DTS - Week 1 (MC & Case)

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Questions and Answers

What is a key distinction between digital transformation and digitalization?

Digital transformation involves creating new business models, whereas digitalization improves operations using digitized data. (correct)

Digitalization refers to the ethical implications of digitized data, while digital transformation relates to its scalability.

Digitalization focuses on algorithmic manipulation, while digital transformation emphasizes digitized data.

Digital transformation focuses on converting analog data, while digitalization focuses on user engagement.

In the context of digital business logic, which process is most associated with fostering external innovation?

Proprietary intellectual property (IP) development.

Open APIs and crowdsourcing initiatives. (correct)

Waterfall development models.

Hierarchical decision-making and control.

How does "connectivity-by-default" differ from "connectivity-on-demand"?

Connectivity-by-default relies on manual connections, while connectivity-on-demand is always automated.

Connectivity-by-default ensures continuous real-time connections, while connectivity-on-demand is event-triggered. (correct)

Connectivity-by-default focuses on internal systems, while connectivity-on-demand focuses on external networks.

Connectivity-by-default is data-driven, while connectivity-on-demand depends on hierarchical approval.

Which of the following represents a strategic use of aggregation in digital transformation?

Combining IoT sensor data and customer feedback for new insights. Signup and view all the answers

In digital business models, "value capture" is best demonstrated by:

Offering a subscription-based service that ensures consistent revenue. Signup and view all the answers

What is a primary KPI for measuring success in digital platforms?

Total audience engagement across services. Signup and view all the answers

What ethical risk is most associated with algorithmic decision-making?

Institutionalized bias through historical data. Signup and view all the answers

Which action would help a company successfully manage resistance to agile processes?

Highlight the long-term efficiency gains of agile workflows. Signup and view all the answers

In the transition from traditional to digital business logic, what happens to the organizational structure?

It evolves from hierarchical silos to integrated, flexible teams. Signup and view all the answers

Which factor would most differentiate a firm's digital platform from its competitors?

Exclusive features that leverage unique data insights. Signup and view all the answers

A logistics company, SwiftMove, integrates IoT sensors into its fleet of delivery trucks. These sensors track vehicle location, fuel usage, and maintenance needs in real time. Despite having this data, SwiftMove's managers are struggling to make decisions quickly due to the sheer volume of information. How can SwiftMove use the concept of connectivity to improve decision-making?

Implement predictive algorithms to process real-time sensor data. Signup and view all the answers

MediTrack, a health-tech firm, digitizes patient records to improve efficiency. However, the firm hasn't yet developed tools to analyze the records. Managers believe the data can offer valuable insights into patient outcomes. What is the next step for MediTrack to leverage representation in digital transformation?

Develop algorithms to extract and analyze insights from the records. Signup and view all the answers

ZentoCorp, a manufacturing firm, introduces agile workflows to improve its product development cycle. However, employees accustomed to the traditional stage-gate process feel overwhelmed and resist the change. What strategy should ZentoCorp adopt to address this resistance?

Show employees how agile workflows can improve their day-to-day tasks. Signup and view all the answers

FinMetrics, a financial services company, collects customer spending data and market trends. By analyzing these data sets separately, it has achieved moderate success. However, its competitors are offering personalized financial advice. How can FinMetrics use aggregation to gain a competitive edge?

Combine spending data and market trends to offer personalized insights. Signup and view all the answers

EcoDrive, an electric vehicle startup, competes with established brands by offering a digital platform that tracks vehicle performance. While its competitors focus on general vehicle data, EcoDrive wants to differentiate its platform. Which strategy would most effectively set EcoDrive's platform apart?

Develop features that integrate data from third-party devices, like home energy systems. Signup and view all the answers

Study Notes

Digital Transformation vs Digitalization

Digitalization focuses on algorithmic manipulation of data
Digital Transformation emphasizes digitized data and creating new business models.

Digital Business Logic and Innovation

Open APIs and crowdsourcing encourage external innovation
Proprietary intellectual property (IP) development is associated with internal innovation.
Waterfall development models are not associated with fostering external innovation.

Connectivity Types

Connectivity-by-default ensures continuous real-time internal connections
Connectivity-on-demand is event-triggered and focused on external networks.
Connectivity-by-default is data-driven while connectivity-on-demand depends on hierarchical approval.

Aggregation in Digital Transformation

Combining IoT sensor data and customer feedback provides valuable insights.

Value Capture in Digital Business Models

Offering a subscription-based service to ensure consistent revenue.
Combining data streams for improved algorithmic performance.

Key Performance Indicators (KPIs) for Digital Platforms

Customer satisfaction score for individual products.

Ethical Risks in Algorithmic Decision-Making

Institutionalized bias through historical data is a major concern.

Managing Resistance to Agile Processes

Highlighting the long-term efficiency gains of agile workflows.
Involving team members in early decision-making stages is crucial.

Organizational Structure in Digital Business Logic

Shifting from centralized platforms to dedicated product lines is common.
Transitioning from siloed teams to integrated, flexible teams increases effectiveness.

Differentiating Digital Platforms

Exclusive features that leverage unique data insights, such as those provided by a greater product catalog with minimal integration.

Improving Decision-Making in Logistics

Implementing predictive algorithms to analyze real-time sensor data enhances decision-making speed.

Digitizing Patient Records

Developing algorithms to extract and analyze insights to improve efficiency and outcomes.

Agile Workflows in Manufacturing

Demonstrating the benefits of agile workflows to employees helps mitigate resistance to change.

Personalized Financial Advice

Combining data streams and market trends to offer personalized insights differentiates FinMetrics.

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Description

Explore the distinctions between digitalization and digital transformation, focusing on how each impacts business models and innovation. This quiz covers concepts like connectivity types, aggregation, and value capture in digital business strategies.