Chapter 1

Question 1

What percentage of firms are failing at digital transformation?

Answer 1

72%

Question 2

What portion of the world’s economy is digital?

Answer 2

20% of the economy is digital, with 80% running on it.

Question 3

Which five firms have surpassed $1 trillion in value and invest heavily in AI?

Answer 3

Apple, Microsoft, Alphabet (Google), Meta (Facebook, Instagram, WhatsApp), and Amazon.

Question 4

What is the market capitalization of a firm?

Answer 4

The total value of a publicly traded firm, calculated as the number of shares multiplied by the current share price.

Question 5

What is R&D?

Answer 5

Research & Development, focused on innovation and pioneering advances that lead to new products and technologies.

Question 6

What is Nvidia’s role in AI?

Answer 6

Nvidia is an “arms merchant,” providing microprocessors used in AI and dominating the high-end AI chip market (80–95% market share).

Question 7

What are server farms?

Answer 7

Massive networks of computer servers coordinating their use, providing infrastructure for SaaS, hardware cloud efforts, and large-scale internet services.

Question 8

According to Sundar Pichai, how profound is AI as an invention?

Answer 8

As profound as electricity and Promethean fire.

Question 9

Name some risks associated with AI.

Answer 9

Risk of extinction akin to pandemics and nuclear weapons, Discrimination and biased recommendations, Enabling scammers and hackers, Security vulnerabilities, Chatbots fabricating information.

Question 10

How much of Ireland’s electricity is used by data centers?

Answer 10

18%

Question 11

What makes Apple the most valuable and profitable company in America?

Answer 11

Products like CarPlay, Vision Pro, and the Apple Watch, as well as services like Music, Arcade, TV+, Fitness, News, and iCloud.

Question 12

How is social media a double-edged sword for businesses?

Answer 12

It provides product ideas and sales but also exposes ethical lapses and customer service flaws permanently.

Question 13

What is Big Data?

Answer 13

The collection and analysis of massive datasets to gain insights.

Question 14

What is the EU’s role in regulating tech firms?

Answer 14

Leading in regulation, influencing competition and operations among tech firms globally.

Question 15

Define ‘pivoting.’

Answer 15

Significantly redefining the market, business, or product offering.

Question 16

What is a term sheet?

Answer 16

A legal document outlining the agreement between a founding firm and its investors, defining investment terms, ownership stake, and more.

Question 17

What is the Gartner Hype Cycle?

Answer 17

A curve mapping market expectations (y) over time (x) with five stages.

Question 18

What are the five stages of the Gartner Hype Cycle?

Answer 18

Emerging Innovation, Inflated Expectations, Trough of Disillusionment, Slope of Enlightenment, Plateau of Productivity.

Question 19

Why isn’t the Hype Cycle Curve scientific?

Answer 19

It’s based on guesses, lacks nuanced market insights, and should be one of many tools for decision-making.

Question 20

How has technology impacted finance?

Answer 20

Tech drives global M&A activity, and computer-automated trading accounts for 60% of U.S. equity trading volume.

Question 21

Who is considered the father of AI?

Answer 21

Alan Turing.

Question 22

What are some benefits of AI?

Answer 22

Programmers use it as a first resource for techniques and new skills. Automates grunt work, such as tax and financial tasks. Open-source software lowers computing costs.

Question 23

What is an example of how open-source technology fuels cost reduction?

Answer 23

Facebook uses free open-source software but profits by selling data.

Question 24

How has technology fueled globalization and crushed costs?

Answer 24

Google Drive enables remote collaboration. Big companies shift development to cheaper regions.

Question 25

What is an example of data-driven decision-making in tech?

Answer 25

Amazon shows a personalized 'buy more like this' screen before checkout based on user patterns.

Question 26

How is social media used by firms?

Answer 26

For new product ideas. To drive millions in sales. To vet and build trust with customers.

Question 27

What is a peril of social media?

Answer 27

It can spread misinformation while also serving as a tool for democratization and broadcasting injustice.

Question 28

Why won’t high-tech companies heavily advertise their new products on social media?

Answer 28

They release products in small phases, use NDAs, and improve based on feedback before mass advertising.

Question 29

What is the Sarbanes-Oxley Act?

Answer 29

A law that raised executive and board responsibilities, tied criminal penalties to accounting violations, and requires third-party audits.

Question 30

What is the difference between offshoring and outsourcing?

Answer 30

Offshoring: Moving work to a subsidiary in a different region (e.g., Apple USA & Apple Hong Kong). Outsourcing: Hiring another party to perform work you don’t want to do or can’t do.

Question 31

How is technology used in marketing?

Answer 31

Tracks customer activities. Analyzes campaign results. Modifies tactics. Develops location-based services and cashless payment. Uses social media to generate sales, improve reputation, and better serve customers.

Question 32

What are knowledge management systems in HR?

Answer 32

Tools that help organize and leverage teams of experts.

Question 33

How does technology influence law?

Answer 33

There is increased activity in intellectual property, patents, piracy, and privacy.

Question 34

What happens in the 'Innovation Trigger' stage of the Hype Cycle?

Answer 34

A new technology breakthrough or concept emerges. Initial media interest generates buzz, but practical applications are not yet fully understood. Early prototypes and proofs of concept appear, but commercial viability is uncertain.

Question 35

What happens in the 'Peak of Inflated Expectations' stage of the Hype Cycle?

Answer 35

Media hype and enthusiasm about the technology reach their peak. Many companies adopt or invest in the technology, expecting transformational results. Unrealistic expectations often lead to overpromising and underdelivering.

Question 36

What happens in the 'Trough of Disillusionment' stage of the Hype Cycle?

Answer 36

Interest wanes as early implementations fail to meet expectations. Some companies abandon the technology altogether. Survivors focus on learning from failures and improving the technology.

Question 37

What happens in the 'Slope of Enlightenment' stage of the Hype Cycle?

Answer 37

Understanding of the technology's practical applications and limitations grows. Second- or third-generation products emerge, showing incremental improvements. Adoption by more cautious companies begins as best practices are established.

Question 38

What happens in the 'Plateau of Productivity' stage of the Hype Cycle?

Answer 38

The technology matures and becomes widely adopted. Mainstream adoption leads to a stable market presence. The technology achieves its full potential, delivering real-world benefits.

Question 39

Why is the Hype Cycle important for businesses?

Answer 39

It helps organizations manage expectations and plan for realistic technology adoption timelines. It identifies when to invest in a technology or wait for its maturity.