Digital Innovation

Question 1

Digitisation

Answer 1

Refers to the process of converting information into a digital(ie machine readable) format.

Question 2

Digitalisation

Answer 2

Most commonly refers to the transformation of a business process that has been enabled by the existence of digitised data.

Question 3

4 Vs for Big data

Answer 3

Volume: the sheer scale of the data

Velocity: the frequency at which the data is generated,captured and shared

Variety: the unstructured nature of the data originating from multiple sources and types, eg video,audio and text

Veracity: the uncertainty of the data

Question 4

Blockchain

Answer 4

A system used to make a digital record of all the occasions a cryptocurrency is bought or sold and that is constantly growing as more blocks are added

Question 5

Distributed ledger

Answer 5

Databases that are maintained collaboratively by a number of participants who regularly agree in a peer-to-peer basis how to perform updates using a mutual consensus verification mechanism. Every participants shares the same truth and data is immutable.

Question 6

Smart contracts

Answer 6

Automated trustworthy workflow between parties without central specific co-ordinator, hence reducing operational risk.

Automatic reordering of stock
Automatic upload of purchase orders for financing
Automated document preparation for paperless trade
Potential application of artificial intelligence for compliance checks

Question 7

Benefits of smart contracts

Answer 7

Speed: use code to automate workflow,thus reducing processing time

Accuracy: automation reduces the risk of error generally associated with manual processing

Trust: data encrypted on a shared ledger is immutable

Cost: the removal of intermediaries reduces cost and enhances efficiency

Question 8

Operational risk

Answer 8

The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events

Question 9

Cognitive computing

Answer 9

The use of artificial intelligence to build that can mimic human thought processes and assist humans in decision-making

Question 10

Machine learning

Answer 10

The use if statistical analyses to enable computers to learn with data, without having been explicitly programmed

Question 11

Natural language processing

Answer 11

The use of artificial intelligence to support interactions between computers and human languages, including speech recognition

Question 12

Industry 4.0

Answer 12

Delivers 4 primary business benefits

Increased productivity

Enhanced quality

Increase flexibility

Increased speed

Question 13

Platformication

Answer 13

Allow multiple participants to connect and interact with one another in order to create and exchange value

Question 14

Business benefits with cloud computing

Answer 14

Reduced operating costs
Improved operational efficiency
Improved customer service
Improved flexibility and scalability
Enhanced disaster recovery/business continuity processes

Question 15

Bank payment obligation

Answer 15

Is an irrevocable undertaking given by one bank to another that payment shall be made on a specified date after a successful electronic matching of data according to an industry-wide set of rules.

Governed by URBPO

Mainly providing assistance to transactions conducted on open account.