Homework Lance
7.1 True/False Questions
1) Both structured processes and dynamic processes are formally defined processes.
Answer: FALSE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
2) Structured processes are standardized processes that involve day-to-day operations.
Answer: TRUE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
3) Placing an order is an example of a structured process.
Answer: TRUE
Page Ref: 217
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
4) Structured processes are adaptive processes that change structure rapidly and readily.
Answer: FALSE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
5) Dynamic processes are inflexible.
Answer: FALSE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
6) Using social networking sites to generate buzz about a company’s new product line is an example of a dynamic process.
Answer: TRUE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
7) Dynamic processes support operational activities.
Answer: FALSE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
8) A structured departmental process enables departmental employees to fulfill the charter, purpose, and goals of a particular organizational unit.
Answer: TRUE
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
9) Lead generation and lead tracking are processes concerning the sales and marketing department.
Answer: TRUE
Page Ref: 218
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
10) Order and account tracking are business processes concerning the operations department.
Answer: FALSE
Page Ref: 218
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
11) A departmental information system is an organizational structure where a separate department is established by the organization to support and manage its information system.
Answer: FALSE
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
12) The procedures for using different information systems need to be understood only by the IT department of an organization.
Answer: FALSE
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
13) Departmental information systems typically support 10 to 100 users.
Answer: TRUE
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
14) Structured enterprise processes span an organization and support activities in multiple departments.
Answer: TRUE
Page Ref: 219
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
15) The solutions to problems in an enterprise system usually involve a single department of the organization.
Answer: FALSE
Page Ref: 219
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
16) CRM is an example of a structured interenterprise information systems.
Answer: FALSE
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
17) In interenterprise information systems, procedures are simple and generally not documented or formalized in any way.
Answer: FALSE
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
18) SCM is an interenterprise information system.
Answer: TRUE
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
19) Process efficiency is a measure of the ratio of process outputs to inputs.
Answer: TRUE
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
20) The structure of a process has no bearing on its efficiency.
Answer: FALSE
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
21) Adding process resources increases process effectiveness, but it adds costs.
Answer: TRUE
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
22) Changing the structure of a process always results in a change in resources as well, even if it is only a simple reordering of tasks.
Answer: FALSE
Page Ref: 221
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
23) Information systems improve process quality by augmenting the actions of the human who performs that activity.
Answer: TRUE
Page Ref: 221
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
24) An information silo is a condition that exists when data are isolated in separated information systems.
Answer: TRUE
Page Ref: 222
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
25) Islands of automation is another term for information silo.
Answer: TRUE
Page Ref: 222
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
26) The problems of duplicated data, disjointed systems, limited information, and inefficiencies are solved by information systems that support multiple databases.
Answer: FALSE
Page Ref: 225
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
27) Business process reengineering is the activity of altering and designing business processes to take advantage of new information systems.
Answer: TRUE
Page Ref: 227
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 4
28) Business process reengineering is a quick process, but it is exceedingly expensive.
Answer: FALSE
Page Ref: 227
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 4
29) In the customer acquisition phase of the customer life cycle, an organization categorizes its customers according to value and attempts to win back high-value customers.
Answer: FALSE
Page Ref: 229
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
30) Relationship management processes increase the value of existing customers by selling them more product.
Answer: TRUE
Page Ref: 229
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
31) CRM systems incorporate accounting, manufacturing, inventory, and human resources applications.
Answer: FALSE
Page Ref: 229-232
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
32) The primary purpose of an ERP system is integration.
Answer: TRUE
Page Ref: 232
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
33) Enterprise application integration is a suite of applications, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
Answer: FALSE
Page Ref: 234
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
34) Converting to an ERP system is not nearly as disruptive as converting to an EAI system.
Answer: FALSE
Page Ref: 235
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
35) An ERP solution consists of application programs, databases, and business process procedures, but does not contain training and consulting.
Answer: FALSE
Page Ref: 235
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
36) Choosing an ERP solution that has applications that function close to the organization’s requirements is critical to its successful implementation.
Answer: TRUE
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
37) An ERP solution includes a database design as well as initial configuration data.
Answer: TRUE
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
38) A trigger is a computer program stored in a database that is used to enforce business rules.
Answer: FALSE
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
39) Triggers and stored procedures are not components of an ERP solution.
Answer: FALSE
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
40) The inherent processes that are defined in an ERP solution are also known as process blueprints.
Answer: TRUE
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
41) ERP vendors sometimes train the organization’s employees, called Super Users, to become in-house
trainers in training sessions called train the trainer.
Answer: TRUE
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
42) Industry-specific solutions contain program and database configuration files, but not the process blueprints that apply to ERP implementations in specific industries.
Answer: FALSE
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
43) Epicor and Microsoft Dynamics are the top two ERP vendors.
Answer: FALSE
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
44) In enterprise systems, a single department manager is in charge.
Answer: FALSE
Page Ref: 241
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
45) Gap identification is a major task when implementing enterprise systems.
Answer: TRUE
Page Ref: 241
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
46) Transitioning to a new enterprise system requires careful planning and substantial training.
Answer: TRUE
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
47) Service-oriented architecture is a software design philosophy in which activities are organized into modules of functionality that are requested and delivered over the Internet using process-oriented architecture standards.
Answer: FALSE
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
48) A service provider creates a service description and publishes it using a standardized language called HyperText Markup Language (HTML).
Answer: FALSE
Page Ref: 243
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
49) SAP and Oracle ERP were developed after the Internet and SOA standards were developed.
Answer: FALSE
Page Ref: 243
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
50) The number of enterprise IS solutions moving to the cloud is expected to increase because of the exceedingly low processing costs.
Answer: TRUE
Page Ref: 244
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 8
7.2 Multiple Choice Questions
1) ________ are formally defined, standardized processes that involve day-to-day operations.
A) Dynamic processes
B) Unstructured processes
C) Structured processes
D) Kinetic processes
Answer: C
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
2) Which of the following is an example of a structured process?
A) deciding on the location of a new store
B) solving the problem of excessive product returns
C) purchasing the right amount of raw materials
D) using social media to create buzz about a new product
Answer: C
Page Ref: 217
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
3) ________ are flexible, informal, and adaptive processes that normally involve strategic and less specific managerial decisions and activities.
A) Operational processes
B) Dynamic processes
C) Inherent processes
D) Structured processes
Answer: B
Page Ref: 217
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
4) Which of the following is an example of a dynamic process?
A) Samsung accepts a return of a defective television from its dealer.
B) Starbucks places an order for coffee beans from its local supplier.
C) Amazon.com hires customer service respresentatives to help customers with their online orders.
D) Nike uses Facebook and Twitter to generate buzz about its new line of running shoes.
Answer: D
Page Ref: 217
AACSB: Analytic Skills
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
5) Which of the following is a characteristic of dynamic processes?
A) They are adaptive processes that change structure rapidly and readily.
B) They are usually formally defined and documented.
C) They support operational and managerial decisions and activities.
D) They are standardized processes.
Answer: A
Page Ref: 217
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
6) Which of the following business processes is related to sales and marketing?
A) lead tracking
B) order management
C) customer support
D) accounts receivable
Answer: A
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
7) Which of the following business processes is related to operations?
A) account tracking
B) sales forecasting
C) finished-goods inventory management
D) treasury management
Answer: C
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
8) Which of the following business processes is related to manufacturing?
A) order entry and tracking
B) finished-goods inventory management
C) product and brand management
D) planning and scheduling
Answer: D
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
9) Which of the following business processes is related to customer service?
A) assessment
B) account tracking
C) sales forecasting
D) accounts payable
Answer: B
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
10) Which of the following business processes is related to human resources?
A) lead tracking
B) customer support
C) assessment
D) order management
Answer: C
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
11) Which of the following information systems minimizes data duplication among departments?
A) interenterprise information systems
B) departmental information systems
C) personal information systems
D) enterprise information systems
Answer: D
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
12) Which of the following statements is true regarding departmental information systems?
A) They are easy to change.
B) They minimize data duplication among departments.
C) They can be operated without training.
D) They support 10 to 100 users.
Answer: D
Page Ref: 218
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
13) ________ processes span an organization and support activities in multiple departments.
A) Structured enterprise
B) Structured interenterprise
C) Structured strategic
D) Structured reactive
Answer: A
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
14) Which of the following statements about enterprise information systems is true?
A) Their procedures are not documented, but are understood within the group.
B) They do not require users to have any formal training.
C) They are very difficult to change.
D) They support 10 to 100 users.
Answer: C
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
15) The information system that a restaurant uses to order supplies and ingredients from its suppliers is an example of a(n) ________.
A) enterprise information system
B) personal information system
C) interenterprise information system
D) departmental information system
Answer: C
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
16) Which of the following statements about a structured interenterprise information system is true?
A) Its procedures are formalized and the problem solutions affect multiple organizations.
B) It is flexible and easily adaptable to organizational changes.
C) It minimizes data duplication among departments.
D) It does not require users to have any formal training.
Answer: A
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
17) ________ is an example of an interenterprise information system.
A) CRM
B) SCM
C) ERP
D) EAI
Answer: B
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
18) The two dimensions of process quality are ________.
A) efficiency and effectiveness
B) performance and reliability
C) conformance and durability
D) perception and serviceability
Answer: A
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
19) ________ is a measure of the ratio of process outputs to inputs.
A) Process effectiveness
B) Process efficiency
C) Process conformance
D) Process reliability
Answer: B
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
20) Process ________ is a measure of how well a process achieves organizational strategy.
A) efficiency
B) conformance
C) effectiveness
D) reliability
Answer: C
Page Ref: 220
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
21) Information systems improve process quality by ________.
A) duplicating data
B) entirely replacing human activity
C) changing the work culture
D) controlling process flow
Answer: D
Page Ref: 221
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
22) Which of the following conditions exists when data are isolated in separated information systems?
A) information overload
B) encapsulation
C) information silo
D) data segregation
Answer: C
Page Ref: 222
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
23) Information silos are also referred to as ________.
A) blind spots
B) islands of automation
C) errors of omission
D) bottlenecks
Answer: B
Page Ref: 222
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
24) Information silos are not a problem until they begin to ________.
A) rely on service-oriented architecture
B) integrate data
C) revise business processes
D) use and store data about the same entities
Answer: D
Page Ref: 223
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
25) ________ is the activity of altering and designing business processes to take advantage of new information systems.
A) Business process modeling
B) Business process reengineering
C) Business process outsourcing
D) Enterprise resource planning
Answer: B
Page Ref: 227
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 4
26) ________ are predesigned procedures for using software products.
A) Inherent processes
B) Triggers
C) Modules
D) Service descriptions
Answer: A
Page Ref: 228
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 4
27) ________ is a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service.
A) Business process reengineering
B) Customer relationship management
C) Enterprise resource planning
D) Customer lifecycle management
Answer: B
Page Ref: 228
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
28) In which phase of the customer life cycle are messages sent to the target market to attract customer prospects?
A) relationship management
B) loss/churn
C) marketing
D) customer acquisition
Answer: C
Page Ref: 228
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
29) Which phase of the customer life cycle focuses on increasing the value of existing customers by selling them more product?
A) marketing
B) customer acquisition
C) relationship management
D) loss/churn
Answer: C
Page Ref: 228-229
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
30) In which phase of the customer life cycle do processes categorize customers according to value and attempt to win back high-value customers?
A) loss/churn
B) customer acquisition
C) relationship management
D) marketing
Answer: A
Page Ref: 229
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
31) ________ is a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.
A) Enterprise resource planning
B) Customer relationship management
C) Enterprise application integration
D) Business process reengineering
Answer: A
Page Ref: 229
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
32) The primary purpose of an ERP system is ________.
A) customization
B) duplication
C) integration
D) customer acquisition
Answer: C
Page Ref: 232
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
33) Enterprise application integration is ________.
A) a suite of software applications that links existing systems by providing layers of software that connect applications together
B) a strategy that uses business process management to radically enhance the customer service experience from any customer touchpoint
C) a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform
D) a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service
Answer: A
Page Ref: 234
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
34) Which of the following statements is true of enterprise application integration?
A) It leads to data duplication because each application has its own database.
B) It connects system “islands” via a new layer of software.
C) It leverages existing systems, and enhances the capabilities of functional applications.
D) It prevents existing applications from communicating and sharing data.
Answer: B
Page Ref: 234
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
35) The major benefit of enterprise application integration is that it ________.
A) minimizes the requirement for formalized procedures
B) acts as a cost effective alternative to ERP, with greater capabilities
C) utilizes a centralized database
D) enables organizations to use existing applications
Answer: D
Page Ref: 235
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
36) An ERP solution does not include ________.
A) a database design
B) a company’s operational data
C) initial configuration data
D) stored procedures
Answer: B
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
37) A(n) ________ is a computer program stored within a database that runs to keep the database consistent when certain conditions arise.
A) stored procedure
B) index
C) trigger
D) transaction
Answer: C
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
38) A stored procedure is a ________.
A) program stored in a database that keeps the database consistent when certain conditions arise
B) history of actions executed by a database management system
C) computer program stored in a database that is used to enforce business rules
D) data structure that improves the speed of data retrieval operations in a database
Answer: C
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
39) The inherent processes defined in an ERP solution are known as ________.
A) database transactions
B) stored procedures
C) transaction logs
D) process blueprints
Answer: D
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
40) ERP vendors train an organization’s employees, called Super Users, to become in-house ERP trainers, in training sessions called ________.
A) train the trainer
B) top-down training
C) on-the-job training
D) vestibule training
Answer: A
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
41) ERP training falls into two broad categories, one of which is training on how to use the ERP application software. Which of the following activities is a part of this category?
A) obtaining top-level management support
B) steps for using the ERP applications to accomplish the activities in processes
C) dealing with employee resistance to the new system
D) preparing the organization for change
Answer: B
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
42) To reduce the substantial work that needs to be done to customize an ERP application to a particular customer, ERP vendors provide ________.
A) service descriptions
B) industry-specific solutions
C) inherent processes
D) DIY modules
Answer: B
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
43) Who are the top two ERP vendors?
A) Epicor and Oracle
B) Oracle and SAP
C) Microsoft Dynamics and Infor
D) Microsoft Dynamics and SAP
Answer: B
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
44) The four major ERP products of ________ are AX, Nav, GP, and Solomon.
A) Oracle
B) SAP
C) Microsoft Dynamics
D) Epicor
Answer: C
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
45) ERP vendor Infor acquired which of the following ERP products?
A) Solomon
B) GP
C) Epicore 9
D) Baan
Answer: D
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
46) Which ERP vendor acquired PeopleSoft and Siebel?
A) Oracle
B) Infor
C) Epicor
D) SAP
Answer: A
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
47) When implementing new enterprise systems, usually the only solution for resolving process issues and providing enterprise process management is ________.
A) developing committees and steering groups
B) reinforcing employees’ sense of self-efficacy
C) establishing clear and absolute contractual guidelines
D) communicating the need for change to the employees
Answer: A
Page Ref: 241
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
48) ________ is a major task when implementing enterprise systems.
A) Virtualization
B) Encapsulation
C) Gap identification
D) Data duplication
Answer: C
Page Ref: 241
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
49) Which of the following is an effective technique to overcome employee resistance when implementing
new enterprise systems?
A) giving employees ultimatums and deadlines
B) paying employees straight out for transitioning to the new system
C) coercing employees to learn the new system
D) training employees on the successful use of the new system
Answer: D
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
50) ________ refers to a person’s belief that he or she can be successful at his or her job.
A) Self-appraisal
B) Self-actualization
C) Self-efficacy
D) Self-aggrandizement
Answer: C
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
51) Which of the following is a design philosophy in which activities are organized into modules of functionality that are requested and delivered over the Internet using standards?
A) business process modeling notation
B) service-oriented architecture
C) enterprise application integration
D) cloud computing
Answer: B
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
52) In SOA terminology, what does it mean if the production of a service is said to be encapsulated?
A) The methodology and location of the service is private.
B) The users of the service need to know how and where the service is performed.
C) The service description is documented in a short or concise form.
D) The description of how to use the service is published using a standardized language.
Answer: A
Page Ref: 243
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
53) A(n) ________ is an encapsulated software service provided over the Internet using standard protocols.
A) ISP
B) Web browser
C) Web service
D) Web server software
Answer: C
Page Ref: 243
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
54) A service provider creates a service description, which documents how to use a service, and publishes that description using a standardized language called ________.
A) SGML
B) XML
C) HTML
D) WSDL
Answer: D
Page Ref: 243
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
7.3 Essay Questions
1) Define structured processes and list their characteristics.
Answer: Structured processes are formally defined, standardized processes that involve day-to-day operations: accepting a return, placing an order, purchasing raw materials, and so forth.
Characteristics:
– Support operational and structured managerial decisions and activities
– Standardized
– Usually formally defined and documented
– Exceptions rare and not (well) tolerated
– Process structure changes slowly and with organizational agony
Page Ref: 217
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
2) Define dynamic processes and list their characteristics.
Answer: Dynamic processes are flexible, informal, and adaptive processes that normally involve strategic and less specific managerial decisions and activities. Deciding whether to open a new store location or how best to solve the problem of excessive product returns are examples, as is using Twitter to generate buzz about next season’s product line.
Characteristics:
– Support strategic and less-structured managerial decisions and activities
– Less specific, fluid
– Usually informal
– Exceptions frequent and expected
– Adaptive processes that change structure rapidly and readily
Page Ref: 217
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
3) Define departmental processes, enterprise processes, and interenterprise processes.
Answer: A structured departmental process is a structured process that exists to enable departmental employees to fulfill the charter, purpose, and goals of a particular organizational unit. Structured enterprise processes are structured processes that span an organization and support activities in multiple departments. Structured interenterprise processes are structured processes that span two or more independent organizations.
Page Ref: 217-219
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
4) Define enterprise information systems and describe its characteristics.
Answer: Enterprise information systems are information systems that span an organization and support activities in multiple departments. They typically have hundreds to thousands of users. Procedures are formalized and extensively documented; users undergo formal procedure training. The solutions to problems in an enterprise system usually involve more than one department. Because enterprise systems span many departments and involve potentially thousands of users, they are very difficult to change.
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
5) Describe structured interenterprise information systems.
Answer: Structured interenterprise information systems are information systems that support interenterprise processes. Such systems typically involve thousands of users, and solutions to problems require cooperation among different, usually independently owned, organizations. Problems are resolved by meeting, by contract, and sometimes by litigation. Data are often duplicated between organizations, but such duplication is carefully managed. Because of their wide span, complexity, and use by multiple companies, such systems can be exceedingly difficult to change. Supply chain management is a classic example of an interenterprise information system.
Page Ref: 219
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 1
6) What are the two dimensions of process quality? How can organizations improve process quality? How do information systems improve process quality?
Answer: The two dimensions of process quality are efficiency and effectiveness. Process efficiency is a measure of the ratio of process outputs to inputs. Process effectiveness is a measure of how well a process achieves organizational strategy.
Organizations can improve the quality (efficiency and/or effectiveness) of a process in one of three ways:
– Change the process structure.
– Change the process resources.
– Change both.
Information systems can be used to improve process quality by:
– Performing an activity
– Augmenting a human who is performing an activity
– Controlling process flow
Page Ref: 220-221
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 2
7) List the problems associated with information silos.
Answer: The problems associated with information silos include:
– Data duplication and data inconsistency
– Disjointed processes
– Limited information and lack of integrated information
– Organizational inefficiency
– Increased expense
Page Ref: 224
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 3
8) What is the fundamental problem of information silos? How can this problem be remedied?
Answer: The fundamental problem of information silos is that data are duplicated in isolated systems. The most obvious fix is to eliminate that duplicated data by storing a single copy of data in a shared database and revising business processes (and applications) to use that database. Another remedy is to allow the duplication, but to manage it to avoid problems.
Page Ref: 225
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Discuss the role of information systems in supporting business processes
Chapter LO: 1
9) What are the four phases of the customer life cycle? Briefly describe each phase.
Answer: The four phases of the customer life cycle include: marketing, customer acquisition, relationship management, and loss/churn. Marketing sends messages to the target market to attract customer prospects. When prospects order, they become customers who need to be supported. Additionally, relationship management processes increase the value of existing customers by selling them more product. Inevitably, over time the organization loses customers. When this occurs, win-back processes categorize customers according to value and attempt to win back high-value customers.
Page Ref: 228-229
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the functions of customer relationship management (CRM) systems
Chapter LO: 4
10) Define ERP. What is the primary purpose of an ERP system?
Answer: Enterprise resource planning (ERP) is a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform. An ERP system is an information system based on ERP technology. The primary purpose of an ERP system is integration; an ERP system allows the left hand of the organization to know what the right hand is doing. This integration allows real-time updates globally, whenever and wherever a transaction takes place. Critical business decisions can then be made on a timely basis using the latest data.
Page Ref: 229-232
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
11) List the functions of enterprise application integration (EAI).
Answer: The functions of EAI are as follows:
– It connects system “islands” via a new layer of software/system.
– It enables existing applications to communicate and share data.
– It provides integrated information.
– It leverages existing systems-leaving functional applications as is, but providing an integration layer over the top.
– It enables a gradual move to ERP.
Page Ref: 234
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 4
12) Explain the nature of the database component of an ERP solution.
Answer: An ERP solution includes a database design as well as initial configuration data. It does not, of course, contain the company’s operational data. During development, the team must enter the initial values for that data as part of the development effort. SAP, the leading vendor of ERP solutions, provides ERP databases that contain over 15,000 tables. The design includes the metadata for those tables, as well as their relationships to each other, and rules and constraints about how the data in some tables must relate to data in other tables. The ERP solution also contains tables filled with initial configuration data.
Large organizational databases contain two types of program code. The first, called a trigger, is a computer program stored within the database that runs to keep the database consistent when certain conditions arise. The second, called a stored procedure, is a computer program stored in the database that is used to enforce business rules. An example of such a rule would be never to sell certain items at a discount. Triggers and stored procedures are also part of the ERP solution. Much of this program code needs to be configured during the ERP implementation as well.
Page Ref: 236
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
13) Describe the two categories of ERP training.
Answer: ERP vendors have developed training curricula and classes because of the complexity and difficulty of implementing and using ERP solutions. ERP training falls into two broad categories. The first category is training about how to implement the ERP solution. This training includes topics such as obtaining top-level management support, preparing the organization for change, and dealing with the inevitable resistance that develops when people are asked to perform work in new ways. The second category is training on how to use the ERP application software.
Page Ref: 240
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 5
14) What are the four challenges of implementing new enterprise systems?
Answer: The four primary challenges or factors affecting implementation of enterprise systems:
– Collaborative management
– Requirements gaps
– Transition problems
– Employee resistance
Page Ref: 241
AACSB: Use of Information Technology
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
15) How should organizations manage employee resistance to change, in the context of new enterprise systems?
Answer: First, senior-level management needs to communicate the need for the change to the organization, and reiterate this, as necessary, throughout the transition process. Second, employees fear change because it threatens self-efficacy, which is a person’s belief that he or she can be successful at his or her job. To enhance confidence, employees need to be trained and coached on the successful use of the new system. Word-of-mouth is a very powerful factor, and in some cases, key users are trained ahead of time to create positive buzz about the new system. Video demonstrations of employees successfully using the new system are also effective. Third, employees may need to be given extra inducement to change to the new system. Implementing new enterprise systems can solve many problems and bring great efficiency and cost savings to an organization, but it is not for the faint of heart.
Page Ref: 242
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 6
16) What is SOA? Define encapsulation, Web service, and service description.
Answer: Service-oriented architecture (SOA) is a software design philosophy in which activities are organized into modules of functionality called Web services that are requested and delivered over the Internet using SOA standards.
The production of the service is encapsulated. This means that the methodology and location of the service is private. Users of the service do not know how or where the service is performed, and they need not know.
A Web service is an encapsulated software service provided over the Internet using standard protocols.
A service provider creates a service description, which documents how to use the service, and publishes that description using a standardized language called Web Service Description Language (WSDL).
Page Ref: 242-243
AACSB: Use of Information Technology
Difficulty: Moderate
Course LO: Describe the uses of enterprise systems and enterprise resource planning
Chapter LO: 7
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