Digital Business Strategy
Exam Solutions
Course Introduction
Digital Business Strategy explores how organizations leverage digital technologies to create innovative business models, enhance customer experiences, and gain competitive advantages in a rapidly evolving digital landscape. The course covers key frameworks and concepts such as digital transformation, platform ecosystems, disruptive innovation, and data-driven decision making. Students will analyze real-world case studies to understand the impact of emerging technologies on traditional industries and develop strategic approaches for integrating digital tools into business operations. By the end of the course, students will be equipped with practical skills and strategic insights necessary to design and execute effective digital initiatives within contemporary organizations.
Recommended Textbook
Managing and Using Information Systems A Strategic Approach 6th Edition by
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Page 2
Keri E. Pearlson
Chapter 1: Introduction
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Sample Questions
Q1) Information for top management is usually based on a long time horizon, with great detail and high structuredness.
A)True
B)False
Answer: False
Q2) What skills would be required to be a visionary manager?
A) Communication and Information gathering
B) Flexibility and creativity
C) Analytical and organizational
D) All of the above
E) None of the above
Answer: B
Q3) Data is:
A) information endowed with relevance and purpose
B) set of specific objective facts or observations
C) some information
D) all of the above
E) only a and c
Answer: B
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Chapter 2: The Information Systems Strategy Triangle
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Sample Questions
Q1) Apple's introduction of the iPhone while iPod sales were still very strong is an example of DYB.
A)True
B)False
Answer: True
Q2) A general manager should:
A) Rely on IS personnel to make IS decisions
B) Ignore how IS are used and managed
C) Have a deep technical knowledge of IS
D) Understand the use and consequences of technologies relevant to the business
E) Not be expected to ask or understand technology related questions
Answer: D
Q3) According to Porter's Generic Strategies Framework, a company that limits its scope to a narrower segment of the market is exercising this type of strategy.
Answer: focus
Q4) Once a firm is out of alignment, it does not mean that it has to stay that way.
A)True
B)False
Answer: True
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Chapter 3: Strategic Use of Information Resources
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Sample Questions
Q1) A link between a firm's IS strategy and organizational strategy focuses more on its external requirements than internal requirements.
A)True
B)False
Answer: False
Q2) The Nike + iPod Sports Kit is a sensor in your shoe that syncs with your iPod and provides details about your workout. This inter-organizational relationship affords both Nike and Apple a business advantage. This relationship between Nike and Apple is best described as:
A) Strategic alliance
B) Co-opetition
C) Collaboration
D) Dependence
E) Competition
Answer: A
Q3) This IT asset is business data that has been captured, organized and made available to an organization.
Answer: Information repository
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5
Chapter 4: Organizational Strategy and Information Systems
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Sample Questions
Q1) In which type of organizational structure is power centralized and the type of environment best supported stable and certain?
A) Flat
B) Networked
C) Hierarchical
D) Matrix
E) Traditional
Q2) Explain how Cognizant's "10/10/10" program is designed, its cultural impact and the role IS plays in supporting it.
45 Assume you are a manager of a local doctor's office. How could you use IS to help monitor the performance of the nurses and doctors? State the benefits as well as the challenges.
Q3) A matrix organization:
A) Can involve multiple bosses and multiple teams
B) Requires quite a bit of communication to be successful
C) Were rare for quite a while but have become more common in recent years
D) All of the above
E) None of the above
Q4) A corporate culture is a firm's set of shared values and _______
6
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Chapter 5: Information Systems and the Design of Work
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Sample Questions
Q1) Explain how IS radically changed the paper maker's work at a paper mill.
Q2) How have hiring practices been impacted by IT?
Q3) Today's IT increases the effectiveness of workers, particularly with the use of both ________ tools and collaboration tools.
Q4) Shoshana Zuboff studied how papermakers' jobs were changed by the introduction of computers. What was one of her findings?
A) Web portals were useful in a manufacturing context
B) The workers felt empowered by the technology
C) The workers sabotaged the technology
D) The managers were unable to take their typical shortcuts
E) The workers were no longer able to smell and squeeze the pulp, resulting in lower productivity
Q5) What do we call members of the generation that's grown up using computers, the Web and social network sites as a normal, integrated part of their lives?
Q6) Why are teams using collaborative tools like groupware and wikis to coordinate their work rather than a communication tool like e-mail?
Q7) Telecommuting is (more/less) accepted by people in countries such as Japan and China
Page 7
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Chapter 6: Information Systems and Business Transformation
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Sample Questions
Q1) Outline how Zara demonstrates a strong sense of process perspective in comparison to other more traditional retailers who seem to have a silo perspective.
Q2) Which one of the following enterprise systems is social IT increasingly integrating with?
A) ERP
B) SCM
C) PLM
D) CRM
E) SAP
Q3) Early computer systems were designed to support the silo perspective rather than a cross-functional business process approach.
A)True
B)False
Q4) ERP systems are credited with establishing new business models, rather than simply making a firm improve its practices.
A)True
B)False
Q5) What does SCM stand for?
Page 8
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Chapter 7: Architecture and Infrastructure
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Sample Questions
Q1) Rigid architectures and organizational models are known to hamper the agility needed to grow a business it today's hypercompetitive environment. Which one of the traditional IT architectures do you consider to be "rigid"?
Q2) During an ice storm, JetBlue Airlines had an IT infrastructure that demonstrated which one of the following technical issues?
A) Security
B) Scalability
C) Adaptability
D) Maintainability
E) Standardization
Q3) All of the following are robust platforms EXCEPT for _________.
A) iPhone IOS 9
B) Android KitKat
C) Windows 10
D) MS Office 2016
E) Mac OSX
Q4) Explain how cloud computing services benefit from virtualization.
Q5) This is the electronic representation of numbers and text.
Q6) Why would an organization use cloud computing for its IT infrastructure needs?
Page 9
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Chapter 8: Security
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Sample Questions
Q1) When the Office of Personnel Management was hacked, all of the following are true except:
A) The hackers gained access to the building to steal the records
B) It took the Office of Personnel Management many months to detect the break-in
C) The hackers likely exploited a stolen password
D) The hackers did not need to escape in the blue turbocharged vehicle
E) None of the above (indicating that all are true)
Q2) On the black market, stolen data in a "kit" that contains credit card information plus social security number and medical information is worth:
A) between $13 and $18 per record
B) between $43 and 65 per record
C) between $145 and $154 per record
D) between $100 and $1,000 per record
E) between $4,520 and $4,580 per record
Q3) ___ of breaches are caused by stealing a password
A) A very low percentage (somewhere around 1%)
B) A low percentage (around 10%)
C) A moderate percentage (around 25%)
D) A high percentage (around 50%)
E) A very high percentage (around 80%)
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Chapter 9: The Business of Information Technology
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Sample Questions
Q1) A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.
A) strategic systems
B) infrastructure
C) informational systems
D) transactional systems
E) social media
Q2) Corporate budgeting is a wise choice for funding newer technologies and innovation.
A)True
B)False
Q3) Labor costs associated with an IT infrastructure far outweigh the actual capital investment cost.
A)True
B)False
Q4) TCO, discussed by Gartner, stands for Technology Chief Officer
A)True
B)False
Q5) What does TCO stand for?
11
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Chapter 10: Governance of the Information Systems Organization
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Sample Questions
Q1) Federal IT provides for strong centralization, like the U.S. Federal Government.
A)True
B)False
Q2) This IT governance archetype consists of C-level executives and at least one other business group. An IT executive may be an additional participant.
A) Business monarchy
B) IT monarchy
C) Feudal
D) Federal
E) IT Duopoly
Q3) IT organizations implement powerful information systems like ERP and SCM that provide centralized data repositories. In addition, business units have tools for their particular units that individuals can use to report on and analyze collected data. This IT governance approach is best described as: ________.
A) Distributed Control
B) Decentralized
C) Federalism
D) Joint-Control
E) Centralized
Page 12
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Chapter 11: Information Systems Sourcing
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Sample Questions
Q1) iCloud is an example of which one of the following?
A) Offshoring
B) Insourcing
C) Farshoring
D) Cloud computing
E) Backsourcing
Q2) What is it called when a company brings IS capabilities that were previously outsourced back in-house?
A) Backsourcing
B) Insourcing
C) Software as a Service
D) Nearshoring
E) Cloud computing
Q3) IT organizations will outsource which one of the following IT activities?
A) Programming
B) IT transactions
C) Knowledge-based business processes
D) Data storage
E) All of the above.
Q4) This is the most widely used form of cloud computing.
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Chapter 12: Managing IT Projects
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Sample Questions
Q1) Open source software __________.
A) is free.
B) requires an organization pay a per user fee.
C) is costly.
D) is not allowed to be modified.
E) is provided by software vendors like Microsoft and SAP.
Q2) This is a temporary endeavor undertaken to create a unique product, service or result.
A) project
B) event
C) scope
D) requirement
E) system
Q3) To transform resources into profits, organizations combine two types of workoperations and ________.
Q4) These are the individuals and organizations that are involved in or may be affected by a given project.
Q5) A good project manager defines a realistic project scope and then manages the project so that it can be completed on time and within _________.
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Chapter 13: Business Intelligence Knowledge Management and Analytics
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Sample Questions
Q1) Companies that use big data and analytics can be helped by making information more hidden, and making sure to avoid experimentation (which can become reckless).
A)True
B)False
Q2) Tacit knowledge is easy to formalize.
A)True
B)False
Q3) The CEO-level sponsorship of and passion for analytics enabled firms like Caesars and Capital One to achieve the success they did.
A)True
B)False
Q4) Explain how information-based intellectual property, such as a digital book, is different from physical property and why it is harder to protect.
Q5) List some examples of what a company should do if it seeks to gain a competitive advantage from analytics.
Q6) These are tools that analyze the impact social IT has on a business.
Q7) How has Web 2.0 (social media) changed how organizations make decisions that impact customers?
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Chapter 14: Privacy and Ethical Considerations in Information Management
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Sample Questions
Q1) Green computing is often associated with supporting the triple bottom line known as:
A) Economic, environmental and social
B) Stockholder, stakeholder and society
C) People, Privacy and Property
D) Google, Facebook and Microsoft
E) Data, information and knowledge
Q2) This term is used to define energy-efficient computing resources.
Q3) Unlike the European Union, the U.S. has no general legislature ensuring Internet privacy rights. Instead, the U.S. encourages self-regulation and has introduced industry-specific regulations as needed.
A)True
B)False
Q4) TJX's handling of its serious data breach is consistent with which one of the following?
A) Stakeholder theory
B) Stockholder theory
C) Social normative
D) Social contract theory
E) Corporate social responsibility
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