Chapter 5 Questions Flashcards

1
Q

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

A

Gradual and systematic

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2
Q

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

A

Information is made immediately available to external stakeholders using social and collaborative tools

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3
Q

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)
A

Supply Chain Management (SCM)

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4
Q

Early computer systems were designed to support the silo perspective rather than a cross-functional business process approach.

True
False

A

True

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5
Q

Which one of the following enterprise systems is social IT increasingly integrating with?

ERP
SCM
PLM
CRM
SAP
A

CRM

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6
Q

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

A

They are expensive but are easy to use

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7
Q

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
A

Encourage duplication of data

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8
Q

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.

A

They do not require business process redesign.

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9
Q

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
A

Business Process Management (BPM)

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10
Q

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
A

ERP systems

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11
Q

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
A

Functional

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12
Q

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.

A

The critical process of content delivery is Apple’s strategic advantage.

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13
Q

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
A

PLM

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14
Q

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.

A

When the systems are in a crisis.

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15
Q

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

A

When they need to attain aggressive improvement goals

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16
Q

ERP systems are credited with establishing new business models, rather than simply making a firm improve its practices.

True
False

A

False

17
Q

At the heart of how a business operates, you will find a collection of core business processes.

True
False

A

True

18
Q

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
A

redundancy of expertise

19
Q

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

A

Six standard deviations, or less than 3.4 defects per million

20
Q

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.

A

The organization has highly specialized processes that are not seen as best practices.

21
Q

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

A

The inability to coordinate workflow across organizational boundaries

22
Q

____________ 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
A

Business Process Management systems

23
Q

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.
A

The silo perspective.

24
Q

The Process Perspective is also called the Silo perspective,

True
False

A

False

25
Q

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.

A

The change is demographics of a region.

26
Q

Personnel often react more favorable to incremental change rather than radical change because incremental change gives them control and ownership of improvements.

True
False

A

True

27
Q

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

A

While purchasing is difficult, the vendors such as SAP make it worthwhile due to easy implementation

28
Q

The functional perspective keeps the “big picture” in view.

True
False

A

False

29
Q

Business processes are functional in nature and rarely cut across different departments in an organization.

True
False

A

False