Information Systems Chapter 11 Quiz

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Questions and Answers

What is one of the main purposes of data consolidation using a data warehouse?

To enable a 360-degree view of a customer (correct)

To eliminate collaborative efforts

To increase operational costs

To decrease data accuracy

Operational CRM systems primarily support which type of business processes?

Financial processes

Front-office processes (correct)

Logistical processes

Back-office processes

Which is NOT a sub-system included in Sales Force Automation (SFA)?

Sales forecasting system

Sales lead tracking system

Contact management system

Industry analysis system (correct)

Which of the following describes the function of customer service and support systems?

To automate service requests and complaints Signup and view all the answers

What is cross selling in the context of marketing?

Marketing additional related products based on a previous purchase Signup and view all the answers

Which statement accurately reflects what analytical CRM systems focus on?

Analyzing customer data for insights Signup and view all the answers

Which of the following is an example of a customer-facing application in a CRM system?

Customer interaction center applications Signup and view all the answers

What is the primary purpose of Customer Relationship Management (CRM)?

To treat customers differently based on their needs and value. Signup and view all the answers

What does up selling aim to achieve?

Encouraging the purchase of higher-value alternatives Signup and view all the answers

Which of the following describes data consolidation in CRM?

Gathering data from various sources into one location. Signup and view all the answers

What is customer churn in the context of CRM?

The loss of customers over a specific period. Signup and view all the answers

Which of the following is NOT a type of CRM system?

Real-time social media systems. Signup and view all the answers

What is one advantage of mobile CRM systems?

Enhanced access to customer data on the go. Signup and view all the answers

What is the primary purpose of building inventories in supply chain management?

To ensure sufficient supply for future demand Signup and view all the answers

What defines the concept of customer intimacy in CRM?

Building close relationships with customers to understand their preferences. Signup and view all the answers

Which inventory system focuses on ordering and producing materials only as needed?

Just-in-time (JIT) inventory system Signup and view all the answers

What type of technology is commonly used to improve supply chain management through communication?

Electronic Data Interchange (EDI) Signup and view all the answers

Which term refers to the total revenue generated from a customer over the entirety of their relationship with a business?

Lifetime value. Signup and view all the answers

Which of the following describes a vendor-managed inventory (VMI) strategy?

Suppliers take responsibility for managing and replenishing inventory Signup and view all the answers

Which component is a part of supply chain management?

Information technology support. Signup and view all the answers

Which type of extranet is designed for collaboration among business partners?

Joint ventures and business partnerships Signup and view all the answers

What is a characteristic of procurement portals?

Focused on a single buyer and numerous suppliers Signup and view all the answers

What emerging technologies are expected to support supply chain management in the future?

Robotics and autonomous vehicles Signup and view all the answers

What is one major benefit of operational CRM systems?

A 360-degree view of each customer Signup and view all the answers

What is one function of an extranet?

Using virtual private network (VPN) technology for secure communications Signup and view all the answers

Which of the following is a characteristic of customer-touching applications?

Access to personalized services and products Signup and view all the answers

What purpose does analytical CRM primarily serve?

Analyzing customer data for targeted marketing campaigns Signup and view all the answers

Which type of CRM is specifically designed for mobile devices?

Mobile CRM Signup and view all the answers

What aspect is NOT included in the functionalities of operational CRM systems?

Cloud-based storage solutions Signup and view all the answers

What is a key feature of analytical CRM aside from marketing campaign design?

Conducting customer profitability analysis Signup and view all the answers

Which type of CRM integrates social media into its functionality?

Social CRM Signup and view all the answers

What is NOT a purpose of supply chain visibility?

Enhancing customer relationship management Signup and view all the answers

What does the upstream stage of a supply chain involve?

Sourcing of raw materials Signup and view all the answers

Which of the following represents Tier 1 suppliers in a supply chain?

Integrated components Signup and view all the answers

What is the primary difference between the push model and the pull model in supply chain management?

Push model is based on forecasted demand; pull model is based on actual orders. Signup and view all the answers

Which component is NOT part of the five basic components of supply chain management?

Store Signup and view all the answers

What is one function of Interorganizational Information Systems (IOS) in supply chain management?

Reduce costs of routine business transactions Signup and view all the answers

What is a key challenge in managing supply chains that arises from demand fluctuations?

Bullwhip effect Signup and view all the answers

Which of the following flows is NOT part of the supply chain?

Energy flows Signup and view all the answers

Which issue is NOT mentioned as a source of problems along the supply chain?

Production costs Signup and view all the answers

Study Notes

Introduction to Information Systems - Chapter 11

Chapter 11 focuses on Customer Relationship Management (CRM) and Supply Chain Management (SCM)
Learning objectives cover identifying CRM and collaborative CRM functions, describing business use of operational CRM components, explaining advantages/disadvantages of various CRM systems (mobile, on-demand, open-source, social, real-time), describing supply chain components and flows, identifying strategies for supply chain challenges, explaining supply chain management technologies, and defining customer relationship management.

Customer Relationship Management (CRM)

CRM aims to treat customers differently based on their needs and value to the company.
Customer intimacy is crucial, emphasizing a deep understanding of individual customer needs.
Lifetime value represents the total revenue a customer generates for a business.
Customer churn is the rate at which customers leave.
CRM strategies vary from low-end to high-end systems.

Customer Relationship Management Process

The process starts with the target population of potential customers.
It involves identifying loyal, high-value, and low-value repeat customers.
Lost customers (churn) are also part of the process.
Customer Relationship Management (CRM) involves managing customer acquisition and retention, customer support, and segmentation.

Customer Touchpoints

Customer touchpoints are numerous and diverse interactions businesses have with customers.
Touchpoints include call centers, service centers, e-mail, physical stores, world wide web, smart phones, computers, etc.

Data Consolidation

Data consolidation, using a data warehouse, enables a 360-degree view of customers.
This 360-degree view helps in collaborative CRM and managing customer identity.

Components of a CRM System

Operational CRM systems support front-office processes (sales, marketing, service).
Analytical CRM systems analyze customer data for various purposes, including targeted marketing campaigns, increasing customer acquisition, cross-selling, and upselling, product and service decisions, and financial forecasting and customer profitability analysis.

Operational CRM Systems

Operational CRM systems support front-office business processes, interacting directly with customers.
Two major components:
- Customer-facing applications enable sales, field service, and interaction center representatives to interact directly with customers.
- Customer-touching or e-CRM applications enable customers to interact directly with the organization's technologies (e.g., searching, personalized webpages).

Customer-Facing Applications

Customer service and support (call centers).
Salesforce automation (SFA) for sales activities (contact management, sales tracking, forecasts, product knowledge, configurators).
Marketing (data mining for customer profiles, cross-selling, upselling, bundling).

Customer-Touching Applications (e-CRM)

Customer-touching applications, often called e-CRM, allow customers to interact directly with online technologies and applications.
These applications focus on helping customers help themselves (e.g., search and comparison, technical information, personalized products, personalized webpages, FAQs, email and automatic responses).

Other Types of CRM Systems

On-Demand CRM systems are cloud-based.
Mobile CRM systems are designed for mobile devices.
Open-source CRM systems are free.
Social CRM systems integrate social media.
Real-time CRM systems provide real-time tracking/instant updates.

Supply Chains

Supply chains involve the flows among suppliers (tier 3, 2, 1), a manufacturer, distributors or wholesalers, retailers, and customers.
Flow types include upstream (orders, information, payments, returns) and downstream (products, services, information).

Supply Chain Management

Five basic components of SCM: Plan, Source, Make, Deliver, Return (PSMDR).
The Push model creates products based on predicted/high levels of customer demand.
The Pull model starts production only after receiving an order.
Supply chain problems come from uncertainties (demand forecasting, delivery, coordination).

Solutions to Supply Chain Problems

Vertical Integration: stockpiling goods or raw materials for high-demand scenarios.
Just-in-time (JIT) inventory systems (materials/products only ordered/produced when needed).
Vendor-managed inventory (VMI): supplier takes responsibility for managing/replenishing inventory at the customer's (retailer/distributor) location.

Information Technology Support for Supply Chain Management

Technologies like Electronic Data Interchange (EDI), XML-based web services, extranets, portals, and exchanges.
Emerging technologies include robotics, drones, autonomous vehicles (driverless), and three-dimensional (3D) printing are relevant for supply chains.

Extranets

Extranets use virtual private network (VPN) technology to connect companies with their customers, dealers, suppliers, and other business partners.

Portals and Exchanges

Procurement portals enable a single buyer to interact with multiple suppliers.
Distribution portals support multiple buyers interacting with a single supplier.

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Description

This quiz focuses on the critical topics of Customer Relationship Management (CRM) and Supply Chain Management (SCM) from Chapter 11 of the Introduction to Information Systems. You'll explore the various CRM functions, technologies, and strategies for effective supply chain management. Test your understanding of how businesses leverage these systems to enhance customer relationships and streamline operations.