Chapter 2—Enterprise Systems Key
1. One of the primary goals of implementing an ERP system is to standardize systems across multiple locations
and multiple divisions.
2. Large multilocation and multidivision companies are challenged to see the greatest benefits from ERP
systems.
3. Early adopters of ERP systems were in the business of making products.
4. ERP systems have proved to be quite easy to install and in short periods of time.
5. Enterprise systems potentially integrate the business process functionality and information from all of an
organization’s functional areas.
6. With an enterprise system an organization will conduct business in a more costly manner.
7. An add-on software module in an enterprise system might be a customer relationship management system
(CRM).
8. The dominant player in the large system ERP arena is Microsoft.
9. SAP has a primary focus on large Fortune 500 type companies.
10. Microsoft Dynamics and Sage Group focus on small and mid market sized companies.
11. Customer relationship management (CRM) software builds and maintains an organization’s customer–
related database.
12. 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.
13. 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.
14. Customer relationship management (CRM) functionality includes procurement and contract management.
15. Customer self service (CSS) software is often an extension of CRM software.
16. Supply chain management (SCM) software helps plan and execute steps such as demand planning,
acquiring inventory, manufacturing, distributing, and selling the product.
17. Supplier relationship management (SRM) software manages the interactions with the organization’s that
supply the goods and services to an enterprise.
18. Middleware is a software product that connects two or more separate applications or software modules.
19. Enterpriseware might be used to stitch together a number of legacy systems, an enterprise system, best-of-
breed applications, and Web-based applications.
20. An Application Programming Interface (API) is a means for connecting to a system or application provided
by the developer of that application.
21. Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface.
22. Enterprise application integration (EAI) links together two or more systems and allows them to work
23. Product life-cycle management (PLM) software manages product data from design through manufacture,
and disposal.
24. 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.
25. 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.
26. 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.
27. With a best-of-breed approach an organization can minimize the number of different software modules
employed to implement an enterprise system.
28. 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.
29. In event driven architecture (EDA) the business unit “pushes” the event to the recipient rather than waiting
30. The value chain is a chain of activities performed by the organization to transform outputs into inputs
valued by the customer.
31. An organization creates a competitive advantage by creating less value for its customers than does its
competition.
32. Supporting activities of the value chain include activities directly involved with marketing, producing,
selling, and delivering the product or service to the customer.
33. Primary activities of the value chain provide infrastructure such as procurement, information technology,
human resources, and accounting.
34. The value chain works to separate the functional activities or silos of the organization.
35. 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.
36. The activities in the value chain, the value activities, are business processes that convert inputs to valued
outputs.
37. In a disaggregated information system, the customer will be notified immediately whether the item is on the
shelf and not committed to another customer.
38. Telling the customer when they will receive an item is known as available to promise (ATP).
39. A character is a basic unit of data such as a letter, number, or special character.
40. A field is a collection of related characters that comprise an attribute, such as a customer number or name.
41. A record is a collection of related data fields pertaining to a particular entity or event.
42. The credit limit within a customer record always provides unlimited authorization to accept a customer
order.
43. Segregation of duties includes separating the sales and credit departments.
44. Generally, when processing a customer order, one does not need to know the total price of the goods before
credit authorization can be made.
45. In an enterprise system, once a customer order is completed, the purchasing function can be immediately
informed that the merchandise has been sold and may need to be replenished.
46. It is best to combine authorization of data-maintenance activities with authorization of business event
processing activities.
47. An enterprise systems centralized database can make data, such as inventory data, visible throughout the
organization.
48. The correct sequence of the three steps in the sales and distribution process are (1) order entry (2) shipment
process and (3) billing process.
49. The correct sequence of the three steps in the materials management process is (1) record vendor invoice (2)
create purchase order (3) receive the goods.
50. The bottom line is that without integrated information systems organizations have difficulty being managed
on a day-to-day basis and being successful in the long run.
51. The financial accounting module integrates with the sales and distribution and materials management
modules.
52. The purchase-to-pay process includes the events surrounding the sale of goods to a customer, the
recognition of revenue, and the collection of the customer payment.
53. The order-to-cash process includes events surrounding the purchase of goods from a vendor, the recognition
of those costs, and the payment to the vendor.
54. With the installation of an enterprise system an organization should experience all of the following except
A. improved customer service
55. Core applications of an ERP are
A. financial accounting
56. Which of the following is usually not part of an ERP’s core applications?
57. The enterprise system might facilitate the purchase of office equipment by all of the following except
58. The most dominant player in the ERP market for large companies is
59. Which statement about ERP installation is least accurate?
60. Which statement is true?
61. Software that builds and maintains an organization’s customer-related database is known as
62. Software that allows an organization’s customers to complete inquiry without the aid of the organization’s
employees is known as
63. Software that automates sales tasks such as order processing and tracking is known as
64. Software that helps execute steps such as demand planning, acquiring inventory, manufacturing,
distribution, and sales is known as
A. customer relationship management (CRM) software
65. Software that manages the interactions with the organization’s that supply the goods and services to an
enterprise is known as
66. Software that manages the product, beginning with the design of the product, continuing through
manufacture and culminating in the disposal of the product, is known as
67. Supply chain management (SCM) software
68. Some third-party modules can extract data from
A. legacy systems only
69. Which of the following tracks a product from design, continuing through manufacture, and culminating with
the disposal of the product at the end of its life?
70. Technology that can connect together ERP systems and third party add-on modules is called
71. Enterprise systems support an organization by:
A. facilitating the functioning of an organization’s operations
72. In an event-driven architecture (EDA)
73. In an event-driven architecture (EDA)
74. In an event-driven architecture (EDA)
75. The general term for software that connects third-party modules to ERP systems is known as
76. 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.
77. This provides a comprehensive method for integrating manual and automated internal processes,
applications, and systems, as well as integration to external partners and services.
78. Primary activities of the value chain include
A. Accounting
79. Supporting activities of the value chain include
80. Information technology (IT) has been able to create additional value by
A. reducing costs