ITM 102- FINAL REVIEW QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026

ITM 102- FINAL REVIEW QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026 Managerial decision-making challenges - Answers 1. Managers need to analyze large amounts of information 2. Managers must make decisions quickly 3. Managers must apply sophisticated analysis techniques, such as Porter's strategies or forecasting, to make strategic decisions Decision Making - Answers 1. Strategic: Unstructured 2.Managerial: Semi-structured 3.Operational: Structures OLTP - Answers (Online Transaction Processing) Capturing and storing data from ERP, CRM, POS Day-to-day business transactions The main focus is on efficiency of routine tasks OLAP - Answers (Online analytical processing) the manipulation of information to create business intelligence in support of strategic decision making. Benchmarking - Answers a process by which a company compares its performance with that of high-performing organizations Key performance indicators (KPIs) - Answers The quantifiable metrics a company uses to evaluate progress toward critical success factors 1. turnover rates of employees 2. number of product returns 3. Number of Customers 4. Average customer spending TPS - Answers Transaction Processing System, collects and stores data (typically in a database) regarding an organization's daily transactions. DSS - Answers Decision Support Systems: predict organizational outcomes Quantitative Models Used By DSS - Answers 1. What-if analysis 2. Sensitivity Analysis 3. Goal-seaking analysis EIS - Answers Executive Information System Artificial Intelligence - Answers simulates human intelligence as the ability to reason and learn. 5 common categories are -expert systems -neural systems -generic algorithm -intelligence agent -virtual reality Fuzzy Logic - Answers a mathematical method of handling imprecise or subjective information generic algorithm - Answers An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem Itelligence Agent - Answers special purpose knowledge based information system the accomplishes specific tasks on behalf of its users Virtual Reality - Answers A computer-simulated environment that can be a simulation of the real world or an imaginary world Understanding the importance of Business Processes - Answers -Customer Facing Processes -Business Facing Processes -Business Process -Business Process Improvement -BPR, Business Process Re-Engineering Customer Facing - Answers Results in a product or service that is received by an organization's external customer Business-facing processes (back-office processes) - Answers Invisible to the external customer but essential to the effective management of the business Business Process - Answers a standardized set of activities that accomplish a specific task, such as processing a customer's order Business Process Improvement - Answers attempts to understand and measure the current process and make performance improvements accordingly BPR (Business Process Reengineering) - Answers the analysis and redesign of workflow within and between enterprises Business Internet - Answers -Digital Darwinism -Disruptive Technology -Sustaining Technology Digital Darwinism - Answers implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction Disruptive Technology - Answers A new way of doing things that initially does not meet the needs of existing customers sustaining technology - Answers Produces an improved product customers are eager to buy The Internet- Disruptive Technology for Business - Answers -organization must be able to transform a market's economic environments, and technologies change -One of the biggest forces of changing business is the internet Network - Answers a group of two or more computer systems linked together Internet backbone - Answers a collection of high-speed data lines that connect major computer systems located around the world Internet Service Provider (ISP) - Answers a company that provides access to the internet for a monthly fee Transmission Control Protocol/Internet Protocol (TCP/IP) - Answers every computer on the internet is identified by an IP address URL - Answers Uniform Resource Locator; a location or address identifying where documents can be found on the Internet; a Web address Evolution of the Internet - Answers -The internet makes it possible to perform business in ways not previously imaginable -It can also cause a gap between winners and losers in the game of business digital divide - Answers A worldwide gap giving advantage to those with access to technology E-Commerce - Answers the buying and selling of goods over the internet e-business - Answers using the internet to facilitate every aspect of running a business New Markets - Answers -Mass Customization -Personalization - The long tail - Intermediary mass customization - Answers The ability of an organization to tailor its products or services to the customers' specifications Personalization - Answers Occurs when a company knows enough about a customer's likes and dislikes that it can fashion offers more likely to appeal to that person long tail - Answers refers to the tail of a typical sales curve intermediary - Answers agents, software, or businesses that provide a trading infrastructure to bring buyers and sellers together Advantages of E-Business - Answers -Reducing Costs -Improving Operations -Improving Effectiveness -Interactivity Metrics Reducing Costs - Answers Business processes that take less time and human effort Improving Operations - Answers Communications customized to meet consumer needs & available 24/7 Improving Effectiveness - Answers websites must increase revenue and new customers and reduce service calls Interactivity Metrics - Answers measure e-business success Further Advantages of the Web - Answers -Improving Effectiveness through e-marketing Improving effectiveness though e-marketing - Answers -associate programs -banner ads -tracking click-through -cookies -pop-up ads -viral marketing Measuring website success - Answers -Stickiness -Raw Visit Depth -Undefined Visitor -Unique Visitor -Identified Visitor -Hits Brick-and-Mortar Business - Answers physical store, no website Pure-play (virtual) business - Answers website only Click and Mortar Business - Answers physical store and website Common Business-to-consumer models include... - Answers E-shop- a vision of retail store where customers can shop online anytime without leaving their home E-mail- consists of a number of e-shops; it serves as gateway through which a visitor can access other e-shops New Trend in Enterprise Computing: - Answers •Technological change •Elements affecting competitor and consumer behaviour •New innovations in marketplace •Environment (green) •Social networks Enterprise Resource Planning (ERP) - Answers •ERP involves integrating all internal daily operational processes (distribution, accounting, HR, manufacturing etc.) •Previously insolated and independent systems now interacting together innovation - Answers introduces new methods or new devices Social Responsibility - Green: - Answers •Energy consumption •Data center uses more energy than average office Recycling IT Equipment: - Answers •Sustainable IT disposal - safe disposal •E - waste •EHF - environmental handling fees - Ontario Enterprise Resource Planning (ERP) - Answers •Everyone works with the same company data oEliminates redundancies oReduces waste time oRemoves inconsistencies Legacy Systems to ERP (Challenges) - Answers o Data conversion o Data integration Legacy Systems to ERP (benefits) - Answers -consistency Heart of ERP: - Answers Central database that collects information from and feeds information into all the ERP system's individual application components, supporting diverse business functions such as accounting, manufacturing, marketing, and human resources. Evolution of ERP: - Answers •A tool for material planning, has extended to warehousing, distribution and order entry •Then - customer relationship management (CRM) •Administrative, sales, marketing and HR all can share the system •Internet and all value chain Core ERP components - Answers accounting and finance, production and materials management, human resources Extended ERP components - Answers business intelligence, customer relationship management, supply chain management, e-business Integration tools - Answers middleware, enterprise application integration middleware Middleware - Answers Several different types of software that sit between and provide connectivity for two or more software applications Enterprise Application Integration Middleware - Answers takes a new approach to middleware by packaging commonly used applications together, reducing the time needed to integrate applications from multiple vendors Right ERP solution - Answers Overall fit, Proper Business Analysis Solid Implementation ERP and SME Market challenges - Answers -cost -marketing -size of market -SME market users resellers/partners to sell software solutions Distribution Centre: - Answers a building from which goods or supplies are sent to factories, shops or customers Production - Answers The process of creating goods and services production management - Answers describes all the activities managers do to help companies create goods Operations Management (OM) - Answers the development and administration of the activities involved in transforming resources into goods and services Transforming Inputs and Outputs - Answers •Creating goods and services involves transforming or converting inputs to outputs •Inputs go through transformation process to create goods and services •Value Added - is the term used to describe the difference between the cost of inputs and the price value of the outputs Feedbacks - Answers occur in every stage of the transformation process to improve output Operations Management in Business - Answers oForecasting Capacity planning oScheduling oManaging inventory oAssuring quality oMotivating and training employees oLocating facilities IT role in operations management - Answers •To assist in operation decisions oDSS - decision support system oEIS - executive information systems •What - When - Where - How - Who SBU (Strategic Business Unit) - - Answers is a stand alone business under a corporate umbrella Strategic Planning - - Answers are the collection of decisions focus in doing the right things over a longer period of time MRP (Material Requirement Planning) Systems - - Answers use sales forecast to makes sure parts and materials are available Global Inventory Management Systems (GIMS) - - Answers locate, track and predict materials and components by installing GPS in transportation vehicles Operational Planning and Control (OP&C) - deals with day to day operations - Answers Competitive OM Strategy:(Five Key Competitive Priorities:) - Answers 1. Cost - low cost bidders 2. Quality - error free and balanced 3. Delivery - timeliness/speed 4. Flexibility - variety 5. Service - as a differentiator Supply Chain - - Answers consists of all parties involved, directly or indirectly, in the procurement of a product or raw material Supply Chain Management (SCM) - - Answers involves the management of information flows between and among stages in a supply chain to maximize total effectiveness and profitability The four basic components of Supply Chain Management (SCM) are: o - Answers Supply chain strategy o Supply chain partners o Supply chain operation o Supply chain logistics Supply Chain Fundamentals:The supply chain has three main links: - Answers 1. Materials flow from suppliers and their "upstream" suppliers at all levels 2. Transformation of materials into semi-finished and finished products through the organization's own production process 3. Distribution of products to customers and their "downstream" customers at all levels Supply Chain Management Metrics: - Answers • Back order • Inventory cycle time • Customer order cycle time • Inventory replenishment cycle time • Inventory turnover Seven Principles of SCM: - Answers 1. Segment Customers by service needs, regardless of industry, and tailor service to those segments 2. Customize the logistics network and focus intensively on the service requirements and on profitability of the pre-identified customer segments 3. Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand 4. Differentiate products closer to the customer, since companies can no longer afford to hold inventory to compensate for poor demand forecasting 5. Strategically manage sources of supply, by working with key suppliers to reduce overall costs of owning materials and services 6. Develop a supply chain information technology strategy that supports different levels of decision making and provides a clear view (visibility) of the flow of products, services and information 7. Adopt performance evaluation measures that apply to every link in the supply chain and measure true profitability at every stage Supply Chain Success Factors: - Answers • SCM industry best practices include: 1. Make the sale to suppliers 2. Wean employees off traditional business practices 3. Ensure the SCM system supports the organizational goals 4. Deploy in incremental phases and measure and communicate success 5. Be future oriented Future Supply Chain Trends: - Answers • Instrumentation - data will be increasingly machine-generated. GIS and RFID-enabled devices, meters and actuators • Interconnectedness - every component from customer back to materials source and every element in between such as vehicles, containers and products will be identified and can be tracked • Intelligence - data received from the smart objects in the supply chain will be processed with smart analytics which will create better models to support improved decisions in an increasingly complex world 'The Future of SCM: • Fastest growing SCM components o Supply chain event management (SCEM) o Selling chain management o Collaborative engineering o Collaborative demand planning CRM - - Answers involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability Strategy Switching: - Answers • The intense competition in today's marketplace forces organizations to switch from sales-focused strategies to customer-focused strategies • Use CRM to gain insights into customer's shopping and buying behaviour CRM as a Business Strategy: - Answers • Enables an organization to identify customers and design specific marketing campaigns tailored to each customer, thereby increase customer spending Business Benefits: - Answers • Is a business philosophy based on the premise that organizations that