Lecture 1 & Article 1 PDF

**Concepts and Definitions** 1. **What is the primary difference between digitization and digitalization?** a) Digitization focuses on value delivery, while digitalization focuses on data collection.\ b) Digitization involves converting physical information into digital form, while...

**Concepts and Definitions** 1. **What is the primary difference between digitization and digitalization?** a) Digitization focuses on value delivery, while digitalization focuses on data collection.\ b) Digitization involves converting physical information into digital form, while digitalization leverages digital information to improve operations.\ c) Digitization and digitalization are interchangeable terms.\ d) Digitalization precedes digitization in all business processes. 2. **What is the role of aggregation in digital transformation?**\ a) It ensures all data is converted into a single format.\ b) It combines diverse data sets to derive new insights and solve previously unattainable problems.\ c) It eliminates the need for connectivity in digital platforms.\ d) It focuses on data storage optimization. 3. **Which of the following is NOT a foundational process in digital transformation as per the \"Articles - Week 1\"?**\ a) Representation\ b) Connectivity\ c) Automation\ d) Aggregation 4. **Which of the following best defines a business model in the context of digital transformation?**\ a) The structure of KPIs used for product evaluation.\ b) The combination of value creation, value capture, and value delivery.\ c) A framework for digital platform development.\ d) The operational alignment of traditional and digital processes. 5. **What is the focus of connectivity in digital transformation?**\ a) Reducing human intervention in data interpretation.\ b) Expanding network density and relevance for enhanced decision-making.\ c) Ensuring data storage scalability.\ d) Maintaining physical connections between business units. **Strategic Shifts** 6. **Why are traditional and digital business models fundamentally different?**\ a) Traditional models emphasize agility, while digital models focus on stability.\ b) Digital models prioritize user engagement and ecosystem health, whereas traditional models emphasize product-level profitability.\ c) Digital models avoid hierarchical structures, while traditional models rely on distributed teams.\ d) Traditional models focus on connectivity, while digital models prioritize aggregation. 7. **What KPI would a digital business prioritize over a traditional business?**\ a) Product profit margin\ b) Data quality and completeness\ c) Cost per product line\ d) Product innovation metrics 8. **In transitioning to digital business logic, what is the primary role of APIs?**\ a) They act as proprietary data encryption tools.\ b) They facilitate agile development and internal/external integration.\ c) They replace legacy systems entirely.\ d) They primarily support traditional hierarchical structures. 9. **Which of the following is an example of a qualitative shift in digital transformation?**\ a) Faster data transfer speeds.\ b) Enhanced algorithmic representation for predictive modeling.\ c) Increased storage capacity for digital data.\ d) Larger-scale data collection. 10. **How does digital transformation redefine firm scope?**\ a) By narrowing the range of services offered.\ b) By leveraging digital assets like software to enter multiple markets, blurring industry boundaries.\ c) By strictly defining industry competition metrics.\ d) By eliminating the need for physical market presence. **Challenges and Ethical Considerations** 11. **What is a significant ethical concern raised by algorithmic management?**\ a) Increased connectivity costs.\ b) Loss of hierarchical authority.\ c) Risks of discrimination and coercion in decision-making processes.\ d) Difficulty in scaling predictive models. 12. **Which scenario exemplifies bounded rationality in digital representation?**\ a) A system using algorithms to predict employee performance without human oversight.\ b) A manager struggling to interpret algorithmically represented data for strategic decisions.\ c) A business failing to scale its legacy systems.\ d) Data being stored in multiple incompatible formats. 13. **Who should own data generated by digital devices according to \"Articles - Week 1\"?**\ a) The firm operating the devices.\ b) Regulatory bodies overseeing digital operations.\ c) The individuals generating the data.\ d) There is no clear consensus. 14. **Why is hierarchy less effective in digitally transformed firms?**\ a) Managers lack access to critical information.\ b) Connectivity reduces reliance on information asymmetry for authority.\ c) Digital transformation mandates flat organizational structures.\ d) Algorithmic decisions entirely replace managerial input. **Critical Applications** 15. **What approach best embodies agile development in digital transformation?**\ a) Top-down waterfall development for core processes.\ b) Iterative, sprint-based app development with open APIs.\ c) Proprietary product development emphasizing closed systems.\ d) Static R&D focusing on long-term market predictions. 16. **How does data fungibility impact firm strategies?**\ a) It limits a firm\'s ability to reuse data across industries.\ b) It enhances scalability by allowing data to be repurposed across applications.\ c) It necessitates strict compliance with traditional diversification theories.\ d) It reduces the value of predictive modeling. 17. **Which of the following best represents a digital firm\'s operational model?**\ a) Heavyweight project management for software and hardware optimization.\ b) Centralized data hubs supporting distributed applications.\ c) Focused and dedicated teams with limited interconnectivity.\ d) Proprietary IP driving linear growth in products. 18. **What is a primary driver of value in digital transformation?**\ a) Increasing legacy system efficiency.\ b) Leveraging the interplay of representation, connectivity, and aggregation.\ c) Reducing data processing power requirements.\ d) Simplifying the customer experience. **Conclusions** 19. **What does the resource-based view (RBV) suggest about data and algorithms?**\ a) They are difficult to substitute and inherently scarce resources.\ b) They are ultimate scale-free resources that generate additional value through interaction.\ c) They are best utilized in proprietary environments.\ d) Their value diminishes when shared across platforms. 20. **What is the overarching implication of digital transformation for firms?**\ a) Firms must focus exclusively on internal innovation.\ b) Traditional competitive principles remain the cornerstone of strategy.\ c) A novel framework is required to navigate the interaction of representation, connectivity, and aggregation.\ d) Firms can continue leveraging legacy strategies with minor adjustments. **Answer Key** 1. b 2. b 3. c 4. b 5. b 6. b 7. b 8. b 9. b 10. b 11. c 12. b 13. d 14. b 15. b 16. b 17. b 18. b 19. b 20. c