Test Bank !!
Chapter!!1:!!Digital!!Transformation!!Disrupts!!Companies,!!Competition,!!and! ! Care
ers!!Locally!!and!!Globally
Multiple!!Choice
1. In!!the!!early!!stages!!of!!a!!startup!!like!!Uber,!!valuation is based heavily on the company’s L L L L L L
.
a. technology
b. present value L
c. growth potential L
d. assets
Answer: C L L
Difficulty: Medium L
Section Reference: Opening Case
L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
2. is an easy-to-read, often single-page, real-time user interface, showing a graphical
L L L L L L L L L L L
presentation of the current status and historical trends of an organization’s key performance
L L L L L L L L L L L L L
indicators to enable instantaneous and informed decisions to be made.
L L L L L L L L L
a. Predictions
b. Dashboards
c. Digital models L
d. Real-time reports L
Answer: B L L
Difficulty: Easy L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Technology L
1
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
L L L L L L L L L L
Web retailers, and government agencies is how to design their digital business models in
L L L L L L L L L L L L L L
order to do all of the following, except:
L L L L L L L
a. Deliver an incredible customer experience
L L L L
b. Improve profitability L
c. Implement cloud computing L L
d. Increase market share L L
Answer: C L L
Difficulty: Medium L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Analytic skills
L L
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
L L L L L L L L L L L L L L L
, which in turn increases revenue.
L L L L L
a. mobile apps and business transactions
L L L L
b. IoT capabilities and KPIs
L L L
c. business model and marketing efforts L L L L
d. customer experience and loyalty L L L
Answer: D L L
Difficulty: Hard L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
5. Market conditions and technological innovations that are propelling the explosion of on-
L L L L L L L L L L L L
demand and shared services include all the following except:
L L L L L L L L
a. smartphone-connected consumers L
b. private data centers L L
c. simple and secure purchasing flows L L L L
d. location-based services L
Answer: B L L
Difficulty: Medium L
Section Reference: Doing Business in the On-Demand and Sharing Economy
L L L L L L L L L
2
,Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
6. is a company’s core strategy for making a profit. It defines the products and/or
L L L L L L L L L L L L L L
services it will sell, its target market, costs associated with doing business, and the
L L L L L L L L L L L L L L
company’s ongoing plans for achieving its goals.
L L L L L L
a. Business model L
b. Website
c. Data analytics L
d. Technology stack L
Answer: A L L
Difficulty: Easy L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable L L L L L L L L L
real-time data . L L
a. over short distancesL L
b. via radio signals
L L
c. using cloud services L L
d. via databases
L
Answer: B L L
Difficulty: Hard L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
8. An estimated
L L % of big data are unstructured.
L L L L L
a. 25 to 30L L
b. 33 to 66L L
c. 50 to 75L L
d. 80 to 90L L
3
, Answer: D L L
Difficulty: Medium L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
9. All of the following are examples of the influence of social, mobile, analytics, and cloud
L L L L L L L L L L L L L L L
technologies except . L L
a. Connections and feedback via social networks have changed the balance of L L L L L L L L L L L
influence.
b. Customers expect to use location-aware services, apps, alerts, social networks,
L L L L L L L L L L
and the latest digital capabilities at work and outside work.
L L L L L L L L L
c. Customer loyalty and revenue growth depend on a business’ ability to offer
L L L L L L L L L L L L
unique customer experiences that wow customers more than competitors can.
L L L L L L L L L
d. Consumers are less likely to trust tweets from ordinary people than L L L L L L L L L L L
recommendations made by celebrity endorsements. L L L L
Answer: D L L
Difficulty: Hard L
Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
10. Which of the following guide the process of planning, acquiring, building, modifying, and
L L L L L L L L L L L L L L
interfacing with deployed IT resources in a single department within an organization?
L L L L L L L L L L L
a. Legacy systems L
b. IT architectures
L
c. Data analytics L
d. Technology stack L
Answer: B L L
Difficulty: Hard L
Section Reference: Introduction
L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
11. Which if the following is not an example of how the Internet of Things is being used by
L L L L L L L L L L L L L L L L L L
4
Chapter!!1:!!Digital!!Transformation!!Disrupts!!Companies,!!Competition,!!and! ! Care
ers!!Locally!!and!!Globally
Multiple!!Choice
1. In!!the!!early!!stages!!of!!a!!startup!!like!!Uber,!!valuation is based heavily on the company’s L L L L L L
.
a. technology
b. present value L
c. growth potential L
d. assets
Answer: C L L
Difficulty: Medium L
Section Reference: Opening Case
L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
2. is an easy-to-read, often single-page, real-time user interface, showing a graphical
L L L L L L L L L L L
presentation of the current status and historical trends of an organization’s key performance
L L L L L L L L L L L L L
indicators to enable instantaneous and informed decisions to be made.
L L L L L L L L L
a. Predictions
b. Dashboards
c. Digital models L
d. Real-time reports L
Answer: B L L
Difficulty: Easy L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Technology L
1
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
L L L L L L L L L L
Web retailers, and government agencies is how to design their digital business models in
L L L L L L L L L L L L L L
order to do all of the following, except:
L L L L L L L
a. Deliver an incredible customer experience
L L L L
b. Improve profitability L
c. Implement cloud computing L L
d. Increase market share L L
Answer: C L L
Difficulty: Medium L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Analytic skills
L L
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
L L L L L L L L L L L L L L L
, which in turn increases revenue.
L L L L L
a. mobile apps and business transactions
L L L L
b. IoT capabilities and KPIs
L L L
c. business model and marketing efforts L L L L
d. customer experience and loyalty L L L
Answer: D L L
Difficulty: Hard L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
5. Market conditions and technological innovations that are propelling the explosion of on-
L L L L L L L L L L L L
demand and shared services include all the following except:
L L L L L L L L
a. smartphone-connected consumers L
b. private data centers L L
c. simple and secure purchasing flows L L L L
d. location-based services L
Answer: B L L
Difficulty: Medium L
Section Reference: Doing Business in the On-Demand and Sharing Economy
L L L L L L L L L
2
,Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
6. is a company’s core strategy for making a profit. It defines the products and/or
L L L L L L L L L L L L L L
services it will sell, its target market, costs associated with doing business, and the
L L L L L L L L L L L L L L
company’s ongoing plans for achieving its goals.
L L L L L L
a. Business model L
b. Website
c. Data analytics L
d. Technology stack L
Answer: A L L
Difficulty: Easy L
Section Reference: Disruptive Digital Business Models
L L L L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable L L L L L L L L L
real-time data . L L
a. over short distancesL L
b. via radio signals
L L
c. using cloud services L L
d. via databases
L
Answer: B L L
Difficulty: Hard L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
8. An estimated
L L % of big data are unstructured.
L L L L L
a. 25 to 30L L
b. 33 to 66L L
c. 50 to 75L L
d. 80 to 90L L
3
, Answer: D L L
Difficulty: Medium L
Section Reference: Technology Mega Trends
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
9. All of the following are examples of the influence of social, mobile, analytics, and cloud
L L L L L L L L L L L L L L L
technologies except . L L
a. Connections and feedback via social networks have changed the balance of L L L L L L L L L L L
influence.
b. Customers expect to use location-aware services, apps, alerts, social networks,
L L L L L L L L L L
and the latest digital capabilities at work and outside work.
L L L L L L L L L
c. Customer loyalty and revenue growth depend on a business’ ability to offer
L L L L L L L L L L L L
unique customer experiences that wow customers more than competitors can.
L L L L L L L L L
d. Consumers are less likely to trust tweets from ordinary people than L L L L L L L L L L L
recommendations made by celebrity endorsements. L L L L
Answer: D L L
Difficulty: Hard L
Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model
L L L L
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
L L L L L L L L L L L L L L
megatrends that are driving organizational performance, growth, and sustainability and how
L L L L L L L L L L L
COVID-19 is accelerating digital transformation.
L L L L
AACSB: Reflective thinking skills
L L L
10. Which of the following guide the process of planning, acquiring, building, modifying, and
L L L L L L L L L L L L L L
interfacing with deployed IT resources in a single department within an organization?
L L L L L L L L L L L
a. Legacy systems L
b. IT architectures
L
c. Data analytics L
d. Technology stack L
Answer: B L L
Difficulty: Hard L
Section Reference: Introduction
L L
Learning Objective: Define the differences between the on-demand and sharing economies and the
L L L L L L L L L L L L L
six business objectives IT should focus on to enhance organizational performance, growth, and
L L L L L L L L L L L L L
sustainability.
AACSB: Technology L
11. Which if the following is not an example of how the Internet of Things is being used by
L L L L L L L L L L L L L L L L L L
4
