CGM CGM Technology & Innovation Management 1 — Questions and Answers
Question 1: A general manager overseeing a digital transformation initiative should FIRST:
- Purchase the latest technology available
- Assess organizational readiness and align technology with business goals (Correct answer)
- Outsource all IT functions immediately
- Eliminate all legacy systems at once
Correct answer: Assess organizational readiness and align technology with business goals
Digital transformation must start with an assessment of readiness and a clear alignment between technology investments and strategic objectives.
Question 2: Which metric BEST measures the return on a technology investment (ROI) for a new software system?
- Number of employees trained on the system
- Net benefits minus costs divided by total costs (Correct answer)
- The vendor's customer satisfaction score
- Number of features included in the software
Correct answer: Net benefits minus costs divided by total costs
ROI is calculated as net benefits minus costs divided by total costs, expressed as a percentage.
Question 3: In technology project management, a 'minimum viable product' (MVP) is used to:
- Deliver a fully finished product on day one
- Test core functionality with real users before full development (Correct answer)
- Reduce the total number of product features permanently
- Avoid gathering user feedback during development
Correct answer: Test core functionality with real users before full development
An MVP allows teams to validate core assumptions with real users at lower cost before investing in full product development.
Question 4: What does 'cloud computing' allow organizations to do that traditional on-premise infrastructure does not?
- Eliminate the need for internet connectivity
- Scale computing resources up or down on demand (Correct answer)
- Own all hardware and software outright
- Reduce the need for cybersecurity measures
Correct answer: Scale computing resources up or down on demand
Cloud computing provides elastic scalability, allowing organizations to adjust resource usage based on real-time demand.
Question 5: Which of the following is an example of disruptive innovation in a traditional industry?
- A taxi company painting its cars a new color
- A ride-sharing app replacing traditional taxi dispatch systems (Correct answer)
- A restaurant expanding its seating capacity
- A retailer offering a loyalty card program
Correct answer: A ride-sharing app replacing traditional taxi dispatch systems
Ride-sharing apps disrupted the taxi industry by introducing a technology-enabled business model that redefined how transportation services are delivered.
Question 6: A general manager's role in fostering innovation BEST includes:
- Discouraging new ideas that deviate from current strategy
- Creating a psychological safety environment where experimentation is encouraged (Correct answer)
- Limiting innovation to the R&D department only
- Requiring all new ideas to be pre-approved by senior leadership before testing
Correct answer: Creating a psychological safety environment where experimentation is encouraged
Psychological safety—where employees feel safe to propose and test new ideas without fear of failure—is foundational to building an innovative culture.
CGM CGM Technology & Innovation Management 1
A general manager overseeing a digital transformation initiative should FIRST: