Chapter 1: Digital Transformation Disrupts Companies, Competition, and Careers
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LocallyandGlobally
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Multiple Choice mi
1. In the early stages of a startup like Uber, valuation is based heavily on the company’s
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.
a. technology
b. present value mi
c. growth potential mi
d. assets
Answer: C mi
Difficulty:Medium
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SectionReference: Opening Case
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Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
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AACSB: Technology mi
2. is an easy-to-read, often single-page,real-time user interface, showing a graphical
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presentation of the current status and historical trends of an organization’s key performance
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indicators to enable instantaneous and informed decisions to be made.
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a. Predictions
b. Dashboards
c. Digital models mi
d. Real-timereports mi
Answer: B mi
Difficulty:Easy
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Section Reference: Technology Mega Trends
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Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
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megatrends that are drivingorganizational performance, growth, and sustainability and how
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COVID-19 is accelerating digital transformation.
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AACSB: Technology mi
1
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
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Web retailers, and government agencies is how to design their digital business models in
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order to do all of the following, except:
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a. Deliver an incredible customer experience mi mi mi mi
b. Improve profitability mi
c. Implement cloud computing mi mi
d. Increase market share mi mi
Answer: C mi
Difficulty:Medium
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Section Reference: Disruptive Digital Business Models
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Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
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AACSB: Analytic skills mi mi
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
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, which in turn increases revenue. mi mi mi mi mi
a. mobile apps and business transactions mi mi mi mi
b. IoT capabilities and KPIs
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c. business model and marketing efforts mi mi mi mi
d. customer experience and loyalty mi mi mi
Answer: D mi
Difficulty:Hard
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Section Reference: Disruptive Digital Business Models
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Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
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AACSB: Technology mi
5. Market conditions and technological innovations that are propelling theexplosion of on-
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demand and shared services include all the following except:
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a. smartphone-connectedconsumers i
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b. private data centers mi mi
c. simple and secure purchasing flows mi mi mi mi
d. location-basedservices mi
Answer: B mi
Difficulty:Medium
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Section Reference: Doing Business in the On-Demand and Sharing Economy
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,Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
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AACSB: Technology mi
6. is a company’s core strategy for making a profit. It defines the products and/or
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services it will sell, its target market, costs associated with doing business, and the
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company’s ongoing plans for achieving its goals.
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a. Business model mi
b. Website
c. Data analytics mi
d. Technologystack m
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Answer: A mi
Difficulty:Easy
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Section Reference: Disruptive Digital Business Models
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Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
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AACSB: Technology mi
7. Machine-to-machine (M2M) technology enablessensor-embeddedproducts to sharereliable mi mi mi mi mi mi mi mi
real-time data
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a. over short distances mi mi
b. via radio signalsmi mi
c. using cloud services mi mi
d. via databases mi
Answer: B mi
Difficulty:Hard
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Section Reference: Technology Mega Trends
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Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
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megatrends that are drivingorganizational performance, growth, and sustainability and how
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COVID-19 is accelerating digital transformation.
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AACSB: Reflective thinking skills
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8. An estimated
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a. 25 to 30 mi mi
b. 33 to 66 mi mi
c. 50 to 75 mi mi
d. 80 to 90 mi mi
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, Answer: D mi
Difficulty:Medium
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Section Reference: Technology Mega Trends
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Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
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megatrends that are drivingorganizational performance, growth, and sustainability and how
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COVID-19 is accelerating digital transformation.
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AACSB: Reflective thinking skills
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9. All of the following are examples of the influence of social, mobile, analytics, and cloud
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technologies except
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a. Connections and feedback via social networks havechanged the balance of mi mi mi mi mi mi mi mi mi mi
influence. mi
b. Customers expect touse location-aware services,apps, alerts, socialnetworks, and mi mi mi mi mi mi mi mi mi mi
the latest digital capabilities at work and outside work.
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c. Customer loyalty and revenue growth depend on a business’ ability to offer mi mi mi mi mi mi mi mi mi mi mi
unique customer experiences that wow customers morethan competitors can.
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d. Consumers are less likely to trust tweets from ordinary people than mi mi mi mi mi mi mi mi mi mi
recommendations made by celebrity endorsements.
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Answer: D mi
Difficulty:Hard
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SectionReference: Social–Mobile–Analytics–Cloud(SMAC) Model
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Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
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megatrends that are drivingorganizational performance, growth, and sustainability and how
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COVID-19 is accelerating digital transformation.
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AACSB: Reflective thinking skills
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10. Which of the following guide the process of planning, acquiring, building, modifying, and
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interfacing with deployed IT resources in a single department within an organization?
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a. Legacy systems mi
b. IT architectures mi
c. Data analytics mi
d. Technologystack m
i
Answer: B mi
Difficulty:Hard
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Section Reference: Introduction
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Learning Objective: Define the differences between the on-demand and sharing economies and the six
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business objectives IT should focus on to enhance organizational performance, growth, and
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sustainability.
mi
AACSB: Technology mi
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