Question 1: What is IT disruption?
 A. The failure of IT systems to meet the needs of businesses
 B. The innovation that fundamentally changes the market
 C. A gradual improvement of existing technologies
 D. The resistance of firms to adopt new IT solutions
Question 2: How can IT create competitive advantages?
 A. Reducing costs
 B. Increasing customer value
 C. Providing unique products or services
 D. All of the above
Question 3: Which of the following is a characteristic of disruptive innovation?
 A. It improves an existing market
 B. It is only accessible to high-end customers
 C. It creates a new market by catering to underserved customers
 D. It sustains current technological trends
Question 4: Platforms differ from traditional businesses because:
 A. Platforms enable direct interaction between two or more user groups
 B. Platforms manufacture their own products
 C. Platforms do not rely on external suppliers
 D. Platforms are solely focused on retail operations
Question 5: Which of the following is NOT a core characteristic of a platform?
 A. Facilitates value exchange
 B. Reduces transaction costs
 C. Controls all parts of the supply chain
 D. Promotes network effects
Question 6: What are the benefits of network effects?
 A. Increase in user value as more people join the network
 B. Decrease in competition due to platform monopolization
 C. Higher costs for new entrants to the market
 D. None of the above
Question 7: Why is it difficult for firms to adopt disruptive strategies?
 A. There are uncertainties around the feasibility of the new approach
 B. There is strong resistance from existing employees
 C. The disruptive innovation might be too costly for the firm to purchase
 D. All of the above
Question 8: In our class discussion, what led to the downfall of music sales and
records?
 A. The digitalization of music reduces production costs, leading to a reduced
willingness to pay for music
 B. The digitalization of music enhances the ease of pirating music, leading to a
reduced willingness to pay for music
 C. The constant suing by the RIAA angered some consumers, leading them to
stop music purchases altogether
 D. All of the above
Question 9: From our discussion on "How Can Great Firms Fail?", what is/are the likely
explanation(s) for why big well-to-do firms can miss out on an important business
innovation?
 A. Solely engaging in sustaining technology changes
 B. Solely engaging in disruptive technology changes
 C. Held captive by their customers: listening and responding to customers but did
not anticipate changes to the emerging market
 D. All of the above
Question 10: Which of the following aspects of a two-sided market of a game console
company is TRUE?
 A. The game console company derives revenue from gamers mainly through the
sales of individual game titles
 B. The game console company derives revenue from game developers mainly
through the licensing fees to develop a game on the platform
 C. The cost of game consoles for serving the game developers comes from
contract-related fees
 D. All of the above
Question 11: What are techniques used by Uber to attract and keep participants from
the two sides of the market?
 A. Giving discounts to customers on their first ride
 B. Providing a base pay to drivers in cities when Uber is first launched
 C. Providing a rating system of drivers for quality assurance
 D. All of the above
Question 12: Platforms:
 A. May allow an inferior product to perform better (in sales) compared to superior
products
 B. Are products and services that bring together groups of users in multi-sided
networks
 C. Are likely to increase in value non-linearly with more users
 D. All of the above
Question 13: Which of the following statements on platform-based markets are TRUE?
 A. Winners need to have both the best platform strategy and the best product
 B. Winners need to have the best platform strategy, but not necessarily the best
product
 C. Winners need not have the best platform strategy, but they need to have the
best product
 D. None of the above
Question 14: Examples of envelopment include(s):
 A. Traditional pharmacies affected by Amazon Prime
 B. Bowling alley centers giving way to newer entertainment options (video
games, escape rooms)
 C. Physical malls struggle to compete with Amazon Prime
 D. All of the above
Question 15: It is best to subsidize the developer side when:
 A. Customers are price sensitive
 B. There are prestigious developers that have a loyal user base

C. Customer volume does not attract an overcompensating amount of investment
from developers
 D. All of the above
Question 16: In a two-sided platform market, a seller has to consider:
 A. Cross-side network effects from the customers
 B. Cross-side network effects from other sellers
 C. Same-side network effects from other sellers
 D. All of the above
Question 17: Which of the following are examples of platform-based markets?
 A. Operating Systems
 B. Craigslist
 C. Health Maintenance Organizations (HMOs)
 D. All of the above
Question 18: Some important questions to consider when adopting cloud-based ERP
systems:
 A. Is my company operating in an industry dealing with sensitive information and
data?
 B. Is my firm willing to give a yearly subscription fee over a huge up-front
investment?
 C. Do firm employees require ERP access anywhere or just in the company?
 D. All of the above
Question 19: In our class discussions, Target Canada failed because:
 A. Senior management set an unrealistic timeline for the completion of the SAP
implementation
 B. Data entries of the product dimensions were mostly wrong
 C. US sales numbers were used to predict the sales of Canadian Target stores
 D. All of the above
Question 20: Which of the following are evaluation criteria for project success?
 A. On time
 B. On quality
 C. On scope
 D. All of the above
Question 21: According to our class material, what are the four orders of change
elements that are involved?
 A. Task
 B. People
 C. Structure
 D. All of the above
Question 22: What are some pitfalls in poor change management?
 A. Underestimating the magnitude of change needed
 B. Seeing change management as nice to have, but not a crucial success factor
 C. Having a lack of top management support
 D. All of the above
Question 23: What are some reasons for using the Big-Bang approach for system
implementation?
 A. Shorter implementation timeline, if milestones go according to plan


B. The risks are lower
C. Cost savings are ensured without the need to simultaneously maintain
multiple systems
 D. All of the above
Question 24: What are appropriate ways of mitigating resistance to change?
 A. Engaging senior leaders as visible sponsors of change
 B. Assess the magnitude of change and communicate expected changes to
affected users early
 C. Punish employees who are unwilling to adapt to changes
 D. All of the above
Question 25: What is/are the advantage(s) of using internal employees for the
crowdsourcing effort?
 A. Derived solutions would have strong market appeal
 B. Less risk of intellectual property issues
 C. Great diversity of ideas and solutions
 D. All of the above
Question 26: Which of the following is TRUE about crowdsourcing?
 A. It allows firms to co-create products with users
 B. It allows customers to access ideas from other users
 C. It builds a community around the product
 D. All of the above
Question 27: What are some lessons we can learn from the "United Breaks Guitar"
incident?
 A. Need to serve customers efficiently and effectively to avoid social media
outrage
 B. Not effective if firms respond on a different social media channel
 C. Need to show other users and customers that the firm is sincere in resolving
the problem
 D. All of the above
Question 28: Appropriate strategy/strategies to adopt in the event of a social media
attack by a disgruntled public member:
 A. Exert the corporate power over an individual and brush aside the issue swiftly
 B. Wait for 2-3 days to see if the offending message picks up attention before
responding
 C. Build up and deploy "force multipliers" to support your business
 D. All of the above
Question 29: The social connections on social media...
 A. Are a consequence of homophily
 B. Are likely to reveal overlaps in the preferences between peers
 C. Provide marketing opportunities via identification of potential customers
 D. All of the above
Question 30: Crowdsourcing allows a firm to get:
 A. Ideas/opinions
 B. Solutions
 C. Evaluations
 D. All of the above
Question 31: Which of the following business(es) utilize crowdsourcing?
 A. Netflix
 B. Lego
 C. Threadless
 D. All of the above