Deck 11: Competitive Advantage and Business Processes

Question 1

Order entry is usually found in the accounting functional systems.

Answer 1

False

Question 2

Supplier relationship management is a business process for managing all contacts between the organization and its supplies.

Answer 2

True

Question 3

Independent, isolated systems are good for making businesses more efficient today.

Answer 3

False

Question 4

Enterprise application integration uses an interface to access the individual functional databases.

Question 5

Most organizations today have a mixture of functional and integrated systems.

Question 6

Functional systems often lead to disjointed processes and increased expenses.

Question 7

Only commercial companies can benefit competitively by using information systems.

Question 8

With functional silos, management must query separate functional systems and integrate the data manually.

Question 9

Enterprise resource planning software uses one database to connect the functional areas.

Question 10

Cross-functional systems facilitate work of a single department or business function.

Question 11

A general ledger application would be an example of a process-based system.

Question 12

Customer service is typically part of the marketing and sales function.

Question 13

One way to gain competitive advantage using information systems is through business processes.

Question 14

The operations function handles order entry and inventory management.

Question 15

Customer relationship management (CRM) is an example of a cross-functional system.

Question 16

ERP systems integrate sales, orders, inventory, manufacturing, customer service, human resources, and accounting.

Question 17

Functional silos are designed to work independently of one another.

Question 18

In the past 10 years, all companies have entirely switched from functional systems to fully integrated or cross-functional systems.

Question 19

With functional systems, one of the biggest problems is duplicated data.

Question 20

Using MIS, one way to gain competitive advantage is to enhance the product or service by applying technological change.

Question 21

Which of the following is a rationale for business process design?

A) Existing functional systems are flawed and should be improved.
B) New and more efficient business processes that integrate the activities of all departments involved in a value chain should be created.
C) Business processes are inefficient and do not integrate with other departments.
D) Existing business processes are returning a good ROI and should be kept running like this.
E) Existing systems do not support the value chain and therefore need to be improved.

Question 22

Most employees welcome and embrace changes caused by business process redesign.

Question 23

Originally the ________ supported the work of a single department or function.

A) calculation systems
B) cross-function systems
C) departmental systems
D) inter-organizational systems
E) functional systems

Question 24

Business process design is well understood and the outcomes are fairly certain once the changes are begun.

Question 25

________ support all of the primary business processes as well as the human resources and accounting support processes.

A) Customer relationship management systems
B) Supply chain management systems
C) Enterprise resource planning systems
D) Value chain management systems
E) Supplier relationship management systems

Question 26

Systems that are used by two or more related companies are referred to as

A) functional systems.
B) calculation systems.
C) interorganizational systems.
D) operating systems.
E) departmental systems.

Question 27

Isolated systems can lead to inefficiency and higher organizational costs.

Question 28

It is not possible to improve business processes without technological change.

Question 29

EAI leaves the functional systems and databases basically intact.

Question 30

Systems that are designed to support activities across departmental boundaries are called

A) calculation systems.
B) functional systems.
C) cross-departmental systems.
D) inter-organizational systems.
E) operating systems.

Question 31

Which of the following is (are) TRUE statements with functional systems?

A) Improved data results
B) Improved data integrity
C) Better communications
D) Increased profitability
E) Isolated systems

Question 32

In a functional system, the data required to answer queries from and about customers is contained within the order management system so links to other systems are not necessary.

Question 33

Porter's concept of the "process chain" is crucial for developing a competitive strategy.

Question 34

________ support the business processes of attracting, selling, managing, delivering, and supporting customers.

A) Enterprise resource planning systems
B) value chain management systems
C) Supplier relationship management systems
D) Supply chain management systems
E) Customer relationship management systems

Question 35

Which of the following is a (are) consequence(s) of a disjointed system?

A) Efficiency
B) Greater supply of integrated enterprise information
C) Decreased cost
D) Cohesive business processes
E) Lower profits

Question 36

The user interface for enterprise application integration systems and enterprise resource planning systems look completely different to the end user.

Question 37

Functional systems in Porter's value chain are usually comprised of

A) HR, Accounting, Operations, Sales.
B) Accounting, Payroll, HR, Sales.
C) Operations, Advertising, HR, Sales.
D) Accounting, Advertising, Payroll, Marketing.
E) Primary activities and Support Activities.

Question 38

Either EAI or ERP can be used to integrate functional systems.

Question 39

Which of the following are examples of accounting functional systems?

A) Lead tracking
B) Inventory management
C) Sales forecasting
D) Manufacturing operations
E) Accounts receivable

Question 40

Grand & Toy has expanded its business model by offering services through the web in the last decade.

Question 41

Systems that span functional ________ are known as cross-functional systems.

A) departments
B) processes
C) systems
D) boundaries
E) functions

Question 42

Which of the following contains the elements of the customer life cycle?

A) Marketing, Customer acquisition, Relationship management, Customer service
B) Customer acquisition, Loss/churn, Accounts receivable, Customer service
C) Loss /churn, Relationship management, Marketing, Accounts receivable
D) Relationship management, Accounts payable, Loss/churn, Marketing
E) Loss/Churn, Relationship management, Customer acquisition, Marketing

Question 43

ERP systems handle

A) mainly HR functions.
B) mainly sales tracking.
C) only accounting.
D) sales and accounting.
E) all of the company's functions.

Question 44

Which of the following is NOT a driver of supply chain management performance?

A) Information
B) Transportation
C) Facilities
D) Hardware
E) Inventory

Question 45

The internet and database management systems have allowed manufacturers like Dell to sell directly to consumers. This is called

A) direct marketing.
B) B2G sales.
C) disintermediation.
D) integrated CRM.
E) eBay.

Question 46

Functional applications are sometimes called functional

A) automation.
B) silos.
C) islands.
D) confusion.
E) integration.

Question 47

The only source of revenue in the supply chain is the

A) sales department.
B) cash register.
C) end consumer.
D) purchasing department.
E) manufacturer.

Question 48

The purpose of relationship management applications is to

A) extend social marketing effectiveness.
B) reduce accounts receivable.
C) advertise promotions in a timely way.
D) get new customers.
E) maximize the value of the existing customer base.

Question 49

When a company purchases an "industry standard process" from a vendor like SAP, the company may benefit

A) by gaining "best practices" it would otherwise have developed on its own.
B) because employees will conform with the changes rapidly and be more efficient.
C) because customers will demand lower prices.
D) hardly ever.
E) because the company will have a unique application that will generate competitive advantage.

Question 50

Functional applications are sometimes called

A) islands of automation.
B) inefficient systems.
C) isolated silos.
D) functional islands.
E) functional silos.

Question 51

The elimination of the middle layer in a supply chain is called

A) disintermediation.
B) intermediation.
C) reintermediation.
D) normalization.
E) price elasticity.

Question 52

Inventory management systems are usually found in the ________ functional area.

A) sales and marketing
B) operations
C) human resources
D) accounting and finance
E) manufacturing

Question 53

________ is a business process for managing all contacts between an organization and its suppliers.

A) SRM
B) CRM
C) BRM
D) KRM
E) FRM

Question 54

ERP uses

A) integration to manage the five different databases in a typical company.
B) pull-push production planning.
C) customized programming to adapt to the purchaser's way of doing business.
D) one centralized database.
E) undocumented, brand new software.

Question 55

Which of the following is a function of a manufacturing system?

A) Order entry
B) Customer service
C) Scheduling
D) Order management
E) Inventory management

Question 56

When a company purchases an "industry standard process" from a vendor like SAP, the company often has to

A) lay off staff to conform to the new standards.
B) change the way the company operates to conform to the software.
C) buy more equipment to conform to the software needs.
D) hire more staff to use the software more efficiently.
E) wait years for a payback.

Question 57

Which of the following is involved in supply chain management?

A) SRM
B) CRM
C) VRM
D) CRM and VRM
E) SRM and CRM

Question 58

________ are used by non-manufacturers, such as distributors and retailers.

A) Human resource systems
B) Manufacturing systems
C) Accounting systems
D) Operations systems
E) Marketing and sales systems

Question 59

Interorganizational systems that enable companies to efficiently handle the flow of goods from suppliers to customer are known as

A) application software.
B) disintermediating systems.
C) competitive advantages.
D) CRM systems.
E) supply chain management systems.

Question 60

Sales management applications support

A) the maximization of the value of the customer.
B) sales to existing customers.
C) network marketing.
D) database conversion
E) prospecting for new customers.

Question 61

Oracle, Microsoft, and SAP are all examples of ________ software vendors.

A) MRP
B) CRM
C) ERP
D) SCM
E) CASE

Question 62

Payroll is an application that is traditionally run in the functional area of

A) sales and marketing.
B) human resources.
C) manufacturing.
D) operations.
E) accounting and finance.

Question 63

A hotel that is experiencing a slow period could use a(n) ________ to market promotions to its best customers.

A) flyer campaign
B) general ledger program
C) Twitter account
D) Facebook page
E) integrated CRM application

Question 64

Business process design projects are expensive and difficult because

A) business processes are often complex.
B) of legacy technology.
C) of legal issues.
D) poor business processes are inefficient.
E) business processes are complex and poor business processes are inefficient.

Question 65

The movement of business process design came about because systems developers began to wonder how they could

A) improve existing functional systems.
B) develop customer management relationship systems.
C) use networks to go beyond just automating functional applications.
D) use systems to automate the supply chain.
E) integrate several different areas in an entire value chain.

Question 66

One of the problems of functional systems is that data stored for different functional areas may be inconsistent and

A) incomplete.
B) redundant.
C) outdated.
D) not integrated
E) disjointed.

Question 67

An example of an integrated, cross-functional information system would be

A) CASE.
B) CAM.
C) CAO.
D) CRM.
E) CAD.

Question 68

If the order entry system defines part numbers using a six-digit code and the inventory system defines part numbers using an eight-digit code, the data must be ________ in order for the two systems to share data.

A) recombined
B) imported
C) restructured
D) updated
E) converted

Question 69

Lead tracking is an application that is traditionally run in the functional area of

A) operations.
B) sales and marketing.
C) manufacturing.
D) accounting and finance.
E) human resources.

Question 70

________ systems link up all the processes that touch the customer.

A) MRP
B) CASE
C) CRM
D) ERP
E) SRM

Question 71

When implementing a system such as SAP, companies must (can)

A) experience substantial change.
B) save money.
C) experience its primary benefits from the software
D) adhere to industry standard processes.
E) continue to use all of their own business process standards.

Question 72

When functional systems are isolated, business processes are

A) redundant.
B) disjointed.
C) incomplete.
D) not integrated.
E) outdated.

Question 73

When adopting an ERP, the organization gains benefits because

A) ERP has process blueprints.
B) ERP allows the organization to gain the benefit of processes that have already been proven successful.
C) ERP integrates all the activities in the organization and makes the organization successful.
D) ERP allows the organization to standardize all of the corporate data.
E) ERP places all the corporate data into a single database and makes business process more successful.

Question 74

The general ledger (GL) is an application that is traditionally run in the functional area of

A) sales and marketing.
B) manufacturing.
C) operations.
D) human resources.
E) accounting and finance.

Question 75

SAP is one of the leading vendors of ________ software.

A) ERP
B) SCM
C) CRM
D) DBMS
E) CASE

Question 76

Business process management is all about

A) CRM.
B) installing SAP R/3 to gain industry standard processes.
C) shortening your supply chain.
D) accomplishing the same activities with less resource cost.
E) becoming a cost leader under Porter's models.

Question 77

The greatest advantages of a CRM system is that

A) organizations can prioritize sales time and effort.
B) it can use sales management applications.
C) customer-touching processes can be linked to one another.
D) all the data is stored in a single database.
E) sales people can potentially increase sales.

Question 78

Order entry is an application that is traditionally run in the functional area of

A) human resources.
B) accounting and finance.
C) manufacturing.
D) operations.
E) sales and marketing.

Question 79

Software that integrates sales, orders, inventory, manufacturing, customer service, human resources, and accounting is called

A) ERP systems.
B) vapour ware.
C) DBMS.
D) CAM.
E) MPS.

Question 80

________ combines functional systems by using software bridges to connect different functional systems.

A) EAI
B) ERP
C) CRM
D) SAP R/3
E) MIS