CBS Digital Transformation & Technology Strategy 2 — Questions and Answers
Question 1: A business strategist evaluating AI adoption should FIRST consider which factor?
- The cost of AI hardware procurement
- Whether AI use cases align with specific business value drivers (Correct answer)
- The number of AI vendors in the marketplace
- Employee sentiment toward automation
Correct answer: Whether AI use cases align with specific business value drivers
Successful AI adoption starts with identifying use cases that deliver measurable business value, ensuring the investment is purposeful and tied to strategic outcomes.
Question 2: What does 'data governance' mean in the context of a digital transformation strategy?
- Restricting all data access to senior leadership only
- The policies, processes, and standards that ensure data quality, security, and appropriate use (Correct answer)
- Encrypting all company databases with proprietary algorithms
- Deleting outdated records to comply with privacy laws
Correct answer: The policies, processes, and standards that ensure data quality, security, and appropriate use
Data governance encompasses the rules, roles, and processes an organization uses to manage data assets responsibly, ensuring accuracy, security, and regulatory compliance.
Question 3: In a platform business model enabled by digital technology, value is PRIMARILY created through:
- Manufacturing proprietary products at scale
- Facilitating interactions between two or more interdependent user groups (Correct answer)
- Employing the largest workforce in the industry
- Owning the most physical distribution channels
Correct answer: Facilitating interactions between two or more interdependent user groups
Platform models like Amazon or Airbnb generate value by enabling transactions and interactions between producers and consumers, earning revenue through network effects rather than direct production.
Question 4: What is 'hyperautomation' as defined in enterprise digital strategy?
- Replacing all human employees with robots across the organization
- The combined use of AI, RPA, and other technologies to automate as many business processes as possible (Correct answer)
- Upgrading all company computers to the latest hardware
- Automating only back-office financial processes
Correct answer: The combined use of AI, RPA, and other technologies to automate as many business processes as possible
Hyperautomation is a strategy involving the orchestrated use of multiple technologies — including RPA, AI, ML, and process mining — to discover and automate as many processes as possible.
Question 5: Which metric BEST measures the business impact of a digital transformation initiative?
- Number of new software applications deployed
- Business value realized such as revenue growth, cost savings, or customer satisfaction improvement (Correct answer)
- Total IT budget spent on digital projects
- Number of employees trained on new digital tools
Correct answer: Business value realized such as revenue growth, cost savings, or customer satisfaction improvement
The true measure of digital transformation success is business value — improvements in revenue, efficiency, or customer experience — not just the technology deployed or budget spent.
Question 6: A 'build vs. buy vs. partner' decision in technology strategy refers to:
- Whether to construct new office buildings or rent space
- Choosing between developing technology in-house, purchasing solutions, or forming alliances (Correct answer)
- Deciding whether to hire employees or use contractors
- Selecting between domestic or international suppliers
Correct answer: Choosing between developing technology in-house, purchasing solutions, or forming alliances
The build-buy-partner framework helps organizations decide whether to develop custom technology, purchase off-the-shelf solutions, or leverage partner ecosystems based on strategic fit and cost.
Question 7: What role does change management play specifically in digital transformation?
- It replaces technical training programs for employees
- It ensures people, processes, and culture adapt alongside technology implementation (Correct answer)
- It focuses exclusively on updating company policies and procedures
- It manages IT vendor contract negotiations
Correct answer: It ensures people, processes, and culture adapt alongside technology implementation
Digital transformation frequently fails not due to technology, but because people and culture don't adapt; effective change management addresses adoption, resistance, and cultural alignment.
CBS Digital Transformation & Technology Strategy 2
A business strategist evaluating AI adoption should FIRST consider which factor?