CIS Final

Disruptive innovations don't need to perform better than incumbents; they simply need to perform well enough to appeal to their customers (and often do so at a lower price).

True

Firms that listen to existing customers and tailor offerings based on this input are far more likely to identify potentially disruptive technologies than those that experiment with products that existing customers do not demand.

False

Quality and complexity have both caused 3D printing to flounder.

True

Cross-border bank transfers are not likely to adopt Bitcoin since these functions are already electronic and highly automated.

False

An NFT is a new-fungible token.

False

Like most open source efforts, Bitcoin was created by a consortium of for-profit corporations hoping to fuel adoption of a beneficial new standard.

False

Which of the following is true of disruptive technologies?

• The tech industry is the least fertile ground for disruptive technologies.

• Over time, initially underperforming incumbents improve performance attributes to the point where they invade established markets.

• They come to market with a set of performance attributes that existing customers have demanded.

• Disruptive technologies and disruptive innovations are independent concepts.

• The term disruptive technologies is a simple one because few technologies are able to create market shocks and catalyze growth.

• Over time, initially underperforming incumbents improve performance attributes to the point where they invade established markets.

Which of the following is a way to recognize potentially disruptive innovations?

• pay attention to slow-expensive advancements in technology
• seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff
• become more consumer focused
• indulge in bottom-line obsession
• increase conversation within same product groups

• seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff

What is another common term for 3D printing?

• process manufacturing
• additive manufacturing
• assembly manufacturing
• vertical manufacturing
• integrated manufacturing

• additive manufacturing

Which of the following statements about DeFi are true?

• DeFi efforts have strengthened beneficial financial regulations.
• After a rough start, DeFi is ready to go mainstream.
• Most DeFi efforts lack consumer protection.
• All of the above are true.
• None of the above are true.

• Most DeFi efforts lack consumer protection.

Amazon is now the third-largest seller of online advertisements, behind only Google (aka Alphabet) and Meta, but it also buys more advertising than any other firm in history.

True

Amazon does not open its website up to third-party sellers.

False

In order to automate profit-pushing hyper-efficiency, Amazon warehouses are powered by at least as much code as the firm's website.

True

One of the reasons Amazon has struggled to achieve profitability is because the firm has a negative cash conversion cycle.

False

A cloud computing model that allows a software developer to create systems without having to think about servers is known as serverless.

True

Which of the following is true of Amazon?

• Amazon's early warehousing was a model of efficiency and was critical to the firm being profitable from the start.
• Amazon is the last place most consumers shop online.
• The three pillars of Amazon's business are large selection, convenience, and lower prices.
• Amazon, only recently, has started selling directly to customers.
• Amazon concentrates on niche customers, low brand assortment, and higher prices to gain competitive advantage.

• The three pillars of Amazon's business are large selection, convenience, and lower prices.

Amazon's moves are largely motivated by:

• relentless customer focus
• cost-cutting
• the focus on making immediate supplier payments
• internal leadership
• technology advancements

• relentless customer focus

Identify the true statement.

• Agency pricing is illegal.
• Rivals colluding to set prices is illegal.
• Wholesale pricing is illegal.
• In agency pricing, the seller pays publishers for titles and then sells those titles at whatever price it wished.
• Wholesale pricing is also known as agency pricing.

• Rivals colluding to set prices is illegal.

Which of the following is true of Amazon Web Services (AWS)?

• It only allows firms and not individual customers to rent industrial-strength computing capacity.
• It does not offer corporate-quality computing as a service.
• It allows anyone with a credit card to access industrial-strength, scalable computing resources.
• It is a foolproof system.
• It is just a single-digit percentage of Amazon's overall revenue.

• It is just a single-digit percentage of Amazon's overall revenue.

Amazon Web Services (AWS)

• was introduced after rival efforts from leading computing giants Microsoft and Google.
• forms a majority percentage of Amazon's overall revenue.
• doesn't provide services such as programming environments.
• is a fool-proof system.
• offer several advantages, including increased scalability, reliability, and security.

offer several advantages, including increased scalability, reliability, and security.

Network effects do not influence all consumer products or services.

True

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

True

Almost all networks derive most of their value from a single class of users.

False

Cross-side benefits arise due to interaction among members of a single class of participants.

False

A blue ocean strategy often works best when combined with operational effectiveness.

False

Metcalfe's Law is also known as:

• systemic events
• cluster effects
• group impressions
• herd instincts
• network externalities

• network externalities

Which of the following is an example of a two-sided market?

• Instagram
• Twitter
• Square
• WhatsApp
• GoodRx

• Square

Which statement best describes the relationship between network effects and innovation?

• Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard.
• Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.
• More often than not, network effects foster innovation.
• More often than not, network effects limit innovation.
• Network effects and innovation do not affect one another.

• Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard.

Two distinctly separate markets are said - to undergo convergence when they
are dominated by a small group of powerful sellers.

• derive most of their value from two distinct categories of participants.
• offer products and services designed to target a specific industry.
• are characterized by many buyers, but a single, dominant seller.
• begin to offer similar features and capabilities.

• begin to offer similar features and capabilities.

Large firms often find new markets attractive but might not have products ready for delivery. What strategy do such firms use to get potential adopters to delay their purchasing decisions?

• preannounce forthcoming efforts
• make their new products compatible with the leading standard
• spread costs across increasing units of production or in serving multiple customers
• give away products for half of a two-sided market to seed the market
• leverage customers of their other products to promote a new product

• preannounce forthcoming efforts

Many social media websites have emerged as top destinations on the Internet; however, the category has remained volatile, with many one-time leaders losing popularity over time.

True

Social media refers to content that is peer produced and shared online.

True

Social networking feeds are at times controversial with instances of feed mismanagement causing user discontent, public relations problems, and the possibility of legal action.

True

Despite its good intentions, privacy regulations exposed the website PatientsLikeMe to significant fines and it was eventually forced to shut down.

False

SMART is an acronym referring to the social media awareness and response team.

False

Which of the following statements holds true for electronic social networks?

• Their key use is to anonymously share ideas in an unattributed manner.
• Their key use is to share access to products and services as an alternative to ownership.
• Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media.
• Their key use is to poll a diverse crowd and aggregate opinions to form a forecast of an eventual outcome.
• Their key use is to collaborate on common tasks or to create a common knowledge base.

• Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media.

The long tail nature of the blogging phenomenon is demonstrated by

• many blogs, which are more popular than most mainstream media publications.
• the niche content that is discoverable through search engines and that is often shared via other types of social media.
• most popular blogs offering cutting-edge news and commentary on a wide range of political, social, and economic topics.
• the higher valuation of many top-ranked blogs compared to that of publicly traded papers.
• top blogs operating on shoestring budgets yet snaring several hundred thousand dollars a month in ad revenue.

• the niche content that is discoverable through search engines and that is often shared via other types of social media.

Advertisement and sponsorships are components of:

• earned media
• paid media
• unearned media
• peer production
• social media

• paid media

A prediction market involves

• leveraging customers to virally promote a firm's products or services.
• aggregating the opinions of a specialized group of experts who analyze a problem and suggest solutions.
• making calculated estimates on the prices of goods and services based on the speculation of a group of experts.
• polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.
• trading essential goods and services with a view of making a profit by hiking prices at a time of high demand.

• polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.

What is crowdsourcing?

• It is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call.
• It is the act of moving a job from a group of ineffective employees to an efficient employee.
• It is the process of selling products to people in the guise of conducting marketing research.
• It is the act where a group of people moves from one country to another while looking out for better work opportunities.
• It is the movement of employees from one department to another with the aim of improving their skill sets.

• It is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call.

Payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers.

False

Social media profiles can also be used to fight online fraud.

True

Airbnb has an AI-driven verification scheme where hosts must prove they are on-site and take real-time photos of a property in order to receive a "verification" check.

True

Surge pricing allows Uber to increase the supply of drivers when demand is high.

True

Which of the following firms is an example of a circular economy?

• Rent the Runway
• ThredUp
• Poshmark
• All of the above are true.
• None of the above are true.

• All of the above are true.

The sharing economy consists of which of the following?

• recirculation of goods
• increased utilization of durable assets
• exchange of services
• sharing of productive assets
• All of the above are true.

• All of the above are true.

Which of the following is not true regarding the competitive dynamics of most sharing economy marketplaces?

• Ratings represent a switching cost built over time by early participants in sharing economy marketplaces.
• Late movers have a substantial advantage in this market since inventory should be cheaper to acquire for those firms that have entered markets more recently.
• Network effects should grow over time, favoring firms that got a successful, early start over rivals who arrived late doing the same thing.
• These are two-sided markets.
• All of these statements are true.

• Late movers have a substantial advantage in this market since inventory should be cheaper to acquire for those firms that have entered markets more recently.

Another major concern for firms in the sharing economy is uncertainty around the ability of these firms to continue to consider their workers as _ and not employees.

• investors
• critics
• independent contractors
• liabilities
• None of the above are true.

• independent contractors

Which of the following lead Airbnb to make changes to their platform and include new features?

• fake listings
• additional fee scams
• listings not matching descriptions
• All of the above are correct.
• None of the above are correct.

• All of the above are correct.

Product-market fit is a key concept in entrepreneurship and new product development that conveys the degree to which a product satisfies:

• market demand
• market supply
• profit margins
• supply margins
• demand margins

• market demand

Data that a customer has explicitly shared with a firm is referred to as zero-party data.

True

Cookies given by the website that you are visiting are known as first-party cookies.

True

App Tracking Transparency requires all iOS apps to ask users for their permission to share their data.

True

A VPN is a service that creates a public connection across the private Internet, encrypting transmission and making your Internet communication appear as if it is connected to the organization that provides VPN software.

False

A line-of-sight is signal that must have an obscured pass from source to receiver to be accurate.

False

Data that is collected by one firm and shared with a partner organization is known as:

• zero-party data
• first-party data
• second-party data
• third-party data
• shared data

• second-party data

Advertisers were frustrated with traditional ad channels such as print and television because

• rich media and display ads were expensive.
• they were only able to measure half of their views.
• they had no way of measuring effectiveness.
• they were not able to target markets.
• All of the above are true.

• they had no way of measuring effectiveness.

All devices that connect to the internet are identified by an assigned numeric value. The numeric value is known as the:

• uniform resource locator
• IP address
• MAC address
• computer name
• line-of-sight

• IP address

Technology that recognizes bits that make up an image, video, or audio and identifies the content that is being played is known as:

• line-of-sight
• DAI
• ACR
• geotargeting
• GPS

• ACR

Firms encounter challenges with privacy and data laws because

• firms are responsible for making their own regulations.
• firms often work with third parties.
• firms that are not heavily laden with technology are not required to abide by the laws.
• laws vary by region and there are no clear standards.
• All of the above are true.

• All of the above are true.

Data harvesters are cybercriminals who infiltrate systems and collect data for illegal resale.

True

One of the reasons one should be careful about clicking on any URL in an e-mail is that hackers can easily embed a redirection in e-mail links, rerouting a user to an alternate online destination.

True

Challenge questions offered by websites to automate password distribution and resets are formidable in protecting the privacy of email accounts.

False

The term deepfake refers to sophisticated media created by AI that attempts to look or sound like a real person or event.

True

When using a public wireless network, using VPN software is not advisable as it can reveal your communications to any network eavesdroppers.

False

Which of the following is a valid statement on information security?

• Security breaches cannot be prevented despite the adoption of the best security policies.
• Technology lapses are solely responsible for almost all security breaches.
• Information security is everybody's responsibility.
• Greater expenditure on security products is the only way to contain security breaches.
• A reactive, rather than proactive, approach is better suited for dealing with security breaches.

• Information security is everybody's responsibility.

The use of public wireless connections can increase a user's vulnerability to monitoring and compromise. _ software can be used to encrypt transmissions over public networks, making it more difficult for a user's PC to be penetrated.

• DDoS
• Rootkit
• Keylogging
• CAPTCHA
• VPN

• VPN

Technologies that measure and analyze human body characteristics for identification or authentication are known as:

• overlamination processes
• biometrics
• smart tags
• bio-embedded systems
• holographs

• biometrics

A common example of 2FA is

• a social security number.
• a password, plus the use of a separate verification code.
• a complex grid-patterned code established at sign-up.
• a CAPTCHA and personal question (ex: mother's maiden name).
• asking the user to identify specific items within a photograph.

• a password, plus the use of a separate verification code.

Information security policies would be ineffective without and .

• audit; enforcement
• accountability; flexibility
• compliance; subjectivity
• protocols; the backing of ISO
• rigidity; adaptability

• audit; enforcement

Firms may want to use ARM chips because they draw less power than Intel chips.

True

Almost all custom hearing aids are 3D printed.

True

Tech-fueled operations cannot yield greater profits than off-line players.

False

Dynamic pricing is described as pricing that shifts over time, usually based on conditions that change demand (e.g., charging more for scarce items).

True

Amazon's relentless efficiency has streamlined its entire order process to involve only about a minute of human contact.

True

In the absence of network effects, the value of a product or service increases as the number of users grows.

False

Messaging is considered a one-sided market.

True

Crowdsourcing can be considered a type of peer-production.

True

The unstructured nature of wikis is both a source of strength and weakness.

True

Third-party data is collected by a company that has had the customer explicitly enter a relationship with them.

False

Websites of reputed companies can also be sources of malware.

True

Regularly updated software lowers a system's vulnerable attack surface.

True

Which of the following is true of disruptive technologies?

• The tech industry is the least fertile ground for disruptive technologies.
• Over time, initially underperforming incumbents improve performance attributes to the point where they invade established markets.
• They come to market with a set of performance attributes that existing customers have demanded.
• Disruptive technologies and disruptive innovations are independent concepts.
• The term disruptive technologies is a simple one because few technologies are able to create market shocks and catalyze growth.

• Over time, initially underperforming incumbents improve performance attributes to the point where they invade established markets.

Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?

• Selection attracts consumers.
• A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace.
• Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.
• Amazon's brand is reinforced as a first-choice shopping destination
• All of the above are true.

• All of the above are true.

Which of the following is the most liquid asset?

• plant machinery
• retail locations
• goodwill
• cash
• office furniture

• cash

Which of the following factors represents one of the sources of value derived from network effects?

• congestion
• price transparency
• information symmetry
• staying power
• complementary costs

• staying power

Peer production refers to

• the process of tracking and responding to online mentions of a product, organization, or individual.
• graphical editing tools, such as those found in a wiki, page layout program, or other design tools.
• programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data.
• content that is more complex than simple text or photos and includes animation, audio, and video.
• users collaboratively working to create content, products, and services.

• users collaboratively working to create content, products, and services.

Which of the following statements about blogging is true?

• Firms can ignore blogs without any consequences because blogs do not reflect real concerns of people.
• Blog comments can be a hothouse for spam and the disgruntled.
• Despite their popularity, blogs do not offer more detail than mainstream media outlets do.
• Newspapers offer greater depth than blogs.
• Current and archived posts are not easily searchable in blogs.

• Blog comments can be a hothouse for spam and the disgruntled.

Uber has strengthened initial skepticism around safety and offered such solid safety features that it felt confident enough to offer the Uber Teen service that allows

• parents to share an account with kids as young as thirteen.
• caretakers to track ride progress in real time.
• only top-rated drivers to provide rides.
• automatic audio-recording by default.
• All of the above are correct.

• All of the above are correct.

Each time an ad is shown to a user is known as a(n):

• display ad
• view
• impression
• rich media ad
• interstitial

• impression

Advertisers might consider using an ad network because

• they can advertise across a series of sites.
• it is the only way they can target specific clients.
• they have full control over ad placement.
• ad networks are more secure when it comes to data privacy.
• customers are more likely to engage with ads from an ad network.

• they can advertise across a series of sites.

Advertisers use _ to deliver targeted ads to your television based on your profile.

• automated content recognition
• dynamic ad insertion
• social tracking
• GPS
• line-of-sight

• dynamic ad insertion

The five components of information systems needed to fully understand organizational privacy policies include:

• data, software, hardware, procedures, people
• people, data, hardware, policy, procedures
• developers, software, hardware, mobile, policy
• software, hardware, proxy servers, developers, procedures
• policy, data, hardware, developers, people

• data, software, hardware, procedures, people

Artificial intelligence is a tool that empowers hackers, but can also be used to help firms become more secure through assisting in:

• threat detection
• data mining
• zero day attacks
• creation of anti-malware
• None of the above are true.

• threat detection