20 Questions
What problem does an ERP system solve?
Data fragmentation and duplication in different departments
What are the elements of an ERP system?
Modules for different functional areas, a centralized database, and a set of standardized procedures
What are the challenges of implementing an ERP system?
Resistance to change, high implementation costs, and data migration complexities
What makes SAP different from other ERP products?
Strong focus on large enterprises, extensive industry-specific functionality, and robust analytics
What is a challenge of implementing an ERP system?
Risk of buying more features than needed
What is a potential issue related to ERP customization?
It can lock into the original customized version
What type of organizations use ERP systems?
Large and small organizations
What is a potential challenge for international firms using ERP systems?
Managing multi-language and multi-currency issues
What is a potential challenge of a functional organizational structure?
Development of conflicts and language barriers
What is a disadvantage of tall hierarchies in (multi)divisional structures?
Communication problems, particularly information distortion
What is a challenge associated with matrix structures?
Lack of a control structure and conflicts
What is essential for (multi)divisional structures to balance?
Centralization and decentralization
What problem do ERP systems aim to solve?
Data silos existing in separate databases
What is the role of Enterprise Application Integration (EAI) in addressing information silos?
Connecting information silos via a new layer of software
When did ERP systems expand to incorporate all resource planning for the entire enterprise?
Early 1990s
In which decade did MRP II systems evolve to incorporate financial accounting and management systems?
1980s
What are the components of an ERP system?
Software, hardware, data, procedures, and people
What is included in ERP software?
Configuration decisions and customization for customer requirements
What is a benefit of ERP systems according to the text?
Better control and easier data exchange with partners
Who are the people involved in ERP implementation according to the text?
Users, systems analysts, and consultants
Study Notes
Advantages and Disadvantages of Implementing ERP Systems
- Positive effects of ERP introduction: standardized purchasing process, effective management, higher bargaining power
- ERP solves problems at single process level by orchestrating the process with clear objectives and measures
- ERP solves problems at organization level by providing clear objectives and measures for unexpected opportunities
- Elements of an ERP system include SCM, manufacturing, CRM, HR, and accounting functions
- Five components of an ERP system: software, hardware, data, procedures, and people
- ERP software includes configuration decisions and customization for customer requirements
- ERP hardware includes a variety of hardware and cloud implications for lower costs and global scalability
- ERP procedures improve control and require training, leading to expensive procedures
- People involved in ERP include users, systems analysts, and consultants, with success based on process understanding and ability to work with people
- Cloud implications of ERP include lower costs, global scalability, better performance, security, reliability, and simplicity in data backup
- ERP systems are more than an IS with inherent business processes and process blueprints
- Benefits of ERP system include trends, best practices, better control, no silos problem, and easier data exchange with partners
Test your knowledge of ERP systems with this quiz that covers the advantages and disadvantages of implementing ERP systems, including positive effects, elements, components, software, hardware, procedures, people involved, and cloud implications.
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