Chapter 7 Enhancing Business Processes Using Enterprise Information Systems PDF

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Information Systems Today, 8e (Valacich) Chapter 7 Enhancing Business Processes Using Enterprise Information Systems 1) Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them? A) supply chain management B) risk management C) technology management D) communication management E) systems management Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 2) Which of the following is a core business process? A) time-to-purchase B) make-to-stock C) plan-to-produce D) account-to-report E) hire-to-retire Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 3) Buying a book at Amazon.com illustrates which of the following core business processes? A) time-to-purchase B) order-to-cash C) plan-to-produce D) account-to-report E) hire-to-retire Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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4) Whenever an order is placed with online retailers, the retailers put together the order, ship it, and charge the payment to the customer's credit card. This process of selling a product or service is known as the ________ process. A) make-to-order B) time-to-market C) order-to-cash D) procure-to-pay E) make-to-stock Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 5) For most businesses, the ________ process entails several subprocesses including creating a customer record, checking the customer's creditworthiness, creating an order, checking and allocating stock, and shipping. A) order-to-cash B) make-to-order C) procure-to-pay D) make-to-stock E) plan-to-produce Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 6) An online retailer has finished creating a customer record. Identify the retailer's next step in an order-to-cash process. A) create order B) allocate stock C) pick, pack, and ship D) prepare and send invoice E) check customer's creditworthiness Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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7) In the order-to-cash process, checking credit is followed by ________. A) collecting payment B) creating an order C) allocating stock D) picking, packing, and shipping E) preparing and sending the invoice Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 8) In an order-to-cash process, identify the next step that the online retailer takes after creating an order for a customer. A) collect payment B) create customer record C) check and allocate stock D) pick, pack, and ship E) prepare and send invoice Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 9) An effective ________ process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications. A) order-to-cash B) make-to-order C) procure-to-pay D) make-to-stock E) plan-to-produce Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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10) Subprocesses of the procure-to-pay process include ________. A) collecting the payment B) creating customer records C) price and terms negotiations D) creating customer satisfaction E) speeding up the collection process Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 11) The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process. A) make-to-stock B) make-to-order C) order-to-cash D) plan-to-produce E) procure-to-pay Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 12) Which of the following is the first step in the procure-to-pay process? A) negotiate price and terms B) issue purchase order C) receive goods D) receive invoice E) settle payment Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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13) An effective ________ process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders. A) procure-to-pay B) procure-to-buy C) find-to-buy D) procure-to-sell E) find-to-sell Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 14) In the procure-to-pay process, the negotiation of price and terms is followed by ________. A) settling the payment B) creating the customer record C) issuing the purchase order D) receiving the goods E) receiving the invoice Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 15) ________ immediately after the purchase order is issued in the procure-to-pay process. A) Payment is settled B) Price and terms are negotiated C) Credit is checked D) Goods are received E) Invoices are received Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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16) Receiving the goods is followed by ________ in the procure-to-pay process. A) settling the payment B) negotiating the price and terms C) issuing the purchase order D) creating the order E) receiving the invoice Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 17) In the ________ process, goods are produced based on forecasts and are stored in a warehouse, and sales orders are then fulfilled from inventory. A) configure-to-stock B) make-to-stock C) make-to-order D) engineer-to-order E) assemble-to-order Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 18) The organization waits for an order, allowing the organization to initiate a ________ sequence to move the order through the production process. A) pushing B) rotating C) working D) pulling E) propelling Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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19) In core business processes, which of the following uses a push-based approach? A) order-to-cash B) procure-to-pay C) production-to-order D) make-to-stock E) make-to-order Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 20) In the ________ process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. A) order-to-cash B) procure-to-pay C) make-to-stock D) acquire-to-dispose E) make-to-order Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 21) Which of the following uses a pull-based approach? A) make-to-order B) make-to-stock C) plan-to-produce D) account-to-report E) acquire-to-dispose Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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22) Which of the following goods are typically produced under a make-to-order approach? A) expensive high-volume goods B) cheap high-volume goods C) very expensive low-volume goods D) mass-produced goods E) goods from external vendors Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 23) Which of the following goods are produced using the make-to-order approach? A) commercial aircrafts B) air conditioners C) home appliances D) televisions E) refrigerators Answer: A AACSB: Analytical thinking Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Application 24) ________ activities are performed by the functional areas that process inputs and produce outputs. A) Base B) Core C) Support D) Extended E) Focus Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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25) Which of the following is a core activity according to the value chain model? A) human resource activities B) technology development C) operations and manufacturing D) administrative activities E) infrastructure activities Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 26) Inbound logistics involves business activities associated with ________. A) distributing end products within the order-to-cash business process B) creating marketing literature C) communicating with potential and existing customers D) receiving and stocking raw materials, parts, and products E) order processing Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 27) Assembly processes are ________ activities. A) outbound logistics B) marketing and sale C) customer sales D) administrative and marketing E) operations and manufacturing Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 28) Outbound logistics activities focus on the ________. A) processing of orders B) distribution of end products within the order-to-cash business process C) pricing of goods and services D) transformation of raw materials into end products E) receiving and stocking of raw materials, parts, and products Answer: B AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 9 Copyright © 2018 Pearson Education, Inc.

29) ________ focuses on the distribution of end products within the order-to-cash business process. A) Procure-and-pay process B) Sales and marketing activity C) Make-to-stock process D) Inbound logistics E) Outbound logistics Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 30) Administrative activities focus on the ________. A) design and development of applications that support the primary business activities B) hardware and software that must be implemented to support the applications that the primary activities use C) business activities associated with employee management D) processes and decision making to orchestrate the day-to-day operations of an organization E) purchasing of goods and services that are required as inputs for the primary activities Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 31) The hardware and software that must be implemented to support the applications that the primary activities use are a part of the ________ activities. A) human resources B) technology development C) procurement D) inbound logistics E) infrastructure Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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32) Human resource activities ________. A) are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them B) include the design and development of applications that support the primary business activities C) include the purchasing of goods and services that are required as inputs to the primary activities D) integrate the internal applications with suppliers, business partners, and customers E) streamline the organization's internal value chain Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 33) ________ activities encompass all business activities associated with employee management, such as hiring, interview scheduling, payroll, and benefits management. A) Human resource B) Technology development C) Procurement D) Account E) Architectural Answer: A AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 34) ________ is a support activity. A) Outbound logistics B) Operations and manufacturing C) Technology development D) Customer service E) Marketing and sales Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept

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35) Designing and developing applications that support the primary business activities are a part of the ________ activities. A) operations and manufacturing B) outbound logistics C) technology development D) procurement E) inbound logistics Answer: C AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 36) A(n) ________ information flow consists of information that is received from another organization. A) stand-alone B) legacy C) packaged D) upstream E) downstream Answer: D AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 37) A ________ information flow relates to the information that is produced by a company and sent along to another organization. A) stand-alone B) legacy C) packaged D) custom E) downstream Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 38) One of the traditional functional areas that companies are organized around is information systems management. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 12 Copyright © 2018 Pearson Education, Inc.

39) The core business processes common to most business organizations are order-to-cash, procure-to-pay, and make-to-stock. Answer: TRUE AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 40) 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. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 41) In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. Answer: FALSE AACSB: Information technology Difficulty: Easy Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 42) Briefly explain the order-to-cash process. Answer: For business organizations, selling products or services are the main way of generating revenue. Many online retailers provide real-time stock information; however, in case an item is out of stock after placing an order, the customer will be notified. If the item is in stock, the customer's order will be put together and shipped, and his credit card will be charged. Together, the processes associated with selling a product or service are referred to as the orderto-cash process. This process can be broken down into multiple subprocesses. For most businesses, the order-to-cash process entails subprocesses such as creating a customer record; checking the customer's creditworthiness; creating an order; checking and allocating stock; picking, packing, and shipping; invoicing; and collecting the payment. Depending on the nature of the transaction, the individual subprocesses and the time in which these are completed can differ considerably. An ineffective order-to-cash process can have various negative effects for organizations; for example, the manual input of order information often causes errors, as do suboptimal picking and shipping processes. Together, such errors can lead to a high rate of disputes that have to be resolved, ineffective collection processes, and, ultimately, defecting customers. In contrast, an effective order-to-cash process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications. AACSB: Information technology Difficulty: Moderate Learning Obj.: 7.1: Explain core business processes that are common in organizations. Classification: Concept 13 Copyright © 2018 Pearson Education, Inc.

43) The two most likely benefits realized from utilizing enterprise systems are improvements in ________. A) improved customer interaction and improved supplier integration B) reduced inventory and reduced operating expenses C) reduced lead times for manufacturing and improved customer interaction D) availability of information and increased interaction throughout the organization E) improved compliance with standards and improved supplier integration Answer: D AACSB: Reflective thinking Difficulty: Difficult Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved. Classification: Concept 44) A(n) ________ 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 one large database. A) legacy system B) management information system C) decision support system D) distributed software system E) enterprise system Answer: E AACSB: Information technology Difficulty: Easy Learning Obj.: 7.2: Describe what enterprise systems are and how they have evolved. Classification: Concept 45) An internally focused system helps an organization coordinate with its ________. A) suppliers B) business partners C) producers D) departments E) customers Answer: D AACSB: Informa...