Question 1 Efficiency focuses on the extent to which an organization is using its resources in an optimal way.
True
False
Question 2 What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?
Financial
Customer satisfaction
Conversion rates
Usability
Question 3 What are the measures called that are tied to business drivers?
IT efficiency
IT effectiveness
Key performance indicators
None of the above
Question 4 Which of the following is not a type of efficiency IT metric?
System availability
System usability
Transaction speed
Information accuracy
Question 5 According to Peter Drucker, what are managers who do things right addressing?
Efficiency
Effectiveness
Both efficiency and effectiveness
Customer metrics
Question 6 What types of metrics measure customer satisfaction?
Efficiency IT metrics
Effectiveness IT metrics
Both efficiency and effectiveness IT metrics
None of the above
Question 7 Canada is ranked first in terms of egovernment efficiency IT metrics.
True
False
Question 8 Out of the hundreds of possible CRM metrics there is a rule for how many metrics should be tracked and analyzed at any given management level. What is the rule?
Best practice is to track and analyze no more than two (plus or minus two) metrics
Best practice is to track and analyze no more than five (plus or minus two) metrics
Best practice is to track and analyze no more than seven (plus or minus two) metrics
None of the above as it depends on the type of industry
Question 9 Which term is used to describe the ease with which people perform transactions and/or find information?
Usability
Financial
Customer satisfaction
Conversion rates
Question 10 Benchmarks are baseline values the system seeks to attain.
True
False
Question 11 What type of metrics include number back order, customer order promised cycle time, and customer order actual cycle time?
ERP metrics
BPR metrics
CRM metrics
SCM metrics
Question 12 What type of metrics include number of marketing campaigns, new customer retention rates, and number of responses by marketing campaign?
CRM metrics
BPR metrics
ERP metrics
SCM metrics
Question 13 What types of security must an organization offer its customers when it provides them with the ability to purchase products over the Internet?
Encryption and SSL
SSL and HTTP
Encryption and HTTP
All of the above
Question 14 The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives. Which of the following is not one of the four perspectives in the balanced scorecard?
The customer perspective
The financial perspective
The leading perspective
The internal business process perspective
Question 15 What is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser?
Click-through
Banner ad
Interactivity
Cookie
Question 16 The balanced scorecard was developed by Drs. Robert Kaplan of the Harvard Business School and David Norton. Which systems does the balanced scorecard measure?
CRM and ERP
BPR and ERP
SCM and ERP
SCM and CRM
Question 17 Effectiveness IT metrics include throughput, speed, and availability.
True
False
Question 18 What percentage of total capital expenditures on IT are some organizations spending?
5 percent
25 percent
50 percent
75 percent
Question 19 According to Peter Drucker, what are managers who do the right things addressing?
Customer Metrics
Efficiency
Both efficiency and effectiveness
Effectiveness
Question 20 Which of the following is a type of SCM metric?
Customer order promised cycle time
Customer order actual cycle time
Inventory replenishment cycle time
All of the above
Question 21 What type of metrics include number of prospective customers, number of new customers, and number of retained customers?
CRM metrics
BPR metrics
ERP metrics
SCM metrics
Question 22 Which country ranked first in terms of egovernment efficiency?
Australia
Canada
Denmark
United States
Question 23 Which country is ranked first in terms of egovernment effectiveness?
Denmark
Canada
Australia
United States
Question 24 When considering the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate?
Lower left-hand corner
Upper left-hand corner
Upper right-hand corner
Lower right-hand corner
Question 25 What is eBay constantly benchmarking?
IT efficiency and IT effectiveness
Usability
IT efficiency
IT effectiveness
Question 26 What type of metrics measure throughput, speed, and availability?
Efficiency IT metrics
Effectiveness IT metrics
All of the above
None of the above
Question 27 Which of the following is not a typical CRM metric?
Inventory metrics
Sales metrics
Service metrics
Marketing metrics
Question 28 Break-even analysis determines the number of years to recoup the cost of an initiative based on the projected annual net cash flow.
True
False
Question 29 What is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action?
Porter's Five Forces
The balanced cycle time
Porter's Three Generic Strategies
The balanced scorecard
Question 30 Which of the following is not a type of effectiveness IT metric?
Conversion rates
Web traffic
Customer satisfaction
Financial
Question 31 Match the following website metrics with their definition.
1. Click-through = Number of people who visit a site and click on an ad
2. Conversion rate = Percentage of people who visit a site and actually buy something
3. Cost-per-thousand = Sales dollars generated per dollar of advertising
4. Page exposures = Average number of page exposures to an individual visitor
5. Total hits = Number of visits to website, even if by the same visitor
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1. How do they turn the data into information?
To build something that uses data to solve meaningful business questions, you need to identify a place where there is a market need and a business framework for transforming that data into meaningful information.
2. What issues do they encounter when attempting to measure the economy?
On the one hand--companies are expanding into global markets, while on the other hand they are downsizing domestic headcounts. Downsizing is a result of several trends, such as returning to core competencies (reduces headcount in sold-off businesses), flattening of organizations (reduces management layers), employee empowerment (reduces middle management), cross-training to replace specialists with generalists (reduces the number of specialists needed)
3. As a manager, what do you need to understand when reading or listening to economic and business reports?
a. The sheer magnitude of the dollars spent on IS must be managed to ensure business-value.
b. Research has consistently shown that when general managers are involved in IS, IS enables a number of business initiatives, such as business process re-engineering, total quality management, global expansion, even downsizing.
c. Research has consistently shown that when general managers are not involved in IS, dollars are wasted on automating ineffective processes--or at the extreme, companies can fail as a result of poorly managed IS.
