Week 1.1 (MC) PDF

**1. What is a key distinction between digital transformation and digitalization?** A\) Digitalization focuses on algorithmic manipulation, while digital transformation emphasizes digitized data. B\) Digital transformation involves creating new business models, whereas digitalization improves oper...

**1. What is a key distinction between digital transformation and digitalization?** A\) Digitalization focuses on algorithmic manipulation, while digital transformation emphasizes digitized data. B\) Digital transformation involves creating new business models, whereas digitalization improves operations using digitized data. C\) Digital transformation focuses on converting analog data, while digitalization focuses on user engagement. D\) Digitalization refers to the ethical implications of digitized data, while digital transformation relates to its scalability. **Correct Answer: B** **2. In the context of digital business logic, which process is most associated with fostering external innovation?** A\) Proprietary intellectual property (IP) development. B\) Waterfall development models. C\) Open APIs and crowdsourcing initiatives. D\) Hierarchical decision-making and control. **Correct Answer: C** **3. How does "connectivity-by-default" differ from "connectivity-on-demand"?** A\) Connectivity-by-default relies on manual connections, while connectivity-on-demand is always automated. B\) Connectivity-by-default ensures continuous real-time connections, while connectivity-on-demand is event-triggered. C\) Connectivity-by-default focuses on internal systems, while connectivity-on-demand focuses on external networks. D\) Connectivity-by-default is data-driven, while connectivity-on-demand depends on hierarchical approval. **Correct Answer: B** **4. Which of the following represents a strategic use of aggregation in digital transformation?** A\) Using predictive algorithms to improve product recommendations. B\) Combining IoT sensor data and customer feedback for new insights. C\) Converting physical records into digital formats for faster access. D\) Expanding the range of products offered to new markets. **Correct Answer: B** **5. In digital business models, "value capture" is best demonstrated by:** A\) Offering a subscription-based service that ensures consistent revenue. B\) Increasing the geographic reach of a product line. C\) Combining data streams for improved algorithmic performance. D\) Investing in open-source development for better engagement. **Correct Answer: A** **6. What is a primary KPI for measuring success in digital platforms?** A\) The cost per product line. B\) Total audience engagement across services. C\) The innovation score of proprietary features. D\) The satisfaction score of individual products. **Correct Answer: B** **7. What ethical risk is most associated with algorithmic decision-making?** A\) High costs of data aggregation. B\) Institutionalized bias through historical data. C\) Low scalability of algorithms in traditional systems. D\) Lack of connectivity in manual systems. **Correct Answer: B** **8. Which action would help a company successfully manage resistance to agile processes?** A\) Isolate teams that are not adapting to the new processes. B\) Highlight the long-term efficiency gains of agile workflows. C\) Avoid involving employees in early decision-making stages. D\) Rely entirely on external consultants for implementation. **Correct Answer: B** **9. In the transition from traditional to digital business logic, what happens to the organizational structure?** A\) It shifts from a centralized platform to siloed product lines. B\) It moves from ad hoc teams to product-dedicated teams. C\) It evolves from hierarchical silos to integrated, flexible teams. D\) It transitions from agile workflows to stage-gate processes. **Correct Answer: C** **10. Which factor would most differentiate a firm's digital platform from its competitors?** A\) A larger product catalog with minimal integration. B\) Exclusive features that leverage unique data insights. C\) Greater focus on profit margins per product line. D\) A proprietary data system inaccessible to external developers. **Correct Answer: B** **11:** A logistics company, SwiftMove, integrates IoT sensors into its fleet of delivery trucks. These sensors track vehicle location, fuel usage, and maintenance needs in real time. Despite having this data, SwiftMove's managers are struggling to make decisions quickly due to the sheer volume of information. How can SwiftMove use the concept of connectivity to improve decision-making? A\) Reduce the number of sensors to focus on essential data. B\) Implement predictive algorithms to process real-time sensor data. C\) Manually analyze the data from each sensor. D\) Convert all the sensor data into physical logs for easier interpretation. **Correct Answer: B** **12:** MediTrack, a health-tech firm, digitizes patient records to improve efficiency. However, the firm hasn't yet developed tools to analyze the records. Managers believe the data can offer valuable insights into patient outcomes. What is the next step for MediTrack to leverage representation in digital transformation? A\) Store the digital records securely for future use. B\) Develop algorithms to extract and analyze insights from the records. C\) Hire more staff to manually review patient data. D\) Focus on digitizing additional records without analysis. **Correct Answer: B** **13:** ZentoCorp, a manufacturing firm, introduces agile workflows to improve its product development cycle. However, employees accustomed to the traditional stage-gate process feel overwhelmed and resist the change. What strategy should ZentoCorp adopt to address this resistance? A\) Mandate immediate adoption of agile processes without consultation. B\) Show employees how agile workflows can improve their day-to-day tasks. C\) Limit communication about agile processes until results are visible. D\) Outsource all agile processes to an external team. **Correct Answer: B** **14:** FinMetrics, a financial services company, collects customer spending data and market trends. By analyzing these data sets separately, it has achieved moderate success. However, its competitors are offering personalized financial advice. How can FinMetrics use aggregation to gain a competitive edge? A\) Combine spending data and market trends to offer personalized insights. B\) Focus solely on improving the accuracy of spending data. C\) Publish the data sets separately for transparency. D\) Reduce data collection efforts to simplify operations. **Correct Answer: A** **15**: EcoDrive, an electric vehicle startup, competes with established brands by offering a digital platform that tracks vehicle performance. While its competitors focus on general vehicle data, EcoDrive wants to differentiate its platform. Which strategy would most effectively set EcoDrive's platform apart? A\) Develop features that integrate data from third-party devices, like home energy systems. B\) Limit platform access to customers who pay a premium. C\) Focus exclusively on collecting battery performance data. D\) Reduce the platform's complexity to make it more user-friendly. **Correct Answer: A**