Digital Transformation & Technology Strategy Flashcards

Which framework is most commonly used to assess an organization's digital maturity level?

Answer: Digital Capability Model (DCM)

The Digital Capability Model (DCM) is specifically designed to evaluate an organization's readiness and maturity across digital dimensions such as strategy, culture, and technology.

A company wants to shift from on-premise IT infrastructure to cloud-based services. What strategic benefit is MOST directly achieved?

Answer: Greater scalability and cost flexibility

Cloud migration enables organizations to scale resources up or down on demand and shift capital expenditure to operational expenditure, improving cost flexibility.

In digital transformation, what does 'API-first strategy' mean?

Answer: Designing software so that APIs are the primary interface for all system interactions

An API-first strategy means designing and building APIs before other components so that systems can be modular, interoperable, and easily integrated with partners and internal services.

Which of the following BEST describes the concept of 'digital disruption' in a strategic context?

Answer: The introduction of technology-driven innovations that fundamentally alter industry structures

Digital disruption refers to technology-enabled innovations (e.g., streaming services, ride-sharing) that reshape entire industries and render traditional business models obsolete.

What is the PRIMARY purpose of a digital roadmap in a transformation strategy?

Answer: To sequence and prioritize digital initiatives aligned with business goals

A digital roadmap provides a strategic plan that prioritizes and sequences technology investments and initiatives to achieve defined business outcomes over time.

When developing a technology strategy, which approach ensures alignment between IT capabilities and business objectives?

Answer: Business-IT alignment through joint governance and shared KPIs

Business-IT alignment through shared governance structures and common KPIs ensures that technology investments directly support and enable strategic business objectives.

Which concept refers to the incremental build-up of outdated technology systems that slow digital transformation efforts?

Answer: Technical debt

Technical debt refers to the accumulated cost of shortcuts and outdated systems that must eventually be refactored or replaced, creating drag on an organization's ability to innovate.