IPA IP 2024 Question 29
A question IPA Japan published in 令和6年度 ITパスポート試験 公開問題 問29, translated into English. ITPEC is based on the same exams.
Same question on ITPEC: Apr 2025 Q100
Which of the following is the most appropriate term to express the change where by using digital technology, a company creates a user experience (UX) and a business model that attract customers, expels conventional services in the industry, and as a result destroys the existing structure of an industry?
Explanation
Digital disruption — a newcomer's digital UX and business model drive out the industry's conventional services and destroy its existing structure.
Disruption is the kind of innovation that overturns a market rather than improving it. Ride-hailing apps against taxi companies, streaming against video rental shops and online travel agencies against travel counters are examples: the new player offers a more attractive experience at lower cost, customers move over, and the incumbents lose their place.
Answer (b)
Why not others:
- •(a) Digital signage — electronic displays showing advertisements or information in stores, stations and streets
- •(c) Digital divide — the gap in information and opportunities between people who can use IT and the Internet and those who cannot
- •(d) Digital transformation — a company using digital technology to transform its own business, products and organization; it can lead to disruption but does not by itself mean destroying the industry's existing structure
Key rule: Digital transformation is change within a company; digital disruption is the upheaval of a whole industry when a digital model displaces the incumbents.
Technological Strategy Management · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.