978-0073402987 Chapter 8 Chapter 8 Closing Material Part 1

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Solution Manual

Book Title

Business Driven Information Systems 5th Edition

ISBN 13

978-0073402987

978-0073402987 Chapter 8 Chapter 8 Closing Material Part 1

April 4, 2019

CHAPTER EIGHT

CLOSING MATERIAL

OPENING CASE QUESTIONS

1. Knowledge: Define 3D printing and its impact on business.

3D printers work by first creating a digital computer aided design (CAD)

file, produced with a 3D modeling program or scanned into a 3D modeling

2. Comprehension: Explain CRM and how 3D printing could a,ect

customer relations.

Operational CRM supports traditional transactional processing for

day-to-day front-o'ce operations or systems that deal directly with the

customers. Analytical CRM supports back-o'ce operations and strategic

analysis and includes all systems that do not deal directly with the

3. Application: Provide an example of how 3D printing might

a,ect the global economy.

Organizations are anticipating that e-business will increase profitability,

create competitive differentiation, and support innovative business

practices. To achieve these goals, companies must evolve through distinct

stages, from integrated processes to truly synchronized inter-enterprise

The disruption occurring in the 3D printing world can of course be

attributed to Moore’s law as the technology has increased in capacity and

processing power while decreasing in size and costs. Now you can

materials, including plastics, metal, glass, and even chocolate. That’s

right—you can custom print your own valentine chocolates! The only

barrier to 3D printing is that the software used to control the printer is still

rather difficult for the average person to use, but you can expect that to

change because software makers, such as Autodesk, are quickly releasing

4. Analysis: Analyze how 3D printing is a,ecting supply chains.

Supply chains will be greatly impacted by 3D printing. Companies will no

longer have to source parts for other vendors as they can just print any

5. Synthesis: Propose a plan for how a company can use 3D

printing to increase sales and customer satisfaction.

Have you ever lost a beloved pet? No worries, just draw a picture of your

pet and print a plastic replica from your 3D desktop printer so your cat or

No worries, just download the specifications and print one. Did you forgot

your girlfriend’s birthday? No worries, just download and customize a

silver bracelet with her initials and in less than 30 minutes, you’ll have the

beautiful custom piece of jewelry on her wrist without ever leaving your

apartment. Welcome to the wonderful world of 3D printing. For almost 30

years, 3D printing has been used by large manufacturing companies to

create everything from custom parts to working prototypes. The medical

6. Evaluate: Argue for or against the following statement: “3D

printing will be more disruptive to business than the Internet.”

Student answers to this question will vary. This works as an excellent

REVIEW QUESTIONS

1. How do integrations connect a corporation?

Integrations allow separate systems to communicate directly with each

other, eliminating the need for manual entry into multiple systems.

Building integrations allows the sharing of information across

2. What is the di,erence between forward and backward

integrations?

Forward integration takes information entered into a given system and

sends it automatically to all downstream systems and processes. A

3. What are the five primary activities in a supply chain?

Plan, source, make, deliver, and return are the primary activities in a

supply chain.

4. What is the bullwhip e,ect and how can it impact a supply

chain and a firm’s profitability?

The bullwhip effect distorted product-demand information ripples from

one partner to the next throughout the supply chain. The

5. Why are customer relationships important to an organization?

Do you agree that every business needs to focus on customers

to survive in the information age?

Without customers you will not have an organization. CRM is critical to

6. What is the di,erence between operational and analytical

CRM?

Operational CRM focuses on business operations such as sales and

7. How can a sales department use CRM to improve operations?

Sales departments can use customer service and support, sales force

8. How can a marketing department use CRM to improve

operations?

Marketing departments can use list generators, campaign

9. What is the di,erence between customer relationship

management, supplier relationship management, and

employee relationship management?

Supplier relationship management (SRM) focuses on keeping suppliers

satisfied by evaluating and categorizing suppliers for different projects.

Partner relationship management (PRM) discovers optimal sales

channels by selecting the right partners and identifying mutual

10. What is an enterprise resource planning system?

Enterprise resource planning (ERP) integrates all departments and

functions throughout an organization into a single IT system (or

11. What are the components in a core ERP system?

Core ERP components are the traditional components included in most

ERP systems and primarily focus on internal operations. The three

12. What are the components in an extended ERP system?

The four most common extended ERP components business

intelligence, customer relationship management, supply chain

13. What does a company need to integrate to become

connected?

Without integrations a company systems will be siloed and unable to

CLOSING CASE ONE QUESTIONS

1. Define SCM and how it can benefit Zappos.

An SCM system can help make a distributor more effective by tracking,

monitoring, and analyzing inventory throughout the entire supply chain.

An SCM system can trigger the production of a product for a

manufacturer, determine where to transport the finished product through

a specific distribution company to a particular supplier, and can even

2. Explain CRM and why Zappos would benefit from the

implementation of a CRM system.

Operational CRM supports traditional transactional processing for

day-to-day front-o'ce operations or systems that deal directly with the

customers. Analytical CRM supports back-o'ce operations and strategic

3. Demonstrate why Zappos would need to implement SCM, CRM,

and ERP for a connected corporation.

Organizations are anticipating that e-business will increase profitability,

create competitive differentiation, and support innovative business

communities. Getting e-business applications based on different

technologies and with differing business models and data models to work

together are key issues for 21st century organizations.

Most organizations piecemeal their applications together since no one

vendor can respond to every organization’s needs; hence, customers

4. Analyze the merger between Zappos and Amazon and assess

potential issues for Zappos customers.

Student answer to this question will vary. Zappos could risk losing its

5. Propose a plan for how Zappos can use Amazon’s supply chain

to increase sales and customer satisfaction.

A supply chain consists of all parties involved, directly or indirectly, in the

procurement of a product or raw material. Supply chain management

(SCM) involves the management of information Cows between and among

an organization to generate e'ciencies within these steps by automating

and improving the information Cows throughout and among the different

supply chain components.

An SCM system can trigger the production of a product for a

manufacturer, determine where to transport the finished product through

a specific distribution company to a particular supplier, and can even

recommend the optimal location for the product at the supplier’s store. A

good SCM system will know exactly when a customer purchases a product

6. Argue for or against the following statement: “In the electronic

age customer relationships are more important than ever and

Zappos provides the new benchmark that all corporations should

follow.”

Student answers to this question will vary. This works as an excellent

CLOSING CASE TWO

Got Milk? It’s Good for You – Unless It’s Contaminated!

1. List 10 products that could possibly be a,ected by a problem

in the U.S. milk supply chain. What would be the damages to an

ice cream business that used contaminated milk in its

manufacturing process? Who do you think should be held liable

for such an issue?

Supply chain management involves the management of information Cows

enable an organization to generate e'ciencies within these steps by

automating and improving the information Cows throughout and among

the different supply chain components. If one member of the supply

consumer to the dairy farmers were impacted by one participants reckless

decision. By continuously monitoring the processes involved in

production a company can quickly identify any potential issues, such as

low-quality supplies or contaminated milk. The list could include:

Chocolate products

Food made with milk in restaurants

Baked goods

Ice cream

Outsourcing offer many benefits such as lower cost, niche expertise, and

increased supplier options. There are also numerous risks associated with

2. Do you think a CRM system could have helped communicate

issues in the milk production supply chain? How could a company

use a CRM system to perform damage control after finding out

about contaminated milk in the supply chain?

A CRM system could identify customers who might have purchased the

products and then you could contact the customers directly, similar to

3. Do you agree with the Chinese court in sentencing of the

middlemen to death and a dairy boss to life in prison for their

roles in the milk contamination scandal? Do you think the United

States should implement similar laws for unethical corporate

behavior?

This is a very interesting question to discuss in class. These punishments

are harsh compared to U.S. punishments, but with the recent number of

4. Many companies in the United States use Chinese suppliers in

the sourcing of raw materials and manufacturing of products.

Research the Internet and find three examples of recent issues

for U.S. companies because of Chinese products. What will

happen in the long run as companies use Chinese suppliers?

Answers will vary depending on the businesses the student identify.

CRITICAL BUSINESS THINKING

Instructor Note:There are few right or wrong answers in the business world.

There are really only efficient and inefficient, and effective and ineffective

business decisions. If there were always right answers businesses would

never fail. These questions were created to challenge your students to apply

the materials they have learned to real business situations. For this reason,

the authors cannot provide you with one version of a correct answer. When

grading your students’ answers, be sure to focus on their justification or

support for their specific answers. A good way to grade these questions is to

compare your student’s answers against each other.

1. POLITICAL SUPPLY CHAINS

Project Purpose: Analyzing global supply chains.

Potential Solution:The average company spends nearly half of every

dollar that it earns on production needs—goods and services it needs from

external suppliers to keep producing. A supply chain consists of all parties

involved, directly or indirectly, in the procurement of a product or raw

In the past, companies focused primarily on manufacturing and quality

improvements within their four walls; now their effort extend beyond

those walls to inCuence the entire supply chain including customers,

customers’ customers, suppliers, and suppliers’ suppliers. Today’s supply

2. ANALYZING DELL’S SUPPLY CHAIN MANAGEMENT SYSTEM

Project Purpose: Analyzing one of business’s most successful SCM

implementations.

Potential Solution: There are numerous websites and articles on the

Internet discussing Dell’s famous SCM system. The U.S. government even

visited Dell to learn how to implement a superior SCM system for moving

army supplies. Student answers to this question will vary. The most

important part of this question is that your students gain a detailed

3. TOTAL RECALL

Project Purpose: Analyzing issues in the supply chain.

Potential Solution:In mid-2000, the Firestone Tire Company issued a

recall of some of its tires – those mounted on certain sport-utility vehicles

(SUV) of the Ford Motor Company. This was done in response to reports

that tire treads on some SUVs separated in use, causing accidents, some

of which involved fatal injuries as vehicles rolled over.

At first, Firestone denied there was a problem with its tires, but it issued

the recall under pressure from consumer groups and various government

agencies. All of the tires in question were produced at the same tire

plant, and there were calls to shut down that facility. Firestone suggested

that Ford incorrectly matched the wrong tires with its SUVs. There were

also the suggestions that the shock absorbers of the SUVs were rubbing

against the tires, causing or aggravating the problem.

Both Ford and Firestone denied that this had been an ongoing problem.

However, there was a public outcry when it was learned that Firestone

had previously issued recalls of these tires in South America, but

companies had settled at least one lawsuit involving an accident caused

by tread separation several years earlier.

This case raises a number of issues, some related to possible causes, as

well as ethical issues. Discuss each of these factors and their actual or

potential relevance to what happened:

1. Product: Firestone and Ford both produce products. When a

company produces products and services they must constantly monitor

the five competitive priorities. All of these factors could contribute to

strategy. There are five key competitive priorities that translate

directly into characteristics that are used to describe various processes

by which a company can add value to its OM decisions including:

Cost

2. Qualitycontrol: Assuring quality: Quality is indispensable in an airline

where safety is the highest priority. Today’s travelers expect

high-quality customer service during ticketing, check-in, curb service,

market that it is aimed to serve. For example, a generic bike is of

significantly different quality than the bike of a world-class cyclist.

Higher quality products command higher prices in the marketplace.

Organizations must establish the “proper level” of product quality by

customers to products that cost a little more but are perceived by the

customers as offering greater value.

Process quality is critical in every market segment. Regardless of

whether the product is a generic bike or a bike for an international

and higher revenues. Many organizations have turned to the use of

modern quality control standards including:

Six sigma quality: Detects potential problems to prevent their

occurrence and allows just 3.4 defects per million opportunities.

Malcolm Baldrige National Quality Awards: In 1987 in the

United States, a standard was set for overall company quality with

the introduction of the Malcolm Baldrige National Quality Awards,

named in hone of the late U.S. secretary of commerce. Companies

can apply for these awards in each of the following areas:

ISO900: The common name given to quality management and

assurance standards. The International Organization for

Standardization (ISO) is a nongovernmental organization

established in 1947 to promote the development of world standards

to facilitate the international exchange of goods and services. ISO

ISO 14000: A collection of the best practices for managing an

organization’s impact on the environment. ISo 14000 does not

prescribe specific performance levels, but establishes environmental

management systems. The requirements for certification include

CMMI: CMMI stands for Capability Maturity Model Integration.

CMMI is a framework of best practices. The current version,

CMMI-DEV, describes best practices in managing, measuring and

monitoring software development processes. The CMMI model does

3. Ethics: Ethics is everywhere is this dilemma. Should a company take

responsibility for product problems? The obvious answer is yes, but

4. FINDING SHELF SPACE AT WAL-MART

Project Purpose: Analyzing Wal-Marts Supply Chain

Potential Solution: Companies that excel in supply chain operations

perform better in almost every financial measure of success, according to

a report from Boston-based AMR Research Inc. When supply chain

“The basis of competition for winning companies in today’s economy is

supply chain superiority,” says Kevin O’Marah, vice president of research

at AMR Research. “These companies understand that value chain

There is an excellent article on the Wal-Mart site that steps potential

partners through how to become a Wal-Mart or Sam’s Club partner.

Interested in doing business with Wal-Mart or Sam’s Club?

http://www.walmartstores.com/Files/Supplier_GettingStarted.pdf

Then this guide is the right place to start. Here you’ll find essential

information on preparing yourself for the Wal-Mart and Sam’s Club

marketplace, as well as useful resources to help guide you through the

5. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES

Project Purpose: To analyze the value of a CRM strategy.

Potential Solution: CRM is a business philosophy based on the premise

that those organizations that understand the needs of individual

customers are best positioned to achieve sustainable competitive

advantages in the future. Operational CRM supports traditional

transactional processing for day-to-day front-o'ce operations or systems

that deal directly with the customers. Analytical CRM supports back-o'ce

6. SEARCHING FOR EMPLOYEE LOYALTY

Project Purpose: To gain additional insight into employee relationship

management (ERM).

Potential Solution:Employee relationship management (ERM) provides

employees with a subset of CRM applications available through a Web

browser. Many ERM applications assist the employee in dealing with

customers by providing detailed information on company products,

7. DRIVING UP PROFITS WITH LOYALTY (or Driving Down?)

Project Purpose: To apply CRM technology.

Potential Solution:Customer relationship management involves

managing all aspects of a customer’s relationship with an organization to

increase customer loyalty and retention and an organization’s profitability.

The ButterCy Cafe has a big decision to make. It can sell the information

8. SUPPORTING CUSTOMERS

Project Purpose: To revamp a customer service center.

Potential Solution: A contact center (or call center) is where customer

service representatives (CSRs) answer customer inquiries and respond to

problems through a number of different customer touchpoints. A contact

center is one of the best assets a customer-driven organization can have

customer service center can use to help it operate effectively include:

Automatic call distribution - a phone switch routes inbound calls to

available agents.

Interactive voice response (IVR) - directs customers to use touch-tone

phones or keywords to navigate or provide information.

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978-0073402987 Chapter 8 Chapter 8 Closing Material Part 1

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Business Driven Information Systems 5th Edition