ISOM EXAM QUESTIONS & ANSWERS
Design capacity - Answer -maximum amount of output that a process is designed to
make in some period of time.
Effective capacity - Answer -expected amount of work that a process can do in some
period of time.
Utilized capacity - Answer -actual amount of work that a process does in some period
of time
operational competitive priorities - Answer -what we need our processes to be good at
What does the business model canvas explain? - Answer -Who the customers are,
What they value,
The economic logic of the firm and,
How the firm delivers value to customers.
Value propositions - Answer -statements of the benefits that a customer will get for
buying your product or service. Said differently, what is the problem that your customer
is trying to solve.
Customer relationships types - Answer -include transactional, long-term relationship,
personal assistance, self-service, and automated services.
Channels - Answer -how a business gets access to their customers.
Direct channels include - Answer -personal selling, internet, mail or email.
Indirect channels include - Answer -retail, agents, and brokers.
Six sigma - Answer -when design capacity> Effective Capacity
Theory of Constraints - Answer -Bottleneck
Segments - Answer -define the groups of customers that we hope to attract.
Why is the value proposition included on both halves? - Answer -because the value
propositions that an organization sells to its customers drive how the organization
makes resource allocation decisions about the activities that it undertakes and the
partnerships it needs.
Three types operating models archetypes - Answer -Process-oriented, technology-
oriented, and data/analytics-oriented operating models
, What does McKinsey say? - Answer -in order to understand these next-generation
operating models, you have to be able to navigate processes (that's lean and business
process outsourcing), technology (digitization and intelligent process automation) and
data/analytics (advanced analytics, in the McKinsey picture).
Consumer Surplus - Answer -WTP-Price
Value Created - Answer -WTP-TC
Value Delivered - Answer -TC-IC
Value Captured - Answer -Price- TC
Where in the BMC is WTP? - Answer -Right
Where in the BMC is Price? - Answer -Revenue Streams
Where in the BMC is TC? - Answer -Cost Structure
Where in the BMC is IC? - Answer -Left, without Value
lean - Answer -minimizes what is needed but does not bring value and eliminates what
is not needed.
Simple - Answer -easily knowable
Complicated - Answer -not simple, but knowable
Complex - Answer -not fully knowable but reasonably predictable
Chaos - Answer -neither knowable nor predictable
The difference between predictable and complex systems - Answer -We can
understand simple and complicated systems by taking them apart and analyzing the
details. However, we cannot understand complex systems by applying the same
strategy of reductionism. But we can achieve some understanding by watching and
studying how the whole system operates.
Complex systems are_______________ - Answer -not constructed, they are grown.
simple (3) - Answer -sense categorize respond
complex (3) - Answer -probe sense respond
complicated (3) - Answer -sense analyse respond
Design capacity - Answer -maximum amount of output that a process is designed to
make in some period of time.
Effective capacity - Answer -expected amount of work that a process can do in some
period of time.
Utilized capacity - Answer -actual amount of work that a process does in some period
of time
operational competitive priorities - Answer -what we need our processes to be good at
What does the business model canvas explain? - Answer -Who the customers are,
What they value,
The economic logic of the firm and,
How the firm delivers value to customers.
Value propositions - Answer -statements of the benefits that a customer will get for
buying your product or service. Said differently, what is the problem that your customer
is trying to solve.
Customer relationships types - Answer -include transactional, long-term relationship,
personal assistance, self-service, and automated services.
Channels - Answer -how a business gets access to their customers.
Direct channels include - Answer -personal selling, internet, mail or email.
Indirect channels include - Answer -retail, agents, and brokers.
Six sigma - Answer -when design capacity> Effective Capacity
Theory of Constraints - Answer -Bottleneck
Segments - Answer -define the groups of customers that we hope to attract.
Why is the value proposition included on both halves? - Answer -because the value
propositions that an organization sells to its customers drive how the organization
makes resource allocation decisions about the activities that it undertakes and the
partnerships it needs.
Three types operating models archetypes - Answer -Process-oriented, technology-
oriented, and data/analytics-oriented operating models
, What does McKinsey say? - Answer -in order to understand these next-generation
operating models, you have to be able to navigate processes (that's lean and business
process outsourcing), technology (digitization and intelligent process automation) and
data/analytics (advanced analytics, in the McKinsey picture).
Consumer Surplus - Answer -WTP-Price
Value Created - Answer -WTP-TC
Value Delivered - Answer -TC-IC
Value Captured - Answer -Price- TC
Where in the BMC is WTP? - Answer -Right
Where in the BMC is Price? - Answer -Revenue Streams
Where in the BMC is TC? - Answer -Cost Structure
Where in the BMC is IC? - Answer -Left, without Value
lean - Answer -minimizes what is needed but does not bring value and eliminates what
is not needed.
Simple - Answer -easily knowable
Complicated - Answer -not simple, but knowable
Complex - Answer -not fully knowable but reasonably predictable
Chaos - Answer -neither knowable nor predictable
The difference between predictable and complex systems - Answer -We can
understand simple and complicated systems by taking them apart and analyzing the
details. However, we cannot understand complex systems by applying the same
strategy of reductionism. But we can achieve some understanding by watching and
studying how the whole system operates.
Complex systems are_______________ - Answer -not constructed, they are grown.
simple (3) - Answer -sense categorize respond
complex (3) - Answer -probe sense respond
complicated (3) - Answer -sense analyse respond
