1

EBTM 337 Final Exam Study Guide

1. Chapter 6
a. The Business Benefits of High-Quality Information
i. Information Granularity
1. Refers to the extent of detail within the information
2. Fine and detailed or coarse and abstract
ii. Information Type: Transactional and analytical
1. Transactual information
a. Encompasses all of the information contained within a
single business process or unit of work, and its primary
purpose is to support the performing of daily operational
tasks
2. Analytical information
a. Encompasses all organizational information, and its
primary purpose is to support the performing of managerial
analysis tasks
iii. Information Timeliness
1. Real-time information
a. Immediate, up-to-date information
2. Real-time system
a. Provides real-time information in response to requests
iv. Information Quality
1. Business decisions are only as good as the quality of the
information used to make the decisions
2. You never want to find yourself using technology to help you make
a bad decision faster
3. Data inconsistency
a. Occurs when the same data element has different values
4. Data integrity system
a. Occur when a system produces incorrect, inconsistent, or
duplicate data
5. Characteristics of High-Quality information
a. Accurate
i. Is there an incorrect value in the information?
b. Complete
i. Is a value missing from the information?
c. Consistent
i. Is aggregate or summary information in agreement
with detailed information?
d. Timely
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

i. Is the information current with respect to business

needs?
e. Unique
i. Is each transaction and event represented only once
in the information?
6. The four primary sources of low-quality information
a. Customers intentionally enter inaccurate information to
protect their privacy
b. Different entry standards and formats
c. Operators enter abbreviated or erroneous information by
accident or to save time
d. Third party and external information contains
inconsistencies, inaccuracies, and errors
7. Potential business effects resulting from low-quality information
a. Inability to accurately track customers
b. Difficulty identifying valuable customers
c. Inability to identify selling opportunities
d. Marketing to nonexistent customers
e. Difficulty tracking revenue
f. Inability to build strong customer relationships
v. Information Governance
1. Data governance
a. Refers to the overall management of the availability,
usability, integrity, and security of company data
b. Storing Information in a Relational Database-Management System
i. Database
1. Maintains information about various types of objects (inventory),
events (transactions), people (employees), and places (warehouses)
ii. Database management system (DBMS)
1. Allows users to create, read, update and delete in a relational
database
2. Does this while controlling access and security
iii. Query-by-example (QBE) tool
1. Helps users graphically design the answer to a question against a
database
iv. Structures query language (SQL)
1. Asks users to write lines of code to answer questions against a
database
v. Data element
1. The smallest or basic unit of information
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

vi. Data model

1. Logical data structures that detail elements using graphics or
pictures
vii. Metadata
1. Provides details about data
viii. Data dictionary
1. Complies all of the metadata about the data elements in the data
model
ix. Relational database model
1. Stores information into the form of logically related twodimensional tables
x. Relational database management system
1. Allows users to create, read, update, and delete data in relational
database
xi. Storing Data Elements in Entities and Attributes
1. Entity
a. A person, place, thing, transaction, or event about which
information is stored
i. Rows in a table contain entities
2. Attribute (field, column)
a. The data elements associated with an entity
i. Columns in each table contain the attributes
b. Record
3. A collection of related data elements
xii. Creating Relationships Through Keys
1. Primary key
a. A field (or group of fields) that uniquely identify a given
entity in a table
2. Foreign key
a. A primary key of one table that appears an attribute in
another table and acts to provide a logical relationship
among the two tables
c. Using a Relational Database for Business Advantages
i. Increased Flexibility
1. Handle changes quickly and easily
2. Provide users with different views
3. Have only one physical view
4. Physical view
a. Deals with the physical storage of information on a storage
device
5. Have multiple logical views
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

6. Logical view
a. Focuses on how individual users logically access
information to meet their own particular business needs
ii. Increased Scalability and Performance
1. Scalable to handle the massive volumes of information and large
number of users expected
2. Perform quickly under heavy use
iii. Reduced Data Redundancy
1. Data redundancy
a. The duplication of data, or the storage of the same data in
multiple places
iv. Increased Information Integrity (Quality)
1. Information integrity
a. Measures the quality of information
2. Integrity constraint
a. Rules that help ensure the quality of information
3. Relational integrity constraint
a. Rules that enforce basic and fundamental informationbased constraints
4. Business-Critical integrity constraint
a. Enforce business rules vital to an organizations success
and often require more insight and knowledge that
relational integrity constraints
v. Increased Information Security
1. Information is an organizational asset and must be protected
2. Databases offer several security features
3. Passwords
4. Access level
a. Determines who has access to the different types of
information
5. Access control
a. Determines type of user access, such as read-only access
d. Driving Websites With Data
i. Data driven websites
1. An interactive website kept constantly updated and relevant to the
needs of its customers using a database
ii. Easy to manage content
iii. Easy to store large amount of data
iv. Easy to eliminate human errors
e. The Business Benefit of Data Warehousing
i. Not appropriate for business analysis
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

1. Inconsistent data definitions

a. Different departments have different ways of recording
things
b. Sometimes data doesnt match
2. Lack of data standards
a. Departments differ in granularities, formats, and levels
3. Poor data quality
a. Often incorrect or incomplete
b. Cannot rely on data to make decisions
4. Inadequate data usefulness
a. Users can not get the data they need
5. Ineffective direct data access
a. Doesnt allow users direct access
b. Need answers in a timely manner
ii. Data warehouse
1. A logical collection of information, gathered from many different
operational databases, that supports business analysis activities and
decision-making skills
2. Primary purpose is to aggregate information throughout an
organization into a single repository for decision-making purposes
f. Performing Business Analysis With Data Marts
i. Extraction, transformation, and loading (ETL)
1. A process that extracts information form internal and external
databases, transforms the information using a common set of
enterprise definition, and loads the information into a data
warehouse
ii. Data mart
1. Contains a subset of data warehouse information
iii. Multidimensional Analysis
1. Databases contain information in a series to two-dimensional
tables
2. In a data warehouse and data mart, information is
multidimensional
3. It contains layers of columns and rows
4. Dimension
a. A particular attribute of information
5. Cube
a. Common term for the representation of multidimensional
information
iv. Information Cleansing or Scrubbing
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

1. An organization must maintain high-quality data in the data

warehouse
2. This is a process that weeds out and fixes or discards inconsistent,
incorrect, or incomplete information
g. Uncovering Trends and Patterns With Data Mining
i. Data mining
1. The process of analyzing data to extract information not offered by
the raw data alone
ii. Data mining tools
1. Use a variety of techniques to find patterns and relationships in
large volumes of information
2. Classification
3. Estimation
4. Affinity grouping
5. Clustering
iii. Structured data
1. Data already in a database or spreadsheet
iv. Unstructured data
1. Data does not exist in a fixed location and can include text
documents, PDFs, voice messages, and emails
v. Text mining
1. Analyzes unstructured data to find trends and patterns in words and
sentences
vi. Web mining
1. Analyses unstructured data associated with websites to identify
consumer behavior and website navigation
vii. Cluster Analysis
1. Technique used to divide an information set into mutually
exclusive groups such that members of each groups are as close to
one another
viii. Association Detection
1. Degree to which variables are related and nature and frequency of
these relationships
ix. Statistical Analysis
1. Performs functions such as correlation, calculation and variance
analysis
2. Time-series information
a. Time-stamped information collected at a particular
frequency
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

3. Forecasts
a. Predictions based on time-series information
h. Supporting Decisions With Business Intelligence
i. The Problem: Data Rich, Information Poor
1. Amount of fata generated is doubling every year
ii. The Solution: Business Intelligence
1. Improving the quality of business decisions has a direct impact on
costs and revenue
2. BI enables business users to receive data for analysis that is
a. Reliable
b. Consistent
c. Understandable
d. Easy manipulated
2. Chapter 8
a. Customer Relationship Management (CRM)
i. Involves managing all aspects of a customers relationship with an
organization to increase customer loyalty and retention and an
organizations profitability
b. The Benefits of CRM
i. Recency, Frequency, and Monetary value (RFM)
1. How recently a customer purchased items
2. How frequently a customer purchased items
3. The monetary value of each customer
ii. Evolution of CRM
1. CRM reporting technology
a. Help organizations identify their customers across other
applications
2. CRM analysis technologies
a. Help organization segment their customers into categories
such as best and worst customers
3. CRM predicting technologies
a. Help organizations make predictions regarding customer
behavior such as which customers are at risk of leaving
iii. Operational and Analytical CRM
1. Operational CRM
a. Supports traditional transactional processing for day-to-day
front-office operations or systems that deal directly with the
customers
2. Analytical CRM

TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

a. Supports back-office operations and strategic analysis and

includes all systems that do not deal directly with
customers
iv. Marketing and Operational CRM
1. List generator
a. Compile customer information from a variety of sources
and segment it for different marketing campaigns
2. Campaign management system
a. Guide users through marketing campaigns by performing
such tasks as campaign definition, planning, scheduling,
segmentation, and success analysis
3. Cross-selling and up-selling
a. Cross-selling
i. Selling additional products or services to an existing
customer
b. Up-selling
i. Increasing the value of the sale
v. Sales and Operational CRM
1. Sales force automation (SFA)
a. A system that automatically tracks all of the steps in the
sales process
2. Sales management CRM system
a. Automate each phase of the sales process, helping
individual sales representatives coordinate and organize all
their accounts
3. Contact management CRM system
a. Maintains customer contact information and identifies
prospective customers for future sales, using tools such as
organizational charts, detailed customer notes, and
supplemental sales information
4. Opportunity management CRM system
a. Targets sales opportunities by finding new customers or
companies for future sales
vi. Customer Service and Operational CRM
1. Contact center
a. Where customer service representatives answer customer
inquiries and solve problems
2. Web-based self-service system
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

a. Allow customers to use the web to find answers to their

questions or solutions to their problems
3. Call scripting system
a. Gather product details and issue resolution information that
can be automatically gathered into a script for the
representatives to read to the customer
vii. Analytical CRM
1. Website personalization
a. Occurs when a website has stored enough data about a
persons likes and dislikes to fashion offers more likely to
appeal to that person
c. The Challenges of CRM
i. The customer is always right and now has more power than ever thanks to
the internet
d. The Future of CRM
i. Supplier relationship management (SRM)
1. Focuses on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects
ii. Partner relationship management (PRM)
1. Discovers optimal sales channels by selecting the right partners
and identifying mutual customers
iii. Employee relationship management (ERM)
1. Provides web-based self-service tools that streamline and automate
the human resource department
e. Enterprise Resource Planning (ERP)
i. Integrates all department and functions throughout an organization into a
single IT system so that employees can make enterprisewide decisions by
viewing enterprisewide information on all business operations
ii. Reasons ERP systems are powerful tools
1. ERP is a logical solution to incompatible applications
2. ERP addresses global information sharing and reporting
3. ERP avoids the pain and expense of fixing legacy systems
f. The Benefits of ERP
i. Core ERP component
1. Traditional components included in most ERP systems and they
primarily focus on operations
2. Accounting and finance ERP components
a. Manages accounting data and financial processes within the
enterprise with functions such as general ledger, accounts
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

10

payable, accounts receivable, budgeting, and asset

management
3. Production and materials management ERP components
a. Handles the various aspects of production planning and
execution such as demand forecasting, production
scheduling, job cost accounting, and quality control
4. Human resources ERP components
a. Tracks employee information including payroll, benefits,
compensation, and performance assessment and assumes
compliance with the legal requirements of multiple
jurisdictions and tax authorities
ii. Extended ERP component
1. Extra components that meet the organizational needs covered by
2.
3.
4.
5.

the core components and primarily focus on external operations

Business intelligence
Customer relationship management
Supply chain management
Ebusiness components
a. Elogisitcs
i. Manages the transportation and storage of goods
b. Eprocurement
i. Is the business-to-business online purchase and sale

of supplies and services

iii. Measuring ERP success
1. Balances scorecard
a. Enables organizations to clarify their vison and strategy and
translate them into action
b. Views organization from four perspectives
i. Learning and growth
ii. Internal business process
iii. Customer
iv. Financial
g. The Challenges of ERP
i. Contain multiple complex components that are not only expensive to
purchase, but also expensive to implement
ii. Costs include
1. Software
2. Consulting fees
3. Hardware expenses
4. Training fees
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

11

3. Chapter 9
a. Developing Software
i. Software that is built correctly can transform as the organization and its
business transforms
ii. Software that effectively meets employee needs will help an organization
become more productive and enhance decision making
iii. Software that does not meet employee needs may have a damaging effect
on productivity and can even cause business to fail
b. The Systems Development Life Cycle (SDLC)
i. The overall process for developing information systems from planning and
analysis through implementation and maintenance
ii. Seven phases
1. Planning
a. Establishes a high-level plan of the intended project and
determines project goals
2. Analysis
a. Involves analyzing end-user business requirements and
refining project goals into defined functions an operations
of the intended system
b. Business requirement
i. Specific business request the system must meet to
be successful
3. Design
a. Establishes descriptions of the desired features and
operations of the system including screen layouts, business
rule, process diagrams, pseudo code, and other
documentation
4. Development
a. Involves taking all of the detailed design documents from
the design phase and transforming them into the actual
system
5. Testing
a. Involves bringing all the project pieces together into a
special testing environment to eliminate errors and bugs,
and verify that the system meets all of the business
6.

requirements defined in the analysis phase

Implementation

TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

12

a. Involves placing the system into production so users can

begin to perform actual operations with it
7. Maintenance
a. Involves performing changes, corrections, additions, and
upgrades to ensure the system continues to meet its
business goals
c. Traditional Software Development Methodology: The Waterfall
i. Methodology
1. A set of policies, procedures, standards, processes, practices, tools,
techniques, and tasks that people apply to technical and
management challenges
ii. Waterfall methodology
1. A sequence of phases in which the output of each phase becomes
the input for the net
d. Agile Software Development Methodologies
i. Iterative development
1. Consists of a series of tiny projects
ii. Agile methodology
1. Aims for customer satisfaction through early and continuous
delivery of useful software components delivered by an iterative
process using the bare minimum requirements
iii. Rapid Application Development (RAD) Methodology
1. Emphasizes extensive user involvement in the rapid and
evolutionary construction of working prototypes of a system to
accelerate the systems development process
2. Prototype
a. A smaller-scale representation or working model of the
users requirements or a proposed design for an information
system
b. Essential part of the analysis phase when using RAD
methodology
iv. Extreme Programming Methodology
1. Breaks a project into tiny phases, and developers cannot continue
on to the next phase until the first phase is complete
v. Rational Unified Process (RUP) Methodology
1. Provides a framework for breaking down the development of
software into four gates
2. Gate one: inception
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

13

a. This phase ensures all stakeholders have a shared

understanding of the proposed system and what it will do
3. Gate two: elaboration
a. This phase expands on the agreed-upon details of the
system, including the ability to provide an architecture to
support and build it
4. Gate three: construction
a. This phase includes building and developing the product
5. Fate four: transition
a. Primary questions answered in this phase address
ownership of the system and training of key personnel
vi. Scrum Methodology
1. Uses small teams to produce small pieces of deliverable software
using sprints, or 30-day intervals, to achieve an appointed goal
2. Each day ends or begins with a stand-up meeting to monitor and
control the development effort
e. Developing Successful Software
i. Unclear or Missing Business Requirements
ii. Skipping SDLC phases
iii. Failure to manage project scope
iv. Failure to manage project team
v. Changing technology
f. Managing Software Development Projects
i. Project management institute (PMI)
1. Develops procedures and concepts necessary to support the
profession of project management
ii. Project
1. Temporary activity a company undertakes to create a unique
product, service, or result
iii. Project management
1. The application of knowledge, skills, tools, and techniques to
project activities to meet project requirements
iv. Project manager
1. An individual who is an expert in project planning and
management
v. Project deliverables
1. Any measurable, tangible, verifiable outcome, result, or item that
is produced to complete a project or part of a project
vi. Project milestones
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

14

1. Represent key dates when a certain group of activities must be

performed
vii. Project management office (PMO)
1. An internal department that oversees all organizational projects
viii. Project Participants
1. Project stakeholder
a. Individuals and organizations actively involved in the
project or whose interest might be affected as a result of
project completion
2. Executive stakeholder
a. The person or group who provides the financial resources
for the project
g. Choosing Strategic Projects
i. Focus on organizational goals
1. Projects that address organizational goals tend to have a higher
success rate since they are important across the entire organization
ii. Categorize business priorities
1. There are a range of categories for grouping projects to determine
priority
iii. Perform financial analysis
1. A number of different financial analysis techniques can be
performed to help determine a projects priority, such as return on
investment
h. Understanding Project Planning
i. Project scope statement
1. Links that project to the organizations overall business goals
ii. Project objectives
1. Quantifiable criteria that must be met for the project to be
considered a success
iii. Project constraints
1. Specific factors that can limit options
iv. Project assumptions
1. Factors considered to be true, real, or certain without proof or
demonstration
i. Managing Projects
i. Managing people
ii. Managing communications
iii. Managing change
1. Offers procedures and policies managers can use to help manage
change during systems development
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

15

2. Change management system

a. Includes a collection of procedures to document a change
request and identifies the expected impact associated with
the change
3. Change control board (CCB)
a. Responsible for approving or rejecting all change requests
j. Outsourcing Projects
i. In-sourcing
1. Uses the professional expertise within an organization to develop
and maintain its information technology systems
ii. Outsourcing
1. An arrangement by which one organization provides a service or
services for another organization that chooses not to perform them
in-house
2. Benefits
a. Increased quality and efficiency of business processes
b. Reduced operating expenses for had count and exposure to
rick for large capital investments
c. Access to outsourcing service providers expertise
d. Increased flexibility for faster response to market changes
and less time to market for new products or services
3. Challenges
a. Length of contract
b. Threat to competitive advantage
c. Loss of confidentiality
4. Essay Questions (He picks 5 we pick 2)
a. Mention FIVE benefits of data driven websites (Ch. 6)
b. Explain the THREE primary operational CRM technologies a marketing
department can implement to increase customer satisfaction (Ch. 8)
c. Describe THREE types of data-mining analysis capabilities (Ch. 6)
i. Cluster Analysis
1. Technique used to divide an information set into mutually
exclusive groups such that members of each groups are as close to
one another
ii. Association Detection
1. Degree to which variables are related and nature and frequency of
these relationships
iii. Statistical Analysis

TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

16

1. Performs functions such as correlation, calculation and variance

analysis
2. Time-series information
a. Time-stamped information collected at a particular
frequency
3. Forecasts
a. Predictions based on time-series information
d. Explain FIVE ways data cleansing activates
e. Explain how an organization an use the balanced scorecard to measure ERP
success (Ch. 8)
f. Explain FIVE reasons why operational databases are not appropriate for business
analysis (Ch. 6)
i. Not appropriate for business analysis
1. Inconsistent data definitions
a. Different departments have different ways of recording
things
b. Sometimes data doesnt match
2. Lack of data standards
a. Departments differ in granularities, formats, and levels
3. Poor data quality
a. Often incorrect or incomplete
b. Cannot rely on data to make decisions
4. Inadequate data usefulness
a. Users can not get the data they need
5. Ineffective direct data access
a. Doesnt allow users direct access
b. Need answers in a timely manner
g. Describe the FOUR common components found in extended enterprise resource
planning systems (Ch. 8)
i. Extended ERP component
1. Extra components that meet the organizational needs covered by
2.
3.
4.
5.

the core components and primarily focus on external operations

Business intelligence
Customer relationship management
Supply chain management
Ebusiness components
a. Elogisitcs
i. Manages the transportation and storage of goods
b. Eprocurement
i. Is the business-to-business online purchase and sale
of supplies and services

TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

17

h. Evaluate FIVE advantages of the relational database model (Ch. 6)

i. Using a Relational Database for Business Advantages
i. Increased Flexibility
1. Handle changes quickly and easily
2. Provide users with different views
3. Have only one physical view
4. Physical view
a. Deals with the physical storage of information on a storage
device
5. Have multiple logical views
6. Logical view
a. Focuses on how individual users logically access
information to meet their own particular business needs
ii. Increased Scalability and Performance
1. Scalable to handle the massive volumes of information and large
number of users expected
2. Perform quickly under heavy use
iii. Reduced Data Redundancy
1. Data redundancy
a. The duplication of data, or the storage of the same data in
multiple places
iv. Increased Information Integrity (Quality)
1. Information integrity
a. Measures the quality of information
2. Integrity constraint
a. Rules that help ensure the quality of information
3. Relational integrity constraint
a. Rules that enforce basic and fundamental informationbased constraints
4. Business-Critical integrity constraint
a. Enforce business rules vital to an organizations success
and often require more insight and knowledge that
relational integrity constraints
v. Increased Information Security
1. Information is an organizational asset and must be protected
2. Databases offer several security features
3. Passwords
4. Access level
a. Determines who has access to the different types of
information
5. Access control
TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points

18

a. Determines type of user access, such as read-only access

j. List, describe, and provide an example of each of the FIVE characteristics of high
quality information (Ch. 6)
k. Explain FOUR challenges to implementing ERP systems (Ch. 8)
l. The Challenges of ERP
i. Contain multiple complex components that are not only expensive to
purchase, but also expensive to implement
ii. Costs include
1. Software
2. Consulting fees
3. Hardware expenses
4. Training fees

TOTAL = 70 POINTS
30 Multiple Choice Questions = 60 Points
2 Short Answer Questions (5 Points Each) = 10 Points