Deck 6: Information Systems and Digital Transformation

Question 1

Which of the following is an approach that links a company with providers of the raw components it needs to make a product or service, manufacture that product or service, and delivers it to customers.

A) Customer Relationship Management (CRM)
B) Supply Chain Management (SCM)
C) Product Lifecycle Management (PLM)
D) Enterprise Resource Planning (ERP)
E) Value Chain Management (VCM)

Answer 1

B

Question 2

All of the follow are negative outcomes found in a firm that is set up using a functional model, EXCEPT for:

A) suboptimization.
B) communication gaps.
C) lose site of the business goals.
D) lost information.
E) redundancy of expertise.

Answer 2

E

Question 3

A company that wants to make incremental improvements to existing business processes would utilize which of the following?

A) Total quality management
B) Workflow management
C) Business process management
D) Business process reengineering
E) Enterprise resource planning

Answer 3

A

Question 4

Middleware is software used to:

A) connect processes running on different computer systems across a network.
B) integrate a computer's operating system and its applications.
C) connect a computer system to the network.
D) support agile process redesign.
E) provide best business practices to ERP systems.

Question 5

The Six Sigma process received its name from:

A) the intersection of six bell curves, where there are no errors.
B) six degrees of freedom in removing an error, called "sigma."
C) six tries to change or give up.
D) six standard deviations, or less than 3.4 defects per million.
E) Sigma, the computer company that invented it.

Question 6

All of the following are characteristics of an ERP system EXCEPT:

A) ERP systems provide seamless integration of information flow across the organization.
B) ERP systems provide best (or at least "very good") practices for generic business processes.
C) ERP systems have evolved to support newer IT architectures.
D) ERP systems work "out of the box" with little configuration requirements.
E) ERP systems are usually software packages obtained from a provider/vendor

Question 7

Which one of the following is NOT a quality associated with agile and dynamic business processes?

A) Designed to support incremental improvement of processes
B) Relies on a high degree of IT
C) Allows for companies to take advantage of the latest innovations
D) Change requires significant redesign effort
E) Readily supports changing business requirements

Question 8

If an organization was going to make substantial changes to its customer service department, which type of transformation tool would it use?

A) Business Process Reengineering (BPR)
B) Reengineering Process Control (RPC)
C) Engineering Control System (ECS)
D) Total Process Improvement (TPI)
E) System Process Control (SPC)

Question 9

Organizations use the enterprise system to drive the redesign of a business process (rather than the process driving the system implementation) for all of the following reasons EXCEPT:

A) The organization is just starting out and has no defined processes.
B) The business process itself is not seen as a competitive strategic advantage.
C) There is little time or resources to deviate from best practices.
D) The organization has highly specialized processes that are not seen as best practices.
E) The needs of the business are met by the enterprise system.

Question 10

Which of the following is a comprehensive software package that incorporates all modules needed to run the internal operations of a business, including manufacturing, accounting, human resources, and sales modules?

A) SCM systems
B) Groupware system
C) ERP systems
D) CRM systems
E) PLM systems

Question 11

Which one of the following enterprise systems is social technologies increasingly integrating with?

A) ERP
B) SCM
C) PLM
D) CRM
E) SAP

Question 12

_________________________is (are) an all-encompassing tool used for modeling, building, executing, and monitoring business processes that go across organizational boundaries (and often systems).

A) Enterprise system
B) Workflow diagrams
C) SharePoint
D) Business Process Management systems
E) Integrated information systems

Question 13

In which business structure is the firm a hierarchy organized around a set of functions. Each group has a core competency that it concentrates upon.

A) Technology
B) Business reengineering approach
C) Functional
D) Process Control
E) Business process

Question 14

Enterprise systems are useful for organizations seeking to do all of the following EXCEPT:

A) Encourage duplication of data
B) Centralize decision making
C) Make effective use of organizational databases
D) Unify operations
E) Standardize processes

Question 15

When would an organization elect to use BPR over TQM?

A) When they want to make small, incremental changes
B) When they need to attain aggressive improvement goals
C) When they have time to refine their improvement goals
D) When there is not a need to make significant immediate changes
E) When they want the employees to have control over the changes

Question 16

Which type of process reengineering uses a radical improvement method for change?

A) Business Process Reengineering
B) System Development Engineering
C) Six Sigma
D) System Quality Management
E) Total Quality Management

Question 17

Enterprise Rent-A-Car was able to model and better understand how service requests were handled and then optimize the process, greatly benefiting the customer experience. Enterprise achieved this benefit using which tool?

A) Business Process Management (BPM)
B) Radical redesign
C) New Product Development (NPD)
D) Six sigma
E) Product life cycle management

Question 18

Businesses today link their customers and suppliers through a single network that optimizes cost and opportunities for all. This is possible because of all of the following reasons EXCEPT:

A) Standardized communication networks (like the Internet)
B) The availability of SCM enterprise systems
C) The inability to coordinate workflow across organizational boundaries
D) The globalization of business
E) The ubiquity of IT

Question 19

All of the following are good metrics a firm can use to measure the success of a business process EXCEPT for:

A) A customer's satisfaction with the quality of the product received
B) The time elapsed from when the customer placed an order to the time the product is received
C) The change in demographics of a region.
D) The number of orders the customer places in a given timeframe.
E) Revenue received from a service

Question 20

Computer systems in the 1960s and early 1970s were typically designed around a specific departmental need and did not interface very well. These systems were designed to support:

A) the functional perspective.
B) the entire enterprise.
C) the silo perspective.
D) incremental change.
E) social IT and mobile needs.
Ans; c

Question 21

ERP systems have all of the following characteristics EXCEPT:

A) They are expensive
B) They are implemented in all, or nearly all, large organizations
C) They are difficult to implement
D) Organizations use them to reduce redundancy and make better decisions
E) They are expensive but are easy to use.

Question 22

The Process Perspective is also called the Silo perspective

Question 23

Early computer systems were designed to support the silo perspective rather than a cross-functional business process approach.

Question 24

ERP has all the following advantages EXCEPT:

A) Modules throughout a corporation can communicate with each other
B) While purchasing is difficult, the vendors such as SAP make it worthwhile due to easy implementation
C) Have predefined software that represents "pretty good practices" or even "best practices"
D) Enables standardized procedures in an organization
E) Reduces inconsistent data stored in various locations of the organization

Question 25

An effective workflow diagram should do all of the following EXCEPT:

A) Map the sequence and details of a business process
B) Identify all persons/roles who play a part in the process
C) Use active verbs to describe activities
D) Identify inputs and outputs of a process
E) Try to mask the steps of a business process

Question 26

Reengineering is all of the following EXCEPT:

A) Gradual and systematic
B) Threatening to employees
C) Associated with very high reward if it succeeds
D) Associated with quick rewards if it succeeds
E) Sometimes suspected to be used to justify downsizing

Question 27

The system should drive the transformation in a company when:

A) The firm has competitive advantage because of its processes
B) Advantageous processes exist in the organization
C) When a firm has been around for a long time
D) When the systems are in a crisis
E) When employees have quite a lot of knowledge about transformation in the firm.

Question 28

Enterprise systems are large information systems that provide the core functionality needed to run a business and share data across all divisions of the business.

Question 29

Sloane Valve's successful effort to redesign its new product development (NPD) process can be classified as radical redesign.

Question 30

The functional perspective keeps the "big picture" in view.

Question 31

ERP systems are credited with establishing new business models, rather than simply making a firm improve its practices.

Question 32

Personnel often react more favorable to incremental change rather than radical change because incremental change gives them control and ownership of improvements.

Question 33

At the heart of how a business operates, you will find a collection of core business processes.

Question 34

Which of the following digital business models offer services and products with a focus on digital innovation, and allows it to be integrated with different value chain models?

A) Omnichannel
B) Ecosystem driver
C) Modular producer
D) Supplier
E) All of the above

Question 35

The major difference between an ERPII and ERP III system is which of the following features?

A) Advances in software usability and flexibility
B) Information is made immediately available to external stakeholders using social and collaborative tools
C) Information is made available to all departments in the company
D) Advanced quering and reporting capabilities
E) Close integration with e-business technologies

Question 36

The speed and magnitude at which organizations must make changes today continues to decrease as a result of technology.

Question 37

ERP systems are expensive for all of the following reasons EXCEPT:

A) The software is costly to purchase.
B) There is an enormous amount of work required to implement.
C) There are a number of hidden costs such as project management, training, and support.
D) They require organizational changes and impact the way people work.
E) They do not require business process redesign.

Question 38

Business processes are functional in nature and rarely cut across different departments in an organization.

Question 39

BPM software is limited in its ability provide analytics to managers to build or modify processes quickly without knowing programming languages.

Question 40

Sloan Valve Company redesigned their new product development process and as a result greatly reduced time-to-market as well as improved quality. Which one of the following enterprise systems supported Sloan's transformation?

A) ERP
B) SCM
C) PLM
D) TQM
E) NPD

Question 41

Identify the benefits a company can receive after successfully implementing a CRM system.

Question 42

Differentiate between ERPI, ERPII, and ERPIII.

Question 43

What does SCM stand for?

Question 44

A business uses __________to measure the critical success dimensions of a business process.

Question 45

Explain why installing an enterprise system often requires the redesign of existing business processes and the impact this has on the organization.

Question 46

The reason some supply chains are succumbing to the "neighborhood effect" in which factories are built closer to suppliers and consumers is to reduce _______ costs.

Question 47

The enterprise system used to manage all information regarding customer interactions is called_____.

Question 48

Match the task of the order fulfillment process to the department that would most likely be responsible for completing the task.
$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Receipt of paynent from the customer for the } \\\text { motorcycle }\end{array} & \text { Accounting } \\\hline \text { Sale of a customized motorcycle to a customer } & \text { Sales } \\\hline \begin{array} { l } \text { Maruffacturing the customized motorcycle for the } \\\text { customer }\end{array} & \text { Marufacturing } \\\hline \begin{array} { l } \text { Packaging and shipping the customized } \\\text { motorcycle }\end{array} & \text { Delivery } \\\hline\end{array}$$

Question 49

Explain issues companies have with one another when linking systems in order to participate in an integrated supply chain.

Question 50

Identify the specific components of the payroll business process.
$$\begin{array} { | l | l | } \hline \text { Hours worked by employees for the pay period } & \text { Input } \\\hline \text { Deternination of employee benefit costs } & \text { Task } \\\hline \text { Pay distributed to employees } & \text { Output } \\\hline \text { Accuracy/completeness of employee payments } & \text { Metric } \\\hline\end{array}$$

Question 51

Outline how Zara demonstrates a strong sense of process perspective in comparison to other more traditional retailers who seem to have a silo perspective.

Question 52

This type of organizational structure (perspective) results in duplication of information, lack of coordination between departments, and lack of communication on a company wide basis.

Question 53

This is a set of information system tools used to enable information flow within and between processes across an organization.

Question 54

Describe a business process by identifying the input to the process, some tasks associated with the process, the output of the process, and a metric that could measure its effectiveness.

Question 55

This is the tool that is used to help map a sequence of tasks that support a business process.

Question 56

Order the tasks below as they would appear in a simple, linear workflow diagram for the procurement process.
$$\begin{array} { | l | l | } \hline \text { 1st } & \text { Receive requirenents for goods } \\\hline \text { 2nd } & \begin{array} { l } \text { Create and send a purchase order to a vendor for } \\\text { the needed goods }\end{array} \\\hline \text { 3rd } & \text { Receive the goods fron the vendor } \\\hline \text { 4th } & \text { Verify the vendor's irvoice } \\\hline \text { 5th } & \text { Pay the vendor for the goods } \\\hline\end{array}$$

Question 57

Match the business process with the enterprise system that supports this process.
$$\begin{array} { | l | l | } \hline \text { ERP } & \text { Financial management } \\\hline \text { ERP } & \text { Operations management } \\\hline \text { CRM } & \text { Customer services and support history } \\\hline \text { CRM } & \text { Loyalty propram management } \\\hline \text { SCM } & \text { Denarnd planning and forecasting } \\\hline \text { SCM } & \text { Service parts planning } \\\hline \text { PLM } & \text { Innovation management } \\\hline\end{array}$$

Question 58

Match the scenario below to the enterprise system is represents.
$\begin{array}{|l|l|}\hline \text { SCM } & \begin{array}{l}\text { Kimberly Clark, a consumer products company, uses this IS to } \\\text { provide end-to-end visibility of the supply process in real time }\end{array} \\\hline \text { CRM } & \begin{array}{l}\text { Ritz Carlton uses this IS to capture information about guest } \\\text { preferences to enhance the customization of the services it } \\\text { provides its guests. }\end{array} \\\hline \text { ERP } & \begin{array}{l}\text { CEMEX uses this IS to standardize its manufacturing, } \\\text { accounting, procurement, finance and HR business processes. }\end{array} \\\hline \text { PLM } & \begin{array}{l}\text { Sloan Valve Company uses this IS to reduce the time-to- } \\\text { market for a new product to less than 12 months (down from } \\24 \text { months). }\end{array} \\\hline\end{array}$

Question 59

List one of the largest enterprise systems vendors as identified in this chapter.

Question 60

IS can impede change, particularly when the _________ don't match the capabilities of the IS.