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