BUS 311 CHAPTER 7 – Flashcards

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Information systems management is one of the functional areas that companies are organized around
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FALSE
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Traditionally, companies are organized around four distinct functional areas. Which of the following is one of those areas?
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Supply cain management
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Core business process?
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make-to-stock
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The core business process common to most business organizations are order-to-cash, procure-to-pay and make-to-stock
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TRUE
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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.
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FALSE
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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
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order-to-cash
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creating a customer record, checking the customer's creditworthiness, creating an order, checking and allocating stock and shipping
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order-to-cash
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process associated with buying good from external vendors
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procure-to-pay process
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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
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FALSE
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after online retailer has finished creating a customer record what would be the next step for the retailer in an order-to-cash process
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check customer's creditworthiness
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In the order-to-cash process, once "checking credit" is done, it is followed by
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creating an order
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The make-to-order process uses the pull-based approach
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TRUE
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According to the order-to-cash process, what would the next step be for an online retailer after creating an order for a customer
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allocate stock
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The several processes associated with the acquiring of goods from external vendors are collectively referred to as the
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procure-to-pay
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first step of the procure-to-pay process
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negotiate price and terms
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in the procure-to-pay process, the negotiation of price and terms is followed by
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issuing the purchase order
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step immediately after the purchase order is issued in the procure-to-pay process
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Goods are received
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Receiving the goods is followed by______ in the procure-to-pay process
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receiving the invoice
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In the _____ process, goods are produced based on forecasts and are stored in a warehouse and sales orders are then fulfilled from inventory
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make-to-stock
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In the context of core business processes, what uses a push-based approach
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make-to-stock
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raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received
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make-to-order
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uses a pull-based approach
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make-to-order
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typically the first step in the make-to-stock process
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procuring inputs
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goods are typically produced under a make-to-order approach
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very expensive low-volume goods
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goods are produced using the make-to-order approach
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commercial aircraft
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Performed by the functional areas that process inputs and produce outputs
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Core activities
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Core activity
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operations and manufacturing
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Inbound logistics involves business activities associated with
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receiving and stocking raw materials, parts, and products
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Assembly processes are
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operations and manufacturing activities
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Outbound logistics activities focus on the
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distribution of end products within the order-to-cash business process
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Administrative activities focus on the
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processes and decision making to orchestrate the day-to-day operations of an organization
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The hardware and software that mush be implemented to support the application that the primary activities use are a part of the
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infrastructure activities
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Human resource activities
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are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them
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Which of the following is a support activity
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technology development activities
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Designing and developing applications that support the primary business activities are a part of the
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technology development activities
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Information flow consists of information that is received from another organization.
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upstream
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Information flow relates to the information that is produced by a company and sent along to another organization
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downstream
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System that focus on the specific needs of individual departments and are not designed to communicate with other systems in the organization
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stand-alone applications
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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
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FALSE
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Legacy systems can prove problematic when information from multiple departmental systems is requried to support business processes and decision making.
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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
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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
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enterprise system
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Rather than storing information in separate places throguhtout the organization, enterprise systems provide a central repository common to all corporate users
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TRUE
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Internal focus systems coordinate business processes with customers, suppliers, and business partners.
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FALSE
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An internally focused system helps an organization coordinate with
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its departments
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Coordinates business processes with customers, suppliers, and business partners of an orgazanition
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externally focused system
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A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS)
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TRUE
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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
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TRUE
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A system that communicates across organizational boundaries is sometimes referred to as
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Interorganizational system
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Applications written by third-party vendors that are used by many different users and organizations
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packaged software
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Applications that are designed and developed exclusively for a specific organization are known as
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custom software
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Customers can purchase ________ software off the shelf to help them with their personal documents and communications
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packaged
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Packaged software is
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highly useful for standardized, repetitive tasks
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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
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Packaged software
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A software is best suited for tasks that are unique to a particular businesses
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custom software
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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
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True statement for packaged and custom software.
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The features and modules that an enterprise system comes with out of the box are
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vanilla version
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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
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Business process management
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In the 1990s, business process management was known as
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Business process reengineering
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According to business process management, what would be management's next step after developing a vision for the organization
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They should identify the critical processes that are to be redesigned.
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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?
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designing and implementing a prototype of the new process
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How is business process management similar to quality improvement approaches such as total quality management?
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They are intended to be cross-funtional approaches to improve an organization
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Applications that integrate business activities across departmental boundaries are often referred to as
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Enterprise resource planning systems
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It makes the process of sharing information between business activities easier
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Enterprise resource planning (ERP)
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Supports the important internal activities of the organization for producing their products and services
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EPR core components
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financial management, operations management, human resource management, and other important internal activities require the support of
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ERP core components
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Supports the primary external activities of the organization for dealing with suppliers and customers
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ERP extended components
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Specifically, ERP extended components focus primarily on ________.
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customer relationship management and supply chain management
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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.
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TRUE
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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.
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TRUE
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there are two major categories of enterprise resource planning (ERP) components- ERP core components and ERP extended components
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TRUE
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Enterprise resource planning core components support the primary external activities of the organization for dealing with suppliers and customers
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FALSE
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Enterprise resource planning extended components support internal operations such as financial management, operations management, and human resource management
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FALSE
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The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company
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TRUE
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Using service-oriented architecture, business processes are broken down into individual components that are designed to achieve the desired results for the services consumer
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TRUE
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In service-oriented architecture
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business processes are broken down into individual components or services
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To achieve benefits, a service should have interoperability which means that the service should be usable in many different applications
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FALSE
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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;
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Reusability interoperability componentization
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Enterprise systems implementations should include personnel from different departments
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Formula for success of an enterprise system
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