SAMPLE EXAMINATION
1BK70: Digitalization and Enterprise Systems
(Version 2 – 29 Oct 2023)
Q1. Which of the following ES types can be considered
business domain-specific?
a) Product Lifecycle Management System
b) Hospital Information System
c) Supplier Relationship Management System
Correct answer: “B”. HIS is specific to the healthcare
industry and is designed to manage and support various
functions within a hospital or healthcare organization.
The others also relate to some specific domains, but in
general, they apply to a broader set of industries and
business domains.
Q2. An EIS impacts organizational effectiveness by
integrating the enterprise vertically and horizontally. It
integrates vertically by managing data/information
across operational, tactical, and strategic organizational
levels. It integrates horizontally by managing
data/information across the major functions of the
organization (e.g., sales, production, finance,
procurement). In Assignment 1, you were expected to
perform a complete “order-to-cash process” within a
fictitious company (GBI Inc.) using SAP ERP. Which form
or forms of integration does the EIS system facilitate in
this particular assignment work?
a) Horizontal
b) Vertical
c) Both Horizontal and Vertical
Correct answer: “A”. In the “order-to-cash process”, the
users go through a couple of functional modules (to be
precise: Sales and Distribution (SD), Materials
Management (MM) and Financial Accounting (FI)).
Accordingly, the system facilitated effectiveness through
“Horizontal” integration (as opposed to vertical). It did
so by integrating different functional areas of a business.
It facilitated cross-functional, process-wide information
management, e.g., to have process information digitally
available across business processes, to avoid data
inconsistency in the process (e.g. on orders, customers,
products).
Q3. Which of the following is a type of IT resource?
a) An IT asset
b) An IT capability
c) Both
Correct answer: C. See the definition on the slide in Lec 3
slide 7.
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
Q4. Which of the following statements is correct
regarding the strategic use of IT in businesses?
a) Strategic use of IT always requires the adoption
of the latest and most radical IT products.
b) The strategic use of IT primarily focuses on
increasing production and service costs.
c) The strategic use of IT is flexible and depends
on the specific needs and goals of the business.
Correct answer: C. The strategic use of IT is not rigidly
tied to always using the latest and most radical IT
products (a), and it is not primarily about increasing
production and service costs (b). Instead, the strategic
use of IT is adaptable and should align with the unique
needs and objectives of a business. It can encompass a
wide range of IT strategies and solutions depending on
what is most beneficial for the organization. (see Lec3
slides 26/44, 27/44, and 28/44).
Q5. Looking back at the cases of Zara and Domino’s
Pizza, which of the below sentences is correct in terms
of achieving Sustainable Competitive Advantage (SCA)?
a) Zara relies on its IT capabilities to achieve SCA.
b) Domino’s relies on its IT assets to achieve SCA.
c) Zara and Domino’s make use of their IT
resources in different ways to achieve SCA.
Correct answer: “C”. both Zara and Dominos make use
of their entire IT capabilities, they just do it in a different
ways. While Zara leverages its IT capabilities to achieve
SCA by implementing a highly responsive and efficient
supply chain and inventory management system,
Domino's focuses on its IT assets to improve customer
experience and delivery services. The strategies and
ways they use IT contribute to their competitive
advantages but are distinct and tailored to their specific
business models and industries. (Lec.3 slide 19).
Q6. In terms of the three different views that can
provide options on the strategic IT landscape, which of
the following sentences is NOT correct?
a) Porter 5 forces model tells us to improve our
internal processes and then focus on the state
of the market.
b) Both Porter’s and the RBV models tell us that
we need to be cautious about what goes on in
the organization holistically.
c) The RBV describes a way of optimizing the
driving forces of the organization.
1/6
Correct answer: “A”. Porter's Five Forces model is
primarily focused on analyzing the “external competitive
forces” in the market, such as the threat of new
entrants, the bargaining power of buyers and suppliers,
the threat of substitute products or services, and the
intensity of competitive rivalry. So, it tells us to be
mindful of what goes on externally in the organizational
environment and leverage that to our benefit. (Lec.3
slide 23)
Companies face a wide range of risks, including
financial, operational, legal, and strategic risks, in
addition to IT-related risks. Effective risk management
should consider and address all these different types of
risks. Option b is correct because it reflects the balanced
approach of considering both risks and opportunities.
Option c is also correct because it emphasizes the
importance of ongoing risk analysis throughout an IT
project. (Lec.4 slides 18-21).
Q7. Which type of business leadership focuses on
exploiting current IT resources and capabilities to realize
value?
Q10. Out of the 3 economic indicators given below that
can be used to determine the economic feasibility of a
business case, which one refers to ‘the ratio between
net profit (over a period) and cost of investment?’
a) Top-down
b) Demand-side
c) Supply-side
Correct answer is C (Lec.3 slides 42-44). Supply-side
leadership focuses on exploiting current IT resources and
capabilities to realize value. It involves managing the
existing internal capabilities and resources of the
organization to optimize the use of IT for business
purposes, which is a characteristic of the supply-side
approach.
Q8. We presented a framework for the classification of
types of benefits in a business case. One of these
options was described as: “By judging agreed criteria,
specific individuals or groups will use their experience or
judgment to decide the extent the benefit will be
realized”. The option is:
a) Quantifiable benefits
b) Measurable benefits
c) Observable benefits
Correct answer is C; see Lec.4 slide 16. Observable
benefits are those that can be assessed through
observation or judgment rather than strict quantitative
measurement.
Q9. Which of the following statements about risk
management in IT is incorrect?
a) IT risk is the only risk that a company should be
concerned with.
b) Enterprises should balance identifying risks
with
recognizing
potential
business
opportunities when seeking new IT solutions.
c) A thorough IT risk analysis should be an ongoing
process throughout the IT project.
Correct answer is A. IT risk is an important aspect of risk
management for a company, but it is not the only risk
that an organization should be concerned with.
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
a) Net Present Value
b) Break-Even Point
c) Return on Investment
Correct answer: “C”. Check the definitions in Lec.4 slide
14. ROI is a measure that expresses the profitability of
an investment as a ratio of the net profit generated over
a specified period to the initial cost of the investment. It
is a widely used financial metric for assessing the
economic feasibility and profitability of a business case
or investment.
Q11. In terms of the tangibility of the projected benefits
for a business case, which of the following sentences is
incorrect?
a) Strategic benefits are tangible and form a basis
for quantification.
b) Prospective benefits and costs can be difficult
to quantify.
c) Having a rationalized reasoning can be the basis
of making an informed decision.
Correct answer: “A”. Check how the strategic benefits
are depicted in Lec.4 slide 15. They are often Intangible.
Q12. Sam has just purchased 10 new high-speed color
laser printers for his company. He is very excited
because he got a 40% discount and paid only $2,990 for
each unit.
Which of the statements is NOT true?
a) Sam should also have looked at end-of-life
costs.
b) Sam should also have looked at the labor costs
of physically removing the current printers.
c) Sam should also have looked at yearly
operating costs.
Correct answer is B; End-of-life costs can be significant
and should be considered for an impending IT
2/6
investment (i.e., the purchase of printers, which can be
perceived as a hardware upgrade). For example, the
connection configuration of the new printers might
require software upgrades on all the connected laptops
and desktops of the organization. Additionally, yearly
operating costs for these new machines can be very
important as they might incur significant fixed costs
(scheduled maintenance costs provided by the seller) or
variable costs (i.e., electricity consumption). See Lec. 4
slide 10.
Q13. Which of the following is not an advantage of the
on-demand type of ES architecture?
a) Lower start-up costs, because there is no cost
for hardware and network infrastructure.
b) Dynamic scalability, because more
power/space is available on-demand.
c) Reliability, because this type of architecture
creates a self-healing infrastructure.
Correct answer is C. The on-demand type of ES
architecture typically offers advantages such as lower
start-up costs and dynamic scalability. However, it does
not inherently guarantee reliability. While some ondemand services may incorporate self-healing
mechanisms or redundancy to improve reliability,
reliability is not a universal advantage of on-demand
architectures. It depends on how the specific system or
service is designed and implemented.
Q14. Which of the following is one of the principles of
the 4-tier architecture?
a) A tier provides services to the tier directly
above it.
b) All ES parts are assigned to four tiers.
c) A tier can use all tiers below it.
Q16. Which of the following is NOT a functionality of a
Supply Chain Management System?
a) Forecasting supply and demand and check
actual-versus-forecasted demand
b) Track the physical status of goods for inbound
and outbound shipments
c) Decreasing prices of goods if actual-versusforecasted demand is lower
Correct answer is C. Supply Chain Management Systems
typically focus on optimizing the supply chain, ensuring
efficient flow of goods, and meeting customer demand
while managing costs. This includes forecasting supply
and demand, tracking the physical status of goods for
inbound and outbound shipments, and making
adjustments as needed. However, decreasing prices of
goods in response to actual-versus-forecasted demand
being lower is not typically a primary functionality of a
Supply Chain Management System. Pricing strategies
are more often associated with marketing and sales
efforts rather than the core functions of supply chain
management. (Lec.2 pg 9-10).
Q17. Which tier of the 4-tier architecture calculates for
each employee his monthly bonus? (The amount of
bonus is based on the monthly revenue of that
employee and the number of his transactions.)
a) tier 1: Business Data Objects
b) tier 2: Business Functions
c) tier 3: Business Processes
Correct answer is B. The calculation of an employee's
monthly bonus based on revenue and transactions is
typically a business function. In the 4-tier architecture,
this kind of business logic is usually handled in tier 2:
Business Functions, which contains the specific business
rules and functions that process and manipulate data to
perform tasks like bonus calculations based on certain
criteria. (Lec2).
Correct answer is A. See Each tier in the architecture
provides services to the tier immediately above it,
creating a structured and organized way for different
components of a system to interact. This helps in
separating concerns and maintaining modularity in the
system's design. (Lec.2 page 16.
Q18. According to the traditional EIS development
lifecycle (as presented in the lecture handouts), in which
of the following lifecycle phases is this specific task most
likely to take place: ‘gap analysis for order-processing’?
Q15. Which of the following CRM components supports
the front-end bank employee in making a decision
whether to lower the customers’ monthly fee based on
the customer value?
Correct answer is “A”. During the analysis phase of the
traditional EIS development lifecycle, the focus is on
understanding the current system, identifying the gaps
or deficiencies, and defining the requirements for the
new system. Gap analysis is a critical component of the
analysis phase where you compare the existing system's
capabilities with the desired system's requirements to
determine what needs to be addressed in the new
system. (Lec.5)
a) Operational CRM
b) Analytical CRM
c) Executive CRM
Correct answer is B. See Lec.2 pgs 5-6.
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
a) Analysis
b) Design
c) Investigation
3/6
Q19. Which of the following situations should NOT be
expected in a project that follows an agile EIS
implementation approach?
a) Performing analysis, design, and
implementation of the EIS in a flat sequence
b) Starting with smaller sets of system
requirements that are well-known, and
progressing with them to later stages
c) Releasing working functionality to EIS endusers incrementally every 4 weeks
Correct answer is “A” In an agile EIS implementation
approach, it is not expected to perform analysis, design,
and implementation in a flat sequence. Agile
methodologies promote iterative and incremental
development, meaning that these activities are carried
out iteratively and concurrently rather than sequentially
in a flat sequence. Agile methodologies emphasize
flexibility and the ability to respond to changing
requirements throughout the project, making it
important to continuously adapt and iterate on the
system. (Lec.5)
Q21. Which project management process group (as
presented in the lecture handouts) involves the “quality
assurance” task? (Note that quality assurance is
process-oriented and focuses on defect prevention,
while quality control is product-oriented and focuses on
defect identification.)
a) Execution
b) Testing
c) Monitoring and controlling
Correct answer is “C”. Quality assurance, as mentioned,
is focused on process-oriented activities that aim to
prevent defects and ensure that the project is following
the appropriate processes and standards. The
monitoring and controlling process group in project
management involves activities related to tracking and
overseeing the project's performance and ensuring that
the processes are being executed as planned. This is
where quality assurance activities are typically carried
out to ensure the project's quality requirements are met.
(Lec.6)
Q22. Consider the following information about the tasks
of a project.
Q20. Consider the following situations that can occur in
an EIS implementation project:
1- Changing an implemented feature in a future
release
2- Performing analysis, design and implementation
concurrently
Which of the situations listed above can be expected to
take place in a project that follows an agile EIS
implementation approach?
Task
Preceding Task
A
B
C
D
E
F
G
H
I
J
A
A
C
A
B
F
E, F
D
G, H, I
a) Only 1
b) Only 2
c) Both 1 and 2
Correct answer is “C”. In an agile EIS implementation
approach, both situations 1 and 2 can be expected:
1- Changing an implemented feature in a future release
is a common practice in agile development. Agile
methodologies emphasize flexibility and the ability to
respond to changing requirements, which includes
modifying or enhancing features in response to
feedback or evolving business needs.
2- Performing analysis, design, and implementation
concurrently is another characteristic of agile
development. Agile methodologies often promote
overlapping these activities to increase efficiency and
respond to changing requirements more effectively.
This concurrent approach is in contrast to traditional
waterfall methods, where these phases are typically
executed sequentially. (Lec.5)
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
Estimated
Duration (days)
3
8
4
6
9
5
5
7
8
4
Accordingly, which tasks are in the critical path, and
what is project’s planned total duration?
a) A-B-F-H-J, 27 days
b) A-B-F-G-J, 25 days
c) A-E-H-J, 23 days
Correct answer is “A”. , and the duration is 27 days
C4
Start
A3
D6
E9
B8
I8
J4
H7
F5
G5
Task
name
End
Task
duration
in days
_
4/6
Q23. According to the project tasks and the plan given
above in Q24, what is the float (in days) for task E?
a) 2
b) 4
c) 0
Correct answer is “B”. (Lec.6)
Q24. Consider the following tasks in a typical EIS
implementation project:
1- Communicating the project progress to the
executive management
2- Resolving an escalated issue about two
departments in the organization as the decisive
authority
For which of these tasks, the project manager will be the
ultimate responsible?
a) Only 1
b) Only 2
c) Both 1 and 2
Correct answer is “A”.
1- Communicating the project progress to executive
management is a task for which the project manager is
ultimately responsible. Project managers are typically
responsible for keeping stakeholders, including
executive management, informed about the project's
progress, status, and any issues or risks that need to be
addressed. 2-Resolving an escalated issue about two
departments in the organization as the decisive
authority, especially in the presence of a steering
committee, often involves a collaborative decisionmaking process. While the project manager may play a
role in facilitating the resolution and presenting
information to the steering committee, the ultimate
responsibility for making the decision and resolving the
issue may not rest solely with the project manager. It
often involves the collective decision-making authority
of the steering committee together with the relevant
department heads. (Lec.6)
Q25. Consider the following tasks in a typical EIS
implementation project:
1- Meeting with a subject matter expert in the
warehouse branch to better understand the
interaction between the purchasing and the
warehouse.
2- Choosing between different techniques for
integrating with the legacy system for data
transfer.
For which of these tasks, the functional team will be the
ultimate responsible?
Correct answer is “A”.
1-Task 1 is primarily the responsibility of the functional
team. Subject matter experts from the business side are
often crucial in providing insights and requirements for
system design and functionality.
2- Choosing between different techniques for
integrating with the legacy system for data transfer is a
task that typically involves technical considerations, so
it is more aligned with the responsibilities of the
technical team. The functional team may provide input
and requirements, but the ultimate decision often lies
with the technical team. (Lec.6)
Q26. In the paper by Finney and Corbett (2007), the
authors present the results of their literature review on
the critical success factors (CSFs) of ERP
implementations. They found ‘change management’ as
one of the most cited CSF in the literature. Accordingly,
which of the following task(s) does change management
involve?
1- Building a positive employee attitude towards
the EIS and the project.
2- Securing the support of opinion leaders
throughout the organization.
Choices are:
a) Only 1
b) Only 2
c) Both 1 and 2
Correct answer is “C”. Check Finney and Corbett (2007),
pg.336.
Q27. According to the UTAUT* model, which of the
following is likely to place more importance on
"Performance Expectancy" when showing behavioral
intention to use an IT? (* UTAUT: Unified Theory of
Acceptance and Use of Technology).
a) Kylian Mbappe (he is a football player, age >
24)
b) Cristiano Ronaldo (he is a football player, age >
37)
c) Famke Janssen (She is a Dutch actress, age >
58)
Correct answer is “A - Kylian Mbappe" as the
performance expectancy is stronger for younger men.
So, he is more likely to place greater importance on
"Performance Expectancy" when showing behavioral
intention to use an IT system. (Lec.7)
a) Only 1
b) Only 2
c) Both 1 and 2
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
5/6
Q28. According to the UTAUT* model, which of the
following statements does NOT characterize the
"Facilitating Conditions" factor? (* UTAUT: Unified
Theory of Acceptance and Use of Technology)
a) A specific person or group is available for
assistance with system difficulties.
b) Using the system would improve my job
performance.
c) Guidance is available to me in the selection of
the system.
Correct answer is “B”. The statement "Using the system
would improve my job performance" is related to the
"Performance Expectancy" factor in the UTAUT model,
not the "Facilitating Conditions" factor. The "Facilitating
Conditions" factor in the UTAUT model refers to the
perceived support and resources available to the
individual for using the technology, such as assistance
with system difficulties and guidance in the selection of
the system. (Lec.7)
1BK70 Sample Exam (Version 2 – 29 Oct 2023)
6/6