Chapter 1: Digital Transformation Disrupts Companies, Competition, and
Careers Locally and Globally
Multiple Choice
1. In the early stages of a startup like Uber, valuation is based heavily on the company‘s
.
a. technology
b. present value
c. growth potential
d. assets
Answer: C
Difficulty: Medium
Section Reference: Opening Case
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
2. is an easy-to-read, often single-page, real-time user interface, showing a graphical
presentation of the current status and historical trends of an organization‘s key performance
indicators to enable instantaneous and informed decisions to be made.
a. Predictions
b. Dashboards
c. Digital models
1
, d. Real-time reports
Answer: B
Difficulty: Easy
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Technology
2
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
Web retailers, and government agencies is how to design their digital business models in
order to do all of the following, except:
a. Deliver an incredible customer experience
b. Improve profitability
c. Implement cloud computing
d. Increase market share
Answer: C
Difficulty: Medium
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Analytic skills
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
, which in turn increases revenue.
a. mobile apps and business transactions
b. IoT capabilities and KPIs
c. business model and marketing efforts
d. customer experience and loyalty
Answer: D
Difficulty: Hard
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
5. Market conditions and technological innovations that are propelling the explosion of on-
demand and shared services include all the following except:
a. smartphone-connected consumers
b. private data centers
c. simple and secure purchasing flows
d. location-based services
Answer: B
Difficulty: Medium
Section Reference: Doing Business in the On-Demand and Sharing Economy
3
, Learning BObjective: B Define Bthe Bdifferences Bbetween Bthe Bon-demand Band Bsharing Beconomies Band
Bthe Bsix Bbusiness Bobjectives BIT Bshould Bfocus Bon Bto Benhance Borganizational Bperformance, Bgrowth,
Band Bsustainability.
AACSB: BTechnology
6. is Ba Bcompany‘s Bcore Bstrategy Bfor Bmaking Ba Bprofit. BIt Bdefines Bthe Bproducts
Band/or Bservices Bit Bwill Bsell, Bits Btarget Bmarket, Bcosts Bassociated Bwith Bdoing
Bbusiness, Band Bthe Bcompany‘s Bongoing Bplans Bfor Bachieving Bits Bgoals.
a. Business Bmodel
b. Website
c. Data Banalytics
d. Technology Bstack
Answer: BA
BDifficulty:
BEasy
Section BReference: B Disruptive BDigital BBusiness BModels
Learning BObjective: BDefine Bthe Bdifferences Bbetween Bthe Bon-demand Band Bsharing Beconomies
Band Bthe Bsix Bbusiness Bobjectives BIT Bshould Bfocus Bon Bto Benhance Borganizational Bperformance,
Bgrowth, Band Bsustainability.
AACSB: BTechnology
7. Machine-to-machine B(M2M) Btechnology Benables Bsensor-embedded Bproducts Bto Bshare
Breliable Breal-time Bdata B .
a. over Bshort Bdistances
b. via Bradio Bsignals
c. using Bcloud Bservices
d. via Bdatabases
Answer: BB
BDifficulty:
BHard
Section BReference: B Technology BMega BTrends
Learning BObjective: BDescribe Bhow BIT Bis Bdisrupting Bthe Bway Bthat Bcompanies Boperate, Bthe
BIT Bmegatrends Bthat Bare Bdriving Borganizational Bperformance, Bgrowth, Band Bsustainability
Band Bhow BCOVID-19 Bis Baccelerating Bdigital Btransformation.
AACSB: BReflective Bthinking Bskills
8. An Bestimated B % Bof Bbig Bdata Bare Bunstructured.
a. 25 Bto B30
b. 33 Bto B66
4
Careers Locally and Globally
Multiple Choice
1. In the early stages of a startup like Uber, valuation is based heavily on the company‘s
.
a. technology
b. present value
c. growth potential
d. assets
Answer: C
Difficulty: Medium
Section Reference: Opening Case
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
2. is an easy-to-read, often single-page, real-time user interface, showing a graphical
presentation of the current status and historical trends of an organization‘s key performance
indicators to enable instantaneous and informed decisions to be made.
a. Predictions
b. Dashboards
c. Digital models
1
, d. Real-time reports
Answer: B
Difficulty: Easy
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Technology
2
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
Web retailers, and government agencies is how to design their digital business models in
order to do all of the following, except:
a. Deliver an incredible customer experience
b. Improve profitability
c. Implement cloud computing
d. Increase market share
Answer: C
Difficulty: Medium
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Analytic skills
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
, which in turn increases revenue.
a. mobile apps and business transactions
b. IoT capabilities and KPIs
c. business model and marketing efforts
d. customer experience and loyalty
Answer: D
Difficulty: Hard
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
5. Market conditions and technological innovations that are propelling the explosion of on-
demand and shared services include all the following except:
a. smartphone-connected consumers
b. private data centers
c. simple and secure purchasing flows
d. location-based services
Answer: B
Difficulty: Medium
Section Reference: Doing Business in the On-Demand and Sharing Economy
3
, Learning BObjective: B Define Bthe Bdifferences Bbetween Bthe Bon-demand Band Bsharing Beconomies Band
Bthe Bsix Bbusiness Bobjectives BIT Bshould Bfocus Bon Bto Benhance Borganizational Bperformance, Bgrowth,
Band Bsustainability.
AACSB: BTechnology
6. is Ba Bcompany‘s Bcore Bstrategy Bfor Bmaking Ba Bprofit. BIt Bdefines Bthe Bproducts
Band/or Bservices Bit Bwill Bsell, Bits Btarget Bmarket, Bcosts Bassociated Bwith Bdoing
Bbusiness, Band Bthe Bcompany‘s Bongoing Bplans Bfor Bachieving Bits Bgoals.
a. Business Bmodel
b. Website
c. Data Banalytics
d. Technology Bstack
Answer: BA
BDifficulty:
BEasy
Section BReference: B Disruptive BDigital BBusiness BModels
Learning BObjective: BDefine Bthe Bdifferences Bbetween Bthe Bon-demand Band Bsharing Beconomies
Band Bthe Bsix Bbusiness Bobjectives BIT Bshould Bfocus Bon Bto Benhance Borganizational Bperformance,
Bgrowth, Band Bsustainability.
AACSB: BTechnology
7. Machine-to-machine B(M2M) Btechnology Benables Bsensor-embedded Bproducts Bto Bshare
Breliable Breal-time Bdata B .
a. over Bshort Bdistances
b. via Bradio Bsignals
c. using Bcloud Bservices
d. via Bdatabases
Answer: BB
BDifficulty:
BHard
Section BReference: B Technology BMega BTrends
Learning BObjective: BDescribe Bhow BIT Bis Bdisrupting Bthe Bway Bthat Bcompanies Boperate, Bthe
BIT Bmegatrends Bthat Bare Bdriving Borganizational Bperformance, Bgrowth, Band Bsustainability
Band Bhow BCOVID-19 Bis Baccelerating Bdigital Btransformation.
AACSB: BReflective Bthinking Bskills
8. An Bestimated B % Bof Bbig Bdata Bare Bunstructured.
a. 25 Bto B30
b. 33 Bto B66
4
