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

Question 1

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

A)customize the software to match all of its business processes.
B)use only the processes in the software that match its own processes.
C)change the way it works to match the software's business processes.
D)select only the software that best matches its existing business processes.
E)retain legacy systems that best work with the software.

Answer 1

C

Question 2

Components or parts of finished products are referred to as:

A)upstream materials.
B)raw materials.
C)secondary products.
D)intermediate products.
E)mid-chain products.

Answer 2

D

Question 3

Extensive customization of enterprise software may degrade system performance.

Answer 3

True

Question 4

Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business?

A)Configuration tables
B)Web services
C)Data dictionaries
D)Middleware
E)Groupware

Question 5

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.
E)Enterprise systems provide firm-wide information to help managers make better decisions.

Question 6

What business processes are supported by enterprise systems? Give specific examples.

Question 7

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

A)government regulations.
B)industry benchmarks.
C)best practices.
D)cutting edge workflow analyses.
E)the firm's culture.

Question 8

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/an:

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

Question 9

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

A)Rewrite the software to support the way the company's business processes work.
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.
E)Select the functions of the system you wish to use.

Question 10

From your reading of the chapter's opening case,Skullcandy chose enterprise resource planning software from which of the following ERP vendors?

A)Oracle
B)SAP
C)IBM
D)Microsoft
E)Infor Global Solutions

Question 11

Identify at least four benefits and four challenges of enterprise systems.

Question 12

Enterprise systems include analytical tools.

Question 13

Manufacturing and production processes include all of the following except:

A)procurement.
B)material requirements planning.
C)quality control.
D)transportation execution.
E)product configuration.

Question 14

Which of the following refers to a company's suppliers,supplier's suppliers,and the processes for managing relationships with them?

A)Supplier's internal supply chain
B)External supply chain
C)Upstream portion of the supply chain
D)Downstream portion of the supply chain
E)Onstream portion of the supply chain

Question 15

An enterprise system can help reduce redundant business processes.

Question 16

Implementing enterprise software from Oracle enabled Alcoa to achieve all of the following except:

A)reduce requisition-to-pay cycle times.
B)reduce accounts payable transaction processing.
C)centralize financial activities.
D)centralize procurement activities.
E)obtain lower prices for raw materials.

Question 17

Which of the following provides 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?

A)Process management software
B)ERP systems
C)Groupware
D)CRM software
E)Supply chain management systems

Question 18

Which of the following refers to a company's organizations and processes for distributing and delivering products to the final customers?

A)Supplier's internal supply chain
B)External supply chain
C)Upstream portion of the supply chain
D)Downstream portion of the supply chain
E)Onstream portion of the supply chain

Question 19

You have been hired by Santori,Inc. ,a small company that imports and distributes an Italian sparkling water.The company is interested in what benefits an enterprise system would bring.Would an enterprise system be appropriate for this company? What steps would you take in determining this?

Question 20

Identify and describe three major enterprise applications.

Question 21

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)improved delivery service.
E)increased inventory levels.

Question 22

Supply chain execution systems provide all of the following functions except:

A)generating demand forecasts for products.
B)tracking the flow of finished goods.
C)managing materials.
D)managing warehouse operations.
E)managing the financial information involving all parties.

Question 23

Which of the following manages 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)Supply chain demand system
B)Supply chain delivery system
C)Supply chain planning system
D)Supply chain execution system
E)Supply chain optimization system

Question 24

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
E)Perfect information

Question 25

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
E)diffraction

Question 26

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
E)streamlined

Question 27

Why isn't overstocking warehouses 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.
E)It lowers fill rate.

Question 28

Supply chain management systems are a type of enterprise system.

Question 29

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system.

A)execution
B)planning
C)optimization
D)management
E)touch point

Question 30

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
E)maintenance;development

Question 31

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
E)Customer planning

Question 32

Which of the following enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product?

A)Supply chain demand system
B)Supply chain delivery system
C)Supply chain optimization system
D)Supply chain execution system
E)Supply chain planning system

Question 33

Supply chain planning systems perform all of the following functions except:

A)establish inventory levels for raw materials and finished goods.
B)identify the transportation mode to use for product delivery.
C)determine where to store finished goods.
D)determine how much product to manufacture in a given time period.
E)track the physical status of goods.

Question 34

As they move through the supply chain,________ are transformed into finished products and shipped to retailers and customers.

A)raw materials
B)intermediate products
C)basic products
D)natural resources
E)nascent products

Question 35

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

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

Question 36

If manufacturers had perfect information,they could implement a:

A)hyper-efficient strategy.
B)frictionless strategy.
C)streamlined strategy.
D)bullwhip strategy.
E)just-in-time strategy.

Question 37

The bullwhip effect can be countered by:

A)globalization.
B)disintermediation.
C)implementing a CRM.
D)reducing information uncertainty.
E)product differentiation.

Question 38

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
E)Extranets

Question 39

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

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

Question 40

The total time it takes to complete a business process,from start to finish,is called its ________ time.

A)development
B)cycle
C)fulfillment
D)service
E)actualization

Question 41

In a push-based model of SCM systems,actual customer orders or purchases trigger events in the supply chain.

Question 42

From your reading of the LG Electronics case study,the company implemented JDA software solutions to solve what problems?

A)Lack of brand recognition
B)Lack of coordination among production facilities
C)Poor supply chain visibility for management
D)Shoddy record-keeping
E)Inefficient logistics

Question 43

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

Question 44

Plant Away is an Oregon-based retailer and distributor of trees and shrubs.They have hundreds of smaller nurseries based around the country that grow the plant stock.The majority of their business is conducted online.Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery.What unique problems might you anticipate they have in their supply chain? What might remedy these problems?

Question 45

Discuss the business value of supply chain management systems.

Question 46

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

Question 47

________ 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)DRM
E)PRM

Question 48

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

Question 49

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
E)point of service

Question 50

Identify two classifications for supply chain software.For each classification,identify five capabilities.

Question 51

The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain.

Question 52

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 53

What additional complexities are faced in global supply chains? How does the Internet help in managing global supply chains?

Question 54

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

Question 55

Identify two supply chain models.Which is better?

Question 56

Walmart is an example of a push-based model.

Question 57

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

Question 58

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

Question 59

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

A)E-mail
B)Website
C)Intranet
D)Retail store
E)Facebook

Question 60

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

Question 61

All CRM packages contain modules for PRM and ERM.

Question 62

The difference between push- and pull-based models is summarized by which of the following slogans?

A)Sell what we make,not make what we sell.
B)Push what we make,not pull what we make.
C)Make what we sell,not sell what we make.
D)Pull what we make,not push what we sell.
E)Make what we push,not push what we sell.

Question 63

SFA modules in CRM systems provide tools for all of the following except:

A)team selling.
B)territory management.
C)sales forecasting.
D)managing sales prospect and contact information.
E)managing customer service requests.

Question 64

Marketing modules in CRM systems provide tools for all of the following except:

A)assigning and managing customer service requests.
B)capturing prospect and customer data.
C)identifying profitable and unprofitable customers.
D)qualifying leads.
E)identifying opportunities for cross-selling.

Question 65

CRM systems help businesses achieve which of the following business objectives?

A)Automated accounting processes
B)Automated production forecasts
C)Faster time to market with new products and services
D)Enhanced supplier intimacy
E)Enhanced customer intimacy

Question 66

Operational CRM applications include tools for all of the following except:

A)sales force automation.
B)call center support.
C)marketing automation.
D)customer service support.
E)calculating CLTV.

Question 67

Which of the following customer relationship management applications provides analysis of customer data?

A)Operational CRM
B)Analytical CRM
C)Operational SCM
D)Analytical SFA
E)Operational SFA

Question 68

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.
E)organizing effective marketing campaigns.

Question 69

Which of the following tools is used to analyzing customer buying patterns?

A)CLTV
B)Analytical CRM
C)Operational CRM
D)Demand planning
E)SFA

Question 70

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

A)Analytical
B)Employee
C)Operational
D)Partner
E)Next-generation

Question 71

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.
E)turnover percentage.

Question 72

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

A)Returns management
B)Lead management
C)Channel promotions management
D)Events management
E)Customer satisfaction management

Question 73

________ 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)Customer
B)SOA
C)Marketing
D)Complex
E)SFA

Question 74

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.
E)human resources.

Question 75

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

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

Question 76

Walmart's continuous replenishment system is an example of a ________ model.

A)push-based
B)pull-based
C)enterprise-based
D)supply chain optimization
E)forecast-based

Question 77

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

A)operational CRM.
B)direct marketing.
C)sales force automation.
D)cross-channel promotions.
E)cross-selling.

Question 78

Major CRM application software vendors include Oracle,SAP,and Salesforce.com.

Question 79

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)Customer lifetime value
C)Cost per lead
D)Cost per sale
E)Customer average value

Question 80

Major CRM products typically have all of the following service capabilities except:

A)customer satisfaction management.
B)returns management.
C)call center & help desk.
D)service analytics.
E)order management.