Chapter 11 Enterprise Applications and Business Process Integration 11-1
1.
Enterprise software allows data to be used by multiple functions and business processes for precise organizational coordination and control.
Answer: True Difficulty: Easy Reference: p. 380
2.
Companies can use state transition diagrams provided by the enterprise software to tailor a particular aspect of the system to the way it does business.
Answer: False Difficulty: Hard Reference: p. 381
3.
Major enterprise software vendors include SAP, Oracle, PeopleSoft, and Baan.
Answer: True Difficulty: Medium Reference: p. 383
4.
Enterprise systems use a client/server architecture and have not yet been redesigned to take advantage of the Web.
Answer: False Difficulty: Medium Reference: p. 383
5.
When doing business worldwide, enterprise-enabled organizations use enterprise systems to emphasize functional boundaries and deemphasize cross-functional coordination.
Answer: False Difficulty: Medium Reference: p. 383
6.
Enterprise systems can improve management reporting and decision making.
Answer: True Difficulty: Easy Reference: p. 384
7.
The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
Answer: False Difficulty: Medium
8.
Supply chains in large manufacturing companies are multitiered.
Reference: p. 386
Answer: True Difficulty: Medium Reference: p. 387
9.
The Supply Chain Council developed a Supply Chain Operations Reference Model as a process reference model for supply chain management for the transportation industry.
Answer: False Difficulty: Medium Reference: p. 386

11-2 Enterprise Application and Business Process Integration Chapter 11
10.
SCOR identifies five major supply chain processes: organize, research, plan, deliver, and return.
Answer: False Difficulty: Medium Reference: p. 386
11.
Logistics accounts for 12 to 14 percent of a typical manufacturer’s cost of goods sold.
Answer: True Difficulty: Medium Reference: p. 387
12.
Supply chain inefficiencies can waste as much as 25 percent of a company’s operating costs.
Answer: True Difficulty: Medium Reference: p. 387
13.
Low inventory acts a buffer for the lack of flexibility in the supply chain.
Difficulty: Medium Reference: p. 387
14.
Ripple 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.
Answer: False
Answer: False Difficulty: Medium Reference: p. 387
15.
Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
Answer: False Difficulty: Hard
16.
A metric is a standard measurement of performance.
Answer: True Difficulty: Easy
17.
Throughput is the total elapsed time to complete a business process.
Reference: p. 388
Reference: p. 389
Answer: False Difficulty: Medium Reference: p. 389
18.
In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes.
Answer: True Difficulty: Easy Reference: p. 389
19.
Intranets can be used to integrate information from isolated business processes within the firm to help them manage their internal supply chains.
Answer: True Difficulty: Easy Reference: p. 390
20.
The Internet provides a standard set of tools that can be used by companies all over the world to coordinate overseas sourcing, transportation, communications, financing, and compliance with customs regulations.
Answer: True Difficulty: Medium Reference: p. 391

Chapter 11 Enterprise Applications and Business Process Integration 11-3
21.
In a push-based model, actual customer orders or purchases trigger events in the supply chain.
Answer: False Difficulty: Medium Reference: p. 391
22.
In a pull-based model, production master schedules are based on forecasts of demand for products.
Answer: False Difficulty: Medium
23.
Dell Computers is an example of a push-based model.
Reference: p. 391
Difficulty: Medium Reference: p. 392
24.
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.
Answer: False
Answer: True Difficulty: Hard Reference: p. 393
25.
Customer relationship management can help organizations identify customers who cost a lot to attract and to keep.
Answer: True Difficulty: Hard
26.
Cross-selling markets complementary products to customers.
Reference: p. 393
Answer: True Difficulty: Easy Reference: p. 395
27.
Major CRM application software vendors include Siebel Systems, Clarify, and
Salesforce.com.
Answer: True Difficulty: Easy Reference: p. 394
28.
Bundling is one kind of cross-selling in which a combination of products is sold as a bundle at a price higher than the total cost of the individual products..
Answer: False Difficulty: Easy Reference: p. 395
29.
Siebel Systems is the market-leading vendor of customer relationship management software.
Answer: True Difficulty: Easy Reference: p. 395
30.
Single-channel customers are known to have a higher lifetime value than multichannel customers.
Answer: False Difficulty: Medium Reference: p. 397

11-4 Enterprise Application and Business Process Integration Chapter 11
31.
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.
Answer: True Difficulty: Medium Reference: p. 398
32.
When building an enterprise system, the benefits are easily quantified at the beginning of the project.
Answer: False Difficulty: Easy Reference: p. 399
33.
SAPs mySAP and Oracle’s e-Business Suite are both examples of software vendors that have developed Web-enabled software for enterprise solutions.
Answer: True Difficulty: Easy Reference: p. 399
34.
` A service such as order-to-cash requires data from enterprise applications and financial systems to be further integrated into an enterprise-wide composite process.
Answer: True Difficulty: Medium
35.
SAP’s version of cross-application services is called XRP.
Answer: False Difficulty: Hard
Reference: p. 401
Reference: p. 401
36.
The costs of enterprise systems are moderate compared to the benefits they achieve, are not noticeable, and often incur political support.
Answer: False Difficulty: Medium Reference: p. 403
37.
One of the challenges associated with enterprise systems is realizing strategic value.
Answer: True Difficulty: Medium Reference: p. 405
38.
Primary advantages of enterprise systems include their ease of implementation and flexibility.
Answer: False Difficulty: Medium Reference: p. 405
39.
Enterprise systems require changes in business processes, organizational structure, and organizational culture.
Answer: True Difficulty: Medium Reference: p. 406
40.
Many firms embracing CRM underestimate the extent to which every facet of the enterprise must be involved and integrated into the customer relationship.
Answer: True Difficulty: Medium Reference: p. 403

Chapter 11 Enterprise Applications and Business Process Integration 11-5
41.
A set 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. enterprise software. c. collaboration software. d. application software.
Answer: b Difficulty: Medium Reference: p. 380
42.
This type of software enables data to be used by multiple functions and business processes for precise organization coordination and control: a. groupware. b. application software. c. collaboration software. d. enterprise software.
Answer: d c. enterprise software. d. groupware software.
Difficulty: Medium Reference: p. 380
43.
This software is built around thousands of predefined business processes : a. process management software b. collaboration software.
Answer: c Difficulty: Medium Reference: p. 381
44.
Process maps or reference models provided by enterprise software vendors are based on business process knowledge and: a. cross-selling. b. best practices. c. metrics. d. push-models.
Answer: b Difficulty: Medium Reference: p. 381

11-6 Enterprise Application and Business Process Integration Chapter 11
45.
The most successful solutions or problem-solving methods for consistently and effectively achieving a business objective best describes: a. business module. b. formal system. c. business process. d. best practices.
Answer: d Difficulty: Medium Reference: p. 381
46.
When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with: a. configuration tables. b. project workbooks. c. data dictionaries. d. state transition diagrams.
Answer: a Difficulty: Medium Reference: p. 381
47.
Nestlé SA, installed a ______________________ enterprise system as a way of standardizing and coordinating its business processes in 500 facilities in 80 countries. a. SAP R/3 b. Oracle c. Baan d. PeopleSoft
Answer: a Difficulty: Hard Reference: p. 384
48.
A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a: a. distribution channel. b. supply chain. c. value chain. d. marketing chain.
Answer: b Difficulty: Medium Reference: p. 385
49.
The Supply Chain Council developed a cross-industry process reference model for supply chain management called: a. SCOR. b. SCCM. c. TCP/IP. d. MRP.
Answer: a Difficulty: Hard Reference: p. 386

Chapter 11 Enterprise Applications and Business Process Integration 11-7
50.
According to SCOR, the source process: a. consists of processes associated with returning products or receiving returned products, including postdelivery customer support. b. consists of processes that provide finished goods and services to meet actual or planned demand, including order management, transportation management, and distribution management. c. consists of processes that transform a product into a finished state to meet planned or actual demand. d. consists of processes that procure goods and services needed to create a specific product or service.
Answer: d Difficulty: Medium Reference: p. 386
51.
Planning and control of all factors that will have an impact on transporting a product or service best defines: a. acquisition. b. research and development. c. logistics. d. procurement.
Answer: c Difficulty: Medium Reference: p. 387
52.
A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes: a. just-in-time. b. stockless inventory. c. ASAP inventory. d. replenishment-only inventory.
Answer: a Difficulty: Medium Reference: p. 387
53.
A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called: a. bullwhip effect. b. ripple effect. c. replenishment effect. d. exponential effect.
Answer: a Difficulty: Medium Reference: p. 387

11-8 Enterprise Application and Business Process Integration Chapter 11
54.
Supply chain software can be classified as: a. supply chain source systems and supply chain recovery systems. b. supply chain make systems and supply chain delivery systems. c. supply chain return systems and supply chain make systems. d. supply chain planning systems and supply chain execution systems.
Answer: d Difficulty: Medium Reference: p. 388
55.
Supply chain planning systems: a. track the physical status of goods. b. identify the transportation mode to use for product delivery. c. track the financial information involving all parties. d. track the status of orders
Answer: b Difficulty: Hard Reference: p. 389
56.
Supply chain execution systems: a. schedule product subassemblies b. help the company determine how much of a specific product to manufacture in a given time period. c. enable the firm to generate demand forecasts for a product. d. develop sourcing and manufacturing plans to determine how much of a specific product to manufacture in a given time period.
Answer: a Difficulty: Hard Reference: p. 389
57.
Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes: a. supply chain demand systems. b. supply chain delivery systems. c. supply chain planning systems. d. supply chain execution systems.
Answer: c Difficulty: Medium Reference: p. 388
58.
Systems to manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner best describes: a. supply chain demand systems. b. supply chain delivery systems. c. supply chain planning systems. d. supply chain execution systems.
Answer: d Difficulty: Medium Reference: p. 389

Chapter 11 Enterprise Applications and Business Process Integration 11-9
59.
Capabilities of supply chain planning systems would not include: a. replenishment. b. advanced scheduling and manufacturing planning. c. demand planning. d. order planning.
Answer: a Difficulty: Medium
60.
A standard measurement of performance best describes: a. metric. b. component cycle. c. MIPS. d. cycle.
Reference: p. 390
Answer: a Difficulty: Medium Reference: p. 389
61.
Which of the following is NOT for measuring supply chain performance: a. Delta-normal. b. fill rate. c. cycle time for sourcing. d. forecast accuracy.
Answer: a Difficulty: Medium Reference: p. 389
62.
A standard set of tools that can be used by companies all over the world to coordinate overseas sourcing, transportation, communications, financing, and compliance with customs regulations would be: a. the Internet. b. an intranet. c. an extranet. d. WAN.
Answer: a Difficulty: Easy Reference: p. 391
63.
A supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered best describes: a. pull-based model. b. innovation-based model. c. push-based model. d. replenishment-based model.
Answer: a Difficulty: Medium Reference: p. 391

11-10 Enterprise Application and Business Process Integration Chapter 11
64.
Companies with effective supply chain management systems can expect: a. improved customer service and responsiveness. b. cost reduction. c. cash utilization. d. All of the above
Answer: d Difficulty: Easy Reference: p. 393
65.
“Good” customers represent about ___________________ percent of the company’s profits but they represent only 10 to 20 percent of the company’s customer base. a. 45 to 55 b. 55 to 65 c. 50 to 80 d. 80 to 90
Answer: d Difficulty: Easy Reference: p. 393
66.
It is estimated that it can cost up to ____________________ times as much to acquire a new customer as to keep an old customer. a. five b. six c. eight d. ten
Answer: b Difficulty: Easy Reference: p. 394
67.
A method of firm interaction with a customer, such as telephone, e-mail, customer service desk, conventional mail, or point of purchase best describes: a. point of presence. b. touch point. c. market entry. d. channel point.
Answer: b Difficulty: Medium Reference: p. 394
68.
Which of the following deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training? a. Enterprise systems software b. Employee relationship management software c. Supply chain management software d. Customer relationship management software
Answer: b Difficulty: Easy Reference: p. 394

Chapter 11 Enterprise Applications and Business Process Integration 11-11
69.
Cross-selling in which a combination of products is sold as a bundle at a price lower than the total cost of the individual products best describes: a. collaborative marketing. b. up-selling. c. discount selling. d. bundling.
Answer: d Difficulty: Easy Reference: p. 395
70.
The marketing of elevated-value products or services to new or existing customers is referred to as: a. cross over selling. b. up-selling. c. discount selling. d. bundling.
Answer: b Difficulty: Easy Reference: p. 395
71.
This company is the market-leading vendor of customer relationship management software: a. IBM. b. Microsoft. c. Siebel Systems. d. J. D. Edwards.
Answer: c Difficulty: Easy Reference: p. 395
72.
Verizon sells telephone services that include local and long-distance service, voice mail service, caller identification, and digital subscriber line access to the Internet. This is a form of: a. up-selling. b. bundling. c. customer relationship management. d. cross-marketing
Answer: b Difficulty: Easy Reference: p. 395
73.
Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes: a. operational customer relationship management applications. b. analytical customer relationship management applications. c. supply chain management applications. d. generic customer relationship management applications.
Answer: b Difficulty: Medium Reference: p. 397

11-12 Enterprise Application and Business Process Integration Chapter 11
74.
Measurement of the number of customers who stop using or purchasing products or services from a company; it is used as an indicator of the growth or decline of a firm’s customer base best describes: a. turnover rate. b. churn rate. c. decline rate. d. asset turns. e. fill rate.
Answer: b Difficulty: Medium Reference: p. 398
75.
Analyzing sales representative and customer service representative productivity is an example of: a. cross-selling. b. operational CRM. c. analytical CRM. d. bundling.
Answer: c Difficulty: Medium Reference: p. 398
76.
This metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected live of the relationship between the customer and the company. a. churn rate b. CLTV c. cost per lead d. cost per sale
Answer: b Difficulty: Easy Reference: p. 399
77.
This metric represents the difference between revenues and expenses minus the cost of promotional marketing used to retain an account: a. ROI. b. EOQ. c. CLTV. d. BEP
Answer: c Difficulty: Medium Reference: p. 399

Chapter 11 Enterprise Applications and Business Process Integration 11-13
78.
The integration of multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner is called a: a. production platform. b. service platform. c. forecasting platform. d. source platform.
Answer: b Difficulty: Medium Reference: p. 401
79.
A methodology for dealing with the organization’s need to change its business processes continually to remain competitive is called: a. business process management. b. business process investigation. c. business process sourcing. d. business process refinement.
Answer: a Difficulty: Medium Reference: p. 401
80.
A Meta Group study of the total cost of ownership of enterprise systems found that the average TCO was: a. $10 million. b. $15 million. c. $300 million. d. $400,000 thousand.
Answer: b Difficulty: Hard Reference: p. 403
81.
Enterprise resource planning (ERO) systems are based on a suite of integrated software modules and a common central database.
Difficulty: Medium Reference: p. 380
82.
Enterprise software consists of a set of interdependent software modules that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing.
Difficulty: Medium Reference: p. 380

11-14 Enterprise Application and Business Process Integration Chapter 11
83.
Best practices are the most successful solutions or problem-solving methods for consistently and effectively achieving a business objective.
Difficulty: Easy Reference: p. 381
84.
SAP, Oracle, PeopleSoft and Baan are all vendors of enterprise software packages.
Difficulty: Medium Reference: p. 383
85.
An enterprise -enabled organization does business the same way worldwide.
Reference: p. 383
86.
Supply chain management is the close linkage and coordination of activities involved in buying, making, and moving a product.
Difficulty: Medium
Difficulty: Medium Reference: p. 385
87.
The supply chain is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers.
Difficulty: Medium Reference: p. 385
88.
The upstream portion of the supply chain includes the organization’s suppliers and their suppliers and the process of managing relationships with them.
Difficulty: Hard Reference: p. 386
89.
The downstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.
Difficulty: Medium Reference: p. 386
90.
In the supply chain process, planning consists of processes that balance aggregate demand and supply to develop a course of action to meet sourcing, production, and delivery requirements.
Difficulty: Easy Reference: p. 386
91.
In the supply chain process, sourcing consists of processes that procure goods and services needed to create a specific product or service.
Difficulty: Easy Reference: p. 386
92.
In the supply chain process, making consists of processes that transform a product into a finished state to meet planned or actual demand.
Difficulty: Easy Reference: p. 386

Chapter 11 Enterprise Applications and Business Process Integration 11-15
93.
SCOR identifies five major supply chain processes: plan, source , make, deliver, and return.
Difficulty: Medium Reference: p. 386
94.
In the supply chain process, delivering consists of processes that provide finished goods and services to meet actual or planned demand, including order management, transportation management, and distribution management.
Difficulty: Easy Reference: p. 387
95.
Inefficiencies in the supply chain are caused by inaccurate or untimely information.
Reference: p. 387
96.
In the supply chain process, returning consists of processes associated with returning products or receiving returned products, including postdelivery customer support.
Difficulty: Medium
Difficulty: Easy Reference: p. 387
97.
Logistics deals with the planning and control of all factors that will have an impact on transporting the correct product or service to where it is needed on time and at the least cost.
Difficulty: Medium Reference: p. 387
98.
If a manufacturer had perfect information about exactly how many units of product customers wanted, when they wanted them, and when they could be produced, it would be possible to implement a highly efficient just-in-time strategy.
Difficulty: Hard Reference: p. 387
99.
Information about the demand for a product gets distorted as it passes from one entity to the
100.
101.
next across the supply chain is referred to as the bullwhip effect .
Difficulty: Hard Reference: p. 387
Supply chain planning systems enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
Difficulty: Hard Reference: p. 388
Demand planning is used to determine how much product a business needs to make to satisfy all of its customers’ demands.
102.
Difficulty: Easy Reference: p. 389
Supply chain execution manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.
Difficulty: Medium Reference: p. 389

11-16 Enterprise Application and Business Process Integration Chapter 11
103.
104.
105.
106.
107.
108.
109.
110.
111.
A(n) metric is a standard measurement of performance.
Difficulty: Medium Reference: p. 389
Firms can use intranets to improve coordination among their internal supply chain processes, and they can use extranets to coordinate supply chain processes shared with their business partners.
Difficulty: Medium Reference: p. 390
In a push-based model of supply chain management systems, production master schedules are based on forecasts or best guesses of demand for products, and products are shoved to customers.
Difficulty: Hard Reference: p. 391
With new flows of information made possible by Web-based tools, supply chain management can more easily follow a pull-based model.
Difficulty: Medium Reference: p. 391
Customer relationship management (CRM) is both a business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction, and customer retention.
Difficulty: Easy Reference: p. 393
Partnership relationship management (PRM) uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners.
Difficulty: Easy Reference: p. 394
A(n) touch point is a method of interaction with the customer, such as telephone, e-mail, customer service desk, conventional mail, Web site, or retail store.
Difficulty: Medium Reference: p. 394
Employee relationship management software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.
Difficulty: Easy Reference: p. 394
Sales force automation modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.
Difficulty: Medium Reference: p. 394

Chapter 11 Enterprise Applications and Business Process Integration 11-17
112.
113.
114.
115.
116.
117.
118.
119.
120.
Cross-selling is the marketing of complementary products to customers.
Difficulty: Easy Reference: p. 395
Up-selling is the marketing of higher-value products or services to new or existing customers.
Difficulty: Easy Reference: p. 395
Bundling is one kind of cross-selling in which a combination of products is sold as a package at a price lower than the total cost of the individual products.
Difficulty: Easy Reference: p. 395
Operational CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.
Difficulty: Easy Reference: p. 397
Analytical CRM includes applications that analyze customer data generated by operational
CRM applications to provide information for improving business performance management.
Difficulty: Easy Reference: p. 397
The churn rate measures the number of customers who stop using or purchasing products or services from a company.
Difficulty: Easy Reference: p. 398
Customer lifetime value (CLTV) is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company.
Difficulty: Medium Reference: p. 399
A service platform integrates multiple applications form multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner.
Difficulty: Easy Reference: p. 401
Business process management is a methodology for dealing with the organization’s need to change its business processes continually to remain competitive.
Difficulty: Easy Reference: p. 401

11-18 Enterprise Application and Business Process Integration Chapter 11
121.
Identify and briefly describe three major enterprise applications.
Enterprise systems, customer relationship management, and supply chain management are three enterprise applications. Enterprise systems are based on a suite of integrated software modules and a common central database. Enterprise systems utilize enterprise software to support financial and accounting, human resources, manufacturing and production, and sales and marketing processes. Enterprise systems provide many benefits including an enterpriseenabled organization, improved management reporting and decision making, a unified information systems technology platform, and more efficient operations and customer-driven business processes.
122.
123.
Supply chain management systems help an organization better manage its supply chain, including planning, sourcing, making, delivering, and returning items. Supply chain management software can be categorized as a supply chain planning system or as a supply chain execution system. A supply chain planning system enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.
A supply chain execution system manages the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Supply chain management benefits include improved customer service and responsiveness, cost reduction, and cash utilization.
Customer relationship management systems help firms maximize the benefits of their customer assets. These systems capture and consolidate data from all over the organization and then distribute the results to various systems and customer touch points across the enterprise. Customer relationship management systems can be classified as operational or as analytical. Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation. Analytical
CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance. Benefits include increased customer satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for customer acquisition and retention.
What is an enterprise system? What is enterprise software?
Enterprise systems focus on integrating the key internal business processes of the firm.
Enterprise software is used by enterprise systems and is a set 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.
What are the benefits of enterprise systems? What are the challenges of enterprise systems?
Benefits include creating an enterprise-enabled organization, providing firmwide knowledgebased management processes, providing a unified information system technology platform and environment, and enabling more efficient operations and customer-driven business processes. Challenges include a daunting implementation process, surviving a cost-benefit analysis, inflexibility, and realizing strategic value.

Chapter 11 Enterprise Applications and Business Process Integration 11-19
124.
125.
126.
127.
What is SCOR? Identify its five major processes.
The Supply Chain Operations Reference Model (SCOR) was developed by the Supply Chain
Council. This cross-industry process reference model defines a common set of supply chain processes to help businesses better understand supply chain management issues and set goals for supply chain improvement. The five major processes include plan, source, make, deliver, and return. The planning process consists of processes that balance aggregate demand and supply to develop a course of action to meet sourcing, production, and delivery requirements.
The sourcing process consists of processes that procure goods and services needed to create a specific product or service. The make process consists of processes that transform a product into a finished state to meet planned or actual demand. The delivery process consists of processes that provide finished goods and services to meet actual or planned demand, including order management, transportation management, and distribution management. The return process consists of processes associated with returning products or receiving returned products, including postdelivery customer support.
Identify two classifications for supply chain software. For each classification, identify five capabilities.
Supply chain planning systems and supply chain execution systems are two classifications for supply chain software. Supply chain planning systems enable a firm to generate demand forecasts for a product and develop sourcing and manufacturing plans for that product.
Capabilities include order planning, advanced scheduling and manufacturing planning, demand planning, distribution planning, and transportation planning. Supply chain execution systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations. Capabilities include order commitments, final production, replenishment, distribution management, and reverse distribution.
Describe service platforms and their relationship to enterprise applications.
What is a metric? Identify five metrics for measuring supply chain performance.
A metric is a standard measurement of performance. Ten metrics were identified in the textbook, including fill rate, on-time deliveries, average time from order to delivery, total supply chain costs, number of days of supply in inventory, asset turns, supply chain response time, forecast accuracy, cycle time, and cash-to-cycle time.

11-20 Enterprise Application and Business Process Integration Chapter 11
128.
129.
130.
Identify two supply chain models. Which is better?
Push-based and pull-based models were discussed in the textbook. Push-based refers to a supply chain driven by production master schedules based on forecasts or best guesses of demand for products. Pull-based refers to a supply chain driven by actual customer orders or purchases so that members of the supply chain produce and deliver only what customers have ordered. Pull-based models are better.
Identify two aspects of customer relationships management.
Operational CRM and analytical CRM are two aspects. Operational CRM refers to customer-facing applications, such as sales force automation, call center and customer service support, and marketing automation. Analytical CRM refers to customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance.
Identify five benefits of customer relationship management systems.
Benefits include: better customer service, make call centers more efficient, cross-sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, acquire new profitable customers, sell additional products and services, provide customer information for developing new products, increase product utilization, reduce sales and marketing costs, identify and retain profitable customers, optimize service delivery costs, retain high-lifetime value customers, improve customer loyalty, improve response rates to direct mail, increase product profitability, respond quickly to market opportunities.