ISM Sample Exam Questions PDF

lOMoARcPSD|20945774 5. ISM Sample Exam Questions Digital Transformation in IB (Rijksuniversiteit Groningen) Scannen om te openen op Studeersnel Studeersnel wordt niet gesponsord of ondersteund door een hogeschool of universiteit Gedownload door E.E. K...

lOMoARcPSD|20945774 5. ISM Sample Exam Questions Digital Transformation in IB (Rijksuniversiteit Groningen) Scannen om te openen op Studeersnel Studeersnel wordt niet gesponsord of ondersteund door een hogeschool of universiteit Gedownload door E.E. Kranenbarg ([email protected])  lOMoARcPSD|20945774 Information Systems Management (ISM) Sample Exam Questions (correct answers marked in yellow) Note about real exam: There will be 35 questions in total, approximately about 5 questions per lecture topic. It will be an open book multiple-choice exam where one or more answers can be correct. It will consist of two types of questions: a) Statements/questions where you choose one or more correct answers (as most questions in this particular sample of exam questions, namely questions 1-18) b) Short cases followed by series of multiple-choice questions where you choose one or more correct answers (for example case of X and Y car firms and questions 19, 20 and 21) The exam questions may come from the book, articles and lectures. 1. Complete list of domains being of digital transformation include: a) Competition, customers, data, value and patents b) Customers, data and innovation c) Value, competition, customers, data and innovation d) Customer networks, big data and innovation 2. Strategic theme of “build platforms, not just products” is related to the domain of: a) Competition b) Data c) Innovation d) Value 3. Incumbent operating models comprise of the following types of digital transaction platforms: a) Platforms, customer networks and products b) Process digitalization, communication digitalization and buyer digitalization c) Company, process and customers 4. The customer network strategy of “be faster, be easier, be everywhere, be always on” is best suited to the following customer network behavior: a) Customize b) Access c) Respond to desire d) Connect 5. Changes in strategic assumptions from the analog to the digital age in terms of moving from having distinctions between partners and rivals to blurred distinctions Gedownload door E.E. Kranenbarg ([email protected])  lOMoARcPSD|20945774 and rivals and moving from having assets in the firm to having assets that reside in networks is related to the following domain of digital transformation: a) Customer networks b) Competition c) Innovation d) Curated offering 6. According to Crittenden et al. (2014), the platform through which channel members can bring high touch to the technology is: a) Communications digitalization b) Buyer digitalization c) Inflection point d) Network platforms 7. The three key characteristics of platforms are: a) Distinct types of customers, direct interaction and facilitating b) Value, competition and customer networks c) Curated offering, competition and innovation d) Engagement, customization and personalization 8. According to the classification of four types of platforms, platforms such as Uber and Airbnb are classified as: a) Exchange b) Transaction system c) Ad-supported media d) Hardware/software standard 9. Platforms create network effects. When the value of a service goes up as the number of users rises, this is: a) Indirect network effect b) Direct network effect c) Multisided network effect d) Semidirect network effect 10. The way in which businesses produce, manage, and utilize information is covered by the following domain of digital transformation: a) Value b) Data c) Competition d) Inflection points 11. Key data types for business strategy are: a) Business process data, product/service data and customer data Gedownload door E.E. Kranenbarg ([email protected])  lOMoARcPSD|20945774 b) Network data, media data and competitor data c) Data on direct and indirect effects d) Open data, real time data and unstructured data 12. Distinctive characteristics of the big data are: a) Structure b) Volume, c) Velocity d) Variety 13. Types of experiments characterized by exploratory nature and informal design are: a) Convergent b) Divergent c) Causal d) Confirmatory 14. Two sided markets are faced with three challenges, namely: a) Pricing the platform, winner-take-all dynamics and the threat of envelopment b) Change in business models, threat of envelopment and freeriding c) Direct interactions, advertising and pricing d) Winner-take-all dynamics, pricing and advertising 15. Convergent experiments are not characterized by which of the following principles: a) Causal hypothesis b) Test and control groups c) Informal d) Blind testing 16. In an analog era, the value proposition was characterized by the following: a) Defined by industry b) Defined by changing customer needs c) Required to adapt at any moment d) Tied to business which is constantly optimized 17. Once the new technologies kick in, this can decline the relevance of a once valued product or service. The routes out of shrinking market can be through: a) New value b) New customers c) Disrupting partnerships d) Emerging threats 18. As firms try to continuously adapt their value’s proposition, they may run into some organizational challenges, namely: Gedownload door E.E. Kranenbarg ([email protected])  lOMoARcPSD|20945774 a) Dedicating leadership b) Allocating talent and treasure c) Avoiding myopia d) Use case of their business Case: Battle between X and Y car firms Firm X has been around for a long time and had major market share in the car industry. It was mostly serving the people who want large, reliable and safe cars and who can/want to own such cars. It was not serving the needs of the customers who need more affordable solution and who do not require the car all the time. On the other hand, the firm Y is the firm that launched the business with the fleet of cars parked in different locations that people can use by paying an annual membership and paying for the use when they need the car. The users were able to use the App to book their car at desired time. At first, the firm X was not really paying the attention to this development, but the firm Y was developing fast and started tapping into the market of customers who wanted the car all the time by offering the lease options for bigger and more luxurious cars. In responding to this development and to understand the impact this may have on them and other incumbents in the industry, the firm X started understanding why this is happening and interviewed the customers to understand why they were using this new service and potentially not buying their cars any more. In doing so, they were primarily interested in looking at both immediate, but also higher order customer needs. After looking into this and considering the potential response strategies, the firm X decided to launch their own independent firm called “X sharing cars”, which offered the similar service of either leasing the car or using the fleet of cars through annual membership. The questions 19, 20 and 21 relate to the case: 19. The way the firm Y started selling their product/service to the customers and entering the car market is an example of which trajectory of the disruptive business models: a) Outside in b) Inside out c) Outside out d) Inside in 20. The way the firm X started exploring potential impact on them and other incumbents reflects the approach of: a) Substitution b) Value train c) Laddering d) Use case 21. Creation of a firm of “X sharing cars” by X to directly compete with the firm Y reflects which of the strategies to deal with disruptors: a) Split the business model of disruptor b) Launch an independent disruptor Gedownload door E.E. Kranenbarg ([email protected])  lOMoARcPSD|20945774 c) Diversify your portfolio d) Plan for a fast exit Gedownload door E.E. Kranenbarg ([email protected])