Which is the BEST description of digital business?

Question

Options

• AUsing information systems to store, retrieve, transmit, and manipulate digital data
• BUsing processes that transform something from analogue to digital format
• CUsing digital technology to control physical devices
• DUsing digital technology as a basis for conducting an organization's activities

• A
  4% (1)
• B
  4% (1)
• C
  15% (4)
• D
  77% (20)

Explanation

Digital business means an organization uses digital technology as the foundation for how it operates - its strategy, processes, customer interactions, and value creation are all built around digital capabilities. Option D captures this holistic, organization-wide scope.

Why the distractors fall short:

• A describes information management - what databases and IT systems do, not a business model.
• B describes digitization - the technical act of converting analogue content (e.g., scanning a paper document), not a business approach.
• C describes IoT/automation - controlling physical devices (e.g., a factory robot), which is one narrow application of digital tech, not the definition of digital business.

Memory tip: Think of "digital business" as the umbrella - it's about running the whole organization digitally. The distractors each describe one tool or task under that umbrella, not the umbrella itself. If the answer sounds like a specific IT action rather than a business-wide approach, it's a distractor.

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