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Question Paper
E-Business (MB3H1IT): October 2008
Section A : Basic Concepts (30 Marks)
This section consists of questions with serial number 1 - 30. Answer all questions. Each question carries one mark. Maximum time for answering Section A is 30 Minutes.
1. Which of the following statements is/are^ true^ about e-business projects? I. Breakthrough projects are also called improvement projects. II. Incremental projects are also called radical projects. III. Platform projects lead to the creation of a new structural foundation that can be used by all business entities.
(a) Only (III) above (b) Both (I) and (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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2. Active participation of executives from all the business units in the organization is important for developing a good e-business case. Which of the following executives provide insights on business processes and possible improvements? (a) Chief Information Officer (b) Chief Financial Officer (c) Chief Executive Officer (d) Operating Vice presidents (e) Facilitators.
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3. Die-hard skeptic companies are those (a) That are not bothered about the changes in technology (b) That are not ready to accept changes happening around them (c) Who notice the changes happening in the market and will take action only if they feel that changes are long term (d) Who anticipates the changes and are first movers in technological innovations (e) Who achieve competitive advantage by exploiting new technological innovations.
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4. Which of the following is an online exchange that links buyers and sellers and makes available extensive market information to buyers, enabling them to make an informed purchasing decision? (a) Employee connectivity (b) Vertical procurement portal (c) Suppliers connectivity (d) Back end systems connectivity (e) E-procurement.
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5. (^) Marketing Mix includes four Ps product, place, price and promotion. Database marketing supplements the
four Ps with four Ts. Which of the following is not one of the Ts?
(a) Targeting (b) Tailoring (c) Tying (d) Tracking (e) Tapping.
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6. (^) In e-business, an organization cannot maintain the same kind of relationship with all its suppliers. It has to
formulate a strategy depending on contribution of each supplier to the success of a company. Suppliers can be classified into many categories depending upon the type of components they supply. So, which of the following supplier’s products and services are essential for business but are not crucial for success?
(a) Suppliers of scarce products (b) Suppliers of strategic products (c) Suppliers of non-strategic products (d) Suppliers of commodity products (e) Suppliers of service.
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7. (^) Scalability and availability are two important criteria for evaluating the success of an e-business project.
Which of the following statements is/are true?
I. Scalability refers to the time period for which the user has been able to fully utilize the system. II. Availability refers to the ability of a system to increase its capacity to handle more data and information with the increase in number of clients. III. Scalability is enhanced, using nTier architecture.
(a) Only (III) above (b) Both (I) and (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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8. (^) Which of the following statements is/are true about middleware?
I. Object based middleware is more scalable than event based middleware. II. Event based middleware depends on reply-request method of communication. III. OMG’s CORBA and Microsoft’s Distributed COM are object based middleware.
(a) Only (III) above (b) Both (I) and (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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9. (^) Bhoomi is an e-governance project undertaken by which state in India?
(a) Andhra Pradesh (b) Karnataka (c) Bihar (d) West Bengal (e) Madhya Pradesh.
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The property of a receiver being able to prove that the sender of some data did in fact send the data even though the sender might later deny ever having sent it is called
(a) Authentication (b) Non-repudiation (c) Confidentiality (d) Integrity (e) Audit trail.
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For encrypting plain text, the cryptographic algorithm works with a key. The ‘Key’ is in the form of
(a) Word only (b) Number only (c) Either a word or a number (d) Either a word , a number or a phrase (e) Either a word, a number, a phrase or sentence.
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CORBA uses a common architecture to standardize distributed object systems. CORBA stands for
(a) Common Object Request Broker Architecture (b) Common Operating Request Broker Architecture (c) Common Object Remote Broker Architecture (d) Common Operating Remote Broker Architecture (e) Common Operating Remote Business Architecture.
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Business-to-Business (B2B) is a popular e-business model dealing with B2B transactions. The main aim of these marketplaces is to
I. Match buyers and sellers to enable exchange of goods and services. II. Sell products and services directly to individual consumers. III. Enable sale and purchase of products and services between individual customers.
(a) Only (I) above (b) Only (II) above (c) Only (III) above (d) Both (I) and (II) above (e) (^) Both (I) and (III) above.
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Dell Inc., a U.S.A based computer hardware company is selling their goods to customers without any intermediaries. The process of eliminating the number of intermediaries between the manufacturer and customer is called
(a) Cross-industry competence (b) Re-intermediation (c) Gatekeeper model (d) Blurring (e) Disintermediation.
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Which of the following statements is/are false with regard to relationships in the supply chain management process?
I. Strategic relationships are maintained between companies and suppliers of non-commodity items. II. Alternative suppliers for non-commodity items can be quickly obtained. III. Non-commodity items are not given any critical importance.
(a) Only (I) above (b) Only (III) above (c) Both (I) and (II) above (d) Both (I) and (III) above (e) Both (II) and (III) above.
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In which of the following modules of supply chain planning, operating plans are developed?
(a) Advanced scheduling and manufacturing planning (b) Demand planning (c) Distribution planning functions (d) Capacity planning (e) Aggregate inventory planning.
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Which of the following are characteristics of the integrated make-to-stock model of supply chain management?
I. This model is suitable for mass production environment. II. In this model, production is based on forecasted demand. III. In this model, final product is assembled in the distribution channel. IV. In this model, companies wait for customers to place orders.
(a) Both (I) and (II) above (b) Both (I) and (III) above (c) Both (I) and (IV) above (d) (I), (II) and (III) above (e) (II), (III) and (IV) above.
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Built-to-order is one of the models in supply chain management. Which of the following characteristics is/are exhibited by the built-to-order model?
I. Mass customization. II. Flexibility in procurement process. III. Managing large stocks.
(a) Only (I) above (b) Both (I) and (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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An ERP system makes the process of tracking the lead times of all materials of the company easier. Identify the correct sequence of steps for tracking lead times using ERP.
I. Heads of Various Departments. II. Determination of the route and mode of transport. III. ERP system checks order. IV. Customer order. V. Bill of material. VI. Production schedule. VII. Purchasing orders.
(a) IV-I-VI-III-V-VII-II (b) IV-I-VI-III-II-V-VII (c) IV-I-VI-V-III-VII-II (d) IV-I-III-V-VI-VII-II (e) IV-VI-I- III-V-VII-II.
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Which of the following statements are false with regard to the phased approach implementation?
I. Higher demand for organizational resources. II. Higher level of commitment. III. One stage of implementation at one time. IV. Higher resistance by employees.
(a) Both (I) and (II) above (b) Both (I) and (III) above (c) Both (I) and (IV) above (d) (I), (II) and (IV) above (e) (I), (III) and (IV) above.
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Organizations generally classify their suppliers into various categories. The most critical components are procured from
(a) Certified suppliers (b) Approved suppliers (c) Probationary suppliers (d) Both (a) and (b) above (e) (^) Both (b) and (c) above.
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To develop an ERP solution, certain elements have to be considered. From the options given below, which of the following statements is/are true about the elements that will support development of an effective ERP solution?
I. Configuration of an ERP solution should be static and rigid. II. The implementation of an ERP system should be a long drawn-out process. III. Components of ERP system should be well-integrated with third-party service providers.
(a) Only (III) above (b) Both (I) and (II) above (c) Both (I) and (III) above (d) Both (II) and (III) above (e) All (I), (II) and (III) above.
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4. If you are a member of Board of Directors to SR InfoTech, what steps would you suggest for developing a Knowledge Management framework? Explain. (^) (14 marks)
5. Briefly explain the various types of Knowledge Management applications. (12 marks)
Knowledge Management at Call Centers: SR InfoTech incorporated in early1997, started its operations in late 1997. In the year 2000 they wanted to diversify its operations to call center business, for which they took Knowledge Management (KM) factors into consideration because KM is a concept in which an enterprise consciously and comprehensively gathers, organizes, analyzes and shares its knowledge in terms of resources, documents and people skills. Specific KM activities help focus the organization on acquiring, storing and utilizing knowledge for such things as problem solving, dynamic learning, strategic planning and decision making. By any measure, call centers are a growing business, with many organizations looking to them as the primary means of interacting with their customers. Call centers provide many business advantages, including improved efficiency, increased hours of operation, reduced costs and greater flexibility. Perhaps the greatest challenge of running a call center, however, is ensuring that customers are provided with the right information in a timely fashion. Knowledge Management has a number of practical tools and strategies for meeting this challenge. A call center is confronted with a number of challenges: Potentially wide range of customer enquiries. Legal accountability for the information provided to customers. Customer’s expectations of instant answers to their questions. High stress work environment for its operations. High staff turnover. Large and complex body of knowledge to be learned by the new staff. Constant pressures to reduce call handling times. Continuous tracking and assessment of efficiency measures. In meeting these challenges, Knowledge Management (KM) has the potential to deliver some (or all) of these benefits: Reduced training time and cost for new staff. Improved call handling and response times. Increased staff satisfaction and morale. Greater consistency and accuracy of information provided to customers. Greater flexibility in handling changing business processes, products, and information. Fewer calls to second-level support or the help desk. Applying KM to Call Centers: There are two aspects to Knowledge Management that must be covered in a call center. An efficient process must be put in a place to ensure that the right knowledge is captured, managed, and kept up-to-date and Knowledge Management systems must be established to support this process. These Information Technology (IT) systems are the core of a KM-based call center. Meeting both these requirements will ensure that one has the resources in place to support front line staff, and the process to maximize their value. One has to identify the information that one’s frontline staff and customers require, and gather them together. Once the raw information is in place, it has to be shaped into a structural and usable knowledge repository. Only then one will be in a position to deliver a complete KM solution. Identifying Required Information: There are a number of practical ways of identifying information needs: Talk to both experienced and novice staff, to find out their requirements first- hand. Conduct an information review of the resources currently available (both on line and on paper).
Survey both call center staff and customers.
Talk to business and product representatives, to identify the areas they would like highlighted to customers.
Examine the daily activities of frontline staff to identify key information needs.
Analyze call logs and other statistics to find out areas of customer interest or confusion.
Identify the typical questions and problems addressed by the help desk or second-level support.
Evaluate whether sufficient documentation exists for frontline IT systems.
As the operators may have as little as 30 seconds to find the answers, one must ensure that the information is accurate and up-to-date. To ensure information accuracy, a permanent team should be there to create and update content. Ensuring updating of the call center knowledge base is part of the ‘sign off’ requirements for business development. The staff should be fully trained in use of KM systems and processes.
Case of Support Scape: Support Scape is a web-enabled call center with its headquarters in New Jersey and Indian operations in Jaipur. It has world class customer support service because of its commitment and knowledge base. Initially it took a long time for the call center agent to answer customer queries. Knowledge base reduced this time by totally eliminating duplication of errors. Knowledge base also helped in increasing satisfaction level of customer as well as reflecting the latest correct information. It also helped in enhancing problem resolutions which were consistent. It reduced operational costs.
Problems resolved by Knowledge Management: KM helps in bringing critical information into the hands of knowledge engineers. Knowledge base allows bringing islands of data into a single integrated public domain. Knowledge is distributed quickly and easily via multiple channels of communication and thus helps in disseminating knowledge in a clear, complete, easy to understand and easy to use form. Many call centers now respond to online e-mail queries and FAQ’s on website. To reduce number of calls online, sales and product information should be accurate and comprehensive and standard responses should be developed.
END OF CASELET E N D O F S E C T I O N B
Section C : Applied Theory (20 Marks)
13. A DAS do not have much dependence on network bandwidth. DAS does not have centralized data storage. DAS does not support remote storage connectivity.
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14. B Contact management refers to capturing, sharing, and storing of customer information through electronic means and making it accessible to the entire organization.
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15. B Loyalists are of three types, they are emotional, inert and deliberate loyalists. Emotional loyalists have an emotional attachment with the brand. Customers who are not willing to take pains to shift to new products are called as Inert Loyalists. Deliberate loyalists are those who select the best products. Whereas Non-deliberate loyalists and Non-inert loyalists do not relate to the types of loyalists.
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16. C^ PricewaterhouseCoopers (PWC) has identified four distinct phase of e-business. The first phase is marked by the implementation of a website that will enable the concerned organization to buy and sell online. The second phase, involves putting supply chain management processes online by linking suppliers with the enterprise, using extranets and intranets. In the third phase, the organization forms alliances with other online players indicating the adoption of e-business as a commercial tool. In the fourth phase, there is a convergence that will lead to innovative products and services.
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17. D Short customer life cycles and rapid pace of business growth make speed and agility key factors in the e-business environment. The four factors that will ensure e-business agility are avoid lengthy analysis, flatten the hierarchy, expect occasional sub-optimal results and test everything & test all the time.
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18. A Business-to-Business (B2B) is the most popular e-business model dealing with B2B transactions. B2B marketplaces evolved with the goal of matching buyers and sellers, enabling the exchange of goods and services. B2B websites help streamline operations between organizations and their business partners. The Business-to- Consumer (B2C) business model deals with B2C transactions. The e-businesses that adopt B2C model sell their products and services directly to individual consumers. Consumer-to-Consumer (C2C) websites enable the sale and purchase of products and services between individual customers. Individual customers frequently buy and sell products like automobiles, furniture, and real estate from each other.
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19. E The process of eliminating the number of intermediaries between the manufacturer and customer is called disintermediation.
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20. E^ Only statement (I) is true. Remaining statements are false. Alternative suppliers for non-commodity items are not easily available. They are critical for production processes and suppliers engaged in these commodities are few in number.
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21. C Operating plans are developed in the distribution planning functions module of supply chain planning. Whereas, last two options belong to the supply chain execution modules.
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22. D^ First three statements are correct characteristics of integrated make-to-stock model of supply chain management. The unique characteristic of the make-to-stock model is that companies do not wait for the customers to place orders. So Fourth statement is not a correct characteristic of integrated make-to-stock model of supply chain management.
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23. B First two are characteristics exhibited by the built-to-order model. Large stocks are not maintained as they may become outdated over time. So, companies try to be more flexible in their procurement processes.
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24. D^ Once an order is placed by a customer, the details reach the desktop of the heads of the concerned departments. The ERP system checks if the required number of machines with the required specifications is available in the finished goods inventory. Bill of material specifies all the materials required in the production and delivery of each product made by the company and the lead-time required for each material. The production department identifies the number of products to be manufactured and prepares the production schedule. The materials management department prepares purchase orders for all components to be procured. The logistics department finally decides the route and mode of transport depending on the destination so that the costs are minimized and speed of delivery maximized.
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25. D The phased approach breaks down the ERP project into certain stages. Each stage is taken one at a time for implementation and is finished completely before moving to the next stage. Remaining statements are false about phased approach. These stages belong to Big-bang approach.
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26. A (^) Organizations, generally classify their suppliers into categories certified, approved and probationary. Most critical components are procured from certified suppliers while less critical and strategic materials are procured from approved and probationary suppliers.
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27. A Configuration of an ERP solution should not be static and rigid. The implementation of an ERP system should not be a long drawn-out process. It should enable the organization to progress steadily from one phase to another, rather than waiting for a long period to have the whole project installed. Traditional ERP systems focus only on automating and integrating specified business processes. Components of ERP system should be well-integrated with third-party service providers.
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28. A Use-management tool: It schedules jobs, monitors events, data output, backup and recovery. It manages the applications when they are being accessed by users. Service management tools: These help the management monitor the performance of various ERP applications. These tools need to be powerful as they have to analyze thousands of transactions that occur simultaneously in an ERP system. System administration tool: It manages the network and systems for ERP. It manages inventory and assets, configures software, modifies applications when needed, and distributes software.
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29. A First two statements are true with regard to e-CRM tools. Remaining statements are false. Tracking of customer behavior and grouping customers exhibiting similar behavior is possible through inference-based software. Rules-based software is used for personalization in case of specific products and services only.
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30. B Customer data computing architecture; Business rules for coordinating interactions; Systems and processes that facilitate integration of legacy, analytic and operational CRM systems are the fundamental elements of E-CRM infrastructure. Whereas, attracting new customers is one of the important functions of CRM.
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Section B: Caselets
1. Call centre is confronted with a number of challenges:
Eliminating ineffective processes during inbound/outbound calls. Avoiding call backs. High training costs. Tracking absenteeism. Ensuring safety and security of employees.
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2. Call centers handle customer service integration supported by communication via telephone or web. There are a number of practical ways of identifying information needs which are as under: Talk to both experienced and novice staff, to find out their requirements first-hand. Conduct an information review of the resources currently available (both on-line and on paper.) Survey both call centre staff and customers. Talk to business and product representatives, to identify the areas they would like highlighted to customers. Examine the daily activities of frontline staff to identify key information needs. Analyze call logs and other statistics to find out areas of customer interest or confusion. Identify the typical questions and problems addressed by the help desk or second-level support. Evaluate whether sufficient documentation exists for frontline IT systems. As the operators may have as little as 30 seconds to find the answers, one must ensure that the information is accurate and up-to-date. To ensure information accuracy, a permanent team
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along with environmental changes. Changes in product, competition etc. should be incorporated in the model. Measuring the ROI of knowledge management: Knowledge is subjective, hence quantifying knowledge is difficult. Some companies use software to quantify knowledge returns.
5. The various types of Knowledge Management applications are as follows:
Customer Relationship Management Decision Support Systems: Customer Relationship Management Decision Support Systems help organizations mine customer data, observe trends, price their products or services competitively, increase market share and improve customer service. To implement a customer relationship management application, it is necessary to understand customer behavior. The company should first identify the trends in customer behavior, analyze them and their impact on the company and then take a decision. Analyzing customer information is a difficult task, since data is scattered throughout the different parts of an organization. Even after aggregating the data, it would be difficult to transform the data into knowledge. Data warehousing enables transformation by facilitating information gathering and storage. Decision support tools are needed to enable data extraction and help managers take effective decisions. This would help them differentiate themselves from other players in the industry. Supply Chain Decision Support Systems: Businesses need to manage their inventory effectively. Better inventory management enables trading partners to maximize profits. Supply Chain Decision Support Systems (SCDSS) applications provide trading partners information that results in visibility and certainty. Personalization Applications: The process of real-time relationship management is called personalization. It accomplishes better customer service by understanding customer needs and preferences and responding to them quickly. With customers interacting with companies, the demand for customized products and services has increased and this in turn has increased the demand for personalization software. This type of application also helps companies keep their customers informed about changes in product or service offerings. This enables companies to make their customers feel important and valued. Personalization applications try to meet the customer needs by: Using personalized web pages Displaying information that customers need Notifying customers automatically about relevant product and service enhancements, upgrades and promotions etc. Tailoring information according to individual customer preferences Personalization is an integral part of e-business. With new age companies trying to use the concept of personalization for effective customer service and satisfaction, it is set to become an integral part of e-business standards. Remote Performance Monitoring: Managers can get the information about the enterprise with help of remote performance monitoring system, which in-turn will help them improve performance on a routine basis. It helps in constantly monitoring actual performance against strategic targets at all organizational levels. An effective monitoring system facilitates the translation of strategy into action. Business Simulation - Interactive ‘What-If’ Scenario analysis: ‘What-If’ analysis tool comprises of advance simulation and scenario modeling based on inputs from several internal and external sources. It aids managers in decision-making. To arrive at the right product mix of inventories managers can use ‘What-If’ analysis. Innovation: Business in the electronic age requires instant data access. E-mails and desktop applications facilitate the integration of contribution and subscription to the group memory.
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Section C: Applied Theory
6. MOBILE APPLICATIONS INFRASTRUCTURE
Mobile applications infrastructure (MAI) is the foundation on which mobile applications and services can be developed. It is the platform for developing and deploying robust mobile
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applications. MAI can be divided into four types. They are: Mobile Application Platforms (MAPs): Most software applications are developed for using on the desktop PC which has a larger screen. To view them on a small- screen, mobile device requires certain modifications. MAPs offer a software platform for extending a company’s business-critical applications to its mobile sales, service and workforce. The primary function of MAP is to provide mobile middleware like multiple radio protocols for mobile computing. They include both carrier-class and enterprise- class platforms. The mobile platform designs must have the following features: Compatible with all mobile devices: The mobile application platform should allow delivery of Internet-based content and applications to all types of mobile devices using different technological platforms. Cost-effective: The mobile application platform must be developed in such a way as to enable programmers to develop, maintain, and manage wireless delivery capabilities effortlessly. Optimize content and applications: The mobile application platform should optimize the amount and format of content for delivery according to the varying connection speed. It should be compatible with the existing web infrastructure security standards. Mobile Application Service Providers (MASPs): Involved in Infrastructure and application hosting MASPs play an intermediary role between a web portal and various wireless carriers and devices. They offer translation services for porting web Content to wireless networks, wireless application services, and infrastructure technology and services. Essentially, they provide connectivity and hosting services that form the base on which business automation and productivity applications function. MASPs provide organizations an outsourcing solution, ensuring faster deployment and lower initial investment. Apart from offering mobile middleware’ solutions, others services offered by MASPs include consulting, carrier contracts, security and network management. Mobile Internet Service Providers (MISPs): MISPs perform functions similar to the Internet Service Providers (ISPs). As ISPs provide customer’s access to the Internet over a telephone network, MISPs provide access to the Internet over a mobile network. MISPs include wireless carriers such as AT&T and specialized data carriers including GoAmerica and Palm.Net. Internet access on a mobile network can be provided either over a dedicated circuit-switched wireless connection or over a packet-based network, which sends data in packets. Mobile Application Enablers (MAEs): The companies in this category provide various services including billing and payment, data and transaction security, data synchronization, systems implementation & application integration and mobile strategy consulting. Hence, MAEs offer all ancillary services starting from content conversion up to project management.
7. The e-supply chain comprises of five components, namely: supply chain replenishment, collaborative planning, collaborative product development, e-procurement and e-logistics. Each of these components plays a significant role in the success of the supply chain. Supply chain replenishment Supply chain replenishment involves aligning the real time demand of a particular business with its suppliers and partners so as to improve customer service and enhance customer satisfaction. More and more businesses are allowing users to configure the products themselves over the Internet. Customers use configurators to assemble the components in different ways and place an order for a product of the desired configuration. Since the number of product configurations that can be obtained with the given components is known, companies would be able to standardize models. Therefore, companies can streamline their production processes and improve efficiency. When customers place online orders with a company, the role of sales intermediaries is eliminated, thus bringing down the time and cost of the transactions. The companies can further optimize their production operations by adopting make-to-order strategy. In the traditional assemble-to-order strategy, companies forecast the demand and stock sub- components and subassemblies to fulfill customer orders. However, in the e-supply chain, components or sub-assemblies are not stocked. When a customer order is received, the company places electronic orders with its suppliers for the components and sub-assemblies, which are immediately delivered to the site where they are assembled. The components are accepted without any inspection because the company selects the best suppliers and subjects
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individual reporting and reward systems and goals, but all the divisions need to work together for success. E-business technology increases the need for integration and coordination among the departments.
E- Procurement
E-procurement refers to the streamlining of the procurement process across business partners in the supply chain using e-business technology. Earlier, designers had to search several catalogs to identify parts with the functionality required for their new product designs. The process of selection was through trial and error; they often found that parts were not compatible with others and they had to restart the search. Today, electronic search mechanisms help designers find components quickly. Using software and electronic modeling, engineers and designers can instantly determine the suitability of a part or component for the overall design. Decision-making is speeded up because most online catalogs allow three- dimensional views of the parts. The engineers can also find out the long-term benefits and problems with, the parts. Therefore, companies can ensure that they procure the right parts in the first instance and avoid redesigning products. On-line procurement reduces processing costs. Companies can compare online catalogs of multiple suppliers efficiently and can locate the best supplier and procure quality products at reasonable prices. Online purchase orders streamline the delivery process.
E-Logistics
E-logistics is concerned with the redesigning of warehousing and product distribution using e- business technology. E-logistics enables companies to optimize the routing of products and allows customers to track the real-time shipping status of the product. Companies can even extend e-logistics to the retail unit level. They can track the inventory movement in retail stores through vendor-managed inventory systems and use the information to improve product distribution to the stores as well as to enhance
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