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What is a key reason why an organization might need to change its information systems?
What is a key reason why an organization might need to change its information systems?
Which rationale focuses on the need to keep up with the competition?
Which rationale focuses on the need to keep up with the competition?
Who should ideally take ownership of the ERP implementation project?
Who should ideally take ownership of the ERP implementation project?
What should the project scope include in the ERP life cycle planning?
What should the project scope include in the ERP life cycle planning?
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What is not considered a rationale for adopting an ERP system?
What is not considered a rationale for adopting an ERP system?
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What is the primary role of executive leadership in the ERP life cycle?
What is the primary role of executive leadership in the ERP life cycle?
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Which of the following best describes technology rationale for ERP implementation?
Which of the following best describes technology rationale for ERP implementation?
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What problem does the 'never ending project' syndrome refer to in ERP implementations?
What problem does the 'never ending project' syndrome refer to in ERP implementations?
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What is the primary purpose of a Request for Information (RFI)?
What is the primary purpose of a Request for Information (RFI)?
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What is the role of a Site Survey in the vendor selection process?
What is the role of a Site Survey in the vendor selection process?
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What goal does the Requirements Analysis serve in the ERP selection process?
What goal does the Requirements Analysis serve in the ERP selection process?
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Which aspect is essential during the Demo Days for a vendor?
Which aspect is essential during the Demo Days for a vendor?
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What does Fit-Gap Analysis primarily focus on?
What does Fit-Gap Analysis primarily focus on?
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What is included in the Proposal after vendor evaluation?
What is included in the Proposal after vendor evaluation?
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During the Decision and Negotiations phase, what is a crucial step for the project team?
During the Decision and Negotiations phase, what is a crucial step for the project team?
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What is the main objective of the Implementation Methodology Discussion?
What is the main objective of the Implementation Methodology Discussion?
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What is the primary responsibility of scope management in a project?
What is the primary responsibility of scope management in a project?
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Which aspect is NOT typically included in the Total Cost of Ownership (TCO) for an ERP system?
Which aspect is NOT typically included in the Total Cost of Ownership (TCO) for an ERP system?
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What does a site license for ERP software cover?
What does a site license for ERP software cover?
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Which of the following does NOT apply to ongoing maintenance costs of ERP software?
Which of the following does NOT apply to ongoing maintenance costs of ERP software?
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Which is NOT a component generally required for hardware implementation in ERP?
Which is NOT a component generally required for hardware implementation in ERP?
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What does the fit-gap analysis aim to accomplish during the ERP package selection process?
What does the fit-gap analysis aim to accomplish during the ERP package selection process?
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Which statement about hidden costs in ERP implementation is true?
Which statement about hidden costs in ERP implementation is true?
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In the context of project teams for ERP implementation, which of the following roles is typically NOT included?
In the context of project teams for ERP implementation, which of the following roles is typically NOT included?
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How does ERP integrate financial information?
How does ERP integrate financial information?
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Which factor is least considered when evaluating the 'best' ERP application for a company?
Which factor is least considered when evaluating the 'best' ERP application for a company?
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What is a significant reason for adopting a technology rationale in ERP implementation?
What is a significant reason for adopting a technology rationale in ERP implementation?
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Which type of rationale supports the organization’s strategic direction regarding ERP?
Which type of rationale supports the organization’s strategic direction regarding ERP?
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In the context of scope determination, which element is crucial for addressing the 'never ending project' syndrome?
In the context of scope determination, which element is crucial for addressing the 'never ending project' syndrome?
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Which individual roles should NOT typically be considered as the top sponsor for an ERP implementation project?
Which individual roles should NOT typically be considered as the top sponsor for an ERP implementation project?
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What is an important component of the rationale for changing existing information systems?
What is an important component of the rationale for changing existing information systems?
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Which main responsibility falls on executive leadership during the ERP life cycle?
Which main responsibility falls on executive leadership during the ERP life cycle?
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How does the business process rationale relate to ERP implementation?
How does the business process rationale relate to ERP implementation?
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What aspect is generally NOT part of the project scope in ERP planning?
What aspect is generally NOT part of the project scope in ERP planning?
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Which challenge is highlighted as a reason to adopt a new ERP system?
Which challenge is highlighted as a reason to adopt a new ERP system?
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What is primarily influenced by transaction volume in the context of ERP systems?
What is primarily influenced by transaction volume in the context of ERP systems?
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What is a characteristic of a heavy user in the context of ERP licensing?
What is a characteristic of a heavy user in the context of ERP licensing?
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Which of the following is NOT a key step in the ERP package selection process?
Which of the following is NOT a key step in the ERP package selection process?
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Which aspect of ongoing maintenance does NOT accurately reflect the typical annual costs associated with ERP systems?
Which aspect of ongoing maintenance does NOT accurately reflect the typical annual costs associated with ERP systems?
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What crucial factor should be considered when determining the optimal ERP application for a company?
What crucial factor should be considered when determining the optimal ERP application for a company?
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Which component is NOT included in the hardware requirements for ERP implementation?
Which component is NOT included in the hardware requirements for ERP implementation?
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What does the acronym 'TCO' stand for in the ERP context?
What does the acronym 'TCO' stand for in the ERP context?
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Which type of user licensing allows simultaneous access for multiple users at a specific time?
Which type of user licensing allows simultaneous access for multiple users at a specific time?
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In scope management, what is the term used for uncontrolled changes to the project scope?
In scope management, what is the term used for uncontrolled changes to the project scope?
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Which of the following responsibilities does NOT typically fall under the role of a project manager?
Which of the following responsibilities does NOT typically fall under the role of a project manager?
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What is the primary purpose of conducting a Fit-Gap Analysis during the ERP selection process?
What is the primary purpose of conducting a Fit-Gap Analysis during the ERP selection process?
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What component should be included in the Proposal after evaluating ERP vendors?
What component should be included in the Proposal after evaluating ERP vendors?
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During the Decision and Negotiations phase, which step is crucial for the project team?
During the Decision and Negotiations phase, which step is crucial for the project team?
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What is a key aspect that the Implementation Methodology Discussion should cover?
What is a key aspect that the Implementation Methodology Discussion should cover?
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What critical information should be discussed with 'like' customers during Reference Visits?
What critical information should be discussed with 'like' customers during Reference Visits?
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Which stage involves vendors demonstrating their solutions using the prospective customer's own data?
Which stage involves vendors demonstrating their solutions using the prospective customer's own data?
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Which document is developed by the buyer to specify their requirements for vendor offerings?
Which document is developed by the buyer to specify their requirements for vendor offerings?
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What is typically assessed during a Site Survey with prospective ERP vendors?
What is typically assessed during a Site Survey with prospective ERP vendors?
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What is an expected outcome of conducting a Request for Information (RFI)?
What is an expected outcome of conducting a Request for Information (RFI)?
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What does the Narrowing Down the Choices stage focus on in the vendor selection process?
What does the Narrowing Down the Choices stage focus on in the vendor selection process?
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Study Notes
ERP Life Cycle: Planning
- A rationale is needed for implementing ERP, grounded in a business case
- Types of rationales include:
- Technology rationale - outdated systems, needing new technology, better data visibility, costly to maintain old systems
- Competitive rationale - keeping up with competitors
- Strategic rationale - to support organizational direction, drive growth, support mergers, diversification, globalization
- Business process rationale - benefits to key processes, measurable performance improvements
- Executive leadership is crucial - CEO, CFO, or another high-level sponsor should take ownership and be actively involved; CIO is NOT the top sponsor in this case
- Project Scope definition - procedures to avoid "never-ending project" syndrome
- Business processes, ERP functionality, divisions, technical infrastructure to be replaced
- Scope management - define what is included/excluded. Avoid scope creep
- Project Team - involves key process owners, end users, managers, IT people, executives across business units, organizational levels
- Project Manager - should understand technology and business processes, knowledge of ERP's impact, and create a smooth transition. They should have a clear vision
- ERP Costs:
- Total Cost of Ownership (TCO) - total costs throughout the system's life cycle, influenced by transaction volume, number of users, and functionality
- Application License - govern software use,
- Named users - total users accessing the system
- Site license - blanket for a location
- Concurrent users - maximum system users
- Heavy users - more function use, potential higher license fees compared to casual users
- Database License - based on the number of simultaneous users or type of database servers.
- Hardware - varies depending on the scope and implementation platform. Database servers, application servers, storage systems, networking, and user workstations.
- Implementation Services - often a multiplier of software license costs (ratio of services to software costs indicates a system's ease of implementation). Internal HR Costs vary
ERP Life Cycle: Package Selection
- Package selection - assumes high-level organizational group has approved funding based on the business case. Company picks the "best" application (functionality, affordability, user-friendliness, customizability, and vendor support)
- Key Steps in Selecting an ERP System:
- Market Survey - identify potential vendors through websites, industry magazines, trade exhibits, and competitors
- Request for Information (RFI) - vendors provide information about their capabilities
- Narrowing Down Choices - based on criteria to pick candidates
- Site Survey - vendor's sales team visits to understand customer needs and the specifics of their business
- Requirements Analysis - detailed analysis to identify all necessary functionalities
- Request for Proposal (RFP) - a formal document with detailed requirements
- Demo Days - vendors showcase practical implementation using the customer's data
- Reference Visits - visit similar customers site to observe ERP system and discuss issues like satisfaction, implementation time, and vendor support.
- Fit-Gap Analysis - compare company requirements with available ERP functionalities; gaps are opportunities for process improvement.
- Implementation Methodology Discussion - discussions on project scope, roles, and deliverables.
- Proposal - recommended modules, support/assurance fees, high level project plan, hardware, network, and software requirements
- Decision and Negotiations-all critical info is used to rate the vendor and sign a contract
ERP Benefits
- Integrates financial information, creating consistent truth across the system
- Integrates customer order information (start-to-finish process from sales to receipt)
- Standardizes and speeds up manufacturing processes
- Reduces inventory and improves order fulfillment visibility
- Standardizes HR information, creating employee self-service solutions.
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Description
This quiz covers the essential elements of planning in the ERP life cycle, focusing on the rationale for implementing ERP systems, including technology, competitive, strategic, and business process rationales. Understanding the role of executive leadership and project scope management is crucial for successful ERP implementation. Test your knowledge on defining project teams and avoiding common pitfalls.
