Deck 8: Enterprise Business Systems

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

According to the textbook case, American LaFrance cited a failed ERP as one of the major reasons for filing for Chapter 11 bankruptcy protection.

Question 10

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 11

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

Question 12

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 13

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

Question 14

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

Question 15

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 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

Supply chain event management applications let companies see, from a historical perspective, if their existing supply chain management systems are working.

Question 23

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 24

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 25

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 26

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

Question 27

According to the Real World case, it is easier to implement CRM when: _______________.

A) A company is old
B) A company is young
C) A company has just been purchased by another
D) None of the choices are correct

Question 28

According to the Real World case, CRM software works best when used with ___________.

A) a single database
B) two databases
C) no databases
D) one or more vertical files

Question 29

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 30

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

Question 31

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 32

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 33

A CRM system includes all the following phases, except:

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

Question 34

_______________ 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 35

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

Question 36

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 37

According to the Real World case, customer data integration _______________.

A) provides a universal view of a customer
B) resolves discrepancies in names and addresses
C) summarizes customer interaction data from multiple systems
D) all of the choices are correct.

Question 38

CRM software uses information technology to create a cross-functional enterprise system that integrates and automates many of the _______________ processes with which customers interact.

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

Question 39

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 40

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

Question 41

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 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

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 44

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 45

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 46

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 47

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 48

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 49

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 50

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 51

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 52

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 53

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

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

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

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

Question 56

_______________ 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 57

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 58

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 59

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 60

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 61

_______________ software helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers.

Question 62

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 63

A lack of adequate collaboration between suppliers, distributors, and ________________ departments within a company will sabotage any SCM system.

A) marketing
B) production
C) inventory management
D) All of the choices are correct.

Question 64

Companies employing supply chain management systems can still face problems. Which of the following is not identified as a cause of SCM problems in the text?

A) A lack of demand planning knowledge
B) Inaccurate production or inventory data provided by a company's other information systems
C) Inaccurate or overly-optimistic demand forecasts
D) Too many solutions from which to choose

Question 65

_______________ 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 66

According to the textbook case, SCM software:

A) allows McKesson to monitor CVS's store level consumption and inventory
B) allows CVS to monitor McKesson's store level consumption and inventory
C) allows McKesson to see what items CVS is ordering from other vendors
D) allows CVS to place orders with vendors other than McKesson

Question 67

Companies in stage _____ of a supply chain management implementation concentrate on expanding the business network of Web-enabled SCM-capable trading partners in their supply chain to increase operational efficiency and effectiveness in meeting strategic business objectives.

A) one
B) two
C) three
D) four

Question 68

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

Question 69

Companies in stage _____ of a supply chain management implementation strive to optimize the development and management of their supply chains in order to meet strategic customer value and business value goals.

A) one
B) two
C) three
D) four

Question 70

Which of the following would occur in stage 1 of a supply chain management implementation?

A) Logistics
B) Collaborative marketing
C) Order management
D) Resource allocation

Question 71

Nike's failed SCM implementation resulted in all the following except:

A) $100 million in lost sales
B) 50% of the Nike factories were closed
C) Depressed stock prices
D) Class action lawsuits

Question 72

Companies in stage _____ of a supply chain management implementation concentrate on making improvements to internal supply chain processes and external processes and relationships with suppliers and customers.

A) one
B) two
C) three
D) four

Question 73

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 74

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 75

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 76

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 77

SCM systems generally provide companies with all of the following benefits except:

A) Lower marketing costs
B) Quicker times to market
C) Reductions in inventory levels
D) Lower transaction and materials costs

Question 78

Which of the following would occur in stage 3 of a supply chain management implementation?

A) Order fulfillment
B) Collaborative marketing
C) Order management
D) Resource allocation

Question 79

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 80

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