Chapter 9

Achieving Operational Excellence

and Customer Intimacy:
Enterprise Applications
True-False Questions
1. Manufacturing companies typically think about their supply chains as a process ultimately
focused on serving the customer.
Answer: False i!!iculty: "edium #e!erence: p$ %&&
2. Enterprise software allows data to be used by multiple functions and business processes for
precise organizational coordination and control.
Answer: True i!!iculty: Easy #e!erence: p$ %&'
3. Companies can use configuration tables provided by the enterprise software to tailor a
particular aspect of the system to the way it does business.
Answer: True i!!iculty: (ard #e!erence: p$ %&'
. !he upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.
Answer: False i!!iculty: "edium #e!erence: p$ %)*
". #upply chain inefficiencies can waste as much as 2" percent of a company$s operating costs.
Answer: True i!!iculty: "edium #e!erence: p$ %)*
%. &ow inventory acts a buffer for the lack of fle'ibility in the supply chain.
Answer: False i!!iculty: "edium #e!erence: p$ %)+
(. !he bullwhip effect is the distortion of information about the demand for a product as it
passes from one entity to the ne't across the supply chain.
Answer: True i!!iculty: "edium #e!erence: p$ %)+
*,*
). #upply chain e'ecution systems enable the firm to generate demand forecasts for a product
and to develop sourcing and manufacturing plans for that product.
Answer: False i!!iculty: (ard #e!erence: p$ %),
*. +n the pre,+nternet environment- supply chain coordination was hampered by the difficulties
of making information flow smoothly among different internal supply chain processes.
Answer: True i!!iculty: Easy #e!erence: p$ %)&
1.. +ntranets can be used to integrate information from isolated business processes within the
firm to help them manage their internal supply chains.
Answer: True i!!iculty: Easy #e!erence: p$ %)&
11. !he +nternet 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 i!!iculty: Easy #e!erence: p$ %)&
12. +n a push,based model- actual customer orders or purchases trigger events in the supply chain.
Answer: False i!!iculty: "edium #e!erence: p$ %))
13. +n a pull,based model- production master schedules are based on forecasts of demand for
products.
Answer: False i!!iculty: "edium #e!erence: p$ %))
1. /ell Computer$s build,to,order system is an e'ample of a pull,based model.
Answer: True i!!iculty: "edium #e!erence: p$ %))
1". !otal supply chain costs represent the ma0ority of operating e'penses for many businesses
and in some industries approach (" percent of the total operating budget.
Answer: True i!!iculty: (ard #e!erence: p$ %)-
1%. Customer relationship management can help organizations identify customers who cost a lot
to attract and to keep.
Answer: True i!!iculty: (ard #e!erence: p$ %)-
1(. Cross,selling is the marketing of complementary products to customers.
Answer: True i!!iculty: Easy #e!erence: p$ %.+
*,+
1). 1nalytical C2M uses a customer data warehouse and tools to analyze customer data
collected from the firm$s customer touch points and from other sources.
Answer: True i!!iculty: "edium #e!erence: p$ %.,
1*. 3hen building an enterprise system- the benefits are easily 4uantified at the beginning of the
pro0ect.
Answer: False i!!iculty: "edium #e!erence: p$ %.)
2.. Enterprise systems re4uire fundamental changes in the way the business operates.
Answer: True i!!iculty: "edium #e!erence: p$ %.)
"ultiple-Choice Questions
21. 3hat problem in its supply chain system did 3hirlpool face by 2...5
a. 6igh inventory of finished goods but low availability
b. &ow amounts of finished goods
c. 6igh availability of goods but poor forecasting
d. 6igh demand but low inventories of finished goods
Answer: a i!!iculty: "edium #e!erence: p$ %&&
22. 3hat uni4ue approach did 3hirlpool employ in defining a solution5
a. #eeing the supply chain as originating with suppliers
b. #eeing the supply chain as a way to focus on customers
c. #eeing the supply chain as an e'tension of its sales practices
d. #eeing the supply chain as a tool secondary to knowledge management
Answer: / i!!iculty: "edium #e!erence: p$ %&&
23. (Synthesis)
3hich type of system- from a constituency perspective- did 3hirlpool need to improve5
a. M+#
b. /##
c. !7#
d. E##
Answer: c i!!iculty: (ard #e!erence: pp$ %&&0%&)
(Synthesis in terms of arrange, model)
*,%
2. (Analysis)
3hy is overstocking warehouses not an effective solution for a problem of low availability5
a. +t slows product time to market.
b. +t is an inefficient use of raw materials.
c. +t increases sales costs.
d. +t increases inventory costs.
Answer: d i!!iculty: (ard #e!erence: p$ %)+
(Analysis in terms of compare, appraise)
2". (Analysis)
3hich of the following business values of supply chain management systems did
3hirlpool$s solution illustrate most effectively5
a. 8sing assets more effectively
b. #peeding product time to market
c. Matching supply to demand
d. 2educing costs
Answer: c i!!iculty: (ard #e!erence: p$ %&&
(Analysis in terms of compare, appraise)
2%. 1 suite 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. E27 systems.
c. groupware.
d. application software.
Answer: / i!!iculty: Easy #e!erence: p$ %&-
2(. !his type of software enables data to be used by multiple functions and business processes
for organization coordination and control9
a. groupware.
b. application software.
c. collaboration software.
d. enterprise software.
Answer: d i!!iculty: Easy #e!erence: p$ %&'
*,,
2). !his software is built around thousands of predefined business processes:
a. process management software.
b. collaboration software.
c. enterprise software.
d. groupware.
Answer: c i!!iculty: "edium #e!erence: p$ %&'
2*. !he most successful solutions for consistently and effectively achieving a business ob0ective
are referred to as9
a. enterprise solutions.
b. best practices.
c. operational e'cellence.
d. business processes.
Answer: / i!!iculty: "edium #e!erence: p$ %&'
3.. Synthesis
:ou have been asked to implement enterprise software for a manufacturer of kitchen
appliances. 3hat is the first step you should take5
a. #elect the functions of the system you wish to use.
b. Map the company$s business processes to the software$s business processes.
c. Map the software$s business processes to the company$s business processes.
d. #elect the business processes you wish to automate.
Answer: a i!!iculty: (ard #e!erence: p$ %&'
Synthesize in the sense of arrange, assemble, organize
31. +n order to achieve ma'imum benefit from an enterprise software package- a business9
a. customizes the software to match all of its business processes.
b. uses only the processes in the software that match its own processes.
c. changes the way it works to match the software$s business processes.
d. selects only the software that best matches its e'isting business processes.
Answer: c i!!iculty: "edium #e!erence: p$ %&'
*,&
32. 3hen tailoring a particular aspect of a system to the way a company does business-
enterprise software can provide the company with9
a. configuration tables.
b. pro0ect workbooks.
c. data dictionaries.
d. state transition diagrams.
Answer: a i!!iculty: "edium #e!erence: p$ %&'
33. #upply chain comple'ity and scale9
a. affect both very small companies and large- global corporations.
b. were difficult to address before the +nternet.
c. result when firms produce comple' products and services.
d. result when firms implement full,scale supply,chain management systems.
Answer: c i!!iculty: "edium #e!erence: p$ %)1
3. 1 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 a9
a. distribution channel.
b. supply chain.
c. value chain.
d. marketing chain.
Answer: / i!!iculty: "edium #e!erence: p$ %)1
3". +6;7 purchased a middleware software package to integrate its data because9
a. middleware packages are built for adaptability.
b. packaged software is less e'pensive.
c. they were able to customize their business processes to this software.
d. this packaged software addressed their uni4ue needs.
Answer: / i!!iculty: "edium #e!erence: p$ %.1
3%. Components or parts of finished products are referred to as9
a. upstream materials.
b. raw materials.
c. secondary products.
d. intermediate products.
Answer: d i!!iculty: Easy #e!erence: p$ %)*
*,)
3(. 1 company$s suppliers- supplier$s suppliers- and the processes for managing relationships
with them is9
a. the supplier$s internal supply chain.
b. the e'ternal supply chain.
c. the upstream portion of the supply chain.
d. the downstream portion of the supply chain.
Answer: c i!!iculty: Easy #e!erence: p$ %)*
3). 1 company$s organizations and processes for distributing and delivering products to the final
customers is9
a. the supplier$s internal supply chain.
b. the e'ternal supply chain.
c. the upstream portion of the supply chain.
d. the downstream portion of the supply chain.
Answer: d i!!iculty: Easy #e!erence: p$ %)*
3*. +nefficiencies arise in a supply chain because of9
a. inaccurate or untimely information.
b. poor integration between systems of suppliers- manufacturers- and distributors.
c. inefficient or inaccurate M+#.
d. unforeseeable events.
Answer: a i!!iculty: "edium #e!erence: p$ %)*
.. 3hich of the following traditional solutions enables manufacturers to deal with uncertainties
in the supply chain5
a. #afety stock
b. ;verstocking
c. <ust,in,time strategies
d. /emand planning
Answer: a i!!iculty: "edium #e!erence: p$ %)+
1. 1 scheduling system for minimizing inventory by having components arrive e'actly at the
moment they are needed and finished goods shipped as soon as they leave the assembly line
best describes which strategy9
a. 0ust,in,time strategy.
b. stockless inventory.
c. 1#17 inventory.
d. replenishment,only inventory.
Answer: a i!!iculty: "edium #e!erence: p$ %)+
*,.
2. 1 distortion of information about the demand for a product as it passes from one entity to the
ne't across the supply chain is called9
a. bullwhip effect.
b. ripple effect.
c. replenishment effect.
d. e'ponential effect.
Answer: a i!!iculty: "edium #e!erence: p$ %)+
3. #upply chain software can be classified as either9
a. supply chain source systems or supply chain recovery systems.
b. supply chain build systems or supply chain delivery systems.
c. supply chain planning systems or supply chain build systems.
d. supply chain planning systems or supply chain e'ecution systems.
Answer: d i!!iculty: "edium #e!erence: p$ %),
. #ystems that enable a firm to generate demand forecasts for a product and to develop
sourcing and manufacturing plans for that product best describes9
a. supply chain demand systems.
b. supply chain delivery systems.
c. supply chain planning systems.
d. supply chain e'ecution systems.
Answer: c i!!iculty: "edium #e!erence: p$ %),
". #upply chain planning systems9
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: / i!!iculty: (ard #e!erence: p$ %),
%. 3hich supply chain planning function determines how much product is needed to satisfy all
customer demands5
a. /istribution management
b. 2eplenishment planning
c. /emand planning
d. ;rder planning
Answer: c i!!iculty: "edium #e!erence: p$ %)&
*,-
(. #ystems 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 supply chain ========== systems.
a. demand
b. delivery
c. planning
d. e'ecution
Answer: d i!!iculty: "edium #e!erence: p$ %),
). #upply chain e'ecution systems9
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 i!!iculty: "edium #e!erence: pp$ %),0%)&
*. Capabilities of supply chain planning systems would not include9
a. replenishment.
b. advanced scheduling and manufacturing planning.
c. demand planning.
d. order planning.
Answer: a i!!iculty: "edium #e!erence: p$ %)&
".. ;ne capability of a supply chain e'ecution system is9
a. distribution planning.
b. transportation planning.
c. manufacturing planning.
d. reverse distribution.
Answer: d i!!iculty: "edium #e!erence: p$ %)&
"1. #ome supply chain integration can be developed ine'pensively by9
a. adapting to the business processes embedded in #CM packages.
b. using +nternet technology
c. adapting 72M modules
d. customizing E27 software
Answer: / i!!iculty: "edium #e!erence: p$ %)&
*,'
"2. 1 supply chain driven by actual customer orders or purchases follows a9
a. pull,based model
b. build,to,stock model
c. push,based model
d. replenishment,driven model
Answer: a i!!iculty: "edium #e!erence: p$ %))
"3. 1 build,to,order supply,chain model is also called a9
a. supply,driven model
b. demand,driven model
c. replenishment,driven model
d. push,based model
Answer: / i!!iculty: "edium #e!erence: p$ %))
". Concurrent supply chains are made possible by which technology5
a. +nternet technology
b. 7ull,based technology
c. #upply chain management systems
d. <ust,in,time supply,chain technologies
Answer: a i!!iculty: "edium #e!erence: pp$ %))0%).
"". Companies with effective supply chain management systems can e'pect9
a. improved customer service and responsiveness.
b. cost reduction.
c. reduced inventory levels.
d. all of the above.
Answer: d i!!iculty: Easy #e!erence: p$ %)-
"%. 1 method of firm interaction with a customer- such as telephone- e,mail- customer service
desk- conventional mail- or point of purchase best describes9
a. point of presence.
b. touch point.
c. market entry.
d. purchase point.
Answer: / i!!iculty: "edium #e!erence: p$ %)'
*&1
"(. 3hich of the following enterprise software deals with employee issues such as setting
ob0ectives- employee performance management- performance,based compensation- and
employee training5
a. Enterprise systems software
b. Employee relationship management software
c. #upply chain management software
d. Customer relationship management software
Answer: / i!!iculty: Easy #e!erence: p$ %.*
"). (Analysis)
>ased on your reading of the +nternational 6ouse of 7ancakes case study- which strategy for
combating competitive forces was a chief focus of +6;7$s updated information systems5
a. &ow,cost leadership
b. 7roduct differentiation
c. ?ocus on market niche
d. #trengthen customer and supplier intimacy
Answer: d i!!iculty: (ard #e!erence: pp$ %.10%.*
"*. 3hat are the three general business functions that C2M software serves5
a. E2M- 72M- and C2M
b. #ales- customer service- and marketing
c. #ales and marketing- human resources- and finance and accounting
d. #ales and marketing- customer service- and human resources
Answer: / i!!iculty: "edium #e!erence: p$ %.*
%.. 3hich of the following is an important capability for service,category business processes
that is found in most ma0or C2M software products5
a. 2eturns management
b. ;rder management
c. 1ccount management
d. 1ll of the above
Answer: a i!!iculty: (ard #e!erence: p$ %.%
%1. 3hich capability would be classified as an operational C2M application5
a. #?1 modules
b. Call center automation modules
c. 3eb,based customer self,service modules
d. 1ll of the above
Answer: d i!!iculty: "edium #e!erence: p$ %.,
*&*
%2. Customer relationship management applications dealing with the analysis of customer data to
provide information for improving business performance best describes9
a. operational customer relationship management applications.
b. analytical customer relationship management applications.
c. supply chain management applications.
d. generic customer relationship management applications.
Answer: / i!!iculty: "edium #e!erence: p$ %.,
%3. 3hich type of enterprise software would allow you to analyze C&!@5
a. 72M
b. ;perational C2M
c. 1nalytical C2M
d. E2M
Answer: c i!!iculty: "edium #e!erence: p$ %.&
%. !his metric is based on the relationship between the revenue produced by a specific
customer- the e'penses incurred in ac4uiring and servicing that customer- and the e'pected
life of the relationship between the customer and the company.
a. Churn rate
b. C&!@
c. Cost per lead
d. Cost per sale
Answer: / i!!iculty: Easy #e!erence: p$ %.&
%". !he measurement of the number of customers who stop using or purchasing products or
services from a company is called9
a. switching costs.
b. churn rate.
c. C&!@.
d. switching rate.
Answer: / i!!iculty: "edium #e!erence: p$ %.&
*&+
%%. Synthesis
3hich type of enterprise application or techni4ue would help you best identify hidden
buying patterns of your customers5
a. ;&17 using a #CM system
b. /ata mining using a C2M system
c. 7redictive analysis using a 72M system
d. Aone of the above
Answer: / i!!iculty: (ard #e!erence: pp$ %.,0%.&
Synthesis in terms of assemble
%(. 6ow does the implementation of enterprise applications introduce switching costs5
a. Aew processes may cause customers to stop using your products.
b. 7rice transparency becomes more pronounced.
c. Cost transparency becomes more pronounced.
d. +t is costlier to switch vendors.
Answer: d i!!iculty: "edium #e!erence: p$ %..
%). ?rom your reading of the +nvacare case study- what might have prevented the high levels of
lost sales that resulted from the use of new order,to,cash modules in its information systems5
a. More complete testing
b. +ntegrating its business processes with the new system
c. Management support of the new systems
d. 1ll of the above
Answer: a i!!iculty: "edium #e!erence: pp$ %.-0%.'
%*. Evaluation
3hy is an order,to,cash service considered a comple' process to implement as an enterprise
application5
a. +t is a modern- +nternet,based concept that legacy systems typically do not provide.
b. +t needs information from many different functions of the enterprise.
c. +t re4uires the use of BM& and 3eb services.
d. 1ll of the above
Answer: / i!!iculty: "edium #e!erence: p$ %.'
*&%
(.. ?rom your reading of the &imited >rands case study- what was the cause of .. merchandise
trailers showing up at the parking lot of a distribution center that was designed to hold only
1". trailers5
a. &egacy applications used for #CM
b. 8se of a comple'- little,understood supply,chain e'ecution system
c. 6undreds of #CM applications on different platforms being used
d. &ack of real,time reporting capabilities
Answer: c i!!iculty: "edium #e!erence: pp$ %-&0%-)
Fill in the 2lan3s
(1. Best practices are the most successful solutions or problem,solving methods for consistently
and effectively achieving a business ob0ective.
i!!iculty: Easy #e!erence: p$ %&'
(2. !he downstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.
i!!iculty: "edium #e!erence: p$ %)*
(3. Demand planning is used to determine how much product a business needs to make to
satisfy all of its customers$ demands.
i!!iculty: "edium #e!erence: p$ %),
(. ?irms can use extranets to coordinate supply chain processes shared with their business
partners.
i!!iculty: "edium #e!erence: p$ %)&
(". +n 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 CpushedD to
customers.
i!!iculty: "edium #e!erence: p$ %))
(%. 1EnF touch point is a method of interaction with the customer- such as telephone- e,mail-
customer service desk- conventional mail- 3eb site- or retail store.
i!!iculty: "edium #e!erence: p$ %)'
*&,
((. Partner 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.
i!!iculty: Easy #e!erence: p$ %.*
(). Sales force automation/S! modules in C2M 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.
i!!iculty: "edium #e!erence: p$ %.+
(*. Enterprise applications can be used to create ser"ice platforms- which provide a greater
degree of cross,functional integration
i!!iculty: Easy #e!erence: p$ %..
).. Portal software can integrate information from enterprise applications and disparate in,house
legacy systems- presenting it to users through a 3eb interface.
i!!iculty: Easy #e!erence: p$ %.'
*&&
Essay Questions
)1. Identi!y and /rie!ly descri/e three ma4or 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 enterprise,
enabled organization- improved management reporting and decision making- a unified
information systems technology platform- and more efficient operations and customer,driven
business processes.
#upply chain management systems help an organization better manage its supply chain-
including planning- sourcing- and making- delivering- and returning items. #upply chain
management software can be categorized as a supply chain planning system or as a supply
chain e'ecution system. 1 supply chain planning system enables a firm to generate demand
forecasts for a product and to develop sourcing and manufacturing plans for that product.
1 supply chain e'ecution 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. #upply chain management benefits include improved customer service and
responsiveness- cost reduction- and cash utilization.
Customer relationship management systems help firms ma'imize the benefits of their
customer assets. !hese 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. ;perational C2M refers to customer,facing applications- such as sales force
automation- call center and customer service support- and marketing automation. 1nalytical
C2M refers to customer relationship management applications dealing with the analysis of
customer data to provide information for improving business performance. >enefits include
increased customer satisfaction- reduced direct marketing costs- more effective marketing-
and lower costs for customer ac4uisition and retention.
i!!iculty: "edium #e!erence: pp$ %&.0%.&
)2. 5hat is an enterprise system6 5hat is enterprise so!tware6
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.
i!!iculty: "edium #e!erence: pp$ %&-0%&'
*&)
)3. Evaluation
5hat are the /ene!its o! enterprise systems6 5hat are the challenges o! enterprise
systems6
>enefits include creating an enterprise,enabled organization- providing firmwide knowledge,
based 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- infle'ibility- and realizing strategic value.
i!!iculty: "edium #e!erence: pp$ %&.0%.'
Evaluation in terms of assess, judge
). Identi!y two categories o! supply chain so!tware$ For each category7 identi!y !ive
capa/ilities$
#upply chain planning systems and supply chain e'ecution systems are two classifications
for supply chain software. #upply 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. #upply chain e'ecution
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.
i!!iculty: "edium #e!erence: pp$ %),0%)&
)". Identi!y two supply chain models$ 5hich is /etter6
7ush,based and pull,based models were discussed in the te'tbook. 7ush,based refers to a
supply chain driven by production master schedules based on forecasts or best guesses of
demand for products. 7ull,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. 7ull,based models are better.
i!!iculty: "edium #e!erence: p$ %))
)%. Identi!y two aspects o! customer relationships management$
!he two aspects of customer relationships management are9 operational C2M and analytical
C2M. ;perational C2M refers to customer,facing applications- such as sales force
automation- call center and customer service support- and marketing automation. 1nalytical
C2M refers to customer relationship management applications dealing with the analysis of
customer data to provide information for improving business performance.
i!!iculty: "edium #e!erence: p$ %.,
*&.
)(. Identi!y !ive /ene!its o! customer relationship management systems$
>enefits include9 better customer service- making call centers more efficient- cross,sell
products more effectively- help sales staff close deals faster- simplify marketing and sales
processes- ac4uire 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- and respond 4uickly to market opportunities.
i!!iculty: "edium #e!erence: pp$ %)-0%.&
)). Synthesis
8ou have /een hired /y 9antori7 Inc$7 a small company that imports and distri/utes an
Italian spar3ling water$ The company is interested in what /ene!its an enterprise system
would /ring$ 5ould an enterprise system /e appropriate !or this company6 5hat steps
would you ta3e in determining this6
#tudent answers will varyG an e'ample answer is9 1n enterprise system may be too
e'pensive- although there are enterprise software packages that are available to smaller
companies. 1 hosted enterprise application might be the most economical way to implement
an enterprise system. !o determine whether this would be beneficial to #antori- + would first
look at their e'isting business processes. +t would be ideal to determine if their efficiency
meets benchmarks in their industry and allows them to be competitive with other businesses
in their niche. !hen + would review e'isting hosted applications to see how the applications
business processes matched up with #antori$s. +t would be important to compare the costs of
instituting new business processes with the benefits and cost,savings.
i!!iculty: (ard #e!erence: pp$ %&.0%-1
Synthesis in terms of propose, plan
*&-
)*. Evaluation
:lant Away is an Oregon-/ased retailer and distri/utor o! trees and shru/s$ They have
hundreds o! smaller nurseries /ased around the country that grow the plant stoc3$ The
ma4ority o! their /usiness is conducted online: Consumers purchase typically small
;uantities o! products online and :lant Away coordinates the shipping !rom the most
appropriate nursery$ 5hat uni;ue pro/lems might you anticipate they have in their
supply chain6 5hat might remedy these pro/lems6
!ypical problems in supply chains arise from unforeseeable events. +n a plant nursery-
variations in the weather- growing season- plant diseases- crop output would be uncertainties.
;ther problems might be interstate regulations governing plants allowed in different states-
and making sure plants survive and are healthy during transportation. +t would be very
important to have up,to,date forecasting of the weather or growing seasons that could
anticipate possible problems- and analyze and determine the best transportation routes.
i!!iculty: (ard #e!erence: pp$ %)10%)-
Evaluation in terms of appraise, assess
*.. (Evaluation)
8ou have /een hired /y Croydon <isiting =urse 9ervices7 whose /usiness processes are
all manual7 paper-/ased processes$ (ow might a C#" system /ene!it them6
1 C2M system that includes patients$ health records would allow any nurse to take over if
another needed replacement. 1ssuming that the nurses had access via laptops or 7/1s to the
system- a new nurse would have instant access to the patients$ needs. !he C2M might also be
able to record which types of treatments or products customers were most interested in or
gave the greatest benefit to customers- and help anticipate needs. 1dditionally- with C2M
capabilities- products needed by the nursing service would be more easily anticipated-
ordered- and delivered. #ince the employees work in the field- or away from a central office-
+nternet,based communications might provide tools for reviewing employee performance.
(Evaluation in terms of appraise, assess)
i!!iculty: "edium #e!erence: pp$ %)-0%.)
*&'