Chapter 5 Questions Flashcards
Reengineering is all of the following except:
Gradual and systematic
Threatening to employees
Associated with very high reward if it succeeds
Associated with quick rewards if it succeeds
Sometimes suspected to be used to justify downsizing
Gradual and systematic
The major difference between an ERP and ERP II system is this feature.
Advances in software usability and flexibility
Information is made immediately available to external stakeholders using social and collaborative tools
Information is made available to all departments in the company
Advance quering and reporting capabilities
Close integration with e-business technologies
Information is made immediately available to external stakeholders using social and collaborative tools
This is an approach that links a company with providers of the raw components it needs to make a product or service, manufacture that product or service, and delivers it to customers.
Customer Relationship Management (CRM) Supply Chain Management (SCM) Product Lifecycle Management (PLM) Enterprise Resource Planning (ERP) Value Chain Management (VCM)
Supply Chain Management (SCM)
Early computer systems were designed to support the silo perspective rather than a cross-functional business process approach.
True
False
True
Which one of the following enterprise systems is social IT increasingly integrating with?
ERP SCM PLM CRM SAP
CRM
ERP systems have all of the following characteristics except:
They are expensive
They are implemented in all, or nearly all, large organizations
They are difficult to implement
Organizations use them to reduce redundancy and make better decisions
They are expensive but are easy to use
They are expensive but are easy to use
Enterprise systems are useful for organizations seeking to do all of the following EXCEPT:
Encourage duplication of data Centralize decision making Make effective use of organizational databases Unify operations Standardize processes
Encourage duplication of data
ERP systems are expensive for all of the following reasons EXCEPT:
The software is costly to purchase.
There is an enormous amount of work required to implement.
There are a number of hidden costs such as project management, training and support.
They require organizational changes and impact the way people work.
They do not require business process redesign.
They do not require business process redesign.
Enterprise Rent-A-Car was able to model and better understand how service requests were handles and then optimize the process, greatly benefiting the customer experience. Enterprise achieved this benefit using which tool?
Business Process Management (BPM) Radical redesign New Product Development (NPD) Six sigma Product life cycle management
Business Process Management (BPM)
These are comprehensive software packages that incorporate all modules needed to run the internal operations of business. They should include the following modules: Manufacturing, Accounting, Human Resources and Sales.
SCM systems Groupware system ERP systems CRM systems PLM systems
ERP systems
In this business structure the firm is a hierarchy organized around a set of functions. Each group has a core competency that it concentrates upon.
Technology Business reengineering approach Functional Process Control Business process
Functional
Apple Inc. has developed iTunes, a unique propriety software system that supports Apple’s need to delivery digital content to its customers. Apple chooses to develop iTunes rather than use an existing enterprise system solution, most likely because:
The critical process of content delivery is Apple’s strategic advantage.
The ability to integrate with existing enterprise systems does not exist.
It was too costly for Apple to purchase an enterprise system.
The existing solutions were developed by a fierce competitor.
Apple was not satisfied with the look and feel of existing enterprise systems.
The critical process of content delivery is Apple’s strategic advantage.
Sloan Valve Company redesigned their new product development process and as a result greatly reduced time-to-market as well as improved quality. Which one of the following enterprise systems supported Sloan’s transformation?
ERP SCM PLM TQM NPD
PLM
The system should drive the transformation in a company when:
The firm has competitive advantage because of its processes.
Advantageous processes exist in the organization.
When a firm has been around for a long time.
When the systems are in a crisis.
When employees have quite a lot of knowledge about transformation in the firm.
When the systems are in a crisis.
When would an organization elect to use BPR over TQM?
When they want to make small, incremental changes
When they need to attain aggressive improvement goals
When they have time to refine their improvement goals
When there is not a need to make significant immediate changes
When they want the employees to have control over the changes
When they need to attain aggressive improvement goals
ERP systems are credited with establishing new business models, rather than simply making a firm improve its practices.
True
False
False
At the heart of how a business operates, you will find a collection of core business processes.
True
False
True
All of the following are negative outcomes found in a firm that is set up using a functional model, EXCEPT for:
suboptimization communication gaps lose site of the business goals lost information redundancy of expertise
redundancy of expertise
The Six Sigma process received its name from:
The intersection of six bell curves, where there are no errors
Six degrees of freedom in removing an error, called “sigma”
Six tries to change or give up
Six standard deviations, or less than 3.4 defects per million
Sigma, the computer company that invented it
Six standard deviations, or less than 3.4 defects per million
Organizations use the enterprise system to drive the redesign of a business process (rather than the process driving the system implementation) for all of the following reasons EXCEPT:
The organization is just starting out and has no defined processes.
The business process itself is not seen as a competitive strategic advantage.
There is little time or resources to deviate from best practices.
The organization has highly specialized processes that are not seen as best practices.
The needs of the business are met by the enterprise system.
The organization has highly specialized processes that are not seen as best practices.
Businesses today link their customers and suppliers through a single network that optimizes cost and opportunities for all. This is possible because of all of the following reasons EXCEPT:
Standardized communication networks (like the Internet)
The available of SCM enterprise systems
The inability to coordinate workflow across organizational boundaries
The globalization of business
The ubiquity of IT
The inability to coordinate workflow across organizational boundaries
____________ is an all-encompassing tool used for modeling, building, executing and monitoring business processes that go across organizational boundaries (and often systems).
Enterprise system Workflow diagrams SharePoint Business Process Management systems Integrated information systems
Business Process Management systems
Computer systems in the 1960s and early 1970s were typically designed around a specific departmental need and did not interface very well. These systems were designed to support:
The functional perspective. The entire enterprise. The silo perspective. Incremental change. Social IT and mobile needs.
The silo perspective.
The Process Perspective is also called the Silo perspective,
True
False
False
All of the following are good metrics a firm can use to measure the success of a business process EXCEPT for:
A customer’s satisfaction with the quality of the product received.
The time elapsed from when the customer placed an order to the time the product is received.
The change is demographics of a region.
The number of orders the customer places in a given timeframe.
Revenue received from a service.
The change is demographics of a region.
Personnel often react more favorable to incremental change rather than radical change because incremental change gives them control and ownership of improvements.
True
False
True
ERP has all of the following advantages except:
Modules throughout a corporation can communicate with each other
While purchasing is difficult, the vendors such as SAP make it worthwhile due to easy implementation
Have predefined software that represents “pretty good practices” or even “best practices”
Enables standardized procedures in an organization
Reduces inconsistent data stored in various locations of the organization
While purchasing is difficult, the vendors such as SAP make it worthwhile due to easy implementation
The functional perspective keeps the “big picture” in view.
True
False
False
Business processes are functional in nature and rarely cut across different departments in an organization.
True
False
False
