Information Systems and Digital Transformation Quiz

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Questions and Answers

What is the primary focus of Supplier Relationship Management (SRM)?

Overseeing internal production and distribution

Sourcing, purchasing, and warehousing of goods and services (correct)

Managing marketing and sales processes

Controlling the flow of materials, information, and customers

Which of the following is NOT a core element of an enterprise system?

Enterprise Resource Planning (ERP)

Human Resource Management (HRM) (correct)

Customer Relationship Management (CRM)

Supply Chain Management (SCM)

How does the social context of an Information System (IS) influence its design and implementation?

It reflects the values and beliefs of the organization, shaping the system's functionalities. (correct)

It determines the technical specifications of the IS.

It influences the programming languages used in the IS development.

It has no significant influence on the IS development process.

Which of the following is a common purpose for implementing an Information System (IS)?

Providing a solution to a business problem. (A) Signup and view all the answers

What is the relationship between Enterprise Systems (ES) and separate functional applications?

ESs are designed to integrate and streamline functions previously performed by separate applications. (C) Signup and view all the answers

How does the commitment to change affect the success of IS implementation?

It promotes collaboration and facilitates a smoother transition process. (D) Signup and view all the answers

What is the main factor that determines the IS value?

The level of user adoption and integration with business processes. (A) Signup and view all the answers

Digital Transformation (DT) is characterized by which of the following?

Episodic occurrences (A), Dramatic results (C) Signup and view all the answers

Which of the following are emerging technologies for DT?

All of the above (D) Signup and view all the answers

Digital Transformation creates value by:

Optimizing business operations and improving customer experiences. (C) Signup and view all the answers

What are the three key transformational opportunities that information technology offers, according to Berman (2012)?

Creating new business models, improving operational processes, and enhancing customer experiences (D) Signup and view all the answers

What does a business model define?

The products/services a company will sell, its target market, the cost associated with doing business, and the company’s ongoing plan for achieving its goals. (C) Signup and view all the answers

How do strategic and tactical questions contribute to an organization’s profitability and management performance?

By determining the appropriate implementation of IT, enabling the organization to leverage mundane to complex IT for its benefit. (C) Signup and view all the answers

What is the primary distinction between incremental and radical improvements in the context of digital transformation?

Incremental improvements involve gradual changes, while radical improvements involve significant and disruptive shifts. (D) Signup and view all the answers

Which of the following is NOT a key strategic or tactical question that can help determine an organization’s profitability and management performance?

What are the company’s core competencies? (C) Signup and view all the answers

What is the main objective of digital transformation in businesses?

To improve business processes and create new revenue streams (A) Signup and view all the answers

How do companies like Uber and Airbnb utilize digital technology?

To create new business models and revolutionize interactions (B) Signup and view all the answers

Which term refers to the technical process of converting analog signals into a digital format?

Digitization (C) Signup and view all the answers

What percentage of business leaders prioritize digital transformation?

87% (B) Signup and view all the answers

What defines digitalization in a business context?

Using digital technologies to enhance business processes (A) Signup and view all the answers

According to Peter Hinssen, how has technology changed in the context of business?

It is now disruptive and alters business models (D) Signup and view all the answers

What is the role of managing information and knowledge in an organization?

To serve as a key organizational asset (B) Signup and view all the answers

What impact does digital technology have on businesses according to the content?

It fundamentally alters business interactions and competition (D) Signup and view all the answers

What does Business Process Reengineering (BPR) primarily aim to eliminate?

Unnecessary, non-value-added processes (B) Signup and view all the answers

Which of the following is NOT a goal of Business Process Reengineering?

Increasing labor costs (A) Signup and view all the answers

What does IT infrastructure encompass?

An organization's physical IT devices and related equipment (A) Signup and view all the answers

Which of the following describes a key aspect of an informal process?

It may not have clearly identified inputs (A) Signup and view all the answers

Which statement is true regarding the application of IT in business processes?

IT can enhance processes if they are first evaluated for necessity (C) Signup and view all the answers

How can technology enhance processes according to the goals of BPR?

By automating existing manual processes (B) Signup and view all the answers

What is the primary focus of IT architecture within an organization?

Planning and deploying IT resources in a single department (A) Signup and view all the answers

In what way can BPR impact the traditional selling process?

By making it more customer-centric (B) Signup and view all the answers

What is the primary purpose of enterprise architecture (EA)?

To enhance the efficiency and alignment of IT systems with business strategies. (C) Signup and view all the answers

What key performance indicators (KPIs) are used for measuring EA success?

Capabilities, operational performance, project performance, and financial performance. (B) Signup and view all the answers

Which challenge does enterprise architecture address regarding IT systems?

Reducing the complexity and maintenance costs of IT systems. (D) Signup and view all the answers

How does enterprise architecture benefit an organization?

It keeps IT costs low while enhancing productivity and flexibility. (D) Signup and view all the answers

What is the role of enterprise systems within the framework of enterprise architecture?

To connect functional areas using internet technology for better integration. (A) Signup and view all the answers

Which aspect of business does enterprise architecture aim to improve alignment with?

The increasing demands of market fluctuations. (D) Signup and view all the answers

What guides the development of an enterprise architecture?

The direction and needs of the departments within the organization. (B) Signup and view all the answers

What critical solution does enterprise architecture provide for organizations?

Clarity on the organization's future direction and the path to achieve it. (B) Signup and view all the answers

What defines a disruptive digital business model?

A model that creates new markets or alters existing industries using digital technologies. (C) Signup and view all the answers

Which of the following best describes the subscription business model?

Charging customers for access to a product/service for a specified period. (B) Signup and view all the answers

In a freemium business model, what does 'free' typically refer to?

Basic version of a product that can be upgraded to paid features. (B) Signup and view all the answers

Which example best illustrates the on-demand business model?

Ridesharing services like Uber and Bolt allowing immediate access to transport. (B) Signup and view all the answers

What characterizes the sharing economy?

Services shared for free or a fee, typically through digital platforms. (A) Signup and view all the answers

What is a formal business process?

A detailed and documented procedure to perform tasks. (C) Signup and view all the answers

How does digital transformation impact business models?

It drives changes that enhance customer delivery and access to services. (D) Signup and view all the answers

In the context of digital business models, what does 'Customer is the product' imply?

Customer data and attention are the main value drivers for certain companies. (B) Signup and view all the answers

Study Notes

ICT in Business ISD 155

The course is taught by Prof. Kwame Owusu Kwateng and Dr. Evans Amoah
The course is offered by the Department of Supply Chain and Information Systems
The course is offered at the KNUST School of Business, KNUST - Kumasi

Digital Transformation and Enterprise IT Architecture

Digital transformation is a fundamental change process, enabled by digital technologies and driven by the strategic leverage of key resources and capabilities.
This process aims to radically improve an entity (organization, business network, industry, or society) and redefine its value proposition for its stakeholders.
This process includes digital transformation, digitization and digitalization.
Digitalization is the use of digital technologies and data to improve business, create new business models and create a digital environment for business operations.
Digitization is the technical process of converting analog signals into a digital form.
Digitization improves efficiency by making information easier to store, search, and find.
Many forward-thinking managers and entrepreneurs are transforming their existing business models.
Business leaders have prioritised digital transformation as a company priority.
Companies like Uber, Airbnb, Shyp, and TaskRabbit are revolutionizing industries using IT to create new business models.

Business Perspective

Key issues in this lecture involve the powerful impact digital technology has on businesses.
Examined how leading companies deploy digital technology to change their business, processes, customer experiences, as well as manage information and knowledge.
Also covered the architecture of information systems (IS).

Digital Transformation (1/4)

Many forward-looking managers and entrepreneurs are using digital technology to transform business models and reinvent businesses.
87% of business leaders prioritize digital transformation, and 79% of corporate strategists are reinventing business models to create new revenue streams.
Companies like Uber, Airbnb and others are using IT to revolutionize business-customer interactions.
Digital transformation has gone from making tasks more efficient to being disruptive, dramatically changing businesses, consumer markets, and organizations.

Digital Transformation (2/4)

Digitization, digitalization and digital transformation are distinct, but related concepts.
Digitization changes analog signals into digital form.
Digitalization uses digital technologies to create new revenue opportunities and improve business processes.
Digitalization also involves automating tasks and processes for better outcomes and to enhance value.
Digital transformation includes incremental improvements to existing processes.

Digital Transformation (3/4)

Digital transformation is a fundamental change process enabled by digital technologies accompanied by the strategic leverage of key resources.
Its aim is to radically improve an organization and to redefine its value proposition for its stakeholders.
This involves the innovative use of advanced digital technologies to radically improve an organization.
This is accomplished by creating value for stakeholders using radical improvements.

Digital Transformation (4/4)

Relevant emerging technologies include social media, the Internet of Things, cloud technologies, big data analytics, artificial intelligence, and blockchains.
Digital transformation changes how businesses operate and provides stakeholders with new experiences.
Information technology enables businesses to create new business models, improve operational processes, and enhance customer experiences.

Key strategic and tactical questions

Key strategic and tactical questions determine organizational profitability and management performance.
Answers for these questions require understanding mundane to complex IT capabilities and effective management strategies.
These questions should cover business direction, market targeting, customer needs and business processes, profit generation and efficiency improvements.

Disruptive Digital Business Models

Business models define products, services, markets, business costs to achieve company goals, and core strategy to make profit.
Digital business models explain how businesses make money using digital technologies.
Disruptive digital business models use digital technologies to change traditional industries.
Digital transformation drives radical changes in existing business models to focus on delivering services exactly as needed by customers.

Examples of Disruptive Digital Business Models

Subscription models like Netflix and Apple Music offer products/ services for a specific period of time.
Freemium models offer a trial or basic free version of a product, allowing customers to upgrade. LinkedIn and Dropbox are examples
Free models offer products or services in exchange for user data or engagement. Google, and Facebook are examples
On-demand models provide products or services immediately as requested by the customer. Examples include ridesharing services like Bolt, Uber, and Glovo.
Sharing economy models enable privately owned goods or services to be shared or offered through an online platform. Examples include Airbnb, Bolt and Uber

What is a Business Process?

Business processes coordinate organizational tasks across functions to achieve goals and tasks.
Processes consist of inputs which are raw materials, data, knowledge and expertise, transforming activities that change inputs and deliver outputs like products, services, and actions.
Formal processes have documented steps like bank loan approvals, and are also known as standard operating procedures.
Informal processes are undocumented, with input that may not yet be identified. They are often knowledge-intensive.

Business Process Reengineering (BPR)

BPR radically redesigns core business processes to drastically improve productivity, cycle times and quality.
BPR is about improving cycle times – the time it takes to complete a task.
BPR proposes that simply introducing technology to manual or outdated processes does not automatically improve them. It is necessary to examine and modify them.
Eliminating unnecessary processes and improving, simplifying, and automating remaining processes reduces costs, cycle time, and labor.

BPR Goals

BPR aims to streamline processes by eliminating unnecessary steps, and automating simple processes.
This can enhance processes by automating existing manual processes, expanding data flows to multiple functions, and creating innovative business models.
An example of improved processes is a customer scanning a product image and directly purchasing it from a site like Amazon.com, bypassing traditional sales channels.

Eight Phases of Business Process Reengineering

Developing vision and objectives for a new process.
Understanding existing processes, and identifying process areas for redesign.
Identifying change levers to be used
Implementing new processes.
Evaluation and refinement of the new processes.
Setting processes to the correct operational level,
Performing continuous improvement on new processes.

Comparing IT infrastructure, IT architecture, and Enterprise Architecture

IT infrastructure encompasses physical computing devices owned and used by an organization.
IT architecture plans and outlines how IT resources within a specific department, will be planned, acquired and deployed.
Enterprise architecture plans the structure and functionality of an organizational strategy, information, processes, and IT assets.
Enterprise architecture strategically guides change in an organization, just as architectural plans guide construction projects.

IT Infrastructure

Inventory of physical computing devices owned and used by an organization.
Includes various hardware and software components, networks, and data centers, along with any associated facilities.
Does not include people or process components associated with an IS.

IT Architecture

Guides the planning, acquisition, building, modifying and interfacing of IT resources in a particular department.
Offers ways of identifying how various technologies working together can satisfy user needs.
A blueprint that sets guidelines for acquiring and deploying new technology.
Developed based on department direction and business requirements.

Enterprise Architecture (EA)

Conceptual plan, which defines the structure and operation, of an organization's strategy, information, processes, and IT assets.
Guides organizational change and improvements.
Solves issues where an organization is progressing, and how to get better at it.

Measuring EA Success: KPIs

Success of Enterprise Architecture (EA) is measured using Key Performance Indicators (KPIs).
KPIs are quantifiable measures used to evaluate important aspects of an organization.
KPIs reduce the complexity of EA performance to manageable number for evaluation purposes.

Strategic Focus of EA

EA strategically addresses IT system complexity.
EA also addresses aligning IT systems with business needs.
IT Systems' complexity involves difficulties in managing complex and expensive systems.
Poor business alignment issues occur when IT systems are not aligned with business needs.
Business and IT benefits of Enterprise Architecture (EA) include reducing IT costs, increased productivity, identifying competitive advantages to grow, and mitigating risks associated with new technology implementations.

EA Components

Business Architecture describes the overall business structure and strategy.
Application Architecture deals with the software and applications used.
Information Architecture outlines how data is organized and used.
Technology Architecture covers the technology infrastructure.

Enterprise Systems

Enterprise systems aim to support business processes across departments.
They use internet technology to integrate business and stakeholder information.
Four main components are:
- Enterprise Resource Planning (ERP) for internal processes.
- Customer Relationship Management (CRM) for customer interactions.
- Supply Chain Management (SCM) for the supply chain.
- Supplier Relationship Management (SRM) for supplier relations.

IS and strategic advantage

For different markets, how can Information Systems (IS) support or impact:
- Cost leadership
- Product differentiation
- Innovation
- Segmentation

Information Systems (IS) and Corporate Culture

Information systems (IS) do not exist independently but are embedded within a specific organizational and social context.
ISs aim to address business problems by providing solutions with a common purpose, values, and beliefs.
Organizational culture and values influence IS investments.

IS Value

IS value is defined by the people who use the systems, supported business processes, and the organizational culture.
Relationships among IS, people and business processes drive value creation.
Organizational trust and commitment are essential for effective and successful IS implementation and use.

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Description

Test your knowledge on Supplier Relationship Management, Information Systems, and Digital Transformation. This quiz covers core concepts, key factors, and emerging technologies within the realm of information systems and their impact on enterprise functionality and business models.