CMA Intermediate · Operations Management and Strategic Management · Digital Strategy
A mid-sized Indian logistics firm has installed new tracking software and an app, but its decision-making, structure and employee skills remain unchanged, and the expected gains did not appear. Which is the most likely strategic reason according to digital transformation thinking?
The most likely reason is that technology was adopted in isolation without aligning strategy, people, culture and processes. Digital transformation needs organisational change alongside tools, so installing software and an app while leaving decision-making, structure and skills unchanged rarely yields the expected benefits.
- ATechnology alone was adopted without aligning strategy, people, culture and processesCorrect
- BThe software was too inexpensive to be effective
- CDigital strategy should never involve customers
- DData analytics cannot improve logistics
Explanation
Digital transformation requires alignment of strategy, leadership, culture, skills and processes with technology. Tool adoption alone rarely delivers value. The other options are incorrect: cost does not determine effectiveness, customers are central to digital strategy, and analytics does help logistics.
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