IT Strategy, Information Systems, CCR Model & Digital Transformation | 100+ MCQs with Answer
Q1. Which components together define an Information System (IS)?
A. Hardware and software only
B. IT, organization, and management
C. Data and networks
D. Employees and hierarchy
✅ Answer: B. IT, organization, and management
Q2. Why is IS always understood in an organizational context?
A. IT operates independently
B. Organizational culture has no impact
C. IS performance depends on structure, processes, and management
D. IS is purely technical
✅ Answer: C. IS performance depends on structure, processes, and management
Q3. Which of the following is NOT part of an organization in IS context?
A. Hierarchy
B. Politics
C. Hardware architecture
D. Business processes
✅ Answer: C. Hardware architecture
Q4. Why must managers understand IT roles?
A. To code software
B. To replace IT staff
C. To align IT with organizational goals
D. To reduce training costs
✅ Answer: C. To align IT with organizational goals
Q5. Why is IT classified as a General Purpose Technology (GPT)?
A. It is industry-specific
B. It replaces labor
C. It requires complements to generate value
D. It works independently
✅ Answer: C. It requires complements to generate value
Q6. What happens when IT is deployed without complements?
A. Immediate competitive advantage
B. High customer value
C. No meaningful organizational impact
D. Increased differentiation
✅ Answer: C. No meaningful organizational impact
Q7. Which of the following is NOT an IT complement?
A. Skilled employees
B. Business process redesign
C. High teamwork
D. High server capacity
✅ Answer: D. High server capacity
Q8. Why do complements increase the value of IT?
A. They reduce software costs
B. They enable effective usage
C. They eliminate risk
D. They replace management
✅ Answer: B. They enable effective usage
Q9. FIT systems primarily support which type of work?
A. Enterprise-wide standardization
B. Individual tasks
C. Inter-organizational processes
D. Strategic monitoring
✅ Answer: B. Individual tasks
Q10. Why is adoption easier for FIT systems?
A. High redesign requirement
B. Minimal behavioral change
C. Centralized control
D. High monitoring needs
✅ Answer: B. Minimal behavioral change
Q11. ERP, CRM, and SCM are examples of which IT category?
A. FIT
B. NIT
C. EIT
D. GPT
✅ Answer: C. EIT
Q12. Why do EIT systems demand more complements?
A. They are cheaper
B. They impact the entire enterprise
C. They are optional
D. They are user-centric only
✅ Answer: B. They impact the entire enterprise
Q13. Which complement is most critical for EIT success?
A. Faster hardware
B. Business process redesign
C. Individual autonomy
D. Feature-rich software
✅ Answer: B. Business process redesign
Q14. The CCR model emphasizes which three dimensions?
A. Cost, Control, Risk
B. Capability, Complements, Responsibility
C. Culture, Change, Resources
D. Control, Coordination, Compliance
✅ Answer: B. Capability, Complements, Responsibility
Q15. Why is buying software purely based on features risky?
A. Features are outdated
B. Capability needs may differ
C. Vendors mislead buyers
D. Features reduce flexibility
✅ Answer: B. Capability needs may differ
Q16. Which scenario best reflects a wrong IT fit?
A. No IT when required
B. Minimal IT when extensive IT is needed
C. Extensive IT for a simple task
D. All of the above
✅ Answer: D. All of the above
Q17. Why are complementary benefits insufficient if company performance declines?
A. Users are satisfied
B. Decisions improve locally
C. Organizational metrics worsen
D. IT usage increases
✅ Answer: C. Organizational metrics worsen
Q18. Which stage of IT lifecycle is considered the most difficult?
A. Selection
B. Implementation
C. Adoption
D. Exploitation
✅ Answer: C. Adoption
Q19. Why is exploitation easier for ERP systems?
A. Less user resistance
B. Standardized processes already exist
C. Minimal monitoring
D. Low investment
✅ Answer: B. Standardized processes already exist
Q20. Which task focuses on extracting maximum value from IT?
A. Selection
B. Acceptance
C. Adoption
D. Exploitation
✅ Answer: D. Exploitation
Q21. Which three factors are critical for EIT success?
A. Automation, analytics, AI
B. Redesign, standardization, monitoring
C. Cost, speed, scale
D. Security, privacy, compliance
✅ Answer: B. Redesign, standardization, monitoring
Q22. Why can EIT make users happy but harm the company?
A. Over-standardization
B. Poor governance
C. Lack of performance metrics
D. All of the above
✅ Answer: D. All of the above
Q23. What differentiates tech businesses from tech-enabled businesses?
A. Use of software
B. Revenue model
C. Technology as core vs enabler
D. Customer size
✅ Answer: C. Technology as core vs enabler
Q24. Why do tech businesses have high gross margins?
A. High labor efficiency
B. Scalability with low marginal cost
C. Strong branding
D. Market monopoly
✅ Answer: B. Scalability with low marginal cost
Q25. What is the primary success metric for tech-enabled businesses?
A. Gross margin
B. Market disruption
C. Operational efficiency
D. Patent ownership
✅ Answer: C. Operational efficiency
Q26. Why is IT considered a commodity today?
A. It is expensive
B. It is scarce
C. It is ubiquitous and affordable
D. It is proprietary
✅ Answer: C. It is ubiquitous and affordable
Q27. Why does ubiquity reduce IT’s strategic value?
A. Everyone has access
B. Costs increase
C. Innovation stops
D. Usage declines
✅ Answer: A. Everyone has access
Q28. What strategic risk does IT commoditization create?
A. Vendor lock-in
B. Operational disruption
C. Innovation overload
D. Skill shortages
✅ Answer: B. Operational disruption
Q29. Which principle defines the new rule of IT spending?
A. Spend more
B. Spend early
C. Spend less
D. Spend aggressively
✅ Answer: C. Spend less
Q30. Why should firms “follow, not lead” in IT investments?
A. Reduce innovation
B. Avoid experimentation costs
C. Eliminate IT entirely
D. Gain monopoly
✅ Answer: B. Avoid experimentation costs
Q31. How does Moore’s Law support delayed IT investment?
A. Increases risk
B. Reduces functionality
C. Improves cost-performance over time
D. Eliminates competition
✅ Answer: C. Improves cost-performance over time
Q32. Why should firms focus on IT risks instead of opportunities?
A. Opportunities are minimal
B. Risks are catastrophic
C. Innovation is dead
D. Vendors control IT
✅ Answer: B. Risks are catastrophic
Q33. Which is an example of proprietary technology?
A. Internet bandwidth
B. ERP software
C. Patented pharmaceutical compound
D. Cloud storage
✅ Answer: C. Patented pharmaceutical compound
Q34. Why does infrastructural technology become shared?
A. High value in isolation
B. Regulatory pressure
C. Economics favor sharing
D. Low demand
✅ Answer: C. Economics favor sharing
Q35. Why is IT highly replicable?
A. Physical limitations
B. Data can be copied perfectly
C. Legal protection
D. Vendor restrictions
✅ Answer: B. Data can be copied perfectly
Q36. What accelerates IT commoditization?
A. Patents
B. Internet delivery
C. Closed systems
D. High prices
✅ Answer: B. Internet delivery
Q37. What happens when IT becomes infrastructural?
A. Strategic importance increases
B. Competitive differentiation rises
C. Risk management dominates
D. Innovation stops
✅ Answer: C. Risk management dominates
Q38. Why do higher IT expenditures rarely lead to better financial results?
A. Poor vendors
B. Lack of complements
C. Overspending
D. All of the above
✅ Answer: D. All of the above
Q39. Why do “big bang” IT initiatives often fail?
A. Lack of vision
B. High complexity and risk
C. Insufficient funding
D. Poor technology
✅ Answer: B. High complexity and risk
Q40. How does IT generate strategic impact over time?
A. Single innovation
B. Vendor upgrades
C. Continuous business process innovation
D. High capital investment
✅ Answer: C. Continuous business process innovation
Q41. What misconception do technology vendors promote?
A. IT needs complements
B. IT is a cure-all
C. IT is risky
D. IT needs governance
✅ Answer: B. IT is a cure-all
Q42. Why is failure to understand IT unacceptable for executives?
A. IT is optional
B. IT drives organizational change
C. IT replaces strategy
D. IT reduces jobs
✅ Answer: B. IT drives organizational change
Q43. What is the core responsibility of boards regarding IT?
A. Approve vendors
B. Oversee strategic alignment and risk
C. Manage coding
D. Select hardware
✅ Answer: B. Oversee strategic alignment and risk
Q44. What should boards evaluate regarding cyber risk?
A. Vendor pricing
B. Best-in-class benchmarks
C. Employee count
D. Software features
✅ Answer: B. Best-in-class benchmarks
Q45. Which capability does Enterprise IT primarily enable?
A. Creativity
B. Redesigning and enforcing processes
C. Employee autonomy
D. Market expansion
✅ Answer: B. Redesigning and enforcing processes
Q46. Why is monitoring a critical EIT capability?
A. Surveillance
B. Cost cutting
C. Real-time visibility
D. Compliance only
✅ Answer: C. Real-time visibility
Q47. Which task comes first in IT management?
A. Adoption
B. Exploitation
C. Selection
D. Acceptance
✅ Answer: C. Selection
Q48. Why do leaders underestimate IT adoption challenges?
A. Technology is complex
B. Human resistance is ignored
C. Budgets are low
D. Vendors mislead
✅ Answer: B. Human resistance is ignored
Q49. Why is IT exploitation a leadership responsibility?
A. IT teams lack skills
B. Business value extraction is strategic
C. Vendors control systems
D. Users resist change
✅ Answer: B. Business value extraction is strategic
Q50. Why do IT projects often result in frustration and delays?
A. Poor software
B. Lack of organizational change management
C. High expectations
D. Market volatility
✅ Answer: B. Lack of organizational change management
Q51. Which concept explains the transformation from raw facts to actionable insight?
A. Data–Information–Knowledge–Wisdom
B. Input–Process–Output
C. Hardware–Software–Network
D. Strategy–Tactics–Execution
✅ Answer: A. Data–Information–Knowledge–Wisdom
Q52. In the systems concept, feedback is primarily used for:
A. Increasing system speed
B. Controlling and correcting system performance
C. Eliminating human intervention
D. Reducing system cost
✅ Answer: B. Controlling and correcting system performance
Q53. An open system differs from a closed system because it:
A. Has no feedback
B. Interacts with its environment
C. Is fully automated
D. Has fixed boundaries
✅ Answer: B. Interacts with its environment
Q54. Why do many IT initiatives fail despite advanced technology?
A. Poor vendor selection
B. High software cost
C. Failure to redesign business processes
D. Excessive automation
✅ Answer: C. Failure to redesign business processes
Q55. Which stage focuses on user attitude toward technology?
A. Selection
B. Implementation
C. Acceptance
D. Exploitation
✅ Answer: C. Acceptance
Q56. Resistance to IT adoption is primarily a:
A. Technical issue
B. Financial issue
C. Human and organizational issue
D. Vendor issue
✅ Answer: C. Human and organizational issue
Q57. Why is monitoring critical in enterprise IT systems?
A. To punish employees
B. To ensure real-time visibility and control
C. To reduce IT staff
D. To eliminate decision-making
✅ Answer: B. To ensure real-time visibility and control
Q58. Standardization in EIT primarily enables:
A. Creativity
B. Uniform execution of best practices
C. Individual autonomy
D. System flexibility
✅ Answer: B. Uniform execution of best practices
Q59. Which IT category benefits most from centralized decision rights?
A. FIT
B. NIT
C. EIT
D. Personal IT
✅ Answer: C. EIT
Q60. Why is business process redesign unavoidable in EIT implementations?
A. Software demands it
B. Vendors recommend it
C. Enterprise-wide integration requires it
D. Users prefer it
✅ Answer: C. Enterprise-wide integration requires it
Q61. What is the biggest risk of overspending on IT?
A. Technological obsolescence
B. Cost disadvantage without performance gain
C. Skill redundancy
D. Vendor dependency
✅ Answer: B. Cost disadvantage without performance gain
Q62. Why does “follow, don’t lead” reduce IT investment risk?
A. It delays innovation
B. It avoids immature technologies
C. It eliminates competition
D. It stops experimentation
✅ Answer: B. It avoids immature technologies
Q63. Which IT risk has increased due to outsourcing and cloud adoption?
A. Hardware failure
B. Vendor and security risk
C. Employee resistance
D. Over-standardization
✅ Answer: B. Vendor and security risk
Q64. Why is electricity often compared to modern IT?
A. Both are expensive
B. Both are optional
C. Both are infrastructural commodities
D. Both create differentiation
✅ Answer: C. Both are infrastructural commodities
Q65. When IT becomes invisible strategically, management focus should shift to:
A. Innovation speed
B. Feature differentiation
C. Risk and reliability
D. Vendor branding
✅ Answer: C. Risk and reliability
Q66. Which factor primarily enables sustained competitive advantage from IT?
A. Proprietary software
B. Continuous organizational innovation
C. High IT spending
D. Early adoption
✅ Answer: B. Continuous organizational innovation
Q67. Why do best-practice software packages reduce differentiation?
A. They are expensive
B. Everyone adopts similar processes
C. They limit innovation
D. They increase rigidity
✅ Answer: B. Everyone adopts similar processes
Q68. Which statement best reflects IT’s macroeconomic influence?
A. IT differentiates firms
B. IT shapes industry productivity
C. IT creates monopolies
D. IT eliminates competition
✅ Answer: B. IT shapes industry productivity
Q69. Why do proprietary technologies offer higher profit potential?
A. Low replication
B. High adoption
C. Legal and practical protection
D. Industry standards
✅ Answer: C. Legal and practical protection
Q70. Which IT characteristic accelerates commoditization the most?
A. Customization
B. Replicability
C. Complexity
D. Integration
✅ Answer: B. Replicability
Q71. Why do big-bang IT initiatives destroy value?
A. Poor leadership
B. High implementation risk and rigidity
C. Low employee skills
D. Excessive governance
✅ Answer: B. High implementation risk and rigidity
Q72. Tactical IT initiatives are best described as:
A. Long-term transformational bets
B. Incremental improvements in business practices
C. Vendor-driven upgrades
D. Infrastructure replacement
✅ Answer: B. Incremental improvements in business practices
Q73. Strategic differentiation from IT emerges primarily through:
A. One-time investment
B. Sustained capability to innovate
C. Superior hardware
D. Exclusive vendors
✅ Answer: B. Sustained capability to innovate
Q74. According to CK Prahalad, sustainable competitive advantage depends on:
A. Cost leadership
B. Core competencies
C. IT ownership
D. Market timing
✅ Answer: B. Core competencies
Q75. Why is “IT will solve all problems” a dangerous belief?
A. IT is expensive
B. IT ignores organizational change
C. IT reduces flexibility
D. IT slows decisions
✅ Answer: B. IT ignores organizational change
Q76. What should be the primary objective of IT-enabled business strategy?
A. Technology leadership
B. Business value creation
C. Vendor optimization
D. Automation
✅ Answer: B. Business value creation
Q77. Which board-level question focuses on competitive positioning?
A. How much do we spend on IT?
B. How do our technology capabilities compare to competitors?
C. Who is our CIO?
D. What software do we use?
✅ Answer: B. How do our technology capabilities compare to competitors?
Q78. Why is board oversight critical during digital transformation?
A. High capital expenditure
B. Strategic risk and organizational impact
C. Vendor dependency
D. Employee training
✅ Answer: B. Strategic risk and organizational impact
Q79. Which leadership trait is critical for technology governance?
A. Technical expertise
B. Transformational mindset
C. Operational control
D. Vendor management
✅ Answer: B. Transformational mindset
Q80. Which factor most often causes IT-business misalignment?
A. Poor software
B. Lack of shared strategy
C. Budget overruns
D. Vendor influence
✅ Answer: B. Lack of shared strategy
Q81. Why should IT selection start with business requirements?
A. To reduce vendor bias
B. To clarify capability needs
C. To minimize training
D. To speed implementation
✅ Answer: B. To clarify capability needs
Q82. Which IT task formally decides buy vs build?
A. Adoption
B. Acceptance
C. Implementation
D. Exploitation
✅ Answer: C. Implementation
Q83. Why do executives abdicate responsibility when distancing from IT?
A. IT is complex
B. IT is technical
C. IT drives organizational change
D. IT is commoditized
✅ Answer: C. IT drives organizational change
Q84. Which outcome indicates poor IT exploitation?
A. High user satisfaction
B. Stable systems
C. Underutilized capabilities
D. Low downtime
✅ Answer: C. Underutilized capabilities
Q85. What primarily differentiates tactics from strategy?
A. Time horizon
B. Level of detail
C. Resource allocation
D. All of the above
✅ Answer: D. All of the above
Q86. Why must IT strategy be a written document?
A. Compliance
B. Vendor communication
C. Alignment and accountability
D. Budget approval
✅ Answer: C. Alignment and accountability
Q87. Digitizing back-office functions mainly improves:
A. Market share
B. Operational efficiency
C. Brand equity
D. Innovation
✅ Answer: B. Operational efficiency
Q88. Which IT investment should be classified as discretionary?
A. Cybersecurity
B. Compliance systems
C. Experimental applications
D. Core infrastructure
✅ Answer: C. Experimental applications
Q89. Why does common infrastructure increase competitive opportunities?
A. Lower entry barriers
B. Focus shifts to execution excellence
C. Vendor innovation
D. Standard pricing
✅ Answer: B. Focus shifts to execution excellence
Q90. What risk emerges when hardware and software are tightly coupled?
A. High innovation
B. Deployment dependency
C. Cost reduction
D. User satisfaction
✅ Answer: B. Deployment dependency
Q91. Which survey finding highlights IT value uncertainty?
A. 10% reported high returns
B. 90% success rate
C. Reduced budgets
D. Increased alignment
✅ Answer: A. 10% reported high returns
Q92. Why do most large IT projects exceed budget and timelines?
A. Scope creep
B. Organizational complexity
C. Poor governance
D. All of the above
✅ Answer: D. All of the above
Q93. Which capability allows enterprise-wide enforcement of processes?
A. FIT
B. NIT
C. EIT
D. Personal IT
✅ Answer: C. EIT
Q94. Why is standardization powerful at scale?
A. Reduces creativity
B. Enables rapid replication
C. Eliminates risk
D. Reduces learning
✅ Answer: B. Enables rapid replication
Q95. Which IT task is most closely linked to rewards and punishment?
A. Selection
B. Adoption
C. Acceptance
D. Exploitation
✅ Answer: B. Adoption
Q96. Why is exploitation harder in FIT systems?
A. Lack of monitoring
B. Individual autonomy
C. Limited process enforcement
D. Low investment
✅ Answer: C. Limited process enforcement
Q97. Why should IT risks receive executive attention?
A. IT is strategic
B. Disruptions can cripple operations
C. Vendors demand it
D. Compliance requires it
✅ Answer: B. Disruptions can cripple operations
Q98. Which factor transforms IT from opportunity to vulnerability?
A. Innovation
B. Essentiality without differentiation
C. High spending
D. Rapid adoption
✅ Answer: B. Essentiality without differentiation
Q99. What role does change management play in IT success?
A. Optional support
B. Technical training only
C. Core complement for value realization
D. Vendor coordination
✅ Answer: C. Core complement for value realization
Q100. Why should IT be viewed as an organizational change program?
A. It replaces jobs
B. It alters workflows, roles, and control
C. It increases automation
D. It reduces costs
✅ Answer: B. It alters workflows, roles, and control
Q101. Which metric best evaluates IT-enabled business success?
A. System uptime
B. User satisfaction
C. Business performance outcomes
D. Feature usage
✅ Answer: C. Business performance outcomes
Q102. Why is centralized monitoring critical in large enterprises?
A. Compliance
B. Cost control
C. Scale and consistency
D. Vendor reporting
✅ Answer: C. Scale and consistency
Q103. Why do managers prefer features over capabilities?
A. Marketing influence
B. Simplicity
C. Lack of capability analysis
D. Vendor pressure
✅ Answer: C. Lack of capability analysis
Q104. Which outcome reflects successful CCR alignment?
A. Happy users
B. Reduced resistance
C. Improved organizational metrics
D. Faster deployment
✅ Answer: C. Improved organizational metrics
Q105. Why does IT spending show negative correlation with performance?
A. Overinvestment without complements
B. Poor vendors
C. Low skills
D. Rapid obsolescence
✅ Answer: A. Overinvestment without complements
Q106. What is the primary lesson from historical infrastructural technologies?
A. Invest early
B. Focus on innovation
C. Manage risks rigorously
D. Build proprietary systems
✅ Answer: C. Manage risks rigorously
Q107. Which factor makes IT-based advantages short-lived?
A. High cost
B. Easy imitation
C. Regulation
D. Skill shortage
✅ Answer: B. Easy imitation
Q108. Why is governance essential in IT investments?
A. Budget approval
B. Vendor selection
C. Alignment, accountability, and risk control
D. Compliance only
✅ Answer: C. Alignment, accountability, and risk control
Q109. What transforms tactical IT initiatives into strategic advantage?
A. Scale
B. Time
C. Cumulative learning and innovation
D. Vendor upgrades
✅ Answer: C. Cumulative learning and innovation
Q110. Which statement best summarizes the modern view of IT?
A. IT is a silver bullet
B. IT guarantees advantage
C. IT is a tool whose value depends on management
D. IT replaces strategy
✅ Answer: C. IT is a tool whose value depends on management
IT strategy MCQs, Information Systems MBA questions, CCR model MCQs, FIT NIT EIT questions, IT commoditization MBA, enterprise IT strategy, IT governance MCQs, digital transformation MBA, IT risk management questions
