Table 1. Comparison of RONA Performance According to O2C Performance

#	Description	Scenario A: 30-Day Order to Cash	Scenario B: 45-Day Order-to-Cash
1	Net Operating Profit After Tax (NOPAT)	$150	$150
2	Invested Capital	$1000	$1500
3	RONA= # 1 divided by # 2	15%	10%
4	Weighted Average Cost of Capital (WACC)	14%	14%
5	# 3 minus # 4	+1%	-4%
6	Position in Figure 1	Group 1	Group 3

Question 1Do the relationships illustrated in Table 1 suggest why employers care about maximizing the efficiency with which they manage the O2C cycle? Please explain.

Question 2Does your answer to Question 1 indicate why employers favor the candidacy of job applicants who can demonstrate that, on Day One, they have a threshold-level awareness of how an enterprise resource planning (ERP) system can be used to minimize the O2C cycle? Please explain.

Question 3Recall that an ERP is a paradigmatic example of a management information system. With that in mind, please indicate and explain which of the course objectives (see the Appendix) are implicated in our answers to questions 1 and 2.

APPENDIX: COURSE OBJECTIVES

The course is designed to meet the following objectives:

• Understanding the role of information systems in organizations
• Understanding the various information systems used
• Understanding the technical infrastructure for information systems
• Understanding the purpose and basic techniques of data management
• Understanding how to use appropriate query and search technologies to locate and retrieve pertinent business information
• Understanding the role of information technologies in solving business problems and exploiting business opportunities