Week 1 Quiz: Technology Laws of Business Disruption
Quiz, 4 questions
Question 1
1
point
1. Question 1
Your company is undergoing a major review of its use of digital technology. How would
Moore's Law be most likely to impact your review?
The processing power of computers doubles every year and a half.
The amount of data communicated through a single optical fiber doubles every nine months.
The amount of data stored per square centimeter of a hard drive will double every 13 months.
The cost economies of technology benefit companies rather than consumers.
Question 2
1
point
2. Question 2
Imagine you work for a large and established incumbent in the banking industry. How
might you most successfully compete in an increasingly stack-based industry?
Form an oligopoly with other competitors.
Consider dominating the bottom layer infrastructure, which depends on economies of scale.
Maintain established industry dominance of the entire value chain.
Look for ways to lower industry-wide increasing transactional costs.
Schlumberger-Private
,2. Question 2
Imagine you work for a company that is developing a flexible application that allows
users to make and track payments to non-profits and other small organizations. How
might you most successfully compete in an increasingly stack-based industry?
Look for ways to tighten links in the value chain.
Form an oligopoly with other competitors.
Look for ways to lower industry-wide increasing transactional costs.
Remain fragmented from other top layer companies in order to focus on innovation and agility.
Question 3
1
point
3. Question 3
Which of these best describe the experience of a company that produces content and
relies on consumers in a stack-based industry?
Content producers find it increasingly important to protect their local position against global players.
Profits are typically higher for producers than platform providers.
Consumers and producers need a platform on which they can find one another and interact.
Due to fragmentation in top layers, people prefer to be on smaller, separate networks.
3. Question 3
Which of these best describe the experience of an established platform provider in a
stack-based industry?
Schlumberger-Private
, Profits are typically higher for producers than platform providers.
Platform providers have almost no marginal costs.
The cost and effort of adding customers and producers to the system remains at the same,
predictable level throughout the development and lifetime of the system.
Network effects are very weak in this stack.
Question 4
1
point
4. Question 4
Your company's board of directors is questioning your IT department's increased budget
while noting that the company has failed to see increased productivity. Which of these
theoretical explanations is most likely to help the board understand this paradox?
The process of training and reaching full productivity on new tools is easier in the digital age.
Risk management has gotten more difficult with the addition of digital technology.
The company may be netting improvements in other areas, such as more efficiency, stronger risk
management, and more innovative and value-adding products.
The decreasing complexity of business environments is neutralizing the positive impact of
technology on productivity measures.
4. Question 4
Schlumberger-Private
Quiz, 4 questions
Question 1
1
point
1. Question 1
Your company is undergoing a major review of its use of digital technology. How would
Moore's Law be most likely to impact your review?
The processing power of computers doubles every year and a half.
The amount of data communicated through a single optical fiber doubles every nine months.
The amount of data stored per square centimeter of a hard drive will double every 13 months.
The cost economies of technology benefit companies rather than consumers.
Question 2
1
point
2. Question 2
Imagine you work for a large and established incumbent in the banking industry. How
might you most successfully compete in an increasingly stack-based industry?
Form an oligopoly with other competitors.
Consider dominating the bottom layer infrastructure, which depends on economies of scale.
Maintain established industry dominance of the entire value chain.
Look for ways to lower industry-wide increasing transactional costs.
Schlumberger-Private
,2. Question 2
Imagine you work for a company that is developing a flexible application that allows
users to make and track payments to non-profits and other small organizations. How
might you most successfully compete in an increasingly stack-based industry?
Look for ways to tighten links in the value chain.
Form an oligopoly with other competitors.
Look for ways to lower industry-wide increasing transactional costs.
Remain fragmented from other top layer companies in order to focus on innovation and agility.
Question 3
1
point
3. Question 3
Which of these best describe the experience of a company that produces content and
relies on consumers in a stack-based industry?
Content producers find it increasingly important to protect their local position against global players.
Profits are typically higher for producers than platform providers.
Consumers and producers need a platform on which they can find one another and interact.
Due to fragmentation in top layers, people prefer to be on smaller, separate networks.
3. Question 3
Which of these best describe the experience of an established platform provider in a
stack-based industry?
Schlumberger-Private
, Profits are typically higher for producers than platform providers.
Platform providers have almost no marginal costs.
The cost and effort of adding customers and producers to the system remains at the same,
predictable level throughout the development and lifetime of the system.
Network effects are very weak in this stack.
Question 4
1
point
4. Question 4
Your company's board of directors is questioning your IT department's increased budget
while noting that the company has failed to see increased productivity. Which of these
theoretical explanations is most likely to help the board understand this paradox?
The process of training and reaching full productivity on new tools is easier in the digital age.
Risk management has gotten more difficult with the addition of digital technology.
The company may be netting improvements in other areas, such as more efficiency, stronger risk
management, and more innovative and value-adding products.
The decreasing complexity of business environments is neutralizing the positive impact of
technology on productivity measures.
4. Question 4
Schlumberger-Private
