ITM Exam Three Spring 2014

1. We discussed the success rate for the waterfall methodology during our discussion in class. Based on
data from companies who used the waterfall methodology, what would the success rate be for a system
project if the waterfall methodology was used?
A. 1 in 10
B. 3 in 10
C. 8 in 10
D. 5 in 10

2. We discussed a formula for change: D x V x F > R, where D = Dissatisfaction; V = Vision; F =

Forward progress; and R = Resistance. What is the name of this formula for change?
A. Porter’s Formula
B. Gleicher’s Formula
C. Baltzan’s Formula
D. Moore’s Formula

3. We discussed the Dell case in class and noted four primary questions which need to be answered by a
company as it considers a new Business Model. Which of the following is NOT a primary question
used to help a company understand Business Model opportunities?
A. How do we make money in this business?
B. Who do we choose as the new business leader? (who are my customers)
C. What do customers value?
D. How much will it cost to deliver value customers?

Business Model Key Questions:

1. Who are my customers?
2. What do customers value?
3. How much money do we make in this business
4. How much will it cost to deliver value to customers?

4. Which of the following was NOT a primary change or challenge which organizations are focused on in
the 21st century?
A. Virtual workforce
B. Social networking
C. Lack of technology enablers
D. Innovation: finding new

Primary changes and challenges organizations are focusing on in the 21st century:
1. Innovation: finding new
 2. Social entrepreneurship: going green
3. Social networks: who’s who
4. Virtual worlds: it is a whole new world

5. What is an arrangement by which one organization provides a service or services for another
organization that chooses not to perform them in-house?
A. Offshore partnership
B. Insourcing
C. Business process management
D. Outsourcing

6. CRM reporting technologies help organizations identify customers and ask what happened. Which of
the following is a typical question answered by CRM reporting?
A. Why did sales not meet forecasts?
B. What is the total revenue by customer?
C. What products will the customer buy?
D. Who are the best customer candidates for mailing?
CRM REPORTING Questions:
1. What is the total revenue by the customer?
2. How many units did we make?
3. What were total sales by product?
4. How many customers do we have?
5. What are the current inventory levels?
CRM ANALYZING Questions:
1. Why did sales not meet forecasts?
2. Why was productions so low?
3. Why did we not sell as many units as previous years?
4. Who are our customers?
CRM PREDICTING Questions:
1. What customers are at risk of leaving?
2. Which products will out customers buy?
3. Who are the best customers for a market campaign?
4. How do we reach out customers?
5. What will sales be this year?
6. How much inventory do we need to preorder?

7. We discussed the future of Supply Chain Management during out lecture on enterprise applications for
SCM. Which of the following is NOT a fastest growing SCM component for the future of SCM?
A. Collaborative demand planning
B. Collaborative engineering
C. Manufacturing resource planning
D. Selling chain management
 Fastest growing SCM components:
1. Collaborative demand planning
2. Collaborative engineering
3. Selling chaining management
4. Supply chain event management

8. Which of the following attributes are used to describe ERP?

A. Front Office and Internal
B. Front Office and External
C. Back Office and Internal
D. Back Office and External
Operational CRM: front office sales systems, marketing systems, customer service systems.
Analytical CRM: back office data warehouse, data mining.

9. What is it called when a web site can know enough about a person’s likes and dislikes that it can
fashion design offers that are more likely to appeal to that person?
A. CRM Reporting
B. Operational CRM
C. Personalization
D. Predictive Sales Management
Benefit of CRM.

10. Who are the primary users of ERP systems?

A. Sales, marketing, and customer service
B. Accounting, finance. Logistics, and production
C. Customers, resellers, partners, suppliers, and distributors
D. All of the above
Primary Users:
1. CRM systems: sales, marketing, customers service
2. SCM systems: customers, resellers, partners, suppliers, distributors,
3. ERP systems: Finance, accounting, logistics, production.

11. According to our Optime’ Group Inc. guest speaker, one way that business intelligence systems aid the
business of healthcare is by:
A. Engaging internal customers in business decisions
B. Rapidly informing a patient’s caregiver of test results
C. Providing data standards so everyone learns a new name for things
D. Offering simple explanations to complex healthcare reform decisions

12. Which of the following is NOT a benefit of a successful ERP implementation?

A. Decreased costs
B. Enhanced decision support
C. Improved Enterprise agility
 D. Real time view of external business processes (it really is quality and efficiency)

ERP benefits:
1. Quality and efficiency
2. Decreases costs
3. Decision support
4. Enterprise agility

13. We discussed the future of Customer Relationship Management during out lecture on enterprise
applications for CRM. Which of the following is NOT a future trend for CRM?
A. Operations Relationship Management (ORM)
B. Supplier Relationship Management (SRM)
C. Employee Relationship Management (ERM)
D. Partner Relationship Management (PRM)
Future trend for CRM:
1. Supplier relationship management (SRM)
2. Partner relationship management (PRM)
3. Employee relationship management (ERM)

14. Which of the following is NOT a cause of ERP failures?

A. Failure to do enough date conversion and testing
B. Failure to involve affected employees in the planning and development phases
C. Trying to do too much too fast in the conversion process
D. High costs associated with the reengineering aspects of the project
Causes of ERP failures:
1. Business managers and IT professionals underestimate the complexity of the planning,
development, and training needed.
2. Failure to involve affected employees in the planning development phases
3. Trying to do too much too fast in the conversion process.
4. Failure to do enough data conversion and testing.

15. CRM allows a business to identify and target their best customers so they can be retained as lifelong
customers for greater and more profitable services. We discussed in lecture that it costs _______ time
more to sell to a new customer than to sell to an existing one.
A. Three
B. Six
C. Nine
D. Twelve

16. The use of information technology to create a cross-functional enterprise system that integrates and
automates many of the front office processes of a company is called ______?
A. CRM
B. SCM
 C. ERP
D. SDLC

17. Which of the following is NOT a guideline for effectively dealing with change management?
A. Institute change management policies
B. Stop change
C. Anticipate change
D. Seek change
Three important guidelines for effectively dealing with change management:
1. Institute change management policies
2. Anticipate change
3. Seek change

18. We discussed Supply Chain Management (SCM) benefits during lecture and highlighted the value
created by a business which was successful with implementing SCM technologies. Which of the
following was NOT a key SCM bottom-line benefit or value driver?
A. Cost savings
B. Productivity improvements
C. Supplier inventory increases
D. Improved visibility

19. During the lecture on outsourcing, we showed a funny video on Outsourcing and the order
management process. Which company was illustrated in this Outsourcing video?
A. Dell
B. Mercedes
C. Easton Bell Sports
D. Burger King

20. Which of the following is NOT a factor driving the growth of outsourcing markets?
A. Core competencies
B. The internet
C. Industry changes
D. Local markets
Factors of outsourcing growth:
1. Core competencies
2. Financial savings
3. Rapid growth
4. The internet
5. globalization

21. What is prototyping?

A. The rapid development and testing of working IT models
 B. Sometimes called rapid application design (RAD)
C. Simplifies and accelerates systems design
D. All of the above

22. Our Optime’ Group Inc. guest speaker discussed mining data to improve decision making in the health
care industry. According to our Optime’ Group Inc. guest speaker, which of the following is a good
FIRST STEP in mining data?
A. Ensuring that the system(s) from which the data will be extracted are open and allow for extracts
B. Ensuring that the data is clean
C. Knowing how the users will access the data and what type of tool will be best for interrogation
D. An awareness that the processes enabled by the technology deposit the requisite data elements

23. According to our discussion in lecture, which of the following are the most common function
outsourced and least common function outsourced?
A. Human Resources is the most common function outsourced and Information Technology is the
least common function outsourced.
B. Information Technology is the most common function outsourced and Human Resources is the
least common function outsourced.
C. Information Technology is the most common function outsourced and Marketing/Sales is the least
common function outsourced.
D. Information Technology is the most common function outsourced and Finance and Accounting is
the least common function outsourced.

24. What is it called when distorted product-demand information triples from partner to the next
throughout the supply chain?
A. Bullwhip effect
B. Demand Planning
C. Visibility
D. Supply chain event management

25. What are the three primary interdependent variables of project management?
A. Time, cost, quality
B. Time, expense, requirements
C. Time, cost, scope
D. Time, expense, quality

26. Which of the following is NOT one of the five basic activities of supply chain management?
A. Plan
B. Deliver
 C. Cost
D. Source
Five basic activities of supply chain management:
1. Plan
2. Source
3. Make
4. Deliver
5. Return

27. We showed a video on ERP software installation at Easton-Bell Sports, Inc. during lecture. Which of
the following was NOT a key ERP benefit noted by Easton-Bell Sports, Inc.?
A. Robust solution to address Sarbanes-Oxley
B. Achieve benefits in four years
C. Consolidate functions with common service model
D. Improve visibility and throughput
Easton-Bell Sports Inc Video keep ERP benefits notes:
1. Robust solution to address Sarbanes-Oxley
2. Automating common business processes
3. Improving visibility and throughout
4. Consolidating functions with common service model
5. Achieve benefit in less than two years.

28. What is the major focus of organizational change management?

A. Profits
B. People
C. Technology
D. Process

29. Which of the following operational CRM technologies does the marketing department typically use?
A. Contact center, Web-based self-service, call scripting
B. List generator, Opportunity management, contract center
C. List generator, campaign management, cross-selling and up-selling
D. Contact center, Cross-selling and up-selling, web-based seld-serveice
Sales: sales management, contact management, opportunity management
Customer service: contact center, web-based self-service, call scripting

30. What CRM components support back-office operations and strategies analysis and include all systems
that do not directly with the customers?
A. Analytical CRM
B. Operational CRM
C. CRM Personalization
D. Predictive CRM
31. Which of the following is NOT a phase in the Systems Development Life Cycle (SDLC)?
A. Request for Proposal (RFP)
B. Testing
C. Development
D. Planning
Side note: Phases of SDLC
1. Planning
2. Analysis
3. Design
4. Development
5. Testing
6. Implementation
7. maintenance

32. Which of the following is NOT a characteristic of a well-defined project plan?

A. Appropriate to the project’s size
B. Easy to read
C. Prepared by the project manager
D. Communicated to all key participants
1. A well-defined project plan should be:
o Easy to understand and read
o Communicated to all key participants
o Appropriate to the project’s size, complexity, and criticality
o Prepared by the team, rather than by the individual project manager

33. We reviewed the Dell initial business model during lecture and discussed the rules that Dell broke.
According to our discussion in lecture, which of the following was NOT a rule which Dell broke?
A. You cant customize every order for every customer
B. The retail channel cannot be bypassed.
C. Pre-configured PC models must be offered to customers
D. Customers value convenience and one-stop shopping
Rules Dell broke:
 You can’t customize every order for every customer, so offer pre-configured models that can’t be
changed.
 Retailers recommend specific models to customers, so the channel cannot bypassed
 Pre-configured PC models must be offered to customers.

34. Which of the following is NOT an element of the Change Management Process?
A. Create a change vision
B. Define risk avoidance elements
C. Develop culture
D. Deliver business benefits
 Elements of the Change management process
o Create a change vision
o Manage people performance
o Define a change strategy
o Deliver business benefits
o Develop leadership
o Develop culture
o Build commitment
o Design organization

35. Which of the following is NOT one of the common reasons why IT projects fall behind schedule or
fail?
A. Software gap and/or hardware issue
B. Poor project management
C. Change in business goals during project
D. Lack of support from business management
Common reasons why IT projects fall behind schedule or fail:
o Poor planning or poor project management.
o Change in business goals during project.
o Lack of support from business management
o Lack of resources
o Lack of IT support from IT management
o Change in technology during project.
 Notice that most of these are caused by human error, not machine error.

36. What is the number one reason that IT projects fall behind schedule or fail?
A. Change in business goals during the project
B. Lack of support from business management
C. Poor planning or poor project management
D. Change in technology during the project

37. Business requirements are determined in which phase of the System Development Life Cycle?
A. Design
B. Planning
C. Development
D. Analysis

38. What is McDonald’s performing when it asks its customers if they would like to super-size their
meals?
A. Campaign management
B. Up-selling
C. Cross-selling
 D. Promotion selling

39. Which is the following is NOT performed during the implementation phase of SDLC?
A. Write detailed business requirements
B. Determine implementation method
C. Write detailed user documentation
D. Provide training for the system users

40. We discussed core and extended ERP during our lecture on enterprise applications for Enterprise
Resource Planning. Which of the following is NOT an extended ERP component?
A. Business Intelligence
B. Supply Chain Management
C. E-business
D. Productions and Materials Management
 Extended ERP components:
o Business intelligence
o Customer relationship management
o Supply chain management
o E-business
41. Which of the following id NOT one of the three phases in the evolution of CRM?
A. Reporting
B. Analyzing
C. Predicting
D. Processing

42. We discussed the pie chart with ERP implementation costs. Which ERP implementation cost was the
largest percentage of total costs (or the largest slice in the pie)?
A. Hardware
B. Reengineering
C. Data conversions
D. Software
ERP implementation cost:
 Software—15%
 Hardware—12%
 Training and change management—15%
 Data conversons—15%
 Reengeering—43%
43. Which of the following is NOT a characteristic of a successful project?
A. Delivered on time
B. Delivered within project
C. Meets the business’s requirement
D. Delivered with scope creep tolerance levels
44. In which SDLC phase is it most expensive to make a system change?
A. Design
B. Planning
C. Request for Proposal (RFP)
D. Testing

GUEST SPEAKER QUESTIONS: TECH SMITH CORPORATION

45. TechSmith Corporation was founded in which eyar and what was the first milestone
A. Answer: Snagit 1987

46. What problem did snag it solve?

A. Recording and key strokes in MS DOS

47. Tech Smith is working on meeting customer needs in each of the following expect?
A. Voice over internet protocol solution

48. The techsmith IT team is responsible for all of the following expect?
A. Ordering pens