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?

<p>To automate service requests and complaints (C)</p> Signup and view all the answers

What is cross selling in the context of marketing?

<p>Marketing additional related products based on a previous purchase (B)</p> Signup and view all the answers

Which statement accurately reflects what analytical CRM systems focus on?

<p>Analyzing customer data for insights (C)</p> Signup and view all the answers

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

<p>Customer interaction center applications (B)</p> Signup and view all the answers

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

<p>To treat customers differently based on their needs and value. (A)</p> Signup and view all the answers

What does up selling aim to achieve?

<p>Encouraging the purchase of higher-value alternatives (C)</p> Signup and view all the answers

Which of the following describes data consolidation in CRM?

<p>Gathering data from various sources into one location. (A)</p> Signup and view all the answers

What is customer churn in the context of CRM?

<p>The loss of customers over a specific period. (B)</p> Signup and view all the answers

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

<p>Real-time social media systems. (D)</p> Signup and view all the answers

What is one advantage of mobile CRM systems?

<p>Enhanced access to customer data on the go. (D)</p> Signup and view all the answers

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

<p>To ensure sufficient supply for future demand (D)</p> Signup and view all the answers

What defines the concept of customer intimacy in CRM?

<p>Building close relationships with customers to understand their preferences. (A)</p> Signup and view all the answers

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

<p>Just-in-time (JIT) inventory system (A)</p> Signup and view all the answers

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

<p>Electronic Data Interchange (EDI) (A)</p> 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?

<p>Lifetime value. (A)</p> Signup and view all the answers

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

<p>Suppliers take responsibility for managing and replenishing inventory (A)</p> Signup and view all the answers

Which component is a part of supply chain management?

<p>Information technology support. (C)</p> Signup and view all the answers

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

<p>Joint ventures and business partnerships (C)</p> Signup and view all the answers

What is a characteristic of procurement portals?

<p>Focused on a single buyer and numerous suppliers (C)</p> Signup and view all the answers

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

<p>Robotics and autonomous vehicles (A)</p> Signup and view all the answers

What is one major benefit of operational CRM systems?

<p>A 360-degree view of each customer (B)</p> Signup and view all the answers

What is one function of an extranet?

<p>Using virtual private network (VPN) technology for secure communications (C)</p> Signup and view all the answers

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

<p>Access to personalized services and products (D)</p> Signup and view all the answers

What purpose does analytical CRM primarily serve?

<p>Analyzing customer data for targeted marketing campaigns (B)</p> Signup and view all the answers

Which type of CRM is specifically designed for mobile devices?

<p>Mobile CRM (B)</p> Signup and view all the answers

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

<p>Cloud-based storage solutions (B)</p> Signup and view all the answers

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

<p>Conducting customer profitability analysis (C)</p> Signup and view all the answers

Which type of CRM integrates social media into its functionality?

<p>Social CRM (B)</p> Signup and view all the answers

What is NOT a purpose of supply chain visibility?

<p>Enhancing customer relationship management (A)</p> Signup and view all the answers

What does the upstream stage of a supply chain involve?

<p>Sourcing of raw materials (C)</p> Signup and view all the answers

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

<p>Integrated components (C)</p> Signup and view all the answers

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

<p>Push model is based on forecasted demand; pull model is based on actual orders. (B)</p> Signup and view all the answers

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

<p>Store (C)</p> Signup and view all the answers

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

<p>Reduce costs of routine business transactions (C)</p> Signup and view all the answers

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

<p>Bullwhip effect (B)</p> Signup and view all the answers

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

<p>Energy flows (A)</p> Signup and view all the answers

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

<p>Production costs (A)</p> Signup and view all the answers

Flashcards

Customer Relationship Management (CRM)

Treating customers differently based on needs and value to the company. This aims for customer intimacy and maximizing lifetime value.

Data Consolidation in CRM

Gathering customer data from various sources and storing it in one place; important for analysis and personalized service.

Customer Touch Points

Diverse interactions a business has with its customers (e.g., phone calls, website visits).

Customer Lifetime Value

Total revenue a customer generates for a business over their relationship.

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Customer Churn

The rate at which customers stop doing business with a company.

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CRM Strategy VS CRM Systems

The overall plan for treating customers (strategy) separate from specific software tools (systems).

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Operational CRM

The part of CRM dealing with everyday customer interactions.

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Supply Chain

The network of all parties involved in fulfilling a customer order.

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Data Consolidation

Using a data warehouse to combine data from multiple sources to give a complete view of customers.

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CRM system

A system that manages customer interactions, divided into operational and analytical parts.

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Customer-facing applications

Parts of a CRM that let sales, service, and support teams interact with customers directly.

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Customer service and support

CRM systems component for handling customer requests and complaints.

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Sales Force Automation (SFA)

CRM component that helps sales teams manage contacts, leads, and forecasting.

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Cross-selling

Selling related products to a customer based on previous purchases.

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Up-selling

Encouraging a customer to buy a higher value product or service.

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Customer Touching Application

Customer interacts directly with online technologies.

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Analytical CRM

Analyzes customer data for marketing and business decisions.

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Supply Chain Visibility

Tracking inventory and goods in the supply chain.

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Inventory Velocity

The speed at which inventory moves through the supply chain.

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On-demand CRM

Cloud-based CRM, accessible over the internet.

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Mobile CRM

CRM systems designed to run on mobile devices.

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Supply Chain Stages

The distinct phases of a supply chain: upstream (sourcing raw materials), internal (production), and downstream (distribution).

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Reverse Logistics

The backward movement of goods and materials within a supply chain, like returning products, recycling, or refurbishing.

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Supply Chain Tiers

Levels of suppliers in a chain, with Tier 3 providing basic materials, Tier 2 creating sub-assemblies, and Tier 1 delivering integrated components.

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Supply Chain Flows

Three primary flows in a supply chain: materials (raw materials, finished goods), information (orders, updates), and financial (payments, invoices).

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Supply Chain Management (SCM)

The coordination and optimization of activities in a supply chain to efficiently deliver goods and services.

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PSMDR - SCM Components

The five key components of SCM: Plan, Source, Make, Deliver, and Return.

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Push vs Pull Model

Two main production methods: Push (make-to-stock) produces goods based on predictions, Pull (make-to-order) produces only after customer orders.

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Bullwhip Effect

A phenomenon where small demand fluctuations downstream in a supply chain amplify into larger fluctuations upstream, leading to excess inventory or stockouts.

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Vertical Integration

A strategy where a company owns and controls multiple stages of its supply chain, from raw materials to manufacturing and distribution. It reduces reliance on external suppliers.

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Just-in-Time (JIT) Inventory

A system where materials and goods are ordered and produced only when needed, minimizing inventory holding costs and waste.

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Vendor-Managed Inventory (VMI)

A process where the supplier takes responsibility for managing and replenishing inventory at the customer's location, reducing the customer's workload.

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Electronic Data Interchange (EDI)

A standardized system for exchanging business documents electronically, streamlining communication and transactions between companies.

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Extranet

A private network that allows authorized external users to access a company's information systems, facilitating collaboration with partners and suppliers.

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Procurement Portal

A web-based platform that connects a single buyer with multiple suppliers, simplifying sourcing and purchasing processes.

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Distribution Portal

A platform that connects multiple buyers with a single supplier, streamlining distribution and order fulfillment.

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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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Introduction to Information Systems Chapter 11 PDF

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.

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