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CMA Intermediate · Operations Management and Strategic Management · Digital Strategy

An Indian FMCG company decides to digitise its distributor ordering by first piloting a new app in one state, learning from it, and then extending to other states. This approach is best described as:

This is a phased, pilot-based rollout. Testing the app in one state first lets the company learn and fix problems before scaling, which lowers implementation risk. It is the opposite of a big-bang changeover, where all locations switch at once.

  1. AA phased or pilot-based rollout that reduces implementation riskCorrect
  2. BA big-bang changeover that replaces all systems at once
  3. CDivestment of the distribution function
  4. DBackward integration

Explanation

Piloting in one region before wider rollout is a phased implementation. It allows testing and learning at limited cost and risk. A big-bang approach switches everything at once, which is the opposite of the described approach.

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