Deck 9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Question 1

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

Answer 1

True

Question 2

Enterprise systems include analytical tools.

Answer 2

True

Question 3

Cross-selling markets complementary products to customers.

Answer 3

True

Question 4

An enterprise system helps reduce redundant business processes.

Question 5

Dell Inc., which produces many personalized computers as they are ordered, is an example of a pull-based supply-chain model.

Question 6

Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.

Question 7

In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.

Question 8

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Question 9

Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.

Question 10

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.

Question 11

Major CRM application software vendors include Oracle and SAP.

Question 12

Inefficiencies in a supply chain are primarily caused by inaccurate information.

Question 13

It can cost six times more to sell a product to a new customer than to an existing customer.

Question 14

CRM software can help organizations identify high-value customers for preferential treatments.

Question 15

In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.

Question 16

Total supply chain costs in some industries approach 75 percent of the total operating budget.

Question 17

The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

Question 18

Enterprise systems require fundamental changes in the way the business operates.

Question 19

Supply chain management systems are a type of enterprise system.

Question 20

All CRM packages contain modules for PRM and ERM.

Question 21

Supply chain planning systems:

A)track the physical status of goods.
B)identify the transportation mode to use for product delivery.
C)track the financial information involving all parties.
D)track the status of orders.

Question 22

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

A)Safety stock
B)Continuous replenishment
C)Just-in-time strategies
D)Demand planning

Question 23

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

A)Select the functions of the system you wish to use.
B)Select the business processes you wish to automate.
C)Map the company's business processes to the software's business processes.
D)Map the software's business processes to the company's business processes.

Question 24

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.

A)network
B)bullwhip
C)ripple
D)whirlpool

Question 25

Components or parts of finished products are referred to as:

A)upstream materials.
B)raw materials.
C)secondary products.
D)intermediate products.

Question 26

Supply chain complexity and scale increases when firms:

A)move to globalization.
B)manage the procurement, manufacturing, and distribution functions themselves.
C)produce products and services that coordinate with hundreds or more firms and suppliers.
D)modify their existing workflows to comply with supply-chain management systems.

Question 27

Systems that enable a firm to generate demand forecasts for a product, and to develop sourcing and manufacturing plans for that product, best describes supply chain ________ systems.

A)demand
B)delivery
C)planning
D)execution

Question 28

A company's organizations and processes for distributing and delivering products to the final customers is the:

A)supplier's internal supply chain.
B)external supply chain.
C)upstream portion of the supply chain.
D)downstream portion of the supply chain.

Question 29

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a:

A)distribution channel.
B)supply chain.
C)value chain.
D)marketing channel.

Question 30

From your reading of the chapter's opening case, Nvidia implemented new information systems in order to achieve which of the main six business objectives?

A)Customer and supplier intimacy
B)Operational excellence
C)Survival
D)Improved decision making

Question 31

Why is overstocking warehouses not an effective solution for a problem of low availability?

A)It does not speed product time to market.
B)It is an inefficient use of raw materials.
C)It increases sales costs.
D)It increases inventory costs.

Question 32

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.

A)push; pull
B)demand; continual
C)upstream; downstream
D)planning; execution

Question 33

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.

A)just-in-time
B)frictionless
C)bullwhip
D)safety-stock

Question 34

Enterprise software is built around thousands of predefined business processes that reflect:

A)the firm's organization.
B)industry goals.
C)best practices.
D)cutting edge workflow analyses.

Question 35

In order to achieve maximum benefit from an enterprise software package, a business:

A)customizes the software to match all of its business processes.
B)uses only the processes in the software that match its own processes.
C)changes the way it works to match the software's business processes.
D)selects only the software that best matches its existing business processes.

Question 36

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the:

A)supplier's internal supply chain.
B)external supply chain.
C)upstream portion of the supply chain.
D)downstream portion of the supply chain.

Question 37

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with:

A)configuration tables.
B)Web services.
C)data dictionaries.
D)middleware.

Question 38

Uncertainties arise in any supply chain because of:

A)inaccurate or untimely information.
B)poor integration between systems of suppliers, manufacturers, and distributors.
C)inefficient or inaccurate MIS.
D)unforeseeable events.

Question 39

Which of the following is not true about enterprise systems?

A)Enterprise systems help firms respond rapidly to customer requests for information or products.
B)Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
C)Enterprise software is expressly built to allow companies to mimic their unique business practices.
D)Enterprise software includes analytical tools to evaluate overall organizational performance.

Question 40

A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes:

A)process management software.
B)ERP systems.
C)groupware.
D)application software.

Question 41

Selling a customer with a checking account a home improvement loan is an example of:

A)operational CRM.
B)direct marketing.
C)cross-selling.
D)cross-channel promotions.

Question 42

A supply chain driven by actual customer orders or purchases follows a ________ model.

A)pull-based model
B)build-to-stock
C)push-based
D)replenishment-driven

Question 43

Marketing modules in CRM systems would provide tools for:

A)assigning and managing customer service requests.
B)capturing prospect and customer data.
C)identifying profitable and unprofitable customers.
D)managing sales prospect and contact information.

Question 44

Concurrent supply chains are made possible by which technology?

A)ERP systems
B)The Internet
C)Supply-chain management systems
D)Just-in-time supply-chain technologies

Question 45

A build-to-order supply-chain model is also called a ________ model.

A)supply-based
B)demand-driven
C)replenishment-driven
D)push-based

Question 46

Which of the following is an important capability for sales processes that is found in most major CRM software products?

A)Returns management
B)Lead management
C)Channel promotions management
D)Events management

Question 47

A ________ is a method of interaction with a customer, such as telephone or customer service desk.

A)point of presence
B)touch point
C)sales point
D)client channel

Question 48

________ management is an important capability for customer service processes that is found in most major CRM software products.

A)Returns
B)Lead
C)Account
D)Events

Question 49

________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.

A)SCM
B)SFA
C)ERM
D)PRM

Question 50

Customer relationship management systems typically provide software and online tools for sales, customer service, and:

A)marketing.
B)account management.
C)advertising.
D)public relations.

Question 51

Customer service modules in CRM systems provide tools for:

A)assigning and managing customer service requests.
B)capturing prospect and customer data.
C)identifying profitable and unprofitable customers.
D)managing sales prospect and contact information.

Question 52

Which supply chain planning function determines how much product is needed to satisfy all customer demands?

A)Distribution management
B)Replenishment planning
C)Demand planning
D)Order planning

Question 53

Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.

A)demand
B)delivery
C)planning
D)execution

Question 54

From your reading of the Land O' Lakes case study, the company implemented which type of system to improve supply chain efficiency?

A)Enterprise resource planning system
B)Supply-chain planning system
C)Supply-chain execution system
D)Push-based supply system

Question 55

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

A)SCM
B)SFA
C)ERM
D)PRM

Question 56

SFA modules in CRM systems would provide tools for:

A)assigning and managing customer service requests.
B)capturing prospect and customer data.
C)identifying profitable and unprofitable customers.
D)managing sales prospect and contact information.

Question 57

The business value of an effective supply-chain management system includes all of the following except:

A)faster time to market.
B)cost reduction.
C)supply matched to demand.
D)increased inventory levels.

Question 58

Capabilities of supply chain execution systems would not include:

A)identifying the optimal transportation mode.
B)tracking the flow of finished goods.
C)managing materials.
D)managing warehouse operations.

Question 59

CRM systems help businesses obtain which business objective?

A)Customer and supplier intimacy
B)Operational excellence
C)New products and services
D)Improved decision making

Question 60

Which of the following would not be considered a contact point?

A)E-mail
B)Web site
C)Intranet
D)Retail store

Question 61

The downstream portion of the supply chain includes retailers and customers.

Question 62

A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.

Question 63

Operational CRM applications include tools for:

A)identifying buying patterns.
B)calculating CLTV.
C)salesforce automation.
D)pinpointing unprofitable customers.

Question 64

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

A)switching costs.
B)churn rate.
C)CLTV.
D)switch rate.

Question 65

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.

A)e-business suites
B)ERP systems
C)middleware
D)legacy systems

Question 66

With new flows of information made possible by Web-based tools, supply chain management can more easily follow a push-based model.

Question 67

________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.

A)PRM
B)SFA
C)ERM
D)CLTV

Question 68

Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad hoc analysis, as part of the application.

A)ESS
B)SAP
C)on-demand
D)business intelligence

Question 69

Which of the following is not an example of next-generation enterprise applications?

A)Open-source solutions
B)Social CRM
C)Stand-alone suites
D)Solutions incorporating SOA

Question 70

Which of the following business objectives would be most helped by implementing an enterprise application?

A)New products and services
B)Customer and supplier intimacy
C)Competitive advantage
D)Survival

Question 71

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?

A)Churn rate
B)CLTV
C)Cost per lead
D)Cost per sale

Question 72

Analyzing customer buying patterns is an example of:

A)CLTV.
B)analytical CRM.
C)operational CRM.
D)demand planning.

Question 73

Which of the following statements about enterprise applications is not true?

A)Enterprise applications require organizational learning.
B)Enterprise applications introduce "switching costs."
C)Enterprise applications are based on organization-wide definitions of data.
D)Enterprise applications are best implemented when few changes in business processes are required.

Question 74

Which of the following features is the main reason an enterprise system helps a business improve decision-making?

A)Standardized business processes
B)Up-to-the-minute data sharing
C)Reducing redundant business processes
D)Analytical tools

Question 75

Which of the following is not one of the four types of customers described in the case study on Graybar?

A)Niche customers
B)Opportunistic customers
C)Marginal customers
D)Service-drain customers

Question 76

________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.

A)Operational
B)Social
C)Web-based
D)Sales force

Question 77

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.

Question 78

To model its existing supply chain and develop optimal manufacturing plans, a firm would implement a supply chain execution system.

Question 79

The bullwhip effect is countered by:

A)globalization.
B)disintermediation.
C)implementing an SCM.
D)reducing information uncertainty.

Question 80

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

A)operational CRM
B)analytical CRM
C)operational SCM
D)analytical SFA