CBS Digital Transformation & Technology Strategy 1 — Questions and Answers
Question 1: Which framework is most commonly used to assess an organization's digital maturity level?
- Balanced Scorecard
- Digital Capability Model (DCM) (Correct answer)
- SWOT Analysis
- Porter's Five Forces
Correct 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.
Question 2: A company wants to shift from on-premise IT infrastructure to cloud-based services. What strategic benefit is MOST directly achieved?
- Increased physical security of data centers
- Greater scalability and cost flexibility (Correct answer)
- Elimination of all cybersecurity risks
- Full ownership of technology assets
Correct 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.
Question 3: In digital transformation, what does 'API-first strategy' mean?
- Prioritizing application security audits before deployment
- Designing software so that APIs are the primary interface for all system interactions (Correct answer)
- Automating all processes using artificial intelligence
- Acquiring platforms that already have existing APIs
Correct 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.
Question 4: Which of the following BEST describes the concept of 'digital disruption' in a strategic context?
- Temporary outages caused by cyberattacks on digital platforms
- The introduction of technology-driven innovations that fundamentally alter industry structures (Correct answer)
- Switching from analog to digital data storage formats
- Increased regulation of digital commerce by governments
Correct 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.
Question 5: What is the PRIMARY purpose of a digital roadmap in a transformation strategy?
- To document current IT infrastructure inventory
- To sequence and prioritize digital initiatives aligned with business goals (Correct answer)
- To catalog all software licenses owned by the company
- To outline the company's social media content calendar
Correct 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.
Question 6: When developing a technology strategy, which approach ensures alignment between IT capabilities and business objectives?
- Technology-led strategy where IT teams decide all priorities
- Business-IT alignment through joint governance and shared KPIs (Correct answer)
- Outsourcing all IT decisions to third-party vendors
- Adopting the latest technologies regardless of business needs
Correct 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.
Question 7: Which concept refers to the incremental build-up of outdated technology systems that slow digital transformation efforts?
- Digital fatigue
- Technical debt (Correct answer)
- Legacy liability
- IT bottleneck
Correct 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.
CBS Digital Transformation & Technology Strategy 1
Which framework is most commonly used to assess an organization's digital maturity level?