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BUS 311 CHAPTER 7

Information systems management is one of the functional areas that companies are organized around
FALSE
Traditionally, companies are organized around four distinct functional areas. Which of the following is one of those areas?
Supply cain management
Core business process?
make-to-stock
The core business process common to most business organizations are order-to-cash, procure-to-pay and make-to-stock
TRUE
the order-to-cash process entails subprocesses such as price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice.
FALSE
Whenever an order is placed with online retailers, the retailers put together the order, ship it, and charge the customer’s credit card. This process of selling a product or service is known as
order-to-cash
creating a customer record, checking the customer’s creditworthiness, creating an order, checking and allocating stock and shipping
order-to-cash
process associated with buying good from external vendors
procure-to-pay process
in the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecast, but actual manufacturing does not start until sales orders are received
FALSE
after online retailer has finished creating a customer record what would be the next step for the retailer in an order-to-cash process
check customer’s creditworthiness
In the order-to-cash process, once “checking credit” is done, it is followed by
creating an order
The make-to-order process uses the pull-based approach
TRUE
According to the order-to-cash process, what would the next step be for an online retailer after creating an order for a customer
allocate stock
The several processes associated with the acquiring of goods from external vendors are collectively referred to as the
procure-to-pay
first step of the procure-to-pay process
negotiate price and terms
in the procure-to-pay process, the negotiation of price and terms is followed by
issuing the purchase order
step immediately after the purchase order is issued in the procure-to-pay process
Goods are received
Receiving the goods is followed by______ in the procure-to-pay process
receiving the invoice
In the _____ process, goods are produced based on forecasts and are stored in a warehouse and sales orders are then fulfilled from inventory
make-to-stock
In the context of core business processes, what uses a push-based approach
make-to-stock
raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received
make-to-order
uses a pull-based approach
make-to-order
typically the first step in the make-to-stock process
procuring inputs
goods are typically produced under a make-to-order approach
very expensive low-volume goods
goods are produced using the make-to-order approach
commercial aircraft
Performed by the functional areas that process inputs and produce outputs
Core activities
Core activity
operations and manufacturing
Inbound logistics involves business activities associated with
receiving and stocking raw materials, parts, and products
Assembly processes are
operations and manufacturing activities
Outbound logistics activities focus on the
distribution of end products within the order-to-cash business process
Administrative activities focus on the
processes and decision making to orchestrate the day-to-day operations of an organization
The hardware and software that mush be implemented to support the application that the primary activities use are a part of the
infrastructure activities
Human resource activities
are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them
Which of the following is a support activity
technology development activities
Designing and developing applications that support the primary business activities are a part of the
technology development activities
Information flow consists of information that is received from another organization.
upstream
Information flow relates to the information that is produced by a company and sent along to another organization
downstream
System that focus on the specific needs of individual departments and are not designed to communicate with other systems in the organization
stand-alone applications
A legacy system is an integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using on large database
FALSE
Legacy systems can prove problematic when information from multiple departmental systems is requried to support business processes and decision making.
Quick Software Solutions has an automated system to track employee absence. It also uses a non-automated system like attendance registers that employees sign everyday. This information is updated to Quick’s database management system on a weekly basis
An integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using one large database
enterprise system
Rather than storing information in separate places throguhtout the organization, enterprise systems provide a central repository common to all corporate users
TRUE
Internal focus systems coordinate business processes with customers, suppliers, and business partners.
FALSE
An internally focused system helps an organization coordinate with
its departments
Coordinates business processes with customers, suppliers, and business partners of an orgazanition
externally focused system
A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS)
TRUE
Customer relationship management applications concentrate on the activities involved in promoting and selling product to the customers as well as providing customer service and nourishing long-term relationshiops
TRUE
A system that communicates across organizational boundaries is sometimes referred to as
Interorganizational system
Applications written by third-party vendors that are used by many different users and organizations
packaged software
Applications that are designed and developed exclusively for a specific organization are known as
custom software
Customers can purchase ________ software off the shelf to help them with their personal documents and communications
packaged
Packaged software is
highly useful for standardized, repetitive tasks
A software cost effective since the vendor that builds the application spreads out the development costs by selling copies to a large number of users
Packaged software
A software is best suited for tasks that are unique to a particular businesses
custom software
The development costs of custom software are much higher than for packaged software because of the time, money, and resources that are required to design and develop them
True statement for packaged and custom software.
The features and modules that an enterprise system comes with out of the box are
vanilla version
A systematic, structural approach to improvement, in which people critically examine, rethink, and redesign business process in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost
Business process management
In the 1990s, business process management was known as
Business process reengineering
According to business process management, what would be management’s next step after developing a vision for the organization
They should identify the critical processes that are to be redesigned.
According to business process management, what is the next step taken by management after identifying the ways in which the information systems can be used?
designing and implementing a prototype of the new process
How is business process management similar to quality improvement approaches such as total quality management?
They are intended to be cross-funtional approaches to improve an organization
Applications that integrate business activities across departmental boundaries are often referred to as
Enterprise resource planning systems
It makes the process of sharing information between business activities easier
Enterprise resource planning (ERP)
Supports the important internal activities of the organization for producing their products and services
EPR core components
financial management, operations management, human resource management, and other important internal activities require the support of
ERP core components
Supports the primary external activities of the organization for dealing with suppliers and customers
ERP extended components
Specifically, ERP extended components focus primarily on ________.
customer relationship management and supply chain management
Enterprise resource planning replaces stand-alone applications by providing various modules based on a common database and similar application interfaces that service the entire enterprise rather than portions of it.
TRUE
Enterprise resource planning control refers to the locus of control over the computing systems and data contained in these systems, as well as decision making authority.
TRUE
there are two major categories of enterprise resource planning (ERP) components- ERP core components and ERP extended components
TRUE
Enterprise resource planning core components support the primary external activities of the organization for dealing with suppliers and customers
FALSE
Enterprise resource planning extended components support internal operations such as financial management, operations management, and human resource management
FALSE
The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company
TRUE
Using service-oriented architecture, business processes are broken down into individual components that are designed to achieve the desired results for the services consumer
TRUE
In service-oriented architecture
business processes are broken down into individual components or services
To achieve benefits, a service should have interoperability which means that the service should be usable in many different applications
FALSE
by breaking down business processes into individual services, organizations can react more swiftly to changing business needs. To achieve these benefits, services have to follow three main principles;
Reusability
interoperability
componentization
Enterprise systems implementations should include personnel from different departments
Formula for success of an enterprise system

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