ERP Systems

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Questions and Answers

What problem does an ERP system solve?

Employee motivation and productivity issues

Lack of customer relationship management tools

Supply chain management inefficiencies

Data fragmentation and duplication in different departments (correct)

What are the elements of an ERP system?

Modules for different functional areas, a centralized database, and a set of standardized procedures (correct)

Marketing strategies, production equipment, and inventory management techniques

Employee training programs, customer support tools, and financial reporting templates

Networking hardware, cybersecurity protocols, and data backup systems

What are the challenges of implementing an ERP system?

Lack of skilled employees, excessive customization, and overestimation of benefits

Insufficient market research, weak leadership, and regulatory compliance issues

Inadequate hardware, limited software options, and poor vendor support

Resistance to change, high implementation costs, and data migration complexities (correct)

What makes SAP different from other ERP products?

Strong focus on large enterprises, extensive industry-specific functionality, and robust analytics Signup and view all the answers

What is a challenge of implementing an ERP system?

Risk of buying more features than needed Signup and view all the answers

What is a potential issue related to ERP customization?

It can lock into the original customized version Signup and view all the answers

What type of organizations use ERP systems?

Large and small organizations Signup and view all the answers

What is a potential challenge for international firms using ERP systems?

Managing multi-language and multi-currency issues Signup and view all the answers

What is a potential challenge of a functional organizational structure?

Development of conflicts and language barriers Signup and view all the answers

What is a disadvantage of tall hierarchies in (multi)divisional structures?

Communication problems, particularly information distortion Signup and view all the answers

What is a challenge associated with matrix structures?

Lack of a control structure and conflicts Signup and view all the answers

What is essential for (multi)divisional structures to balance?

Centralization and decentralization Signup and view all the answers

What problem do ERP systems aim to solve?

Data silos existing in separate databases Signup and view all the answers

What is the role of Enterprise Application Integration (EAI) in addressing information silos?

Connecting information silos via a new layer of software Signup and view all the answers

When did ERP systems expand to incorporate all resource planning for the entire enterprise?

Early 1990s Signup and view all the answers

In which decade did MRP II systems evolve to incorporate financial accounting and management systems?

1980s Signup and view all the answers

What are the components of an ERP system?

Software, hardware, data, procedures, and people Signup and view all the answers

What is included in ERP software?

Configuration decisions and customization for customer requirements Signup and view all the answers

What is a benefit of ERP systems according to the text?

Better control and easier data exchange with partners Signup and view all the answers

Who are the people involved in ERP implementation according to the text?

Users, systems analysts, and consultants Signup and view all the answers

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

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Description

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.