Digital Technologies

Question 1

What is Digital Transformation?

Answer 1

The major shift in business and operations using digital tech to improve processes, create new value, and adapt to changing envrionments

Example: Netflix shifted from DVD rental to streaming - a full digital transformation

Question 2

What are Digital Capabilities?

Answer 2

Skills and tech infrastructure that allow a company to adapt and compete digitally

• sensing and interpreting disruption
• data driven decision-making
• partnering in ecosystems
• experimenting quickly

Exam tip: look out for scenario MCQs testing how a firm can stay competitive in the digital age

Question 3

What is Cloud Computing?

Answer 3

Accessing computing resources (e.g. servers / storage) on-demand over the internet

Benefits:
- cost effective
- scalable
- flexible access anywhere

Risks:
- loss of control
- data security breaches
- cloud outages

Example: Google Drive or AWS

Question 4

What is Big Data?

Answer 4

Massive, complex datasets analysed to gain business insights

1. Volume [amount]
2. Velocity [speed]
3. Variety [types e.g. video, text]
4. Veracity [trustworthiness]

Question 5

What is Big Data Analytics?

Answer 5

Using big data to find patterns, make decisions, and improve performance

Uses:
- targeted marketing
- fraud detection
- forecasting demand

Risks:
- data quality issues
- cost of analytics systems
- privacy/legal concerns

Example: Amazon recommending products based on your browsing

Question 6

What is the Internet of Things [IoT]?

Answer 6

Physical devices connected via internet to collect & exchange data

Benefits:
- real time data
- predictive maintenance
- better customer insights

Example: Smart fridges / industrial sensors in factories

Question 7

What is Process Automation [RPA]?

Answer 7

Use of software ‘robots’ to handle repetitive business tasks

Benefits:
- reduces costs & errors
- speeds up processes
- frees up staff for value-adding work

Exam tip: Look for ‘structured, rule-based’ tasks in MCQs - the answer is usually RPA

Question 8

What is Machine Learning?

Answer 8

A branch of AI where algorithms learn from data without being explicitly programmed

Question 8

What is Artificial Intelligence [AI]?

Answer 8

AI mimics human intelligence to reason, learn, and solve problems

Benefits:
- quick & consistent decisions
- pattern recognition

Limitations:
- only as good as its training data
- bias risk
- lack of flexibility

Question 9

What is Mobile Technology?

Answer 9

Portable tech [smartphones / tablets] that enables communication and transactions anytime, anywhere

Impact:
- on demand consumption
- easier customer engagement

Question 10

What is 3D Printing?

Answer 10

Additive manufacturing - building objects layer by layer from digital designs

Benefits:
- customisation
- reduced inventory

Issues:
- product regulation
- IP protection

Question 11

What is Data Visualisation?

Answer 11

Presenting complex data visually [charts / graphs] to make insights easier to understand

Benefits:
- quicker decision-making
- easier pattern recognition

Question 12

What is Blockchain?

Answer 12

A decentralised, secure digital ledger of transactions

Key features:
- shared records
- transparent
- tamper proof [still vulnerable to cyberattacks]

Question 13

What are the types of digital business model strategies?

Answer 13

1. Build - inhouse development
2. Buy - acquire existing digital tech
3. Partner - collaborate with a tech provider
4. Invest - in digital startups
5. Incubate - grow your own internal start-ups

Question 14

What are Digital Operating Models?

Answer 14

Structures for running businesses that maximise digital value

• Customer centric: designed around user needs and preference
• Data powered: relies heavily on collecting and analysing data to drive decisions
• Asset light: owns fewer physical assets; focuses on digital platforms
• Open & Liquid: shares data and works in ecosystems; adaptable and collaborative

Question 15

What is Epicentre Method? [Digital Business Models]

Answer 15

A framework to design business models by choosing a focal point

• Resource driven: based on using unique capabilities
• Offer driven: innovation starts with a new product/service
• Customer driven: model is shaped by user preference
• Finance driven: innovation starts with new revenue models

Question 16

What are the biggest risks of digital tech adoption?

Answer 16

• Cybersecurity threats
• Skills shortages
• Data quality issues
• Customer privacy breaches