Management Information Systems, 15e (Laudon) Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications
1) From your reading of the chapter's opening case, Skullcandy chose enterprise resource planning software from which of the following ERP vendors !) "racle #) S!P $) %#& ) &icrosoft E) %nfor (loal Solutions !nswer* # ifficulty* 1* Easy !!$S#* !nalytical thinking +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence 0) hich of the following provides a suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to e used y multiple functions and usiness processes !) Process management software #) ERP systems $) (roupware ) $R& software E) Supply chain management systems !nswer* # ifficulty* 0* &oderate !!$S#* %nformation technology +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence 2) Enterprise software is uilt around thousands of predefined usiness processes that reflect* !) government regulations3 #) industry enchmarks3 $) est practices3 ) cutting edge workflow analyses3 E) the firm's culture3 !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence 4) hich of the following is not true true aout enterprise systems !) Enterprise systems help firms respond rapidly to customer re5uests for information or products3 #) Enterprise system data have standardi6ed definitions and formats that are ac cepted y the entire organi6ation3 $) Enterprise software is e/pressly uilt to allow companies to mimic their uni5ue usiness practices3 1 $opyright 7 0819 Pearson Education, %nc3
) Enterprise software includes analytical tools to evaluate overall organi6ational performance3 E) Enterprise systems provide firm-wide information to help managers make etter decisions3 !nswer* $ ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence :) ;ou ;ou have een asked to implement enterprise software for a manufacturer of kitchen appliances3 hat is the first step you should take !) Rewrite the software to support the way the company's usiness processes work3 #) Select the usiness processes you wish to automate3 $) &ap the company's usiness processes to the software's usiness processes3 ) &ap the software's usiness processes to the company's usiness processes3 E) Select the functions of the system you wish to use3 !nswer* E ifficulty* 0* &oderate !!$S#* !nalytical thinking $!SE* Evaluation in terms terms of assess +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence <) hich of the following enales a company to tailor a particular aspect of enterprise software to the way a company does usiness !) $onfiguration tales #) e services3 $) ata dictionaries ) &iddleware E) (roupware !nswer* ! ifficulty* 0* &oderate !!$S#* %nformation technology +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence =) %n order to achieve ma/imum enefit from an enterprise software package, a usiness should* !) customi6e the software to match all of its usiness processes3 #) use only the processes in the software that match its own processes3 $) change the way it works to match the software's usiness processes3 ) select only the software that est matches its e/isting usiness processes3 E) retain legacy systems that est work with the software3 !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -1* .ow do enterprise enterprise systems help usinesses usinesses achieve operational e/cellence 9) %mplementing enterprise software from "racle enaled !lcoa to achieve all of the following except * !) reduce re5uisition-to-pay cycle times3 #) reduce accounts payale transaction processing3 0 $opyright 7 0819 Pearson Education, %nc3
$) centrali6e financial activities3 ) centrali6e procurement activities3 E) otain lower prices for raw materials !nswer* E ifficulty* 2* $hallenging !!$S#* !nalytical thinking +" -1* .ow do enterprise systems help usinesses achieve operational e/cellence ) Enterprise systems include analytical tools3 !nswer* >R?E ifficulty* 1* Easy !!$S#* %nformation technology +"* -1* .ow do enterprise systems help usinesses achieve operational e/cellence 18) !n enterprise system can help reduce redundant usiness processes3 !nswer* >R?E ifficulty* 1* Easy !!$S#* %nformation technology +"* -1* .ow do enterprise systems help usinesses achieve operational e/cellence 11) %dentify and descrie three ma@or enterprise applications3 !nswer* Enterprise systems, customer relationship management, and supply chain management are three enterprise applications3 Enterprise systems are ased on a suite o f integrated software modules and a common central dataase3 Enterprise systems utili6e enterprise software to support financial and accounting, human resources, manufacturing and production, and sales and marketing processes3 Enterprise systems provide many enefits including an enterprise-enaled organi6ation, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven usiness processes3 Supply chain management systems help an organi6ation etter manage its supply chain, including planning, sourcing, manufacturing, delivering, and returning items3 Supply chain management software can e categori6ed as a supply chain planning system or as a supply chain e/ecution system3 ! supply chain planning system enales a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product3 ! supply chain e/ecution system manages the flow of products through distriution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner3 Supply chain management enefits include improved customer service and responsiveness, cost reduction, and cash utili6ation3 $ustomer relationship management systems help firms ma/imi6e the enefits of their customer assets3 >hese systems capture and consolidate data from all over the o rgani6ation and then distriute the results to various systems and customer touch points across the enterprise3 $ustomer relationship management systems can e classified as operational or as an alytical3 "perational $R& refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation3 !nalytical $R& refers to customer relationship management applications dealing with the analysis of cu stomer data to provide information for improving usiness performance3 #enefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for 2 $opyright 7 0819 Pearson Education, %nc3
customer ac5uisition and retention3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -1* .ow do enterprise systems help usinesses achieve operational e/cellence 10) %dentify at least four enefits and four challenges of enterprise systems3 !nswer* #enefits include* increasing operational efficiencyA providing firm-wide information to help decision makingA standardi6ed usiness processesA greater responsiveness to customer needsA greater accuracy in fulfilling product demandA reduction of inventory and inventory costsA reduction in order-to-delivery timeA improving usiness processesA removing redundant processes and systemsA lowering costs through centrali6ed processingA and improved decision making3 $hallenges include* the e/pense of the software and related costsA the time re5uired for implementationA deep-seated technological changes re5uired, the deep-seated organi6ational changes re5uiredA overcoming organi6ational resistanceA switching costsA data cleansing work re5uired3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -1* .ow do enterprise systems help usinesses achieve operational e/cellence 12) ;ou have een hired y Santori, %nc3, a small company that imports and distriutes an %talian sparkling water3 >he company is interested in what enefits an enterprise system would ring3 ould an enterprise system e appropriate for this company hat steps would you take in determining this !nswer* !n enterprise system may e too e/pensive, although there are enterprise software packages that are availale to smaller companies3 ! hosted enterprise application might e the most economical way to implement an enterprise system3 >o determine whether this would e eneficial to Santori, % would first look at their e/isting usiness processes3 %t would e ideal to determine if their efficiency meets enchmarks in their industry and allows them to e competitive with other usinesses in their niche3 >hen % would review e/isting hosted applications to see how the applications usiness processes matched u p with Santori's3 %t would e important to compare the costs of instituting new usiness processes with the enefits and cost savings3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -1* .ow do enterprise systems help usinesses achieve operational e/cellence 14) &anufacturing and production processes include all of the following except* !) procurement3 #) materials re5uirement planning3 $) 5uality control3 ) transportation e/ecution3 E) product configuration3 !nswer* E ifficulty* 2* $hallenging !!$S#* !nalytical thinking +" -1* .ow do enterprise systems help usinesses achieve operational e/cellence
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1:) ! network of organi6ations and usiness processes for procuring raw materials, transforming these materials into intermediate and finished products, and distriuting the finished products to customers is called aBan* !) distriution channel3 #) supply chain3 $) value chain3 ) marketing channel3 E) information system3 !nswer* # ifficulty* 1* Easy !!$S#* Reflective thinking $!SE* $omprehension +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 1<) $omponents or parts of finished products are referred to as* !) upstream materials3 #) raw materials3 $) secondary products3 ) intermediate products3 E) mid-chain products3 !nswer* ifficulty* 1* Easy !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 1=) hich of the following refers to a company's suppliers, supplier's suppliers, and the processes for managing relationships with them !) Supplier's internal supply chain #) E/ternal supply chain $) ?pstream portion of the supply chain ) ownstream portion of the supply chain E) "nstream portion of the supply chain !nswer* $ ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 19) hich of the following refers to a company's organi6ations and processes for distriuting and delivering products to the final customers !) Supplier's internal supply chain #) E/ternal supply chain $) ?pstream portion of the supply chain ) ownstream portion of the supply chain E) "nstream portion of the supply chain !nswer* : $opyright 7 0819 Pearson Education, %nc3
ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 1) %f manufacturers had perfect information, they could implement a* !) hyper-efficient strategy3 #) frictionless strategy3 $) streamlined strategy3 ) ullwhip strategy3 E) @ust-in-time strategy3 !nswer* E ifficulty* 1* Easy !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 08) hy isnCt overstocking warehouses an effective solution for a prolem of low availaility !) %t does not speed product time to market3 #) %t is an inefficient use of raw materials3 $) %t increases sales costs3 ) %t increases inventory costs3 E) %t lowers fill rate3 !nswer* ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 01) hich of the following traditional solutions enales manufacturers to deal with uncertainties in the supply chain !) Safety stock #) $ontinuous replenishment $) Dust-in-time strategies ) emand planning E) Perfect information !nswer* ! ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 00) ! scheduling system for minimi6ing inventory y having components arrive e/actly at the moment they are needed and finished goods shipped as soon as they leave the assemly line est descries a strategy3 !) @ust-in-time #) frictionless $) ullwhip < $opyright 7 0819 Pearson Education, %nc3
) safety-stock E) streamlined !nswer* ! ifficulty* 1* Easy !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 02) ! distortion of information aout the demand for a produ ct as it passes from one entity to the ne/t across the supply chain is called the effect3 !) network #) ullwhip $) ripple ) whirlpool E) diffraction !nswer* # ifficulty* 1* Easy !!$S#* !pplication of knowledge +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 04) Supply chain software can e classified as either supply chain systems or supply chain systems3 !) pushA pull #) demandA continual $) upstreamA downstream ) planningA e/ecution E) maintenanceA development !nswer* ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 0:) hich of the following enales a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product !) Supply chain demand system #) Supply chain delivery system $) Supply chain optimi6ation system ) Supply chain e/ecution system E) Supply chain planning system !nswer* E ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 0<) Supply chain planning systems perform all of the following functions except: = $opyright 7 0819 Pearson Education, %nc3
!) estalish inventory levels for raw materials and finished goods3 #) identify the transportation mode to use for product delivery3 $) determine where to store finished goods3 ) determine how much product to manufacture in a given time period3 E) track the physical status of goods3 !nswer* E ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 0=) hich supply chain planning function determines how much product is needed to satisfy all customer demands !) istriution management #) Replenishment planning $) emand planning ) "rder planning E) $ustomer planning !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 09) hich of the following manages the flow of products through distriution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner !) Supply chain demand system #) Supply chain delivery system $) Supply chain planning system ) Supply chain e/ecution system E) Supply chain optimi6ation system !nswer* ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 0)Supply chain e/ecution systems provide all o f the following functions except * !) generating demand forecasts for products3 #) tracking the flow of finished goods3 $) managing materials3 ) managing warehouse operations3 E) managing the financial information involving all parties3 !nswer* ! ifficulty* 2* $hallenging 9 $opyright 7 0819 Pearson Education, %nc3
!!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 28) From your reading of the +( Electronics case study, the company implemented D! software solutions to solve what prolems !) +ack of rand recognition #) +ack of coordination among production facilities $) Poor supply chain visiility for management ) Shoddy record-keeping E) %nefficient logistics !nswer* E ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 21) ! supply chain driven y actual customer orders or purchases follows a model3 !) pull-ased #) uild-to-stock $) push-ased ) replenishment-driven E) optimi6ed !nswer* ! ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 20) ! uild-to-order supply-chain model is also called a model3 !) supply-ased #) demand-driven $) replenishment-driven ) push-ased E) market-driven !nswer* # ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 22) $oncurrent supply chains are made possile y which technology !) ERP systems #) the %nternet $) supply-chain management systems ) @ust-in-time supply-chain technologies E) e/tranets $opyright 7 0819 Pearson Education, %nc3
!nswer* # ifficulty* 1* Easy !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 24) >he usiness value of an effective supply chain manag ement system includes all of the following except: !) faster time to market3 #) cost reduction3 $) supply matched to demand3 ) improved delivery service3 E) increased inventory levels3 !nswer* ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 2:) >he ullwhip effect can e countered y* !) gloali6ation3 #) disintermediation3 $) implementing a $R&3 ) reducing information uncertainty3 E) product differentiation3 !nswer* ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 2<) !s they move through the supply chain, are transformed into finished products and shipped to retailers and customers3 !) raw materials #) intermediate products $) asic products ) natural resources E) nascent products !nswer* ! ifficulty* 1* Easy !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 2=) >he total time it takes to complete a usiness process, from start to finish, is called its time3 !) development #) cycle 18 $opyright 7 0819 Pearson Education, %nc3
$) fulfillment ) service E) actuali6ation !nswer* # ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 29) ! company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain system3 !) e/ecution #) planning $) optimi6ation ) management E) touch point !nswer* ! ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 2) Supply chain management systems are a type of enterprise system3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 48) >he upstream portion of the supply chain consists of the organi6ations and processes for distriuting and delivering products to the final customers3 !nswer* F!+SE ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 41) Supply chain inefficiencies can waste as much as 0: percent of a company's operating costs3 !nswer* >R?E ifficulty* 2* $hallenging !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 40) Safety stock acts as a uffer for the lack of fle/iility in the supply chain3 !nswer* >R?E ifficulty* 0* &oderate 11 $opyright 7 0819 Pearson Education, %nc3
!!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 42) >he ullwhip effect descries consistency and continuity in demand for a product as it passes from one entity to the ne/t across the supply chain3 !nswer* F!+SE ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 44) Supply chain e/ecution systems enale the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product3 !nswer* F!+SE ifficulty* 0* &oderate !!$S#* %nformation technology +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 4:) #efore the pre-%nternet environment, supply chain coordination was hampered y the difficulties of making information flow smoothly among different internal supply chain processes3 !nswer* >R?E ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 4<) %nefficiencies in a supply chain are primarily caused y inaccurate or untimely information3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 4=) %n a push-ased model of S$& systems, actual customer orders or purchases trigger events in the supply chain3 !nswer* F!+SE ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 49) %n a pull-ased model of S$& systems, production master schedules are ased on forecasts of demand for products3 !nswer* F!+SE 10 $opyright 7 0819 Pearson Education, %nc3
ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers 4) almart is an e/ample of a push-ased model3 !nswer* F!+SE ifficulty* 1* Easy !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers :8) >otal supply chain costs in some industries approach =: percent of the total operating udget3 !nswer* >R?E ifficulty* 2* $hallenging !!$S#* Reflective thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers :1) %dentify two classifications for supply chain software3 For each classification, identify five capailities3 !nswer* Supply chain planning systems and supply chain e/ecution systems are two classifications for supply chain software3 Supply chain planning systems enale a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product3 $apailities include order planning, advanced scheduling and manufacturing planning, demand planning, distriution planning, and transportation planning3 Supply chain e/ecution systems manage the flow of products through distriution centers and warehouses to ensure that products are delivered to the right locations3 $apailities include order commitments, final production, replenishment, distriution management, and reverse distriution3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers :0) hat additional comple/ities are faced in gloal supply chains .ow does the %nternet help in managing gloal supply chains !nswer* (loal supply chains typically span greater geographic distances and time differences than domestic supply chains and have participants from a numer of different countries3 !lthough the purchase price of many goods might e lower aroad, there are often additional costs for transportation, inventory, and local ta/es or fees3 Performance standards may vary from region to region or from nation to nation3 Supply chain management may need to reflect foreign government regulations and cultural differences3 !ll of these factors impact how a company takes orders, plans distriution, organi6es warehousing, and manages inound and outound logistics throughout the gloal markets it services3 >he %nternet helps companies manage many aspects of their gloal supply chains, including sourcing, transportation, communications, and international finance3 !s goods are eing sourced, produced, and shipped, communication is re5uired among retailers, manufacturers, contractors, agents, and logistics providers3 ith 12 $opyright 7 0819 Pearson Education, %nc3
%nternet technology, supply chain memers communicate through a e-ased system3 Firms use intranets to improve coordination among their internal supply chain processes, and they use e/tranets to coordinate supply chain processes shared with their usiness partners3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers :2) %dentify two supply chain models3 hich is etter !nswer* Push-ased and pull-ased models were discussed in the te/took3 Push-ased refers to a supply chain driven y production master schedules ased on forecasts or est g uesses of demand for products3 Pull-ased refers to a supply chain driven y actual customer orders or purchases so that memers of the supply chain produce and deliver only what customers have ordered3 Pull-ased models are etter3 ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers :4) Plant !way is an "regon-ased retailer and distriutor of trees and shrus3 >hey have hundreds of smaller nurseries ased around the country that grow the plant stock3 >he ma@ority of their usiness is conducted online3 $onsumers purchase typically small 5uantities of products online and Plant !way coordinates the shipping from the most appropriate nursery3 hat uni5ue prolems might you anticipate they have in their supply chain hat might remedy these prolems !nswer* >ypical prolems in supply chains arise from unforeseeale events3 %n a plant nursery, variations in the weather, growing season, plant diseases, crop output would e uncertainties3 "ther prolems might e interstate regulations governing plants allowed in different states, and making sure plants survive and are healthy during transportation3 %t would e very important to have up-to-date forecasting of the weather or g rowing seasons that could anticipate possile prolems, and analy6e and determine the est transportation routes3 ifficulty* 2* $hallenging !!$S#* !nalytical thinking +"* -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers ::) ! is a method of interaction with a customer, such as telephone or customer service desk3 !) point of presence #) touch point $) sales point ) client channel E) point of service !nswer* # ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -2* .ow do customer relationship management systems help firms achieve customer 14 $opyright 7 0819 Pearson Education, %nc3
intimacy :<) hich of the following would not e considered a contact point !) E-mail #) esite $) %ntranet ) Retail store E) Faceook !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy :=) modules use many of the same data, tools, and systems as $R& to enhance collaoration etween a company and its selling partners3 !) S$& #) SF! $) ER& ) R& E) PR& !nswer* E ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy :9) modules deal with issues such as setting o@ectives, employee performance management, and performance-ased compensation3 !) S$& #) SF! $) ER& ) R& E) PR& !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy :) $ustomer relationship management systems typically provide software and online tools for sales, customer service, and* !) marketing3 #) account management3 $) advertising3 ) pulic relations3 E) human resources3 !nswer* ! 1: $opyright 7 0819 Pearson Education, %nc3
ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <8) SF! modules in $R& systems provide tools for all of the following except * !) team selling3 #) territory management3 $) sales forecasting3 ) managing sales prospect and contact information3 E) managing customer service re5uests3 !nswer* E ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <1) $R& systems help usinesses achieve which of the following usiness o@ectives !) !utomated accounting processes #) !utomated production forecasts $) Faster time to market with new products and services ) Enhanced supplier intimacy E) Enhanced customer intimacy !nswer* E ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <0) $ustomer service modules in $R& systems provide tools for* !) assigning and managing customer service re5uests3 #) capturing prospect and customer data3 $) identifying profitale and unprofitale customers3 ) managing sales prospect and contact information3 E) organi6ing effective marketing campaigns3 !nswer* ! ifficulty* 1* Easy !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <2) &arketing modules in $R& systems provide tools for all of the following except * !) assigning and managing customer service re5uests3 #) capturing prospect and customer data3 $) identifying profitale and unprofitale customers3 ) 5ualifying leads3 E) identifying opportunities for cross-selling3 1< $opyright 7 0819 Pearson Education, %nc3
!nswer* ! ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <4) Selling a customer with a checking account a home improvement loan is an e/ample of* !) operational $R&3 #) direct marketing3 $) sales force automation3 ) cross-channel promotions3 E) cross-selling3 !nswer* E ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <:) &a@or $R& products typically have all of the following service capailities except: !) customer satisfaction management3 #) returns management3 $) call center help desk3 ) service analytics3 E) order management3 !nswer* E ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <<) hich of the following is an important capaility for sales processes that is found in most SF! modules in ma@or $R& software products !) Returns management #) +ead management $) $hannel promotions management ) Events management E) $ustomer satisfaction management !nswer* # ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <=) hich of the following customer relationship management applications provides analysis of customer data !) "perational $R& #) !nalytical $R& 1= $opyright 7 0819 Pearson Education, %nc3
$) "perational S$& ) !nalytical SF! E) "perational SF! !nswer* # ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <9) "perational $R& applications include tools for all of the following except * !) sales force automation3 #) call center support3 $) marketing automation3 ) customer service support33 E) calculating $+>G !nswer* E ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy <) >he difference etween push- and pull-ased models is summari6ed y which of the following slogans !) Sell what we make, not make what we sell3 #) Push what we make, not pull what we make3 $) &ake what we sell, not sell what we make3 ) Pull what we make, not push what we sell3 E) &ake what we push, not push what we sell3 !nswer* $ ifficulty* 0* &oderate !!$S#* !pplication of knowledge +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =8) hich of the following tools is used to analy6ing customer uying patterns !) $+>G #) !nalytical $R& $) "perational $R& ) emand planning E) SF! !nswer* # ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =1) hich metric is ased on the relationship etween the revenue produced y a specific 19 $opyright 7 0819 Pearson Education, %nc3
customer, the e/penses incurred in ac5uiring and servicing that customer, and the e/pected life o f the relationship etween the customer and the company !) $hurn rate #) $ustomer lifetime value $) $ost per lead ) $ost per sale E) $ustomer average value !nswer* # ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =0) >he measurement of the numer of customers who stop using or purchasing products or services from a company is called* !) switching costs3 #) churn rate3 $) $+>G3 ) switch rate3 E) turnover percentage3 !nswer* # ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =2) almart's continuous replenishment system is an e/ample of a model3 !) push-ased #) pull-ased $) enterprise-ased ) supply chain optimi6ation E) forecast-ased !nswer* # ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =4) modules in $R& systems help sales staff increase their productivity y focusing sales efforts on the most profitale customers, those who are good candidates for sales and services3 !) $ustomer #) S"! $) &arketing ) $omple/ E) SF! !nswer* E 1 $opyright 7 0819 Pearson Education, %nc3
ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =:) $R& includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation3 !) !nalytical #) Employee $) "perational ) Partner E) He/t-generation !nswer* $ ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =<) !ll $R& packages contain modules for PR& and ER&3 !nswer* F!+SE ifficulty* 1* Easy !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy ==) &a@or $R& application software vendors include "racle, S!P, and Salesforce3com3 !nswer* >R?E ifficulty* 1* Easy !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =9) $ross-selling is the marketing of complementary products to customers3 !nswer* >R?E ifficulty* 0* &oderate !!$S#* Reflective thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy =) $R& software can help organi6ations identify high-value customers for preferential treatments3 !nswer* >R?E ifficulty* 1* Easy !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy
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98) !nalytical $R& uses tools to analy6e customer data collected from the firm's customer touch points and from other sources3 !nswer* >R?E ifficulty* 0* &oderate !!$S#* %nformation technology +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy 91) %dentify and descrie the two types of customer relationship management applications3 !nswer* "perational $R& and analytical $R& are two types of $R&3 "perational $R& refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation3 !nalytical $R& refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving usiness performance3 ifficulty* 0* &oderate !!$S#* !nalytical thinking +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy 90) %dentify five enefits of customer relationship management systems3 !nswer* #enefits include* etter customer service, make call centers more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, ac5uire new profitale customers, sell additional products and services, provide customer information for developing new products, increase product utili6ation, reduce sales and marketing costs, identify and retain profitale customers, optimi6e service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitaility, respond 5uickly to market opportunities3 ifficulty* 2* $hallenging $!SE* Evaluation in terms of assess +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy 92) ;ou have een hired y $roydon Gisiting Hurse Services, whose usiness processes are all manual, paper-ased processes3 .ow might a $R& system enefit them !nswer* ! $R& system that includes patients' health records would allow any nurse to take over if another needed replacement3 !ssuming that the nurses had access via laptops or other P!s to the system, a new nurse would have instant access to the patients' needs3 >he $R& might also e ale to record which types of treatments or products customers were most interested in or gave the greatest enefit to customers, and help anticipate needs3 !dditionally, with PR& capailities, products needed y the nursing service would e more easily anticipated, ordered, and delivered3 Since the employees work in the field, or away from a central office, %nternet-ased communications might provide tools for reviewing employee performance3 ifficulty* 2* $hallenging $!SE* Evaluation in terms of assess +"* -2* .ow do customer relationship management systems help firms achieve customer intimacy
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94) hich of the following statements aout enterprise applications is not true !) Enterprise applications re5uire organi6ational learning3 #) Enterprise applications introduce Iswitching costs3I $) Enterprise applications are ased on organi6ation-wide definitions of data3 ) Enterprise applications re5uire fundamental changes in the way a usiness operates3 E) Enterprise applications are est implemented when few chan ges in usiness processes are re5uired3 !nswer* E ifficulty* 0* &oderate $!SE* !nalysis in terms of appraise +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 9:) hich of the following is not an e/ample of ne/t-generation enterprise applications !) "penravo #) Social $R& $) !pache "pen for #usiness J"F#i6) ) Salesforce3com E) D! Software !nswer* E ifficulty* 2* $hallenging $!SE* $omprehension +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 9<) Enterprise application vendors have created to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other3 !) e-usiness suites #) ERP systems $) middleware ) legacy systems E) cloud solutions !nswer* ! ifficulty* 1* Easy !!$S#* %nformation technology +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 9=) He/t-generation enterprise suites use and S"! to link to systems of customers and suppliers3 !) employee relationship management #) cross-selling $) @ust-in-time strategy ) e services E) operational $R& !nswer* 00 $opyright 7 0819 Pearson Education, %nc3
ifficulty* 2* $hallenging !!$S#* %nformation technology +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 99) ?sing social networking tools to converse with customers is called* !) analytical $R&3 #) social $R&3 $) operational $R&3 ) PR&3 E) ER&3 !nswer* # ifficulty* 1* Easy !!$S#* Reflective thinking +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 9) Enterprise application vendors are now including features, such as tools for data visuali6ation, fle/ile reporting, and ad-hoc analysis, as part of the application3 !) social media #) PR& $) ER& ) S"! E) usiness intelligence !nswer* E ifficulty* 0* &oderate !!$S#* %nformation technology +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 8) Enterprise systems re5uire fundamental changes in the way the usiness operates3 !nswer* >R?E ifficulty* 1* Easy !!$S#* %nformation technology +"* -4* hat are the challenges posed y enterprise applications, and how are enterprise applications taking advantage of new technologies 1) hat is social $R& and how is it eing used !nswer* Social $R& tools enale a usiness to connect customer conversations and relationships from social networking sites to $R& processes3 S!P, Salesforce3com and "racle $R& products now feature technology to monitor, track, and an aly6e social media activity in Faceook, +inked%n, >witter, ;ou>ue, and other sites3 For e/ample, Salesforce3com connected its system for tracking leads in the sales process with social-listening and social-media marketing tools, enaling users to tailor their social-marketing dollars to core customers and oserve the resulting comments3 %f an ad agency wants to run a targeted Faceook or >witter ad, these capailities make it possile to aim the ad specifically at p eople in the clientCs lead pipeline who are already eing tracked in the $R& system3 ?sers will e ale to view tweets as they take place in real time and perhaps uncover new leads3 >hey can also manage multiple campaigns and 02 $opyright 7 0819 Pearson Education, %nc3
compare them all to figure out which ones generate the highest click-through rates and cost per click3 ifficulty* 2* $hallenging !!$S#* !pplication of knowledgeA ritten and oral communication +" -4* hat are the challenges that enterprise applications pose, and how are en terprise applications taking advantage of new technologies 0) hat are four 5uestions that a good $R& system can help answer and how do firms use the answers to those 5uestions !nswer* Four 5uestions that a good $R& system can help answer are* J1) hat is the value of a particular customer to the firm over his or her lifetimeA J0) ho are our most loyal customers A J2) ho are our most profitale customersA and J4) hat do these profitale customers want to uy Firms use the answers to these 5uestions to ac5uire new customers, provide etter service and support to e/isting customers, customi6e their offerings more precisely to customer preferences, and provide ongoing value to retain profitale customers3 ifficulty* 0* &oderate !!$S#* !pplication of knowledgeA ritten and oral communication +" -2* .ow do customer relationship management systems help firms achieve customer intimacy 2) hat is a PR& module .ow does it differ from an ER& module !nswer* >he more comprehensive $R& packages contain modules for partner relationship management JPR&) and employee relationship management JER&). PR& uses many of the same data, tools, and systems as customer relationship management to enhance collaoration etween a company and its selling partners3 %f a company does not sell directly to customers ut rather works through distriutors or retailers, PR& helps these channels sell to customers directly3 %t provides a company and its selling partners with the aility to trade information and distriute leads and data aout customers, integrating lead generation, pricing, promotions, order configurations, and availaility3 %t also provides a firm with tools to assess its partnersC performances so it can make sure its est partners receive the support they need to close more usiness3 ER& software deals with employee issues that are closely related to $R&, such as setting o@ectives, employee performance management, performance-ased compensation, and employee training3 &a@or $R& application software vendors include "racle, S!P, Salesforce3com, and &icrosoft ynamics $R&3 ifficulty* 2* $hallenging !!$S#* !pplication of knowledgeA ritten and oral communication +" -2* .ow do customer relationship management systems help firms achieve customer intimacy 4) hat usiness processes are supported y enterprise systems (ive specific e/amples3 !nswer* >he four ma@or usiness processes supported y enterprise systems are* Financial and accounting processes, including general ledger, accounts payale, accounts receivale, fi/ed assets, cash management and forecasting, product-cost accounting, costcenter accounting, asset accounting, ta/ accounting, credit management, and financial reporting3
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.uman resources processes, including personnel administration, time accounting, payroll, personnel planning and development, enefits accounting, applicant tracking, time management, compensation, workforce planning, performance management, and travel e/pense reporting3 &anufacturing and production processes, including p rocurement, inventory management, purchasing, shipping, production planning, production scheduling, material re5uirements planning, 5uality control, distriution, transportation e/ecution, and plant and e5uipment maintenance3 Sales and marketing processes, including order processing, 5uotations, contracts, product configuration, pricing, illing, credit checking, incentive and commission management, and sales planning3 ifficulty* 2* $hallenging !!$S#* !pplication of KnowledgeA ritten and "ral $ommunication +" -1* .ow do enterprise systems help usinesses achieve operational e/cellence
:) iscuss the usiness value of supply chain managem ent systems3 !nswer* Supply chain management systems enale firms to streamline oth their internal and e/ternal supply chain processes and provide management with more accurate information aout what to produce, store, and move3 #y implementing a networked and integrated supply chain management system, companies match supply to demand, reduce inventory levels, improve delivery service, speed product time to market, and use assets more effectively3 >otal supply chain costs represent the ma@ority of o perating e/penses for many usinesses and in some industries approach =: percent of the total operating udget3 Reducing supply chain costs has a ma@or impact on firm profitaility3 %n addition to reducing costs, supply chain management systems help increase sales3 %f a product is not availale when a customer wants it, customers often try to purchase it from someone else3 &ore precise control of the supply chain enhances the firmCs aility to have the right product availale for customer purchases at the right time3 ifficulty* 2* $hallenging !!$S#* !pplication of knowledgeA ritten and oral communication +" -0* .ow do supply chain management systems coordinate planning, production, and logistics with suppliers <) Enterprise applications introduce switching costs3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +" -4* hat are the challenges that enterprise applications pose and how are en terprise applications taking advantage of new technologies =) Enterprise applications are ased on organi6ation-wide definitions of data3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +" -4* hat are the challenges that enterprise applications pose, and how are en terprise applications taking advantage of new technologies 0: $opyright 7 0819 Pearson Education, %nc3
9) $hurn rate is an important indicator of the growth or decline of a companyCs customer ase3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +" -2* .ow do customer relationship management systems help firms achieve customer intimacy ) E/tensive customi6ation of enterprise software may degrade system performance3 !nswer* !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +" -1* .ow do enterprise systems help usiness achieve operational e/cellence 188) S$& systems re5uire multiple organi6ations to share information and usiness processes3 !nswer* >R?E ifficulty* 1* Easy !!$S#* !pplication of knowledge +" -4* hat are the challenges that enterprise applications pose, and how are en terprise applications taking advantage of new technologies
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