Digital Business Strategy
Pre-Test Questions
Course Introduction
Digital Business Strategy explores the dynamic intersection of technology and business management, equipping students with the skills needed to strategically leverage digital innovations for organizational growth and competitive advantage. The course covers key topics such as digital transformation, disruptive technologies, platform-based business models, data analytics, e-commerce, and the integration of digital tools into traditional business processes. Students will analyze real-world case studies and craft digital strategies that respond to evolving market environments, with particular emphasis on strategic planning, customer experience, and value creation in the digital era.
Recommended Textbook
Managing and Using Information Systems A Strategic Approach 6th Edition by Keri E. Pearlson
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14 Chapters
727 Verified Questions
727 Flashcards
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Chapter 1: Introduction
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Sample Questions
Q1) Which of the following is not a Decisional role?
A) Entrepreneur
B) Disturbance handler
C) Negotiator
D) Resource allocator
E) Spokesperson
Answer: E
Q2) Information systems (IS) managers should participate in all of the important IS decisions, even if those decisions do not impact the IS department.
A)True
B)False
Answer: True
Q3) If a manager exhibits creativity, curiosity, and confidence, we would say that he or she supports the role of ______ very well.
Answer: visionary
Q4) The Chief Technology Officer of Wal-Mart states that every company is becoming a ______ company.
Answer: tech or technology
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Page 3
Chapter 2: The Information Systems Strategy Triangle
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Sample Questions
Q1) Organizations seek to gain a competitive advantage by differentiation, cost, or
A) service
B) focus
C) profit
D) value
E) speed
Answer: B
Q2) Before Kaiser Permanente adopted its new business strategy, its IS Strategy Triangle was out of __________.
A) control
B) alignment
C) adjustment
D) scope
E) specification
Answer: B
Q3) Hypercompetition refers to where a firm obtains more than 5 strong competitors.
A)True
B)False
Answer: False
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Chapter 3: Strategic Use of Information Resources
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Sample Questions
Q1) Which part of the value chain includes the manufacturing of goods?
A) Inbound Logistics
B) Outbound Logistics
C) Operations
D) Service
E) Organization
Answer: C
Q2) Porter's five "Forces," used so often in the text for analysis of IT applications, include all of the following except:
A) Threat of substitute products
B) Bargaining power of suppliers
C) Bargaining power of customers
D) New entrants
E) Switching costs
Answer: E
Q3) Salesforce.com is an example of SAAS (Software as a service).
A)True
B)False
Answer: True
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Page 5
Chapter 4: Organizational Strategy and Information Systems
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Sample Questions
Q1) IS makes it possible to evaluate performance by capturing current data in addition to analyzing historical data. Often managers are faced with an overwhelming volume of data and analyzing it becomes very time consuming, a situation known as
Q2) If a technology is to be successfully implemented into an organization, either the technology must fit the organization's culture or the culture must be shaped to fit the behavioral requirements of the technology.
A)True
B)False
Q3) List some examples of informal networking that occurs in organizations. How can management utilize informal networks to the organization's advantage?
Q4) When using information technologies to collect data for the purpose of monitoring workers, a manager should do all of the following EXCEPT:
A) Inform employees when and what is being monitored.
B) Consider the privacy rights of individuals.
C) Ensure monitoring is meaningful to the organization's mission.
D) Capture qualitative inputs in addition to quantitative data.
E) Require workers to complete additional tasks.
Page 6
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Chapter 5: Information Systems and the Design of Work
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Sample Questions
Q1) What was involved in the American Express BlueWork program?
A) A system that tracks the hours each employee works in a given day
B) Employees are provided with opportunities for flexible arrangements
C) Employees are provided with better office facilities so they stay in the office longer
D) Employees can work on tasks they choose, as long as they are in the office
E) Employees who are wary of newer technologies
Q2) Steve works for a pharmaceutical company and he specializes in marketing and sales. He generally works from home. According to the text, what type of worker is Steve?
A) Telecommuter
B) Mobile device
C) Global worker
D) Vagabond worker
E) Contract worker
Q3) Why are teams using collaborative tools like groupware and wikis to coordinate their work rather than a communication tool like e-mail?
Q4) How have hiring practices been impacted by IT?
Q5) Explain how IS radically changed the paper maker's work at a paper mill.
Q6) List the challenges that a global, virtual team must overcome to be successful.
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Chapter 6: Information Systems and Business Transformation
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Sample Questions
Q1) When would an organization elect to use BPR over TQM?
A) When they want to make small, incremental changes
B) When they need to attain aggressive improvement goals
C) When they have time to refine their improvement goals
D) When there is not a need to make significant immediate changes
E) When they want the employees to have control over the changes
Q2) Explain issues companies have with one another when linking systems in order to participate in an integrated supply chain.
Matching
Q3) The major difference between an ERP and ERP II system is this feature.
A) Advances in software usability and flexibility
B) Information is made immediately available to external stakeholders using social and collaborative tools
C) Information is made available to all departments in the company
D) Advanced quering and reporting capabilities
E) Close integration with e-business technologies
Q4) A business uses __________to measure the critical success dimensions of a business process.
Q5) List one of the largest enterprise systems vendors as identified in this chapter.
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Chapter 7: Architecture and Infrastructure
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Sample Questions
Q1) An example of when a software-defined architecture is most appropriate:
A) A firm can't make the decision and wants software to do it
B) Resources need to be re-allocated dynamically depending on the situation or time of day
C) Sales are expected to be very high
D) Sales are expected to be very low
E) BYOD is discouraged in a firm
Q2) Hypercompetition implies that any architecture must be designed with maximum scalability and _____________ to ensure it can handle the imminent business changes.
A) modularity
B) speed
C) flexibility
D) sustainability
E) availability
Q3) Why would an organization use cloud computing for its IT infrastructure needs?
Q4) For Barclay's Bank, the enterprise architecture ensures the appropriate linkage between IT investment and business needs.
A)True
B)False
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) A hacker who buys credit card information from hackers receives a short-term guarantee in case the card is declined.
A)True
B)False
Q3) An "evil twin" in the context of computer security is:
A) A virus-laden attachment that looks just like a sincere attachment
B) A duplicate badge that allows a nasty person entry into a data center
C) Someone who looks just like the Chief Information Officer, but steals data
D) An operating system that is not genuine
E) A counterfeit wifi connection in a hotel or coffee shop that appears to be genuine
Q4) What is a challenge question?
Q5) What are the shortcomings of passwords?
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Chapter 9: The Business of Information Technology
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Sample Questions
Q1) There are three main ways to handle funding for IT, including chargeback to users, allocation of costs to users, and providing IT services from a corporate budget.
A)True
B)False
Q2) Two methods for communicating metrics are dashboards and _______.
Q3) The allocation method is the most equitable funding method used by many IT organizations.
A)True
B)False
Q4) In the early days of IT, the CIO would report to the ____ as IT was seen as a way to control costs. As technology has become more strategic and able to deliver a competitive advantage, CIOs now report directly to the ____.
A) CFO; CEO
B) CEO; CFO
C) CFO; COO
D) COO; CEO
E) CEO; CTO
Q5) What can a manager expect from the IT organization? Matching
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Chapter 10: Governance of the Information Systems Organization
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Sample Questions
Q1) A steering committee is geared only towards the highest level of the organization and reports directly to the board of directors or the CEO.
A)True B)False
Q2) The combinations of people to whom decision rights are allocated are classified by various IT governance ________.
Q3) This is a highly specific measurement used to indicate whether business process goals are being met.
Q4) Why is it recommended that the IT governance archetype for an organization's information security strategy be business monarch?
Q5) Define federalism as it pertains to organizational structures. How does it improve on the centralized model?
Q6) Detail the 3 stages of business continuity planning. Matching
Q7) This term is used to describe the increasingly powerful tools available to consumers that are impacting corporations.
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Q8) Explain the role the IT organization has in ensuring a company's Sarbanes-Oxley compliance.
Chapter 11: Information Systems Sourcing
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Sample Questions
Q1) Organizations choose to outsource IT activities for all of the following reasons EXCEPT:
A) To realize cost savings
B) To have access to specialists they do not have in-house
C) To create a core competency
D) To infuse cash into the company
E) To support capacity on demand
Q2) Kellwood, the American apparel maker, decided to consolidate and bring IT operations back in-house in order to reduce costs. Kellwood choose which of the following strategies?
A) Outsource
B) Backsource
C) Offshore
D) Captive center
E) Farshore
Q3) Compare and contrast cloud computing with offshore outsourcing.
Q4) If a company decides to outsource to a company in another country that is close in proximity as well as culturally, economically, and politically similar, they are using this type of outsourcing
Q5) This is the most traditional approach to sourcing.
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Chapter 12: Managing IT Projects
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Sample Questions
Q1) What are the three outside elements of the project triangle?
Q2) To maintain balance in a project with a fixed budget and a well-defined scope, a project team will require flexibility ________.
A) with the deadline.
B) in spending.
C) with project quality.
D) with assumed risks.
E) in achieving the goals of the business case.
Q3) This is the term used to describe Web apps that are created by combining existing applications, data, and infrastructure.
Q4) According to Brooks, adding extra personnel to a system project more often makes it later, not earlier.
A)True
B)False
Q5) Why does the addition of more people to a project not speed up the project efforts?
Q6) Small projects that are low in complexity and low in clarity are low in risk.
A)True
B)False
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Chapter 13: Business Intelligence Knowledge Management and Analytics
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Sample Questions
Q1) Knowledge is valuable information from the human mind while information is data with relevance and purpose
A)True
B)False
Q2) Tacit knowledge is easy to formalize.
A)True
B)False
Q3) All of the following are examples of socialization EXCEPT for:
A) Sharing war stories
B) Apprenticeships
C) Conferences
D) Non-structured activities, like an office party or lunch discussion
E) Project management
Q4) Data is more important than knowledge.
A)True
B)False
Q5) This is the process of combing through massive amounts of data to identify previously unknown relationships among data.
Q6) These are tools that analyze the impact social IT has on a business.
Q7) How can a company use social analytic tools to further their mission? Page 15
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Page 16
Chapter 14: Privacy and Ethical Considerations in Information Management
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Sample Questions
Q1) The Stakeholder theory requires managers to pursue projects in ways that are compatible with the well-being of society.
A)True
B)False
Q2) This term is used to define energy-efficient computing resources.
Q3) Green computing benefits _____ which is sometimes referred to as "People, Planet, Profit".
Q4) "Who owns information?" and "What are the just and fair prices for its exchange?" are part of this ethical issue:
A) Privacy
B) Accuracy
C) Ownership
D) Property
E) Accessibility
Q5) In today's digital word, individuals can control their privacy through ______, consent, and correction.
Q6) Provide an example of a company that has faced a dilemma reconciling their corporate policies within a country where it hopes to operate.
Page 17
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