Test Bank For Enterprise Systems For Management, 2nd Edition

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1Enterprise Systems for Management, 2e(Motiwalla/Thompson)Chapter 1Introduction to Enterprise Systems for Management1) The Hershey's example shows the complexity of implementing ERP systems in organizations.Answer: TRUEDiff:1PageRef: 32) In the early days of ERP implementation, management clearly understood the magnitude oforganizational issues to consider before and during ERP implementations.Answer: FALSEDiff:1PageRef: 33) ERP systems are not much different from conventional software packages like MicrosoftOffice.Answer: FALSEDiff:1PageRef: 34) ERP implementations usually go beyond technical issues, to include people, process andchange issues.Answer: TRUEDiff:2PageRef: 35) eBusiness is an adaptive technology as opposed to ERP which is a disruptive technology.Answer: FALSEDiff:2PageRef: 246) During the input phase of an Information System, the people components are most prominent.Answer: TRUEDiff:2PageRef: 57) No single information system can support all the needs of a business.Answer: TRUEDiff:1PageRef: 48) At the mid-management level, functions are highly structured and the resources arepredefined.Answer: FALSEDiff:2PageRef: 59) Quantitative requirements are usually much greater at the operational level.Answer: TRUEDiff:2PageRef: 610) Strategic level functions are usually more unstructured.Answer: TRUEDiff:2PageRef: 5

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211) Because of the increasing pressure of global competition, businesses are becoming lessintegrated and more compartmentalized.Answer: FALSEDiff:2PageRef: 512) The goal of an ERP system is to integrate data and support all the major functions across theorganization.Answer: TRUEDiff:1PageRef: 613) One problem with ERP systems is that they do not update data in real-time.Answer: FALSEDiff:1PageRef: 814) Historically, each department had its own separate computer system that was designed forthe specific tasks in that department.Answer: TRUEDiff:2PageRef: 715) In the 1960s and 1970s organizations first began to focus on developing integrated,enterprise systems.Answer: FALSEDiff:1PageRef: 916) ERP systems grew primarily out of MRP and MRP II.Answer: TRUEDiff:2PageRef: 917) ERP II expanded to include B2B functions and EDI.Answer: TRUEDiff:3PageRef: 918) ERP systems today have evolved to the more flexible mainframe and centralized legacyapplication architecture.Answer: FALSEDiff:2PageRef: 919) ERP systems usually don't require businesses to change their business processes.Answer: FALSEDiff:2PageRef: 1020) It is generally easier for an organization to modify the ERP software to fit their existingbusiness processes.Answer: FALSEDiff:3PageRef: 10

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321) A database is considered to be one of the key components of an ERP system.Answer: TRUEDiff:2PageRef: 1022) When ERP software is purchased from a vendor, this is known as a "vendor-driven"architecture.Answer: FALSEDiff:2PageRef: 1123) The architecture of the ERP system is determined well before the ERP software is chosen.Answer: FALSEDiff:3PageRef: 1124) One benefit of implementing an ERP system is that the implementations are usually quitesimilar from one organization to another.Answer: FALSEDiff:3PageRef: 1525) The physical architecture of an ERP system focuses on the efficiency of the system.Answer: TRUEDiff:2PageRef: 1226) The most important lesson learned by Hershey in their ERP implementation was that theyshould proceed slowly so that nothing is left out during the implementation.Answer: TRUEDiff:2PageRef: 327) ERP systems are a specific kind of enterprise system to integrate data across all majorfunctions of an organization.Answer: TRUEDiff:1PageRef: 628) A goal of ERP systems is to make information flow be both dynamic and immediate.Answer: TRUEDiff:1PageRef: 629) ERP and e-Business are diverse technologies.Answer: FALSEDiff:2PageRef: 1630) In the tiered architecture of an ERP system, the ERP software is actually loaded onto the datatier.Answer: FALSEDiff:3PageRef: 13

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431) The lowest tier of the ERP tiered architectures is where the database server is located.Answer: TRUEDiff:3PageRef: 1332) e-Business is an example of a non-disruptive technology.Answer: FALSEDiff:2PageRef: 1633) In a tiered ERP architecture, users interact with the system via the presentation logic tier.Answer: TRUEDiff:3PageRef: 1334) ERP represents a(n) adaptive technology.Answer: TRUEDiff:2PageRef: 1635) On corporate intranets, ERP functionality is delivered using no internet-based protocols.Answer: FALSEDiff:3PageRef: 1736) One roadblock for ERP systems is that they require a substantial investment in order to besuccessful.Answer: TRUEDiff:2PageRef: 1737) As opposed to e-Business systems, ERP systems are focused more on internal processintegration.Answer: TRUEDiff:2PageRef: 1738) An ERP system implementation is less complex than a typical Information Systemimplementation.Answer: FALSEDiff:2PageRef: 1839) At the start of an ERP implementation, it is important that clear and well-defined data designbe communicated to the organization.Answer: FALSEDiff:3PageRef: 19

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540) A(n) ________ is defined as a series of tasks or activities grouped to achieve a businessfunction or goal.A) software designB) system prototypeC) business processD) information systemAnswer: CDiff:2PageRef: 4041) Checking inventory is an example of a(n):A) software function.B) system function.C) database.D) business process.Answer: DDiff:1PageRef: 1042) When an ERP system is upgraded, this means that the IT staff will have to upgrade not onlythe existing application, but also any ________ they have made.A) modificationsB) protectionsC) designsD) decisionsE) clarificationsAnswer: ADiff:3PageRef: 1043) An Information System includes each of the followingexcept:A) software.B) culture.C) hardware.D) data.Answer: BDiff:2PageRef: 444) An ERP architecture consists of both a physical architecture and a(n):A) labor component.B) system architecture.C) database.D) logical architecture.E) system documentation.Answer: DDiff:2PageRef: 11

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645) All of the following are components of an ERP systemexcept:A) tools.B) hardware.C) processes.D) people.E) databases.Answer: ADiff:1PageRef: 1046) The general goal of an Information System is to convert data into useful:A) procedures.B) tools.C) information.D) data flows.Answer: CDiff:1PageRef: 447) A(n) ________ is a dynamic sub-organization that can be created and eliminated dependingon need.A) strategic groupB) Business UnitC) departmentD) matrix groupE) IT groupAnswer: BDiff:2PageRef: 548) Which of the following isnota component of an Information System?A) hardwareB) peopleC) dataD) softwareE) outputAnswer: EDiff:2PageRef: 449) ERP systems are ________ which means they can be accessed using a web client.A) functionalB) cross-functionalC) real-timeD) integratedE) web-enabledAnswer: EDiff:2PageRef: 7

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750) The concept of ________ means that clean data can be entered once and then reused acrossall applications.A) cross-data reportsB) data integrationC) real-time accessD) data flowsE) system integrationAnswer: BDiff:2PageRef: 851) During the 1960s and 1970s most organizations designed their systems in a ________manner.A) interrelatedB) cross-functionalC) componentizedD) siloE) cohesiveAnswer: DDiff:2PageRef: 852) ERP systems integrate a business' processes across their:A) system boundaries.B) functional dependencies.C) value chain.D) sales activities.Answer: CDiff:2PageRef: 853) ERP vendors embed ________ in their software.A) componentsB) dataC) protocols.D) best practicesE) upgradesAnswer: DDiff:3PageRef: 854) A "vanilla" ERP implementation is when the organization decides to implement the ERPsoftware:A) "as is."B) quickly.C) with B2B capabilities.D) without complex interfaces.E) with special additions.Answer: ADiff:2PageRef: 10

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855) ERP system implementation failures are often caused by lack of attention to the businessprocesses and the ________ components.A) interrelatedB) hardwareC) softwareD) databaseE) peopleAnswer: EDiff:2PageRef: 1056) The ________ approach to implementing an ERP system helps organizations lower the long-term maintenance of the ERP application.A) RADB) layeredC) waterfallD) data flowAnswer: BDiff:3PageRef: 1057) ERP systems help to increase the efficiency of the organization and worker productivity byproviding a ________ for all corporate data, information, and knowledge.A) networkB) platformC) architectureD) central repositoryE) decentralized archiveAnswer: DDiff:2PageRef: 1458) In the tiered architecture, the ERP application is stored on the ________ tier.A) presentation logicB) business logicC) middlewareD) dataE) hardwareAnswer: BDiff:3PageRef: 1459) A strong commitment from ________ is critical for the success of an ERP system.A) peopleB) vendorsC) managementD) usersE) system administratorsAnswer: CDiff:3PageRef: 15

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960) ________ an ERP system during the implementation increases the cost of the system andincreases the implementation risks.A) IntegratingB) DiagrammingC) DelayingD) OutsourcingE) ModifyingAnswer: EDiff:3PageRef: 1861) A ________ implementation involves considerable modifications to the ERP software.A) chocolateB) vanillaC) cross-functionalD) vendor-drivenE) web-enabledAnswer: ADiff:3PageRef: 1862) Because they lack the skill sets and time necessary to develop it ________, mostorganizations choose to purchase ERP software from a vendor.A) in-houseB) efficientlyC) modularizedD) organicallyE) cross-functionallyAnswer: ADiff:2PageRef: 1963) An organization must first do a ________ to help narrow down the ERP vendors to a selectfew.A) system analysisB) needs assessmentC) vendor reviewD) performance reviewAnswer: BDiff:3PageRef: 1964) ________ is the time from "go live" to about 90 days after, or until the number of issues andproblems have been reduced.A) ImplementationB) RationalizationC) AnalysisD) StabilizationE) Testing and DebuggingAnswer: DDiff:3PageRef: 20

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1065) One of ERP Systems's goals is to make information flow between ________ and the system.A) accountingB) financeC) productionD) marketingE) all of the aboveAnswer: EDiff:2PageRef: 666) In the ERP systems, they must meet the organizational needs in todays's competitiveenvironment to be:A) cross functional, dynamic, and siloed.B) mono functional, dynamic and global.C) cross functional, dynamic and global.D) cross functional, static and global.E) none of the aboveAnswer: CDiff:2PageRef: 667) Business organizations have become ________.A) more complexB) less complexC) easier to manageD) more layeredE) all of the aboveAnswer: ADiff:1PageRef: 468) The CEO of a firm probably requires less quantity of information but a very high ________of information.A) amountB) qualityC) costD) transferE) none of the aboveAnswer: BDiff:2PageRef: 669) As organizations grew they tended to create a hodge-podge of siloed information systemsthat lacked ________.A) analysisB) modularityC) diversityD) integrationE) none of the aboveAnswer: DDiff:1PageRef: 6

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1170) A(n) ________ system is an integrated information system that supports all the functions ofthe enterprise in real-time.A) SiloB) ERPC) DecentralizedD) ManagementE) none of the aboveAnswer: BDiff:1PageRef: 771) An ERP system works on a(n) ________ database that allows various departments to shareinformation and communicate with each other.A) siloB) ERPC) singleD) archiveE) none of the aboveAnswer: CDiff:2PageRef: 972) As opposed to ERP systems, e-Business systems are focused more on integrating ________processes.A) externalB) hardwareC) internalD) softwareE) none of the aboveAnswer: ADiff:2PageRef: 1773) One benefit of ERP systems is that by having standard user interfaces, less ________ ofemployees is required.A) numbersB) managementC) qualityD) trainingE) none of the aboveAnswer: DDiff:2PageRef: 17

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1274) It is not uncommon for employees to ________ the changes in their roles and departmentboundaries due to the new ERP system.A) embraceB) resistC) requestD) sabotageE) none of the aboveAnswer: BDiff:2PageRef: 1875) Making modifications to the ERP software will ________ the investment in the system andintroduce higher implementation risk.A) increaseB) decreaseC) simplifyD) reinforceE) none of the aboveAnswer: ADiff:2PageRef: 2076) List and briefly describe three different benefits of an ERP system.Answer: There are many potential benefits related to integrating all of an organization's systemsin one standard package. First, the overall cost of running the systems should decrease if the ERPsystem is installed properly. Secondly, there should be new efficiencies discovered in the abilityto share data across departmental boundaries in real-time. This data should also be more timelyand accurate than before and therefore should help users make better decisions. Standardizing allthe processes in the organization should also make it easier to make changes in the future and totrain users.Diff:2PageRef: 2977) List and briefly discuss three problems with ERP systems.Answer: Well, one major problem is with the high cost of implementing an ERP system. Notonly are they expensive to install, but they are expensive to maintain with all of the frequentupgrades. They are also extremely complex since they attempt to integrate all the processesacross the entire organization which could entail globalization complexities too. It is often thecase that end users do not like these systems since they entail many changes to their jobdescriptions, organizational structure, and may even have more awkward interfaces than theirprevious, custom-made internal applications.Diff:2PageRef: 29

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1378) What are the risks and benefits of making modifications to a purchased ERP package?Answer: One possible benefit of making modifications to a purchased ERP package is that userswill find it more usable and thus it might be a bigger success. The modifications might also givethe organization a competitive advantage over the competition. However, making modificationscan be quite costly and each of the modifications will have to be maintained every time thesoftware vendor releases upgrades to the software that must be installed. These releases cancome as often as every six months and can disrupt the functioning of the system. This is whymost companies will choose to make as few modifications to the software as possible.Diff:3PageRef: 1979) What are the main steps in a typical ERP implementation methodology?Answer: Every ERP software vendor and consulting firm boasts of having their ownimplementation methodologies. But they all basically follow the same pattern. This can beviewed in terms of five separate phases: Requirements Gathering/Gap Analysis, System Design,Building and Testing, Implementation, and Stabilization and Support. Throughout all thesephases change management processes should also be in place.Diff:2PageRef: 2080) What criteria should be used when selecting an ERP software vendor?Answer: An organization must carefully consider their current and future needs across the entireenterprise. In the beginning, this may just involve estimating the number of users who will beaccessing the enterprise applications. Depending on the particular industry, some ERP vendorsmay have developed better industry "best practices" that will fit with the organization's businessneeds better. This assessment should look at the functionality that is needed and make sure thevendors can meet these needs. Once the list is down to 3 or 4 vendors, they should be invited tosubmit detailed proposals. Part of this process will involve the vendors installing their softwareon a company server or "sandbox" where some users can be invited to test out the software.Other criteria for considering the software should involve the quality of support and theprocedure for installing upgrades and obtaining licenses. There should also be a sizeable pool ofIT labor available at a reasonable price in order to maintain it after implementation.Diff:3PageRef: 2181) What is the go live phase of an ERP project? How does an organization prepare for thiscritical phase?Answer: The go live phase is when the new ERP system is first "turned on" or released to theorganization. This is one of the most critical phases in the ERP project because many ERPimplementations have turned into disasters during or after the go live stage. Immediately afterthe go live the systems must stabilize in terms of the number of issues and problems resultingfrom the new system. To get ready for this, the organization adequately trains end users and hasHelp Desks in place. They must set up an Audit Support group to make sure that the data in thenew system is not compromised and have procedures in place to correct problems with data asusers discover them.Diff:3PageRef: 22

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1482) What is the Capability Maturity Model and how does it help gauge a company's readiness foran ERP implementation?Answer: The CM model is one way that organizations can measure how well prepared they arefor implementing complex systems such as ERP. Their IT capabilities are rated on a scale of 1-5where one is the lowest and 5 is the highest. Organizations with a low rating will need to hireoutside consultants in order to gain the expertise needed for an ERP project, and they may notwant to make too many modifications to the purchased ERP package.Diff:3PageRef: 2183) What is meant by "change management" and why is it important for ERP projects?Answer: Because an ERP system may involve considerable changes to an organization'sprocesses and structure, it is crucial to actively manage how the changes are implemented in theorganization. Research has shown that many projects fail because of poor change management.Much of change management involves communicating clearly to employees and training themon what their new job descriptions will involve.Diff:2PageRef: 2384) List and briefly describe three trends for ERP systems in the near future.Answer: One important trend is how ERP systems are being extended by the Internet to bettersupport e-Business. ERP systems are also beginning to integrate more and more open-sourcesoftware. Flexible new platforms such as SOA are being designed for ERP systems to make iteasier to develop integrated web services. These trends are also making it easier for ERP vendorsto extend their software into the smaller and medium-sized organizations.Diff:2PageRef: 23-2485) What are the most important issues that organizations should consider when implementingan ERP system?Answer: Because ERP systems are so complex, it is important to manage risk and to be able tolearn from both successes and failures. This means that objectives of the project need to beclearly communicated throughout the organization and a clear focus maintained. Managers mustcontinuously evaluate the project status and be flexible enough to take advantage of thecapabilities of the ERP system. To be a success, they must also be skillful at managingorganizational change. To maintain a competitive advantage, managers must also learn how tointegrate their ERP system with the Internet and across the global organization.Diff:2PageRef: 28-29

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1Enterprise Systems for Management, 2e(Motiwalla/Thompson)Chapter 2Systems Integration1) When data has to be manually re-entered from one system into another system, this indicatesthat the systems have seamless integration.Answer: FALSEDiff:2PageRef: 372) When systems are integrated they can share information in real-time.Answer: TRUEDiff:1PageRef: 373) ERP systems allow organizations to integrate heterogeneous systems into one with anintegrated database system.Answer: TRUEDiff:2PageRef: 384) Until recently, information systems and organizations have evolved into functional silos.Answer: TRUEDiff:2PageRef: 385) Mid-level managers typically focus on planning the long-term strategy of the organization.Answer: FALSEDiff:1PageRef: 396) The current classification of organizations into departments like Accounting and HumanResources shows how the organizational structure evolved by breaking complex tasks intosmaller, manageable tasks.Answer: TRUEDiff:2PageRef: 397) Organizations have horizontal and vertical divisions.Answer: TRUEDiff:1PageRef: 398) When organizations get large and complex they tend to break functions into larger units andassign one or more staff the responsibility for these activities.Answer: FALSEDiff:2PageRef: 409) When organizations get large and complex sharing of information happens only at higherlevels of management.Answer: TRUEDiff:2PageRef: 40

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