CBS Digital Transformation & Technology Strategy 3

Question 1

Which strategic concept describes using customer data and analytics to personalize products, services, and interactions at scale?

Accepted Answer

Mass customization through digital intelligence

Answer

Mass customization through digital intelligence uses data analytics and automation to deliver personalized experiences to large numbers of customers simultaneously, a key competitive advantage.

Question 2

What is the MAIN strategic risk of pursuing a 'digital-first' customer engagement model?

Accepted Answer

Digital exclusion of customer segments with limited technology access

Answer

A digital-first approach may alienate customer segments — such as elderly or low-income populations — who have limited internet access or digital literacy, creating service gaps and reputational risk.

Question 3

In technology strategy, what does 'vendor lock-in' refer to?

Accepted Answer

Dependency on a single supplier's technology, making it costly or difficult to switch

Answer

Vendor lock-in occurs when switching costs — due to proprietary formats, integrations, or data portability issues — make it difficult for an organization to change technology suppliers.

Question 4

Which approach BEST supports building a culture of innovation in a digitally transforming organization?

Accepted Answer

Creating psychological safety where employees can experiment, fail fast, and iterate

Answer

Innovation flourishes when employees feel safe to experiment without fear of punishment for failure; psychological safety enables rapid iteration and the discovery of breakthrough solutions.

Question 5

A strategist recommends adopting an 'ecosystem strategy' for digital growth. This PRIMARILY means:

Accepted Answer

Building or joining a network of partners, platforms, and complementary services to co-create value

Answer

An ecosystem strategy involves orchestrating or participating in a network of partners and platforms that collectively deliver more value than any single organization could alone, leveraging network effects.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS Digital Transformation & Technology Strategy 3