T/F
Operational CRM systems support front-office processes.
True
Selling additional products to a customer based on what that customer purchased in the past is called:
Cross Selling
A decision for which standardized processes exist would be:
Structured
Decisions concerning the long-range goals and policies for growth and resource allocation in an organization would be:
Strategic planning
T/F
Organizations would typically develop a data warehouse as a point solution to a departmental need.
False
T/F
BI can be used to fundamentally transform the ways in which a company competes in the marketplace.
True
T/F
A transaction is any business event that generates data worthy of being captured and stored in a database.
True
___ are an evolution of ___.
ERP systems, TPS
T/F
The production process begins and ends in the warehouse department but involves the production department as well.
True
T/F
When the company produces goods to create or increase an inventory that is called make-to-order.
False
T/F
The procurement process begins in the warehouse department (need to buy) and ends in the accounting department (send payment).
True
T/F
The three-way-match compares the purchase order, the goods receipt document, and the invoice.
True
T/F
The order fulfillment process begins in the sales department and ends in the accounting department.
True
T/F
Sell-from-stock is closely associated with customization.
False
The flow of materials, information, money, orders, and services from raw material suppliers, through factories and warehouses, to the end customers is:
Supply chain
Sourcing and procurement from external suppliers occurs:
Upstream segment of supply chain
T/F
The production process in the pull model begins with a forecast.
False
T/F
Another name for the push model is make-to-order.
False
T/F
Routine reports are produced at scheduled intervals and may contain information not included on ad-hoc reports.
False
___ reports include only information that is outside certain threshold standards.
Exception
T/F
Erratic shifts in orders up and down the supply chain is called the bullwhip effect.
True
T/F
The business strategy in which a business purchases its upstream supplier(s) to ensure that essential supplies are available as needed is called horizontal integration.
False
CRM systems hosted by a vendor in the vendor's data center are:
On-demand CRM systems
CRM systems whose source code is available at no cost
Open-source CRM systems
T/F
Electronic data interchange is a communication standard that enables business partners to electronically exchange routine documents.
True
___ link business partners over the Internet by providing them access to certain areas of each other's corporate ___.
Extranets, intranets
When a company implements a standard ERP package, using the package's built-in configuration options, this is called:
Vanilla approach
When a company rents ERP software from an ERP vendor who delivers its products over the Internet, this is called:
Software-as-a-service approach
T/F
ERP systems are essentially designed to eliminate information silos.
True
T/F
ERP II systems are provide Web-enabled links among a company's key business systems and its customers, suppliers, distributors, and others.
True
T/F
The underlying premise of customer relationship management is to treat all customers the same.
False
T/F
The basic idea behind data consolidation is for an organization to build a 360-degree view of each customer.
True
___ attempts to predict the impact of a change in the assumptions (input data) on the proposed solution.
Sensitivity analysis
___ attempts to calculate the value of the inputs necessary to achieve a desired level of output
Goal-seeking analysis
T/F
Customer-touching applications are known as electronic CRM systems.
True
T/F
Loyalty programs are designed to reward past behavior.
False
T/F
Geographic information systems capture, integrate, manipulate, and display data using digitized maps.
True
T/F
Geocoding means that every record or digital object has an identified geographical location.
True
T/F
A dashboard supports the user's critical success factors.
True
T/F
A dashboard enables drill down, trend analysis, and exception reporting.
True
T/F
Online analytical processing involves "slicing and dicing" data stored in a multidimensional format.
True
T/F
Data mining can be used to predict trends and patterns.
True
T/F
In an organization, the ratio of inputs to outputs is productivity.
True
When a manager functions as an entrepreneur, she is fulfilling which of these roles?
Decisional
T/F
Analytical CRM systems provide business intelligence by analyzing customer behavior and perceptions.
True
T/F
Customer-facing applications and customer-touching applications provide data to be used in analytical CRM systems.
True
T/F
Early information systems mainly supported the information roles of managers.
True
In the _____ phase of the decision making process, managers set criteria for the evaluation of alternative potential solutions.
Design
Characteristics of an organizational decision support system include which of the following?
affects several organizational units or corporate problems
cuts across organizational functions or hierarchical layers
involves computer-based technologies
integrates with enterprisewide information systems
All of the above
Which of the following is not a reason that managers need IT support?
Decisions are becoming less complex
_____ refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions.
Business intelligence
_____ are computer-based information systems that combine models and data in an attempt to solve semistructured and some unstructured problems with extensive user involvement.
Decision support systems
T/F
BI software is not yet available to "frontline personnel" (such as call center operators) within an organization.
False
DSS characteristics include which of the following?
support managers at all organizational levels
support all phases of the decision making process
adaptable to changing conditions
usually utilize quantitative models
all of the above
T/F
Data Mining can help organizations to identify previously unknown patterns.
True
_____ is the study of the impact that changes in one or more variables of a decision-making model have on other variables.
Sensitivity analysis
_____ is the study of the impact of a change in the assumptions (input data) on the proposed solution.
What-if analysis
Which of the following is not a characteristic of DSS?
Relatively difficult to use and construct
This information system uses data visualization technologies to analyze and display data in the form of digital maps for planning and decision making purposes.
Geographical information system
Which capability of digital dashboards enables users to go into greater detail?
Drill down
Which capability of digital dashboards enables users to have reports that highlight deviations larger than certain thresholds.
Exception reporting
Methods that organizations use to interact with their customers are called:
Touch point
A(n) _____ is software that helps companies acquire and retain customers.
customer relationship management system
T/F
Up-selling is the practice of marketing additional related products to customers based on previous purchases.
Fasle
T/F
The optimal result of an organization's CRM efforts is to maximize the number of high-value repeat customers while minimizing customer churn.
The optimal result of an organization's CRM efforts is to maximize the number of high-value repeat customers while minimizing customer churn.
T/F
All CRM policies have two basic elements: identifying customer touch points and consolidating data about each customer.
True
T/F
When customers physically enter a store, it is an example of a customer touch point.
True
T/F
The Web and point-of-sale terminals are examples of customer-touching CRM applications.
True
T/F
Bundling is a form of up-selling, where a business sells a group of products together at a price that is lower than the combined individual prices of the products.
False
_____ includes those areas where customers directly interact with the company.
Customer-facing CRM
_____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process.
Sales force automation
A check-in kiosk at the airport would be what type of CRM application?
Customer touching
_____ analyze customer data for designing and executing targeted marketing campaigns.
Analytical CRM
T/F
The biggest risk of open-source CRM is quality control.
True
_____ is a CRM system that is hosted by an external vendor in the vendor's data center.
On-demand CRM
The benefits of open-source CRM include all of the following except:
it has more functionality than in-house CRM systems
The flows in supply chains consist of which of the following?
Materials
Information
Finance
All of the these
T/F
A demand chain refers to the flow of materials, information, money, and services from suppliers to the end customer.
False
A company's suppliers, suppliers' suppliers, and the processes for managing them is the:
upstream portion of the supply chain
_____ are the physical products, raw materials, and supplies that flow along a supply chain.
Material flows
T/F
Supply chain management systems are a type of transaction processing system.
False
T/F
The pull model is most closely associated with mass customization.
True
T/F
The push model is most closely associated with mass production.
True
Problems along the supply chain include which of the following?
Poor customer service
High inventory costs
Loss of revenue
Increase cycle times
All of the above
T/F
Electronic data interchange is a communication standard that enables the electronic transfer of routine documents between business partners.
True
Which of the following is not a limitation of EDI?
It is expensive, but ongoing operating costs are low
A _____ is any business event that generates data worthy of being captured and stored in the organization's database.
Transaction
T/F
Transactions processing systems monitor, collect, store, and process data generated from all business events.
True
T/F
Transaction processing systems typically provide information to managers in the functional areas.
False
Which of the following is not a function of functional area information systems?
Providing data from business events to the corporate database
The characteristics of ERP systems include which of the following?
integrate the planning, management, and use of all resources of the organization
provide information necessary to control the business processes of the organization
include a set of interdependent software modules
may force companies to change existing bu
T/F
Enterprise resource planning software is relatively straightforward to implement.
False
A _____ is a set of related steps or procedures designed to produce a specific outcome.
Business process
T/F
The business processes in ERP software are typically defined by the company using the software.
False
T/F
ERP software includes a set of dependent software modules, each with its own database, that provide support for the business processes in the functional areas.
False
T/F
The business processes in ERP software are typically predefined by the best practices that the ERP vendor has developed.
True
T/F
A cross departmental process always ends in a different department than it originates in.
False
During which of the common cross functional business processes does a company purchase goods from vendors?
Procurement Process
_____ reports show a greater level of detail than is included in routine reports.
Drill-down
_____ reports contain special information not found in routine reports.
Ad hoc
_____ reports are produced at scheduled intervals.
Routine
T/F
Business intelligence applications are used for gathering, storing, accessing, and analyzing data to help business users make better decisions.
True
Which of the manager's roles do modern information systems support?
All of the following: interpersonal roles, informational roles, and decisional roles
Which of the following is not a reason that managers need IT support?
The number of alternatives is decreasing.
The type of decision that can be made by following a definite procedure is called a(n) ______ decision.
Structured
T/F
BI refers to only those technologies that obtain data from warehouses.
False
T/F
Independent data stores or data silos are an efficient way to store proprietary data because they deny access to unauthorized parties.
False
Business intelligence applications include:
Microsoft Excel spreadsheets
Data warehouses
Special purpose analytic packages
All of these
Searching for valuable business information in a database, data warehouse, or data mart refers to _____.
Data mining
At the end of a semester, a student knows that she must score at least an 81 on the final exam to receive an A in the course. She decided that she can make the 81 by studying the material only the night before the exam. She has just performed what kind of
Goal-seeking
Which of the following is not a characteristic of DSS?
They support all phases of the decision-making process.
The most distinguishing characteristic of geographical information systems is:
Every record or digital object has an identified geographical location.
An important trend is the combination of geographical information systems with _____ to form geospatial technologies.
Global positioning systems
A(n) _____ provides rapid access to timely information and direct access to management reports.
Decision support system
____ is(are) involved with monitoring and managing an organization's performance according to the organization's key performance indicators.
Corporate performance management
Which of the following factors is associated specifically with corporate performance management for online businesses?
Network traffic
T/F
The One Ford initiative focused exclusively on efficiencies in Ford's production plants.
False
T/F
The data processed by transaction processing systems provide the inputs for other organizational information systems.
True
Organizational transactions are typically _____ volume, _____, and therefore _____ to computerize.
High, repetitive, easy
Key features of transaction processing systems include:
dependability
reliability
processing capacity
all of these
T/F
In batch processing, the data are collected from transactions as they occur and placed in groups or batches that are processed as they occur.
False
Information systems for accounting and finance incorporate the following functions: (check all that apply)
Budgeting
Auditing
Financial planning and forecasting
Information Systems for marketing incorporate the following functions:
Customer relationship management
Information Systems for production and operations management (POM) incorporate the following functions: (check all that apply)
Planning production and operations
Supply chain management
Inventory and quality management
Which of the following is not a function of functional area information systems?
Providing data from business events to the corporate database
T/F
Functional information systems support the entire enterprise or major portions of it.
False
T/F
The major objective of ERP Systems is to integrate an organization's various functional areas to facilitate the seamless flow of information.
True
T/F
Enterprise resource management is an enterprise wide effort intended primarily to acquire and retain customers.
False
_____ integrate the planning, management, and use of all of an organization's resources and are designed to tightly integrate the functional areas of the organization.
Enterprise resource planning systems
T/F
Financial management, operations management, and human resource management are core ERP modules.
True
T/F
The three common cross functional business processes supported by an ERP system are procurement, production and reporting.
False
_____ reports summarize the performance of critical activities.
Key indicator
T/F
Exception reports show a greater level of detail than is included in routine reports.
False
To effectively manage by exception (i.e., use exception reports), the company must first create:
Performance standards
According to the closing case, the consequences of customizing an ERP system to accurately reflect a company's business process can include:
Increased maintenance expenses
The inability to incorporate the latest technological developments
The failure to sustain a competitive advantage
All of these
T/F
Small companies do not have to worry about CRM as it is only essential for large organizations..
False
T/F
Companies use CRM systems to recreate the intimate personal relationship that once existed between them and their customers.
True
T/F
CRM systems are designed to focus companies' marketing efforts on a large and broad group of people.
False
T/F
The basic idea behind CRM is to treat all customers in exactly the same way and give them the same great service.
False
Which of the following statements concerning CRM is not true?
CRM is designed for companies to interact with their customers as a group
The complete data set on a customer is called:
A 360-degree view
_____ systems support the front-office business processes, which directly interact with customers.
Operational CRM
The sales, marketing, and service functions are part of:
Operational CRM
T/F
Operational CRM systems support the front-office business processes, which directly interact with customers.
False
T/F
A call center is a type of customer interaction center.
True
T/F
Sales force automation is a customer-facing application.
True
_____ systems analyze customer data for designing and executing targeted marketing campaigns.
Analytical CRM
Which of the following technologies is(are) used by analytic CRM systems?
Data warehouses and data mining
Decision support systems
Transaction processing systems
All of these
Analytic CRM systems can be used for the following purposes except:
Delivering future product information to customers
_____ is a CRM system that is hosted by an external vendor in the vendor's data center.
On-demand CRM
The benefits of open-source CRM include all of the following except:
It has more functionality than in-house CRM systems.
____ is a CRM system that enables organizations to conduct communications related to customer management through portable media.
Mobile CRM
T/F
In the downstream segment of the supply chain, managers coordinate the receipt of orders from customers, develop a network of warehouses, select carriers to deliver their products to customers, and develop invoicing systems to receive payments from
True
T/F
Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
False
The ___________ is comprised of a company's suppliers, suppliers' suppliers, and the processes for managing them.
Upstream segment of the supply chain
Packaging, assembly, or manufacturing take place in the __________ segment of the supply chain.
Internal
Which of the following is not a goal of supply chain management?
To increase cycle time
The _____ is known as make-to-order.
Pull model
T/F
The goal of SCM systems is to reduce friction along the supply chain.
True
T/F
The goal of SCM systems is to reduce friction along the supply chain.
True
The _____ is known as make-to-stock.
Push model
_____ portals automate the business processes involved in selling products from a single supplier to multiple buyers.
Distribution
_____ portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.
Procurement
T/F
Electronic data interchange does not help much in reducing paper.
False
The primary goal of extranets is to do which of the following?
Foster collaboration between and among business partners