1. An organization cannot afford the loss that comes from taking risks that go wrong, but they suffer big losses because they often take these risks anyway.
What combination of risk capacity and risk appetite describes this situation?
A. Low risk capacity, high risk appetite
B. High risk capacity, high risk appetite
C. Low risk capacity, low risk appetite
D. High risk capacity, low risk appetite
Answer: A
2. An organization is aiming to use an innovative social media platform to improve engagement with young consumers.
What should the organization’s strategy focus on?
A. Ecosystem disruption supported by operational excellence
B. Market relevance supported by ecosystem disruption
C. Customer and market relevance supported by operational excellence
D. Operational excellence supported by customer and market relevance
Answer: C
3. An organization is continually changing to maintain customer and market relevance.
The changes involve adopting new technologies, expanding to new markets, and adjusting the service portfolio.
Which is the BEST approach to ensure that suppliers and partners support these
changes?
A. Technology replacement modernization
B. Uninterrupted delivery
C. Sourcing strategy
D. organizational resilience
Answer: C
4. An organization identified activities that are performed by many different people who
follow detailed procedures to ensure they carry out all the steps. The procedures are
very clear, and if staff follow the exact steps in the procedures then the results are
always good, but this takes a lot of time.
What is the BEST way to improve efficiency?
A. Simple automation
B. Complex automation
C. Intelligent automation
D. Technology replacement modernization
Answer: A
5. An insurance company generates sales from its website, from agents in a call centre,
and from third parties working for other financial service organizations. The product is very popular and users are generally satisfied. The organization regularly collects and analyses data about service consumers, and this shows that users have very different levels of satisfaction, depending on how the product was sold.
What should the insurance company consider NEX T to help resolve the situation?
A. Market relevance
B. omnichannel delivery
C. Customer analytics
D. Customer feedback
Answer: B
6. An organization is entering a new market with a range of services. Similar services
already exist in the market, and the demand is high.
Which is the BEST approach to pricing and charging for the services in the new
market?
A. Adopt a short-term increase in the pricing and margins
B. Adjust competitive prices for the market and competition
C. Ensure service costs are clear to the consumers to help regulate prices
D. Establish long-term contracts with fixed prices to help secure future income
Answer: B
7. Which is the BEST approach to defining a vision and a strategy in an organization with
multiple specialized divisions?
A. Vision and strategy should be defined by the executive leader and communicated to the
divisions
B. Vision and strategy should be defined by the governing body and communicated to the divisions’ leaders
C. Vision and strategy should be defined in collaboration with the leaders of the organization and division
D. Vision and strategy should be defined in collaboration with the enterprise architects and Consultants
Answer: C
8. The leaders of an organization are defining an approach to optimize its value streams
and processes to create a more efficient way of working.
What should this approach focus on?
A. Organizational agility
B. Organizational resilience
C. Elimination of waste
D. Uninterrupted delivery
Answer: C
9. An organization is planning a large scale digital transformation programme to
significantly improve its digital capabilities.
Which is the BEST approach for defining and implementing this programme?
A. The Chief Digital Officer should define and implement the programme
B. A digital task force should be appointed to define and implement the programme
C. Individual initiatives should be defined and implemented separately
D. The organization’s governing body should define and implement the programme
Answer: B
10. A service provider is developing an operating model to support a new social media
service that enables its business strategy.
The service provider has included the following in the operating model:
a definition of how suppliers will be involved in the delivery of the service
a description of the main performance measures required.
Which additional element must be included to ensure that the essential themes of the
operating model are covered?
A. A list of vendors who will provide the components that form the social media service
B. An inventory of the main technology components that will be located at the head office data centre
C. Definitions of the service management toolsets needed to support the service
D. Descriptions of the series of steps for the work that is required to create and support the service
Answer: D
11. Which is a leadership skill that relates to having a digital mindset?
A. Looking at the potential of new tools to meet customer needs
B. Sharing success stories frequently to motivate others
C. Building a rapport with regulators and government officials
D. Measuring the success of strategic digital initiatives
Answer: A
12. Which statement is CORRECT about risk management in digital organizations?
A. All the organization’s stakeholders should contribute to risk assessment
B. All risk management efforts should focus on assets owned by the organization
C. All risk management should start by assessing the current state
D. All risks could cause harm to the organization if they are not managed
Answer: A
13. An external service provider is developing a new strategy for delivering social media
services. The success of new services depends on high levels of customer satisfaction
achieved through the highest level of support to users.
As part of an internal analysis, which factor is MOST important to consider to ensure
that the service provider has the capability to provide the service?
A. Employment laws affecting service provider staff
B. A mixed demographic of users with varied levels of IT skills
C. Knowledge and understanding of potential innovative technology
D. Well-trained service desk staff with a broad set of skills
Answer: D
14. An organization has identified an opportunity to provide increased value to the
healthcare user market. It wants to provide online access to healthcare services
before its competition.
Which is the BEST value proposition for the healthcare user market to include in the
strategy?
A. The organization will be able to utilize innovative technology to develop software apps in faster times to market
B. Shareholders will receive improved dividends from increased profits without sianificant investment
C. Consumers will be able to access advice and request prescriptions quicklv at all times without attending a medical facility
D. Healthcare professionals will be able to promote the services to healthcare users and
reduce costs
Answer: C
15. Which term includes the use of hardware and software to store, retrieve, transmit, and
manipulate data?
A. Digital strategy
B. Digital technology
C. Digital transformation
D. Digital business
Answer: B
16. Which is NOT an essential consideration when developing a digital strategy?
A. Understanding which systems will form the digital technology programme
B. Understanding emerging technologies that could affect the organization
C. Understanding how to identify potential opportunities
D. Understanding the risks involved with digital opportunities
Answer: A
17. An organization has identified three initiatives to support a digital transformation
strategy:
1. Upgrading technology
2. Adopting new software development approaches
3. Changing the structure of teams and departments
The project management office has been tasked with identifying and developing the
business case (s) needed to review these initiatives.
Which is the BEST approach to take when creating the business case(s)?
A. Create one single business case that provides justification for all three initiatives
B. Create one business case for the technology upgrade, and another for the remaining initiatives
C. Create three different business cases providing justification for each initiative
D. Create one business case for the organizational change, and another for the remaining Initiatives
Answer: C
18. Which parallel operating model is based on using the income generated by an existing
business model to fund a new digital business model until it can fund itself?
A. Cannibalism
B. Erosion
C. Concurrence
D. Synergism
Answer: D
19. Which statement about metrics is CORRECT?
A. Leading metrics are difficult to measure, but easy to influence
B. Lagging metrics are easy to measure and to influence
C. Leading metrics report what has been achieved
D. Lagging metrics predict what is likely to happen in the future
Answer: A
20. An organization provides services to businesses and private customers. It is now
reviewing its strategy and needs to ensure that the strategy sufficiently addresses the
external perspective.
Which question BEST supports this objective?
A. How can we reduce costs?
B. How can we improve operational efficiencies?
C. How do we get to where we want to be?
D. What markets do we serve?
Answer: D
21. An organization’s strategy requires them to continually maintain market relevance.
Which approach is the Mo ST relevant to achieve this objective?
A. Customer 360
B. Digital transformation
C. Employee 360
D. PESTLE analysis
Answer: A
22. Which is the BEST description of the relationship between organization’s products,
services, and resources?
A. An organization’s services are based on the organization’s products
B. An organization’s products are required for the execution of an activity
C. An organization’s resources are combinations of the organization’s products
D. An organization’s resources are combinations of the organization’s services
Answer: A
23. A software development organization has a very traditional way of working that no
longer meets its market needs. The organization currentty manages all budgets via
their development and operations business units. The organization wants to change
so that it can develop and deploy solutions rapidly in response to constantly changing
market needs.
How should the organization change its funding model to support this?
A. Switch to funding teams and value streams
B. Switch to funding programmes and projects
C. Provide additional funding to development and operations
D. provide additional funding via the research and development budget
Answer: A
24. Why might an organization choose to implement an innovation even though it does not
meet its minimum requirement for ‘return on investment (Rol)?
A. The innovation is low cost
B. The innovation is essential for the organization to survive
C. The innovation will deliver significant benefit for the organization
D. The innovation is low risk
Answer: B
25. Which type of risk is MOST LIKELY to be identified by modelling and test reviews?
A. Disruption risk
B. Engagement risk
C. Cybersecurity risk
D. Innovation risk
Answer: C
26. An organization has started a digital transformation programme, and wants to create a
culture of innovation. This month, the Clo plans to deliver a presentation on how
chatbots can improve the customer registration experience.
Which approach is the CIO using to support the programme?
A. Encouraging digital technology opportunities
B. Establishing a market intelligence culture
C. Giving employees time for training and development
D. Working with workforce and talent management
Answer: A
27. An organization wants to ensure that all key stakeholders are aware of the strategic
direction and support it.
What is the BEST approach to achieve this?
A. Deliver compulsory strategic awareness sessions regularly
B. Ensure there is one common communication channel for the strategy
C. Utilize metrics to ensure staff comply with the strategy
D. Tailor strategic communications to the stakeholders’ preferences
Answer: D
28. Which is an example of industry disruption?
A. A service provider has launched a new app to support collaboration that is easy to use, and is popular with consumers from many markets
B. An organization transitioned a large number of its services to a cloud provider to remain competitive in their market
C. A mobile phone provider has adopted a new operating model in response to threats from the competition which has resulted in the provider becoming the market leader
D. A software provider has developed a new satellite navigation system for the self-driving car market that has become the system of choice for car manufacturers
Answer: A
29. An organization has utilized digital technology to make significant improvements to business processes that have contributed to the achievement of its strategic objectives.
What does this describe?
A. Digital positioning
B. Organizational disruption
C. Digital transformation
D. Operational technology
Answer: C
30. An organization has established a clear vision for digital transformation and has started their transformation journey. They have documented all their value streams and started to improve these. They use technology appropriately to maximize customer experience and operational excellence. They understand and manage risks, and they have a comprehensive approach to identifying and using innovative
ideas.
What else do they need for the digital transformation to succeed?
A. Management of threats and opportunities
B. Improved use of automation
C. Management of staff skills and competence
D. Linked processes and practices to value creation
Answer: C