Chapter 2Enterprise Systems

Chapter 2—Enterprise Systems

TRUE/FALSE

• One of the primary goals of implementing an ERP system is to standardize systems across multiple

locations and multiple divisions.

ANS: T

• Communicating via separate databases is easier than communicating with an enterprise system.

ANS: F

• Enterprise systems result in more accurate forecasts resulting in reduced inventory and costs to

redistribute inventory.

ANS: T

• The primary goal of installing an enterprise system is reducing system installation costs.

ANS: F

• Enterprise systems potentially integrate the business process functionality and information from all of

an organization’s functional areas.

ANS: T

• An enterprise system should cause the organization to conduct business in a more costly manner.

ANS: F

• An add-on software module in an enterprise system might be a customer relationship management

system (CRM).

ANS: T

• The dominant player in the large system ERP arena is Microsoft.

ANS: F

• SAP has a primary focus on large Fortune 500 type companies.

ANS: T

• Microsoft Dynamics and Sage Group focus on small and mid market sized companies.

ANS: T

• Customer relationship management (CRM) software builds and maintains an organization’s customer-

related data.

ANS: T

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• Customer relationship management (CRM) software aggregates, manages, and retains data across the

entire organization for the identification, acquisition, and retention of vendors to maximize the benefits of those relationships.

ANS: F

• If you have made a Web purchase such as with Amazon.com you have experienced some of the

functionality of a CRM system where the vendor keeps track of your name, address, and purchases.

ANS: T

• Customer relationship management (CRM) functionality includes procurement and contract

management.

ANS: F

• Customer self service (CSS) software is often an extension of CRM software.

ANS: T

• Supply chain management (SCM) software helps plan and execute the steps such as demand planning,

acquiring inventory, manufacturing, distributing, and selling the product.

ANS: T

• Supplier relationship management (SRM) software manages the interactions with the organization’s

that supply the goods and services to an enterprise.

ANS: T

• Middleware is a software product that connects two or more separate applications or software

modules.

ANS: T

• Enterpriseware might be used to stitch together a number of legacy systems, an enterprise system,

best-of-breed applications, and Web-based applications.

ANS: F

• An Application Programming Interface (API) is a means for connecting to a system or application

provided by the developer of that application.

ANS: T

• Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface.

ANS: T

• Enterprise application integration (EAI) is an approach to connecting multiple pieces of an enterprise

system.

ANS: T

• Examples of enterprise application integration (EAI) include ERP and CRM.

ANS: T

• Enterprise Services Bus (ESB) is a type of communications-broker software that uses standardized

protocols to let event-driven applications communicate in a less-expensive manner than can the tightly-coupled, synchronous enterprise application integration (EAI) platforms.

ANS: T

• DreamWeaver is a Web services platform from SAP that can be used to build applications that

integrate business processes and databases from a number of sources within and between organizations.

ANS: F

• Business process management (BPM) provides a comprehensive method for integrating manual and

automated internal processes, applications, and systems, as well as integration to external partners and services.

ANS: T

• Manual accounting systems include integration of business processes, applications, databases, and data

standards such as EDI, and XML.

ANS: F

• Event driven architecture (EDA) is an approach to designing and building enterprise systems in which

business events trigger messages to be sent by middleware between independent software modules that are completely unaware of each other.

ANS: T

• In event driven architecture (EDA) the business unit “pushes” the event to the recipient rather than

waiting for the recipient to request or “pull”, the event to them

ANS: T

• The value chain is a chain of activities performed by the organization to transform outputs into inputs

valued by the customer.

ANS: F

• An organization creates a competitive advantage by creating less value for its customers than does its

competition.

ANS: F

• Secondary activities of the value chain include activities directly involved with marketing, producing,

selling, and delivering the product or service to the customer.

ANS: F

• Primary activities of the value chain provide support infrastructure such as procurement, information

technology, human resources, and accounting.

ANS: F

• The value chain emphasizes the separate activities or silos of the organization.

ANS: F

• Dell’s value chain takes raw materials, manufactures computers and other products, and delivers them

to customers in a timely manner at an attractive price.

ANS: T

• The activities in the value chain, the value activities, are business processes that convert inputs to

valued outputs.

ANS: T

• In a disaggregated information system, the customer will be notified immediately whether the item is

on the shelf and not committed to another customer.

ANS: F

• Telling the customer when they will receive an item is known as available to promise (ATP).

ANS: T

• A character is a basic unit of data such as a letter, number, or special character.

ANS: T

• A field is a collection of related characters that comprise an attribute, such as a customer number or

name.

ANS: T

• A record is a collection of related data fields pertaining to a particular entity or event.

ANS: T

• The credit limit within a customer record provides unlimited authorization for customer sales.

ANS: F

• Segregation of duties includes separating the sales and credit departments.

ANS: T

• Generally, when processing a customer order, one does not need to know the total price of the goods

before credit authorization can be made.

ANS: F