Chapter 9 MIS

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation. ERM DRM SCM PRM SFA

ERM

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 process management software. ERP systems. groupware. application software. supply chain management systems.

ERP systems.

________ systems are based on a suite of software models used to support business activities across the firm. Product differentiation Supply chain Enterprise Global Organizational

Enterprise

Which of the following statements about enterprise applications is not true? Enterprise applications introduce "switching costs." Enterprise applications require fundamental changes in the way a business operates. Enterprise applications are based on organization-wide definitions of data. Enterprise applications require organizational learning. Enterprise applications are best implemented when few changes in business processes are required.

Enterprise applications are best implemented when few changes in business processes are required.

Which of the following is not true about enterprise systems? Enterprise software is expressly built to allow companies to mimic their unique business practices. Enterprise software includes analytical tools to evaluate overall organizational performance. Enterprise systems provide firmwide information to help managers make better decisions. Enterprise system data have standardized definitions and formats that are accepted by the entire organization. Enterprise systems help firms respond rapidly to customer requests for information or products.

Enterprise software is expressly built to allow companies to mimic their unique business practices.

All CRM packages contain modules for PRM and ERM. True False

False

An enterprise system helps reduce redundant business processes. True False

False

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

False

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

False

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

False

Supply chain management systems are a type of enterprise system. True False

False

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. True False

False

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

False

Walmart is an example of a push-based model. True False

False

Why is overstocking warehouses not an effective solution for a problem of low availability? It lowers fill rate. It does not speed product time to market. It increases inventory costs. It increases sales costs. It is an inefficient use of raw materials.

It increases inventory costs.

________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation. Next-generation Operational Partner Employee Analytical

Operational

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

PRM

________ 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. Complex SFA SOA Marketing Customer

SFA

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? Map the company's business processes to the software's business processes. Rewrite the software to support the way the company's business processes work. Select the functions of the system you wish to use. Map the software's business processes to the company's business processes. Select the business processes you wish to automate.

Select the functions of the system you wish to use.

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

True

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

True

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

True

Cross-selling is the marketing of complementary products to customers. True False

True

Enterprise systems include analytical tools. True False

True

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

True

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

True

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

True

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

True

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

True

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget. True False

True

Next-generation enterprise suites use ________ and SOA to link to systems of customers and suppliers. operational CRM employee relationship management Web services just-in-time strategy cross-selling

Web services

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

analytical CRM

Analyzing customer buying patterns is an example of cross-selling. demand planning. operational CRM. CLTV. analytical CRM.

analytical CRM.

Customer service modules in CRM systems provide tools for capturing prospect and customer data. managing sales prospect and contact information. organizing effective marketing campaigns. identifying profitable and unprofitable customers. assigning and managing customer service requests.

assigning and managing customer service requests.

Enterprise software is built around thousands of predefined business processes that reflect industry goals. cutting edge workflow analyses. the firm's culture. the firm's organization. best practices.

best practices.

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. network diffraction bullwhip ripple whirlpool

bullwhip

Enterprise application vendors are now including ________ features, such as tools for data visualization, flexible reporting, and ad-hoc analysis, as part of the application. ERM SOA PRM business intelligence social media

business intelligence

In order to achieve maximum benefit from an enterprise software package, a business uses only the processes in the software that match its own processes. selects only the software that best matches its existing business processes. changes the way it works to match the software's business processes. retains legacy systems that best work with the software. customizes the software to match all of its business processes.

changes the way it works to match the software's business processes.

The measurement of the number of customers who stop using or purchasing products or services from a company is called CLTV. switch rate. switching costs. churn rate. turnover percentage.

churn rate.

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with configuration tables. Web services. middleware. data dictionaries. customized plug-ins.

configuration tables.

From your reading of the Scott's Miracle-Gro case study, the company implemented SAP and JDA enterprise and supply chain planning systems to solve what problems? poor supply chain visibility for management lack of brand recognition shoddy record-keeping coordination issues caused by the merger of Scott's and MiracleGro lack of coordination among production facilities

coordination issues caused by the merger of Scott's and MiracleGro

Selling a customer with a checking account a home improvement loan is an example of cross-selling. sales force automation. operational CRM. cross-channel promotions. direct marketing.

cross-selling.

CRM systems help businesses obtain which business objective? improved decision making operational excellence survival new products and services customer and supplier intimacy

customer and supplier intimacy

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? churn rate cost per sale cost per lead customer lifetime value customer average value

customer lifetime value

The total time it takes to complete a business process, from start to finish, is called its ________ time. fulfillment service cycle actualization development

cycle

Which supply chain planning function determines how much product is needed to satisfy all customer demands? distribution management customer planning demand planning replenishment planning order planning

demand planning

A build-to-order supply-chain model is also called a ________ model. replenishment-driven demand-driven supply-based push-based market-driven

demand-driven

Supply chain complexity and scale increases when firms manage the procurement, manufacturing, and distribution functions themselves. modify their existing workflows to comply with supply-chain management systems. move to globalization. outsource more labor. develop products and services that coordinate with many firms and suppliers.

develop products and services that coordinate with many firms and suppliers.

A company's organizations and processes for distributing and delivering products to the final customers is the onstream portion of the supply chain. downstream portion of the supply chain. supplier's internal supply chain. external supply chain. upstream portion of the supply chain.

downstream portion of the supply chain.

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. middleware ERP systems cloud solutions legacy systems e-business suites

e-business suites

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a supply chain ________ system. touch point optimization management planning execution

execution

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. optimization delivery demand planning execution

execution

Marketing modules in CRM systems would provide tools for capturing prospect and customer data. assigning and managing customer service requests. increasing efficiency of call centers. identifying profitable and unprofitable customers. managing sales prospect and contact information.

identifying profitable and unprofitable customers.

Capabilities of supply chain execution systems would not include managing the financial information involving all parties. tracking the flow of finished goods. managing warehouse operations. managing materials. identifying the optimal transportation mode.

identifying the optimal transportation mode.

The business value of an effective supply chain management system includes all of the following except improved delivery service. supply matched to demand. increased inventory levels. cost reduction. faster time to market.

improved delivery service.

Components or parts of finished products are referred to as mid-chain products. secondary products. raw materials. intermediate products. upstream materials.

intermediate products.

Which of the following would not be considered a contact point? intranet Web site Facebook retail store e-mail

intranet

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. frictionless just-in-time bullwhip streamlined safety-stock

just-in-time

If manufacturers had perfect information, they could implement a frictionless strategy. just-in-time strategy. streamlined strategy. hyper-efficient strategy. bullwhip strategy.

just-in-time strategy.

Which of the following is an important capability for sales processes that is found in most major CRM software products? customer satisfaction management events management returns management channel promotions management lead management

lead management

SFA modules in CRM systems would provide tools for identifying profitable and unprofitable customers. capturing prospect and customer data. assigning and managing customer service requests. managing sales prospect and contact information. employee performance management.

managing sales prospect and contact information.

Customer relationship management systems typically provide software and online tools for sales, customer service, and public relations. marketing. human resources. account management. advertising.

marketing.

Which of the following is not one of the four types of customers described in the case study on Graybar? core customers service-drain customers marginal customers opportunistic customers niche customers

niche customers

From your reading of the chapter's opening case, ACH Food Companies implemented new information systems in order to achieve which of the following business objectives? improved decision making survival operational excellence new products and services customer and supplier intimacy

operational excellence

All of the following service capabilities would be found in major CRM products except customer satisfaction management. call center & help desk. service analytics. returns management. order management.

order management.

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. demand optimization execution delivery planning

planning

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. demand; continual maintenance; development push; pull upstream; downstream planning; execution

planning; execution

A supply chain driven by actual customer orders or purchases follows a ________ model. pull-based optimized build-to-stock replenishment-driven push-based

pull-based

Walmart's continuous replenishment system is an example of a ________ model. pull-based forecast-based enterprise-based push-based supply chain optimization

pull-based

As they move through the supply chain, ________ are transformed into finished products and shipped to retailers and customers. intermediate products nascent products natural resources basic products raw materials

raw materials

The bullwhip effect is countered by globalization. implementing an SCM. disintermediation. product differentiation. reducing information uncertainty.

reducing information uncertainty.

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain? demand planning continuous replenishment just-in-time strategies perfect information safety stock

safety stock

Operational CRM applications include tools for pinpointing unprofitable customers. identifying buying patterns. calculating CLTV. creating segments for targeted marketing. salesforce automation.

salesforce automation.

Using social networking tools to converse with customers is called analytical CRM. social CRM. PRM. ERM. operational CRM.

social CRM.

Which of the following is not an example of next-generation enterprise applications? cloud solutions solutions incorporating SOA open-source solutions social CRM solutions incorporating SCM

solutions incorporating SCM

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 supply chain. distribution channel. marketing channel. value chain. information system.

supply chain.

Concurrent supply chains are made possible by which technology? the Internet supply-chain management systems extranets just-in-time supply-chain technologies ERP systems

the Internet

A ________ is a method of interaction with a customer, such as telephone or customer service desk. client channel sales point point of service point of presence touch point

touch point

Supply chain planning systems perform all of the following functions except establish inventory levels for raw materials and finished goods. track the physical status of goods. determine how much product to manufacture in a given time period. determine where to store finished goods. identify the transportation mode to use for product delivery.

track the physical status of goods.

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the supplier's internal supply chain. upstream portion of the supply chain. external supply chain. downstream portion of the supply chain. onstream portion of the supply chain.

upstream portion of the supply chain.