Digital Transformation IB Exam Sample Questions PDF

**Digital Transformation in IB -- Exam sample questions** *Note about real exam:* There will be 40 questions in total, approximately about 6-7 questions per lecture topic. It will be closed book multiple-choice exam where only one answer can be correct. It will mostly consist of statements/questi...

**Digital Transformation in IB -- Exam sample questions** *Note about real exam:* There will be 40 questions in total, approximately about 6-7 questions per lecture topic. It will be closed book multiple-choice exam where only one answer can be correct. It will mostly consist of statements/questions where you choose one correct answer (as questions in this particular sample of exam questions, namely questions 1-19) and some short cases followed by series of multiple-choice questions where you choose one correct answer (for example case of X and Y car firms and questions 19, 20, 21). The exam questions may come from the book, slides, and lecture discussions. 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. 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 4. 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 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 5. What is the primary reason digital transformation is about strategy rather than just technology? a. Technology is temporary, but strategy is long-term. b. Strategy involves rethinking the core of the business, not just its technology infrastructure. c. Technology is easy to implement, but strategy is difficult. d. Digital tools only apply to IT departments. 6. 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 7. Platforms create network effects. When the value of a service for one group goes up as the number of users from the same group rises, this is: a. Indirect network effect b. Direct network effect c. Multisided network effect d. Semidirect network effect 8. 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 9. Key data types for business strategy are: a. Business process data, product/service data and customer data b. Network data, media data and competitor data c. Data on direct and indirect effects d. Open data, real time data and unstructured data 10. Which of the following best illustrates the competitive advantage of a platform business model over a traditional product-based model in the digital age? a. A platform allows a company to own all the assets it offers to customers, ensuring better control over quality. b. A platform enables businesses to scale by leveraging external participants who create and exchange value, increasing network effects. c. A platform focuses primarily on maximizing production efficiency within the company to reduce costs. d. A platform requires less investment in technology, as the value is generated solely from internal processes. 11. What is the primary advantage of building platforms instead of traditional product-based business models? a. Reduced operational costs b. Control over all assets c. The ability to scale quickly through network effects d. Fewer competitors 12. Distinctive characteristic of the big data is NOT: 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. What is one of the major challenges for businesses when dealing with data in the digital age? a. Storing data efficiently b. Generating enough data c. Turning data into valuable insights d. Avoiding the use of unstructured data 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. Defined by digital platforms 17. Once the new technologies kick in, this can decline the relevance of a once valued product or service. One of the routes out of shrinking market can be through: a. New customers b. Disrupting partnerships c. Emerging threats d. Disrupting supply chain 18. As firms try to continuously adapt their value's proposition, they may run into some organizational challenges. Which of the following does NOT belong to these challenges: 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 18, 19, and 20 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 c. Diversify your portfolio d. Plan for a fast exit