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Exam : Microsoft 74-674
Title : Delivering Business Value Planning Services
Case1: Woodgrove Bank
COMPANY BACKGROUND
Corporate Information and Physical Locations
Woodgrove Bank is a national financial services institution that operates in over 30 cities across the United States. The company offers investment banking services, has over 140,000 employees, and has five departments.
EXISTING ENVIRONMENT
Existing Business Processes
Woodgrove Bank has the strategic goal of eliminating 25 percent of its current list of 40,000 suppliers. The bank has begun eliminating suppliers based on their prices, redundant product or service offerings, and past supplier performance. The company's Enterprise Supplier Management (ESM) group manages the supplier elimination process. The group also directly manages the bank's largest suppliers and provides training material and workshops on supplier management to the company departments.
The Woodgrove Bank ESM group has the following business processes:
The ESM group collects supplier performance data for the 2,000 largest suppliers.
The ESM group's Supplier Managers use supplier performance data to directly manage the 40 largest suppliers.
The department managers directly manage all other suppliers.
The ESM group provides performance data on other suppliers to the department managers by request. Raw performance data is organized in spreadsheets that are sent via e-mail.
The ESM group's Business Analysts collect and store supplier performance data in multiple spreadsheets. The spreadsheets are stored on the Analysts' local computers and contain many different types of supplier performance metrics.
Each quarter, the ESM group surverys the department managers to discover the level of satisfaction they have for each of their suppliers. Business Analysts distribute the surveys via e-mail then manually consolidate the survey results.
Existing Technology Infrastructure
Woodgrove Bank has the following software deployed on all desktop computers:
Microsoft Office 2003 Professional
Windows XP Professional
Woodgrove Bank has the following software deployed on all network servers:
Windows Server 2008
Windows SharePoint Services 3.0
Microsoft SQL Server 2008
Microsoft Office Project Server
The Woodgrove Bank ESM group has the following technology infrastructure:
A single IT Specialist who has minimal database application development experience.
Additional servers available for the deployment of new technology solutions.
Labor Costs
The following table illustrates labor costs for salaried stall.
BUSINESS REQUIREMENTS
Problem Statements
Woodgrove Bank has identified the following business problems:
The process of manually entering data for suppliers in spreadsheets is time-consuming for the business analysts.
Supplier data is stored in multiple files, formats, and locations.
There is very little sharing of valuable supplier performance data outside of the ESM group.
The ESM group has a fixed number of employees and very limited budget.
Business Goals
Bank executives formed the ESM group to promote best practices in supplier management throughout the entire company.
The ESM group has the following business goals:
Build a new Supplier Performance Data Management service to distribute supplier performance informantion across all departments.
Provide documentation to show departments how to best use company-wide supplier performance information when negotiating individually with suppliers.
Minimize ESM group operating expenses by eliminating the procurement of additional software licenses.
INTERVIEWEES
ESM Director
The ESM Director is a business decision maker who manages the day-to-day operations of the ESM group.
The ESM Director best understands how the ESM group fits within the bank's corporate strategy.
Supplier Managers
The Supplier Manager is a role within the ESM group.
Supplier Managers manage the 40 largest suppliers.
Supplier Managers best understand how supplier performance data is used to manage suppliers.
Business Analysts
Business Analysts collect and store supplier performance datA. Business Analysts query the distributed spreadsheets by request from the Supplier Managers.
Business Analysts provide insight into manual data managemt processes.
Department Managers
Department Mangers are responsible for managing their respective supplier relationships.
Department Managers provide insight into how supplier performance data is used for supplier management at the dapartment level.


1. A portion of the current state business process for Woodgrove Bank is shown in the following exhibit. (Click the Exhibit button.)
This portion of the business process is repeated every quarter for all 40 suppliers that the ESM group manages directly and is completed by one business manager and one supplier manager.
You need to identify the total labor costs the bank would save by removing lines 2.8 and 2.11 from the process.
What are the annual total savings?
A. $18,000
B. $72,000
C. $96,000
D. $144,000
Answer: B

2. You need to create a current state business process diagram. You have a process diagram that describes the survey sub-process as shown in the exhibit. (Click the Exhibit button.)
You need to identify which two steps most likely complete the diagram.
Which two steps should you choose? (Each correct answer presents part of the solution. Choose two.)
A. Begins completing survey.
B. Manually consolidates survey results.
C. Creates supplier performance survey form.
D. Calculates supplier key performance indicators (KPI).
Answer: AB

3. You need to identify the most relevant business impact to Woodgrove Bank based on its current business processes. Which business impact should you identify?
A. Legal risks caused by accidental disclosure of proprietary contractual data
B. Reported instances of inaccurate or outdated information in supplier performance reports
C. Delays in responding to supplier performance information requests from various departments
D. Weakened bargaining position caused by lack of company-wide supplier performance reporting
Answer: D

4. You need to identify the most relevant value proposition statement for Woodgrove Bank executives. Which value proposition statement should you identify?
A. Implementing the proposed solution will provide greater visibility into supplier performance across the company.
B. Implementing the proposed solution will reduce group operating expenses and improve the quality of supplier performance reports.
C. Implementing the proposed solution will reduce labor time associated with data management, enabling them to improve supplier selection.
D. Implementing the proposed solution will give department managers a tool to better manage their suppliers, reducing the overall cost structure of the bank.
Answer: C

5. You propose a solution to Woodgrove Bank. The bank responds that the proposed solution is too expensive and will take too long to implement. You need to identify which negotiation points will likely convince Woodgrove Bank to purchase the proposed solution. Which two negotiation points should you identify? (Each correct answer presents part of the solution. Choose two.)
A. Rely on the customer for project management
B. Stage the solution rollout so that value is added incrementally
C. Incorporate more of the customers own IT staff into the solution rollout
D. Rewrite the statement of work (SOW) to narrow the scope of the solution
Answer: BD

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