Deck 8: Business Across the Enterprise

Question 1

In many cases, ERP failures are due to over-reliance on the claims of ERP software vendors.

Answer 1

True

Question 2

A company can boost its profits 85 percent by increasing its annual customer retention by only 5 percent.

Answer 2

True

Question 3

CRM gives sales representatives lagged, but recent, access to a customer's account status and history before scheduling sales calls.

Answer 3

False

Question 4

Four important trends are shaping the continuing evolution of ERP: improvements in integration and flexibility, extensions to e-business applications, a broader reach to new users, and the adoption of Internet technologies.

Question 5

Losses from a failed ERP implementation can run into the hundreds of millions of dollars.

Question 6

According to the textbook case, fragmented internal systems are highly unusual in a company that experiences rapid growth.

Question 7

ERP software suites typically consist of integrated modules of manufacturing, distribution, sales, inventory, and human resource applications.

Question 8

It costs twice as much to sell to a new customer than it does to sell to an existing one.

Question 9

CRM can keep track of when a customer contacts a company, if the customer uses a previous contact point.

Question 10

CRM systems store customer account data in multiple specialized databases and then make it available throughout a company via Internet, intranet, or other network links.

Question 11

The growth of the Internet and corporate intranets and extranets prompted software companies to build Web interfaces and networking capabilities into ERP systems.

Question 12

Some e-business suites disassemble ERP components and integrate them into other modules, while other products keep ERP as a distinct module in the software suite.

Question 13

EDI software typically converts a company's own document formats into standardized EDI formats.

Question 14

ERP systems support many vital human resource processes, from personnel requirements planning to salary and benefits administration.

Question 15

The three steps in the customer life cycle are acquire, balance, and retain.

Question 16

The majority of complaining customers will do business with a company again if it quickly takes care of the problem.

Question 17

Many companies today are turning to Internet technologies to Web-enable their supply chain processes, decision making, and information flows.

Question 18

CRM software is difficult to install because it often touches many different legacy systems.

Question 19

Call center software helps customer service reps assist customers who are having problems with a product or service by providing relevant service data and suggestions.

Question 20

Industry research groups report that most CRM projects produce the promised results.

Question 21

CRM systems help marketing professionals do all of the following except:

A) Qualify leads for targeted marketing
B) Schedule direct marketing mailings
C) Track direct marketing mailings
D) Build up-to-date marketing brochures

Question 22

A CRM system provides sales reps with the software tools and company data sources they need to _______________.

A) support and manage their sales activities
B) optimize cross-selling
C) optimize up-selling
D) All of the choices are correct.

Question 23

Every supply chain application installation requires a hefty up-front investment.

Question 24

A CRM system should support the organization in which phase of the relationship between a business and its customers?

A) Acquire and enhance
B) Enhance and retain
C) Acquire, enhance, and retain
D) Acquire and retain

Question 25

The odds of selling a product to a new customer are _______________, whereas the odds of selling a product to an existing customer are _______________.

A) 10 percent, 75 percent
B) 15 percent, 50 percent
C) 5 percent, 20 percent
D) 5 percent, 85 percent

Question 26

Nike's failed SCM implementation cost the firm over $100 million in lost sales, depressed stock prices, and caused class action lawsuits.

Question 27

CRM systems store customer account data in common databases and then make it available throughout a company via all the following, except: Internet, intranet, or other network links.

A) Internet
B) Intranet
C) Network links
D) Catalogs

Question 28

CRM systems help a company identify, reward, and market to their most loyal and profitable customers through:

A) Analytical marketing software
B) Databases that include a customer data warehouse and CRM data mart
C) Data mining tools
D) All of the choices are correct.

Question 29

A CRM system includes all the following phases, except:

A) Acquire
B) Enhance
C) Balance
D) Retain

Question 30

If a company takes care of a service problem quickly, _______________ of complaining customers will do business with the company again.

A) 70 percent
B) 15 percent
C) 50 percent
D) 85 percent

Question 31

According to the textbook case, InfoEDI's forms-based interface lets businesses connect to InfoEDI via modems and Web browsers.

Question 32

A typical dissatisfied customer will tell _______________ about his or her experience.

A) 8 to 10 people
B) nobody
C) everyone he/she knows
D) 2-4 people

Question 33

_______________ systems store customer account data in common databases and then make it available throughout a company via Internet, intranet, or other network links.

A) Enterprise Resource Planning (ERP)
B) Supply Chain Management (SCM)
C) Customer Relationship Management (CRM)
D) Knowledge Management (KM)

Question 34

providing _________________________.

A) suppliers with a single, complete view of the internal workings of the company
B) distributors with a single, complete view of the company and its extended channels
C) customers with a single, complete view of the company and its extended channels
D) customers, suppliers, and investors with a complete view of the internal workings of the company

Question 35

CRM software uses information technology to create an enterprisewide system that integrates and automates many of the _______________ processes with which customers interact.

A) sales
B) customer-serving
C) marketing
D) All of the choices are correct.

Question 36

CRM systems help fulfill prospect and customer responses and requests by doing all of the following except:

A) Mailing out additional marketing materials
B) Providing product information
C) Capturing relevant information for the CRM database
D) Quickly scheduling sales contacts

Question 37

A company can boost its profits _______________ by increasing its annual customer retention by only _______________.

A) 8 percent, 10 percent
B) 100 percent, 2 percent
C) 5 percent, 58 percent
D) 85 percent, 5 percent

Question 38

Siebel Systems, Oracle, PeopleSoft, SAP AG, and Epiphany are some of the leading vendors of __________ software.

A) ERP
B) CRM
C) PRM
D) All of the choices are correct.

Question 39

EDI automatically tracks inventory changes; triggers orders, invoices, and other documents related to transactions; and schedules and confirms delivery and payment.

Question 40

It costs _______________ to sell to a new customer than it does to sell to an existing one.

A) twice as much
B) the same amount
C) six times more
D) half as much

Question 41

According to the text, common wisdom holds all of the following as reasons for CRM failure, except:

A) Lack of senior management sponsorship.
B) elongated projects that take on too much, too fast.
C) Lack of end-user incentives leading to poor user adoption rates.
D) All of the choices are correct.

Question 42

In the _______________ phase of a customer relationship, a business relies on CRM software tools and databases to proactively identify and reward its most loyal and profitable customers via targeted marketing programs.

A) acquire
B) enhance
C) retain
D) all of the choices are correct.

Question 43

According to the text, common wisdom holds which of the following as a reason for CRM failure?

A) senior management opposition
B) elongated projects that take on too much, too fast.
C) lack of support from software vendors
D) all of the choices are correct.

Question 44

In the _______________ phase of a customer relationship, CRM account management and customer service and support tools help keep customers happy by supporting superior service from a responsive networked team of sales and service specialists and business partners.

A) acquire
B) enhance
C) retain
D) all of the choices are correct.

Question 45

Enterprise resource planning is recognized as a necessary ingredient that many companies need in order to:

A) Gain the efficiency, agility, and responsiveness required to succeed in today's dynamic business environment
B) Maximize their marketing dollars
C) Reduce inventory levels
D) Hold onto competent employees in a competitive environment

Question 46

Of the typical costs associated with implementing a new ERP system, _______________ is the lowest.

A) hardware
B) software
C) data conversions
D) reengineering

Question 47

A(n) _______________ CRM provides all users with the tools and information they need to fit their individual roles and preferences.

A) operational
B) analytical
C) collaborative
D) portal-based

Question 48

_______________ is the technological backbone of e-business, an enterprise-wide transaction framework with links into sales order processing, inventory management and control, production and distribution planning, and finance.

A) Enterprise resource planning
B) Supply chain management
C) Electronic data interchange
D) Partner relationship management

Question 49

Enterprise resource planning software for a manufacturing company will typically process data from _______________.

A) sales orders and inventory
B) sales, inventory, shipping, and invoicing, as well as from forecasts for raw material and human resources
C) accounts receivable and payable
D) none of the choices are correct.

Question 50

The goal of the _______________ phase of a customer relationship is to help customers perceive the value of a superior product offered by an outstanding company.

A) acquire
B) enhance
C) retain
D) all of the choices are correct.

Question 51

Research shows that the major reason for CRM failure is:

A) senior management opposition
B) lack of support from software vendors
C) lack of understanding and preparation
D) none of the choices are correct.

Question 52

According to the textbook case, it took Colgate U.S. anywhere from one to five days to acquire an order and another one to two days to process the order. After ERP, order acquisition and processing combined takes _______________.

A) five days
B) three days
C) 24 hours
D) four hours

Question 53

ERP systems can provide vital cross-functional information on business performance to managers in a very timely manner. This describes the key business benefit of:

A) Enterprise agility
B) Decision support
C) Decreased costs
D) Quality and efficiency

Question 54

According to the textbook case, Visa's _______________ management infrastructure was fragmented, complex, and costly to maintain.

A) human resources
B) financial
C) marketing
D) communications

Question 55

All of the following are examples of the business value of operational CRM except:

A) Enables easy collaboration with customers, suppliers, and partners
B) Supports customer interaction with greater convenience through a variety of channels, including phone, fax, e-mail, chat, and mobile devices
C) Synchronizes customer interactions consistently across all channels
D) Makes a company easier to do business with

Question 56

Although the benefits of ERP are many, the costs and risks can be considerable. Which of the following make up the bulk of the cost of implementing a new ERP system?

A) Hardware
B) Software
C) Reengineering (developing new business processes)
D) Converting data from legacy systems

Question 57

ERP creates a framework for integrating and improving a company's internal business processes that results in significant improvements in the quality and efficiency of:

A) Customer service
B) Production
C) Distribution
D) All of the choices are correct.

Question 58

Which of the following is an example of the business value of collaborative CRM?

A) Provides all users with the tools and information that fit their individual roles and preferences
B) Improves efficiency and integration throughout the supply chain
C) Empowers all employees to respond to customer demands more quickly
D) Synchronizes customer interaction with greater convenience through a variety of channels, including phone, fax, e-mail, chat, and mobile devices

Question 59

Increasingly, businesses are moving to _______________ CRM systems, to involve business partners as well as customers in collaborative customer services.

A) operational
B) analytical
C) collaborative
D) portal-based

Question 60

Which of the following has been a major cause of failure in ERP projects?

A) Business managers and IT professionals underestimating the complexity of the planning, development, and training needed
B) Trying to do too much too fast
C) Insufficient training in the new work tasks required by the ERP system
D) All of the choices are correct.

Question 61

_______________ involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners (organizations and their customers and suppliers).

A) Data exchange
B) Intranets
C) Electronic data interchange
D) Data interchange

Question 62

Optimize plans and schedules while considering resource, material, and dependency constraints is an outcome of the _______________ SCM function.

A) supply chain design
B) materials management
C) collaborative fulfillment
D) collaborative manufacturing

Question 63

Develop an accurate forecast of customer demand by sharing demand and supply forecasts instantaneously across multiple tiers is an outcome of the _______________ SCM function.

A) supply chain design
B) collaborative demand and supply planning
C) collaborative fulfillment
D) supply chain event management

Question 64

Which of the following is a execution SCM objective?

A) Build and transport
B) Monitoring, controlling, and adjusting production
C) Changing transportation methods
D) Establishing objectives and policies

Question 65

The demands of today's competitive business environment are pushing manufacturers to use which of the following technologies to help them re-engineer their relationships with suppliers, distributors, and retailers?

A) Intranets
B) Extranets
C) E-commerce Web portals
D) All of the choices are correct.

Question 66

All of the following are operation SCM objectives and outcomes except:

A) Schedule and monitor production
B) Control and adjust production
C) Order/inventory tracking
D) Material movement

Question 67

Support the entire logistics process, including picking, packing, shipping, and delivery in foreign countries is an outcome of the _______________ SCM function.

A) supply chain design
B) materials management
C) collaborative fulfillment
D) supply chain event management

Question 68

The goal of SCM is to create a fast, efficient, and low-cost network of business relationships, or a _______________, to get a company's products from concept to market.

A) supply chain
B) service chain
C) product chain
D) relationship chain

Question 69

EDI is still a popular data-transmission format among major trading partners, primarily to automate repetitive transactions, though it is slowly being replaced by _____-based Web services.

A) HTML
B) Intranet
C) Web-2
D) XML

Question 70

Fundamentally, _______________ helps a company get the right products to the right place at the right time, in the proper quantity, and at an acceptable cost.

A) customer relationship management
B) supply chain management
C) electronic data interchange
D) partner relationship management

Question 71

Monitor every stage of the supply chain process, from price quotation to the moment the customer receives the product is an outcome of the _______________ SCM function.

A) supply chain design
B) materials management
C) collaborative fulfillment
D) supply chain event management

Question 72

Optimize network of suppliers, plants, and distribution centers is an outcome of the _______________ SCM function.

A) supply chain design
B) materials management
C) collaborative fulfillment
D) supply chain event management

Question 73

Which of the following correctly describes the supply chain life cycle supported by SCM systems?

A) Commit, schedule, make, and deliver
B) Buy, make, sell
C) Buy, sell, schedule, deliver
D) None of the choices are correct.

Question 74

Because each supply chain process should add value to the products or services a company produces, a supply chain is frequently called a __________ chain.

A) process
B) service
C) product
D) value

Question 75

Sharing of accurate inventory and procurement information is an outcome of the _______________ SCM function.

A) supply chain design
B) materials management
C) collaborative fulfillment
D) supply chain event management

Question 76

According to the textbook case, Telefonica realized that many smaller businesses could not afford standard EDI services, so they offered InfoEDI which allows transmission to be entered and processed _______________.

A) on data exchanges
B) on intranets
C) on the Internet
D) on extranets

Question 77

Report key measurements in the supply chain, such as filling rates, order cycle times, and capacity utilization is an outcome of the _______________ SCM function.

A) supply chain performance management
B) materials management
C) collaborative fulfillment
D) supply chain event management

Question 78

Which of the following is a tactical SCM objective?

A) Deploying resources to match supply to demand
B) Monitoring, controlling, and adjusting production
C) Changing transportation methods
D) Establishing objectives and policies

Question 79

All of the following are strategic SCM objectives and outcomes except:

A) Establishing policies
B) Designing a network
C) Establishing objectives
D) Scheduling production

Question 80

A typical box of breakfast cereal takes _______________ to get from factory to supermarket, struggling its way through wholesalers, distributors, brokers, and consolidators, each of which has a warehouse.

A) seven days
B) 30 days
C) over 100 days
D) six months