Deck 10: Enterprise Systems and Applications

Question 1

Companies use IT systems to manage the ______________ which starts with the acquisition of raw materials or the procurement purchase) of products and proceeds through manufacture, transport, and delivery-and the disposal or recycling of products.

A) Strategic planning process
B) Sales process
C) Product production
D) Supply chain

Answer 1

D

Question 2

Organizations continue to run older business systems, called ______________ because they form the core of mission-critical computing systems.

A) Reduced-function IT
B) Last gen software
C) Legacy systems
D) Bloat-ware

Answer 2

C

Question 3

Enterprise systems help managers and companies improve their performance by enabling them to __________.

A) Distribute data and periodic reports via e-mail internally to authorized users
B) Integrate internal business processes and improve collaboration with external business partners
C) Consolidate data stores into a central data repository.
D) Outsource business processes to SaaS vendors and eliminate waste.

Answer 3

B

Question 4

With __________, supply chain partners collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them.

A) CPFR systems
B) ERP systems
C) KM systems
D) SCM software

Question 5

Enterprise systems are integrated ISs that support core business processes and functions. How is integration achieved?

A) Integration is achieved by connecting wired and wireless computer networks so they can share applications.
B) Integration is achieved by outsourcing to vendors that replace stand-alone ISs with a single IS.
C) Integration is achieved by linking databases and data warehouses so they can share data.
D) Integration is achieved by using cloud computing.

Question 6

Many ERP systems incorporate __________________ principles, which involve minimizing all forms of waste.

A) Eco-Tech
B) Cost-centered
C) Lean manufacturing
D) Profit-focused

Question 7

Which is not one of the reasons why companies might need to migrate from legacy systems to enterprise systems?

A) Legacy systems have high maintenance costs.
B) Monolithic legacy architectures are inflexible.
C) Legacy systems are hardwired by predefined process flows making integration with Internet-based apps difficult or impossible.
D) Enterprise systems require retraining of end users whose productivity will slow initially as they adjust to a new way of doing their jobs.

Question 8

Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to __________.

A) Fraud
B) Compliance failures
C) Supply chain inefficiencies
D) Quality control failures

Question 9

When companies need to update mission critical computing systems, they often turn to ______________________ which integrate core business process and functions.

A) Legacy systems
B) Enterprise information systems or enterprise systems
C) Network solutions
D) Custom built software apps

Question 10

Why are ERP systems strategic weapons for food manufacturers?

A) The threats and potential costs associated with food safety have decreased because of data transparency.
B) ERP systems have lowered global barriers to entry into the food industry.
C) ERP systems are needed for controlling costs, managing inventory, and meeting government regulations given the food industry's margin pressures.
D) ERP systems are needed to monitor competitors' business practices and quickly respond to them.

Question 11

Implementing an enterprise system is challenging because it requires extensive organizational changes. Which of the following was not one of the required changes identified in your textbook?

A) Redesign of business processes
B) Increased size of IT staff and technical personal
C) Changes in how people perform their jobs
D) Integration of many types of information systems

Question 12

Lessons learned from ERP failures include each of the following except:

A) Several of the best companies have suffered devastating consequences from ERP failures that had led to multi-million dollar losses, bankruptcy, or lawsuits.
B) Most often, ERP failures are eventually fixed and remain in use, which gives the false impression that the ERP was successful from the start.
C) The success-as well as failure-of ERP depends on organizational and technological factors that occur prior to, during, and after the implementation.
D) Vendor blogs, white papers, and YouTube posts are good sources of objective data for selecting a compatible ERP solution.

Question 13

__________ are commercial software packages that integrate business processes, including supply chains, manufacturing, financial, human resources, budgeting, sales, and customer service.

A) CPFR systems
B) ERP systems
C) KM systems
D) SCM software

Question 14

The greatest challenges when implementing enterprise systems are due to _____.

A) The technologies
B) Vendors
C) Process and change management
D) End-users

Question 15

Despite potential benefits, not all companies invest in ERP if they cannot meet requirements or overcome the challenges. Which of the following is not one of those requirements or challenges?

A) Applications must be tightly aligned with well-defined and designed business processes.
B) Initial costs to purchase or lease and set up the ERP are very low, but maintenance might be extremely high.
C) Initial costs to purchase or lease and set up the ERP may be extremely high.
D) Apps may be too complex for employees to use correctly to improve efficiency and ROI.

Question 16

Business-to-business integration B2Bi) is vital for efficient and accurate flow of data across internal ISs and external business partners. B2Bi and secure data exchange over the Internet is done through __________.

A) Wireless routers
B) B2B gateways
C) Data sources
D) Enterprise application integration EAI) middleware

Question 17

__________ is the ability to thrive in a changing environment, which can be achieved by streamlining processes for quick response.

A) Agility
B) Scalability
C) Reengineering
D) Collaborative planning

Question 18

What is the first step toward becoming an agile manufacturer?

A) Reengineer financial business processes
B) Develop the means to monitor the marketplace
C) Develop new products and services for current and prospective customers
D) Implement inventory tracking systems

Question 19

Typically, how are ERP systems acquired?

A) By purchasing or leasing packaged software
B) Built in-house
C) Built with proprietary software
D) Custom built by consulting companies and vendors

Question 20

Each of the following describes ERP systems except:

A) ERP apps interface with business partners through a B2B gateway, but cannot interface with legacy apps.
B) From a technology perspective, ERP is the software infrastructure that links an enterprise's internal apps and supports its external business processes.
C) ERP apps are modular, and the modules are integrated with each other to expand capabilities.
D) Departments can easily stay informed of what's going on in other departments that impact its operations or performance.

Question 21

What is the purpose of frequent purchase programs offered by airlines, supermarkets, credit card issuers, retailers, casinos, and other companies?

A) To track customers for CRM purposes
B) To build customer loyalty to improve financial performance
C) To deter customer attrition
D) All of the above

Question 22

Products that are returned make up what is called the __________.

A) Reverse supply chain
B) Return logistics
C) Backflow
D) Reorder fulfillment

Question 23

Accounting, inventory management, and shipping are part of order fulfillment and referred to as __________ operations.

A) Back-office
B) Customer-facing
C) Front-office
D) Logistics

Question 24

The most common solution to supply chain uncertainties is to build inventories or __________ as insurance.

A) Safety stock
B) Stock outs
C) Continuous replenishment
D) Restocking

Question 25

Apple's iPhone and iPod are best examples of __________ business strategies because demand was so high that many customers were even willing to camp out on sidewalks to guarantee getting one on the day of their releases.

A) customer-centric
B) product-centric
C) upselling
D) cross-selling

Question 26

A limitation of enterprise systems is that finance processes cannot be totally automated.

Question 27

Companies use IT systems to manage the supply chain which starts with the acquisition of raw materials or the procurement purchase) of products and proceeds through manufacture, transport, and delivery-and the disposal or recycling of products.

Question 28

Efficient, effective supply chains are fully dependent on SCM software, which depends on __________.

A) EFT
B) ERP
C) up-to-date and accurate data
D) RFID

Question 29

Enterprise systems allow workers to access and analyze real-time information and transaction processes across the entire organization.

Question 30

Retaining customers that generate revenues in excess of the costs of customer service, returns, promotional items, and the like are critical; and are the underlying reason for __________.

A) EDI
B) ERP
C) CRM
D) SCM

Question 31

__________ is a set of business practices designed to improve the ability to predict and coordinate with supply chain partners.

A) B2B e-commerce
B) Continuous replenishment
C) Collaborative planning, forecasting, and replenishment CPFR)
D) Vendor managed inventory VMI)

Question 32

Variability in demand in the supply chain is amplified as orders move up the supply chain. This phenomenon is called __________.

A) Market shifts
B) The bullwhip effect
C) Continuous replenishment
D) Demand forecasting

Question 33

Data transfer between companies is done using __________, which is a communication standard that enables the electronic transfer of routine documents, such as purchase orders, between business partners.

A) RFID
B) collaborative planning, forecasting, and replenishment CPFR)
C) vendor managed inventory VMI)
D) electronic data interchange EDI)

Question 34

Supply chain collaboration can increase profit margins by as much as __________ percent for supply chain partners, which is a significant improvement.

A) 3
B) 6
C) 9
D) 12

Question 35

Attracting and acquiring new customers is estimated to costs banks roughly __________ per new customer.

A) $10
B) $25
C) $50
D) $100

Question 36

There have been many CRM failures reported in the media. Major issues relating to CRM failures include each of the following except:

A) Customers rejecting loyalty programs or attempts to build loyalty.
B) Failure to identify and focus on specific business problems that the CRM can solve.
C) Lack of active senior management sponsorship.
D) Trying to automate a poorly defined business process in the CRM implementation.

Question 37

__________ is a supply chain relationship in which a vendor continuously monitors the inventory of a retailer or distributor and automatically replenishes their inventory when levels hit the re-order point.

A) Safety stock
B) Stockouts
C) Continuous replenishment
D) Bullwhip effect

Question 38

The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as__________.

A) Produce-to-stock
B) Build-to-order
C) JIT
D) Safety stock

Question 39

Supply chains involve three main flows. Which of the following is not one of those main flows?

A) Financial flow
B) Resource flow
C) Information flow
D) Material or product flow

Question 40

According to the loyalty effect, a five percent reduction in customer attrition can improve profits by as much as __________ percent.

A) 5
B) 10
C) 15
D) 20

Question 41

CPFR is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners.

Question 42

An ERP interfaces with legacy applications through an) __________ layer.

Question 43

__________ connect the ERP in the enterprise to external business partners.

Question 44

The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as ___________________.

Question 45

Business-to-business integration B2Bi) is vital for efficient and accurate flow of data across internal ISs and external business partners. B2Bi and secure data exchange over the Internet is done through Enterprise application integration EAI) middleware

Question 46

Companies use IT systems to manage the _____________ which starts with the acquisition of raw materials or the procurement purchase) of products and proceeds through manufacture, transport, and delivery-and the disposal or recycling of products.

Question 47

The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as build-to-order.

Question 48

SCM is the software infrastructure that links an enterprise's internal applications and supports its external business processes.

Question 49

Many ERP systems incorporate Eco-Tech ET) principles, which involve minimizing all forms of waste.

Question 50

Organizations are implementing CRM systems to meet requirements of the Bioterrorism Act and other regulations for accurate record keeping.

Question 51

Many ERP systems incorporate __________________ principles, which involve minimizing all forms of waste.

Question 52

The most common solution to supply chain uncertainties is to build inventories or safety stock as insurance, but that can cause the bullwhip effect in the supply chain.

Question 53

The journey that a product travels starting with raw material suppliers onto manufacturers or assemblers, then forward to distributors and retail sales shelves and ultimately to customers is its product life cycle.

Question 54

CPFR systems generate demand forecasts for a planning period, such as a quarter, month, or week.

Question 55

With __________ systems, suppliers and retailers collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them.

Question 56

Database vendors such as Oracle and IBM are also enterprise system vendors.

Question 57

In a survey conducted by Food Engineering magazine, the top concern of the agri-food industry was food safety in large part because worldwide distribution systems have increased the risk and range of contaminated food entering the food supply.

Question 58

CRM software enabled Travelocity to analyze clickstream data and discover how customers use their Web site. This information is leveraged to provide meaningful personalized messages in real-time, that is, while customers are using the site.

Question 59

Older information systems IS), called __________, have been built with various outdated technologies.

Question 60

According to management guru Peter Drucker, "Those companies who know their customers, understand their needs, and communicate intelligently with them will always have a competitive advantage over those that don't."

Question 61

Identify and discuss four of the steps in the order fulfillment process.

Question 62

Why do companies migrate to enterprise systems from their existing legacy systems? List and briefly describe three reasons.

Question 63

The __________ occurs when companies significantly cut or add inventories because even small increases in demand can cause a big increase in the need for parts and materials further down the supply chain.

Question 64

_________ refers to the methodologies and software tools to leverage customer information in order to achieve customer loyalty and profits, deter customer attrition, upsell, cross-sell, and reduce inefficiencies that waste advertising dollars.

Question 65

Identify and briefly describe the three types of flows in supply chains.

Question 66

The transfer of data and document between supply chain partners is done using __________, which is a communication standard.

Question 67

List and describe three types of enterprise systems.

Question 68

Why are ERP systems worth their cost? That is, how do companies justify ERP investments?