
Concept: Exclusive content makes the service less substitutable with alternatives,
directly reducing the threat of substitutes. Original content creates differentiation that
customers cannot find elsewhere.
Distractor Analysis: While it may indirectly affect other forces, the primary strategic
intent is reducing substitutability. New entrants (A) relates to barriers to entry. Buyer
power (C) concerns customer price sensitivity. Rivalry (D) is about direct competition.
Q5: A manufacturing firm experiences a 15% efficiency gain after implementing IoT
sensors on production equipment. However, the maintenance team resists using the
new system because "the old clipboard method worked fine." Which critical success
factor for IS implementation is lacking?
A. Technical feasibility
B. Economic feasibility
C. Organizational feasibility
D. Schedule feasibility
Correct Answer: C
Rationale: Competency: C724 Competency 1.5: Analyze organizational change
management factors in IS adoption.
, Concept: Organizational feasibility assesses user readiness, change resistance, training
adequacy, and cultural alignment. Technical success without user adoption guarantees
failure.
Distractor Analysis: Technical feasibility (A) was proven by the 15% gain. Economic
feasibility (B) is positive. Schedule (D) is unrelated to user resistance.
SECTION 2: Computer Hardware, Software & Networking
Competency Focus: C724 Competencies 2.1-2.4: Evaluate hardware/software
components; Analyze network architectures; Assess infrastructure decisions
Q6: A fast-growing e-commerce startup needs server infrastructure that can
automatically scale from 1,000 to 100,000 concurrent users during holiday sales. Which
architecture best meets this requirement?
A. On-premises blade servers
B. Elastic cloud computing instances with load balancing
C. Mainframe computer system
D. Peer-to-peer network topology
Correct Answer: B
Rationale: Competency: C724 Competency 2.3: Evaluate cloud computing and
infrastructure-as-a-service solutions.
Concept: Elastic cloud infrastructure provides automatic, rapid scalability (horizontal
scaling) matched to demand fluctuations without overprovisioning capital expenses.
Distractor Analysis: On-premises (A) requires massive upfront CAPEX and cannot scale
rapidly. Mainframes (C) handle volume but lack elasticity for unpredictable spikes.
Peer-to-peer (D) is not a server architecture for e-commerce.
