Week 1 (MC) PDF

**Digital Transformation Basics** 1\. **What is the primary purpose of digitization?** A\) To create new digital platforms. B\) To convert information into digital formats. C\) To automate customer interactions. D\) To enable algorithmic decision-making. **Answer**: B 2\. **Which of the follo...

**Digital Transformation Basics** 1\. **What is the primary purpose of digitization?** A\) To create new digital platforms. B\) To convert information into digital formats. C\) To automate customer interactions. D\) To enable algorithmic decision-making. **Answer**: B 2\. **Which of the following is NOT required for digital transformation?** A\) Digitized data. B\) A digital platform. C\) Agile development processes. D\) Integration of digitized and digitalized systems. **Answer**: A 3\. **What distinguishes digital transformation from digitalization?** A\) Digitalization focuses on creating new applications, while digital transformation focuses on converting information. B\) Digital transformation involves creating new business models, while digitalization focuses on enhancing operations. C\) Digitalization is a prerequisite for digital transformation. D\) Digital transformation and digitalization are interchangeable. **Answer**: B **Processes and Models** 4\. **What are the three components of a business model?** A\) Scale, Scope, Learning B\) Value Creation, Value Capture, Value Delivery C\) Innovation, Agility, Monetization D\) Platform, Audience, Feedback **Answer**: B 5\. **Which of the following best describes an operating model's focus on scale?** A\) Expanding product offerings. B\) Handling higher volume and complexity of operations. C\) Innovating through research and development. D\) Delivering products through digital channels. **Answer**: B 6\. **What is a primary goal of value capture in a business model?** A\) To improve customer satisfaction. B\) To ensure profitability and competitive advantage. C\) To expand audience engagement. D\) To integrate new technologies. **Answer**: B 7\. **Which driver focuses on broadening the range of products or services?** A\) Scale B\) Scope C\) Learning D\) Efficiency **Answer**: B 8\. **What does learning as part of an operating model emphasize?** A\) Expanding geographic reach. B\) Continuous improvement through data and R&D. C\) Creating proprietary platforms. D\) Iterative product development. **Answer**: B **Traditional vs. Digital Business Logic** 9\. **Which KPI is unique to digital business logic?** A\) Profit and cost per product line. B\) Total audience engagement. C\) Product-specific quality metrics. D\) Number of proprietary patents. **Answer**: B 10\. **What is a characteristic of traditional business logic?** A\) Agile development cycles. B\) Siloed product lines with dedicated teams. C\) Open APIs and hackathons. D\) Multi-sided monetization models. **Answer**: B 11\. **What is a hallmark of digital business processes?** A\) Waterfall development. B\) Linear innovation models. C\) Agile and iterative processes. D\) Hierarchical control. **Answer**: C 12\. **Which organizational structure aligns with digital business logic?** A\) Functional structure with flexible, ad hoc teams. B\) Hierarchical project-based teams. C\) Product-line silos. D\) Centralized decision-making. **Answer**: A **Representation, Connectivity, Aggregation** 13\. **What does representation in digital transformation refer to?** A\) Visualizing data for stakeholders. B\) Algorithmic manipulation of digitized data. C\) Establishing connections between systems. D\) Integrating disparate datasets. **Answer**: B 14\. **Which of the following describes connectivity-by-default?** A\) Connections are established only when needed. B\) Devices and systems are always connected in real time. C\) Connectivity relies on manual input. D\) Connectivity focuses on product silos. **Answer**: B 15\. **What is an example of aggregation in digital transformation?** A\) Real-time data transfer between devices. B\) Converting analog records into digital formats. C\) Combining health, location, and lifestyle data for personalized insights. D\) Creating APIs for open-source platforms. **Answer**: C 16\. **What is a key challenge associated with aggregation?** A\) Lack of data sources. B\) Managing privacy and data control. C\) Reducing operational costs. D\) Implementing real-time algorithms. **Answer**: B **Ethical and Strategic Implications** 17\. **What is a potential ethical concern in algorithmic decision-making?** A\) Increased scalability. B\) Institutionalized discrimination. C\) Improved engagement metrics. D\) Enhanced connectivity. **Answer**: B 18\. **Which strategic implication does digital transformation challenge?** A\) Industry boundaries. B\) Intellectual property creation. C\) Product-specific quality metrics. D\) Standardized KPIs. **Answer**: A 19\. **What does algorithmic management rely on?** A\) Hierarchical control. B\) Automating decision-making and processes. C\) Manual intervention for complex tasks. D\) Isolated business units. **Answer**: B 20\. **Which framework concept integrates representation, connectivity, and aggregation?** A\) Linear scaling models. B\) The interaction model. C\) Agile methodology. D\) Siloed innovation systems. **Answer**: B **Examples and Applications** 21\. **What does total audience engagement measure?** A\) The number of unique users on a platform. B\) The level of interaction across the ecosystem. C\) Product-specific profitability. D\) Audience loyalty to a specific product line. **Answer**: B 22\. **What makes a super-scalable business model possible?** A\) Proprietary systems. B\) Error-free, costless replication. C\) Siloed product development. D\) Isolated KPIs. **Answer**: B 23\. **Which of these is an example of scope expansion?** A\) A retailer offering financial services. B\) A firm automating internal processes. C\) A company scaling its global operations. D\) A brand optimizing product quality. **Answer**: A **Advanced Concepts** 24\. **What distinguishes digital transformation's qualitative shift?** A\) Faster operations. B\) Enabling entirely new ways of creating value. C\) Improved internal efficiency. D\) Increased proprietary systems. **Answer**: B 25\. **Why is data fungibility important?** A\) It ensures seamless hardware upgrades. B\) It enables reuse across different contexts. C\) It minimizes data aggregation efforts. D\) It restricts scalability. **Answer**: B 26\. **What is the role of open APIs in digital business processes?** A\) To secure data ownership. B\) To foster innovation through collaboration. C\) To focus on proprietary systems. D\) To centralize hierarchical decision-making. **Answer**: B 27\. **How does learning contribute to algorithmic management?** A\) By limiting innovation to specific departments. B\) By enabling continuous improvement through feedback. C\) By ensuring rigid product guidelines. D\) By focusing on top-down processes. **Answer**: B **Industry Applications** 28\. **How does digital transformation impact firm scope?** A\) It narrows focus to individual markets. B\) It enables cross-industry competition and diversification. C\) It limits opportunities for adjacent innovations. D\) It emphasizes product-specific goals. **Answer**: B 29\. **Which of these firms exemplifies platform enablement in digital logic?** A\) Coca-Cola's bottling operations. B\) Uber's app connecting drivers and riders. C\) A local bakery selling online. D\) A traditional automaker producing EVs. **Answer**: B 30\. **Why is connectivity crucial in a digital economy?** A\) It facilitates real-time data sharing and interaction. B\) It isolates product lines for targeted KPIs. C\) It eliminates the need for data aggregation. D\) It focuses solely on customer satisfaction. **Answer**: A