Chapter 7

Aggregator
Web sites that provide collections of content from the Web
AJAX
A Web development technique that allows portions of Web pages to reload with fresh data rather than requiring the entire Web page to reload
blog (or weblog)
A personal Web site, open to the public, in which the site creator expresses feelings or opinions with a series of chronological entries.
blogosphere
The term for the millions of blogs on the Web
crowdsourcing
The process of taking a job traditionally performed by an employee or consultant and outsourcing it to an undefined group of people in the form of an open call.
mashup
Web site that takes different types of content from other Web sites and mixes them together to create a new kind of content.
netcasting
The distribution of digital media via syndication feeds for playback on digital media players and personal computers.
podcasting
The distribution of digital audio media via syndication feeds for playback on digital media players and personal computers.
printing on demand
Customized printing done in small batches
really simple syndication (RSS)
A technology that allows users to receive the information they want, when they want it, without having to surf thousands of Web sites.
social commerce
A type of electronic commerce that uses social media to assist in the online buying and selling of products and services.
social networking sites
Web sites that allow users to upload their content to the Web in the form of text, voice, images, and videos
tag
A keyword or term that describes a piece of information
videocasting
The distribution of digital video media via syndication feeds for playback on digital media players and personal computers.
web 2.0
A loose collection of information technologies and applications, plus the Web sites that use them.
web 2.0 media
Any Web site that provides user-generated media content, and promotes tagging, rating, commenting, and other interactions among users and their media contributions.
wiki
A Web site on which anyone can post material and make changes to other material.
ad hoc (on-demand) reports
Nonroutine reports that often contain special information that is not included in routine reports
batch processing
TPS that processes data in batches at fixed periodic intervals
comparative reports
Reports that compare performances of different business units or time periods
computer-integrated manufacturing (CIM)
An information system that integrates various automated factory systems
drill-down reports
Reports that show a greater level of detail than is included in routine reports.
enterprise application integration (EAI) system
A system that integrates existing systems by providing layers of software that connect applications together
enterprise resource planning (ERP) system
Information system that takes a business process view of the overall organization to integrate the planning, management, and use of all of an organization’s resources, employing a common software platform and database.
ERP II systems
Interorganizational ERP systems that provide Web-enabled links between a company’s key business systems (such as inventory and production) and its customers, suppliers, distributors, and others
exception reports
Reports that include only information that exceeds certain threshold standards
functional area information system (FAIS)
A system that provides information to managers (usually mid-level) in the functional areas, in order to support managerial tasks of planning, organizing, and controlling operations.
key-indicator reports
Reports that summarize the performance of critical activities
online transaction processing (OLTP)
TPS that processes data after transactions occur, frequently in real time.
routine reports
Reports produced at scheduled intervals
transaction
Any business event that generates data worth capturing and storing in a database.
transaction processing system (TPS)
Information system that supports routine, core business transactions
analytical CRM system
CRM system that analyzes customer behavior and perceptions in order to provide actionable business intelligence
bullwhip effect
Erratic shifts in orders up and down the supply chain
bundling
A form of cross selling where an enterprise sells a group of products or services together at a lower price than the combined individual price of the products
campaign management applications
CRM applications that help organizations plan marketing campaigns that send the right messages to the right people through the right channels.
collaborative CRM system
A CRM system where communications between the organization and its customers are integrated across all aspects of marketing, sales, and customer support processes.
cross selling
The practice of marketing additional related products to customers based on a previous purchase
customer-facing CRM applications
Areas where customers directly interact with the organization, including customer service and support, sales force automation, marketing, and campaign management.
customer interaction center (CIC)
A CRM operation where organizational representatives use multiple communication channels to interact with customers in functions such as inbound teleservice and outbound telesales.
customer relationship management (CRM)
A customer-focused and customer-driven organizational strategy that concentrates on addressing customers’ requirements for products and services, and then providing high-quality, responsive service.
customer-touching CRM applications (also called electronic CRM or e-CRM)
Applications and technologies with which customers interact and typically help themselves
customer touch point
Any interaction between a customer and an organization.
distribution portals
Corporate portals that automate the business processes involved in selling or distributing products from a single supplier to multiple buyers
electronic data interchange (EDI)
A communication standard that enables the electronic transfer of routine documents between business partners
interorganizational information system (IOS)
An information system that supports information flow among two or more organizations
just-in-time (JIT) inventory system
A system in which a supplier delivers the precise number of parts to be assembled into a finished product at precisely the right time
loyalty program
Programs that offer rewards to customers to influence future behavior.
mobile CRM system
An interactive CRM system where communications related to sales, marketing, and customer service activities are conducted through a mobile medium for the purpose of building and maintaining customer relationships between an organization and its customers
on-demand CRM system
A CRM system that is hosted by an external vendor in the vendor’s data center
open-source CRM system
CRM software whose source code is available to developers and users
operational CRM system
The component of CRM that supports the front-office business processes that directly interact with customers (i.e., sales, marketing, and service).
procurement portals
Corporate portals that automate the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers.
pull model
A business model in which the production process begins with a customer order and companies make only what customers want, a process closely aligned with mass customization
push model
A business model in which the production process begins with a forecast, which predicts the products that customers will want as well as the quantity of each product. The company then produces the amount of products in the forecast, typically by using mass production, and sells, or “pushes,” those products to consumers
sales force automation (SFA)
The component of an operational CRM system that automatically records all the aspects in a sales transaction process
supply chain
The coordinated movement of resources from organizations through conversion to the end consumer
supply chain management (SCM)
An activity in which the leadership of an organization provides extensive oversight for the partnerships and processes that compose the supply chain and leverages these relationships to provide an operational advantage
supply chain visibility
The ability of all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes.
up selling
A sales strategy where the organizational representative provides to customers the opportunity to purchase higher-value related products or services in place of, or along with the consumer’s initial product or service selection
vendor-managed inventory (VMI)
An inventory strategy where the supplier monitors a vendor’s inventory for a product or group of products and replenishes products when needed.
vertical integration
Strategy of integrating the upstream part of the supply chain with the internal part, typically by purchasing upstream suppliers, in order to ensure timely availability of supplies.
business intelligence (BI)
A broad category of applications, technologies, and processes for gathering, storing, accessing, and analyzing data to help business users make better decisions.
corporate performance management (CPM)
The area of business intelligence involved with monitoring and managing an organization’s performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead, and operational costs
dashboard
A BI application that provides rapid access to timely information and direct access to management reports.
data mining
The process of searching for valuable business information in a large database, data warehouse, or data mart.
decision
A choice that individuals and groups make among two or more alternatives.
decision support systems (DSS)
Business intelligence systems that combine models and data in an attempt to solve semistructured and some unstructured problems with extensive user involvement.
geographic information system (GIS)
A computer-based system for capturing, integrating, manipulating, and displaying data using digitized maps
management
A process by which organizational goals are achieved through the use of resources
model
(in decision making) A simplified representation, or abstraction, of reality.
online analytical processing (OLAP) (or multidimensional data analysis)
A set of capabilities for “slicing and dicing” data using dimensions and measures associated with the data.
productivity
The ratio between the inputs to a process and the outputs from that process.
reality mining
Allows analysts to extract information from the usage patterns of mobile phones and other wireless devices.
a. Consumer-generated media.
The comments of consumers in the blogosphere concerning a company’s products are called ____________________.
a. Consumer-generated media.
b. Consumer-generated PR
c. Rumors
d. Reliable feedback
e. Free advertising
d. It is difficult to test the authenticity of the content due to the fact that anyone can contribute content.
The reliability of the content in Wikipedia, the online encyclopedia, is questionable because
a. All of the administrators are volunteers.
b. No author has to identify himself or herself.
c. The content is updated all the time.
d. It is difficult to test the authenticity of the content due to the fact that anyone can contribute content.
e. All of these are reasons why the content is questionable
a. Printing-on-demand companies market books for their authors. …
Which of the following statements concerning printing-on-demand as a Web 2.0 application is false?
a. Printing-on-demand companies market books for their authors.
b. New small-book printing machines reduce printing costs.
c. Printing-on-demand companies also offer distribution.
d. Free software can be used to edit and typeset text.
e. Printing-on-demand is attractive to established authors.
a. The only downside of social networks is the required bandwidth…
Which of the following statements is false?
a. The only downside of social networks is the required bandwidth.
b. Social networks take the place of traditional employee directories.
c. Social networks can be implemented on a secure platform.
d. Social networks can offer personal pages as well as business pages.
e. Social networks can be used to achieve strategic objectives.
a. Blog about the games and include his own insights about his experience
Greg still follows his high school’s lacrosse team. He set up a meeting with the coach to ask how he could help with recruiting. Which of the following Section reference 1s would make the most sense from the coach’s point of view?
a. Blog about the games and include his own insights about his experience.
b. Build a fan page in Facebook to alert alums to upcoming games.
c. Post photos of this year’s games on a photo sharing site and tag them with the name of the high school.
d. Build a wiki with other alums of their seasons.
e. Go to games and tweet about the action.
a. Social commerce
Building relationships, anticipating needs, and providing special deals for the community’s members is a function of which category of Web 2.0 applications?
a. Social commerce
b. Aggregators
c. Crowdsourcing
d. Blogs
e. Social networking
d. RSS feeds transmit a link to the full text of new content to subscribers.
Which of the following statements concerning RSS is true?
a. RSS cannot be searched.
b. Blogs cannot be part of an RSS feed.
c. A special reader is needed that must be purchased.
d. RSS feeds transmit a link to the full text of new content to subscribers.
e. RSS feeds deliver information only from news sites.
b. It has proved reliable over time.
Refer to IT’s About Business 9.2 – The Blog del Narco: The Blog del Narco provides news that isn’t reported in the Mexican news media. Yet, the Blog’s content is considered reliable. Why?
a. The blogger uses his own laptop.
b. It has proved reliable over time.
c. All these are reasons why the content is considered reliable.
d. It is reported by a college student.
e. The content in the blog is from reliable sources.
e. Wikis
Many companies are using ________ to capture updated product features and specifications.
a. RSS feeds
b. Tags
c. Netcasts
d. Blogs
e. Wikis
d. Mashup
A Web site that combines content from other Web sites to form new content is called a(n) ______.
a. E-commerce site
b. Social network
c. Aggregator
d. Mashup
e. Blog
c. The ability to predict buying habits based on real-time data
Which of the following is an advantage of social commerce over traditional e-commerce?
a. Reduced expenses
b. Processing speed
c. The ability to predict buying habits based on real-time data
d. Crowdsourcing
e. Loyalty
d. Driving to the client’s house
Greg is mowing lawns in the neighborhood for the summer. Which of the following is not an example of a transaction he has in his business?
a. Adding a new client to his list.
b. Getting paid by the client
c. Buying gas for his mower
d. Driving to the client’s house
e. Mowing a client’s lawn
c. Fielding metrics will eliminate the need for specialized coaches.
Refer to Opening Case – Is Baseball a Science?: Which of the following is false?
a. Motion-capture software can be used to determine where a fielder was standing when a ball is hit.
b. Fielding metrics can be used to evaluate players.
c. Fielding metrics will eliminate the need for specialized coaches.
d. Data collected by the motion-capture software can be used to identify fielders that have fast reaction times.
e. Standards are being developed for baseball fielding metrics.
b. Information systems are only used by large organizations.
Which of the following is false?
a. Corporate data is supplied by Transaction processing systems.
b. Information systems are only used by large organizations.
c. Information systems within an organization support internal and external processes.
d. Data from TPS systems feeds ERP systems.
e. Reports from information systems are used in all levels of the organization.
e. ERP II systems
_____ are interorganizational ERP systems that provide Web-enabled links between an organization’s key business systems and its customers, suppliers, business partners, and others.
a. Supply chain management systems
b. Transaction processing systems
c. Office automation systems
d. Functional area information systems
e. ERP II systems
c. performance standards
To effectively manage by exception (i.e., use exception reports), the company must first create:
a. user information requirements
b. a database
c. performance standards
d. best practices
e. employee evaluation guides
c. structured, business processes
Enterprise resource planning systems are very _____ software products, meaning that companies typically have to change their _____ to accommodate how the software functions.
a. structured, reporting relationships
b. unstructured, business processes
c. structured, business processes
d. unstructured, inventory control
e. structured, accounting processes
a. Customizing an ERP system is permitted.
Which of the following is true?
a. Customizing an ERP system is permitted.
b. Implementing an ERP system will maintain a competitive advantage.
c. The IT costs of an ERP implementation goes down over time.
d. Implementing an ERP system will allow a company to operate faster than their competition.
e. The benefits of an ERP implementation go down over time.
b. typically fitting an organization’s existing business processes
The characteristics of ERP systems include all of the following except:
a. providing information necessary to control the business processes of the organization
b. typically fitting an organization’s existing business processes
c. they are expensive and time-consuming
d. including a set of interdependent software modules
e. integrating the planning, management, and use of all resources of the organization
b. An organization doesn’t have to use the business processes coded into the ERP.
Which of the following is false?
a. ERP systems change an organization’s business processes.
b. An organization doesn’t have to use the business processes coded into the ERP.
c. ERP systems are time consuming to implement.
d. ERP systems require functional areas to work together.
e. Breaking down functional silos makes an organization more adaptive.
a. modern organizations are buying their suppliers in order to have more transparency along the supply chain
Trends that have led to the supply chain concept include all of the following except:
a. modern organizations are buying their suppliers in order to have more transparency along the supply chain
b. modern organizations are focusing on their core competencies
c. modern organizations are concentrating on becoming more agile and flexible
d. modern organizations are relying on other companies to supply necessary goods and services
e. modern organizations are relying on an increasing number of suppliers
c. Customer touching
A check-in kiosk at the airport would be what type of CRM application?
a. Sales
b. Outbound telesales
c. Customer touching
d. Customer facing
e. Inbound telesales
e. It reduces customer fallout
Refer to IT’s About Business 11.3- Refining the Call Center: The case discusses research that indicates that pairing callers to the call center with like-minded representatives can result in benefits. Which of the following is not one of the benefits?
a. Calls will be shorter.
b. Representatives can handle more calls.
c. Customer satisfaction will improve.
d. Fewer accounts will be canceled.
e. It reduces customer fallout.
b. it is expensive, but ongoing operating costs are low
Which of the following is not a limitation of EDI?
a. business processes may have to be restructured
b. it is expensive, but ongoing operating costs are low
c. it is inflexible
d. multiple EDI standards exist
e. it is difficult to make quick changes
e. An organization has to act on posts about itself on Tweeter and Facebook.
Refer to IT’s About Business 11.2 – An Instantaneous CRM Effort: Which of the following is true?
a. Organizations can ignore social media.
b. Organizations only need to be followed on Tweeter to be effective.
c. Tweeter is the only way to monitor customer experiences
d. Organizations can put up a Facebook fan page and customers will flock to it.
e. An organization has to act on posts about itself on Tweeter and Facebook.
c. horizontal integration
Which of the following is not a possible solution to supply chain problems?
a. vertical integration
b. building inventories
c. horizontal integration
d. the bullwhip effect
e. information sharing
b. customer relationship management systems were developed
Over time, the customer relationship with vendors has become more impersonal for all of the following reasons except:
a. consumers became mobile
b. customer relationship management systems were developed
c. the Internet grew rapidly
d. people move from farms to cities
e. supermarkets and department stores proliferated
b. to increase cycle time
Which of the following is not a goal of supply chain management?
a. to reduce uncertainty along the supply chain
b. to increase cycle time
c. to decrease inventory levels
d. to improve business processes
e. to improve customer service
d. Procurement
_____ portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.
a. Affiliate
b. Distribution
c. Corporate
d. Procurement
e. Intranet
b. virtual private network
Extranets use _____ technology to make communication over the Internet more secure.
a. telepresence
b. virtual private network
c. anti-malware
d. videoconferencing
e. voice-over IP
e. operational CRM
The sales, marketing, and service functions are part of:
a. transactional CRM
b. collaborative CRM
c. CRM
d. analytical CRM
e. operational CRM
a. One dimension of the cube is (probably) month
You’ve started an internship at the major hospital in your city. Your boss gave you ten minutes of training on the data warehouse that you have access to. The last thing she told you was to do some analysis on the Visit cube. Which of the following statements is false?
a. One dimension of the cube is (probably) month.
b. One dimension of the cube is (probably) treatment.
c. One dimension of the cube is (probably) day.
d. One dimension of the cube is (probably) doctor.
e. One dimension of the cube is (probably) patient.
d. semistructured
A company’s annual employee evaluation best fits which type of decision?
a. wisdom
b. confrontational
c. unstructured
d. semistructured
e. structured
c. unstructured and strategic planning
Computer support is least for which of the following problems?
a. structured and strategic planning
b. semistructured and strategic planning
c. unstructured and strategic planning
d. unstructured and operational control
e. semistructured and management control
d. integrating maps with spatially oriented databases and other databases
Geocoding involves:
a. accessing geographical information
b. encrypting spatial information
c. programming spatially oriented databases
d. integrating maps with spatially oriented databases and other databases
e. integrating organizational transactions with spatially oriented databases
c. digital dashboard
The management cockpit best exemplifies which type of system?
a. expert system
b. functional area information system
c. digital dashboard
d. decision support system
e. group decision support system
c. Users didn’t have the right tools to access the data.
Refer to the Opening Case – Quality Assurance at Daimler AG: Which of the following best describes Daimler’s Quality Information System (QUIS)?
a. Information was easily evaluated together.
b. QUIS was used only by garages.
c. Users didn’t have the right tools to access the data.
d. The data for diagnostics were not available.
e. The platform had excess capacity.
a. global positioning systems
Today, geographical information systems are being combined with _____ to form geospatial technologies.
a. global positioning systems
b. expert systems
c. neural networks
d. decision support systems
e. dashboards
d. Structured
Calculating gross pay for hourly workers is an example of ________ decision making.
a. Semistructured
b. Unstructured
c. Procedural
d. Structured
e. Undocumented
e. The business intelligence application runs on Adelaide’s servers
Refer to IT’s About Business 12.1 – Adelaide Brighton Cement: Adelaide Brighton Cement decided to use a hosted system called myDIALS for incident hazard and reporting. Which of the following is not a reason for their choice?
a. The hosted system involved minimal risk.
b. The BI application runs on myDIALS servers.
c. Implementing the hosted system required no modifications to Adelaide’s existing systems.
d. The hosted system was less expensive than an ERP system.
e. The business intelligence application runs on Adelaide’s servers
e. Goal-seeking analysis
_____ attempts to find the value of the inputs necessary to achieve a desired level of output.
a. Qualitative analysis
b. Sensitivity analysis
c. Simulation
d. What-if analysis
e. Goal-seeking analysis
d. Multidimensional data analysis, data mining
_____ provides users with a view of what is happening, whereas _____ addresses why it is happening.
a. Data mining, expert system
b. Multidimensional data analysis, neural networks
c. Data mining, multidimensional data analysis
d. Multidimensional data analysis, data mining
e. Multidimensional data analysis, structured query language
Over time, the customer relationship with vendors has become more personal.
False
True
Today, customers are becoming increasingly powerful.
True
The real problem with interacting with customers over the Web is that the company does not have an opportunity to make a good first impression in person.
False
CRM systems focus on marketing to masses of people.
False
CRM means that a company should interact with its customers as a group.
True
Properly designed CRM systems provide a single, enterprise wide view of each customer.
True
In the past, customer data has been located all over the company, typically in the functional areas.
True
Tweets can be used as customer touch points.
False
Transactional CRM systems provide interactive communication with the customer throughout the organization.
False
For purposes of efficiency, customer data are best stored in the functional areas of the organization.
True
Collaborative CRM systems provide interaction with customers throughout the entire organization.
True
Operational CRM systems support the front-office business processes which directly interact with customers.
True
Sales force automation is a customer-facing application.
True
If you have visited Amazon’s Web site previously and then return, Amazon recommends other books that you might like. This is called cross-selling.
True
Mobile CRM systems are targeting customers through their laptops.
False
Open-source CRM software doesn’t have as many features or functions as other DRM software.
True
Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.
False
Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
True
Sourcing from external suppliers occurs in the upstream portion of the supply chain.
False
Packaging and assembly take place in the downstream portion of the supply chain.
False
There are typically four flows in the supply chain: materials, information, returns, and financial.
True
The goal of SCM systems is to reduce friction along the supply chain.
False
The pull model is make-to-stock.
True
The push model begins with a forecast.
True
Whether forecasters overestimate or underestimate demand, the company still faces problems.
False
A major source of supply chain uncertainty is the supply forecast.
True
The most common solution to supply chain problems is building inventories.
False
Horizontal integration is a business strategy in which a company buys its suppliers.
False
Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.
False
Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents
True
Electronic data interchange is a problem for small businesses.
True
The Internet-based extranet is much less costly than proprietary networks.
True
Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s monitors that would display in the dining halls and student union.

Haya needs to decide on her CRM strategy before she can decide on her CRM systems.

Over time, the customer relationship with vendors has become more impersonal for all of the following reasons except:
customer relationship management systems were developed
a way of thinking and acting
Which of the following best describes CRM?
recognizing that there are many customer touch points
Which of the following is an important enabler of CRM?
telephone contact, e-mail, Web sites, customer visits to a store. (none of these)
Which of the following is not a customer touch point?
a 360-view
The complete data on a customer is called:
the organization’s data warehouse
Which of the following is the most important enabler of the 360-degree view of the customer across an organization?
Data consolidation and 360-degree view mean the same thing
Which of the following statements is false?
_____ systems support the front-office business processes which directly interact with customers.
Operational CRM
_____ includes those areas where customers directly interact with the company.
Customer-facing CRM
The inboard telesales, the customer calls the CIC
Which of the follow statements is false about customer interaction centers (CIC)?
The sales, marketing, and service functions are part of:
operational CRM
customer interaction centers
In _____, company representatives use multiple communication channels to support the communications preferences of customers.
_____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process.
Sales force automation
_____ is the practice of marketing additional related products to customers based on a previous purchase.
Cross-selling
AT&T sells telephone services that include local and long-distance service, voice mail service, caller ID, and digital subscriber line access to the Internet. This is a form of:
bundling
You are in the market for a small economy car. The salesperson has you drive the economy car, and then hands you the keys to a mid-size car of the same brand for you to drive. The salesperson is engaged in:
up-selling
_____ is a sales strategy where the business person will provide to customers the opportunity to purchase higher-value related products.
Up-selling
Bundling, cross-selling
_____ is a form of _____.
A check-in kiosk at the airport would be what type of CRM application?
Customer touching
FAQ
_____ are simple tools for answering repetitive customer questions.
The purpose of loyalty programs is to reward past behavior
Which of the following statements about loyalty programs is false?
_____ systems study customer behavior and perceptions to provide business intelligence.
Analytical CRM
Analytical CRM
_____ creates statistical models of customer behavior and the value of customer relationships over time. CRM
_____ is a CRM system that is hosted by an external vendor in the vendor’s data center.
On-demand CRM
increases costs for the organization
Potential problems with on-demand CRM include all of the following except:
False
A benefit of open-source CRM is that it has more functionality than in-house CRM systems
Trends that have led to the supply chain concept include all of the following except:
modern organizations are buying their suppliers in order to have more transparency along the supply chain
_____ is the ability for all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers’ production processes and transportation networks to their receiving docks.
Supply chain visibility
Inventory velocity
_____ is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
A(n) _____ refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end customers.
supply chain
upstream portion of the supply chain
A company’s suppliers, suppliers’ suppliers, and the processes for managing them is the:
internal
Packaging, assembly, or manufacturing take place in which segment of the supply chain?
downstream portion of the supply chain
A company’s organization and processes for distributing and delivering products to its final customers is the:
Distribution or dispersal takes place in which segment of the supply chain?
downstream
Material flows
_____ are the physical products, raw materials, and supplies that flow along a supply chain.
reverse flows
Returned products, recycled products, and disposal of materials or products are called:
financial flows
_____ involve money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.
Which of the following is not a goal of supply chain management?
to increase cycle time
False
Interorganizational information increases cycle time
In the _____, the production process begins with a forecast.
push model
In the _____, the production process begins with a customer order.
pull model
Which of the following is not a problem along the supply chain?
decreased cycle times
The _____ is erratic shifts in orders up and down the supply chain.
bullwhip effect
poor demand forecast, price fluctuations, order batching, rationing within the supply chain. (All of these)
The bullwhip effect comes from what?
poor supply forecast
Which of the following is not responsible for the bullwhip effect?
Which of the following is not a possible solution to supply chain problems?
horizontal integration
vendor-managed inventory
When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits that data to the company that makes the diapers. When it is necessary, the diaper company restocks the diapers in that Wal-Mart store. This process is called:
length of messages is longer
Which of the following is not a benefit of EDI?
Which of the following is not a limitation of EDI?
it is expensive, but ongoing operating costs are low
foster collaboration between and among business partners
The primary goal of extranets is to do which of the following?
Extranets use _____ technology to make communication over the Internet more secure.
virtual private network
a company and its dealers, customers, and/or suppliers
The FedEx extranet that allows customers to track the status of a package is an example of which type of extranet?
_____ portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.
Procurement
False
The functional area information systems are the most fundamental information systems in the organization.
2. The data processed by transaction processing systems provide the inputs for other organizational information systems
True
True
In general, organizations try to automate data entry as much as possible.
False
Functional information systems support the entire enterprise or major portions of it.
5. Organizational transactions are typically _____ volume, _____, and therefore _____ to computerize.
B. High, Repetitive, Easy
6. Exception reports show a greater level of detail than is included in routine reports
False
Launching a live chat capability
UPS has made effective use of information technology (IT) early on and has maintained this policy to the present. Which of the following has helped improve communication with its customer:
True
Information systems can be function-specific.
True
Historically, functional area information systems were developed independently of one another.
False
Information silos were particularly efficient when business processes crossed functional boundaries in an organization.
Data streams from ground and air radar and from the plane
One UPS application used at its Worldport Terminal facility directs planes on the ground: What does this application combine to make this possible?
True
Business processes may be located within one functional area, or may span multiple functional areas.
True
Best practices are the most successful solutions or problem-solving methods for achieving a business objective.
False
Enterprise resource planning is an enterprise wide effort to acquire and retain customers.
15. The basic idea of CRM is to treat all customers in the same excellent way
False
An application that transmits global positioning system (GPS) and package-delivery data to its dispatch planning systems
What new application is UPS testing for launching?
17. CRM means that a company should interact with its customers as a group.
False
18. Properly designed CRM systems provide a single, enterprise wide view of each customer.
True
19. Up-selling is the marketing of higher-value products or services to new or existing customers.
True
A wearable ink-ket printer
What specialized device did UPS and HP develop warehouse workers can improve sorting instructions:
21. If a salesperson tries to sell you a luxury car when you are looking for a compact car, he is engaging in cross-selling.
False
22. The goal of SCM systems is to reduce friction along the supply chain.
True
False
Cultural differences do not complicate the design of a global IOS because computer technology is standard over the entire world.
True
Sourcing or procurement takes place in the upstream segment of the supply chain.
25. The inventory effect refers to erratic shifts in orders up and down the supply chain.
False
False
Both structured processes and dynamic processes are formally defined processes.
False
Structured processes are standardized processes that involve day-to-day operations.
True or False: Placing an order is an example of a structured process.
True
True or False: Structured processes are adaptive processes that change structure rapidly and readily.
False
True or False: Dynamic processes are more specific.
False
True
Using social networking sites to generate a buzz about a company’s new product line is an example of a dynamic process.
False
Dynamic processes support operational activities.
True
A workgroup processes exists to enable workgroups to fulfill the charter, purpose, and goals of a particular group or department.
True
Lead generation and lead tracking are processes concerning the sales and marketing department.
False
Order and account tracking are business processes concerning the operations department
True
A workgroup information system is an organizational structure where a separate department is established by the organization to support and manage its information.
True
The procedures for using workgroup information systems need to be understood only by the It department of an organization.
True
Workgroup information systems typically support 10 to 100 users.
True
Enterprise processes span an organization and support activities in multiple departments.
False
The solutions to problems in an enterprise system usually involve a single department of the organization.
False
CRM is an example of a structured inter-enterprise information system.
True or False: In inter-enterprise information systems, procedures are simple and generally not documented on formalized in any way.
False
True or False: Inter-enterprise information systems support one or more inter-enterprise processes.
True
True or False: Process efficiency is a measure of the ratio of process outputs to inputs.
True
True or False: The structure of a process has no bearing on its efficiency.
False
True
Adding process resources increases process effectiveness, but it adds cost.
False
Changing the structure of a process always involves a change in resources as well, even if it it only a simple reordering of tasks.
True
Information systems improve process quality by augmenting the actions of the human who performs that activity.
True or False: An information silo is a condition that exists when data are isolated in separated information systems.
True
True
Workgroups can develop information systems for their own needs, but over time, they would result in information silos.
True or False: The problems of duplicated data, disjointed systems, limited information, and inefficiencies are solved by spreading the data across multiple databases.
False
True
Business process re-engineering is the the activity of altering and designing business processes to take advantage of new information systems.
True or False: Business process re-engineering is a quick process, but it is exceedingly expensive.
False
True or False: In the customer acquisition phase of the customer life cycle, an organization categorizes its customers according to value and attempts to win back high-value customers.
False
True
Relationship management processes increase the value of existing customers by selling them more product.
False
CRM systems incorporate accounting, manufacturing, inventory, and human resources applications.
True
The primary purpose of an ERP system is integration.
True
Enterprise resource planning is a suite of applications, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
True or False: Converting to an ERP system is not nearly as disruptive as converting to an EAI system.
False
True or False: An ERP solution consists of application programs, databases, and business process procedures, but does not contain training and consulting.
False
True or False: Choosing an ERP solution that has applications that function close to the organization’s requirements is critical to its successful implementation.
True
True
An ERP solution includes a database design as well as initial configuration data.
True or False: A trigger is a computer program stored in a database that is used to enforce business results.
False
True or False: Triggers and stored procedures are not components of an ERP solution.
False
True
he inherent processes that are defined in an ERP solution are known as process blueprints.
True
ERP vendors sometimes train an organization’s employees to become in-house trainers in training sessions called train the trainer.
True or False: Industry-specific solutions contain program and database configuration files, but not the process blueprints that apply to ERP implementations in specific industries.
False
False
Epicor and Microsoft Dynamics are the highest ranked ERP vendors in the market.
True or False: In enterprise systems, a single department manager is in charge.
False
True
Gap identification is a major task when implementing enterprise systems.
True or False: Transitioning to a new enterprise system requires careful planning and substantial training.
True
True or False: Service-oriented architecture is a software design philosophy in which activities are organized into modules of functionality that are requested and delivered over the Internet using process-oriented architecture standards.
False
True
A service provider creates a service description and publishes it using a standardized language called HyperText Markup Language (HTML).
True
Standards such as http, https, CSS3, JavaScript, and others enable programs to receive data form, and display data to, a variety of mobile and desktop devices.
False
The number of ERP solutions moving to the cloud is expected to increase because of its low cost.
finished-good inventory management
Which of the following workgroup processes is related to operations?
A. sales forecasting
B. finished-goods inventory management
C. treasury management
D. account tracking
_____ are formally defined, standardized processes that involve day-to-day operations.
structured processes
Which of the following is an example of a structured process?
A. using social media to create buzz about a new product
B. solving the problem of excessive product returns
C. purchasing raw materials
D. deciding on the location of a new store
purchasing raw materials
_____ are flexible, informal, and adaptive processes that normally involve strategic and less specific managerial and activities.
dynamic processes
Which of the following is an example of a dynamic process?
A. Nike uses Facebook and Twitter to generate buzz about its new line of running shoes.
B. Amazon.com hires customer service representatives to help customers with their online order.
C. Samsung accepts a return of a defective television from its dealer.
D. Starbucks places an order from coffee beans from its local supplier.
Nike uses Facebook and Twitter to generate a buzz about its new line of running shoes.
Which of the following is a characteristic of dynamic processes?
A. They support operational and managerial decisions and activities.
B. They are adaptive processes that change structure rapidly and readily.
C. They are standardized processes.
D. They are usually formally defined and documented.
They are adaptive processes that change structure rapidly and readily.
lead tracking
Which of the following workgroup processes is related to sales and marketing?
A. order management
B. customer support
C. lead tracking
D. accounts receivable
Which of the following workgroup processes is related to operations?
A. account tracking
B. treasury management
C. finished-goods inventory management
D. Sales forecasting
finished-goods inventory management
planning and scheduling
Which of the following workgroup processes is related to manufacturing?
A. order entry and tracking
B. planning and scheduling
C. product and brand management
D. finished-goods inventory management
account tracking
Which of the following workgroup processes is related to customer service?
A. account tracking
B. accounts payable
C. assessment
D. sales forecasting
assessment
Which of the following workgroup processes is related to human resources?
A. assessment
B. customer support
C. order management
D. lead tracking
workgroup information systems
Which of the following information system minimizes data duplication among departments?
A. personal information systems
B. workgroup information systems
C. departmental information systems
D. enterprise information systems
Which of the following statements is true regarding workgroup information systems?
A. They support 10 to 100 users.
B. They are easy to change.
C. They can be operated without training.
D. They minimize data duplication amoung departments
They support 10 to 100 users.
_____ processes span an organization and support activities in multiple departments.
enterprise
Which of the following statements about enterprise information systems is true?
A. They are very difficult to change.
B. They do not require formal training.
C. They support 10 to 100 users.
D. The procedures are not documents, but are understood within the group.
They are very difficult to change.
inter-enterprise information system
The information system that a restaurant uses to order supplies and ingredients form its suppliers is an example of a(n) _____.
Which of the following statements about a structured inter-enterprise information system is true?
A. It is flexible and easily adaptable to organizational changes.
B. Its procedures are formalized and the problem solutions affect multiple organizations.
C. It does not require users to have any formal training.
D. It increases data duplication among departments.
Its procedures are formalized and the problem solutions affect multiple organizations.
PRIDE
_____ is an example of an inter-enterprise information system?
efficiency and effectiveness
The two dimensions of process quality are _____.
_____ is a measure of the ratio of process outputs to inputs.
process efficiency
Process _____ is a measure of how well a process achieves organizational strategy.
effectiveness
controlling process flow
Information systems improve process quality by _____.
Which of the following conditions exist when data are isolated in separated information systems?
A. information overload
B. data segregation
C. information silo
D. encapsulation
information silos
data integrity
When an organization has inconsistent duplicated data, it is said to have a problem of _____.
use and store data inconsistently across separate databases
Information silos are not a problem until they begin to _____.
_____ is the activity of altering and designing business processes to take advantage of new information systems.
business process re-engineering
inherent processes
_____ are pre-designed procedures for using software products.
_____ is a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service.
customer relationship management (CRM)
marketing
Which phase of the customer life cycle focuses on sending messages to the target market to attract customer prospects?
relationship management
Which phase of the customer life cycle focuses on increasing the value of existing customers by selling more product?
Which phase of the customer life cycle categorizes customers according to value and attempt to win back high-value customers?
loss/churn
_____ is a suite of applications called modules, a database, an a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
enterprise resource planning
The primary purpose of an ERP system is _____.
integration
Enterprise application integration is _____.
a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
Which of the following statements is true of enterprise application integration?
A. It leverages existing systems, and enhances the capabilities of functional applications.
B. It prevents existing applications from communicating and sharing data.
C. It connects system “islands” via a new layer of software.
D. It leads to data duplication because each application has its own database.
It connects system “islands” via a new layer of software.
enables organizations to use existing applications
The major benefit of enterprise application integration is that it _____.
a company’s operational data
An ERP solution does not include _____.
trigger
A(n) _____ is a computer program stored within a database that runs to keep the database consistent when certain conditions arise.
program stored in a database that keeps the database consistent when certain conditions arise.
A stored procedure is a _____.
The inherent processes defined in an ERP solution are known as _____.
process blueprints
train the trainer
ERP vendors train an organization’s employees, called Super Users, to become in-house ERP trainers in training sessions called _____.
dealing with employees resistance to the new system
ERP training falls into two broad categories, one of which is training on how to use the ERP application software. Which of the following activities is a part of this category?
A. obtaining top-level management support
B. steps for using applications to accomplish the activities in processes
C. preparing the organization for change
D. dealing with employees resistance to the new system
industry-specific solutions
To reduce the substantial work that needs to be done to customize an ERP application to a particular customer, ERP vendors provide _____.
Oracle and SAP
The top two ranked ERP vendors are _____.
Microsoft Dynamics
The four major ERP products of _____ are AX, Nav, GP, and Solomon.
Baan
ERP vendor Infor acquired which of the following ERP products?
A. Epicore 9
B. Solomon
C. GP
D. Baan
Oracle
Which ERP vendor acquired PeopleSoft and Siebel?
When implementing new enterprise systems, usually the only solution for resolving process issues and providing enterprise process management is _____.
reinforce employees’ sense of self-efficiency
_____ is a major task when implementing enterprise systems.
gap identification
Which of the following is an effective technique to overcome employee resistance when implementing new enterprise systems?
A. coercing employees to learn the new system
B. paying employees straight-out for transitioning to the new system
C. training employees on the successful use of the new system
D. giving employees ultimatums and deadlines
training employees on the successful use of the new system
_____ refers to a person’s belief that he or she can be successful at his or her job.
self-efficiency
service oriented architecture
Flexible communication among distributed applications is possible because of a set of standards that support a design philosophy known as _____.
OData
_____ is one of the SOA protocols.
they cannot walk away from the revenue of lucrative support contracts that they entail.
Organizations like Oracle and SAP find it difficult to move toward low-cost cloud solutions as _____.