Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications STUDENT OBJECTIVES • How enterprise systems achieve operational excellence by integrating and coordinating diverse functions and business processes in the firm. Knowledge workers assist with paperwork at all levels of the firm. The temp agency that you own is having serious difficulties placing temps because few of them are familiar with Internet research. Organizational culture is best described by which of the following statements? ________ are private corporate networks extended to authorized users outside the organization. This is measured in decades as opposed to quarters and is indicative of an enduring culture that is superior to the competition. Through this work, we have found that there are three primary elements of operations that a company should be focused on: direction, engagement and optimization. You work for an auto manufacturer and distributor. It begins at the top — with the CEO and other executives emphasizing robust business process management. It is the achievement by an organization of consistent superior performancefor example, outputs that exceed meeting objectives, needs, or expectations. ________ is a global network that uses universal standards to connect millions of different networks around the world. Thomas Friedman's declaration that the world was now "flat" meant that. There are four major business functions: sales and marketing; manufacturing and production; finance and accounting; and information technology. Operational Excellence (OE) is one of the management buzzwords currently in circulation. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? Each day presents an opportunity for you to master skills and further goals. D) Apple Inc.'s iPod. 42) An example of a business using information systems to attain operational excellence is A) Wal-Mart's RetailLink system. In a hierarchical organization, the upper levels consist of. Intranets allow firms to work easily with third-party suppliers and vendors. Consider which tasks in your company can be automated. Maintaining the organization's financial records is a central purpose of which main business function? Investment in IT is over 50% of all invested capital. When a company functions efficiently, employees are more productive and can reach their full potential. An operational excellence management system (OEMS) represents a set of policies that lay out how your company will function to achieve operational excellence. Achieving Operational Excellence. A critical component of Operational Excellence is establishing digital maturity. A managerial element in the UPS tracking system described in the chapter is. Partners help customers through digital transformation initiatives every day, so it follows that partners themselves should achieve that transformation. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? A corporation that funds a political action committee, which in turn promotes and funds a political candidate who agrees with the values of that corporation, could be seen as investing in which main category of complementary assets? Operational excellence: A company pursuing operational excellence should aim to provide a standard product/s at a low price. Strategic planning is an organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. transfers processed information to the people who will use it or to the activities for which it will be used. Networking and telecommunications technologies, along with computer hardware, software, data management technology, and the people required to run and manage them, constitute an organization's, An example of a business using information systems to create new products and services is, An example of a business using information systems to attain operational excellence is, An example of a business using information systems for customer and supplier intimacy is. It is the pursuit of conducting business to continuously improve the quality of goods and services, reduce costs, increase speed, and enhance flexibility to achieve competitive superiority (Laudon and Laudon, 2006). Information systems can help achieve operational excellence by improving communications to supplier and optimizing the supply chain. B) the Mandarin Oriental hotel's customer-preference tracking system. In order to understand how a specific business firm uses information systems, you need to know something about the hierarchy and culture of the company. A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective? Computer ________ consists of the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. Answer: You could create a Web site that allows customers to customize cars, communicate with support personnel and other car owners. Defining operational excellence, in reality, isn’t easy. When colleges and universities think about building academic enterprises for the 21st century, they often overlook one of the most critical aspects: the back-office structures needed to run complex organizations. Developing a new product, fulfilling an order, and hiring a new employee are examples of business processes, A fully digital firm produces only digital goods or services. Verizon Corporation's use of a Web-based digital dashboard to provide managers with precise real-time information illustrates which business objective? The behavioral approach to information systems leaves aside technical solutions to instead analyze the psychological, social, and economic impacts of systems. The ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format. Large, global companies that use an Operational Excellence strategy tend to outperform their peers in terms of share price growth and speed to recovery after market downturns. Authors Michael Treacy and Fred Wiersma describe three generic competitive strategies, or value disciplines: operational excellence, customer intimacy and product leadership.These are described in their book, The Discipline of Market Leaders (1997). The best examples are focused, simple and relentlessly applied. Customer intimacy: A company following customer intimacy should concentrate on the market segment that values customised products and close relationships. The three principle levels within a business organization hierarchy are. The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective? Break down silos between departments so that everyone is working with the same information and toward th… Which of the following objectives best describes the business strategy behind the technologies implemented by the San Francisco Giants, as discussed in the chapter case? The intent of the Operational Excellence exam is for you to exhibit your mastery of the information learned in Module I: HFMA’s Business of Health Care. Which field of study focuses on both a behavioral and technical understanding of information systems? Which of the following would not be a complementary asset for a solar panel manufacturer? Achieving OpEx for your business can help HR departments create … An example of a business using information systems to attain operational excellence is A) Wal-Mart's Retail Link system. A business model describes how a company produces, delivers, and sells a product or service to create wealth. [inlinead] A business model describes how a company produces, delivers, and sells a product or service to create wealth. Operational excellence is a buzzword that originated within continuous improvement practices in the 1980s. Which of the following is not one of the current changes taking place in information systems technology? Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective? An example of a business using information systems to attain operational excellence is A) Wal-Mart's RetailLink system. The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage; operational excellence; and. Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes. Investing in training software to enhance your workers' skills is an example of using technology to achieve which business objective? Converting raw data into a more meaningful form is called. The Operational Excellence pillar includes the ability to support development and run workloads effectively, gain insight into their operations, and to continuously improve supporting processes and procedures to deliver business value. Sustaining excellence in performance requires continuous improvement and focus—so the journey is never over. The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its, Thomas Friedman's declaration that the world was now "flat" meant that, Data management technology consists of the. Operational Objectives for a Business. Which of the following are key corporate assets? To succeed in the marketplace, companies must embrace a competitive strategy. You could create an automated e-mail service reminding car owners to take their car in for periodic checkups. The first step toward organizational excellence is building efficient processes that make it clear to all employees whether or not an organization’s systems are running smoothly and make it possible for team members to step in with improvements when necessary. false, some maybe written down others may not. False; information systems literacy is a broder understanding of information systems which emcompasses and understanding of the managment and organizational dimensisons of systems as well as technical dimensions of systems, computer literacy focuses on knowledge if information technology. Internet advertising is growing at approximately 10 percent a year. C) Verizon's Web-based digital dashboard. d; A-senorr management B-operational management C-data workers. Which of the following constitutes an organizational element in the UPS tracking system described in the chapter? Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to, An example of an organizational complementary asset is, An example of a social complementary asset is, Disciplines that contribute to the technical approach to information systems are, The discipline that focuses on mathematical techniques for optimizing parameters of organizations, such as transportation and inventory control, is, Sociologists study information systems with an eye to understanding, Psychologists study information systems with an eye to understanding, All of the following are advantages, for a firm, of cloud computing except. B) the Mandarin Oriental hotel's customer-preference tracking system. Operational Excellence enables all the tasks and performances in a better way. It begins at the top — with the CEO and other executives emphasizing robust business process management. 1 Toyota RAV4 sold March 3, 2013, in Louisville, Kentucky. Operational excellence is the long-term outperformance of a business in terms of actual results on the market. D) Apple Inc.'s iPod. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, streamline distribution. At heart, Operational Excellence is an element of organizational leadership the employs numerous methodologies and tools, focusing on the sustainable improvement of outstanding performance metrics. This Operational Excellence example study, based on the Shingo Research Award-winning book, "Building the Fit Organization," distills the lessons from the Toyota Production System into six core concepts, in the easily understandable language of physical fitness and athletic excellence—no Japanese, no English jargon, and no references to Toyota. managerial, professional, and technical employees. Under the constructs of operational excellence, employees are encouraged to seek out areas of inefficiency in production processes and fix them before they break. A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective? Studies have consistently shown that firms that invest greater amounts in information technology receive greater benefits than firms that invest less. UPS's use of Web-based tools that allow customers to embed UPS functions such as tracking and cost calculations into their own Web sites was an information systems solution used to achieve customer intimacy. ________ is known as the enormous volume of data generated by Internet activity, such as Web traffic and e-mail. They design products or services and create new knowledge for the firm. Computers are only part of an information system. false, information technology is not a business function human resource is the last one. ... And this applies not only to the enterprise business, but also to their customers’ businesses. Management Information Systems, 12e (Laudon) Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business. ________ is data that has been shaped into a form that is meaningful to human beings. When all three of these elements are functioning effectively, companies can achieve true operational excellence (Exhibit 2). Operational Objectives for a Business. Which of the following would not be used as an input for an information system? Generally, strategic planning deals, on the whole business, rather than just an isolated unit, with at least one of following three key questions: Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. Read 'Operational Excellence in Action - Leading Companies' an extract of 'The Global State of Operational Excellence: Critical Challenges & Future Trends' of the Research Report 2018/19 by Vijay Bajaj. The quotation received by your company is a legally binding offer, should decide to do business with the vendor, containing price's and conditions for the materials specified in the RFQ for a predefined period of time. An example of raw data from a national chain of automobile stores would be. Operational excellence is defined as the process of executing a business strategy more consistently and more reliably than the competition, resulting in increased revenue, lower operational risk and lower operating costs. 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