CMA Intermediate · Operations Management and Strategic Management · Digital Strategy
Which of the following is the most appropriate way to monitor whether a firm's digital strategy is succeeding?
Tracking KPIs tied to strategic objectives, such as digital revenue share, customer acquisition cost and cycle time, is the right approach. These measure outcomes against goals, whereas tools purchased or IT headcount only measure inputs and say nothing about strategic success.
- ACounting the number of software tools purchased
- BTracking KPIs linked to strategic objectives, such as digital revenue share, customer acquisition cost and process cycle timeCorrect
- CMeasuring only the IT department's headcount
- DComparing the website colour scheme with competitors
Explanation
Control of a strategy requires outcome measures tied to objectives. KPIs like digital revenue share, acquisition cost and cycle time show whether goals are met. Tool counts and headcount measure inputs, not results, and design comparisons are not performance measures.
Did you get it right without looking?
One question tells you little. A timed set on Digital Strategy shows your real accuracy, how long you take and where you lose marks.
More Digital Strategy questions
- A Pune-based retailer plans to use a distributed, tamper-resistant shared ledger so that its suppliers, logistics partners and banks can all…
- Scanning paper invoices of a manufacturing company and storing them as PDF files is an example of:
- A bank has four digital initiatives and can fund only one this year. Each is scored on strategic fit (weight 50%), customer impact (30%) and…
- A manufacturing firm in Pune has approved a digital strategy, but plant managers continue to use paper-based processes and resist the new ER…
- A mid-sized Indian retailer wants to prepare a digital strategy. Which activity should logically come first in formulating the strategy?
- In strategic management, a firm's digital strategy is best described as: