Question 1

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

Accepted Answer

ERP failures often occur because organizations trust the promises of ERP software vendors without fully addressing the unique needs and challenges of their business. This can lead to the implementation of an ERP system that does not meet their specific requirements, causing significant issues and potential failure. Therefore, it is crucial for companies to thoroughly evaluate their ERP options and carefully consider their business goals and objectives before investing in an ERP solution.

Question 2

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

Accepted Answer

Many studies have shown that increasing customer retention rates can significantly boost a company's profits. The exact percentage increase may vary depending on the industry and other factors, but a 5 percent increase in customer retention can certainly lead to an 85 percent boost in profits or more for some companies.

Question 3

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

Accepted Answer

CRM (Customer Relationship Management) systems provide real-time access to a customer's account status and history, enabling sales representatives to have up-to-date information before scheduling sales calls.

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.

Accepted Answer

The statement accurately describes the four important trends shaping the continuing evolution of ERP.

Question 5

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

Accepted Answer

Failed ERP implementations have resulted in significant financial losses for companies, with some cases reaching 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.

Accepted Answer

According to the textbook case, fragmented internal systems are common in companies that experience rapid growth because they often add new systems and processes without integrating them properly.

Question 7

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

Accepted Answer

The answer of ERP software suites typically consist of integrated...

Question 8

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

Accepted Answer

The statement is a common business belief but not a universal truth. The actual cost can vary depending on the industry, company, and specific circumstances.

Question 9

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

Accepted Answer

The answer of CRM can keep track of when a...

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.

Accepted Answer

The answer of CRM systems store customer account data in...

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.

Accepted Answer

The statement is true. The growth of the Internet and corporate networks prompted software companies to integrate Web interfaces and networking capabilities into ERP systems to allow for more efficient communication and collaboration between different departments and locations.

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.

Accepted Answer

This statement is true. Some e-business suites will disassemble components of an ERP system and integrate them into other modules, while others will keep ERP as a distinct module within the overall software suite.

Question 13

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

Accepted Answer

This is correct. EDI software is used to convert a company's proprietary document formats into standardized EDI formats so that they can be exchanged electronically with other trading partners.

Question 14

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

Accepted Answer

ERP systems have modules and functionalities specifically designed to support the management of human resources, such as recruitment, performance appraisal, payroll, and benefits administration.

Question 15

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

Accepted Answer

The three steps in the customer life cycle are typically considered to be acquire, engage, and retain.

Question 16

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

Accepted Answer

Studies have shown that the majority of complaining customers (up to 70%) will do business with a company again if their issue is resolved quickly and effectively. Therefore, it is important for companies to address customer complaints promptly in order to retain their business.

Question 17

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

Accepted Answer

This statement is true as companies are increasingly using Internet technologies to improve and streamline their supply chain management, decision making and information sharing processes. This helps them to operate more efficiently and effectively in today's digital age.

Question 18

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

Accepted Answer

CRM software often requires integration with existing systems such as databases, email servers, and customer-facing portals, which can make the installation and configuration process complex and time-consuming.

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.

Accepted Answer

The answer of Call center software helps customer service reps...

Question 20

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

Accepted Answer

Many industry research groups and studies have found that a significant portion of CRM (Customer Relationship Management) projects fail to deliver the promised results or meet the expectations of businesses, often due to issues like poor implementation, lack of user adoption, or misalignment with business objectives.

Quiz 8: Business Across the Enterprise