Chapter 5: Information Systems and Digital Transformation

Question 1

When an organization has silos, departments are organized on the basis of their:

Answer 1

Core Competencies

Question 2

What are the 3 Advantages of Silos?

Answer 2

1. They allow an organization to optimize expertise and training
2. Allow the organization to avoid redundancy in expertise
3. Easier to benchmark outside organizations

Question 3

What are the 4 disadvantages of Silos?

Answer 3

1. Individual departments often recreate information maintained by other departments
2. Communication gaps between departments are often wide
3. Handoffs between silos are often a source of problems
4. Silos tend to lose sight of the objective of the overall organization

Question 4

What are the 3 advantages of the Business Process Perspective

Answer 4

1. Avoids or reduces duplicate work
2. Facilitates cross‐functional communication
3. Optimize business processes

Question 5

What is an interrelated, sequential set of activities and tasks that turns inputs into outputs?

Answer 5

A Process

Question 6

Agile business processes are designed to

Answer 6

simplify redesign and reconfiguration.

Question 7

What are the two techniques used to transform a static business process?

Answer 7

1. Incremental Change
2. Radical Process Redesign (BPR)

Question 8

What are two examples of Incremental Change approach?

Answer 8

1. Total Quality Management
2. Six Sigma

Question 9

When do you use Radical Change?

Answer 9

1. There is a need for a major change in a short amount of time.
2. Quick impact to key metrics

Question 10

What are a series of connected tasks and activities performed by people and computers that together form a business process

Answer 10

Workflow

Question 11

Shows a picture, or map, of the sequence and detail of each process step

Answer 11

Workflow diagram

Question 12

These Systems provide a way to build, execute, and monitor automated processes that are intelligent, dynamic, and may go across organizational boundaries.

Answer 12

Business Process Management Systems (BPM)

Question 13

A set of IS tools that many organizations use to enable information flow within and between processes across the organization

Answer 13

What are Enterprise Systems?

Question 14

What are examples of Enterprise Systems?

Answer 14

1. ERP
2. SCM
3. CRM
4. PLM

Question 15

Enterprise Resource Planning (ERP)

Question 16

A set of software programs that supports management activities performed to obtain, enhance relationships with, and retain customers

Answer 16

Customer Relationship Management (CRM)

Question 17

Supply Chain Management (SCM)

Answer 17

manages the integrated supply chain

Question 18

Bullwhip Effect

Answer 18

Erratic and wild changes in forecasted demand that circulates through the supply chain.

Question 19

What are the 5 Advantages of an ERP System

Answer 19

1. Represent “best practices”
2. Improves module Communication
3. Enable centralized decision making
4. Eliminate redundant data entry
5. Enable standardized procedures

Question 20

What are the 6 disadvantages of an ERP System

Answer 20

1. Require enormous amount of work
2. Require redesign of business practices for maximum benefit
3. Require organizational changes
4. Have high risk of failure
5. Have very high cost
6. Are sold as a suite, not individual modules