BUS 365 Week 8 Quiz
Content
BUS 365 Week 8 Quiz – Strayer
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Quiz 7 Chapter 10
Enterprise Information Systems
Multiple Choice
1. Typically, as business strategies and technologies changed, older legacy systems
were:
a) modified repeatedly and patched to the point where they just could not be modified
anymore.
b) immediately replaced with the latest software, hardware, and network technologies
c) gradually replaced with cloud computing solutions.
d) interfaced with newer information technologies so they could exchange data
without limitations.
2. 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.
3. The greatest challenges when implementing enterprise systems are due to _____.
a) the technologies
b) vendors
c) process and change management
d) end-users
4. Under Armour Inc., the originator of performance apparel, was having had sharp
spikes in orders. The company reduced the cost and effort of their order fulfillment
process by replacing manual processes with __________ that provide data about
resource availability and delivery dates.
a) available-to-promise (ATP) capabilities
b) enterprise systems
c) information silos
d) customer relationship management (CRM) capabilities
5. 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) seamlessly share real-time data internally among departments and with external
business partners.
c) consolidate data stores into a central data repository.
d) outsource business processes to SaaS vendors and eliminate waste.
6. Prior to selecting and implementing an ERP or other enterprise system, it’s essential
that a company identify the _____.
a) problems to be solved
b) goals to be achieved and type of support the IS is to provide
c) problems to be solved, goals to be achieved, and type of support the IS is to provide
d) cost of implementation and maintenance
7. __________ 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
8. __________ 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
9. __________ help organizations identify, select, organize, disseminate, preserve,
and share information and expertise.
a) CPFR systems
b) ERP systems
c) KM systems
d) SCM software
10. With __________, 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.
a) CPFR systems
b) ERP systems
c) KM systems
d) SCM software
11. 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.
12. Characteristics of enterprise systems include all of the following except:
a) Because of their complexity, enterprise systems are leased or licensed from vendors
and customized with support from IT personnel who are familiar with their company's
business processes.
b) There is a trend toward ERP as a service, which is increasing.
c) Enterprise systems automated existing business processes to minimize disruption
and training costs.
d) To simplify and reduce the high cost of the ERP software selection process, there is
an annual ERP Vendor Shootout to help ERP selection teams at companies with
manufacturing, distribution, or project-oriented requirements.
13. 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.
14. 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
15. 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.
16. 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
17. 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
18. 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.
19. 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) Selecting the appropriate ERP is time-consuming, complex, and expensive.
d) Apps may be too complex for employees to use correctly to improve efficiency and
ROI.
20. 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
21. 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
22. Products that are returned make up what is called the __________.
a) reverse supply chain
b) return logistics
c) backflow
d) reorder fulfillment
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
24. 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
25. 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
26. The most common solution to supply chain uncertainties is to build inventories or
__________ as insurance.
a) safety stock
b) stockouts
c) continuous replenishment
d) restocking
27. __________ 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
28. 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
29. 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
30. __________ is a set of data-driven business processes 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)
31. 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)
32. Attracting and acquiring new customers is estimated to costs banks roughly
__________ per new customer.
a) $10
b) $25
c) $50
d) $100
33. 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
34. 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
35. 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
36. 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
37. Which is not a characteristic of CRM?
a) CRM is an enterprisewide effort to acquire and retain profitable customers.
b) An objective of CRM is to retain all customers through excellent and personalized
customer service and perks.
c) CRM focuses on building long-term, sustainable customer relationships for the
purpose of increasing the company’s profitability.
d) CRM is basically a simple idea, which is to treat different customers differently
according to the current or potential value to the company.
38. 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.
39. Harrah’s Entertainment Inc. treats its customers differently. The more a customer
spends in a casino, the more rewards the customer gets. Harrah’s analyses customer
data and assigns a value to each customer based on the results of __________.
a) customer segmentation
b) payoff ratios
c) NPV
d) data mining
40. Knowledge management is an important enterprise system for each of the
following reasons except:
a) Forrester Research and IBM estimated that up to 85 percent of a company’s
knowledge is not stored in databases.
b) Knowledge is dispersed in social media, e-mail, texts, intranets, and on individual
computers and mobile devices.
c) Knowledge typically is highly structured and needs to be shared.
d) Knowledge is much more valuable than data and information, but it’s more
ephemeral.
41. Which of the following statements about knowledge management systems (KMS)
is false?
a) KMSs help an organization cope with rapid change and downsizing by making
expertise of the organization’s human capital widely accessible.
b) KMS are being built, in part, from increased pressure to maintain a well-informed,
productive workforce.
c) With a KMS, an organization is able to capitalize on the knowledge and experience
of employees worldwide.
d) Knowledge is structured to increase its
42. __________ are interactive systems used by employees to find and connect with
colleagues who possess the expertise needed to solve specific, critical business
problems quickly.
a) Knowledge systems
b) Expert location systems (ELSs)
c) Expert systems
d) Electronic document management systems
43. __________ systems support the search for and sharing of organizational
expertise, decision making, and collaboration at the organization level regardless of
location.
a) KM
b) ERP
c) CRM
d) SCM
44. Which is an example of knowledge?
a) A map giving detailed driving directions from one location to another.
b) An up-to-the-minute traffic bulletin along the freeway that indicates a traffic
slowdown due to construction.
c) Awareness of an alternative, back-roads route to avoid traffic and construction in
order to reach a destination as quickly as possible.
d) All of the above.
45. Why does a functioning KMS have a cyclical life cycle?
a) Knowledge is continually being created and that new knowledge must be placed in
context and stored so that it is actionable.
b) Knowledge has a short useful life span and needs to be replaced.
c) As knowledge bases increase in size, they become less useful because the
knowledge cannot be disseminated effectively.
d) Knowledge tends to be categorized incorrectly initially, and needs to be refined to
become useful.
True/False
46. The payoff from the implementation of an SAP ERP at Under Armour was an
increase in its top line--growth in sales--and bottom line--growth in net income.
47. Enterprise systems allow workers to access and analyze real-time information and
transaction processes across the entire organization.
48. A limitation of enterprise systems is that finance processes cannot be totally
automated.
49. SCM is the software infrastructure that links an enterprise’s internal applications
and supports its external business processes.
50. CPFR is a set of data-driven business processes designed to improve the ability to
predict and coordinate with supply chain partners.
51. In a survey conducted by Food Engineering magazine, the top concern of the agrifood industry was food safety in large part because worldwide distribution systems
have increased the risk and range of contaminated food entering the food supply.
52. Organizations are implementing CRM systems to meet requirements of the
Bioterrorism Act and other regulations for accurate record keeping.
53. Database vendors such as Oracle and IBM are also enterprise system vendors.
54. 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.
55. 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.
56. CPFR systems generate demand forecasts for a planning period, such as a quarter,
month, or week.
57. 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."
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.
59. Having knowledge implies that it can be used to solve a problem, whereas having
information does not.
60. KM systems are developed using communication and collaboration, and storage
and retrieval technologies.
Short Answer
61. Older information systems (IS), called __________, have been built with various
outdated technologies.
62. 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.
63. __________ systems help organizations identify, select, organize, disseminate,
and share information and expertise.
64. An ERP interfaces with legacy applications through a(n) __________ layer.
65. __________ connect the ERP in the enterprise to external business partners.
66. 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.
67. The transfer of data and document between supply chain partners is done using
__________, which is a communication standard.
68. CRM is an enterprisewide effort to acquire and retain __________ customers.
69. __________ is unstructured, and has strong experiential and reflective elements
that distinguish it from information.
70. __________ are interactive and help employees find and connect with colleagues
who possess the expertise required for specific problems—whether they are across the
country or across the room— to solve specific, critical business problems quickly.
Essay
71. List and describe three types of enterprise systems.
72. Why do companies migrate to enterprise systems from their existing legacy
systems? List and briefly describe three reasons.
73. Why are ERP systems worth their cost? That is, how do companies justify ERP
investments?
74. Identify and briefly describe the three types of flows in supply chains.
75. Identify and discuss four of the steps in the order fulfillment process.
Click on the Link Below to Purchase A+ Graded Course Material
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Quiz 7 Chapter 10
Enterprise Information Systems
Multiple Choice
1. Typically, as business strategies and technologies changed, older legacy systems
were:
a) modified repeatedly and patched to the point where they just could not be modified
anymore.
b) immediately replaced with the latest software, hardware, and network technologies
c) gradually replaced with cloud computing solutions.
d) interfaced with newer information technologies so they could exchange data
without limitations.
2. 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.
3. The greatest challenges when implementing enterprise systems are due to _____.
a) the technologies
b) vendors
c) process and change management
d) end-users
4. Under Armour Inc., the originator of performance apparel, was having had sharp
spikes in orders. The company reduced the cost and effort of their order fulfillment
process by replacing manual processes with __________ that provide data about
resource availability and delivery dates.
a) available-to-promise (ATP) capabilities
b) enterprise systems
c) information silos
d) customer relationship management (CRM) capabilities
5. 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) seamlessly share real-time data internally among departments and with external
business partners.
c) consolidate data stores into a central data repository.
d) outsource business processes to SaaS vendors and eliminate waste.
6. Prior to selecting and implementing an ERP or other enterprise system, it’s essential
that a company identify the _____.
a) problems to be solved
b) goals to be achieved and type of support the IS is to provide
c) problems to be solved, goals to be achieved, and type of support the IS is to provide
d) cost of implementation and maintenance
7. __________ 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
8. __________ 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
9. __________ help organizations identify, select, organize, disseminate, preserve,
and share information and expertise.
a) CPFR systems
b) ERP systems
c) KM systems
d) SCM software
10. With __________, 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.
a) CPFR systems
b) ERP systems
c) KM systems
d) SCM software
11. 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.
12. Characteristics of enterprise systems include all of the following except:
a) Because of their complexity, enterprise systems are leased or licensed from vendors
and customized with support from IT personnel who are familiar with their company's
business processes.
b) There is a trend toward ERP as a service, which is increasing.
c) Enterprise systems automated existing business processes to minimize disruption
and training costs.
d) To simplify and reduce the high cost of the ERP software selection process, there is
an annual ERP Vendor Shootout to help ERP selection teams at companies with
manufacturing, distribution, or project-oriented requirements.
13. 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.
14. 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
15. 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.
16. 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
17. 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
18. 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.
19. 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) Selecting the appropriate ERP is time-consuming, complex, and expensive.
d) Apps may be too complex for employees to use correctly to improve efficiency and
ROI.
20. 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
21. 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
22. Products that are returned make up what is called the __________.
a) reverse supply chain
b) return logistics
c) backflow
d) reorder fulfillment
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
24. 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
25. 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
26. The most common solution to supply chain uncertainties is to build inventories or
__________ as insurance.
a) safety stock
b) stockouts
c) continuous replenishment
d) restocking
27. __________ 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
28. 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
29. 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
30. __________ is a set of data-driven business processes 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)
31. 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)
32. Attracting and acquiring new customers is estimated to costs banks roughly
__________ per new customer.
a) $10
b) $25
c) $50
d) $100
33. 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
34. 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
35. 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
36. 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
37. Which is not a characteristic of CRM?
a) CRM is an enterprisewide effort to acquire and retain profitable customers.
b) An objective of CRM is to retain all customers through excellent and personalized
customer service and perks.
c) CRM focuses on building long-term, sustainable customer relationships for the
purpose of increasing the company’s profitability.
d) CRM is basically a simple idea, which is to treat different customers differently
according to the current or potential value to the company.
38. 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.
39. Harrah’s Entertainment Inc. treats its customers differently. The more a customer
spends in a casino, the more rewards the customer gets. Harrah’s analyses customer
data and assigns a value to each customer based on the results of __________.
a) customer segmentation
b) payoff ratios
c) NPV
d) data mining
40. Knowledge management is an important enterprise system for each of the
following reasons except:
a) Forrester Research and IBM estimated that up to 85 percent of a company’s
knowledge is not stored in databases.
b) Knowledge is dispersed in social media, e-mail, texts, intranets, and on individual
computers and mobile devices.
c) Knowledge typically is highly structured and needs to be shared.
d) Knowledge is much more valuable than data and information, but it’s more
ephemeral.
41. Which of the following statements about knowledge management systems (KMS)
is false?
a) KMSs help an organization cope with rapid change and downsizing by making
expertise of the organization’s human capital widely accessible.
b) KMS are being built, in part, from increased pressure to maintain a well-informed,
productive workforce.
c) With a KMS, an organization is able to capitalize on the knowledge and experience
of employees worldwide.
d) Knowledge is structured to increase its
42. __________ are interactive systems used by employees to find and connect with
colleagues who possess the expertise needed to solve specific, critical business
problems quickly.
a) Knowledge systems
b) Expert location systems (ELSs)
c) Expert systems
d) Electronic document management systems
43. __________ systems support the search for and sharing of organizational
expertise, decision making, and collaboration at the organization level regardless of
location.
a) KM
b) ERP
c) CRM
d) SCM
44. Which is an example of knowledge?
a) A map giving detailed driving directions from one location to another.
b) An up-to-the-minute traffic bulletin along the freeway that indicates a traffic
slowdown due to construction.
c) Awareness of an alternative, back-roads route to avoid traffic and construction in
order to reach a destination as quickly as possible.
d) All of the above.
45. Why does a functioning KMS have a cyclical life cycle?
a) Knowledge is continually being created and that new knowledge must be placed in
context and stored so that it is actionable.
b) Knowledge has a short useful life span and needs to be replaced.
c) As knowledge bases increase in size, they become less useful because the
knowledge cannot be disseminated effectively.
d) Knowledge tends to be categorized incorrectly initially, and needs to be refined to
become useful.
True/False
46. The payoff from the implementation of an SAP ERP at Under Armour was an
increase in its top line--growth in sales--and bottom line--growth in net income.
47. Enterprise systems allow workers to access and analyze real-time information and
transaction processes across the entire organization.
48. A limitation of enterprise systems is that finance processes cannot be totally
automated.
49. SCM is the software infrastructure that links an enterprise’s internal applications
and supports its external business processes.
50. CPFR is a set of data-driven business processes designed to improve the ability to
predict and coordinate with supply chain partners.
51. In a survey conducted by Food Engineering magazine, the top concern of the agrifood industry was food safety in large part because worldwide distribution systems
have increased the risk and range of contaminated food entering the food supply.
52. Organizations are implementing CRM systems to meet requirements of the
Bioterrorism Act and other regulations for accurate record keeping.
53. Database vendors such as Oracle and IBM are also enterprise system vendors.
54. 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.
55. 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.
56. CPFR systems generate demand forecasts for a planning period, such as a quarter,
month, or week.
57. 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."
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.
59. Having knowledge implies that it can be used to solve a problem, whereas having
information does not.
60. KM systems are developed using communication and collaboration, and storage
and retrieval technologies.
Short Answer
61. Older information systems (IS), called __________, have been built with various
outdated technologies.
62. 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.
63. __________ systems help organizations identify, select, organize, disseminate,
and share information and expertise.
64. An ERP interfaces with legacy applications through a(n) __________ layer.
65. __________ connect the ERP in the enterprise to external business partners.
66. 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.
67. The transfer of data and document between supply chain partners is done using
__________, which is a communication standard.
68. CRM is an enterprisewide effort to acquire and retain __________ customers.
69. __________ is unstructured, and has strong experiential and reflective elements
that distinguish it from information.
70. __________ are interactive and help employees find and connect with colleagues
who possess the expertise required for specific problems—whether they are across the
country or across the room— to solve specific, critical business problems quickly.
Essay
71. List and describe three types of enterprise systems.
72. Why do companies migrate to enterprise systems from their existing legacy
systems? List and briefly describe three reasons.
73. Why are ERP systems worth their cost? That is, how do companies justify ERP
investments?
74. Identify and briefly describe the three types of flows in supply chains.
75. Identify and discuss four of the steps in the order fulfillment process.
