197 Questions
Which of the following is a goal of ERP systems?
To integrate departments and functions across an organization into a single infrastructure
What is a key feature of ERP systems?
Centralized database
What is the concept of Total Cost of Ownership (TCO) in relation to ERP systems?
The ongoing cost of implementing and maintaining an ERP system
What is the main purpose of integrating departments and functions across an organization in ERP systems?
To create a unified platform for operations
What type of interface do ERP systems typically offer?
Uniform and user-friendly
What is the role of a centralized database in ERP systems?
To store data in a central, accessible location
What is the nature of ERP system implementation?
A continuous and ongoing exercise
What is the main advantage of open source ERP systems?
Higher level of customization
What is the main disadvantage of open source ERP systems?
Lack of technical support
What is the purpose of ERP systems?
To support all major functions of organizations
Which of the following is a way to integrate third party products with ERP systems?
All of the above
What is the difference between custom ERP and off-the-shelf ERP?
Custom ERP is developed based on a company's requirements, while off-the-shelf ERP is a generic system
Which tier of ERP system is used by large companies and is the most robust and complex?
Tier 1
What are the sources of variations in processes across companies that could result in industry-specific ERP solutions?
All of the above
What factors contribute to the total cost of ownership (TCO) when comparing ERP systems?
All of the above
Which type of ERP system is tailored to specific industries and is less customizable?
Open Source ERP
What are the advantages of ERP systems?
All of the above
What are the disadvantages of using tier 2 or tier 3 ERP solutions?
Not scalable for companies expanding into different industries
What are the functionalities of ERP delivered through?
Modules
What are third party products in the context of ERP systems?
Software components to make the system operational
True or false: ERP systems are designed to integrate data and support all major functions of organizations?
True
True or false: ERP systems operate on a unified platform?
True
True or false: ERP systems offer a uniform and user-friendly graphical interface?
True
True or false: ERP systems integrate various business functions?
True
True or false: Data in ERP systems is stored in a central, accessible database?
True
True or false: ERP system implementation is a one-time exercise?
False
True or false: Open source ERP systems have no upfront costs?
True
True or false: Total Cost of Ownership (TCO) is a concept related to ERP systems?
True
True or false: ERP systems aim to make information flow dynamic and immediate?
True
True or false: The main purpose of integrating departments and functions in ERP systems is to serve the needs of each department?
True
True or false: ERP systems are designed to support end-to-end business processes.
True
True or false: Third party products in ERP systems are add-on software components that can be purchased or developed.
True
True or false: ERP systems come with pre-built integration capabilities to work with some external software.
True
True or false: Custom ERP systems are developed based on a company's requirements from scratch.
True
True or false: Open Source ERP systems support customizability and improved quality due to involvement of a community of users.
True
True or false: Tier 1 ERP systems are the most robust and complex, and are used by large companies globally.
True
True or false: Industry-specific ERP solutions cater to the needs of a specific industry, providing functionalities that are a good fit.
True
True or false: The total cost of ownership (TCO) for comparing ERP systems includes costs of software, hardware, training, implementation, and customization.
True
True or false: ERP systems integrate departments and functions across an organization into a single infrastructure.
True
True or false: Off-the-shelf ERP systems are developed and sold by ERP vendors, with the source code protected and not accessible.
True
Which tier of ERP system is considered the most robust and complex, and is used by large companies globally?
Tier 1
True or false: Custom ERP systems are developed based on a company's requirements from scratch.
True
What is the main purpose of integrating departments and functions across an organization in ERP systems?
To streamline processes and improve efficiency
True or false: ERP systems operate on a unified platform?
True
What is the main advantage of open source ERP systems?
Customizability and improved quality
Which of the following is a goal of ERP systems?
Streamlining processes
True or false: Tier 2 and Tier 3 ERP solutions are less robust and complex compared to Tier 1 ERP systems?
True
What are the sources of variations in processes across companies that could result in industry-specific ERP solutions?
Industry requirements and regulations
What is the difference between best of breed, monolithic, and postmodern ERP systems?
Integration approach
True or false: ERP systems integrate various business functions?
True
Which of the following is a defining characteristic of public cloud computing?
Made available to a specific industry group
What is a limitation of cloud ERP?
Lack of transparency and control
Which layer of software applications contains instructions for input and output?
Presentation layer
What are the weaknesses of monolithic systems?
Too big, complex and expensive
True or false: Industry-specific ERP solutions prioritize functional fit and usability over value integration.
False
What is the main advantage of open source ERP systems?
Higher customization options
What are the sources of variations in processes across companies that could result in industry-specific ERP solutions?
Different industry regulations
What is the purpose of ERP systems?
To enable process simplification and standardization
True or false: Off-the-shelf ERP systems have their source code accessible.
False
What type of interface do ERP systems typically offer?
Uniform and user-friendly graphical interface
Which type of ERP system provides a single, comprehensive software solution that covers a wide range of business functions in one package?
Monolithic ERP
What is the main disadvantage of monolithic ERP systems?
Limited flexibility and potential compromises in certain functionalities
What is the main advantage of a 2-tier ERP strategy?
Offers flexibility and the ability to choose the best solutions for core and niche needs
What is the main goal of postmodern ERP systems?
To automate and link administrative and operational business capabilities
What is the concept of cloud computing in relation to ERP systems?
A form of standardized IT-based capability offered by a service provider
What are the weaknesses of monolithic ERP systems?
Limited flexibility and potential compromises in certain functionalities
What is the main advantage of postmodern ERP systems?
Offers flexibility and the ability to choose the best solutions for core and niche needs
What is the main disadvantage of a best of breed ERP strategy?
Difficult to make rapid changes and heavy customization
What is the main advantage of customization ERP systems?
Offers flexibility and the ability to choose the best solutions for core and niche needs
What is the main disadvantage of postmodern ERP systems?
Difficult to make rapid changes and heavy customization
Which type of ERP system is developed based on a company's requirements from scratch?
Custom ERP
What are third party products in the context of ERP systems?
Software components that add missing functionality
What is the main advantage of open source ERP systems?
Higher customizability
What are the weaknesses of monolithic ERP systems?
Lack of scalability
Which tier of ERP system is used by large companies globally and is the most robust and complex?
Tier 1
What factors contribute to the total cost of ownership (TCO) when comparing ERP systems?
All of the above
What is the main disadvantage of postmodern ERP systems?
Lack of flexibility
What is the main goal of postmodern ERP systems?
Integration of departments and functions
What is the main advantage of open source ERP systems?
Higher customizability
What are the disadvantages of using tier 2 or tier 3 ERP solutions?
Lack of scalability
Which of the following is a feature of ERP systems?
Integration across functions
What is the main goal of ERP systems?
To make data flow dynamic and immediate
What is the main disadvantage of open source ERP systems?
Higher cost of ownership
What is the concept of Total Cost of Ownership (TCO) for ERP systems?
The overall cost of owning and maintaining an ERP system
What is the main advantage of postmodern ERP systems?
Improved scalability and flexibility
Which type of ERP system provides a single, comprehensive software solution?
Tier 1 ERP system
What is the main disadvantage of a best of breed ERP strategy?
Lack of integration between systems
What is a key feature of cloud ERP?
Scalability and accessibility
What are third party products in the context of ERP systems?
Add-on software components purchased or developed
What is the main advantage of a 2-tier ERP strategy?
Lower implementation costs
Which type of feasibility assessment technique evaluates the extent to which an ERP system can be successfully designed and installed?
Technical Feasibility Assessment
What is the key question addressed by the Operational/Organizational Feasibility Assessment?
Does the system align with organizational objectives?
What is the key question addressed by the Economic Feasibility Assessment?
Is the anticipated value of benefits greater than costs?
What is the key question addressed by the Technical Feasibility Assessment?
Can we build/implement it?
Which feasibility assessment technique measures how well an ERP system solves a problem and is accepted by users into ongoing operations?
Operational/Organizational Feasibility Assessment
What is the key question addressed by the Operational/Organizational Feasibility Assessment?
If we build it, will they use it?
What is the key question addressed by the Economic Feasibility Assessment?
Is the anticipated value of benefits greater than costs?
What is the key question addressed by the Technical Feasibility Assessment?
Can we build/implement it?
Which feasibility assessment technique evaluates the extent to which an ERP system can be successfully designed and installed?
Technical Feasibility Assessment
Which of the following is NOT a goal of having a business case for ERP implementation?
Create a base for evaluation and follow up once the investment is completed
What is the purpose of a feasibility study in the context of ERP implementation?
To gather broad data for management to decide whether or not to proceed with a project
Which assessment is NOT included in the objectives of feasibility assessment for ERP implementation?
Operational Suitability
What does the economic assessment in a feasibility assessment for ERP implementation involve?
Checking if the benefits outweigh the costs
What is the purpose of the legal evaluation in a feasibility assessment for ERP implementation?
To examine if the project can meet various regulatory and ethical requirements
What is the main objective of the operational suitability assessment in a feasibility assessment for ERP implementation?
To assess if the project aligns with the organization's culture
What does the schedule review in a feasibility assessment for ERP implementation determine?
If the alternatives can be completed within the required timeframe or any mandatory deadlines
What is the purpose of a business case for ERP implementation?
To justify business change in terms of expected costs and benefits
What is the role of a business case in ERP implementation?
To secure commitment from business leaders
Which of the following is a disadvantage of customization in ERP implementation?
Increased support and maintenance
Why might customization be necessary in ERP implementation?
To comply with regulatory requirements
What is the main difference between single vendor systems and Best of Breed (BoB) strategy in ERP implementation?
Single vendor systems provide functionalities from multiple vendors
What are the problems associated with Best of Breed (BoB) strategy in ERP implementation?
Corporate information is distributed across multiple applications and platforms
What is a vanilla implementation in ERP?
Implementing ERP without any modifications
What is a key factor to consider in customization of ERP systems?
Integration with other systems
What is a disadvantage of Best of Breed (BoB) strategy in ERP implementation?
Corporate information is distributed across multiple applications and platforms
Why might customization be necessary in ERP implementation?
To comply with regulatory requirements
What is a key factor to consider in customization of ERP systems?
Integration with other systems
What is a disadvantage of customization in ERP implementation?
Increased support and maintenance
Which of the following is a reason for considering Best of Breed (BoB) solutions?
ERP systems cannot be everything to everyone
Which of the following is a variation of the 2-tiered ERP strategy?
Two Tier, Option 6: A core ERP in Tier 1 + different ERP products from different vendors
What does an ERP instance refer to?
Multiple installations of ERP systems for each region/division
What is a reason for having multiple instances of ERP systems?
Differences in business units
What are the potential drawbacks of using a single instance of ERP system?
Downtimes are more costly and may last longer
What is the main advantage of a 2-tier ERP strategy?
Greater flexibility
What are the differences between Tier 1 and Tier 2 ERP solutions?
Tier 1 is more robust and complex, used by large companies globally
What is the purpose of a business case for ERP implementation?
To justify the investment in an ERP system
What is the main disadvantage of a best of breed ERP strategy?
Users must learn different user interfaces and systems
What are the potential drawbacks of using open source ERP systems?
Lower quality and reliability
Which of the following is NOT included in the requirements for an ERP system?
Vendor information
What does the term 'ERP strategy' refer to?
The business strategy supported by the ERP technology strategy
What does the term 'flexibility' refer to in the context of ERP systems?
The level of responsiveness
What does the term 'centralization' refer to in the context of ERP systems?
The decision-making structure
What does the term 'common client vs multiple clients' refer to in the context of ERP systems?
The number of installations
What is the difference between 'best practices' and 'multiple processes' in ERP systems?
Vanilla implementation (BPR) vs customization/best of breed
What is the main purpose of a business case for ERP implementation?
To evaluate the economic feasibility of implementing an ERP system
What is the main advantage of open source ERP systems?
No upfront costs
What is the main disadvantage of postmodern ERP systems?
Lack of integration
What is the main goal of a 2-tier ERP strategy?
To integrate multiple systems
Which of the following is a challenge in selecting the 'right' ERP system?
Difficulty in comparing different ERP solutions
What is the purpose of a Request for Proposals (RFP) in the ERP system selection process?
To solicit proposed solutions from ERP vendors
Which of the following is included in the content of a Request for Proposals (RFP)?
Background information of the organization
What is the main advantage of using a Request for Proposals (RFP) in the ERP system selection process?
It can yield significant software savings
What is the role of the Technical Feasibility Assessment in the ERP system selection process?
To assess if the ERP system can be implemented from a technical standpoint
What is the main goal of postmodern ERP systems?
To provide modular and flexible ERP solutions
What is the main disadvantage of a best of breed ERP strategy?
Integration challenges between different applications
What is the purpose of a feasibility study in the context of ERP implementation?
To assess the viability of implementing an ERP system
What is the main advantage of open source ERP systems?
Customizability and community support
What are the differences between Tier 1 and Tier 2 ERP solutions?
Complexity and scalability
Which of the following is NOT a purpose of fit-gap analysis?
Assessing the effectiveness of process reference models
What are the two main capabilities required for an effective fit-gap analysis?
Detailed understanding of characteristics and components of the organization
What are process reference models used for in fit-gap analysis?
To provide a basis for matching ERP system with company's requirements
True or false: Process reference models can only be used by the implementation team.
False
What is the purpose of process reference models in fit-gap analysis?
To describe the business processes supported by an ERP system
True or false: The greater the misfit in fit-gap analysis, the less risky and costly the implementation.
False
When is fit-gap analysis typically performed in ERP implementations?
At various stages throughout the implementation process
What is the purpose of determining interfacing requirements in fit-gap analysis?
To identify the needs for connecting with other systems or components
What does fit-gap analysis provide a measure of?
The fit between business processes and ERP system
Which method for conducting fit-gap analysis involves installing ERP in a simulated test environment?
Simulation based
Which method for conducting fit-gap analysis involves facilitated workshops with consultants and business users?
Brainstorming discussion based
Which method for conducting fit-gap analysis involves comparing company AS-IS models with ERP reference model?
Process based
Which method for conducting fit-gap analysis involves the use of questionnaires?
Questionnaire based
What is the purpose of process modeling in an ERP implementation?
To bridge the divide between business strategy and ERP implementation
What are the benefits of diagrammatical models for process representation in an ERP implementation?
To reduce misunderstandings among stakeholders
What is an Event-driven Process Chain (EPC) model used for?
Business process modeling
What does an Event-driven Process Chain (EPC) model specify?
The way and time a reaction that causes a change should happen
What is the flow of a process represented by in an EPC model?
Events
What is the purpose of an EPC model in an ERP implementation?
To specify the flow of a process
Which of the following is NOT a challenge in selecting the 'right' ERP system?
Differences in ERP solutions
What is the role of a Request for Proposals (RFPs) in the selection process?
To solicit proposed solutions from vendors
What is the main purpose of a business case for ERP implementation?
To justify the investment in ERP system
Which of the following is NOT a goal of having a business case for ERP implementation?
To evaluate different ERP solutions
What is a key factor to consider in customization of ERP systems?
Cost
What are the sources of variations in processes across companies that could result in industry-specific ERP solutions?
Unique business requirements
What is the main advantage of postmodern ERP systems?
Flexibility to integrate best-of-breed applications
What is a limitation of cloud ERP?
Dependency on internet connectivity
What is the main advantage of open source ERP systems?
Lower licensing costs
What is the difference between generic and industry-specific ERP solutions?
Generic ERP solutions cater to a wide range of industries, while industry-specific ERP solutions are tailored to the needs of a specific industry
Which of the following best describes the purpose of Enterprise Architecture?
To align IT goals with enterprise goals
What is the main focus of Enterprise Architecture?
The relationships between subsystems
Which of the following is NOT a purpose of Enterprise Architecture?
To develop IT strategies for an enterprise
What is the role of Enterprise Architecture in an enterprise?
To maintain the learning capabilities of an enterprise
Which of the following is a key characteristic of Enterprise Architecture?
It is a tool to implement IT strategies
What does Enterprise Architecture describe?
The entities and relationships of an enterprise
What is the relationship between Enterprise Architecture and IT goals?
Enterprise Architecture aligns IT goals with enterprise goals
What is the main purpose of Enterprise Architecture?
To align enterprise goals with IT
What is the relationship between Enterprise Architecture and strategy implementation?
Enterprise Architecture is a tool to implement strategy
What does Enterprise Architecture help an enterprise do?
Learn, grow, innovate, and respond to market demands
Which of the following is NOT a benefit of Enterprise Architecture?
Maintains legal and regulatory standards
What is the role of reference architectures in building Enterprise Architecture?
Embodies 'best practice'
What is the concept of enterprise integration?
All of the above
Which level of enterprise integration involves the coordination of functions?
Business integration
What is the main disadvantage of the point-to-point EAI strategy for enterprise integration?
Scalability issues
What is the main advantage of the hub-and-spoke EAI strategy for enterprise integration?
Centralized control
What is the main advantage of using a Request for Proposals (RFP) in the ERP system selection process?
Reusability
What is the main advantage of a 2-tier ERP strategy?
Scalability
What is a key feature of cloud ERP?
Scalability
True or false: Tier 2 and Tier 3 ERP solutions are less robust and complex compared to Tier 1 ERP systems?
False
Test your knowledge about the goals and features of Enterprise IS - Part 1. Learn about the importance of information flow and integration in ERP systems.
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