True or False:

Enterprise systems include analytical tools.

Answer: TRUE

An enterprise system can help reduce redundant business processes.

Answer: TRUE

Extensive customization of enterprise software may degrade system performance.

Answer: TRUE

Supply chain management systems are a type of enterprise system.

Answer: TRUE

The upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.

Answer: FALSE

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
Answer: TRUE

Safety stock acts as a buffer for the lack of flexibility in the supply chain.

Answer: TRUE

The bullwhip effect describes consistency and continuity in demand for a product as it passes
from one entity to the next across the supply chain.
Answer: FALSE

Supply chain execution systems enable the firm to generate demand forecasts for a product and
to develop sourcing and manufacturing plans for that product.
Answer: FALSE

Before the pre-Internet environment, supply chain coordination was hampered by the difficulties
of making information flow smoothly among different internal supply chain processes.
Answer: TRUE

Inefficiencies in a supply chain are primarily caused by inaccurate or untimely information.

Answer: TRUE
In a push-based model of SCM systems, actual customer orders or purchases trigger events in the
supply chain.
Answer: FALSE

In a pull-based model of SCM systems, production master schedules are based on forecasts of
demand for products.
Answer: FALSE

Walmart is an example of a push-based model.

Answer: FALSE

Total supply chain costs in some industries approach 75 percent of the total operating budget.
Answer: TRUE

All CRM packages contain modules for PRM and ERM.

Answer: FALSE

Major CRM application software vendors include Oracle, SAP, and Salesforce.com.

Answer: TRUE

Cross-selling is the marketing of complementary products to customers.

Answer: TRUE

CRM software can help organizations identify high-value customers for preferential treatments.
Answer: TRUE

Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
Answer: TRUE

Churn rate is an important indicator of the growth or decline of a company's customer base.
Answer: TRUE

Enterprise systems require fundamental changes in the way the business operates.

Answer: TRUE

Enterprise applications introduce switching costs.

Answer: TRUE
Enterprise applications are based on organization-wide definitions of data.

Answer: TRUE

SCM systems require multiple organizations to share information and business processes.
Answer: TRUE

E-commerce refers to the use of any networking technologies to transact business.

Answer: FALSE

Retail consumer e-commerce is growing at double-digit rates.

Answer: TRUE

The Internet reduces information asymmetry.

Answer: TRUE

All previous mass media in modern history, including the printing press, use a broadcast model
where content is created in a central location by experts.
Answer: TRUE

Disintermediation provides major benefits to the distributor.

Answer: FALSE

In general, for digital goods, the marginal cost of producing another unit is about zero.

Answer: TRUE

Traditional online marketing, such as display ads, still constitutes the majority of all online
marketing.
Answer: TRUE

Information asymmetry exists when there is more information about one product than there is
about a similar product.
Answer: FALSE

Price transparency refers to the ability of consumers to discover what merchants actually pay for
products.
Answer: FALSE

Switching costs are the merchants' costs of changing prices.

Answer: FALSE
Uber uses a form of dynamic pricing.

Answer: TRUE

eBay is an example of the market creator business model.

Answer: TRUE

MSN is an example of the portal business model.

Answer: TRUE

Web personalization is used primarily as a marketing tool.

Answer: TRUE

Podcasting allows subscribers to listen to live, streaming radio and other audio content.

Answer: FALSE

In the affiliate revenue model, firms derive revenue by selling information or services through
partner e-commerce sites.
Answer: FALSE

Rich media advertisements are a sales-oriented marketing format.

Answer: FALSE

Behavioral targeting occurs at two levels: individual websites and through ISPs.

Answer: FALSE

Advertising networks track a user's behavior at thousands of websites.

Answer: TRUE

Viral marketing is like traditional word-of-mouth marketing except that it is spread via online
communities.
Answer: TRUE

The behavioral targeting of ads results in consumers responding ten times more frequently than
when delivered ads randomly.
Answer: TRUE
EDI standards that take advantage of network communications have yet to be fully implemented
at the industry level.
Answer: FALSE

Net marketplaces may either support contractual purchasing based on long-term relationships
with designated suppliers or short-term spot purchasing.
Answer: TRUE

Exchanges have become one of the most popular types of Net marketplace because they
encourage competitive bidding that drives prices down.
Answer: FALSE

Indirect goods are not involved firsthand in the production process.

Answer: TRUE

While systems such as KWS can manage semistructured and unstructured information,
enterprise-wide content management systems are designed to manage a firm's structured
information.
Answer: FALSE

Knowledge is "sticky" and not easily moved.

Answer: TRUE

For a firm, organizational resources are unnecessary to transform data into knowledge.

Answer: FALSE

Expertise is thought to be the collective and individual experience of applying knowledge to the
solution of problems.
Answer: FALSE

Document management systems are essentially large databases.

Answer: TRUE

Both structured and unstructured documents can contain knowledge.

Answer: TRUE

Structured knowledge is explicit knowledge that exists in formal documents and formal rules.
Answer: TRUE
Semistructured information is all the knowledge in a firm that resides in the heads of experienced
employees.
Answer: FALSE

3-D printers can produce fully functioning components, such as working batteries and LEDs.
Answer: TRUE

CAD and VRML are both types of KWS.

Answer: TRUE

Knowledge workers include all of a company's workers who are tasked with managing or
creating knowledge, from top-level scientists to clerical and data workers.
Answer: FALSE

VRML requires the use of a powerful server as well as large amounts of bandwidth.

Answer: FALSE

Today's 3-D printers can create objects out of human cartilage.

Answer: TRUE

The yellow first-down markers shown on televised football games are examples of AR.

Answer: TRUE

Expert systems are the primary tools used for knowledge discovery.

Answer: FALSE

Expert systems capture the knowledge of skilled employees in the form of a set of rules in a
software system that can be used by others in the organization.
Answer: TRUE

Expert systems are typically used in business in discrete, highly structured decision-making
situations.
Answer: TRUE

Expert systems work by applying a set of AND/OR rules against a knowledge base, both of
which are extracted from human experts.
Answer: FALSE

CBR is not well-suited for diagnostic systems in medicine.

Answer: FALSE
Fuzzy logic can describe a particular phenomenon or process linguistically and then represent
that description in a small number of flexible rules.
Answer: TRUE

Fuzzy logic systems "learn" patterns from large quantities of data by sifting through data,
searching for relationships, building models, and correcting over and over again the model's own
mistakes.
Answer: FALSE

Because neural network applications cannot always explain why they arrive at a particular
solution, they are not well suited for use in the medical profession.
Answer: FALSE

Hybrid AI applications are being implemented in home appliances, such as washing machines.
Answer: TRUE

Intelligent agents can discover underlying patterns, categories, and behaviors in large data sets.
Answer: FALSE

Today's AI systems are about to come up with new and novel solutions to problems.

Answer: FALSE