Digital Transformation Strategy Flashcards

A company's digital transformation initiative stalls because business units resist sharing data across silos. Which governance mechanism most directly addresses this?

Answer: Establishing a cross-functional data governance council with executive sponsorship

A cross-functional data governance council with executive sponsorship creates shared accountability and breaks down silos institutionally.

In digital transformation, a 'two-speed IT' architecture is designed to address which fundamental tension?

Answer: The need to maintain stable core systems while enabling rapid innovation at the edge

Two-speed IT separates the stable, reliable systems of record from faster, experimental systems of engagement to resolve speed-versus-stability tension.

Which metric is most appropriate for measuring the strategic value of a digital platform investment before revenue is realized?

Answer: Platform ecosystem growth rate (developers, partners, users)

Ecosystem growth rate captures the compounding network effects that drive long-term platform value, even before direct revenue materializes.

A strategic planner is evaluating whether to build, buy, or partner for a new digital capability. Which factor most strongly favors the 'partner' option?

Answer: The capability is rapidly evolving and time-to-market is critical

Partnering is favored when speed is paramount and a mature ecosystem partner can deliver faster than internal build or acquisition integration.

What does the concept of 'digital debt' primarily refer to in a transformation context?

Answer: Accumulated technical shortcuts and legacy system workarounds that constrain future agility

Digital debt (a form of technical debt) comprises the accumulated burden of quick fixes, legacy systems, and bypassed modernization that slows future transformation.

When assessing digital transformation maturity, a company that uses data analytics for operational reporting but not for predictive decision-making is best classified at which level?

Answer: Descriptive analytics stage

Using analytics for historical/operational reporting characterizes the descriptive stage, which precedes predictive and prescriptive capabilities.

A firm pursues digital transformation primarily to enter new markets through digital channels. This strategic intent is best categorized as:

Answer: Digital market expansion

Using digital channels specifically to access new markets represents a digital market expansion strategy, distinct from efficiency, experience, or full model reinvention.