Week 1: RPAs, Strategy for a Digital World, and Business Model Flashcards
(25 cards)
According “Strategy for a digital world”, what is the primary way digital technology is changing traditional differentiation strategies for companies?
A) By eliminating the need for differentiation entirely
B) By making differentiation less important than cost leadership
C) By forcing companies to focus exclusively on digital marketing
D) By shifting differentiation sources from traditional areas to digital technology-enabled products, services, and business models
D
This reflects McKinsey’s key point that companies must reimagine their strategies by leveraging digital technologies to innovate and differentiate, such as through digital platforms, software, and connected ecosystems.
What does McKinsey suggest regarding a company’s approach to cloud technology investment?
A) All workloads should be migrated to the cloud immediately to reduce costs
B) Cloud technology should be avoided due to security concerns
C) Cloud technology should be deployed thoughtfully to enable innovation and differentiation
D) Only IT departments should make decisions about cloud investment
C
McKinsey emphasizes that cloud investments should be strategic—not just about cost savings, but about enabling faster innovation, scalability, and the creation of differentiated digital offerings.
In the Business Model Canvas, what is the relationship between “Customer Segments” and “Value Propositions”?
A) For each customer segment, there should be a specific value proposition
B) All customer segments should receive identical value propositions
C) Value propositions determine which customer segments to target
D) There is no direct relationship between these building blocks
A
The Customer Segments block defines the different groups of people or organizations a business aims to serve.
The Value Propositions block outlines the bundle of products and services that create value for those specific segments.
The model explicitly states that each segment should have a tailored value proposition — otherwise, the offering may not meet the segment’s needs effectively.
Which type of benefit from RPA implementation is typically the most difficult to quantify in a business case?
A) Direct labor cost savings
B) Software licensing cost reductions
C) Culture of innovation and employee satisfaction
D) Time savings from automated tasks
C
According to the Forrester study and the AFM 241 tutorial slides, benefits like direct labor cost savings, software licensing cost reductions, and time savings from automated tasks are quantifiable — they can be measured in dollar amounts or hours saved (e.g., 200 hours/year for high-impact roles).
However, culture of innovation and employee satisfaction is categorized under non-quantifiable benefits in the presentation and the Forrester report:
“Improved job satisfaction through more engaging work,” “Increased organizational agility,” and “Employees could solve problems independently…”
These are important outcomes, but much harder to translate into a business case with clear numbers, making them the most difficult to quantify.
When developing a business case for RPA, which of the following approaches most accurately represents how organizations should assess training costs?
A) Training is a one-time cost that only occurs during initial implementation
B) Training should include both initial and ongoing costs for new users and use cases
C) Training costs are typically insignificant and can be excluded from the business case
D) Training should be calculated based only on IT department personnel
B
According to the Forrester study and your tutorial slides, training costs are not just a one-time expense. They include:
Initial training during implementation to get employees up to speed.
Ongoing training for new “citizen developers” and additional use cases over time.
Annual costs for staff responsible for supporting and managing RPA adoption (e.g., $877,500 annually for 5 FTEs over 3 years)
This reflects a continuous investment in capability-building, not just a one-off cost.
What is the difference between innovation and technology?
Technology is the tool; innovation is how it’s used to create value.
What does it mean to ‘remix’ in innovation?
Applying ideas from one domain into another to solve problems creatively.
What did the Goldcorp Challenge demonstrate about innovation?
Crowdsourcing can lead to major breakthroughs; $6B in gold found by opening up data.
What are the 3 pillars of digital strategy per McKinsey?
Differentiation, productivity, and capital efficiency.
How does Tesla differentiate in the auto industry?
Through software, data, and over-the-air updates rather than engine performance.
What is Nike’s strategy with the Run Club app?
Gamification, data tracking, and personalized recommendations to engage users.
How did Cineplex benefit from RPA?
Saved 30,000 hours by automating repetitive tasks.
Why did Microsoft acquire Softomotive?
To expand their RPA capabilities and boost productivity through automation.
Why do companies use cloud platforms like AWS?
Cloud allows scalable, cost-effective computing without upfront infrastructure.
What does good capital spending require?
Profitable growth potential and demand to justify the investment.
Why must non-tech leaders understand tech?
To make strategic decisions and align tech with business goals.
What does the Business Model Canvas help businesses do?
Visualize how they create, deliver, and capture value.
What is one key feature of Apple’s value proposition?
User-friendly design and seamless ecosystem integration.
How does Apple capture value from the App Store?
By charging a 30% commission on app sales and subscriptions.
What problems did Power Automate solve?
Poor integration, high cost, complex UI, limited functionality, and too much manual work.
Who benefited from RPA and how?
End-users saved 20–200 hours/year; developers saved time due to easy integration and low-code.
How were RPA use cases categorized?
High-impact (200+ hrs saved) vs. Medium-impact (20 hrs saved) use cases.
What financial benefits came from RPA implementation?
$9.5M in legacy system savings, reduced maintenance, and licensing cost.
What non-quantifiable benefits came from RPA?
Increased innovation, better compliance, employee empowerment and job satisfaction.
