Deck 10: Enterprise Information Systems

Question 1

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

Answer 1

C

Question 2

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.

Answer 2

C

Question 3

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.

Answer 3

C

Question 4

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.

Question 5

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.

Question 6

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 7

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 8

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

Question 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

Question 10

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 11

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 12

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

Question 13

__________ 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 14

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.

Question 15

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

Question 16

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.

Question 17

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 18

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

A)the technologies
B)vendors
C)process and change management
D)end-users

Question 19

__________ 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 20

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 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

Question 22

__________ 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 23

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

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

Question 24

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 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

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 27

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 28

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 29

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

Question 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)

Question 31

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 32

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.

Question 33

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 34

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 35

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

A)reverse supply chain
B)return logistics
C)backflow
D)reorder fulfillment

Question 36

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.

Question 37

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 38

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 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

Question 40

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 41

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.

Question 42

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

Question 43

__________ 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

Question 44

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

Question 45

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

Question 46

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 47

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

Question 48

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

Question 49

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 50

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.

Question 51

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 52

__________ 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

Question 53

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 54

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.

Question 55

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

Question 56

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

Question 57

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

Question 58

Having knowledge implies that it can be used to solve a problem,whereas having information does not.

Question 59

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 60

KM systems are developed using communication and collaboration,and storage and retrieval technologies.

Question 61

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

Question 62

An ERP interfaces with legacy applications through a(n)__________ layer.

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

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

Question 65

__________ systems help organizations identify,select,organize,disseminate,and share information and expertise.

Question 66

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 67

__________ is unstructured,and has strong experiential and reflective elements that distinguish it from information.

Question 68

__________ 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.

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

CRM is an enterprisewide effort to acquire and retain __________ customers.