The Definition of Enterprise Systems

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Chapter 8

1.

1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business. 2) Enterprise systems are typically built around one or two major business workflows. 3) Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers. 4) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. 5) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs. 6) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain. 7) The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain. 8) Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. 9) In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes. 10) Intranets can be used to integrate information from isolated business processes within the firm to help them manage their internal supply chains. 11) In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain. 12) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products. 13) Dell Inc. is an example of a push-based model. 14) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget. 15) All CRM packages contain modules for PRM and ERM.

Answer: TRUE

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16) Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com. 17) Cross-selling markets complementary products to customers. 18) CRM software can help organizations identify high-value customers for preferential treatments. 19) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. 20) Enterprise systems require fundamental changes in the way the business operates. 21) From your reading of the Severstal case study, the firm implemented new information systems in order to achieve which of the main six business objectives? A) customer and supplier intimacy B) survival C) improved decision making D) operational excellence 22) Which of the following is not an example of next-generation enterprise applications? A) Open-source solutions B) On-demand solutions C) Solutions incorporating SCM D) Solutions incorporating SOA 23) A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes: A) process management software. B) ERP systems. C) groupware. D) application software. 24) Enterprise software is built around thousands of predefined business processes that reflect: A) the firm's organization. B) industry goals. C) best practices. D) cutting edge workflow analyses. 25) Which of the following is not true about enterprise systems? A) Enterprise systems help firms respond rapidly to customer requests for information or products. B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. C) Enterprise software is expressly built to allow companies to mimic their unique business practices. D) Enterprise software includes analytical tools to evaluate overall organizational performance.

Answer: TRUE Answer: TRUE Answer: TRUE Answer: TRUE

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Answer: FALSE Answer: FALSE

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