DTS - Week 1 (MC)

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Questions and Answers

What is the primary purpose of digitization?

To automate customer interactions.

To enable algorithmic decision-making.

To create new digital platforms.

To convert information into digital formats. (correct)

Which of the following is NOT required for digital transformation?

Digitized data. (correct)

Integration of digitized and digitalized systems.

A digital platform.

Agile development processes.

What distinguishes digital transformation from digitalization?

Digital transformation involves creating new business models, while digitalization focuses on enhancing operations. (correct)

Digital transformation and digitalization are interchangeable.

Digitalization focuses on creating new applications, while digital transformation focuses on converting information.

Digitalization is a prerequisite for digital transformation.

What are the three components of a business model?

Value Creation, Value Capture, Value Delivery Signup and view all the answers

Which of the following best describes an operating model's focus on scale?

Handling higher volume and complexity of operations. Signup and view all the answers

What is a primary goal of value capture in a business model?

To ensure profitability and competitive advantage. Signup and view all the answers

Which driver focuses on broadening the range of products or services?

Scope Signup and view all the answers

What does learning as part of an operating model emphasize?

Continuous improvement through data and R&D. Signup and view all the answers

Which KPI is unique to digital business logic?

Total audience engagement. Signup and view all the answers

What is a characteristic of traditional business logic?

Siloed product lines with dedicated teams. Signup and view all the answers

What is a hallmark of digital business processes?

Agile and iterative processes. Signup and view all the answers

Which organizational structure aligns with digital business logic?

Functional structure with flexible, ad hoc teams. Signup and view all the answers

What does representation in digital transformation refer to?

Algorithmic manipulation of digitized data. Signup and view all the answers

Which of the following describes connectivity-by-default?

Devices and systems are always connected in real time. Signup and view all the answers

What is an example of aggregation in digital transformation?

Combining health, location, and lifestyle data for personalized insights. Signup and view all the answers

What is a key challenge associated with aggregation?

Managing privacy and data control. Signup and view all the answers

What is a potential ethical concern in algorithmic decision-making?

Institutionalized discrimination. Signup and view all the answers

Which strategic implication does digital transformation challenge?

Industry boundaries. Signup and view all the answers

What does algorithmic management rely on?

Automating decision-making and processes. Signup and view all the answers

Which framework concept integrates representation, connectivity, and aggregation?

The interaction model. Signup and view all the answers

What does total audience engagement measure?

The level of interaction across the ecosystem. Signup and view all the answers

What makes a super-scalable business model possible?

Error-free, costless replication. Signup and view all the answers

Which of these is an example of scope expansion?

A retailer offering financial services. Signup and view all the answers

What distinguishes digital transformation's qualitative shift?

Enabling entirely new ways of creating value. Signup and view all the answers

Why is data fungibility important?

It enables reuse across different contexts. Signup and view all the answers

What is the role of open APIs in digital business processes?

To foster innovation through collaboration. Signup and view all the answers

How does learning contribute to algorithmic management?

By enabling continuous improvement through feedback. Signup and view all the answers

How does digital transformation impact firm scope?

It enables cross-industry competition and diversification. Signup and view all the answers

Which of these firms exemplifies platform enablement in digital logic?

Uber's app connecting drivers and riders. Signup and view all the answers

Why is connectivity crucial in a digital economy?

It facilitates real-time data sharing and interaction. Signup and view all the answers

Study Notes

Digital Transformation Basics

Digitization's Purpose: Converting information into digital formats.
Digital Transformation vs. Digitalization: Digital transformation creates new business models, while digitalization enhances existing operations. Digitalization is a prerequisite for digital transformation.
Business Model Components: Value Creation, Value Capture, Value Delivery.
Operating Model Focus on Scale: Handling higher volume and complexity of operations.
Value Capture Goal: Ensuring profitability and competitive advantage.
Scope Driver: Broadening the range of products or services.
Learning in Operating Models: Continuous improvement via data and research and development.

Traditional vs. Digital Business Logic

Unique Digital KPI: Total audience engagement.
Traditional Business Logic Characteristic: Siloed product lines with dedicated teams.
Digital Business Process Hallmark: Agile and iterative processes.
Digital Business Logic Organizational Structure: Functional structure with flexible, ad hoc teams.

Representation, Connectivity, Aggregation

Representation in Digital Transformation: Algorithmic manipulation of digitized data.
Connectivity-by-Default: Devices and systems are always connected in real time.

Ethical and Strategic Implications

Algorithmic Decision-Making Concern: Institutionalized discrimination.
Digital Transformation Challenge: Industry boundaries.
Algorithmic Management Reliance: Automating decision-making and processes.

Framework Concept

Framework Concept Integrating Elements: The interaction model integrates representation, connectivity, and aggregation.

Examples and Applications

Total Audience Engagement Measurement: The number of unique users on a platform.

Super-Scalable Business Model

Enabler of Super-Scalable Model: Error-free, costless replication.

Advanced Concepts

Digital Transformation's Qualitative Shift: Enabling entirely new ways of creating value.
Data Fungibility Importance: Enabling reuse across different contexts.
Role of Open APIs: Fostering innovation through collaboration.

Industry Applications

Impact of Digital Transformation on Firm Scope: Enabling cross-industry competition and diversification.

Platform Enablement in Digital Logic

Platform Enablement Example: Uber's app connecting drivers and riders.
Connectivity's Importance in Digital Economy: Facilitates real-time data sharing and interaction.

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Description

Test your knowledge on the fundamentals of digital transformation and its comparison with traditional business logic. This quiz covers key concepts such as digitization, operating models, and unique KPIs for digital businesses.